Trade Act of 2002
PL 107-210 (H.R.3009), enacted 08/06/2002

PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 933 
Public Law 107-210 
107th Congress 
An Act 
To extend the Andean Trade Preference Act, to grant additional trade benefits 
Aug. 6, 2002 
under that Act, and for other purposes. 
[H.R. 3009] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Trade Act of 
2002. 
SECTION 1. SHORT TITLE. 
19 u s e 3801 
This Act may be cited as the "Trade Act of 2002". 
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SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS. 
(a) DIVISIONS.—This Act is organized into 5 divisions as follows: 
(1) DIVISION A.—Trade Adjustment Assistance. 
(2) DIVISION B.—Bipartisan Trade Promotion Authority. 
(3) DIVISION C.—Andean Trade Preference Act. 
(4) DIVISION D.—Extension of Certain Preferential Trade 
Treatment and Other Provisions. 
(5) DIVISION E.—Miscellaneous Provisions. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title. 
Sec. 2. Organization of Act into divisions; table of contents. 
DIVISION A—TRADE ADJUSTMENT ASSISTANCE 
Sec. 101. Short title. 
TITLE I—TRADE ADJUSTMENT ASSISTANCE PROGRAM 
Subtitle A—Trade Adjustment Assistance For Workers 
Sec. 111. Reauthorization of trade adjustment assistance program. 
Sec. 112. Filing of petitions and provision of rapid response assistance; expedited 
review of petitions by secretary of labor. 
Sec. 113. Group eligibility requirements. 
Sec. 114. Qualifying requirements for trade readjustment allowances. 
Sec. 115. Waivers of training requirements. 
Sec. 116. Amendments to limitations on trade readjustment allowances. 
Sec. 117. Annual total amount of payments for training. 
Sec. 118. Provision of employer-based training. 
Sec. 119. Coordination with title I of the Workforce Investment Act of 1998. 
Sec. 120. Expenditure period. 
Sec. 121. Job search allowances. 
Sec. 122. Relocation allowances. 
Sec. 123. Repeal of NAFTA transitional adjustment assistance program. 
Sec. 124. Demonstration project for alternative trade adjustment assistance for 
older workers. 
Sec. 125. Declaration of policy; sense of Congress. 
Subtitle B—Trade Adjustment Assistance For Firms 
Sec. 131. Reauthorization of program. 
Subtitle C—Trade Adjustment Assistance For Farmers 
Sec. 141. Trade adjustment assistance for farmers. 
116 STAT. 934 
PUBLIC LAW 107-210—AUG. 6, 2002 
Sec. 142. Conforming amendments. 
Sec. 143. Study on TAA. for fishermen. 
Subtitle D—Effective Date 
Sec. 151. Effective date. 
TITLE II—CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE 
INDIVIDUALS 
Sec. 201. Credit for health insurance costs of individuals receiving a trade readjust-
ment allowance or a benefit from the Pension Benefit Guaranty Cor-
poration. 
Sec. 202. Advance payment of credit for health insurance costs of eligible individ-
uals. 
Sec. 203. Health insurance assistance for eligible individuals. 
TITLE III—CUSTOMS REAUTHORIZATION 
Sec. 301. Short title. 
Subtitle A—United States Customs Service 
CHAPTER 1—DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL 
OPERATIONS 
Sec. 311. Authorization of appropriations for noncommercial operations, commercial 
operations, and air and marine interdiction. 
Sec. 312. Antiterrorist and illicit narcotics detection equipment for the United 
States-Mexico border, United States-Canada border, and Florida and the 
Gulf Coast seaports. 
Sec. 313. Compliance with performance plan requirements. 
CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE 
Sec. 321. Authorization of appropriations for program to prevent child pornography/ 
child sexual exploitation. 
CHAPTER 3—MISCELLANEOUS PROVISIONS 
Sec. 331. Additional Customs Service officers for United States-Canada Border. 
Sec. 332. Study and report relating to personnel practices of the Customs Service. 
Sec. 333. Study and report relating to accounting and auditing procedures of the 
Customs Service. 
Sec. 334. Establishment and implementation of cost accounting system; reports. 
Sec. 335. Study and report relating to timeliness of prospective rulings. 
Sec. 336. Study and report relating to customs user fees. 
Sec. 337. Fees for customs inspections at express courier facilities. 
Sec. 338. National Customs Automation Program. 
Sec. 339. Authorization of appropriations for customs staffing. 
CHAPTER 4—^ANTITERRORISM PROVISIONS 
Sec. 341. Immunity for United States officials that act in good faith. 
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing of the cus-
toms service. 
Sec. 343. Mandatory advanced electronic information for cargo and other improved 
Customs reporting procedures. 
Sec. 343A. Secure systems of transportation. 
Sec. 344. Border search authority for certain contraband in outbound mail. 
Sec. 345. Authorization of appropriations for reestablishment of customs operations 
in New York City. 
CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS 
Sec. 351. GAO audit of textile transshipment monitoring by Customs Service. 
Sec. 352. Authorization of appropriations for textile transshipment enforcement op-
erations. 
Sec. 353. Implementation of the African Growth and Opportunity Act. 
Subtitle B—Office of the United States Trade Representative 
Sec. 361. Authorization of appropriations. 
Subtitle C—United States International Trade Commission 
Sec. 371. Authorization of appropriations. 
Subtitle D—Other trade provisions 
Sec. 381. Increase in aggregate value of articles exempt from duty acquired abroad 
by United States residents. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 935 
Sec. 382. Regulatory audit procedures. 
Sec. 383. Payment of duties and fees. 
DIVISION B—BIPARTISAN TRADE PROMOTION AUTHORITY 
TITLE XXI—TRADE PROMOTION AUTHORITY 
Sec. 2101. Short title and findings. 
Sec. 2102. Trade negotiating objectives. 
Sec. 2103. Trade agreements authority. 
Sec. 2104. Consultations and assessment. 
Sec. 2105. Implementation of trade agreements. 
Sec. 2106. Treatment of certain trade agreements for which negotiations have al-
ready begun. 
Sec. 2107. Congressional Oversight Group. 
Sec. 2108. Additional implementation and enforcement requirements. 
Sec. 2109. Committee staff. 
Sec. 2110. Conforming amendments. 
Sec. 2111. Report on impact of trade promotion authority. 
Sec. 2112. Interests of small business. 
Sec. 2113. Definitions. 
DIVISION C—ANDEAN TRADE PREFERENCE ACT 
TITLE XXXI—ANDEAN TRADE PREFERENCE 
Sec. 3101. Short title. 
Sec. 3102. Findings. 
Sec. 3103. Articles eligible for preferential treatment. 
Sec. 3104. Termination. 
Sec. 3105. Report on Free Trade Agreement with Israel. 
Sec. 3106. Modification of duty treatment for tuna. 
Sec. 3107. Trade benefits under the Caribbean basin economic recovery act. 
Sec. 3108. Trade benefits under the African Growth and Opportunity Act. 
DIVISION D—EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT 
TITLE XLI—EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES 
Sec. 4101. Extension of generalized system of preferences. 
Sec. 4102. Amendments to generalized system of preferences. 
DIVISION E—MISCELLANEOUS PROVISIONS 
TITLE L—MISCELLANEOUS TRADE BENEFITS 
Subtitle A—^Wool Provisions 
Sec. 5101. Wool provisions. 
Sec. 5102. Duty suspension on wool. 
Subtitle B—Other Provisions 
Sec. 5201. Fund for WTO dispute settlements. 
Sec. 5202. Certain steam or other vapor generating boilers used in nuclear facili-
ties. 
Sec. 5203. Sugar tariff-rate quota circumvention. 
DIVISION A—TRADE ADJUSTMENT 
ASSISTANCE 
Trade 
Adjustment 
Assistance 
Reform Act of 
2002. 
SEC.lOl. SHORT TITLE. 
19USC2101 
This division may be cited as the "Trade Adjustment Assistance 
Reform Act of 2002". 
note. 
116 STAT. 936 
PUBLIC LAW 107-210—AUG. 6, 2002 
TITLE I—TRADE ADJUSTMENT 
ASSISTANCE PROGRAM 
Subtitle A—Trade Adjustment Assistance 
For Workers 
SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE 
PROGRAM. 
(a) ASSISTANCE FOR WORKERS.—Section 245 of the Trade Act 
of 1974 (19 U.S.C. 2317) is amended by striking "October 1, 1998, 
and ending September 30, 2001," each place it appears and inserting 
"October 1, 2001, and ending September 30, 2007,". 
(b) ASSISTANCE FOR FIRMS.—Section 256(b) of the Trade Act 
of 1974 (19 U.S.C. 2346(b)) is amended by striking "October 1, 
1998, and ending September 30, 2001" and inserting "October 1, 
2001, and ending September 30, 2007,". 
(c) TERMINATION.—Section 285 of the Trade Act of 1974 is 
amended to read as follows: 
19 u s e note 
"SEC. 285. TERMINATION. 
prec. 2271. 
"(a) ASSISTANCE FOR WORKERS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
trade adjustment assistance, vouchers, allowances, and other 
payments or benefits may not be provided under chapter 2 
after September 30, 2007. 
"(2) EXCEPTION.—Notwithstanding paragraph (1), a worker 
shall continue to receive trade adjustment assistance benefits 
and other benefits under chapter 2 for any week for which 
the worker meets the eligibility requirements of that chapter, 
if on or before September 30, 2007, the worker is— 
"(A) certified as eligible for trade adjustment assistance 
benefits under chapter 2 of this title; and 
"(B) otherwise eligible to receive trade adjustment 
assistance benefits under chapter 2. 
"(b) OTHER ASSISTANCE.— 
"(1) ASSISTANCE FOR FIRMS.—Technical assistance may not 
be provided under chapter 3 after September 30, 2007. 
"(2) ASSISTANCE FOR FARMERS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), adjustment assistance, vouchers, allowances, and other 
payments or benefits may not be provided under chapter 
6 after September 30, 2007. 
"(B) EXCEPTION.—Notwithstanding subparagraph (A), 
an agricultural commodity producer (as defined in section 
291(2)) shall continue to receive adjustment assistance 
benefits and other benefits under chapter 6, for any week 
for which the agricultural commodity producer meets the 
eligibility requirements of chapter 6, if on or before Sep-
tember 30, 2007, the agricultural commodity producer is— 
"(i) certified as eligible for adjustment assistance 
benefits under chapter 6; and 
"(ii) is otherwise eligible to receive adjustment 
assistance benefits under such chapter 6.". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 937 
SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE 
ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SEC-
RETARY OF LABOR. 
(a) FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE 
ASSISTANCE.—Section 221(a) of the Trade Act of 1974 (19 U.S.G. 
2271(a)) is amended to read as follows: 
"(a)(1) A petition for certification of eligibility to apply for 
adjustment assistance for a group of workers under this chapter 
may be filed simultaneously with the Secretary and with the Gov-
ernor of the State in which such workers' firm or subdivision 
is located by any of the following: 
"(A) The group of workers (including workers in an agricul-
tural firm or subdivision of any agricultural firm). 
"(B) The certified or recognized union or other duly author-
ized representative of such workers. 
"(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801)), including State employment 
security agencies, or the State dislocated worker unit estab-
lished under title I of such Act, on behalf of such workers. 
"(2) Upon receipt of a petition filed under paragraph (1), the 
Governor shall— 
"(A) ensure that rapid response assistance, and appropriate 
core and intensive services (as described in section 134 of 
the Workforce Investment Act of 1998 (29 U.S.C. 2864)) author-
ized under other Federal laws are made available to the workers 
covered by the petition to the extent authorized under such 
laws; and 
"(B) assist the Secretary in the review of the petition by 
verifying such information and providing such other assistance 
as the Secretary may request. 
"(3) Upon receipt of the petition, the Secretary shall promptly 
publish notice in the Federal Register that the Secretary has 
received the petition and initiated an investigation.". 
(b) EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF LABOR.— 
Section 223(a) of such Act (19 U.S.C. 2273(a)) is amended in the 
first sentence by striking "60 days" and inserting "40 days". 
SEC. 113. GROUP ELIGIBILITY REQUIREMENTS. 
(a) TRADE ADJUSTMENT ASSISTANCE PROGRAM.— 
(1) IN GENERAL.—Section 222 of the Trade Act of 1974 
(19 U.S.C. 2272) is amended— 
(A) by amending subsection (a) to read as follows: 
"(a) IN GENERAL.—A group of workers (including workers in 
any agricultural firm or subdivision of an agricultural firm) shall 
be certified by the Secretary as eligible to apply for adjustment 
assistance under this chapter pursuant to a petition filed under 
section 221 if the Secretary determines that— 
"(1) a significant number or proportion of the workers 
in such workers' firm, or £in appropriate subdivision of the 
firm, have become totally or partially separated, or are threat-
ened to become totally or partially separated; and 
"(2)(A)(i) the sales or production, or both, of such firm 
or subdivision have decreased absolutely; 
"(ii) imports of articles like or directly competitive with 
articles produced by such firm or subdivision have increased; 
and 
X 
116 STAT. 938 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(iii) the increase in imports described in clause (ii) contrib-
uted importantly to such workers' separation or threat of sepa-
ration and to the decline in the sales or production of such 
firm or subdivision; or 
"(B)(i) there has been a shift in production by such workers' 
firm or subdivision to a foreign country of articles like or 
directly competitive with articles which are produced by such 
firm or subdivision; and 
"(ii)(I) the country to which the workers' firm has shifted 
production of the articles is a party to a free trade agreement 
with the United States; 
"(II) the country to which the workers' firm has shifted 
production of the articles is a beneficiary country under the 
Andean Trade Preference Act, African Growth and Opportunity 
Act, or the Caribbean Basin Economic Recovery Act; or 
"(III) there has been or is likely to be an increase in 
imports of articles that are like or directly competitive with 
articles which are or were produced by such firm or subdivi-
sion."; 
(B) by redesignating subsection (b) as subsection (c); 
and 
(C) by inserting after subsection (a) the following: 
"(b) ADVERSELY AFFECTED SECONDARY WORKERS.—A group of 
workers (including workers in any agricultural firm or subdivision 
of an agricultural firm) shall be certified by the Secretary as eligible 
to apply for trade adjustment assistance benefits under this chapter 
if the Secretary determines that— 
"(1) a significant number or proportion of the workers 
in the workers' firm or an appropriate subdivision of the firm 
have become totally or partially separated, or are threatened 
to become totally or partially separated; 
"(2) the workers' firm (or subdivision) is a supplier or 
downstream producer to a firm (or subdivision) that employed 
a group of workers who received a certification of eligibility 
under subsection (a), and such supply or production is related 
to the article that was the basis for such certification (as 
defined in subsection (c) (3) and (4)); and 
"(3) either— 
"(A) the workers' firm is a supplier and the component 
parts it supplied to the firm (or subdivision) described 
in paragraph (2) accounted for at least 20 percent of the 
production or sales of the workers' firm; or 
"(B) a loss of business by the workers' firm with the 
firm (or subdivision) described in paragraph (2) contributed 
importantly to the workers' separation or threat of separa-
tion determined under paragraph (1).". 
19 use 2272. 
(b) DEFINITIONS.—Section 222(c) of such Act, as redesignated 
by paragraph (1)(A), is amended— 
(1) in the matter preceding paragraph (1), by striking "sub-
section (a)(3)" and inserting "this section"; and 
(2) by adding at the end the following: 
"(3) DOWNSTREAM PRODUCER.—The term 'downstream pro-
ducer' means a firm that performs additional, value-added 
production processes for a firm or subdivision, including a firm 
that performs final assembly or finishing, directly for another 
firm (or subdivision), for articles that were the basis for a 
certification of eligibility under subsection (a) of a group of 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 939 
workers employed by such other firm, if the certification of 
eligibility under subsection (a) is based on £in increase in 
imports from, or a shift in production to, Canada or Mexico. 
"(4) SUPPLIER.—The term 'supplier' means a firm that pro-
duces and supplies directly to another firm (or subdivision) 
component parts for articles that were the basis for a certifi-
cation of eligibility under subsection (a) of a group of workers 
employed by such other firm.". 
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT 
ALLOWANCES. 
(a) 
CLARIFICATION 
OF 
CERTAIN 
REDUCTIONS.—Section 
231(a)(3)(B) of the Trade Act of 1974 (19 U.S.C. 2291(a)(3)(B)) 
is amended by inserting after "any unemployment insurance" the 
following: ", except additional compensation that is funded by a 
State and is not reimbursed from any Federal funds,". 
(b) 
ENROLLMENT 
IN 
TRAINING 
REQUIREMENT.—Section 
231(a)(5)(A) of such Act (19 U.S.C. 2291(a)(5)(A)) is amended— 
(1) by inserting "(i)" after "(A)"; 
(2) by adding "and" after the comma at the end; and 
(3) by adding at the end the following: 
"(ii) the enrollment required under clause (i) occurs Deadlines. 
no later than the latest o
f
— 
"(I) the last day of the 16th week after the worker's 
most recent total separation from adversely affected 
employment which meets the requirements of para-
graphs (1) and (2), 
"(II) the last day of the 8th week after the week 
in which the Secretary issues a certification covering 
the worker, 
"(III) 45 days after the later of the dates specified 
in subclause (I) or (II), if the Secretary determines 
there are extenuating circumstances that justify an 
extension in the enrollment period, or 
"(IV) the last day of a period determined by the 
Secretary to be approved for enrollment after the termi-
nation of a waiver issued pursuant to subsection (c),". 
SEC. 115. WAIVERS OF TRAINING REQUIREMENTS. 
(a) IN GENERAL.—Section 231(c) of the Trade Act of 1974 (19 
U.S.C. 2291(c)) is amended to read as follows: 
"(c) WAIVERS OF TRAINING REQUIREMENTS.— 
"(1) ISSUANCE OF WAIVERS.—The Secretary may issue a 
written statement to an adversely affected worker waiving the 
requirement to be enrolled in training described in subsection 
(a)(5)(A) if the Secretary determines that it is not feasible 
or appropriate for the worker, because of 1 or more of the 
following reasons: 
"(A) RECALL.—The worker has been notified that the 
worker will be recalled by the firm from which the separa-
tion occurred. 
"(B) 
MARKETABLE 
SKILLS.—The 
worker 
possesses 
marketable skills for suitable employment (as determined 
pursuant to an assessment of the worker, which may 
include the profiling system under section 303(j) of the 
Social Security Act (42 U.S.C. 503(j)), carried out in accord-
ance with guidelines issued by the Secretary) and there 
116 STAT. 940 
PUBLIC LAW 107-210—AUG. 6, 2002 
is a reasonable expectation of employment at equivalent 
wages in the foreseeable future. 
"(C) RETIREMENT.—The worker is within 2 years of 
meeting all requirements for entitlement to either— 
"(i) old-age insurance benefits under title II of 
the Social Security Act (42 U.S.C. 401 et seq.) (except 
for application therefor); or 
"(ii) a private pension sponsored by an employer 
or labor organization. 
"(D) HEALTH.—The worker is unable to participate in 
training due to the health of the worker, except that a 
waiver under this subparagraph shall not be construed 
to exempt a worker from requirements relating to the 
availability for work, active search for work, or refusal 
to accept work under Federal or State unemployment com-
pensation laws. 
"(E) ENROLLMENT UNAVAILABLE.—The first available 
enrollment date for the approved training of the worker 
is within 60 days after the date of the determination made 
under this paragraph, or, if later, there are extenuating 
circumstances for the delay in enrollment, as determined 
pursuant to guidelines issued by the Secretary. 
"(F) TRAINING NOT AVAILABLE.—Training approved by 
, the Secretary is not reasonably available to the worker 
from either governmental agencies or private sources 
(which may include area vocational education schools, as 
defined in section 3 of the Carl D. Perkins Vocational 
and Technical Education Act of 1998 (20 U.S.C. 2302), 
and employers), no training that is suitable for the worker 
is available at a reasonable cost, or no training funds 
are available. 
"(2) DURATION OF WAIVERS.— 
"(A) IN GENERAL.—A waiver issued under paragraph 
(1) shall be effective for not more than 6 months after 
the date on which the waiver is issued, unless the Secretary 
determines otherwise. 
"(B) REVOCATION.—The Secretary shall revoke a waiver 
issued under paragraph (1) if the Secretary determines 
that the basis of a waiver is no longer applicable to the 
worker and shall notify the worker in writing of the revoca-
tion. 
"(3) AGREEMENTS UNDER SECTION 239.— 
"(A) ISSUANCE BY COOPERATING STATES.—Pursuant to 
an agreement under section 239, the Secretary may 
authorize a cooperating State to issue waivers as described 
in paragraph (1). 
"(B) 
SUBMISSION OF STATEMENTS.—^An 
agreement 
under section 239 shall include a requirement that the 
cooperating State submit to the Secretary the written state-
ments provided under paragraph (1) and a statement of 
the reasons for the waiver.". 
(b) CONFORMING AMENDMENT.—Section 231(a)(5)(C) of such Act 
(19 U.S.C. 2291(a)(5)(C)) is amended by striking "certified". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 941 
SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT 
ALLOWANCES. 
(a) INCREASE IN MAXIMUM NUMBER OF WEEKS.—Section 233(a) 
of the Trade Act of 1974 (19 U.S.C. 2293(a)) is amended— 
(1) in paragraph (2), by inserting after "104-week period" 
the following: "(or, in the case of an adversely affected worker 
who requires a program of remedial education (as described 
in section 236(a)(5)(D)) in order to complete training approved 
for the worker under section 236, the 130-week period)"; and 
(2) in paragraph (3), by striking "26" each place it appears 
and inserting "52". 
(b) SPECIAL RULE RELATING TO BREAK IN TRAINING.—Section 
233(f) of the Trade Act of 1974 (19 U.S.C. 2293(f)) is amended 
in the matter preceding paragraph (1) by striking "14 days" and 
inserting "30 days". 
(c) ADDITIONAL WEEKS FOR INDIVIDUALS IN NEED OF REMEDIAL 
EDUCATION.—Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) 
is amended by adding at the end the following: 
"(g) Notwithstanding any other provision of this section, in 
order to assist an adversely affected worker to complete training 
approved for the worker under section 236 which includes a program 
of remedial education (as described in section 236(a)(5)(I))), and 
in accordance with regulations prescribed by the Secretary, pay-
ments may be made as trade readjustment allowances for up to 
26 additional weeks in the 26-week period that follows the last 
week of entitlement to trade readjustment allowances otherwise 
payable under this chapter.". 
SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING. 
Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 
2296(a)(2)(A)) is amended by striking "$80,000,000" and all that 
follows through "$70,000,000" and inserting "$220,000,000". 
SEC. 118. PROVISION OF EMPLOYER-BASED TRAINING. 
(a) IN GENERAL.—Section 236(a)(5)(A) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(5)(A)) is amended to read as follows: 
"(A) employer-based training, including— 
"(i) on-the-job training, and 
"(ii) customized training,". 
(b) REIMBURSEMENT.—Section 236(c)(8) of such Act (19 U.S.C. 
2296(c)(8)) is amended to read as follows: 
"(8) the employer is provided reimbursement of not more 
than 50 percent of the wage rate of the participant, for the 
cost of providing the training and additional supervision related 
to the training,". 
(c) DEFINITION.—Section 236 of such Act (19 U.S.C. 2296) is 
amended by adding at the end the following new subsection: 
"(f) For purposes of this section, the term 'customized training' 
means training that is— 
"(1) designed to meet the special requirements of an 
employer or group of employers; 
"(2) conducted with a commitment by the employer or 
group of employers to employ an individual upon successful 
completion of the training; and 
"(3) for which the employer pays for a significant portion 
(but in no case less than 50 percent) of the cost of such training, 
as determined by the Secretary.". 
116 STAT. 942 
PUBLIC LAW 107-210—AUG. 6, 2002 
SEC. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVEST-
MENT ACT OF 1998. 
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is 
amended by inserting before the period at the end of the first 
sentence the following: ", including the services provided through 
one-stop delivery systems described in section 134(c) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2864(c))". 
SEC. 120. EXPENDITURE PERIOD. 
Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as 
amended by section 111(a) of this Act, is further amended by 
amending subsection (b) to read as follows: 
"(b) PERIOD OF EXPENDITURE.—Funds obligated for any fiscal 
year to carry out activities under sections 235 through 238 may 
be expended by each State receiving such funds during that fiscal 
year and the succeeding two fiscal years.". 
SEC. 121. JOB SEARCH ALLOWANCES. 
Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is 
amended to read as follows: 
«SEC. 237. JOB SEARCH ALLOWANCES. 
"(a) JOB SEARCH ALLOWANCE AUTHORIZED.— 
"(1) IN GENERAL.—An adversely affected worker covered 
by a certification issued under subchapter A of this chapter 
may file an application with the Secretary for payment of 
a job search allowance. 
"(2) APPROVAL OF APPLICATIONS.—The Secretary may grant 
an allowance pursuant to an application filed under paragraph 
(1) when all of the following apply: 
"(A) ASSIST ADVERSELY AFFECTED WORKER.—^The allow-
ance is paid to assist an adversely affected worker who 
has been totally separated in securing a job within the 
United States. 
"(B) LOCAL EMPLOYMENT NOT AVAILABLE.—The Sec-
retary determines that the worker cannot reasonably be 
expected to secure suitable employment in the commuting 
area in which the worker resides. 
Deadlines. 
"(C) APPLICATION.—^The worker has filed an application 
for the allowance with the Secretary before— 
"(i) the later of— 
"(I) the 365th day after the date of the certifi-
cation under which the worker is certified as 
eligible; or 
"(II) the 365th day after the date of the 
worker's last total separation; or 
"(ii) the date that is the 182d day after the date 
on which the worker concluded training, unless the 
worker received a waiver under section 231(c). 
"(b) AMOUNT OF ALLOWANCE.— 
"(1) IN GENERAL.—An allowance granted under subsection 
(a) shall provide reimbursement to the worker of 90 percent 
of the cost of necessary job search expenses as prescribed by 
the Secretary in regulations. 
"(2) MAXIMUM ALLOWANCE.—Reimbursement imder this 
subsection may not exceed $1,250 for any worker. 
"(3) ALLOWANCE FOR SUBSISTENCE AND TRANSPORTATION.— 
Reimbursement under this subsection may not be made for 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 943 
subsistence and transportation expenses at levels exceeding 
those allowable under section 236(b) (1) and (2). 
"(c) EXCEPTION.—^Notwithstanding subsection (b), the Secretary 
shall reimburse any adversely affected worker for necessary 
expenses incurred by the worker in participating in a job search 
program approved by the Secretary.". 
SEC, 122. RELOCATION ALLOWANCES. 
Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is 
amended to read as follows: 
-SEC. 238. RELOCATION ALLOWANCES. 
"(a) RELOCATION ALLOWANCE AUTHORIZED.— 
"(1) IN GENERAL.—^Any adversely affected worker covered 
by a certification issued under subchapter A of this chapter 
may file an application for a relocation allowance with the 
Secretary, and the Secretary may grant the relocation allow-
ance, subject to the terms and conditions of this section. 
"(2) CONDITIONS FOR GRANTING ALLOWANCE.—A relocation 
allowance may be granted if all of the following terms and 
conditions are met: 
"(A) ASSIST AN ADVERSELY AFFECTED WORKER.—The 
relocation allowance will assist an adversely 
affected 
worker in relocating within the United States. 
"(B) LOCAL EMPLOYMENT NOT AVAILABLE.—^The Sec-
retary determines that the worker cannot reasonably be 
expected to secure suitable employment in the commuting 
area in which the worker resides. 
"(C) TOTAL SEPARATION.—^The worker is totally sepa-
rated from emplojrment at the time relocation commences. 
"(D) SUITABLE EMPLOYMENT OBTAINED.—^The worker^ 
"(i) has obtained suitable emplo3anent affording 
a reasonable expectation of long-term duration in the 
area in which the worker wishes to relocate; or 
"(ii) has obtained a bona fide offer of such employ-
ment. 
"(E) APPLICATION.—The worker filed an application Deadlines, 
with the Secretary before— 
"(i) the later of— 
"(I) the 425th day after the date of the certifi-
cation under subchapter A of this chapter; or 
"(II) the 425th day after the date of the 
worker's last total separation; or 
"(ii) the date that is the 182d day after the date 
on which the worker concluded training, unless the 
worker received a waiver under section 231(c). 
"(b) AMOUNT OF ALLOWANCE.—^The relocation allowance granted 
to a worker under subsection (a) includes— 
"(1) 90 percent of the reasonable and necessary expenses 
(including, but not limited to, subsistence and transportation 
expenses at levels not exceeding those allowable under section 
236(b) (1) and (2) specified in regulations prescribed by the 
Secretary, incurred in transporting the worker, the worker's 
family, and household effects; and 
"(2) a lump sum equivalent to 3 times the worker's average 
weekly wage, up to a maximum pa5niient of $1,250. 
"(c) LIMITATIONS.—^A relocation allowance may not be granted 
to a worker unless— 
99-1940-03-6 :QL3 Part2 
116 STAT. 944 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(1) the relocation occurs within 182 days after the filing 
of the application for relocation assistance; or 
"(2) the relocation occurs within 182 days after the conclu-
sion of training, if the worker entered a training program 
approved by the Secretary under section 236(b) (1) and (2).". 
SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE 
PROGRAM. 
(a) IN GENERAL.—Subchapter D of chapter 2 of title II of 
such Act (19 U.S.C. 2331) is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 225(b) (1) and (2) of the Trade Act of 1974 
(19 U.S.C. 2275(b) (1) and (2)) is amended by striking "or 
subchapter D" each place it appears. 
(2) Section 249A of such Act (19 U.S.C. 2322) is repealed. 
(3) The table of contents of such Act is amended— 
(A) by striking the item relating to section 249A; and 
(B) by striking the items relating to subchapter D 
of chapter 2 of title II. 
19 use 2395. 
(4) Section 284(a) of such Act is amended by striking "or 
section 250(c)". 
19 use 2331 
(c) EFFECTIVE DATE.— 
note. 
(1) IN GENERAL.—^The amendments made by this section 
shall apply with respect to petitions filed under chapter 2 
of title II of the Trade Act of 1974, on or after the date 
that is 90 days after the date of enactment of this Act. 
(2) WORKERS CERTIFIED AS ELIGIBLE BEFORE EFFECTIVE 
DATE.—Notwithstanding subsection (a), a worker receiving 
benefits under chapter 2 of title II of the Trade Act of 1974 
shall continue to receive (or be eligible to receive) benefits 
and services under chapter 2 of title II of the Trade Act of 
1974, as in effect on the day before the amendments made 
by this section take effect under subsection (a), for any week 
for which the worker meets the eligibility requirements of such 
chapter 2 as in effect on such date. 
SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE 
ADJUSTMENT ASSISTANCE FOR OLDER WORKERS. 
(a) DEMONSTRATION PROGRAM.—Chapter 2 of title II of the 
Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by striking 
section 246 and inserting the following new section: 
19 use 2318. 
"SEC. 246. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE 
ADJUSTMENT ASSISTANCE FOR OLDER WORKERS. 
"(a) IN GENERAL.— 
Deadline. 
"(1) ESTABLISHMENT.—Not later than 1 year after the date 
of enactment of the Trade Adjustment Assistance Reform Act 
of 2002, the Secretary shall establish an alternative trade 
adjustment assistance program for older workers that provides 
the benefits described in paragraph (2). 
"(2) BENEFITS. 
"(A) PAYMENTS.—A State shall use the fiinds provided 
to the State under section 241 to pay, for a period not 
to exceed 2 years, to a worker described in paragraph 
(3)(B), 50 percent of the difference between— 
"(i) the wages received by the worker 
from 
reemployment; and 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 945 
"(ii) the wages received by the worker at the time 
of separation. 
"(B) HEALTH INSURANCE.—A worker described in para-
graph (3)(B) participating in the program estabUshed under 
paragraph (1) is ehgible to receive, for a period not to 
exceed 2 years, a credit for health insurance costs under 
section 35 of the Internal Revenue Code of 1986, as added 
by section 201 of the Trade Act of 2002. 
"(3) ELIGIBILITY.— 
"(A) FIRM ELIGIBILITY.— 
"(i) IN GENERAL.—The Secretary shall provide the 
opportunity for a group of workers on whose behalf 
a petition is filed under section 221 to request that 
the group of workers be certified for the alternative 
trade adjustment assistance program under this sec-
tion at the time the petition is filed. 
"(ii) CRITERIA.—In determining whether to certify 
a group of workers as eligible for the alternative trade 
adjustment assistance program, the Secretary shall 
consider the following criteria: 
"(I) Whether a significant number of workers 
in the workers' firm are 50 years of age or older. 
"(II) Whether the workers in the workers' firm 
possess skills that are not easily tramsferable. 
"(Ill) The competitive conditions within the 
workers' industry. 
"(iii) DEADLINE.—The Secretary shall determine 
whether the workers in the group are eligible for the 
alternative trade adjustment assistance program by 
the date specified in section 223(a). 
"(B) INDIVIDUAL ELIGIBILITY.—A worker in the group 
that the Secretary has certified as eligible for the alter-
native trade adjustment assistance program may elect to 
receive benefits under the alternative trade adjustment 
assistance program if the worker— 
"(i) is covered by a certification under subchapter 
A of this chapter; 
"(ii) obtains reemployment not more than 26 weeks 
after the date of separation from the adversely affected 
employment; 
"(iii) is at least 50 years of age; and 
"(iv) earns not more than $50,000 a year in wages 
from reemployment; 
"(v) is employed on a full-time basis as defined 
by State law in the State in which the worker is 
employed; and 
"(vi) does not return to the employment from which 
the worker was separated. 
"(4) TOTAL AMOUNT OF PAYMENTS.—The payments described 
in paragraph (2)(A) made to a worker may not exceed $10,000 
per worker during the 2-year eligibility period. 
"(5) LIMITATION ON OTHER BENEFITS.—Except as provided 
in section 238(a)(2)(B), if a worker is receiving payments pursu-
ant to the program established under paragraph (1), the worker 
shall not be eligible to receive any other benefits under this 
title. 
"(b) TERMINATION.— 
116 STAT. 946 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
no payments may be made by a State under the program 
estabhshed under subsection (a)(1) after the date that is 5 
years after the date on which such program is implemented 
by the State. 
"(2) EXCEPTION.—Notwithstanding paragraph (1), a worker 
receiving payments under the program established under sub-
section (a)(1) on the termination date described in paragraph 
(1) shall continue to receive such payments provided that the 
worker meets the criteria described in subsection (a)(3)(B).". 
(b) TABLE OF CONTENTS.—The Trade Act of 1974 (U.S.C. et 
seq.) is amended in the table of contents by inserting after the 
item relating to section 245 the following new item: 
"Sec. 246. Demonstration project for alternative trade adjustment assistance for 
older workers.". 
19 u s e 2271 
SEC. 125. DECLARATION OF POLICY; SENSE OF CONGRESS. 
(a) DECLARATION OF POLICY.—Congress reiterates that, under 
the trade adjustment assistance program under chapter 2 of title 
II of the Trade Act of 1974, workers are eligible for transportation, 
childcare, and healthcare assistance, as well as other related assist-
ance under programs administered by the Department of Labor. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that 
the Secretary of Labor, working independently and in conjunction 
with the States, should, in accordance with section 225 of the 
Trade Act of 1974, provide more specific information about benefit 
allowances, training, and other employment services, and the peti-
tion and application procedures (including appropriate filing dates) 
for such allowances, training, and services, under the trade adjust-
ment assistance program under chapter 2 of title II of the Trade 
Act of 1974 to workers who are applying for, or are certified to 
receive, assistance under that program, including information on 
all other Federal assistance available to such workers. 
Subtitle B—Trade Adjustment Assistance 
For Firms 
SEC. 131. REAUTHORIZATION OF PROGRAM. 
Section 256(b) of chapter 3 of title II of the Trade Act of 
1974 (19 U.S.C. 2346(b)) is amended to read as follows: 
"(b) There are authorized to be appropriated to the Secretary 
$16,000,000 for each of fiscal years 2003 through 2007, to carry 
out the Secretary's functions under this chapter in connection with 
furnishing adjustment assistance to firms. Amounts appropriated 
under this subsection shall remain available until expended.". 
Subtitle C—Trade Adjustment Assistance 
For Farmers 
SEC. 141. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS. 
(a) IN GENERAL.—Title II of the Trade Act of 1974 (19 U.S.C. 
2251 et seq.) is amended by adding at the end the following new 
chapter: 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 947 
"CHAPTER 6—ADJUSTMENT ASSISTANCE FOR FARMERS 
"SEC. 291. DEFINITIONS. 
"In this chapter: 
"(1) AGRICULTURAL COMMODITY.—The term 'agricultural 
commodity' means any agricultural commodity (including live-
stock) in its raw or natural state. 
"(2) AGRICULTURAL COMMODITY PRODUCER.—The term 'agri-
cultural commodity producer' has the same meaning as the 
term 'person' as prescribed by regulations promulgated under 
section 1001(5) of the Food Security Act of 1985 (7 U.S.C. 
1308(5)). 
"(3) CONTRIBUTED IMPORTANTLY.— 
"(A) IN GENERAL.—The term 'contributed importantly' 
means a cause which is important but not necessarily 
more important than any other cause. 
"(B) DETERMINATION OF CONTRIBUTED IMPORTANTLY.— 
The determination of whether imports of articles like or 
directly competitive with an agricultural commodity with 
respect to which a petition under this chapter was filed 
contributed importantly to a decline in the price of the 
agricultural commodity shall be made by the Secretary. 
"(4) DULY AUTHORIZED REPRESENTATIVE.—The term 'duly 
authorized representative' means an association of agricultural 
commodity producers. 
"(5) NATIONAL AVERAGE PRICE.—The term 'national average 
price' means the national average price paid to an agricultural 
commodity producer for an agricultural commodity in a mar-
keting year as determined by the Secretary. 
"(6) SECRETARY.—The term 'Secretary' means the Secretary 
of Agriculture. 
"SEC. 292. PETITIONS; GROUP ELIGIBILITY. 
"(a) IN GENERAL.—A petition for a certification of eligibility 
to apply for adjustment assistance under this chapter may be filed 
with the Secretary by a group of agricultural commodity producers 
or by their duly authorized representative. Upon receipt of the 
petition, the Secretary shall promptly publish notice in the Federal 
Register that the Secretary has received the petition and initiated 
an investigation. 
"(b) HEARINGS.—If the petitioner, or any other person found 
by the Secretary to have a substantial interest in the proceedings, 
submits not later than 10 days after the date of the Secretary's 
publication under subsection (a) a request for a hearing, the Sec-
retary shall provide for a public hearing and afford such interested 
person an opportunity to be present, to produce evidence, and 
to be heard. 
"(c) GROUP ELIGIBILITY REQUIREMENTS.—The Secretary shall 
certify a group of agricultural commodity producers as eligible to 
apply for adjustment assistance under this chapter if the Secretary 
determines— 
"(1) that the national average price for the agricultural 
commodity, or a class of goods within the agricultural com-
modity, produced by the group for the most recent marketing 
year for which the national average price is available is less 
than 80 percent of the average of the national average price 
for such agricultural commodity, or such class of goods, for 
19 u s e 2401. 
19 u s e 2401a. 
Notice. 
Federal Register, 
publication. 
116 STAT. 948 
PUBLIC LAW 107-210—AUG. 6, 2002 
19 u s e 2401b. 
Deadline. 
Federal Register, 
publication. 
Federal Register, 
publication. 
the 5 marketing years preceding the most recent marketing 
year; and 
"(2) that increases in imports of articles Hke or directly 
competitive with the agricultural commodity, or class of goods 
within the agricultural commodity, produced by the group 
contributed importantly to the decline in price described in 
paragraph (1). 
"(d) 
SPECIAL RULE FOR QUALIFIED SUBSEQUENT YEARS.—A 
group of agricultural commodity producers certified as eligible under 
section 293 shall be eligible to apply for assistance under this 
chapter in any qualified year after the year the group is first 
certified, if the Secretary determines that— 
"(1) the national average price for the agricultural com-
modity, or class of goods within the agricultural commodity, 
produced by the group for the most recent marketing year 
for which the national average price is available is equal to 
or less than the price determined under subsection (c)(1); and 
"(2) the requirements of subsection (c)(2) are met. 
"(e) DETERMINATION OF QUALIFIED YEAR AND COMMODITY.— 
In this chapter: 
"(1) QUALIFIED YEAR.—The term 'qualified year', with 
respect to a group of agricultural commodity producers certified 
as eligible under section 293, means each consecutive year 
after the year in which the group is certified and in which 
the Secretary makes the determination under subsection (c) 
or (d), as the case may be. 
"(2) CLASSES OF GOODS WITHIN A COMMODITY.—In any case 
in which there are separate classes of goods within an agricul-
tural commodity, the Secretary shall treat each class as a 
separate commodity in determining group eligibility, the 
national average price, and level of imports under this section 
and section 296. 
"SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE. 
"(a) IN GENERAL.—^As soon as practicable after the date on 
which a petition is filed under section 292, but in any event not 
later than 40 days after that date, the Secretary shall determine 
whether the petitioning group meets the requirements of section 
292 (c) or (d), as the case may be, and shall, if the group meets 
the requirements, issue a certification of eligibility to apply for 
assistance under this chapter covering agricultural commodity pro-
ducers in any group that meets the requirements. Each certification 
shall specify the date on which eligibility under this chapter begins. 
"(b) NOTICE.—Upon making a determination on a petition, the 
Secretary shall promptly publish a summary of the determination 
in the Federal Register, together with the Secretary's reasons for 
making the determination. 
"(c) TERMINATION OF CERTIFICATION.—Whenever the Secretary 
determines, with respect to any certification of eligibility under 
this chapter, that the decline in price for the agricultural commodity 
covered by the certification is no longer attributable to the condi-
tions described in section 292, the Secretary shall terminate such 
certification and promptly cause notice of such termination to be 
published in the Federal Register, together with the Secretary's 
reasons for making such determination. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 949 
Deadline. 
Federal Register, 
publication. 
19 u s e 2401d. 
"SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTER- 
19 USC 2401c. 
NATIONAL TRADE COMMISSION BEGINS INVESTIGATION. 
"(a) IN GENERAL.—Whenever the International Trade Commis-
sion (in this chapter referred to as the 'Commission') begins an 
investigation under section 202 with respect to an agricultural 
commodity, the Commission shall immediately notify the Secretary 
of the investigation. Upon receipt of the notification, the Secretary 
shall immediately conduct a study o
f
— 
"(1) the number of agricultural commodity producers pro-
ducing a like or directly competitive agricultural commodity 
who have been or are likely to be certified as eligible for 
adjustment assistance under this chapter, and 
"(2) the extent to which the adjustment of such producers 
to the import competition may be facilitated through the use 
of existing programs. 
"(b) REPORT.—Not later than 15 days after the day on which 
the Commission makes its report under section 202(f), the Secretary 
shall submit a report to the President setting forth the findings 
of the study described in subsection (a). Upon making the report 
to the President, the Secretary shall also promptly make the report 
public (with the exception of information which the Secretary deter-
mines to be confidential) and shall have a summary of the report 
published in the Federal Register. 
'*SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY 
PRODUCERS. 
"(a) IN GENERAL.—The Secretary shall provide full information 
to agricultural commodity producers about the benefit allowances, 
training, and other employment services available under this title 
and about the petition and application procedures, and the appro-
priate filing dates, for such allowances, training, and services. The 
Secretary shall provide whatever assistance is necessary to enable 
groups to prepare petitions or applications for program benefits 
under this title. 
"(b) NOTICE OF BENEFITS.— 
"(1) IN GENERAL.—The Secretary shall mail written notice 
of the benefits available under this chapter to each agricultural 
commodity producer that the Secretary has reason to believe 
is covered by a certification made under this chapter. 
"(2) OTHER NOTICE.—The Secretary shall publish notice Publication, 
of the benefits available under this chapter to agricultural 
commodity producers that are covered by each certification 
made under this chapter in newspapers of general circulation 
in the areas in which such producers reside. 
"(3) OTHER FEDERAL ASSISTANCE.—The Secretary shall also 
provide information concerning procedures for applying for and 
receiving all other Federal assistance and services available 
to workers facing economic distress. 
"SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL COM- 
19 USC 2401e. 
MODITY PRODUCERS. 
"(a) IN GENERAL.— 
"(1) REQUIREMENTS.—Payment of a trade adjustment allow-
ance shall be made to an adversely affected agricultural com-
modity producer covered by a certification under this chapter 
who files an application for such allowance within 90 days 
after the date on which the Secretary makes a determination 
116 STAT. 950 
PUBLIC LAW 107-210—AUG. 6, 2002 
and issues a certification of eligibility under section 293, if 
the following conditions are met: 
"(A) The producer submits to the Secretary sufficient 
information to establish the amount of agricultural com-
modity covered by the application filed under subsection 
(a) that was produced by the producer in the most recent 
year. 
"(B) The producer certifies that the producer has not 
received cash benefits under any provision of this title 
other than this chapter. 
"(C) The producer's net farm income (as determined 
by the Secretary) for the most recent year is less than 
the producer's net farm income for the latest year in which 
no adjustment assistance was received by the producer 
under this chapter. 
"(D) The producer certifies that the producer has met 
with an Extension Service employee or agent to obtain, 
at no cost to the producer, information and technical assist-
ance that will assist the producer in adjusting to import 
competition with respect to the adversely affected agricul-
tural commodity, including— 
"(i) information regarding the feasibility and desir-
ability of substituting 1 or more alternative commod-
ities for the adversely affected agricultural commodity; 
and 
"(ii) technical assistance that will improve the 
competitiveness of the production and marketing of 
the adversely affected agricultural commodity by the 
producer, including yield and marketing improvements. 
"(2) LIMITATIONS.— 
"(A) ADJUSTED GROSS INCOME.— 
"(i) IN GENERAL.—Notwithstanding any other 
provision of this chapter, an agricultural commodity 
producer shall not be eligible for assistance under this 
chapter in any year in which the average adjusted 
gross income of the producer exceeds the level set 
forth in section 100ID of the Food Security Act of 
1985. 
"(ii) CERTIFICATION.—To comply with the limita-
tion under subparagraph (A), an individual or entity 
shall provide to the Secretary— 
"(I) a certification by a certified public account-
ant or another third party that is acceptable to 
the Secretary that the average adjusted gross 
income of the producer does not exceed the level 
set forth in section lOOlD of the Food Security 
Act of 1985; or 
"(II) information and documentation regarding 
the adjusted gross income of the producer through 
other procedures established by the Secretary. 
"(B) COUNTER-CYCLICAL PAYMENTS.—The total amount 
of payments made to an agricultural producer under this 
chapter during any crop year may not exceed the limitation 
on counter-cyclical payments set forth in section lOOl(c) 
of the Food Security Act of 1985. 
"(C) DEFINITIONS.—In this subsection: 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 951 
"(i) ADJUSTED GROSS INCOME.—The term 'adjusted 
gross income' means adjusted gross income of an agri-
cultural commodity producer— 
"(I) as defined in section 62 of the Internal 
Revenue Code of 1986 and implemented in accord-
ance with procedures established by the Secretary; 
and 
"(II) that is earned directly or indirectly from 
all agricultural and nonagricultural sources of an 
individual or entity for a fiscal or corresponding 
crop year. 
"(ii) AVERAGE ADJUSTED GROSS INCOME.— 
"(I) IN GENERAL.—The term 'average adjusted 
gross income' means the average adjusted gross 
income of a producer for each of the 3 preceding 
taxable years. 
"(II) EFFECTIVE ADJUSTED GROSS INCOME.—In 
the case of a producer that does not have an 
adjusted gross income for each of the 3 preceding 
taxable years, the Secretary shall establish rules 
that provide the producer with an 
effective 
adjusted gross income for the applicable year. 
"(b) AMOUNT OF CASH BENEFITS.— 
"(1) IN GENERAL.—Subject to the provisions of section 298, 
an 
adversely 
affected 
agricultural 
commodity 
producer 
described in subsection (a) shall be entitled to adjustment 
assistance under this chapter in an amount equal to the product 
of— 
"(A) one-half of the difference between— 
"(i) an amount equal to 80 percent of the average 
of the national average price of the agricultural com-
modity covered by the application described in sub-
section (a) for the 5 marketing years preceding the 
most recent marketing year, and 
"(ii) the national average price of the agricultural 
commodity for the most recent marketing year, and 
"(B) the amount of the agricultural commodity pro-
duced by the agricultural commodity producer in the most 
recent marketing year. 
"(2) 
SPECIAL RULE FOR SUBSEQUENT QUALIFIED YEARS.— 
The amount of cash benefits for a qualified year shall be deter-
mined in the same manner as cash benefits are determined 
under paragraph (1) except that the average national price 
of the agricultural commodity shall be determined under para-
graph (l)(A)(i) by using the 5-marketing-year period used to 
determine the amount of cash benefits for the first certification. 
"(c) MAXIMUM AMOUNT OF CASH ASSISTANCE.—The maximum 
amount of cash benefits an agricultural commodity producer may 
receive in any 12-month period shall not exceed $10,000. 
"(d) LIMITATIONS ON OTHER ASSISTANCE.—An agricultural com-
modity producer entitled to receive a cash benefit under this 
chapter— 
"(1) shall not be eligible for any other cash benefit under 
this title, and 
"(2) shall be entitled to employment services and training 
benefits under part II of subchapter B of chapter 2. 
116 STAT. 952 
PUBLIC LAW 107-210—AUG. 6, 2002 
19 use 2401f. 
"SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS. 
"(a) IN GENERAL.— 
"(1) REPAYMENT.—If the Secretary, or a court of competent 
jurisdiction, determines that any person has received any pay-
ment under this chapter to which the person was not entitled, 
such person shall be liable to repay such amount to the Sec-
retary, except that the Secretary may waive such repayment 
if the Secretary determines, in accordance with guidelines pre-
scribed by the Secretary, that— 
"(A) the payment was made without fault on the part 
of such person; and 
"(B) requiring such repayment would be contrary to 
equity and good conscience. 
"(2) RECOVERY OF OVERPAYMENT.—Unless an overpayment 
is otherwise recovered, or waived under paragraph (1), the 
Secretary shall recover the overpayment by deductions from 
any sums payable to such person under this chapter. 
"(b) FALSE STATEMENT.—^A person shall, in addition to any 
other penalty provided by law, be ineligible for any further pay-
ments under this chapter— 
"(1) if the Secretary, or a court of competent jurisdiction, 
determines that the person— 
"(A) knowingly has made, or caused another to make, 
a false statement or representation of a material fact; or 
"(B) knowingly has failed, or caused another to fail, 
to disclose a material fact; and 
"(2) as a result of such false statement or representation, 
or of such nondisclosure, such person has received any payment 
under this chapter to which the person was not entitled. 
"(c) NOTICE AND DETERMINATION.—Except for overpayments 
determined by a court of competent jurisdiction, no repayment 
may be required, and no deduction may be made, under this section 
until a determination under subsection (a)(1) by the Secretary has 
been made, notice of the determination and £in opportunity for 
a fair hearing thereon has been given to the person concerned, 
and the determination has become final. 
"(d) PAYMENT TO TREASURY.—^Any amount recovered under this 
section shall be returned to the Treasury of the United States. 
"(e) PENALTIES.—Whoever makes a false statement of a mate-
rial fact knowing it to be false, or knowingly fails to disclose 
a material fact, for the purpose of obtaining or increasing for 
himself or for any other person any payment authorized to be 
furnished under this chapter shall be fined not more than $10,000 
or imprisoned for not more than 1 year, or both. 
19 use 240 
Ig. 
"SEC. 298. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—There are authorized to be appropriated 
and there are appropriated to the Department of Agriculture not 
to exceed $90,000,000 for each of the fiscal years 2003 through 
2007 to carry out the purposes of this chapter. 
"(b) PROPORTIONATE REDUCTION.—If in any year the amount 
appropriated under this chapter is insufficient to meet the require-
ments for adjustment assistance payable under this chapter, the 
amount of assistance payable under this chapter shall be reduced 
proportionately.". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 953 
(b) EFFECTIVE DATE.—The amendments made by this title shall 
19 USC 2401 
take effect on the date that is 180 days after the date of enactment 
^°^-
of this Act. 
SEC. 142. CONFORMING AMENDMENTS. 
(a) JUDICIAL REVIEW.— 
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 
2395(a)) is amended— 
(A) by inserting "an agricultural commodity producer 
(as defined in section 291(2)) aggrieved by a determination 
of the Secretary of Agriculture under section 293, " after 
"section 251 of this title,"; and 
(B) in the second sentence of subsection (a) and in 
subsections (b) and (c), by striking "or the Secretary of 
Commerce" each place it appears and inserting ", the Sec-
retary of Commerce, or the Secretary of Agriculture". 
(b) CHAPTERS 6.—The table of contents for title II of the Trade 
Act of 1974, as amended by subparagraph (A), is amended by 
inserting after the items relating to chapter 5 the following: 
"CHAPTER 6—-ADJUSTMENT ASSISTANCE FOR FARMERS 
"Sec. 291. Definitions. 
"Sec. 292. Petitions; group eligibility. 
"Sec. 293. Determinations by Secretary of Agriculture. 
"Sec. 294. Study by Secretary of Agriculture when International Trade Commission 
begins investigation. 
"Sec. 295. Benefit information to agricultural commodity producers. 
"Sec. 296. Qualifying requirements for agricultural commodity producers. 
"Sec. 297. Fraud and recovery of overpayments. 
"Sec. 298. Authorization of appropriations.". 
SEC. 143. STUDY ON TAA FOR FISHERMEN. 
19 USC 2251 
Not later than 1 year after the date of enactment of this Deadline. 
Act, the Secretary of Commerce shall conduct a study and report 
to Congress regarding whether a trade adjustment assistance pro-
gram is appropriate and feasible for fishermen. For purposes of 
the preceding sentence, the term "fishermen" means any person 
who is engaged in commercial fishing or is a United States fish 
processor. 
Subtitle D—Effective Date 
SEC. 151. EFFECTIVE DATE. 
19 USC note 
prec 2271 
(a) IN GENERAL.—Except as otherwise provided in sections 
123(c) and 141(b), and subsections (b), (c), and (d) of this section, 
the amendments made by this division shall apply to petitions 
for certification filed under chapter 2 or 3 of title II of the Trade 
Act of 1974 on or after the date that is 90 days after the date 
of enactment of this Act. 
(b) 
WORKERS CERTIFIED AS ELIGIBLE BEFORE 
EFFECTIVE 
DATE.—Notwithstanding subsection (a), a worker shall continue 
to receive (or be eligible to receive) trade adjustment assistance 
and other benefits under chapter 2 of title II of the Trade Act 
of 1974, as in effect on September 30, 2001, for any week for 
which the worker meets the eligibility requirements of such chapter 
2 as in effect on such date, if on or before such date, the worker— 
(1) was certified as eligible for trade adjustment assistance 
benefits under such chapter as in effect on such date; and 
116 STAT. 954 
PUBLIC LAW 107-210—AUG. 6, 2002 
(2) would otherwise be eligible to receive trade adjustment 
assistance benefits under such chapter as in effect on such 
date. 
(c) 
WORKERS 
WHO 
BECAME 
ELIGIBLE 
DURING 
QUALIFIED 
PERIOD.— 
(1) IN GENERAL.—Notwithstanding subsection (a) or any 
other provision of law, including section 285 of the Trade Act 
of 1974, any worker who would have been eligible to receive 
trade adjustment assistance or other benefits under chapter 
2 of title II of the Trade Act of 1974 during the qualified 
period if such chapter 2 had been in effect during such period, 
shall be eligible to receive trade adjustment assistance and 
other benefits under chapter 2 of title II of the Trade Act 
of 1974, as in effect on September 30, 2001, for any week 
during the qualified period for which the worker meets the 
eligibility requirements of such chapter 2 as in effect on Sep-
tember 30, 2001. 
(2) QUALIFIED PERIOD.—For purposes of this subsection, 
the term "qualified period" means the period beginning on 
January 11, 2002, and ending on the date that is 90 days 
after the date of enactment of this Act. 
(d) ADJUSTMENT ASSISTANCE FOR FIRMS.— 
(1) IN GENERAL.—Notwithstanding subsection (a) or any 
other provision of law, including section 285 of the Trade Act 
of 1974, and except as provided in paragraph (2), any firm 
that would have been eligible to receive adjustment assistance 
under chapter 3 of title II of the Trade Act if 1974 during 
the qualified period if such chapter 3 had been in effect during 
such period, shall be eligible to receive adjustment assistance 
under chapter 3 of title II of the Trade Act of 1974, as in 
effect on September 30, 2001, for any week during the qualified 
period for which the firm meets the eligibility requirements 
of such chapter 3 as in effect on September 30, 2001. 
(2) QUALIFIED PERIOD.—For purposes of this subsection, 
the term "qualified period" means the period beginning on 
October 1, 2001, and ending on the date that is 90 days after 
the date of enactment of this Act. 
TITLE II—CREDIT FOR HEALTH INSUR-
ANCE COSTS OF ELIGIBLE INDIVID-
UALS 
SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS 
RECEIVING A TRADE READJUSTMENT ALLOWANCE OR 
A BENEFIT FROM THE PENSION BENEFIT GUARANTY 
CORPORATION. 
(a) IN GENERAL.—Subpart C of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to refund-
able credits) is amended by redesignating section 35 as section 
36 and inserting after section 34 the following new section: 
26 u s e 35. 
"SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS. 
"(a) IN GENERAL.—In the case of an individual, there shall 
be allowed as a credit against the tax imposed by subtitle A an 
amount equal to 65 percent of the amount paid by the taxpayer 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 955 
for coverage of the taxpayer and qualifying family members under 
qualified health insurance for eligible coverage months beginning 
in the taxable year. 
"(b) 
ELIGIBLE 
COVERAGE 
MONTH.—For 
purposes 
of this 
section— 
"(1) IN GENERAL.—The term 'eligible coverage month' means 
any month if— 
"(A) as of the first day of such month, the taxpayer— 
"(i) is an eligible individual, 
"(ii) is covered by qualified health insurance, the 
premium for which is paid by the taxpayer, 
"(iii) does not have other specified coverage, and 
"(iv) is not imprisoned under Federal, State, or 
local authority, and 
"(B) such month begins more than 90 days after the 
date of the enactment of the Trade Act of 2002. 
"(2) JOINT RETURNS.—In the case of a joint return, the 
requirements of paragraph (1)(A) shall be treated as met with 
respect to any month if at least 1 spouse satisfies such require-
ments. 
"(c) ELIGIBLE INDIVIDUAL.—For purposes of this section— 
"(1) IN GENERAL.—The term 'eligible individual' means— 
"(A) an eligible TAA recipient, 
"(B) an eligible alternative TAA recipient, and 
"(C) an eligible PBGC pension recipient. 
"(2) ELIGIBLE TAA RECIPIENT.—The term 'eligible TAA 
recipient' means, with respect to any month, any individual 
who is receiving for any day of such month a trade readjustment 
allowance under chapter 2 of title II cf the Trade Act of 1974 
or who would be eligible to receive such allowance if section 
231 of such Act were applied without regard to subsection 
(a)(3)(B) of such section. An individual shall continue to be 
treated as an eligible TAA. recipient during the first month 
that such individual would otherwise cease to be an eligible 
TAA recipient by reason of the preceding sentence. 
"(3) ELIGIBLE 
ALTERNATIVE TAA RECIPIENT.—The term 
'eligible alternative TAA recipient' means, with respect to any 
month, any individual who— 
"(A) is a worker described in section 246(a)(3)(B) of 
the Trade Act of 1974 who is participating in the program 
established under section 246(a)(1) of such Act, and 
"(B) is receiving a benefit for such month under section 
246(a)(2) of such Act. 
An individual shall continue to be treated as an eligible alter-
native TAA recipient during the first month that such indi-
vidual would otherwise cease to be an eligible alternative TAA 
recipient by reason of the preceding sentence. 
"(4) ELIGIBLE PBGC PENSION RECIPIENT.—The term 'eligible 
PBGC pension recipient' means, with respect to any month, 
any individual who— 
"(A) has attained age 55 as of the first day of such 
month, and 
"(B) is receiving a benefit for such month any portion 
of which is paid by the Pension Benefit Guaranty Corpora-
tion under title IV of the Employee Retirement Income 
Security Act of 1974. 
116 STAT. 956 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(d) 
QUALIFYING FAMILY MEMBER.—For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualifying family member' 
means— 
"(A) the taxpayer's spouse, and 
"(B) any dependent of the taxpayer with respect to 
whom the taxpayer is entitled to a deduction under section 
151(c). 
Such term does not include any individual who has other speci-
fied coverage. 
"(2) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED PAR-
ENTS, ETC.—If paragraph (2) or (4) of section 152(e) applies 
to any child with respect to any calendar year, in the case 
of any taxable year beginning in such calendar year, such 
child shall be treated as described in paragraph (1)(B) with 
respect to the custodial parent (within the meaning of section 
152(e)(1)) and not with respect to the noncustodial parent. 
"(e) QUALIFIED HEALTH INSURANCE.—For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualified health insurance' 
means any of the following: 
"(A) Coverage under a COBRA continuation provision 
(as defined in section 9832(d)(1)). 
"(B) State-based continuation coverage provided by the 
State under a State law that requires such coverage. 
"(C) Coverage offered through a qualified State high 
risk pool (as defined in section 2744(c)(2) of the Public 
Health Service Act). 
"(D) Coverage under a health insurance program 
offered for State employees. 
"(E) Coverage under a State-based health insurance 
program that is comparable to the health insurance pro-
gram offered for State employees. 
"(F) Coverage through an arrangement entered into 
by a State and— 
"(i) a group health plan (including such a plan 
which is a multiemployer plan as defined in section 
3(37) of the Employee Retirement Income Security Act 
of 1974), 
"(ii) an issuer of health insurance coverage, 
"(iii) an administrator, or 
"(iv) an employer. 
"(G) Coverage offered through a State arrangement 
with a private sector health care coverage purchasing pool. 
"(H) Coverage under a State-operated health plan that 
does not receive any Federal financial participation. 
"(I) Coverage under a group health plan that is avail-
able through the employment of the eligible individual's 
spouse. 
"(J) In the case of any eligible individual and such 
individual's qualifying family members, coverage under 
individual health insurance if the eligible individual was 
covered under individual health insurance during the entire 
30-day period that ends on the date that such individual 
became separated from the employment which qualified 
such individual for— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 957 
"(i) in the case of an eligible TAA recipient, the 
allowance described in subsection (c)(2), 
"(ii) in the case of an eligible alternative TAA 
recipient, the benefit described in subsection (c)(3)(B), 
or 
"(iii) in the case of any eligible PBGC pension 
recipient, the benefit described in subsection (c)(4)(B). 
For purposes of this subparagraph, the term 'individual 
health insurance' means any insurance which constitutes 
medical care offered to individuals other than in connection 
with a group health plan and does not include Federal-
or State-based health insurance coverage. 
"(2) REQUIREMENTS FOR STATE-BASED COVERAGE.— 
"(A) IN GENERAL.—The term 'quahfied health insur-
ance' does not include any coverage described in subpara-
graphs (B) through (H) of paragraph (1) unless the State 
involved has elected to have such coverage treated as quali-
fied health insurance under this section and such coverage 
meets the following requirements: 
"(i) GUARANTEED ISSUE.—Each qualifying indi-
vidual is guaranteed enrollment if the individual pays 
the premium for enrollment or provides a qualified 
health insurance costs credit eligibility 
certificate 
described in section 7527 and pays the remainder of 
such premium. 
"(ii) No IMPOSITION OF PREEXISTING CONDITION 
EXCLUSION.—No pre-existing condition limitations are 
imposed with respect to any qualifying individual. 
"(iii) 
NONDISCRIMINATORY PREMIUM.—The total 
premium (as determined without regard to any sub-
sidies) with respect to a qualif5dng individual may 
not be greater than the total premium (as so deter-
mined) for a similarly situated individual who is not 
a qualifying individual. 
"(iv) SAME BENEFITS.—Benefits under the coverage 
are the same as (or substantially similar to) the bene-
fits provided to similarly situated individuals who are 
not qualifying individuals. 
"(B) QUALIFYING INDIVIDUAL.—For purposes of this 
paragraph, the term 'qualifying individual' means— 
"(i) an eligible individual for whom, as of the date 
on which the individual seeks to enroll in the coverage 
described in subparagraphs (B) through (H) of para-
graph (1), the aggregate of the periods of creditable 
coverage (as defined in section 9801(c)) is 3 months 
or longer and who, with respect to any month, meets 
the requirements of clauses (iii) and (iv) of subsection 
(b)(1)(A); and 
"(ii) the qualifying family members of such eligible 
individual. 
"(3) EXCEPTION.—The term 'qualified health insurance' 
shall not include— 
"(A) a flexible spending or similar arrangement, and 
"(B) any insurance if substantially all of its coverage 
is of excepted benefits described in section 9832(c). 
116 STAT. 958 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(f) OTHER SPECIFIED COVERAGE.—For purposes of this section, 
an individual has other specified coverage for any month if, as 
of the first day of such month— 
"(1) SUBSIDIZED COVERAGE.— 
"(A) IN GENERAL.—Such individual is covered under 
any insurance which constitutes medical care (except insur-
ance substantially all of the coverage of which is of excepted 
benefits described in section 9832(c)) under any health 
. 
plan maintained by any employer (or former employer) 
of the taxpayer or the taxpayer's spouse and at least 50 
percent of the cost of such coverage (determined under 
section 4980B) is paid or incurred by the employer. 
"(B) 
ELIGIBLE ALTERNATIVE TAA RECIPIENTS.—In 
the 
case of an eligible alternative TAA recipient, such indi-
vidual is either— 
"(i) eligible for coverage under any qualified health 
insurance (other than insurance described in subpara-
graph (A), (B), or (F) of subsection (e)(1)) under which 
at least 50 percent of the cost of coverage (determined 
under section 4980B(f)(4)) is paid or incurred by an 
employer (or former employer) of the taxpayer or the 
taxpayer's spouse, or 
"(ii) covered under any such qualified health insur-
ance under which any portion of the cost of coverage 
(as so determined) is paid or incurred by an employer 
(or former employer) of the taxpayer or the taxpayer's 
spouse. 
"(C) TREATMENT OF CAFETERIA PLANS.—For purposes 
of subparagraphs (A) and (B), the cost of coverage shall 
be treated as paid or incurred by an employer to the 
extent the coverage is in lieu of a right to receive cash 
or other qualified benefits under a cafeteria plan (as defined 
in section 125(d)). 
"(2) COVERAGE UNDER MEDICARE, MEDICAID, OR SCHIP.— 
Such individual— 
"(A) is entitled to benefits under part A of title XVIII 
of the Social Security Act or is enrolled under part B 
of such title, or 
"(B) is enrolled in the program under title XIX or 
XXI of such Act (other than under section 1928 of such 
Act). 
"(3) CERTAIN OTHER COVERAGE.—Such individual— 
"(A) is enrolled in a health benefits plan under chapter 
89 of title 5, United States Code, or 
"(B) is entitled to receive benefits under chapter 55 
of title 10, United States Code. 
"(g) SPECIAL RULES.— 
"(1) COORDINATION WITH ADVANCE PAYMENTS OF CREDIT.— 
With respect to any taxable year, the amount which would 
(but for this subsection) be allowed as a credit to the taxpayer 
under subsection (a) shall be reduced (but not below zero) 
by the aggregate amount paid on behalf of such taxpayer under 
section 7527 for months beginning in such taxable year. 
"(2) 
COORDINATION WITH OTHER DEDUCTIONS.—^Amounts 
taken into account under subsection (a) shall not be taken 
into account in determining any deduction allowed under sec-
tion 162(1) or 213. 
PUBLIC LAW 107-210-AUG. 6, 2002 
116 STAT. 959 
"(3) MSA DISTRIBUTIONS.—Amounts distributed from an 
Archer MSA (as defined in section 220(d)) shall not be taken 
into account under subsection (a). 
"(4) DENIAL OF CREDIT TO DEPENDENTS.—NO credit shall 
be allowed under this section to any individual with respect 
to whom a deduction under section 151 is allowable to another 
taxpayer for a taxable year beginning in the calendar year 
in which such individual's taxable year begins. 
"(5) BOTH SPOUSES ELIGIBLE INDIVIDUALS.—The spouse of 
the taxpayer shall not be treated as a qualif5dng family member 
for purposes of subsection (a), i
f
— 
"(A) the taxpayer is married at the close of the taxable 
year, 
"(B) the taxpayer and the taxpayer's spouse are both 
eligible individuals during the taxable year, and 
"(C) the taxpayer files a separate return for the taxable 
year. 
"(6) MARITAL STATUS; CERTAIN MARRIED INDIVIDUALS LIVING 
APART.—Rules similar to the rules of paragraphs (3) and (4) 
of section 21(e) shall apply for purposes of this section. 
"(7) INSURANCE WHICH COVERS OTHER INDIVIDUALS.—For 
purposes of this section, rules similar to the rules of section 
213(d)(6) shall apply with respect to any contract for qualified 
health insurance under which amounts are payable for coverage 
of an individual other than the taxpayer and qualifying family 
members. 
"(8) TREATMENT OF PAYMENTS.—For purposes of this 
section— 
"(A) PAYMENTS BY SECRETARY.—Payments made by the 
Secretary on behalf of any individual under section 7527 
(relating to advance pa5anent of credit for health insurance 
costs of eligible individuals) shall be treated as having 
been made by the taxpayer on the first day of the month 
for which such pa5anent was made. 
"(B) PAYMENTS BY TAXPAYER.—Payments made by the 
taxpayer for eligible coverage months shall be treated as 
having been made by the taxpayer on the first day of 
the month for which such payment was made. 
"(9) REGULATIONS.—The Secretary may prescribe such 
regulations and other guidance as may be necessary or appro-
priate to carry out this section, section 6050T, and section 
7527.". 
(b) PROMOTION OF STATE HIGH RISK POOLS.—Title XXVII of 
the Public Health Service Act is amended by inserting after section 
2744 the following new section: 
"SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS. 
42 USC 
"(a) SEED GRANTS TO STATES.—The Secretary shall provide 
^^" 
from the funds appropriated under subsection (c)(1) a grant of 
up to $1,000,000 to each State that has not created a qualified 
high risk pool as of the date of the enactment of this section 
for the State's costs of creation and initial operation of such a 
pool. 
"(b) MATCHING FUNDS FOR OPERATION OF POOLS.— 
"(1) IN GENERAL.—In the case of a State that has estab-
lished a qualified high risk pool that— 
116 STAT. 960 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(A) restricts premiums charged under the pool to no 
more than 150 percent of the premium for apphcable 
standard risk rates; 
"(B) offers a choice of two or more coverage options 
through the pool; and 
"(C) has in effect a mechanism reasonably designed 
to ensure continued funding of losses incurred by the State 
after the end of fiscal year 2004 in connection with oper-
ation of the pool; 
the Secretary shall provide, from the funds appropriated under 
subsection (c)(2) and allotted to the State under paragraph 
(2), a grant of up to 50 percent of the losses incurred by 
the State in connection with the operation of the pool. 
"(2) ALLOTMENT.—The amounts appropriated under sub-
section (c)(2) for a fiscal year shall be made available to the 
States in accordance with a formula that is based upon the 
number of uninsured individuals in the States. 
"(c) FUNDING.—Out of any money in the Treasury of the United 
States not otherwise appropriated, there are authorized and 
appropriated— 
"(1) $20,000,000 for fiscal year 2003 to carry out subsection 
(a); and 
"(2) $40,000,000 for each of fiscal years 2003 and 2004 
to carry out subsection (b). 
Funds appropriated under this subsection for a fiscal year shall 
remain available for obligation through the end of the following 
fiscal year. Nothing in this section shall be construed as providing 
a State with an entitlement to a grant under this section. 
"(d) 
QUALIFIED HIGH RISK POOL AND STATE DEFINED.—For 
purposes of this section, the term 'qualified high risk pool' has 
the meaning given such term in section 2744(c)(2) and the term 
'State' means any of the 50 States and the District of Columbia.". 
(c) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 31, United 
States Code, is amended by inserting before the period ", or 
from section 35 of such Code". 
(2) The table of sections for subpart C of part IV of chapter 
1 of the Internal Revenue Code of 1986 is amended by striking 
the last item and inserting the following new items: 
"Sec. 35. Health insurance costs of eligible individuals. 
"Sec. 36. Overpayments of tax.". 
26 u s e 35 note. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to tsixable years 
beginning after December 31, 2001. 
(2) STATE HIGH RISK POOLS.—The amendment made by 
subsection (b) shall take effect on the date of the enactment 
of this Act. 
SEC, 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE 
COSTS OF ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Chapter 77 of the Internal Revenue Code 
of 1986 (relating to miscellaneous provisions) is amended by adding 
at the end the following new section: 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 961 
"SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE 26 USC 7527. 
COSTS OF ELIGIBLE INDIVIDUALS. 
"(a) GENERAL RULE.—Not later than August 1, 2003, the Sec- Deadline, 
retary shall establish a program for making pa5mrients on behalf 
of certified individuals to providers of qualified health insurance 
(as defined in section 35(e)) for such individuals. 
"(b) LIMITATION ON ADVANCE PAYMENTS DURING ANY TAXABLE 
YEAR.—The Secretary may make payments under subsection (a) 
only to the extent that the total amount of such payments made 
on behalf of any individual during the taxable year does not exceed 
65 percent of the amount paid by the taxpayer for coverage of 
the taxpayer and qualifying family members under qualified health 
insurance for eligible coverage months beginning in the taxable 
year. 
"(c) CERTIFIED INDIVIDUAL.—^For purposes of this section, the 
term 'certified individual' means any individual for whom a qualified 
health insurance costs credit eligibility certificate is in effect. 
"(d) QUALIFIED HEALTH INSURANCE COSTS CREDIT ELIGIBILITY 
CERTIFICATE.—For purposes of this section, the term 'qualified 
health insurance costs credit eligibility certificate' means any writ-
ten statement that an individual is an eligible individual (as defined 
in section 35(c)) if such statement provides such information as 
the Secretary may require for purposes of this section and— 
"(1) in the case of an eligible TAA recipient (as defined 
in section 35(c)(2)) or an eligible alternative TAA recipient 
(as defined in section 35(c)(3)), is certified by the Secretary 
of Labor (or by any other person or entity designated by the 
Secretary), or 
"(2) in the case of an eligible PBGC pension recipient 
(as defined in section 35(c)(4)), is certified by the Pension Ben-
efit Guaranty Corporation (or by any other person or entity 
designated by the Secretary).". 
(b) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF 
CARRYING OUT A PROGRAM FOR ADVANCE PAYMENT OF CREDIT FOR 
HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.— 
(1) IN GENERAL.—Subsection (1) of section 6103 of such 26USC6103. 
Code (relating to disclosure of returns and return information 
for purposes other than tax administration) is amended by 
adding at the end the following new paragraph: 
"(18) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES 
OF CARRYING OUT A PROGRAM FOR ADVANCE PAYMENT OF CREDIT 
FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.—^THE 
Secretary may disclose to providers of health insurance for 
any certified individual (as defined in section 7527(c)) return 
information with respect to such certified individual only to 
the extent necessary to carry out the program established by 
section 7527 (relating to advance payment of credit for health 
insurance costs of eligible individuals).". 
(2) PROCEDURES AND RECORDKEEPING RELATED TO DISCLO-
SURES.—Subsection (p) of such section is amended— 
(A) in paragraph (3)(A) by striking "or (17)" and 
inserting "(17), or (18)", and 
(B) in paragraph (4) by inserting "or (17)" after "any 
other person described in subsection (1)(16)" each place 
it appears. 
(3) UNAUTHORIZED INSPECTION OF RETURNS OR RETURN 
INFORMATION.—Section 7213A(a)(l)(B) of such Code is amended 
26 USC 7213A. 
116 STAT. 962 
PUBLIC LAW 107-210—AUG. 6, 2002 
by striking "section 6103(n)" and inserting "subsection (1)(18) 
or (n) of section 6103". 
(c) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III of subchapter A 
of chapter 61 of the Internal Revenue Code of 1986 (relating 
to information concerning transactions with other persons) is 
amended by inserting after section 6050S the following new 
section: 
26 use 6050T. 
"SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE 
COSTS OF ELIGIBLE INDIVIDUALS. 
"(a) REQUIREMENT OF REPORTING.—^Every person who is enti-
tled to receive payments for any month of any calendar year under 
section 7527 (relating to advance payment of credit for health 
insurance costs of eligible individuals) with respect to any certified 
individual (as defined in section 7527(c)) shall, at such time as 
the Secretary may prescribe, make the return described in sub-
section (b) with respect to each such individual. 
"(b) FORM AND MANNER OF RETURNS.—^A return is described 
in this subsection if such return— 
"(1) is in such form as the Secretary may prescribe, and 
"(2) contains— 
"(A) the name, address, and TIN of each individual 
referred to in subsection (a), 
"(B) the number of months for which amounts were 
entitled to be received with respect to such individual under 
section 7527 (relating to advance payment of credit for 
health insurance costs of eligible individuals), 
"(C) the amount entitled to be received for each such 
month, and 
"(D) such other information as the Secretary may pre-
scribe. 
"(c) STATEMENTS TO BE FURNISHED TO INDIVIDUALS WITH 
RESPECT TO WHOM INFORMATION IS REQUIRED.—^Every person 
required to make a return under subsection (a) shall furnish to 
each individual whose name is required to be set fortii in such 
return a written statement showing— 
"(1) the name and address of the person required to make 
such return and the phone number of the information contact 
for such person, and 
"(2) the information required to be shown on the return 
with respect to such individual. 
Deadline. 
The written statement required under the preceding sentence shall 
be furnished on or before January 31 of the year following the 
calendar year for which the return under subsection (a) is required 
to be made.". 
(2) ASSESSABLE PENALTIES.— 
26 use 6724. 
(A) Subparagraph (B) of section 6724(d)( 1) of such Code 
(relating to definitions) is amended by redesignating 
clauses (xi) through (xvii) as clauses (xii) through (xviii), 
respectively, and by inserting after clause (x) the following 
new clause: 
"(xi) section 6050T (relating to returns relating 
to credit for health insurance costs of eligible individ-
uals),". 
(B) Paragraph (2) of section 6724(d) of such Code is 
amended by striking "or" at the end of subparagraph (Z), 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 963 
by striking the period at the end of subparagraph (AA) 
and inserting ", or", and by adding after subparagraph 
(AA) the following new subparagraph: 
"(BB) section 6050T (relating to returns relating to 
credit for health insurance costs of eligible individuals).". 
(d) CLERICAL AMENDMENTS.— 
(1) ADVANCE PAYMENT.—The table of sections for chapter 
77 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new item: 
"Sec. 7527. Advance payment of credit lor health insurance costs of eUgible 
individuals.". 
(2) INFORMATION REPORTING.—The table of sections for sub-
part B of part III of subchapter A of chapter 61 of such Code 
is amended by inserting after the item relating to section 6050S 
the following new item: 
"Sec. 6050T. Returns relating to credit for health insurance costs of eligible 
individuals.". 
(e) EFFECTIVE DATE.—The amendments made by this section 26USC6050T 
shall take effect on the date of the enactment of this Act. 
note. 
SEC. 203. HEALTH INSURANCE ASSISTANCE FOR ELIGIBLE INDIVID. 
UALS. 
(a) ELIGIBILITY FOR GRANTS.—Section 173(a) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended— 
(1) in paragraph (2), by striking "and" at the end; 
(2) in paragraph (3), by striking the period and inserting 
"; and"; and 
(3) by adding at the end the following: 
"(4) from funds appropriated under section 174(c)— 
"(A) to a State or entity (as defined in section 
173(c)(1)(B)) to carry out subsection (f), including providing 
assistance to eligible individuals; and 
"(B) to a State or entity (as so defined) to carry out 
subsection (g), including providing assistance to eligible 
individuals.". 
(b) USE OF FUNDS FOR HEALTH INSURANCE COVERAGE.—Section 
173 of the Workforce Investment Act of 1998 (29 U.S.C. 2918) 
is amended by adding at the end the following: 
"(f) HEALTH INSURANCE COVERAGE ASSISTANCE FOR ELIGIBLE 
INDIVIDUALS.— 
"(1) IN GENERAL.—Funds made available to a State or 
entity under paragraph (4)(A) of subsection (a) may be used 
by the State or entity for the following: 
"(A) HEALTH INSURANCE COVERAGE.—To assist an 
eligible individual and such individual's qualifying family 
members in enrolling in qualified health insurance. 
"(B) ADMINISTRATIVE AND START-UP EXPENSES.—TO pay 
the administrative expenses related to the enrollment of 
eligible individuals and such individuals' qualifying family 
members in qualified health insurance, including— 
"(i) eligibility verification activities; 
"(ii) the notification of eligible individuals of avail-
able qualified health insurance options; 
"(iii) processing qualified health insurance costs 
credit eligibility certificates provided for under section 
7527 of the Internal Revenue Code of 1986; 
116 STAT. 964 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(iv) providing assistance to eligible individuals 
in enrolling in qualified health insurance; 
"(v) the development or installation of necessary 
data management systems; and 
"(vi) any other expenses determined appropriate 
by the Secretary, including start-up costs and on going 
administrative expenses to carry out clauses (iv) 
through (ix) of paragraph (2)(A). 
"(2) QUALIFIED HEALTH INSURANCE.—For purposes of this 
subsection and subsection (g)— 
"(A) IN GENERAL.—The term 'qualified health insur-
ance' means any of the following: 
"(i) Coverage under a COBRA continuation provi-
sion (as defined in section 733(d)(1) of the Employee 
Retirement Income Security Act of 1974). 
"(ii) State-based continuation coverage provided by 
the State under a State law that requires such cov-
erage. 
"(iii) Coverage offered through a qualified State 
high risk pool (as defined in section 2744(c)(2) of the 
Public Health Service Act). 
"(iv) Coverage under a health insurance program 
offered for State employees. 
"(v) Coverage under a State-based health insur-
ance program that is comparable to the health insur-
ance program offered for State employees. 
"(vi) Coverage through an arrangement entered 
into by a State and— 
"(I) a group health plan (including such a plan 
which is a multiemployer plan as defined in section 
3(37) of the Employee Retirement Income Security 
Act of 1974), 
"(II) an issuer of health insurance coverage, 
"(III) an administrator, or 
"(IV) an employer. 
"(vii) Coverage offered through a State arrange-
ment with a private sector health care coverage pur-
chasing pool. 
"(viii) Coverage under a State-operated health plan 
that does not receive any Federal financial participa-
tion. 
"(ix) Coverage under a group health plan that is 
available through the employment of the eligible 
individual's spouse. 
"(x) In the case of any eligible individual and such 
individual's qualifying family members, coverage under 
individual health insurance if the eligible individual 
was covered under individual health insurance during 
the entire 30-day period that ends on the date that 
such individual became separated fi*om the employ-
ment which qualified such individual for— 
"(I) in the case of an eligible TAA recipient, 
the allowance described in section 35(c)(2) of the 
Internal Revenue Code of 1986, 
"(II) in the case of an eligible alternative TAA 
recipient, 
the 
benefit 
described 
in 
section 
35(c)(3)(B) of such Code, or 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 965 
"(III) in the case of any eligible PBGC pension 
recipient, 
the 
benefit 
described 
in 
section 
35(c)(4)(B) of such Code. 
For purposes of this clause, the term 'individual health 
insurance' means any insurance which constitutes 
medical care offered to individuals other than in 
connection with a group health plan and does not 
include Federal- or State-based health insurance cov-
erage. 
"(B) REQUIREMENTS FOR STATE-BASED COVERAGE.— 
"(i) IN GENERAL.—The term 'qualified health insur-
ance' does not include any coverage described in clauses 
(ii) through (viii) of subparagraph (A) unless the State 
involved has elected to have such coverage treated 
as qualified health insurance under this paragraph 
and such coverage meets the following requirements: 
"(I) GUARANTEED ISSUE.—Each qualifying indi-
vidual is guaranteed enrollment if the individual 
pays the premium for enrollment or provides a 
qualified health insurance costs credit eligibility 
certificate described in section 7527 of the Internal 
Revenue Code of 1986 and pays the remainder 
of such premium. 
"(II) No IMPOSITION OF PREEXISTING CONDITION 
EXCLUSION.—No pre-existing condition limitations 
are imposed with respect to any qualifying indi-
vidual. 
"(Ill) 
NONDISCRIMINATORY 
PREMIUM.—The 
total premium (as determined without regard to 
any subsidies) with respect to a qualif5dng indi-
vidual may not be greater than the total premium 
(as so determined) for a similarly situated indi-
vidual who is not a qualifying individual. 
"(IV) SAME BENEFITS.—Benefits under the cov-
erage are the same as (or substantially similar 
to) the benefits provided to similarly situated 
individuals who are not qualif5dng individuals, 
"(ii) QUALIFYING INDIVIDUAL.—For purposes of this 
subparagraph, the term 'qualifying individual' means— 
"(I) an eligible individual for whom, as of the 
date on which the individual seeks to enroll in 
clauses (ii) through (viii) of subparagraph (A), the 
aggregate of the periods of creditable coverage (as 
defined in section 9801(c) of the Internal Revenue 
Code of 1986) is 3 months or longer and who, 
with respect to any month, meets the requirements 
of clauses (iii) and (iv) of section 35(b)(1)(A) of 
such Code; and 
"(II) the qualifying family members of such 
eligible individual. 
"(C) EXCEPTION.—^The term 'qualified health insurance' 
shall not include— 
"(i) a flexible spending or similar arrangement, 
and 
"(ii) any insurance if substantially all of its cov-
erage is of excepted benefits described in section 733(c) 
116 STAT. 966 
PUBLIC LAW 107-210—AUG. 6, 2002 
Deadline. 
of the Employee Retirement Income Security Act of 
1974. 
"(3) AVAILABILITY OF FUNDS.— 
"(A) EXPEDITED PROCEDURES.—With respect to applica-
tions submitted by States or entities for grants under this 
subsection, the Secretary shall— 
"(i) not later than 15 days after the date on which 
the Secretary receives a completed application from 
a State or entity, notify the State or entity of the 
determination of the Secretary with respect to the 
approval or disapproval of such application; 
"(ii) in the case of an application of a State or 
other entity that is disapproved by the Secretary, pro-
vide technical assistance, at the request of the State 
or entity, in a timely manner to enable the State 
or entity to submit an approved application; and 
"(iii) develop procedures to expedite the provision 
of funds to States and entities with approved applica-
tions. 
"(B) AVAILABILITY AND DISTRIBUTION OF FUNDS.—The 
Secretary shall ensure that funds made available under 
section 174(c)(1)(A) to carry out subsection (a)(4)(A) are 
available to States and entities throughout the period 
described in section 174(c)(2)(A). 
"(4) ELIGIBLE INDIVIDUAL DEFINED.—For purposes of this 
subsection and subsection (g), the term 'eligible individual' 
means— 
"(A) an eligible TAA recipient (as defined in section 
35(c)(2) of the Internal Revenue Code of 1986), 
"(B) an eligible alternative TAA recipient (as defined 
in section 35(c)(3) of the Internal Revenue Code of 1986), 
and 
"(C) an eligible PBGC pension recipient (as defined 
in section 35(c)(4) of the Internal Revenue Code of 1986), 
who, as of the first day of the month, does not have other 
specified coverage and is not imprisoned under Federal, State, 
or local authority. 
"(5) QUALIFYING FAMILY MEMBER DEFINED.—For purposes 
of this subsection and subsection (g)— 
"(A) IN GENERAL.—The term 'qualifying family member' 
means— 
"(i) the eligible individual's spouse, and 
"(ii) any dependent of the eligible individual with 
respect to whom the individual is entitled to a deduc-
tion under section 151(c) of the Internal Revenue Code 
of 1986. 
Such term does not include any individual who has other 
specified coverage. 
"(B) SPECIAL DEPENDENCY TEST IN CASE OF DIVORCED 
PARENTS, ETC.—If paragraph (2) or (4) of section 152(e) 
of such Code applies to any child with respect to any 
calendar year, in the case of any taxable year beginning 
in such calendar year, such child shall be treated as 
described in subparagraph (A)(ii) with respect to the custo-
dial parent (within the meaning of section 152(e)(1) of 
such Code) and not with respect to the noncustodial parent. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 967 
"(6) STATE.—For purposes of this subsection and subsection 
(g), the term 'State' includes an entity as defined in subsection 
(c)(1)(B). 
"(7) OTHER SPECIFIED COVERAGE.—For purposes of this sub-
section, an individual has other specified coverage for any 
month if, as of the first day of such month— 
"(A) SUBSIDIZED COVERAGE.— 
"(i) IN GENERAL.—Such individual is covered under 
any insurance which constitutes medical care (except 
insurance substantially all of the coverage of which 
is of excepted benefits described in section 9832(c) of 
the Internal Revenue Code of 1986) under any health 
plan maintained by any employer (or former employer) 
of the taxpayer or the taxpayer's spouse and at least 
50 percent of the cost of such coverage (determined 
under section 4980B of such Code) is paid or incurred 
by the employer. 
"(ii) ELIGIBLE ALTERNATIVE TAA RECIPIENTS.—In 
the case of an eligible alternative TAA recipient (as 
defined in section 35(c)(3) of the Internal Revenue Code 
of 1986), such individual is either— 
"(I) eligible for coverage under any qualified 
health insurance (other than insurance described 
in clause (i), (ii), or (vi) of paragraph (2)(A)) under 
which at least 50 percent of the cost of coverage 
(determined under section 4980B(f)(4) of such 
Code) is paid or incurred by an employer (or former 
employer) of the taxpayer or the taxpayer's spouse, 
or 
"(II) covered under any such qualified health 
insurance under which any portion of the cost 
of coverage (as so determined) is paid or incurred 
by an employer (or former employer) of the tax-
payer or the taxpayer's spouse, 
"(iii) TREATMENT OF CAFETERIA PLANS.—For pur-
poses of clauses (i) and (ii), the cost of coverage shall 
be treated as paid or incurred by an employer to the 
extent the coverage is in lieu of a right to receive 
cash or other qualified benefits under a cafeteria plan 
(as defined in section 125(d) of the Internal Revenue 
Code of 1986). 
"(B) 
COVERAGE 
UNDER 
MEDICARE, 
MEDICAID, 
OR 
SCHIP.—Such individual— 
"(i) is entitled to benefits under part A of title 
XVIII of the Social Security Act or is enrolled under 
part B of such title, or 
"(ii) is enrolled in the program under title XIX 
or XXI of such Act (other than under section 1928 
of such Act). 
"(C) CERTAIN OTHER COVERAGE.—Such individual— 
"(i) is enrolled in a health benefits plan under 
chapter 89 of title 5, United States Code, or 
"(ii) is entitled to receive benefits under chapter 
55 of title 10, United States Code. 
"(g) INTERIM HEALTH INSURANCE COVERAGE AND OTHER ASSIST-
ANCE.— 
116 STAT. 968 
PUBLIC LAW 107-210—AUG. 6, 2002 
Deadline. 
"(1) IN GENERAL.—Funds made available to a State or 
entity under paragraph (4)(B) of subsection (a) may be used 
by the State or entity to provide assistance and support services 
to eligible individuals, including health care coverage to the 
extent provided under subsection (f)(1)(A), transportation, child 
care, dependent care, and income assistance. 
"(2) INCOME SUPPORT.—With respect to any income assist-
ance provided to an eligible individual with such funds, such 
assistance shall supplement and not supplant other income 
support or assistance provided under chapter 2 of title II of 
the Trade Act of 1974 (19 U.S.C. 2271 et seq.) (as in effect 
on the day before the effective date of the Trade Act of 2002) 
or the unemployment compensation laws of the State where 
the eligible individual resides. 
"(3) HEALTH INSURANCE COVERAGE.—With respect to any 
assistance provided to an eligible individual with such funds 
in enrolling in qualified health insurance, the following rules 
shall apply: 
"(A) The State or entity may provide assistance in 
obtaining such coverage to the eligible individual and to 
such individual's qualifying family members. 
"(B) Such assistance shall supplement and may not 
supplant any other State or local funds used to provide 
health care coverage and may not be included in deter-
mining the amount of non-Federal contributions required 
under any program. 
"(4) AVAILABILITY OF FUNDS.— 
"(A) EXPEDITED PROCEDURES.—With respect to applica-
tions submitted by States or entities for grants under this 
subsection, the Secretary shall— 
"(i) not later than 15 days after the date on which 
the Secretary receives a completed application from 
a State or entity, notify the State or entity of the 
determination of the Secretary with respect to the 
approval or disapproval of such application; 
"(ii) in the case of an application of a State or 
entity that is disapproved by the Secretary, provide 
technical assistance, at the request of the State or 
entity, in a timely manner to enable the State or 
entity to submit an approved application; and 
"(iii) develop procedures to expedite the provision 
of funds to States and entities with approved applica-
tions. 
"(B) AVAILABILITY AND DISTRIBUTION OF FUNDS.—The 
Secretary shall ensure that funds made available under 
section 174(c)(1)(B) to carry out subsection (a)(4)(B) are 
available to States and entities throughout the period 
described in section 174(c)(2)(B). 
"(5) 
INCLUSION OF CERTAIN INDIVIDUALS AS ELIGIBLE 
INDIVIDUALS.—For purposes of this subsection, the term 'eligible 
individual' includes an individual who is a member of a group 
of workers certified after April 1, 2002, under chapter 2 of 
title II of the Trade Act of 1974 (as in effect on the day 
before the effective date of the Trade Act of 2002) and is 
participating in the trade adjustment allowance program under 
such chapter (as so in effect) or who would be determined 
to be participating in such program under such chapter (as 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 969 
so in effect) if such chapter were appUed without regard to 
section 231(a)(3)(B) of the Trade Act of 1974 (as so in effect).". 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 174 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended 
by adding at the end the following: 
"(c) ASSISTANCE FOR ELIGIBLE WORKERS.— 
"(1) AUTHORIZATION AND APPROPRIATION FOR FISCAL YEAR 
2002.—There 
are 
authorized 
to be 
appropriated and 
appropriated— 
"(A) to carry out subsection (a)(4)(A) of section 173, 
$10,000,000 for fiscal year 2002; and 
"(B) to carry out subsection (a)(4)(B) of section 173, 
$50,000,000 for fiscal year 2002. 
"(2) AUTHORIZATION OF APPROPRIATIONS FOR SUBSEQUENT 
FISCAL YEARS.—There are authorized to be appropriated— 
"(A) to carry out subsection (a)(4)(A) of section 173, 
$60,000,000 for each of fiscal years 2003 through 2007; 
and 
"(B) to carry out subsection (a)(4)(B) of section 173— 
"(i) $100,000,000 for fiscal year 2003; and 
"(ii) $50,000,000 for fiscal year 2004. 
"(3) AVAILABILITY OF FUNDS.—Funds appropriated pursuant 
to— 
"(A) paragraphs (1)(A) and (2)(A) for each fiscal year 
shall, notwithstanding section 189(g), remain available for 
obligation during the pendency of any outstanding claim 
under the Trade Act of 1974, as amended by the Trade 
Act of 2002; and 
"(B) paragraph (1)(B) and (2)(B), for each fiscal year 
shall, notwithstanding section 189(g), remain available 
during the period that begins on the date of enactment 
of the Trade Act of 2002 and ends on September 30, 2004.". 
(d) CONFORMING AMENDMENT.—Section 132(a)(2)(A) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is 
amended by inserting ", other than under subsection (a)(4), (f), 
and (g)" after "grants". 
(e) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR 
CERTAIN INDIVIDUALS.— 
(1) ERISA AMENDMENTS.—Section 605 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1165) is 
amended— 
(A) by inserting "(a) IN GENERAL.—" before "For pur-
poses of this part"; and 
(B) by adding at the end the following: 
"(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR 
CERTAIN INDIVIDUALS.— 
"(1) IN GENERAL.—In the case of a nonelecting TAA-eligible Deadline. 
individual and notwithstanding subsection (a), such individual 
may elect continuation coverage under this part during the 
60-day period that begins on the first day of the month in 
which the individual becomes a TAA-eligible individual, but 
only if such election is made not later than 6 months after 
the date of the TAA-related loss of coverage. 
"(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK.—Any 
continuation coverage elected by a TAA-eligible individual 
under paragraph (1) shall commence at the beginning of the 
116 STAT. 970 
PUBLIC LAW 107-210—AUG. 6, 2002 
60-day election period described in such paragraph and shall 
not include any period prior to such 60-day election period. 
"(3) PREEXISTING CONDITIONS.—With respect to an indi-
vidual who elects continuation coverage pursuant to paragraph 
(1), the period— 
"(A) beginning on the date of the TAA-related loss 
of coverage, and 
"(B) ending on the first day of the 60-day election 
period described in paragraph (1), 
shall be disregarded for purposes of determining the 63-day 
periods referred to in section 701(c)(2), section 2701(c)(2) of 
the Public Health Service Act, and section 9801(c)(2) of the 
Internal Revenue Code of 1986. 
"(4) DEFINITIONS.—For purposes of this subsection: 
"(A) NONELECTING TAA-ELIGIBLE INDIVIDUAL.—The 
term 'nonelecting TAA-eligible individual' means a TAA-
eligible individual who— 
"(i) has a TAA-related loss of coverage; and 
"(ii) did not elect continuation coverage under this 
part during the TAA-related election period. 
"(B) TAA-ELIGIBLE INDIVIDUAL.—The term 
'TAA-
eligible individual' means— 
"(i) an eligible TAA recipient (as defined in para-
graph (2) of section 35(c) of the Internal Revenue Code 
of 1986), and 
"(ii) an eligible alternative TAA recipient (as 
defined in paragraph (3) of such section). 
"(C) TAA-RELATED ELECTION PERIOD.—The term TAA-
related election period' means, with respect to a TAA-
related loss of coverage, the 60-day election period under 
this part which is a direct consequence of such loss. 
"(D) TAA-RELATED LOSS OF COVERAGE.—The term 
TAA-related loss of coverage' means, with respect to an 
individual whose separation from employment gives rise 
to being an TAA-eligible individual, the loss of health bene-
fits coverage associated with such separation.". 
(2) PHSA AMENDMENTS.—Section 2205 of the Pubhc Health 
Service Act (42 U.S.C. 300bb-5) is amended— 
(A) by inserting "(a) IN GENERAL.—" before "For pur-
poses of this title"; and 
(B) by adding at the end the following: 
"(b) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD FOR 
CERTAIN INDIVIDUALS.— 
Deadline. 
"(1) IN GENERAL.—In the case of a nonelecting TAA-eligible 
individual and notwithstanding subsection (a), such individual 
may elect continuation coverage under this title during the 
60-day period that begins on the first day of the month in 
which the individual becomes a TAA-eligible individual, but 
only if such election is made not later than 6 months after 
the date of the TAA-related loss of coverage. 
"(2) COMMENCEMENT OF COVERAGE; NO REACH-BACK.—Any 
continuation coverage elected by a TAA-eligible individual 
under paragraph (1) shall commence at the beginning of the 
60-day election period described in such paragraph and shall 
not include any period prior to such 60-day election period. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 971 
"(3) PREEXISTING CONDITIONS.—With respect to an indi-
vidual who elects continuation coverage pursuant to paragraph 
(1), the period— 
"(A) beginning on the date of the TAA-related loss 
of coverage, and 
"(B) ending on the first day of the 60-day election 
period described in paragraph (1), 
shall be disregarded for purposes of determining the 63-day 
periods referred to in section 2701(c)(2), section 701(c)(2) of 
the Employee Retirement Income Security Act of 1974, and 
section 9801(c)(2) of the Internal Revenue Code of 1986. 
"(4) DEFINITIONS.—For purposes of this subsection: 
"(A) 
NONELECTING 
TAA-ELIGIBLE 
INDIVIDUAL.—The 
term 'nonelecting TAA-eligible individual' means a TAA-
eligible individual who— 
"(i) has a TAA-related loss of coverage; and 
"(ii) did not elect continuation coverage under this 
part during the TAA-related election period. 
"(B) 
TAA-ELIGIBLE 
INDIVIDUAL.—The 
term 
'TAA-
eligible individual' means— 
"(i) an eligible TAA recipient (as defined in para-
graph (2) of section 35(c) of the Internal Revenue Code 
of 1986), and 
"(ii) an eligible alternative TAA recipient (as 
defined in paragraph (3) of such section). 
"(C) TAA-RELATED ELECTION PERIOD.—The term TAA-
related election period' means, with respect to a TAA-
related loss of coverage, the 60-day election period under 
this part which is a direct consequence of such loss. 
"(D) TAA-RELATED LOSS OF COVERAGE.—The term 
TAA-related loss of coverage' means, with respect to an 
individual whose separation from employment gives rise 
to being an TAA-eligible individual, the loss of health bene-
fits coverage associated with such separation.". 
(3) IRC AMENDMENTS.—Paragraph (5) of section 4980B(f) 
of the Internal Revenue Code of 1986 (relating to election) 
is amended by adding at the end the following: 
"(C) TEMPORARY EXTENSION OF COBRA ELECTION PERIOD 
FOR CERTAIN INDIVIDUALS.— 
"(i) IN GENERAL.—In the case of a nonelecting TAA-
eligible individual and notwithstanding subparagraph 
(A), such individual may elect continuation coverage 
under this subsection during the 60-day period that 
begins on the first day of the month in which the 
individual becomes a TAA-eligible individual, but only 
if such election is made not later than 6 months after 
the date of the TAA-related loss of coverage. 
"(ii) 
COMMENCEMENT OF COVERAGE; NO REACH-
BACK.—Any continuation coverage elected by a TAA-
eligible individual under clause (i) shall commence at 
the beginning of the 60-day election period described 
in such paragraph and shall not include any period 
prior to such 60-day election period. 
"(iii) PREEXISTING CONDITIONS.—With respect to 
an individual who elects continuation coverage pursu-
ant to clause (i), the period— 
26 u s e 4980B. 
Deadline. 
116 STAT. 972 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(I) beginning on the date of the TAA-related 
loss of coverage, and 
"(11) ending on the first day of the 60-day 
election period described in clause (i), 
shall be disregarded for purposes of determining the 
63-day periods referred to in section 9801(c)(2), section 
701(c)(2) of the Employee Retirement Income Security 
Act of 1974, and section 2701(c)(2) of the Pubhc Health 
Service Act. 
"(iv) DEFINITIONS.—For purposes of this sub-
section: 
"(I) NONELECTING TAA-ELIGIBLE INDIVIDUAL.— 
The term 'nonelecting TAA-eligible individual' 
means a TAA-eligible individual who has a TAA-
related loss of coverage and did not elect continu-
ation coverage under this subsection during the 
TAA-related election period. 
"(II) TAA-ELIGIBLE INDIVIDUAL.—The term 
TAA-eligible individual' means an eligible TAA 
recipient (as defined in paragraph (2) of section 
35(c)) and an eligible alternative TAA recipient 
(as defined in paragraph (3) of such section). 
"(Ill) TAA-RELATED ELECTION PERIOD.—The 
term 'TAA-related election period' means, with 
respect to a TAA-related loss of coverage, the 60-
day election period under this subsection which 
is a direct consequence of such loss. 
"(IV) TAA-RELATED LOSS OF COVERAGE.—The 
term TAA-related loss of coverage' means, with 
respect to an individual whose separation from 
employment gives rise to being an TAA-eligible 
individual, the loss of health benefits coverage 
associated with such separation.". 
29 use 2918 
(f) RULE OF CONSTRUCTION.—Nothing in this title (or the 
note. 
amendments made by this title), other than provisions relating 
to COBRA continuation coverage and reporting requirements, shall 
be construed as creating any new mandate on any party regarding 
health insurance coverage. 
Customs Border 
Security Act of 
2002. 
TITLE III—CUSTOMS 
REAUTHORIZATION 
19 use 1654 
SEC. 301. SHORT TITLE. 
This Act may be cited as the "Customs Border Security Act 
of 2002". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 973 
Subtitle A—United States Customs Service 
CHAPTER 1—DRUG ENFORCEMENT AND OTHER 
NONCOMMERCIAL AND COMMERCIAL OPERATIONS 
SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMER-
CIAL OPERATIONS, COMMERCIAL OPERATIONS, AND AIR 
AND MARINE INTERDICTION. 
(a) NONCOMMERCIAL OPERATIONS.—Section 301(b)(1) of the Cus-
toms Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
2075(b)(1)) is amended— 
(1) by striking subparagraph (A), and inserting the fol-
lowing: 
(2) 
lowing: 
"(A) $1,365,456,000 for fiscal year 2003."; and 
by striking subparagraph (B), and inserting the fol-
'(B) $1,399,592,400 for fiscal year 2004.". 
(b) COMMERCIAL OPERATIONS.— 
(1) IN GENERAL.—Section 301(b)(2)(A) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C. 
2075(b)(2)(A)) is amended— 
(A) by striking clause (i), and inserting the following: 
"(i) $1,642,602,000 for fiscal year 2003."; and 
(B) l3y striking clause (ii), and inserting the following: 
"(ii) $1,683,667,050 for fiscal year 2004.". 
(2) 
AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER 
SYSTEM.—Of the amount made available for each of fiscal years 
2003 and 2004 under section 301(b)(2)(A) of the Customs Proce-
dural Reform and Simplification Act of 1978 (19 U.S.C. 
2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 shall 
be available until expended for each such fiscal year for the 
development, establishment, and implementation of the Auto-
mated Commercial Environment computer system. 
(3) REPORTS.—Not later than 90 days after the date of 
the enactment of this Act, and not later than the end of each 
subsequent 90-day period, the Commissioner of Customs shall 
prepare and submit to the Committee on Ways and Means 
of the House of Representatives £md the Committee on Finance 
of the Senate a report demonstrating that the development 
and establishment of the Automated Commercial Environment 
computer system is being carried out in a cost-effective manner 
and meets the modernization requirements of title VI of the 
North American Free Trade Agreement Implementation Act. 
(c) AIR AND MARINE INTERDICTION.—Section 301(b)(3) of 
the 
Customs Procedural Reform and Simplification Act of 1978 (19 
U.S.C. 2075(b)(3)) is amended— 
(1) by striking subparagraph (A), and inserting the fol-
lowing: 
(2) 
lowing: 
"(A) $170,829,000 for fiscal year 2003."; and 
by striking subparagraph (B), and inserting the fol-
"(B) $175,099,725 for fiscal year 2004.". 
(d) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section 
301(a) of the Customs Procedural Reform and Simplification Act 
of 1978 (19 U.S.C. 2075(a)) is amended by adding at the end 
the following: 
19 u s e 2075 
note. 
Deadline. 
19 u s e 2075 
note. 
116 STAT. 974 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(3) By not later than the date on which the President submits 
to Congress the budget of the United States Government for a 
fiscal year, the Commissioner of Customs shall submit to the Com-
mittee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate the projected amount 
of funds for the succeeding fiscal year that will be necessary for 
the operations of the Customs Service as provided for in subsection 
(b).". 
SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIP-
MENT 
FOR THE UNITED 
STATES-MEXICO 
BORDER, 
UNITED STATES-CANADA BORDER, AND FLORIDA AND 
THE GULF COAST SEAPORTS. 
(a) FISCAL YEAR 2003.—Of the amounts made available for 
fiscal year 2003 under section 301(b)(1)(A) of the Customs Proce-
dural 
Reform 
and 
Simplification 
Act 
of 
1978 
(19 
U.S.C. 
2075(b)(1)(A)), as amended by section 311(a) of this Act, $90,244,000 
shall be available until expended for acquisition and other expenses 
associated with implementation and deployment of antiterrorist 
and illicit narcotics detection equipment along the United States-
Mexico border, the United States-Canada border, and Florida and 
the Gulf Coast seaports, as follows: 
(1) UNITED STATES-MEXICO BORDER.—For the United States-
Mexico border, the following: 
(A) $6,000,000 for 8 Vehicle and Container Inspection 
Systems (VACIS). 
(B) $11,200,000 for 5 mobile truck x-rays with trans-
mission and backscatter imaging. 
(C) $13,000,000 for the upgrade of 8 fixed-site truck 
x-rays from the present energy level of 450,000 electron 
volts to 1,000,000 electron volts (1-MeV). 
(D) $7,200,000 for 8 1-MeV pallet x-rays. 
(E) $1,000,000 for 200 portable contraband detectors 
(busters) to be distributed among ports where the current 
allocations are inadequate. 
(F) $600,000 for 50 contraband detection kits to be 
distributed among all southwest border ports based on 
traffic volume. 
(G) $500,000 for 25 ultrasonic container inspection 
units to be distributed among all ports receiving liquid-
filled cargo and to ports with a hazardous material inspec-
tion facility. 
(H) $2,450,000 for 7 automated targeting systems. 
(I) $360,000 for 30 rapid tire deflator systems to be 
distributed to those ports where port runners are a threat. 
(J) $480,000 for 20 portable Treasury Enforcement 
Communications Systems (TECS) terminals to be moved 
among ports as needed. 
(K) $1,000,000 for 20 remote watch surveillance camera 
systems at ports where there are suspicious activities at 
loading docks, vehicle queues, secondary inspection lanes, 
or areas where visual surveillance or observation is 
obscured. 
(L) $1,254,000 for 57 weigh-in-motion sensors to be 
distributed among the ports with the greatest volume of 
outbound traffic. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 975 
(M) $180,000 for 36 AM traffic information radio sta-
tions, with 1 station to be located at each border crossing. 
(N) $1,040,000 for 260 inbound vehicle counters to 
be installed at every inbound vehicle lane. 
(O) $950,000 for 38 spotter camera systems to counter 
the surveillance of customs inspection activities by persons 
outside the boundaries of ports where such surveillance 
activities are occurring. 
(P) $390,000 for 60 inbound commercial truck tran-
sponders to be distributed to all ports of entry. 
(Q) $1,600,000 for 40 narcotics vapor and particle 
detectors to be distributed to each border crossing. 
(R) $400,000 for license plate reader automatic tar-
geting software to be installed at each port to target 
inbound vehicles. 
(2) 
UNITED 
STATES-CANADA BORDER.—For the 
United 
States-Canada border, the following: 
(A) $3,000,000 for 4 Vehicle and Container Inspection 
Systems (VACIS). 
(B) $8,800,000 for 4 mobile truck x-rays with trans-
mission and backscatter imaging. 
(C) $3,600,000 for 4 1-MeV pallet x-rays. 
(D) $250,000 for 50 portable contraband detectors 
(busters) to be distributed among ports where the current 
allocations are inadequate. 
(E) $300,000 for 25 contraband detection kits to be 
distributed among ports based on traffic volume. 
(F) $240,000 for 10 portable Treasury Enforcement 
Communications Systems (TECS) terminals to be moved 
among ports as needed. 
(G) $400,000 for 10 narcotics vapor and particle detec-
tors to be distributed to each border crossing based on 
traffic volume. 
(3) FLORIDA AND GULF COAST SEAPORTS.—For Florida 
and 
the Gulf Coast seaports, the following: 
(A) $4,500,000 for 6 Vehicle and Container Inspection 
Systems (VACIS). 
(B) $11,800,000 for 5 mobile truck x-rays with trans-
mission and backscatter imaging. 
(C) $7,200,000 for 8 1-MeV pallet x-rays. 
(D) $250,000 for 50 portable contraband detectors 
(busters) to be distributed among ports where the current 
allocations are inadequate. 
(E) $300,000 for 25 contraband detection kits to be 
distributed among ports based on traffic volume. 
(b) FISCAL YEAR 2004.—Of the amounts made available for 
fiscal year 2004 under section 301(b)(1)(B) of the Customs Proce-
dural 
Reform 
and 
Simplification 
Act 
of 
1978 (19 
U.S.C. 
2075(b)(1)(B)), as amended by section 311(a) of this Act, $9,000,000 
shall be available until expended for the maintenance and support 
of the equipment and training of personnel to maintain and support 
the equipment described in subsection (a). 
(c) ACQUISITION OF TECHNOLOGICALLY SUPERIOR EQUIPMENT; 
TRANSFER OF FUNDS.— 
(1) IN GENERAL.—The Commissioner of Customs may use 
amounts made available for fiscal year 2003 under section 
99-194 O - 03 - 7 : QL 3 Part 2 
X 
116 STAT. 976 
PUBLIC LAW 107-210—AUG. 6, 2002 
301(b)(1)(A) of the Customs Procedural Reform and Simplifica-
tion Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by sec-
tion 311(a) of this Act, for the acquisition of equipment other 
than the equipment described in subsection (a) if such other 
equipment— 
(A)(i) is technologically superior to the equipment 
described in subsection (a); and 
(ii) will achieve at least the same results at a cost 
that is the same or less than the equipment described 
in subsection (a); or 
(B) can be obtained at a lower cost than the equipment 
described in subsection (a). 
(2) TRANSFER OF FUNDS.—Notwithstanding any other provi-
sion of this section, the Commissioner of Customs may reallo-
cate an amount not to exceed 10 percent o
f
— 
(A) the amount specified in any of subparagraphs (A) 
through (R) of subsection (a)(1) for equipment specified 
in any other of such subparagraphs (A) through (R); 
(B) the amount specified in any of subparagraphs (A) 
through (G) of subsection (a)(2) for equipment specified 
in any other of such subparagraphs (A) through (G); and 
(C) the amount specified in any of subparagraphs (A) 
through (E) of subsection (a)(3) for equipment specified 
in any other of such subparagraphs (A) through (E). 
SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS. 
As part of the annual performance plan for each of the fiscal 
years 2003 and 2004 covering each program activity set forth in 
the budget of the United States Customs Service, as required under 
section 1115 of title 31, United States Code, the Commissioner 
of Customs shall establish performance goals and performance 
indicators, and shall comply with all other requirements contained 
in paragraphs (1) through (6) of subsection (a) of such section 
with respect to each of the activities to be carried out pursuant 
to section 312. 
CHAPTER 2—CHILD CYBER-SMUGGLING CENTER OF 
THE CUSTOMS SERVICE 
SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO 
PREVENT CHILD PORNOGRAPHY/CHILD SEXUAL EXPLOI-
TATION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Customs Service $10,000,000 for fiscal 
year 2003 to carry out the program to prevent child pornography/ 
child sexual exploitation established by the Child Cyber-Smuggling 
Center of the Customs Service. 
(b) 
USE 
OF 
AMOUNTS 
FOR 
CHILD 
PORNOGRAPHY 
CYBER 
TiPLiNE.—Of the amount appropriated under subsection (a), the 
Customs Service shall provide 3.75 percent of such amount to 
the National Center for Missing and Exploited Children for the 
operation of the child pornography cyber tipline of the Center 
and for increased public awareness of the tipline. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 977 
CHAPTER 3—MISCELLANEOUS PROVISIONS 
SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED 
STATES-CANADA BORDER. 
Of the amount made available for fiscal year 2003 under para-
graphs (1) and (2)(A) of section 301(b) of the Customs Procedural 
Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)), as 
amended by section 311 of this Act, $28,300,000 shall be available 
until expended for the Customs Service to hire approximately 285 
additional Customs Service officers to address the needs of the 
offices and ports along the United States-Canada border. 
SEC. 
332. 
STUDY 
AND 
REPORT 
RELATING 
TO 
PERSONNEL 
PRACTICES 
OF 
THE 
CUSTOMS 
SERVICE. 
(a) STUDY.—The Commissioner of Customs shall conduct a 
study of current personnel practices of the Customs Service, 
including an overview of performance standards and the effect 
and impact of the collective bargaining process on drug interdiction 
efforts of the Customs Service and a comparison of duty rotation 
policies of the Customs Service and other Federal agencies that 
employ similarly situated personnel. 
(b) REPORT.—Not later than 120 days after the date of the Deadline, 
enactment of this Act, the Commissioner of Customs shall submit 
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report con-
taining the results of the study conducted under subsection (a). 
SEC. 
333. STUDY AND REPORT RELATING TO ACCOUNTING AND 
AUDITING PROCEDURES OF THE CUSTOMS SERVICE. 
(a) STUDY.—(1) The Commissioner of Customs shall conduct 
a study of actions by the Customs Service to ensure that appropriate 
training is being provided to Customs Service personnel who are 
responsible for financial auditing of importers. 
(2) In conducting the study, the Commissioner— 
(A) shall specifically identify those actions taken to comply 
with provisions of law that protect the privacy and trade secrets 
of importers, such as section 552(b) of title 5, United States 
Code, and section 1905 of title 18, United States Code; and 
(B) shall provide for public notice and comment relating 
to verification of the actions described in subparagraph (A). 
(b) REPORT.—Not later than 6 months after the date of the Deadline, 
enactment of this Act, the Commissioner of Customs shall submit 
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report con-
taining the results of the study conducted under subsection (a). 
SEC. 
334. 
ESTABLISHMENT 
AND 
IMPLEMENTATION 
OF 
COST 
19 USC 2082 
ACCOUNTING SYSTEM; REPORTS. 
note 
(a) ESTABLISHMENT AND IMPLEMENTATION.— 
(1) IN GENERAL.—Not later than September 30, 2003, the 
Commissioner of Customs shall, in accordance with the audit 
of the Customs Service's fiscal years 2000 and 1999 financial 
statements (as contained in the report of the Office of the 
Inspector General of the Department of the Treasury issued 
on February 23, 2001), establish and implement a cost 
accounting system for expenses incurred in both commercial 
and noncommercial operations of the Customs Service. 
Deadline. 
116 STAT. 978 
PUBLIC LAW 107-210—AUG. 6, 2002 
(2) ADDITIONAL REQUIREMENT.—The cost accounting system 
described in paragraph (1) shall provide for an identification 
of expenses based on the t3^e of operation, the port at which 
the operation took place, the amount of time spent on the 
operation by personnel of the Customs Service, and an identi-
fication of expenses based on any other appropriate classifica-
tion necessary to provide for an accurate and complete 
accounting of the expenses. 
(b) REPORTS.—Beginning on the date of the enactment of this 
Act and ending on the date on which the cost accounting system 
described in subsection (a) is fully implemented, the Commissioner 
of Customs shall prepare and submit to Congress on a quarterly 
basis a report on the progress of implementing the cost accounting 
system pursuant to subsection (a). 
19 use 1625 
SEC. 335. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPEC-
note. 
TIVE RULINGS. 
(a) STUDY.—The Comptroller General shall conduct a study 
on the extent to which the Office of Regulations and Rulings of 
the Customs Service has made improvements to decrease the 
amount of time to issue prospective rulings fi-om the date on which 
a request for the ruling is received by the Customs Service. 
Deadline. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate a report containing 
the results of the study conducted under subsection (a). 
(c) DEFINITION.—^In this section, the term "prospective ruling" 
means a ruling that is requested by an importer on goods that 
are proposed to be imported into the United States and that relates 
to the proper classification, valuation, or marking of such goods. 
SEC. 336. 
STUDY 
AND REPORT 
RELATING 
TO 
CUSTOMS 
USER 
FEES. 
(a) STUDY.—The Comptroller General shall conduct a study 
on the extent to which the amount of each customs user fee imposed 
under section 13031(a) of the Consolidated Omnibus Budget Rec-
onciliation Act of 1985 (19 U.S.C. 58c(a)) is commensurate with 
the level of services provided by the Customs Service relating to 
the fee so imposed. 
Deadline. 
(b) REPORT.—Not later than 120 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate a report in classified 
form containing— 
(1) the results of the study conducted under subsection 
(a); and 
(2) recommendations for the appropriate amount of the 
customs user fees if such results indicate that the fees are 
not commensurate with the level of services provided by the 
Customs Service. 
SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER 
FACILITIES. 
(a) IN GENERAL.—Section 13031(b)(9) of the Consohdated Omni-
bus Budget Reconcihation Act of 1985 (19 U.S.C. 58c(b)(9)) is 
amended as follows: 
(1) In subparagraph (A)— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 979 
(A) in the matter preceding clause (i), by striking "the 
processing of merchandise that is informally entered or 
released" and inserting "the processing of letters, docu-
ments, records, shipments, merchandise, or any other item 
that is valued at an amount that is less than $2,000 (or 
such higher amount as the Secretary of the Treasury may 
set by regulation pursuant to section 498 of the Tariff 
Act of 1930), except such items entered for transportation 
and exportation or immediate exportation"; and 
(B) by striking clause (ii), and inserting the following: 
"(ii) Subject to the provisions of subparagraph (B), 
in the case of an express consignment carrier facility 
or centralized hub facility, $.66 per individual airway 
bill or bill of lading.". 
(2) By redesignating subparagraph (B) as subparagraph 
(C) and inserting after subparagraph (A) the following: 
"(B)(i) Beginning in fiscal year 2004, the Secretary 
of the Treasury may adjust (not more than once per fiscal 
year) the amount described in subparagraph (A)(ii) to an 
amount that is not less than $.35 and not more than 
$1.00 per individual airway bill or bill of lading. The Sec-
retary shall provide notice in the Federal Register of a 
proposed adjustment under the preceding sentence and 
the reasons therefor and shall allow for public comment 
on the proposed adj\xstment. 
"(ii) Notwithstanding section 451 of the Tariff Act of 
1930, the pa3anent required by subparagraph (A)(ii) shall 
be the only pa5nnent required for reimbursement of the 
Customs Service in connection with the processing of an 
individual airway bill or bill of lading in accordance with 
such subparagraph and for providing services at express 
consignment carrier facilities or centralized hub facilities, 
except that the Customs Service may require such facilities 
to cover expenses of the Customs Service for adequate 
office space, equipment, furnishings, supplies, and security. 
"(iii)(I) The payment required by subparagraph (A)(ii) 
and clause (ii) of this subparagraph shall be paid on a 
quarterly basis by the carrier using the facility to the 
Customs Service in accordance with regulations prescribed 
by the Secretary of the Treasury. 
"(II) 50 percent of the amount of payments received 
under subparagraph (AXii) and clause (ii) of this subpara-
graph shall, in accordance with section 524 of the Tariff 
Act of 1930, be deposited in the Customs User Fee Account 
and shall be used to directly reimburse each appropriation 
for the amount paid out of that appropriation for the costs 
incurred in providing services to express consignment car-
rier facilities or centralized hub facilities. Amounts depos-
ited in accordance with the preceding sentence shall be 
available until expended for the provision of customs serv-
ices to express consignment carrier facilities or centraUzed 
hub facilities. 
"(Ill) Notwithstanding section 524 of the Tariff Act 
of 1930, the remaining 50 percent of the amount of pay-
ments received under subparagraph (A)(ii) and clause (ii) 
of this subparagraph shall be paid to the Secretary of 
\ 
116 STAT. 980 
PUBLIC LAW 107-210—AUG. 6, 2002 
the Treasury, which is in Heu of the payment of fees 
under subsection (a)(10) of this section.". 
19 use 58c note. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) take effect on October 1, 2002. 
SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM. 
Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) 
is amended by striking the second sentence and inserting the fol-
lowing: "The Secretary may, by regulation, require the electronic 
submission of information described in subsection (a) or any other 
information required to be submitted to the Customs Service sepa-
rately pursuant to this subpart.". 
SEC. 339. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS 
STAFFING. 
There are authorized to be appropriated to the Department 
of Treasury such sums as may be necessary to provide an increase 
in the annual rate of basic pay— 
(1) for all journeyman Customs inspectors and Canine 
Enforcement Officers who have completed at least one year's 
service and are receiving an annual rate of basic pay for posi-
tions at GS-9 of the General Schedule under section 5332 
of title 5, United States Code, from the annual rate of basic 
pay payable for positions at GS-9 of the General Schedule 
under such section 5332, to an annual rate of basic pay payable 
for positions at GS-11 of the General Schedule under such 
section 5332; and 
(2) for the support staff associated with the personnel 
described in subparagraph (A), at the appropriate GS level 
of the General Schedule under such section 5332. 
CHAPTER 4—ANTITERRORISM PROVISIONS 
SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN 
GOOD FAITH. 
(a) IMMUNITY.—Section 3061 of the Revised Statutes (19 U.S.C. 
482) is amended— 
(1) by striking "Any of the officers" and inserting "(a) 
Any of the officers"; and 
(2) by adding at the end the following: 
"(b) Any officer or employee of the United States conducting 
a search of a person pursuant to subsection (a) shall not be held 
liable for any civil damages as a result of such search if the 
officer or employee performed the search in good faith and used 
reasonable means while effectuating such search.". 
19 u s e 482 note. 
(b) REQUIREMENT TO POST POLICY AND PROCEDURES FOR 
Deadline. 
SEARCHES OF PASSENGERS.—Not later than 30 days after the date 
of the enactment of this Act, the Commissioner of Customs shall 
ensure that at each Customs border facility appropriate notice 
is posted that provides a summary of the policy and procedures 
of the Customs Service for searching passengers, including a state-
ment of the policy relating to the prohibition on the conduct of 
profiling of passengers based on gender, race, color, religion, or 
ethnic background. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 981 
SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, 
OR STAFFING OF THE CUSTOMS SERVICE. 
Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is 
amended— 
(1) by striking "Whenever the President" and inserting 
"(a) Whenever the President"; and 
(2) by adding at the end the following: 
"(b)(1) Notwithstanding any other provision of law, the Sec-
retary of the Treasury, when necessary to respond to a national 
emergency declared under the National Emergencies Act (50 U.S.C. 
1601 et seq.) or to a specific threat to human life or national 
interests, is authorized to take the following actions on a temporary 
basis: 
"(A) Eliminate, consolidate, or relocate any office or port 
of entry of the Customs Service. 
"(B) Modify hours of service, alter services rendered at 
any location, or reduce the number of employees at any location. 
"(C) Take any other action that may be necessary to 
respond directly to the national emergency or specific threat. 
"(2) Notwithstanding any other provision of law, the Commis-
sioner of Customs, when necessary to respond to a specific threat 
to human life or national interests, is authorized to close tempo-
rarily any Customs office or port of entry or take any other lesser 
action that may be necessary to respond to the specific threat. 
"(3) The Secretary of the Treasury or the Commissioner of Notification. 
Customs, as the case may be, shall notify the Committee on Ways Deadline. 
and Means of the House of Representatives and the Committee 
on Finance of the Senate not later than 72 hours after taking 
any action under paragraph (1) or (2).". 
SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR 
19 USC 2071 
CARGO AND OTHER IMPROVED CUSTOMS REPORTING 
note. 
PROCEDURES. 
(a) CARGO INFORMATION.— 
(1) IN GENERAL.—Subject to paragraphs (2) and (3), not 
later than 1 year after the date of enactment of this Act, 
the Secretary shall promulgate regulations providing for the 
transmission to the Customs Service, through an electronic 
data interchange system, of information pertaining to cargo 
destined for importation into the United States or exportation 
from the United States, prior to such importation or expor-
tation. 
(2) INFORMATION REQUIRED.—The information required by 
the regulations promulgated pursuant to paragraph (1) under 
the parameters set forth in paragraph (3) shall be such informa-
tion as the Secretary determines to be reasonably necessary 
to ensure aviation, maritime, and surface transportation safety 
and security pursuant to those laws enforced and administered 
by the Customs Service. 
(3) PARAMETERS.—In developing regulations pursuant to 
paragraph (1), the Secretary shall adhere to the following 
parameters: 
(A) The Secretary shall solicit comments from and 
consult with a broad range of parties likely to be affected 
by the regulations, including importers, exporters, carriers, 
customs brokers, and freight forwarders, among other 
interested parties. 
116 STAT. 982 
PUBLIC LAW 107-210—AUG. 6, 2002 
(B) In general, the requirement to provide particular 
information shall be imposed on the party most likely to 
have direct knowledge of that information. Where requiring 
information from the party with direct knowledge of that 
information is not practicable, the regulations shall take 
into account how, under ordinary commercial practices, 
information is acquired by the party on which the require-
ment is imposed, and whether and how such party is 
able to verify the information. Where information is not 
reasonably verifiable by the party on which a requirement 
is imposed, the regulations shall permit that party to 
transmit information on the basis of what it reasonably 
believes to be true. 
(C) The Secretary shall take into account the existence 
of competitive relationships among the parties on which 
requirements 
to 
provide 
particular 
information 
are 
imposed. 
(D) Where the regulations impose requirements on car-
riers of cargo, they shall take into account differences 
among different miodes of transportation, including dif-
ferences in commercial practices, operational characteris-
tics, and technological capacity to collect and transmit 
information electronically. 
(E) The regulations shall take into account the extent 
to which the technology necessary for parties to transmit 
and the Customs Service to receive and analyze data in 
a timely fashion is available. To the extent that the Sec-
retary determines that the necessary technology will not 
be widely available to particular modes of transportation 
or other affected parties until after promulgation of the 
regulations, the regulations shall provide interim require-
ments appropriate for the technology that is available at 
the time of promulgation. 
(F) The information collected pursuant to the regula-
tions shall be used exclusively for ensuring aviation, mari-
time, and surface transportation safety and security, and 
shall not be used for determining entry or for any other 
commercial enforcement purposes. 
(G) The regulations shall protect the privacy of busi-
ness proprietary and any other confidential information 
provided to the Customs Service. However, this parameter 
does not repeal, amend, or otherwise modify other provi-
sions of law relating to the public disclosure of information 
transmitted to the Customs Service. 
(H) In determining the timing for transmittal of any 
information, the Secretary • shall balance likely impact on 
flow of commerce with impact on aviation, maritime, and 
surface transportation safety and security. With respect 
to requirements that may be imposed on carriers of cargo, 
the timing for transmittal of information shall take into 
account differences among different modes of transpor-
tation, as described in subparagraph (D). 
(I) Where practicable, the regulations shall avoid 
imposing requirements that are redundant with one 
another or that are redundant with requirements in other 
provisions of law. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 983 
(J) The Secretary shall determine whether it is appro-
priate to provide transition periods between promulgation 
of the regulations and the effective date of the regulations 
and shall prescribe such transition periods in the regula-
tions, as appropriate. The Secretary may determine that 
different transition periods are appropriate for different 
classes of affected parties. 
(K) ^With respect to requirements imposed on carriers, 
the Secretary, in consultation with the Postmaster General, 
shall determine whether it is appropriate to impose the 
same or similar requirements on shipments by the United 
States Postal Service. If the Secretary determines that 
such requirements are appropriate, then they shall be set 
forth in the regulations. 
(L) Not later than 60 days prior to promulgation of Deadline. 
the regulations, the Secretary shall transmit to the 
Committees on Finance and Commerce, Science, and 
Transportation of the Senate and the Committees on Ways 
and Means and Transportation and Infrastructure of the 
House of Representatives a report setting forth— 
(i) the proposed regulations; 
(ii) an explanation of how particular requirements 
in the proposed regulations meet the needs of aviation, 
maritime, and surface transportation safety and secu-
rity; 
(iii) an explanation of how the Secretary expects 
the proposed regulations to affect the commercial prac-
tices of affected parties; and 
(iv) an explanation of how the proposed regulations 
address particular comments received from interested 
parties. 
(b) DOCUMENTATION OF WATERBORNE CARGO.—Part II of title 
IV of the Tariff Act of 1930 is amended by inserting after section 
431 the following new section: 
"SEC. 431A. DOCUMENTATION OF WATERBORNE CARGO. 
19 USC 1431a 
"(a) APPLICABILITY.—This section shall apply to all cargo to 
be exported that is moved by a vessel carrier from a port in 
the United States. 
"(b) DOCUMENTATION REQUIRED.—(1) No shipper of cargo sub-
ject to this section (including an ocean transportation intermediary 
that is a non-vessel-operating common carrier (as defined in section 
3(17)(B) of the Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B)) 
may tender or cause to be tendered to a vessel carrier cargo subject 
to this section for loading on a vessel in a United States port, 
unless such cargo is properly documented pursuant to this sub-
section. 
"(2) For the purposes of this subsection, cargo shall be consid-
ered properly documented if the shipper submits to the vessel 
carrier or its agent a complete set of shipping documents no later 
than 24 hours after the cargo is delivered to the marine terminal 
operator, but under no circumstances later than 24 hours prior 
to departure of the vessel. 
"(3) A complete set of shipping documents shall include— 
"(A) for shipments for which a shipper's export declaration 
is required, a copy of the export declaration or, if the shipper 
files such declarations electronically in the Automated Export 
116 STAT. 984 
PUBLIC LAW 107-210—AUG. 6, 2002 
System, the complete bill of lading, and the master or equiva-
lent shipping instructions, including the Internal Transaction 
Number (ITN); or 
"(B) for shipments for which a shipper's export declaration 
is not required, a shipper's export declaration exemption state-
ment and such other documents or information as the Secretary 
may by regulation prescribe. 
Regulations. 
"(4) The Secretary shall by regulation prescribe the time, 
manner, and form by which shippers shall transmit documents 
or information required under this subsection to the Customs 
Service. 
"(c) LOADING UNDOCUMENTED CARGO PROHIBITED.— 
"(1) No marine terminal operator (as defined in section 
3(14) of the Shipping Act of 1984 (46 U.S.C. App. 1702(14))) 
may load, or cause to be loaded, any cargo subject to this 
section on a vessel unless instructed by the vessel carrier 
operating the vessel that such cargo has been properly docu-
mented in accordance with this section. 
Notification. 
"(2) When cargo is booked by 1 vessel carrier to be trans-
ported on the vessel of another vessel carrier, the booking 
carrier shall notify the operator of the vessel that the cargo 
has been properly documented in accordance with this section. 
The operator of the vessel may rely on such notification in 
releasing the cargo for loading aboard the vessel. 
"(d) REPORTING OF UNDOCUMENTED CARGO.—A vessel carrier 
shall notify the Customs Service of any cargo tendered to such 
carrier that is not properly documented pursuant to this section 
and that has remained in the marine terminal for more than 
48 hours after being delivered to the marine terminal, and the 
location of the cargo in the marine terminal. For vessel carriers 
that are members of vessel sharing agreements (or any other 
arrangement whereby a carrier moves cargo on another carrier's 
vessel), the vessel carrier accepting the booking shall be responsible 
for reporting undocumented cargo, without regard to whether it 
operates the vessel on which the transportation is to be made. 
"(e) ASSESSMENT OF PENALTIES.—Whoever is found to have 
violated subsection (b) of this section shall be liable to the United 
States for civil penalties in a monetary amount up to the value 
of the cargo, or the actual cost of the transportation, whichever 
is greater. 
"(f) SEIZURE OF UNDOCUMENTED CARGO.— 
"(1) Any cargo that is not properly documented pursuant 
to this section and has remained in the marine terminal for 
more than 48 hours after being delivered to the marine terminal 
operator shall be subject to search, seizure, and forfeiture. 
"(2) The shipper of any such cargo is liable to the marine 
terminal operator and to the ocean carrier for demurrage and 
other applicable charges for any undocumented cargo which 
has been notified to or searched or seized by the Customs 
Service for the entire period the cargo remains under the order 
and direction of the Customs Service. Unless the cargo is seized 
by the Customs Service and forfeited, the marine terminal 
operator and the ocean carrier shall have a lien on the cargo 
for the amount of the demurrage and other charges. 
"(g) EFFECT ON OTHER PROVISIONS.—Nothing in this section 
shall be construed, interpreted, or applied to relieve or excuse 
any party from compliance with any obligation or requirement 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 985 
arising under any other law, regulation, or order with regard to 
the documentation or carriage of cargo.". 
(c) SECRETARY.—For purposes of this section, the term "Sec-
retary" means the Secretary of the Treasury. If, at the time the 
regulations required by subsection (a)(1) are promulgated, the Cus-
toms Service is no longer located in the Department of the Treasury, 
then the Secretary of the Treasury shall exercise the authority 
under subsection (a) jointly with the Secretary of the Department 
in which the Customs Service is located. 
SEC. 343A. SECURE SYSTEMS OF TRANSPORTATION. 
(a) JOINT TASK FORCE.—The Secretary of the Treasury shall 
establish a joint task force to evaluate, prototype, and certify secure 
systems of transportation. The joint task force shall be comprised 
of officials from the Department of Transportation and the Customs 
Service, and any other officials that the Secretary deems appro-
priate. The task force shall establish a program to evaluate and 
certify secure systems of international intermodal transport no later 
than 1 year after the date of enactment of this Act. The task 
force shall solicit and consider input from a broad range of 
interested parties. 
(b) PROGRAM REQUIREMENTS.—At a minimum the program 
referred to in subsection (a) shall require certified systems of inter-
national intermodal transport to be significantly more secure than 
existing transportation programs, and the program shall— 
(1) establish standards and a process for screening and 
evaluating cargo prior to import into or export from the United 
States; 
(2) establish standards and a process for a system of 
securing cargo and monitoring it while in transit; 
(3) establish standards and a process for allowing the 
United States Government to ensure and validate compliance 
with the program elements; and 
(4) include any other elements that the task force deems 
necessary to ensure the security and integrity of the inter-
national intermodal transport movements. 
(c) RECOGNITION OF CERTIFIED SYSTEMS.— 
(1) SECRETARY OF THE TREASURY.—-The Secretary of the 
Treasury shall recognize certified systems of intermodal trans-
port in the requirements of a national security plan for United 
States seaports, and in the provisions requiring planning to 
reopen United States ports for commerce. 
(2) COMMISSIONER OF CUSTOMS.—The Commissioner of 
Customs shall recognize certified systems of intermodal trans-
port in the evaluation of cargo risk for purposes of United 
States imports and exports. 
(d) REPORT.—Within 1 year after the program described in 
subsection (a) is implemented, the Secretary of the Treasury shall 
transmit a report to the Committees on Commerce, Science, and 
Transportation and Finance of the Senate and the Committees 
on Transportation and Infrastructure and Ways and Means of the 
House of Representatives that— 
(1) evaluates the program and its requirements; 
(2) states the Secretary's views as to whether any proce-
dure, system, or technology evaluated as part of the program 
offers a higher level of security than under existing procedures; 
19 use 2071 
note. 
19 use 2071 
note. 
Establishment. 
Deadline. 
Deadline. 
116 STAT. 986 
PUBLIC LAW 107-210—AUG. 6, 2002 
(3) states the Secretary's views as to the integrity of the 
procedures, technology, or systems evaluated as part of the 
program; and 
(4) makes a recommendation with respect to whether the 
program, or any procedure, system, or technology should be 
incorporated in a nationwide system for certified systems of 
intermodal transport. 
SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND 
E
S
T OUTBOUND MAIL. 
(a) IN GENERAL.—The Tariff Act of 1930 is amended by 
inserting after section 582 the following: 
19 u s e 1583. 
"SEC. 583. EXAMINATION OF OUTBOUND MAIL. 
"(a) EXAMINATION.— 
"(1) IN GENERAL.—For purposes of ensuring compliance 
with the Customs laws of the United States and other laws 
enforced by the Customs Service, including the provisions of 
law described in paragraph (2), a Customs officer may, subject 
to the provisions of this section, stop and search at the border, 
without a search warrant, mail of domestic origin transmitted 
for export by the United States Postal Service and foreign 
mail transiting the United States that is being imported or 
exported by the United States Postal Service. 
"(2) PROVISIONS OF LAW DESCRIBED.—The provisions of law 
described in this paragraph are the following: 
"(A) Section 5316 of title 31, United States Code 
(relating to reports on exporting and importing monetary 
instruments). 
"(B) Sections 1461, 1463, 1465, and 1466, and chapter 
110 of title 18, United States Code (relating to obscenity 
and child pornography). 
"(C) Section 1003 of the Controlled Substances Import 
and Export Act (relating to exportation of controlled sub-
stances) (21 U.S.C. 953). 
"(D) The Export Administration Act of 1979 (50 U.S.C. 
App. 2401 et seq.). 
"(E) Section 38 of the Arms Export Control Act (22 
U.S.C. 2778). 
"(F) The International Emergency Economic Powers 
Act (50 U.S.C. 1701 et seq.). 
"(b) SEARCH OF MAIL NOT SEALED AGAINST INSPECTION AND 
OTHER MAIL.—Mail not sealed against inspection under the postal 
laws and regulations of the United States, mail which bears a 
Customs declaration, and mail with respect to which the sender 
or addressee has consented in writing to search, may be searched 
by a Customs officer. 
"(c) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING 
IN EXCESS OF 16 OUNCES.— 
"(1) IN GENERAL.—Mail weighing in excess of 16 ounces sealed 
against inspection under the postal laws and regulations of the 
United States may be searched by a Customs officer, subject to 
paragraph (2), if there is reasonable cause to suspect that such 
mail contains one or more of the following: 
"(A) Monetary instruments, as defined in section 1956 of 
title 18, United States Code. 
"(B) A weapon of mass destruction, as defined in section 
2332a(b) of title 18, United States Code. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 987 
"(C) A drug or other substance listed in schedule I, II, 
III, or IV in section 202 of the Controlled Substances Act 
(21 U.S.C. 812). 
"(D) National defense and related information transmitted 
in violation of any of sections 793 through 798 of title 18, 
United States Code. 
"(E) Merchandise mailed in violation of section 1715 or 
1716 of title 18, United States Code. 
"(F) Merchandise mailed in violation of any provision of 
chapter 71 (relating to obscenity) or chapter 110 (relating to 
sexual exploitation and other abuse of children) of title 18, 
United States Code. 
"(G) Merchandise mailed in violation of the Export 
Administration Act of 1979 (50 U.S.C. App. 2401 et seq.). 
"(H) Merchandise mailed in violation of section 38 of the 
. 
Arms Export Control Act (22 U.S.C. 2778). 
"(I) Merchandise mailed in violation of the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
"(J) Merchandise mailed in violation of the Trading with 
the Enemy Act (50 U.S.C. App. 1 et seq.). 
"(K) Merchandise subject to any other law enforced by 
the Customs Service. 
"(2) LIMITATION.—No person acting under the authority 
of paragraph (1) shall read, or authorize any other person 
to read, any correspondence contained in mail sealed against 
inspection unless prior to so reading— 
"(A) a search warrant has been issued pursuant to 
rule 41 of the Federal Rules of Criminal Procedure; or 
"(B) the sender or addressee has given written 
authorization for such reading. 
"(d) SEARCH OF MAIL SEALED AGAINST INSPECTION WEIGHING 
16 OUNCES OR LESS.—Notwithstsmding any other provision of this 
section, subsection (a)(1) shall not apply to mail weighing 16 ounces 
or less sealed against inspection under the postal laws and regula-
tions of the United States.". 
(b) CERTIFICATION BY SECRETARY.—Not later than 3 months Deadline, 
after the date of enactment of this section, the Secretary of State 
19 USC 1583 
shall determine whether the application of section 583 of the Tariff 
^°^-
Act of 1930 to foreign mail transiting the United States that is 
imported or exported by the United States Postal Service is being 
handled in a manner consistent with international law and any 
international obligation of the United States. Section 583 of such 
Act shall not apply to such foreign mail unless the Secretary cer-
tifies to Congress that the application of such section 583 is con-
sistent with international law and any international obligation of 
the United States. 
(c) EFFECTIVE DATE.— 
i9 use 1583 
(1) IN GENERAL.—Except as provided in paragraph (2), this note. 
section and the amendments made by this section shall take 
effect on the date of enactment of this Act. 
(2) CERTIFICATION WITH RESPECT TO FOREIGN MAIL.—The 
provisions of section 583 of the Tariff Act of 1930 relating 
to foreign mail transiting the United States that is imported 
or exported by the United States Postal Service shall not take 
effect until the Secretary of State certifies to Congress, pursu-
ant to subsection (b), that the application of such section 583 
116 STAT. 988 
PUBLIC LAW 107-210—AUG. 6, 2002 
is consistent with international law and any international 
obligation of the United States. 
SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISH-
MENT OF CUSTOMS OPERATIONS IN NEW YORK CITY. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be appropriated 
for the reestablishment of operations of the Customs Service 
in New York, New York, such sums as may be necessary 
for fiscal year 2003. 
(2) OPERATIONS DESCRIBED.—The operations referred to in 
paragraph (1) include, but are not limited to, the following: 
(A) Operations relating to the Port Director of New 
York City, the New York Customs Management Center 
(including the Director of Field Operations), and the Special 
Agent-In-Charge for New York. 
(B) Commercial operations, including textile enforce-
ment operations and salaries and expenses o
f
— 
(i) trade specialists who determine the origin and 
value of merchandise; 
(ii) analysts who monitor the entry data into the 
United States of textiles and textile products; and 
(iii) Customs officials who work with foreign 
governments to examine textile makers and verify 
entry information. 
(b) AVAILABILITY.—^Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are authorized 
to remain available until expended. 
CHAPTER 5—TEXTILE TRANSSHIPMENT PROVISIONS 
SEC. 351. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY 
CUSTOMS SERVICE. 
(a) GAO AUDIT.—The Comptroller General of the United States 
shall conduct an audit of the system established and carried out 
by the Customs Service to monitor transshipment. 
Deadline. 
(b) REPORT.—Not later than 9 months after the date of enact-
ment of this Act, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives 
and Committee on Finance of the Senate a report that contains 
the results of the study conducted under subsection (a), including 
recommendations for improvements to the transshipment moni-
toring system if applicable. 
(c) TRANSSHIPMENT DESCRIBED.—Transshipment within the 
meaning of this section has occurred when preferential treatment 
under any provision of law has been claimed for a textile or apparel 
article on the basis of material false information concerning the 
country of origin, manufacture, processing, or assembly of the article 
or any of its components. For purposes of the preceding sentence, 
false information is material if disclosure of the true information 
would mean or would have meant that the article is or was ineligible 
for preferential treatment under the provision of law in question. 
SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANS-
SHIPMENT ENFORCEMENT OPERATIONS. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be appropriated 
for transshipment (as described in section 351(c)) enforcement 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 989 
operations, outreach, and education of the Customs Service 
$9,500,000 for fiscal year 2003. 
(2) AVAILABILITY.—Amounts appropriated pursuant to the 
authorization of appropriations under paragraph (1) are author-
ized to remain available until expended. 
(b) USE OF FUNDS.—Of the amount appropriated pursuant to 
the authorization of appropriations under subsection (a), the fol-
lowing amounts are authorized to be made available for the fol-
lowing purposes: 
(1) IMPORT SPECIALISTS.—$1,463,000 for 21 Customs import 
specialists to be assigned to selected ports for documentation 
review to support detentions and exclusions and 1 additional 
Customs import specialist assigned to the Customs head-
quarters textile program to administer the program and provide 
oversight. 
(2) INSPECTORS.—$652,080 for 10 Customs inspectors to 
be assigned to selected ports to examine targeted high-risk 
shipments. 
(3) INVESTIGATORS.—(A) $1,165,380 for 10 investigators to 
be assigned to selected ports to investigate instances of smug-
gling, quota and trade agreement circumvention, and use of 
counterfeit visas to enter inadmissible goods. 
(B) $149,603 for 1 investigator to be assigned to the Cus-
toms headquarters textile program to coordinate and ensure 
implementation of textile production verification team results 
from an investigation perspective. 
(4) INTERNATIONAL TRADE SPECIALISTS.—$226,500 for 3 
international trade specialists to be assigned to Customs head-
quarters to be dedicated to illegal textile transshipment policy 
issues, outreach, education, and other free trade agreement 
enforcement issues. 
(5) PERMANENT IMPORT SPECIALISTS FOR HONG KONG.— 
$500,000 for 2 permanent import specialist positions and 
$500,000 for 2 investigators to be assigned to Hong Kong to 
work with Hong Kong and other government authorities in 
Southeast Asia to assist such authorities in pursuing proactive 
enforcement of bilateral trade agreements. 
(6) VARIOUS PERMANENT TRADE POSITIONS.—$3,500,000 for 
the following: 
(A) 2 permanent positions to be assigned to the Cus-
toms attache office in Central America to address trade 
enforcement issues for that region. 
(B) 2 permanent positions to be assigned to the Cus-
toms attache office in South Africa to address trade enforce-
ment issues pursuant to the African Growth and Oppor-
tunity Act (title I of Pubhc Law 106-200). 
(C) 4 permanent positions to be assigned to the Cus-
toms attache office in Mexico to address the threat of 
illegal textile transshipment through Mexico and other 
related issues under the North American Free Trade Agree-
ment Act. 
(D) 2 permanent positions to be assigned to the Cus-
toms attache office in Seoul, South Korea, to address the 
trade issues in the geographic region. 
(E) 2 permanent positions to be assigned to the pro-
posed Customs attache office in New Delhi, India, to 
116 STAT. 990 
PUBLIC LAW 107-210—AUG. 6, 2002 
address the threat of illegal textile transshipment and other 
trade enforcement issues. 
(F) 2 permanent positions to be assigned to the Cus-
toms attache office in Rome, Italy, to address trade enforce-
ment issues in the geographic region, including issues 
under free trade agreements with Jordan and Israel. 
(7) ATTORNEYS.—$179,886 for 2 attorneys for the Office 
of the Chief Counsel of the Customs Service to pursue cases 
regarding illegal textile transshipment. 
(8) AUDITORS.—$510,000 for 6 Customs auditors to perform 
internal control reviews and document and record reviews of 
suspect importers. 
(9) ADDITIONAL TRAVEL FUNDS.—$250,000 for deployment 
of additional textile production verification teams to sub-Saha-
ran Africa. 
(10) TRAINING.—(A) $75,000 for training of Customs per-
sonnel. 
(B) $200,000 for training for foreign counterparts in risk 
management analytical techniques and for teaching factory 
inspection techniques, model law development, and enforcement 
techniques. 
(11) OUTREACH.—$60,000 for outreach efforts to United 
States importers. 
SEC. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPOR-
TUNITY ACT. 
Of the amount made available for fiscal year 2003 under section 
301(b)(2)(A) of the Customs Procedural Reform and Simplification 
Act of 1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section 
311(b)(1) of this Act, $1,317,000 shall be available until expended 
for the Customs Service to provide technical assistance to help 
sub-Saharan African countries develop and implement effective visa 
and anti-transshipment systems as required by the African Growth 
and Opportunity Act (title I of Public Law 106-200), as follows: 
(1) TRAVEL FUNDS.—$600,000 for import speciahsts, special 
agents, and other qualified Customs personnel to travel to 
sub-Saharan African countries to provide technical assistance 
in developing and implementing efiective visa and anti-trans-
shipment systems. 
(2) IMPORT SPECIALISTS.—$266,000 for 4 import speciahsts 
to be assigned to Customs headquarters to be dedicated to 
providing technical assistance to sub-Saharan African countries 
for developing and implementing effective visa and anti-trans-
shipment systems. 
(3) DATA RECONCILIATION ANALYSTS.—$151,000 for 2 data 
reconciliation analysts to review apparel shipments. 
(4) SPECIAL AGENTS.—$300,000 for 2 special agents to be 
assigned to Customs headquarters to be available to provide 
technical assistance to sub-Saharan African countries in the 
performance of investigations and other enforcement initiatives. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 991 
Subtitle B—Office of the United States 
Trade Representative 
SEC. 361. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—Section 141(g)(1) of the Trade Act of 1974 
(19 U.S.C. 2171(g)(1)) is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking "not 
to exceed"; 
(B) by striking clause (i), and inserting the following: 
"(i) $32,300,000 for fiscal year 2003."; and 
(C) by striking clause (ii), and inserting the following: 
"(ii) $33,108,000 for fiscal year 2004."; and 
(2) in subparagraph (B)— 
(A) in clause (i), by adding "and" at the end; 
(B) by striking clause (ii); and 
(C) by redesignating clause (iii) as clause (ii). 
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section 
141(g) of the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended 
by adding at the end the following: 
"(3) By not later than the date on which the President submits 
to Congress the budget of the United States Government for a 
fiscal year, the United States Trade Representative shall submit 
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate the projected 
amount of funds for the succeeding fiscal year that will be necessary 
for the Office to carry out its functions.". 
(c) ADDITIONAL STAFF FOR OFFICE OF ASSISTANT U.S. TRADE 
REPRESENTATIVE FOR CONGRESSIONAL AFFAIRS.— 
(1) IN GENERAL.—There is authorized to be appropriated 
such sums as may be necessary for fiscal year 2003 for the 
salaries and expenses of two additional legislative specialist 
employee positions within the Office of the Assistant United 
States Trade Representative for Congressional Affairs. 
(2) AVAILABILITY.—Amounts appropriated pursuant to the 
authorization of appropriations under paragraph (1) are author-
ized to remain available until expended. 
Subtitle C—United States International 
Trade Commission 
Deadline. 
SEC. 371. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—Section 330(e)(2)(A) of the Tariff Act of 1930 
(19 U.S.C. 1330(e)(2)(A)) is amended— 
(1) by striking clause (i), and inserting the following: 
"(i) $54,000,000 for fiscal year 2003."; and 
(2) by striking clause (ii), and inserting the following: 
"(ii) $57,240,000 for fiscal year 2004.". 
(b) SUBMISSION OF OUT-YEAR BUDGET PROJECTIONS.—Section 
330(e) of the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended 
by adding at the end the following: 
"(4) By not later than the date on which the President submits 
to Congress the budget of the United States Government for a 
fiscal year, the Commission shall submit to the Committee on 
Deadline. 
116 STAT. 992 
PUBLIC LAW 107-210—AUG. 6, 2002 
Ways and Means of the House of Representatives and the Com-
mittee on Finance of the Senate the projected amount of funds 
for the succeeding fiscal year that will be necessary for the Commis-
sion to carry out its functions.". 
Subtitle D—Other trade provisions 
Deadline. 
SEC. 381. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT 
FROM DUTY ACQUIRED ABROAD BY UNITED STATES 
RESIDENTS. 
(a) IN GENERAL.—Subheading 9804.00.65 of the Harmonized 
Tariff Schedule of the United States is amended in the article 
description column by striking "$400" and inserting "$800". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 90 days after the date of the enactment of this 
Act. 
SEC. 382. REGULATORY AUDIT PROCEDURES. 
Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) 
is amended by adding at the end the following: 
"(6)(A) If during the course of any audit concluded under 
this subsection, the Customs Service identifies overpayments 
of duties or fees or over-declarations of quantities or values 
that are within the time period and scope of the audit that 
the Customs Service has defined, then in calculating the loss 
of revenue or monetary penalties under section 592, the Cus-
toms Service shall treat the overpayments or over-declarations 
on finally liquidated entries as an offset to any underpayments 
or underdeclarations 
also identified on finally 
liquidated 
entries, if such overpayments or over-declarations were not 
made by the person being audited for the purpose of violating 
any provision of law. 
"(B) Nothing in this paragraph shall be construed to 
authorize a refund not otherwise authorized under section 520.". 
SEC. 
383. 
PAYMENT 
OF 
DUTIES 
AND 
FEES. 
Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) 
is amended to read as follows: 
"(a) DEPOSIT OF ESTIMATED DUTIES AND FEES.—Unless the 
entry is subject to a periodic payment or the merchandise is entered 
for warehouse or transportation, or under bond, the importer of 
record shall deposit with the Customs Service at the time of entry, 
or at such later time as the Secretary may prescribe by regulation 
(but not later than 10 working days after entry or release) the 
amount of duties and fees estimated to be payable on such merchan-
dise. As soon as a periodic payment module of the Automated 
Commercial Environment is developed, but no later than October 
1, 2004, a participating importer of record, or the importer's filer, 
may deposit estimated duties and fees for entries of merchandise 
no later than the 15th day of the month following the month 
in which the merchandise is entered or released, whichever comes 
first.". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 993 
DIVISION B—BIPARTISAN TRADE 
PROMOTION AUTHORITY 
TITLE XXI—TRADE PROMOTION 
AUTHORITY 
SEC. 2101. SHORT TITLE AND FINDINGS. 
(a) SHORT TITLE.—This title may be cited as the "Bipartisan 
Trade Promotion Authority Act of 2002". 
(b) FINDINGS.—^The Congress makes the following findings: 
(1) The expansion of international trade is vital to the 
national security of the United States. Trade is critical to 
the economic growth and strength of the United States and 
to its leadership in the world. Stable trading relationships 
promote security and prosperity. Trade agreements today serve 
the same purposes that security pacts played during the Cold 
War, binding nations together through a series of mutual rights 
and obligations. Leadership by the United States in inter-
national trade fosters open markets, democracy, and peace 
throughout the world. 
(2) The national security of the United States depends 
on its economic security, which in turn is founded upon a 
vibrant and growing industrial base. Trade expansion has been 
the engine of economic growth. Trade agreements maximize 
opportunities for the critical sectors and building blocks of 
the economy of the United States, such as information tech-
nology, telecommunications and other leading technologies, 
basic industries, capital equipment, medical equipment, serv-
ices, agriculture, environmental technology, and intellectual 
property. Trade will create new opportunities for the United 
States and preserve the unparalleled strength of the United 
States in economic, political, and military affairs. The United 
States, secured by expanding trade and economic opportunities, 
will meet the challenges of the twenty-first century. 
(3) Support for continued trade expansion requires that 
dispute settlement procedures under international trade agree-
ments not add to or diminish the rights and obligations provided 
in such agreements. Therefore— 
(A) the recent pattern of decisions by dispute settle-
ment panels of the WTO and the Appellate Body to impose 
obligations and restrictions on the use of antidumping, 
countervailing, and safeguard measures by WTO members 
under the Antidumping Agreement, the Agreement on Sub-
sidies and Countervailing Measures, and the Agreement 
on Safeguards has raised concerns; and 
(B) the Congress is concerned that dispute settlement 
panels of the WTO and the Appellate Body appropriately 
apply the standard of review contained in Article 17.6 
of the Antidumping Agreement, to provide deference to 
a permissible interpretation by a WTO member of provi-
sions of that Agreement, and to the evaluation by a WTO 
member of the facts where that evaluation is unbiased 
and objective and the establishment of the facts is proper. 
Bipartisan Trade 
Promotion 
Authority Act of 
2002. 
19 u s e 3801. 
116 STAT. 994 
PUBLIC LAW 107-210—AUG. 6, 2002 
19 use 3802. 
SEC. 2102. TRADE NEGOTIATING OBJECTIVES. 
(a) 
OVERALL TRADE NEGOTIATING OBJECTIVES.—The overall 
trade negotiating objectives of the United States for agreements 
subject to the provisions of section 2103 are— 
(1) to obtain more open, equitable, and reciprocal market 
access; 
(2) to obtain the reduction or elimination of barriers and 
distortions that are directly related to trade and that decrease 
market opportunities for United States exports or otherwise 
distort United States trade; 
(3) to further strengthen the system of international trading 
disciplines and procedures, including dispute settlement; 
(4) to foster economic growth, raise living standards, and 
promote full employment in the United States and to enhance 
the global economy; 
(5) to ensure that trade and environmental policies are 
mutually supportive and to seek to protect and preserve the 
environment and enhance the international means of doing 
so, while optimizing the use of the world's resources; 
(6) to promote respect for worker rights and the rights 
of children consistent with core labor standards of the ILO 
(as defined in section 2113(6)) and an understanding of the 
relationship between trade and worker rights; 
(7) to seek provisions in trade agreements under which 
parties to those agreements strive to ensure that they do not 
weaken or reduce the protections afforded in domestic environ-
mental and labor laws as an encouragement for trade; 
(8) to ensure that trade agreements afford small businesses 
equal access to international markets, equitable trade benefits, 
and expanded export market opportunities, and provide for 
the reduction or elimination of trade barriers that dispropor-
tionately impact small businesses; and 
(9) to promote universal ratification and full compliance 
with ILO Convention No. 182 Concerning the Prohibition and 
Immediate Action for the Elimination of the Worst Forms of 
Child Labor. 
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.— 
(1) TRADE BARRIERS AND DISTORTIONS.—The principal nego-
tiating objectives of the United States regarding trade barriers 
and other trade distortions are— 
(A) to expand competitive market opportunities for 
United States exports and to obtain fairer and more open 
conditions of trade by reducing or eliminating tariff and 
nontariff barriers and policies and practices of foreign 
governments directly related to trade that decrease market 
opportunities for United States exports or otherwise distort 
United States trade; and 
(B) to obtain reciprocal tariff and nontariff barrier 
elimination agreements, with particular attention to those 
tariff categories covered in section 111(b) of the Uruguay 
Round Agreements Act (19 U.S.C. 3521(b)). 
(2) TRADE IN SERVICES.—The principal negotiating objective 
of the United States regarding trade in services is to reduce 
or eliminate barriers to international trade in services, 
including regulatory and other barriers that deny national 
treatment and market access or unreasonably restrict the 
establishment or operations of service suppliers. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 995 
(3) FOREIGN INVESTMENT.—Recognizing that United States 
law on the whole provides a high level of protection for invest-
ment, consistent with or greater than the level required by 
international law, the principal negotiating objectives of the 
United States regarding foreign investment are to reduce or 
eliminate artificial or trade-distorting barriers to foreign invest-
ment, while ensuring that foreign investors in the United States 
are not accorded greater substantive rights with respect to 
investment protections than United States investors in the 
United States, and to secure for investors important rights 
comparable to those that would be available under United 
States legal principles and practice, by— 
(A) reducing or eliminating exceptions to the principle 
of national treatment; 
(B) freeing the transfer of funds relating to invest-
ments; 
(C) reducing or eliminating performance requirements, 
forced technology transfers, and other unreasonable bar-
riers to the establishment and operation of investments; 
(D) seeking to establish standards for expropriation 
and compensation for expropriation, consistent with United 
States legal principles and practice; 
(E) seeking to establish standards for fair and equitable 
treatment consistent with United States legal principles 
and practice, including the principle of due process; 
(F) providing meaningful procedures for resolving 
investment disputes; 
(G) seeking to improve mechanisms used to resolve 
disputes between an investor and a government through— 
(i) mechanisms to eliminate frivolous claims and 
to deter the filing of frivolous claims; 
(ii) procedures to ensure the efficient selection of 
arbitrators and the expeditious disposition of claims; 
(iii) procedures to enhance opportunities for public 
input into the formulation of government positions; 
and 
(iv) providing for an appellate body or similar 
mechanism to provide coherence to the interpretations 
of investment provisions in trade agreements; and 
(H) ensuring the fullest measure of transparency in 
the dispute settlement mechanism, to the extent consistent 
with the need to protect information that is classified or 
business confidential, by— 
(i) ensuring that all requests for dispute settlement 
are promptly made public; 
(ii) ensuring that— 
(I) all proceedings, submissions, findings, and 
decisions are promptly made public; and 
(II) all hearings are open to the public; and 
(iii) establishing a mechanism for acceptance of 
amicus curiae submissions from businesses, unions, 
and nongovernmental organizations. 
(4) INTELLECTUAL PROPERTY.—The principal negotiating 
objectives of the United States regarding trade-related intellec-
tual property are— 
(A) to further promote adequate and effective protec-
tion of intellectual property rights, including through— 
116 STAT. 996 
PUBLIC LAW 107-210—AUG. 6, 2002 
(iXD ensuring accelerated and full implementation 
of the Agreement on Trade-Related Aspects of Intellec-
tual Property Rights referred to in section 101(d)(15) 
of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(15)), particularly with respect to meeting 
enforcement obligations under that agreement; and 
(II) ensuring that the provisions of any multilateral 
or bilateral trade agreement governing intellectual 
property rights that is entered into by the United 
States reflect a standard of protection similar to that 
found in United States law; 
(ii) providing strong protection for new 
and 
emerging technologies and new methods of transmit-
ting and distributing products embodying intellectual 
property; 
(iii) preventing or eliminating discrimination with 
respect to matters affecting the availability, acquisi-
tion, scope, maintenance, use, and enforcement of 
intellectual property rights; 
(iv) ensuring that standards of protection and 
enforcement keep pace with technological develop-
ments, and in particular ensuring that rightholders 
have the legal and technological means to control the 
use of their works through the Internet and other 
global communication media, and to prevent the 
unauthorized use of their works; and 
(v) providing strong enforcement of intellectual 
property rights, including through accessible, expedi-
tious, and effective civil, administrative, and criminal 
enforcement mechanisms; 
(B) to secure fair, equitable, and nondiscriminatory 
market access opportunities for United States persons that 
rely upon intellectual property protection; and 
(C) to respect the Declaration on the TRIPS Agreement 
and Public Health, adopted by the World Trade Organiza-
tion at the Fourth Ministerial Conference at Doha, Qatar 
on November 14, 2001. 
(5) TRANSPARENCY.—The principal negotiating objective of 
the United States with respect to transparency is to obtain 
wider and broader application of the principle of transparency 
through— 
(A) increased and more timely public access to informa-
tion regarding trade issues and the activities of inter-
national trade institutions; 
(B) increased openness at the WTO and other inter-
national trade fora by increasing public access to appro-
priate meetings, proceedings, and submissions, including 
with regard to dispute settlement and investment; and 
(C) increased and more timely public access to all 
notifications and supporting documentation submitted by 
parties to the WTO. 
(6) ANTI-CORRUPTION.—The principal negotiating objectives 
of the United States with respect to the use of money or 
other things of value to influence acts, decisions, or omissions 
of foreign governments or officials or to secure any improper 
advantage in a manner affecting trade are— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 997 
(A) to obtain high standards and appropriate domestic 
enforcement mechanisms appHcable to persons from all 
countries participating in the applicable trade agreement 
that prohibit such attempts to influence acts, decisions, 
or omissions of foreign governments; and 
(B) to ensure that such standards do not place United 
States persons at a competitive disadvantage in inter-
national trade. 
(7) IMPROVEMENT OF THE WTO AND MULTILATERAL TRADE 
AGREEMENTS.—The principal negotiating objectives of the 
United States regarding the improvement of the World Trade 
Organization, the Uruguay Round Agreements, and other multi-
lateral and bilateral trade agreements are— 
(A) to achieve full implementation and extend the cov-
erage of the World Trade Organization and such agree-
ments to products, sectors, and conditions of trade not 
adequately covered; and 
(B) to expand country participation in and enhance-
ment of the Information Technology Agreement and other 
trade agreements. 
(8) REGULATORY PRACTICES.—The principal 
negotiating 
objectives of the United States regarding the use of government 
regulation or other practices by foreign governments to provide 
a competitive advantage to their domestic producers, service 
providers, or investors and thereby reduce market access for 
United States goods, services, and investments are— 
(A) to achieve increased transparency and opportunity 
for the participation of affected parties in the development 
of regulations; 
(B) to require that proposed regulations be based on 
sound science, cost-benefit analysis, risk assessment, or 
other objective evidence; 
(C) to establish consultative mechanisms among parties 
to trade agreements to promote increased transparency 
in developing guidelines, rules, regulations, and laws for 
government procurement and other regulatory regimes; and 
(D) to achieve the elimination of government measures 
such as price controls and reference pricing which deny 
full market access for United States products. 
(9) ELECTRONIC COMMERCE.—The principal 
negotiating 
objectives of the United States with respect to electronic com-
merce are— 
(A) to ensure that current obligations, rules, dis-
ciplines, and commitments 
under the World 
Trade 
Organization apply to electronic commerce; 
(B) to ensure that— 
(i) electronically delivered goods and services 
receive no less favorable treatment under trade rules 
and commitments than like products delivered in phys-
ical form; and 
(ii) the classification of such goods and services 
ensures the most liberal trade treatment possible; 
(C) to ensure that governments refrain from imple-
menting trade-related measures that impede electronic 
commerce; 
(D) where legitimate policy objectives require domestic 
regulations that affect electronic commerce, to obtain 
116 STAT. 998 
PUBLIC LAW 107-210—AUG. 6, 2002 
commitments that any such regulations are the least 
restrictive on trade, nondiscriminatory, and transparent, 
and promote an open market environment; and 
(E) to extend the moratorium of the World Trade 
Organization on duties on electronic transmissions. 
(10) RECIPROCAL TRADE IN AGRICULTURE.—(A) The principal 
negotiating objective of the United States with respect to agri-
culture is to obtain competitive opportunities for United States 
exports of agricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities afforded for-
eign exports in United States markets and to achieve fairer 
and more open conditions of trade in bulk, specialty crop, 
and value-added commodities by— 
(i) reducing or eliminating, by a date certain, tariffs 
or other charges that decrease market opportunities for 
United States exports— 
(I) giving priority to those products that are subject 
to significantly higher tariffs or subsidy regimes of 
major producing countries; and 
(II) providing reasonable adjustment periods for 
United States import-sensitive products, in close con-
sultation with the Congress on such products before 
initiating tariff reduction negotiations; 
(ii) reducing tariffs to levels that are the same as 
or lower than those in the United States; 
(iii) reducing or eliminating subsidies that decrease 
market opportunities for United States exports or unfairly 
distort agriculture markets to the detriment of the United 
States; 
(iv) allowing the preservation of programs that support 
family farms and rural communities but do not distort 
trade; 
(v) developing disciplines for domestic support pro-
grams, so that production that is in excess of domestic 
food security needs is sold at world prices; 
(vi) eliminating government policies that create price-
depressing surpluses; 
(vii) eliminating state trading enterprises whenever 
possible; 
(viii) developing, strengthening, and clarifying rules 
and effective dispute settlement mechanisms to eliminate 
practices that unfairly decrease United States market 
access opportunities or distort agricultural markets to the 
detriment of the United States, particularly with respect 
to import-sensitive products, including— 
(I) unfair or trade-distorting activities of state 
trading enterprises and other administrative mecha-
nisms, with emphasis on requiring price transparency 
in the operation of state trading enterprises and such 
other mechanisms in order to end cross subsidization, 
price discrimination, and price undercutting; 
(II) unjustified trade restrictions or commercial 
requirements, such as labeling, that affect new tech-
nologies, including biotechnology; 
(III) unjustified sanitary or phytosanitary restric-
tions, including those not based on scientific principles 
in contravention of the Uruguay Round Agreements; 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 999 
(IV) other unjustified technical barriers to trade; 
and 
(V) restrictive rules in the administration of tariff 
rate quotas; 
(ix) eliminating practices that adversely affect trade 
in perishable or cyclical products, while improving import 
relief mechanisms to recognize the unique characteristics 
of perishable and cyclical agriculture; 
(x) ensuring that import relief mechanisms for perish-
able and cyclical agriculture are as accessible and timely 
to growers in the United States as those mechanisms that 
are used by other countries; 
(xi) taking into account whether a party to the negotia-
tions has failed to adhere to the provisions of already 
existing trade agreements with the United States or has 
circumvented obligations under those agreements; 
(xii) taking into account whether a product is subject 
to market distortions by reason of a failure of a major 
producing country to adhere to the provisions of already 
existing trade agreements with the United States or by 
the circumvention by that country of its obligations under 
those agreements; 
(xiii) otherwise ensuring that countries that accede 
to the World Trade Organization have made meaningful 
market liberalization commitments in agriculture; 
(xiv) taking into account the impact that agreements 
covering agriculture to which the United States is a party, 
including the North American Free Trade Agreement, have 
on the United States agricultural industry; 
(xv) maintaining bona fide food assistance programs 
and preserving United States market development and 
export credit programs; and 
(xvi) striving to complete a general multilateral round 
in the World Trade Organization by January 1, 2005, and 
seeking the broadest market access possible in multilateral, 
regional, and bilateral negotiations, recognizing the effect 
that simultaneous sets of negotiations may have on United 
States import-sensitive commodities (including those sub-
ject to tariff-rate quotas). 
(B)(i) Before commencing negotiations with respect to agri-
culture, the United States Trade Representative, in consultation 
with the Congress, shall seek to develop a position on the 
treatment of seasonal and perishable agricultural products to 
be employed in the negotiations in order to develop an inter-
national consensus on the treatment of seasonal or perishable 
agricultural products in investigations relating to dumping and 
safeguards and in any other relevant area. 
(ii) During any negotiations on agricultural subsidies, the 
United States Trade Representative shall seek to establish 
the common base year for calculating the Aggregated Measure-
ment of Support (as defined in the Agreement on Agriculture) 
as the end of each country's Uruguay Round implementation 
period, as reported in each country's Uruguay Round market 
access schedule. 
(iii) The negotiating objective provided in subparagraph 
(A) applies with respect to agricultural matters to be addressed 
in any trade agreement entered into under section 2103(a) 
116 STAT. 1000 
PUBLIC LAW 107-210—AUG. 6, 2002 
or (b), including any trade agreement entered into under section 
2103(a) or (b) that provides for accession to a trade agreement 
to which the United States is already a party, such as the 
North American Free Trade Agreement and the United States-
Canada Free Trade Agreement. 
(11) LABOR AND THE ENVIRONMENT.—The principal negoti-
ating objectives of the United States with respect to labor 
and the environment are— 
(A) to ensure that a party to a trade agreement with 
the United States does not fail to effectively enforce its 
environmental or labor laws, through a sustained or recur-
ring course of action or inaction, in a manner affecting 
trade between the United States and that party after entry 
into force of a trade agreement between those countries; 
(B) to recognize that parties to a trade agreement 
retain the right to exercise discretion with respect to inves-
tigatory, prosecutorial, regulatory, and compliance matters 
and to make decisions regarding the allocation of resources 
to enforcement with respect to other labor or environmental 
matters determined to have higher priorities, and to recog-
nize that a country is effectively enforcing its laws if a 
course of action or inaction reflects a reasonable exercise 
of such discretion, or results from a bona fide decision 
regarding the allocation of resources, and no retaliation 
may be authorized based on the exercise of these rights 
or the right to establish domestic labor standards and 
levels of environmental protection; 
(C) to strengthen the capacity of United States trading 
partners to promote respect for core labor standards (as 
defined in section 2113(6)); 
(D) to strengthen the capacity of United States trading 
partners to protect the environment through the promotion 
of sustainable development; 
(E) to reduce or eliminate government practices or 
policies that unduly threaten sustainable development; 
(F) to seek market access, through the elimination 
of tariffs and nontariff barriers, for United States environ-
mental technologies, goods, and services; and 
(G) to ensure that labor, environmental, health, or 
safety policies and practices of the parties to trade agree-
ments with the United States do not arbitrarily or 
unjustifiably discriminate against United States exports 
or serve as disguised barriers to trade. 
(12) DISPUTE SETTLEMENT AND ENFORCEMENT.—The prin-
cipal negotiating objectives of the United States with respect 
to dispute settlement and enforcement of trade agreements 
are— 
(A) to seek provisions in trade agreements providing 
for resolution of disputes between governments under those 
trade agreements in an effective, timely, transparent, equi-
table, and reasoned manner, requiring determinations 
based on facts and the principles of the agreements, with 
the goal of increasing compliance with the agreements; 
(B) to seek to strengthen the capacity of the Trade 
Policy Review Mechanism of the World Trade Organization 
to review compliance with commitments; 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1001 
(C) to seek adherence by panels convened under the 
Dispute Settlement Understanding and by the Appellate 
Body to the standard of review applicable under the Uru-
guay Round Agreement involved in the dispute, including 
greater deference, where appropriate, to the fact-finding 
and technical expertise of national investigating authori-
ties; 
(D) to seek provisions encouraging the early identifica-
tion and settlement of disputes through consultation; 
(E) to seek provisions to encourage the provision of 
trade-expanding compensation if a party to a dispute under 
the agreement does not come into compliance with its 
obligations under the agreement; 
(F) to seek provisions to impose a penalty upon a 
party to a dispute under the agreement that— 
(i) encourages compliance with the obligations of 
the agreement; 
(ii) is appropriate to the parties, nature, subject 
matter, and scope of the violation; and 
(iii) has the aim of not adversely affecting parties 
or interests not party to the dispute while maintaining 
the effectiveness of the enforcement mechanism; and 
(G) to seek provisions that treat United States prin-
cipal negotiating objectives equally with respect to— 
(i) the ability to resort to dispute settlement under 
the applicable agreement; 
(ii) the availability of equivalent dispute settlement 
procedures; and 
(iii) the availability of equivalent remedies. 
(13) WTO EXTENDED NEGOTIATIONS.—The principal negoti-
ating objectives of the United States regarding trade in civil 
aircraft are those set forth in section 135(c) of the Uruguay 
Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules 
of origin are the conclusion of an agreement described in section 
132 of that Act (19 U.S.C. 3552). 
(14) TRADE REMEDY LAWS.—The principal negotiating objec-
tives of the United States with respect to trade remedy laws 
are— 
(A) to preserve the ability of the United States to 
enforce rigorously its trade laws, including the anti-
dumping, countervailing duty, and safeguard laws, and 
avoid agreements that lessen the effectiveness of domestic 
and international disciplines on unfair trade, especially 
dumping and subsidies, or that lessen the effectiveness 
of domestic and international safeguard provisions, in order 
to ensure that United States workers, agricultural pro-
ducers, and firms can compete fully on fair terms and 
enjoy the benefits of reciprocal trade concessions; and 
(B) to address and remedy market distortions that 
lead to dumping and subsidization, including overcapacity, 
cartelization, and market-access barriers. 
(15) BORDER TAXES.—The principal negotiating objective 
of the United States regarding border taxes is to obtain a 
revision of the WTO rules with respect to the treatment of 
border adjustments for internal taxes to redress the disadvan-
tage to countries relying primarily on direct taxes for revenue 
rather than indirect taxes. 
116 STAT. 1002 
PUBLIC LAW 107-210—AUG. 6, 2002 
(16) TEXTILE NEGOTIATIONS.—The principal negotiating 
objectives of the United States with respect to trade in textiles 
and apparel articles are to obtain competitive opportunities 
. for United States exports of textiles and apparel in foreign 
markets substantially equivalent to the competitive opportuni-
ties afforded foreign exports in United States markets and 
to achieve fairer and more open conditions of trade in textiles 
and apparel. 
(17) WORST FORMS OF CHILD LABOR.—The principal negoti-
ating objective of the United States with respect to the trade-
related aspects of the worst forms of child labor are to seek 
commitments by parties to trade agreements to vigorously 
enforce their own laws prohibiting the worst forms of child 
labor. 
President. 
(c) PROMOTION OF CERTAIN PRIORITIES.—In o r d e r tO a d d r e s s 
and maintain United States competitiveness in the global economy, 
the President shall— 
(1) seek greater cooperation between the WTO and the 
ILO; 
(2) seek to establish consultative mechanisms among par-
ties to trade agreements to strengthen the capacity of United 
States trading partners to promote respect for core labor stand-
ards (as defined in section 2113(6)) and to promote compliance 
with ILO Convention No. 182 Concerning the Prohibition and 
Immediate Action for the Elimination of the Worst Forms of 
Child Labor, and report to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance 
of the Senate on the content and operation of such mechanisms; 
Reports. 
(3) seek to establish consultative mechanisms among par-
ties to trade agreements to strengthen the capacity of United 
States trading partners to develop and implement standards 
for the protection of the environment and human health based 
on sound science, and report to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate on the content and operation of 
such mechanisms; 
(4) conduct environmental reviews of future trade and 
investment agreements, consistent with Executive Order 13141 
of November 16, 1999, and its relevant guidelines, and report 
to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate on 
such reviews; 
(5) review the impact of future trade agreements on United 
States employment, including labor markets, modeled after 
Executive Order 13141 to the extent appropriate in establishing 
procedures and criteria, report to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate on such review, and make that report 
available to the public; 
(6) take into account other legitimate United States 
domestic objectives including, but not limited to, the protection 
of legitimate health or safety, essential security, and consumer 
interests and the law and regulations related thereto; 
(7) direct the Secretary of Labor to consult with any country 
seeking a trade agreement with the United States concerning 
that countrys labor laws and provide technical assistance to 
that country if needed; 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1003 
(8) in connection with any trade negotiations entered into 
under this Act, submit to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance 
of the Senate a meaningful labor rights report of the country, 
or countries, with respect to which the President is negotiating, 
on a time frame determined in accordance with section 
2107(b)(2)(E); 
(9) with respect to any trade agreement which the President 
seeks to implement under trade authorities procedures, submit 
to the Congress a report describing the extent to which the 
country or countries that are parties to the agreement have 
in effect laws governing exploitative child labor; 
(10) continue to promote consideration of multilateral 
environmental agreements and consult with parties to such 
agreements regarding the consistency of any such agreement 
that includes trade measures with existing environmental 
exceptions under Article XX of the GATT 1994; 
(11) report to the Committee on Ways and Means of the Reports. 
House of Representatives and the Committee on Finance of 
the Senate, not later than 12 months after the imposition 
of a penalty or remedy by the United States permitted by 
a trade agreement to which this title applies, on the effective-
ness of the penalty or remedy applied under United States 
law in enforcing United States rights under the trade agree-
ment; and 
(12) seek to establish consultative mechanisms among par-
ties to trade agreements to examine the trade consequences 
of significant and unanticipated currency movements and to 
scrutinize whether a foreign government engaged in a pattern 
of manipulating its currency to promote a competitive advan-
tage in international trade. 
The report under paragraph (11) shall address whether the penalty 
or remedy was effective in changing the behavior of the targeted 
party and whether the penalty or remedy had any adverse impact 
on parties or interests not party to the dispute. 
(d) CONSULTATIONS.— 
(1) CONSULTATIONS WITH CONGRESSIONAL ADVISERS.—In the 
course of negotiations conducted under this title, the United 
States Trade Representative shall consult closely and on a 
timely basis with, and keep fully apprised of the negotiations, 
the Congressional Oversight Group convened under section 
2107 and all committees of the House of Representatives and 
the Senate with jurisdiction over laws that would be affected 
by a trade agreement resulting from the negotiations. 
(2) CONSULTATION BEFORE AGREEMENT INITIALED.—In the 
course of negotiations conducted under this title, the United 
States Trade Representative shall— 
(A) consult closely and on a timely basis (including 
immediately before initialing an agreement) with, and keep 
fully 
apprised of the negotiations, the 
congressional 
advisers for trade policy and negotiations appointed under 
section 161 of the Trade Act of 1974 (19 U.S.C. 2211), 
the Committee on Ways and Means of the House of Rep-
resentatives, the Committee on Finance of the Senate, and 
the Congressional Oversight Group convened under section 
2107; and 
116 STAT. 1004 
PUBLIC LAW 107-210—AUG. 6, 2002 
(B) with regard to any negotiations and agreement 
relating to agricultural trade, also consult closely and on 
a timely basis (including immediately before initialing an 
agreement) with, and keep fully apprised of the negotia-
tions, the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
(e) 
ADHERENCE TO OBLIGATIONS UNDER URUGUAY ROUND 
AGREEMENTS.—In determining whether to enter into negotiations 
with a particular country, the President shall take into account 
the extent to which that country has implemented, or has acceler-
ated the implementation of, its obligations under the Uruguay 
Round Agreements. 
19 use 3803. 
SEC. 2103. TRADE AGREEMENTS AUTHORITY. 
(a) AGREEMENTS REGARDING TARIFF BARRIERS.— 
(1) IN GENERAL.—^Whenever the President determines that 
one or more existing duties or other import restrictions of 
any foreign country or the United States are unduly burdening 
and restricting the foreign trade of the United States and 
that the purposes, policies, priorities, and objectives of this 
title will be promoted thereby, the President— 
(A) may enter into trade agreements with foreign coun-
tries before— 
(i) June 1, 2005; or 
(ii) June 1, 2007, if trade authorities procedures 
are extended under subsection (c); and 
(B) may, subject to paragraphs (2) and (3), proclaim— 
(i) such modification or continuance of any existing 
duty, 
(ii) such continuance of existing duty-free or excise 
treatment, or 
(iii) such additional duties, 
as the President determines to be required or appropriate 
to carry out any such trade agreement. 
President. 
The President shall notify the Congress of the President's 
Notification. 
intention to enter into an agreement under this subsection. 
(2) LIMITATIONS.—No proclamation may be made under 
paragraph (1) that— 
(A) reduces any rate of duty (other than a rate of 
duty that does not exceed 5 percent ad valorem on the 
date of the enactment of this Act) to a rate of duty which 
is less than 50 percent of the rate of such duty that applies 
on such date of enactment; 
(B) reduces the rate of duty below that applicable 
under the Uruguay Round Agreements, on any import sen-
sitive agricultural product; or 
(C) increases any rate of duty above the rate that 
applied on the date of the enactment of this Act. 
(3) AGGREGATE REDUCTION; EXEMPTION FROM STAGING.— 
(A) AGGREGATE REDUCTION.—Except as provided in 
subparagraph (B), the aggregate reduction in the rate of 
duty on any article which is in effect on any day pursuant 
to a trade agreement entered into under paragraph (1) 
shall not exceed the aggregate reduction which would have 
been in effect on such day if— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1005 
(i) a reduction of 3 percent ad valorem or a reduc-
tion of one-tenth of the total reduction, whichever is 
greater, had taken effect on the effective date of the 
first reduction proclaimed under paragraph (1) to carry 
out such agreement with respect to such article; and 
(ii) a reduction equal to the amount applicable 
under clause (i) had taken effect at 1-year intervals 
after the effective date of such first reduction. 
(B) EXEMPTION FROM STAGING.—No staging is required 
under subparagraph (A) with respect to a duty reduction 
that is proclaimed under paragraph (1) for an article of 
a kind that is not produced in the United States. The 
United States International Trade Commission shall advise 
the President of the identity of articles that may be 
exempted from staging under this subparagraph. 
(4) ROUNDING.—If the President determines that such 
action will simplify the computation of reductions under para-
graph (3), the President may round an annual reduction by 
an amount equal to the lesser o
f
— 
(A) the difference between the reduction without regard 
to this paragraph and the next lower whole number; or 
(B) one-half of 1 percent ad valorem. 
(5) OTHER LIMITATIONS.—A rate of duty reduction that 
may not be proclaimed by reason of paragraph (2) may take 
effect only if a provision authorizing such reduction is included 
within an implementing bill provided for under section 2105 
and that bill is enacted into law. 
(6) OTHER TARIFF MODIFICATIONS.—Notwithstanding para-
graphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject 
to the consultation and layover requirements of section 115 
of the Uruguay Round Agreements Act, the President may 
proclaim the modification of any duty or staged rate reduction 
of any duty set forth in Schedule XX, as defined in section 
2(5) of that Act, if the United States agrees to such modification 
or staged rate reduction in a negotiation for the reciprocal 
elimination or harmonization of duties under the auspices of 
the World Trade Organization. 
(7) AUTHORITY UNDER URUGUAY ROUND AGREEMENTS ACT 
NOT AFFECTED.—Nothing in this subsection shall limit the 
authority provided to the President under section 111(b) of 
the Uruguay Round Agreements Act (19 U.S.C. 3521(b)). 
(b) 
AGREEMENTS REGARDING TARIFF AND NONTARIFF BAR-
RIERS.— 
(1) IN GENERAL.—(A) Whenever the President determines 
that— 
(i) one or more existing duties or any other import 
restriction of any foreign country or the United States 
or any other barrier to, or other distortion of, international 
trade unduly burdens or restricts the foreign trade of the 
United States or adversely affects the United States 
economy, or 
(ii) the imposition of any such barrier or distortion 
is likely to result in such a burden, restriction, or effect, 
and that the purposes, policies, priorities, and objectives of 
this title will be promoted thereby, the President may enter 
into a trade agreement described in subparagraph (B) during 
the period described in subparagraph (C). 
116 STAT. 1006 
PUBLIC LAW 107-210—AUG. 6, 2002 
(B) The President may enter into a trade agreement under 
subparagraph (A) with foreign countries providing for— 
(i) the reduction or ehmination of a duty, restriction, 
barrier, or other distortion described in subparagraph (A); 
or 
(ii) the prohibition of, or Hmitation on the imposition 
of, such barrier or other distortion. 
(C) The President may enter into a trade agreement under 
this paragraph before— 
(i) June 1, 2005; or 
(ii) June 1, 2007, if trade authorities procedures are 
extended under subsection (c). 
(2) CONDITIONS.—^A trade agreement may be entered into 
under this subsection only if such agreement makes progress 
in meeting the appHcable objectives described in section 2102(a) 
and (b) and the President satisfies the conditions set forth 
in section 2104. 
(3) 
BILLS QUALIFYING FOR TRADE AUTHORITIES PROCE-
DURES.—(A) The provisions of section 151 of the Trade Act 
of 1974 (in this title referred to as "trade authorities proce-
dures") apply to a bill of either House of Congress which con-
tains provisions described in subparagraph (B) to the same 
extent as such section 151 applies to implementing bills under 
that section. A bill to which this paragraph applies shall here-
after in this title be referred to as an "implementing bill". 
(B) The provisions referred to in subparagraph (A) are— 
(i) a provision approving a trade agreement entered 
into under this subsection and approving the statement 
of administrative action, if any, proposed to implement 
such trade agreement; and 
(ii) if changes in existing laws or new statutory 
authority are required to implement such trade agreement 
or agreements, provisions, necessary or appropriate to 
implement such trade agreement or agreements, either 
repealing or amending existing laws or providing new 
statutory authority. 
(c) 
EXTENSION DISAPPROVAL PROCESS FOR CONGRESSIONAL 
TRADE AUTHORITIES PROCEDURES.— 
(1) IN GENERAL.—Except as provided in section 2105(b)— 
(A) the trade authorities procedures apply to imple-
menting bills submitted with respect to trade agreements 
entered into under subsection (b) before July 1, 2005; and 
(B) the trade authorities procedures shall be extended 
to implementing bills submitted with respect to trade agree-
ments entered into under subsection (b) after June 30, 
2005, and before July 1, 2007, if (and only if)— 
(i) the President requests such extension under 
paragraph (2); and 
(ii) neither House of the Congress adopts an exten-
sion disapproval resolution under paragraph (5) before 
June 1, 2005. 
Deadline. 
(2) REPORT TO CONGRESS BY THE PRESIDENT.—If the Presi-
dent is of the opinion that the trade authorities procedures 
should be extended to implementing bills described in para-
graph (1)(B), the President shall submit to the Congress, not 
later than March 1, 2005, a written report that contains a 
request for such extension, together with— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1007 
(A) a description of all trade agreements that have 
been negotiated under subsection (b) and the anticipated 
schedule for submitting such agreements to the Congress 
for approval; 
(B) a description of the progress that has been made 
in negotiations to achieve the purposes, policies, priorities, 
and objectives of this title, and a statement that such 
progress justifies the continuation of negotiations; and 
(C) a statement of the reasons why the extension is 
needed to complete the negotiations. 
(3) OTHER REPORTS TO CONGRESS.— 
President. 
(A) REPORT BY THE ADVISORY COMMITTEE.—The Presi- Deadlines. 
dent shall promptly inform the Advisory Committee for 
Trade Policy and Negotiations established under section 
135 of the Trade Act of 1974 (19 U.S.C. 2155) of the 
President's decision to submit a report to the Congress 
under paragraph (2). The Advisory Committee shall submit 
to the Congress as soon as practicable, but not later than 
May 1, 2005, a written report that contains— 
(i) its views regarding the progress that has been 
made in negotiations to achieve the purposes, policies, 
priorities, and objectives of this title; and 
(ii) a statement of its views, and the reasons 
therefor, regarding whether the extension requested 
under paragraph (2) should be approved or dis-
approved. 
(B) REPORT BY ITC—The President shall promptly 
inform the International Trade Commission of the Presi-
dent's decision to submit a report to the Congress under 
paragraph (2). The International Trade Commission shall 
submit to the Congress as soon as practicable, but not 
later than May 1, 2005, a written report that contains 
a review and analysis of the economic impact on the United 
States of all trade agreements implemented between the 
date of enactment of this Act and the date on which the 
President decides to seek an extension requested under 
paragraph (2). 
(4) STATUS OF REPORTS.—The reports submitted to the 
Congress under paragraphs (2) and (3), or any portion of such 
reports, may be classified to the extent the President deter-
mines appropriate. 
(5) EXTENSION DISAPPROVAL RESOLUTIONS.—(A) For pur-
poses of paragraph (1), the term "extension disapproval resolu-
tion" means a resolution of either House of the Congress, the 
sole matter after the resolving clause of which is as follows: 
"That the 
disapproves the request of the President for 
the extension, under section 2103(c)(l)(B)(i) of the Bipartisan 
Trade Promotion Authority Act of 2002, of the trade authorities 
procedures under that Act to any implementing bill submitted 
with respect to any trade agreement entered into under section 
2103(b) of that Act after June 30, 2005.", with the blank space 
being filled with the name of the resolving House of the Con-
gress. 
(B) Extension disapproval resolutions— 
(i) may be introduced in either House of the Congress 
by any member of such House; and 
99-194 0-03-8 :QL3 Part2 
116 STAT. 1008 
PUBLIC LAW 107-210—AUG. 6, 2002 
19 use 3804. 
President. 
(ii) shall be referred, in the House of Representatives, 
to the Committee on Ways and Means and, in addition, 
to the Committee on Rules. 
(C) The provisions of section 152(d) and (e) of the Trade 
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
consideration of certain resolutions in the House and Senate) 
apply to extension disapproval resolutions. 
(D) It is not in order for— 
(i) the Senate to consider any extension disapproval 
resolution not reported by the Committee on Finance; 
(ii) the House of Representatives to consider any exten-
sion disapproval resolution not reported by the Committee 
on Ways and Means and, in addition, by the Committee 
on Rules; or 
(iii) either House of the Congress to consider an exten-
sion disapproval resolution after June 30, 2005. 
(d) COMMENCEMENT OF NEGOTIATIONS.—In order to contribute 
to the continued economic expansion of the United States, the 
President shall commence negotiations covering tariff and nontariff 
barriers affecting any industry, product, or service sector, and 
expand existing sectoral agreements to countries that are not par-
ties to those agreements, in cases where the President determines 
that such negotiations are feasible and timely £ind would benefit 
the United States. Such sectors include agriculture, commercial 
services, intellectual property rights, industrial and capital goods, 
government procurement, information technology products, environ-
mental technology and services, medical equipment and services, 
civil aircraft, and infrastructure products. In so doing, the President 
shall take into account all of the principal negotiating objectives 
set forth in section 2102(b). 
SEC. 2104. CONSULTATIONS AND ASSESSMENT. 
(a) NOTICE AND CONSULTATION BEFORE NEGOTIATION.—The 
President, with respect to any agreement that is subject to the 
provisions of section 2103(b), shall— 
(1) provide, at least 90 calendar days before initiating 
negotiations, written notice to the Congress of the President's 
intention to enter into the negotiations and set forth therein 
the date the President intends to initiate such negotiations, 
the specific United States objectives for the negotiations, and 
whether the President intends to seek an agreement, or changes 
to an existing agreement; 
(2) before and after submission of the notice, consult 
regarding the negotiations with the Committee on Finance 
of the Senate and the Committee on Ways and Means of the 
House of Representatives, such other committees of the House 
and Senate as the President deems appropriate, and the 
Congressional Oversight group convened under section 2107; 
and 
(3) upon the request of a majority of the members of the 
Congressional Oversight Group under section 2107(c), meet 
with the Congressional Oversight Group before initiating the 
negotiations or at any other time concerning the negotiations. 
(b) NEGOTIATIONS REGARDING AGRICULTURE.— 
(1) IN GENERAL.—Before initiating or continuing negotia-
tions the subject matter of which is directly related to the 
subject matter under section 2102(b)(10)(A)(i) with any country. 
PUBLIC LAW 107-2 lO—AUG. 6, 2002 
116 STAT. 1009 
the President shall assess whether United States tariffs on 
agricultural products that were bound under the Uruguay 
Round Agreements are lower than the tariffs bound by that 
country. In addition, the President shall consider whether the 
tariff levels bound and applied throughout the world with 
respect to imports from the United States are higher than 
United States tariffs and whether the negotiation provides an 
opportunity to address any such disparity. The President shall 
consult with the Committee on Ways and Means and the Com-
mittee on Agriculture of the House of Representatives and 
the Committee on Finance and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate concerning the results 
of the assessment, whether it is appropriate for the United 
States to agree to further tariff reductions based on the conclu-
sions reached in the assessment, and how all applicable negoti-
ating objectives will be met. 
(2) 
SPECIAL CONSULTATIONS ON IMPORT SENSITIVE PROD-
UCTS.—(A) Before initiating negotiations with regard to agri-
culture, and, with respect to the Free Trade Area for the 
Americas and negotiations with regard to agriculture under 
the auspices of the World Trade Organization, as soon as prac-
ticable after the enactment of this Act, the United States Trade 
Representative shall— 
(i) identify those agricultural products subject to tariff-
rate quotas on the date of enactment of this Act, and 
agricultural products subject to tariff reductions by the 
United States as a result of the Uruguay Round Agree-
ments, for which the rate of duty was reduced on January 
1, 1995, to a rate which was not less than 97.5 percent 
of the rate of duty that applied to such article on December 
31, 1994; 
(ii) consult with the Committee on Ways and Means 
and the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Finance and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate 
concerning— 
(I) whether any further tariff reductions on the 
products identified under clause (i) should be appro-
priate, taking into account the impact of any such 
tariff reduction on the United States industry pro-
ducing the product concerned; 
(II) whether the products so identified face unjusti-
fied sanitary or ph3^osanitary restrictions, including 
those not based on scientific principles in contravention 
of the Uruguay Round Agreements; and 
(III) whether the countries participating in the 
negotiations maintain export subsidies or other pro-
grams, policies, or practices that distort world trade 
in such products and the impact of such programs, 
policies, and practices on United States producers of 
the products; 
(iii) request that the International Trade Commission 
prepare an assessment of the probable economic effects 
of any such tariff reduction on the United States industry 
producing the product concerned and on the United States 
economy as a whole; and 
116 STAT. 1010 
PUBLIC LAW 107-210—AUG. 6, 2002 
(iv) upon compl5dng with clauses (i), (ii), and (iii), notify 
the Committee on Ways and Means and the Committee 
on Agriculture of the House of Representatives and the 
Committee on Finance and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate of those products 
identified under clause (i) for which the Trade Representa-
tive intends to seek tariff liberalization in the negotiations 
and the reasons for seeking such tariff liberalization. 
(B) If, after negotiations described in subparagraph (A) 
are commenced— 
(i) the United States Trade Representative identifies 
any additional agricultural product described in subpara-
graph (A)(i) for tariff reductions which were not the subject 
of a notification under subparagraph (A)(iv), or 
(ii) any additional agricultural product described in 
subparagraph (A)(i) is the subject of a request for tariff 
reductions by a party to the negotiations, 
the Trade Representative shall, as soon as practicable, notify 
the committees referred to in subparagraph (A)(iv) of those 
products and the reasons for seeking such tariff reductions. 
(3) NEGOTIATIONS REGARDING THE FISHING INDUSTRY.— 
Before initiating, or continuing, negotiations which directly 
relate to fish or shellfish trade with any country, the President 
shall consult with the Committee on Ways and Means and 
the Committee on Resources of the House of Representatives, 
and the Committee on Finance and the Committee on Com-
merce, Science, and Transportation of the Senate, and shall 
keep the Committees apprised of negotiations on an ongoing 
and timely basis. 
(c) NEGOTIATIONS REGARDING TEXTILES.—Before initiating or 
continuing negotiations the subject matter of which is directly 
related to textiles and apparel products with any country, the 
President shall assess whether United States tariffs on textile and 
apparel products that were bound under the Uruguay Round Agree-
ments are lower than the tariffs bound by that country and whether 
the negotiation provides an opportunity to address any such dis-
parity. The President shall consult with the Committee on Ways 
and Means of the House of Representatives and the Committee 
on Finance of the Senate concerning the results of the assessment, 
whether it is appropriate for the United States to agree to further 
tariff reductions based on the conclusions reached in the assess-
ment, and how all applicable negotiating objectives will be met. 
(d) 
CONSULTATION WITH 
CONGRESS BEFORE AGREEMENTS 
ENTERED INTO.— 
(1) CONSULTATION.—Before entering into any trade agree-
ment under section 2103(b), the President shall consult with— 
(A) the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the 
Senate; 
(B) each other committee of the House and the Senate, 
and each joint committee of the Congress, which has juris-
diction over legislation involving subject matters which 
would be affected by the trade agreement; and 
(C) the Congressional Oversight Group convened under 
section 2107. 
(2) SCOPE.—The consultation described in paragraph (1) 
shall include consultation with respect to— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1011 
(A) the nature of the agreement; 
(B) how and to what extent the agreement will achieve 
the applicable purposes, policies, priorities, and objectives 
of this title; and 
(C) the implementation of the agreement under section 
2105, including the general effect of the agreement on 
existing laws. 
(3) REPORT REGARDING UNITED STATES TRADE REMEDY President. 
LAWS. 
Deadlines. 
(A) CHANGES IN CERTAIN TRADE LAWS.—The President, 
at least 180 calendar days before the day on which the 
President enters into a trade agreement under section 
2103(b), shall report to the Committee on Ways and Means 
of the House of Representatives and the Committee on 
Finance of the Senate— 
(i) the range of proposals advanced in the negotia-
tions with respect to that agreement, that may be 
in the final agreement, and that could require amend-
ments to title VII of the Tariff Act of 1930 or to 
chapter 1 of title II of the Trade Act of 1974; and 
(ii) how these proposals relate to the objectives 
described in section 2102(b)(14). 
(B) CERTAIN AGREEMENTS.—^With respect to a trade 
agreement entered into with Chile or Singapore, the report 
referred to in subparagraph (A) shall be submitted by the 
President at least 90 calendar days before the day on 
which the President enters into that agreement. 
(C) RESOLUTIONS.—(i) At any time after the trans-
mission of the report under subparagraph (A), if a resolu-
tion is introduced with respect to that report in either 
House of Congress, the procedures set forth in clauses 
(iii) through (vi) shall apply to that resolution i
f
— 
(I) no other resolution with respect to that report 
has previously been reported in that House of Congress 
by the Committee on Ways and Means or the Com-
mittee on Finance, as the case may be, pursuant to 
those procedures; and 
(II) no procedural disapproval resolution under sec-
tion 2105(b) introduced with respect to a trade agree-
ment entered into pursuant to the negotiations to 
which the report under subparagraph (A) relates has 
previously been reported in that House of Congress 
by the Committee on Ways and Means or the Com-
mittee on Finance, as the case may be. 
(ii) For purposes of this subparagraph, the term "reso-
lution" means only a resolution of either House of Congress, 
the matter after the resolving clause of which is as follows: 
"That the 
finds 
that the proposed changes to United 
States trade remedy laws contained in the report of the 
President transmitted to the Congress on 
under sec-
tion 2104(d)(3) of the Bipartisan Trade Promotion Authority 
Act of 2002 with respect to 
, are inconsistent with 
the negotiating objectives described in section 2102(b)(14) 
of that Act.", with the first blank space being filled with 
the name of the resolving House of Congress, the second 
blank space being filled with the appropriate date of the 
116 STAT. 1012 
PUBLIC LAW 107-210—AUG. 6, 2002 
report, and the third blank space being filled with the 
name of the country or countries involved. 
(iii) Resolutions in the House of Representatives— 
(I) may be introduced by any Member of the House; 
(II) shall be referred to the Committee on Ways 
and Means and, in addition, to the Committee on 
Rules; and 
(III) may not be amended by either Committee, 
(iv) Resolutions in the Senate— 
(I) may be introduced by any Member of the 
Senate; 
(II) shall be referred to the Committee on Finance; 
and 
(III) may not be amended. 
(iv) It is not in order for the House of Representatives 
to consider any resolution that is not reported by the Com-
mittee on Ways and Means and, in addition, by the Com-
mittee on Rules. 
(v) It is not in order for the Senate to consider any 
resolution that is not reported by the Committee on 
Finance. 
(vi) The provisions of section 152(d) and (e) of the 
Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating 
to floor consideration of certain resolutions in the House 
and Senate) shall apply to resolutions. 
Deadlines. 
(e) ADVISORY COMMITTEE REPORTS.—The report required under 
section 135(e)(1) of the Trade Act of 1974 regarding any trade 
agreement entered into under section 2103(a) or (b) of this Act 
shall be provided to the President, the Congress, and the United 
States Trade Representative not later than 30 days after the date 
on which the President notifies the Congress under section 
2103(a)(1) or 2105(a)(1)(A) of the President's intention to enter 
into the agreement. 
(f) ITC ASSESSMENT.— 
President. 
(1) IN GENERAL.—^The President, at least 90 calendar days 
before the day on which the President enters into a trade 
agreement under section 2103(b), shall provide the Inter-
national Trade Commission (referred to in this subsection as 
"the Commission") with the details of the agreement as it 
exists at that time and request the Commission to prepare 
and submit an assessment of the agreement as described in 
paragraph (2). Between the time the President makes the 
request under this paragraph and the time the Commission 
submits the assessment, the President shall keep the Commis-
sion current with respect to the details of the agreement. 
Reports. 
(2) ITC ASSESSMENT.—Not later than 90 calendar days 
after the President enters into the agreement, the Commission 
shall submit to the President and the Congress a report 
assessing the likely impact of the agreement on the United 
States economy as a whole and on specific industry sectors, 
including the impact the agreement will have on the gross 
domestic product, exports and imports, aggregate employment 
and employment opportunities, the production, emplojmient, 
and competitive position of industries likely to be significantly 
affected by the agreement, and the interests of United States 
consumers. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1013 
(3) REVIEW OF EMPIRICAL LITERATURE.—In preparing the 
assessment, the Commission shall review available economic 
assessments regarding the agreement, including literature 
regarding any substantially equivalent proposed agreement, 
and shall provide in its assessment a description of the analyses 
used and conclusions drawn in such literature, and a discussion 
of areas of consensus and divergence between the various anal-
yses and conclusions, including those of the Commission 
regarding the agreement. 
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS. 
(a) IN GENERAL.— 
(1) 
NOTIFICATION 
AND SUBMISSION.—Any 
agreement 
entered into under section 2103(b) shall enter into force with 
respect to the United States if (and only if)— 
(A) the President, at least 90 calendar days before 
the day on which the President enters into the trade agree-
ment, notifies the House of Representatives and the Senate 
of the President's intention to enter into the agreement, 
and promptly thereafter publishes notice of such intention 
in the Federal Register; 
(B) within 60 days after entering into the agreement, 
the President submits to the Congress a description of 
those changes to existing laws that the President considers 
would be required in order to bring the United States 
into compliance with the agreement; 
(C) after entering into the agreement, the President 
submits to the Congress, on a day on which both Houses 
of Congress are in session, a copy of the final legal text 
of the agreement, together with— 
(i) a draft of an implementing bill described in 
section 2103(b)(3); 
(ii) a statement of any administrative action pro-
posed to implement the trade agreement; and 
(iii) the supporting information described in para-
graph (2); and 
(D) the implementing bill is enacted into law. 
(2) SUPPORTING INFORMATION.—The supporting information 
required under paragraph (l)(C)(iii) consists o
f
— 
(A) an explanation as to how the implementing bill 
and proposed administrative action will change or affect 
existing law; and 
(B) a statement— 
(i) asserting that the agreement makes progress 
in achieving the applicable purposes, policies, prior-
ities, and objectives of this title; and 
(ii) setting forth the reasons of the President 
regarding— 
(I) how and to what extent the agreement 
makes progress in achieving the applicable pur-
poses, policies, and objectives referred to in clause 
(i); 
(II) whether and how the agreement changes 
provisions of an agreement previously negotiated; 
(III) how the agreement serves the interests 
of United States commerce; 
19 use 3805. 
President. 
Federal Register, 
publication. 
116 STAT. 1014 
PUBLIC LAW 107-210—AUG. 6, 2002 
(IV) how the implementing bill meets the 
standards set forth in section 2103(b)(3); and 
(V) how and to what extent the agreement 
makes progress in achieving the applicable pur-
poses, policies, and objectives referred to in section 
2102(c) regarding the promotion of certain prior-
ities. 
(3) RECIPROCAL BENEFITS.—In order to ensure that a for-
eign country that is not a party to a trade agreement entered 
into under section 2103(b) does not receive benefits under the 
agreement unless the country is also subject to the obligations 
under the agreement, the implementing bill submitted with 
respect to the agreement shall provide that the benefits and 
obligations under the agreement apply only to the parties to 
the agreement, if such application is consistent with the terms 
of the agreement. The implementing bill may also provide that 
the benefits and obligations under the agreement do not apply 
uniformly to all parties to the agreement, if such application 
is consistent with the terms of the agreement. 
(4) DISCLOSURE OF COMMITMENTS.—Any agreement or other 
understanding with a foreign government or governments 
(whether oral or in writing) that— 
(A) relates to a trade agreement with respect to which 
the Congress enacts an implementing bill under trade 
authorities procedures, and 
(B) is not disclosed to the Congress before an imple-
menting bill with respect to that agreement is introduced 
in either House of Congress, 
shall not be considered to be part of the agreement approved 
by the Congress and shall have no force and effect under 
United States law or in any dispute settlement body. 
(b) LIMITATIONS ON TRADE AUTHORITIES PROCEDURES.— 
(1) FOR LACK OF NOTICE OR CONSULTATIONS.— 
(A) IN GENERAL.—The trade authorities procedures 
shall not apply to any implementing bill submitted with 
respect to a trade agreement or trade agreements entered 
into under section 2103(b) if during the 60-day period begin-
ning on the date that one House of Congress agrees to 
a procedural disapproval resolution for lack of notice or 
consultations with respect to such trade agreement or 
agreements, the other House separately agrees to a proce-
dural disapproval resolution with respect to such trade 
agreement or agreements. 
(B) 
PROCEDURAL DISAPPROVAL RESOLUTION.—(i) 
For 
purposes of this paragraph, the term "procedural dis-
approval resolution" means a resolution of either House 
of Congress, the sole matter after the resolving clause 
of which is as follows: "That the President has failed or 
refused to notify or consult in accordance with the Bipar-
tisan Trade Promotion Authority Act of 2002 on negotia-
tions with respect to 
and, therefore, the trade 
authorities procedures under that Act shall not apply to 
any implementing bill submitted with respect to such trade 
agreement or agreements.", with the blank space being 
filled with a description of the trade agreement or agree-
ments with respect to which the President is considered 
to have failed or refused to notify or consult. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1015 
(ii) For purposes of clause (i), the President has "failed 
or refused to notify or consult in accordance with the Bipar-
tisan Trade Promotion Authority Act of 2002" on negotia-
tions with respect to a trade agreement or trade agreements 
if— 
(I) the President has failed or refused to consult 
(as the case may be) in accordance with section 2104 
or 2105 with respect to the negotiations, agreement, 
or agreements; 
(II) guidelines under section 2107(b) have not been 
developed or met with respect to the negotiations, 
agreement, or agreements; 
(III) the President has not met with the Congres-
sional Oversight Group pursuant to a request made 
under section 2107(c) with respect to the negotiations, 
agreement, or agreements; or 
(IV) the agreement or agreements fail to make 
progress in achieving the purposes, policies, priorities, 
and objectives of this title. 
(2) 
PROCEDURES 
FOR 
CONSIDERING 
RESOLUTIONS.—(A) 
Procedural disapproval resolutions— 
(i) in the House of Representatives— 
(I) may be introduced by any Member of the House; 
(II) shall be referred to the Committee on Ways 
and Means and, in addition, to the Committee on 
Rules; and 
(III) may not be amended by either Committee; 
and 
(ii) in the Senate— 
(I) may be introduced by any Member of the 
Senate; 
(II) shall be referred to the Committee on Finance; 
and 
(III) may not be amended. 
(B) The provisions of section 152(d) and (e) of the Trade 
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
consideration of certain resolutions in the House and Senate) 
apply to a procedural disapproval resolution introduced with 
respect to a trade agreement if no other procedural disapproval 
resolution with respect to that trade agreement has previously 
been reported in that House of Congress by the Committee 
on Ways and Means or the Committee on Finance, as the 
case may be, and if no resolution described in section 
2104(d)(3)(C)(ii) with respect to that trade agreement has been 
reported in that House of Congress by the Committee on Ways 
and Means or the Committee on Finance, as the case may 
be, pursuant to the procedures set forth in clauses (iii) through 
(vi) of such section 2104(d)(3)(C). 
(C) It is not in order for the House of Representatives 
to consider any procedural disapproval resolution not reported 
by the Committee on Ways and Means and, in addition, by 
the Committee on Rules. 
(D) It is not in order for the Senate to consider any proce-
dural disapproval resolution not reported by the Committee 
on Finance. 
116 STAT. 1016 
PUBLIC LAW 107-210—AUG. 6, 2002 
Deadline. 
(3) FOR FAILURE TO MEET OTHER REQUIREMENTS.—Not later 
Reports. 
than December 31, 2002, the Secretary of Commerce, in con-
sultation with the Secretary of State, the Secretary of the 
Treasury, the Attorney General, and the United States Trade 
Representative, shall transmit to the Congress a report setting 
forth the strategy of the executive branch to address concerns 
of the Congress regarding whether dispute settlement panels 
and the Appellate Body of the WTO have added to obligations, 
or diminished rights, of the United States, as described in 
section 2101(b)(3). Trade authorities procedures shall not apply 
to any implementing bill with respect to an agreement nego-
tiated under the auspices of the WTO unless the Secretary 
of Commerce has issued such report in a timely manner. 
(c) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—Sub-
section (b) of this section, section 2103(c), aand section 2104(d)(3)(C) 
are enacted by the Congress— 
(1) as an exercise of the rulemaking power of the House 
of Representatives and the Senate, respectively, £ind as such 
are deemed a part of the rules of each House, respectively, 
and such procedures supersede other rules only to the extent 
that they are inconsistent with such other rules; and 
(2) with the full recognition of the constitutional right 
of either House to change the rules (so far as relating to 
the procedures of that House) at any time, in the same manner, 
and to the same extent as any other rule of that House. 
19 use 3806. 
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH 
NEGOTIATIONS HAVE ALREADY BEGUN. 
(a) CERTAIN AGREEMENTS.—^Notwithstanding the prenegotiation 
notification and consultation requirement described in section 
2104(a), if an agreement to which section 2103(b) applies— 
(1) is entered into under the auspices of the World Trade 
Organization, 
(2) is entered into with Chile, 
(3) is entered into with Singapore, or 
(4) establishes a Free Trade Area for the Americas, 
£ind results from negotiations that were commenced before the 
date of the enactment of this Act, subsection (b) shall apply. 
(b) TREATMENT OF AGREEMENTS.—In the case of any agreement 
to which subsection (a) applies— 
(1) the applicability of the trade authorities procedures 
to implementing bills shall be determined without regard to 
the requirements of section 2104(a) (relating only to 90 days 
notice prior to initiating negotiations), and any procedural dis-
approval resolution under section 2105(b)(1)(B) shall not be 
in order on the basis of a failure or refusal to comply with 
the provisions of section 2104(a); and 
President. 
(2) the President shall, as soon as feasible after the enact-
ment of this Act— 
(A) notify the Congress of the negotiations described 
in subsection (a), the specific United States objectives in 
the negotiations, and whether the President is seeking 
a new agreement or changes to an existing agreement; 
and 
(B) before and after submission of the notice, consult 
regarding the negotiations with the committees referred 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1017 
to in section 2104(a)(2) and the Congressional Oversight 
Group convened under section 2107. 
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP. 
19 USC 3807. 
(a) MEMBERS AND FUNCTIONS.— 
(1) IN GENERAL.—By not later than 60 days after the date Deadline, 
of the enactment of this Act, and not later than 30 days after 
the convening of each Congress, the chairman of the Committee 
on Ways and Means of the House of Representatives and the 
chairman of the Committee on Finance of the Senate shall 
convene the Congressional Oversight Group. 
(2) MEMBERSHIP FROM THE HOUSE.—In each Congress, the 
Congressional Oversight Group shall be comprised of the fol-
lowing Members of the House of Representatives: 
(A) The chairman and ranking member of the Com-
mittee on Ways and Means, and 3 additional members 
of such Committee (not more than 2 of whom are members 
of the same political party). 
(B) The chairman and ranking member, or their des-
ignees, of the committees of the House of Representatives 
which would have, under the Rules of the House of Rep-
resentatives, jurisdiction over provisions of law affected 
by a trade agreement negotiations for which are conducted 
at any time during that Congress and to which this title 
would apply. 
(3) MEMBERSHIP FROM THE SENATE.—In each Congress, 
the Congressional Oversight Group shall also be comprised 
of the following members of the Senate: 
(A) The chairman and ranking member of the Com-
mittee on Finance and 3 additional members of such Com-
mittee (not more than 2 of whom are members of the 
same political party). 
(B) The chairman and ranking member, or their des-
ignees, of the committees of the Senate which would have, 
under the Rules of the Senate, jurisdiction over provisions 
of law affected by a trade agreement negotiations for which 
are conducted at any time during that Congress and to 
which this title would apply. 
(4) ACCREDITATION.—Each member of the Congressional 
Oversight Group described in paragraph (2)(A) and (3)(A) shall 
be accredited by the United States Trade Representative on 
behalf of the President as an official adviser to the United 
States delegation in negotiations for any trade agreement to 
which this title applies. Each member of the Congressional 
Oversight Group described in paragraph (2)(B) and (3)(B) shall 
be accredited by the United States Trade Representative on 
behalf of the President as an official adviser to the United 
States delegation in the negotiations by reason of which the 
member is in the Congressional Oversight Group. The Congres-
sional Oversight Group shall consult with and provide advice 
to the Trade Representative regarding the formulation of spe-
cific objectives, negotiating strategies and positions, the 
development of the applicable trade agreement, and compliance 
and enforcement of the/negotiated commitments under the 
trade agreement. 
(5) CHAIR.—The Congressional Oversight Group shall be 
chaired by the Chairman of the Committee on Ways and Means 
116 STAT. 1018 
PUBLIC LAW 107-210—AUG. 6, 2002 
of the House of Representatives and the Chairman of the Com-
mittee on Finance of the Senate. 
(b) GUIDELINES.— 
(1) PURPOSE AND REVISION.—The United States Trade Rep-
resentative, in consultation with the chairmen and ranking 
minority members of the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance 
of the Senate— 
(A) shall, within 120 days after the date of the enact-
ment of this Act, develop written guidelines to facilitate 
the useful and timely exchange of information between 
the Trade Representative and the Congressional Oversight 
Group convened under this section; and 
(B) may make such revisions to the guidelines as may 
be necessary from time to time. 
(2) CONTENT.—The guidelines developed under paragraph 
(1) shall provide for, among other things— 
(A) regular, detailed briefings of the Congressional 
Oversight Group regarding negotiating objectives, including 
the promotion of certain priorities referred to in section 
2102(c), and positions and the status of the applicable 
negotiations, beginning as soon as practicable after the 
Congressional Oversight Group is convened, with more fre-
quent briefings as trade negotiations enter the final stage; 
(B) access by members of the Congressional Oversight 
Group, and staff with proper security clearances, to perti-
nent documents relating to the negotiations, including 
classified materials; 
(C) the closest practicable coordination between the 
Trade Representative and the Congressional Oversight 
Group at all critical periods during the negotiations, 
including at negotiation sites; 
(D) after the applicable trade agreement is concluded, 
consultation regarding ongoing compliance and enforce-
ment of negotiated commitments under the trade agree-
ment; and 
(E) the time fi*ame for submitting the report required 
under section 2102(c)(8). 
(c) REQUEST FOR MEETING.—Upon the request of a majority 
of the Congressional Oversight Group, the President shall meet 
with the Congressional Oversight Group before initiating negotia-
tions with respect to a trade agreement, or at any other time 
concerning the negotiations. 
19 use 3808. 
SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT 
REQUIREMENTS. 
President. 
(a) IN GENERAL.—At the time the President submits to the 
Congress the final text of an agreement pursuant to section 
2105(a)(1)(C), the President shall also submit a plan for imple-
menting and enforcing the agreement. The implementation and 
enforcement plan shall include the following: 
(1) BORDER PERSONNEL REQUIREMENTS.—A description of 
additional personnel required at border entry points, including 
a list of additional customs and agricultural inspectors. 
(2) AGENCY STAFFING REQUIREMENTS.—A description of 
additional personnel required by Federal agencies responsible 
for monitoring and implementing the trade 
agreement, 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1019 
including personnel required by the Office of the United States 
Trade Representative, the Department of Commerce, the 
Department of Agriculture (including additional personnel 
required to implement sanitary and ph3d:osanitary measures 
in order to obtain market access for United States exports), 
the Department of the Treasury, and such other agencies as 
may be necessary. 
(3) CUSTOMS INFRASTRUCTURE REQUIREMENTS.—A descrip-
tion of the additional equipment and facilities needed by the 
United States Customs Service. 
(4) IMPACT ON STATE AND LOCAL GOVERNMENTS.—A descrip-
tion of the impact the trade agreement will have on State 
and local governments as a result of increases in trade. 
(5) COST ANALYSIS.—An analysis of the costs associated 
with each of the items listed in paragraphs (1) through (4). 
(b) BUDGET SUBMISSION.—The President shall include a request President, 
for the resources necessary to support the plan described in sub-
section (a) in the first budget that the President submits to the 
Congress after the submission of the plan. 
SEC. 2109. COMMITTEE STAFF. 
19 USC 3809. 
The grant of trade promotion authority under this title is 
likely to increase the activities of the primary committees of jurisdic-
tion in the area of international trade. In addition, the creation 
of the Congressional Oversight Group under section 2107 will 
increase the participation of a broader number of Members of Con-
gress in the formulation of United States trade policy and oversight 
of the international trade agenda for the United States. The primary 
committees of jurisdiction should have adequate staff to accommo-
date these increases in activities. 
SEC. 2110. CONFORMING AMENDMENTS. 
(a) IN GENERAL.—Title I of the Trade Act of 1974 (19 U.S.C. 
2111 et seq.) is amended as follows: 
(1) IMPLEMENTING BILL.— 
(A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended 
by striking "section 1103(a)(1) of the Omnibus Trade and 
Competitiveness Act of 1988, or section 282 of the Uruguay 
Round Agreements Act" and inserting "section 282 of the 
Uruguay Round Agreements Act, or section 2105(a)(1) of 
the Bipartisan Trade Promotion Authority Act of 2002". 
(B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended 
by striking "or section 282 of the Uruguay Round Agree-
ments Act" and inserting ", section 282 of the Uruguay 
Round Agreements Act, or section 2105(a)(1) of the Bipar-
tisan Trade Promotion Authority Act of 2002". 
(2) ADVICE FROM INTERNATIONAL TRADE COMMISSION.—Sec-
tion 131 (19 U.S.C. 2151) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking "section 123 of 
this Act or section 1102 (a) or (c) of the Omnibus 
Trade and Competitiveness Act of 1988," and inserting 
"section 123 of this Act or section 2103(a) or (b) of 
the Bipartisan Trade Promotion Authority Act of 
2002,"; and 
(ii) in paragraph (2), by striking "section 1102 
(b) or (c) of the Omnibus Trade and Competitiveness 
116 STAT. 1020 
PUBLIC LAW 107-210—AUG. 6, 2002 
Act of 1988" and inserting "section 2103(b) of the Bipar-
tisan Trade Promotion Authority Act of 2002"; 
(B) in subsection (b), by striking "section 1102(a)(3)(A)" 
and inserting "section 2103(a)(3)(A) of the Bipartisan Trade 
Promotion Authority Act of 2002"; and 
(C) in subsection (c), by striking "section 1102 of the 
Omnibus Trade and Competitiveness Act of 1988," and 
inserting "section 2103 of the Bipartisan Trade Promotion 
Authority Act of 2002,". 
(3) HEARINGS AND ADVICE.—Sections 132, 133(a), and 134(a) 
(19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
striking "section 1102 of the Omnibus Trade and Competitive-
ness Act of 1988," each place it appears and inserting "section 
2103 of the Bipartisan Trade Promotion Authority Act of 2002,". 
(4) PREREQUISITES FOR OFFERS.—Section 134(b) (19 U.S.C. 
2154(b)) is amended by striking "section 1102 of the Omnibus 
Trade and Competitiveness Act of 1988" and inserting "section 
2103 of the Bipartisan Trade Promotion Authority Act of 2002". 
(5) ADVICE FROM PRIVATE AND PUBLIC SECTORS.—Section 
135 (19 U.S.C. 2155) is amended— 
(A) in subsection (a)(1)(A), by striking "section 1102 
of the Omnibus Trade and Competitiveness Act of 1988" 
and inserting "section 2103 of the Bipartisan Trade Pro-
motion Authority Act of 2002"; 
(B) in subsection (e)(1)— 
(i) by striking "section 1102 of the Omnibus Trade 
and Competitiveness Act of 1988" each place it appears 
and inserting "section 2103 of the Bipartisan Trade 
Promotion Authority Act of 2002"; and 
(ii) by striking "section 1103(a)(1)(A) of such Act 
of 1988" and inserting "section 2105(a)(1)(A) of the 
Bipartisan Trade Promotion Authority Act of 2002"; 
and 
(C) in subsection (e)(2), by striking "section 1101 of 
the Omnibus Trade and Competitiveness Act of 1988" and 
inserting "section 2102 of the Bipartisan Trade Promotion 
Authority Act of 2002". 
(6) TRANSMISSION OF AGREEMENTS TO CONGRESS.—Section 
162(a) (19 U.S.C. 2212(a)) is amended by striking "or under 
section 1102 of the Omnibus Trade and Competitiveness Act 
of 1988" and inserting "or under section 2103 of the Bipartisan 
Trade Promotion Authority Act of 2002". 
19 use 3810. 
(b) APPLICATION OF CERTAIN PROVISIONS.—For purposes of 
applying sections 125, 126, and 127 of the Trade Act of 1974 
(19 U.S.C. 2135, 2136(a), and 2137)— 
(1) any trade agreement entered into under section 2103 
shall be treated as an agreement entered into under section 
101 or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 
2111 or 2112); and 
(2) any proclamation or Executive order issued pursuant 
to a trade agreement entered into under section 2103 shall 
be treated as a proclamation or Executive order issued pursuant 
to a trade agreement entered into under section 102 of the 
Trade Act of 1974. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1021 
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY. 
19 USC 3811. 
(a) IN GENERAL.—Not later than 1 year after the date of enact- Deadline. 
ment of this Act, the International Trade Commission shall report 
to the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives regarding 
the economic impact on the United States of the trade agreements 
described in subsection (b). 
(b) AGREEMENTS.—The trade agreements described in this sub-
section are the following: 
(1) The United States-Israel Free Trade Agreement. 
(2) The United States-Canada Free Trade Agreement. 
(3) The North American Free Trade Agreement. 
(4) The Uruguay Round Agreements. 
(5) The Tokyo Round of Multilateral Trade Negotiations. 
SEC. 2112. INTERESTS OF SMALL BUSBSfESS. 
19 USC 3812. 
The Assistant United States Trade Representative for Industry 
and Telecommunications shall be responsible for ensuring that the 
interests of small business are considered in all trade negotiations 
in accordance with the objective described in section 2102(a)(8). 
It is the sense of the Congress that the small business functions 
should be reflected in the title of the Assistant United States 
Trade Representative assigned the responsibility for small business. 
SEC. 2113. DEFINITIONS. 
19 USC 3813. 
In this title: 
(1) AGREEMENT ON AGRICULTURE.—The term "Agreement 
on Agriculture" means the agreement referred to in section 
101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(2)). 
(2) AGREEMENT ON SAFEGUARDS.—The term "Agreement 
on Safeguards means the agreement referred to in section 
101(d)(12) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(12)). 
(2) AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEAS-
URES.—The term "Agreement on Subsidies and Countervailing 
Measures" means the agreement referred 
to in 
section 
101(d)(13) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(13)). 
(4) ANTIDUMPING AGREEMENT.—The term "Antidumping 
Agreement" means the Agreement on Implementation of Article 
VI of the General Agreement on Tariffs and Trade 1994 referred 
to in section 101(d)(7) of the Uruguay Round Agreements Act 
(19 U.S.C. 3511(d)(7)). 
(5) APPELLATE BODY.—The term "Appellate Body" means 
the Appellate Body established under Article 17.1 of the Dispute 
Settlement Understanding. 
(6) CORE LABOR STANDARDS.—The term "core labor stand-
ards" means— 
(A) the right of association; 
(B) the right to organize and bargain collectively; 
(C) a prohibition on the use of any form of forced 
or compulsory labor; 
(D) a minimum age for the employment of children; 
and 
116 STAT. 1022 
PUBLIC LAW 107-210—AUG. 6, 2002 
(E) acceptable conditions of work with respect to min-
imum wages, hours of work, and occupational safety and 
health. 
(7) DISPUTE SETTLEMENT UNDERSTANDING.—The term "Dis-
pute Settlement Understanding" means the Understanding on 
Rules and Procedures Governing the Settlement of Disputes 
referred to in section 101(d)(16) of the Uruguay Round Agree-
(8) GATT 1994.—The term "GATT 1994" has the meaning 
given that term in section 2 of the Uruguay Round Agreements 
Act(19U.S.C. 3501). 
(9) ILO.—The term "ILO" means the International Labor 
Organization. 
(10) IMPORT SENSITIVE AGRICULTURAL PRODUCT.—The term 
"import sensitive agricultural product" means an agricultural 
product— 
(A) with respect to which, as a result of the Uruguay 
Round Agreements the rate of duty was the subject of 
tariff reductions by the United States and, pursuant to 
such Agreements, was reduced on January 1, 1995, to 
a rate that was not less than 97.5 percent of the rate 
of duty that applied to such article on December 31, 1994; 
or 
(B) which was subject to a tariff-rate quota on the 
date of the enactment of this Act. 
(11) UNITED STATES PERSON.—The term "United States per-
son" means— 
(A) a United States citizen; 
(B) a partnership, corporation, or other legal entity 
organized under the laws of the United States; and 
(C) a partnership, corporation, or other legal entity 
that is organized under the laws of a foreign country and 
is controlled by entities described in subparagraph (B) or 
United States citizens, or both. 
(12) URUGUAY ROUND AGREEMENTS.—The term "Uruguay 
Round Agreements" has the meaning given that term in section 
2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)). 
(13) WORLD TRADE ORGANIZATION; WTO.—The terms "World 
Trade Organization" and "WTO" mean the organization estab-
lished pursuant to the WTO Agreement. 
(14) WTO AGREEMENT.—The term "WTO Agreement" 
means the Agreement Establishing the World Trade Organiza-
tion entered into on April 15, 1994. 
(15) WTO MEMBER.—The term "WTO member" has the 
meaning given that term in section 2(10) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(10)). 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1023 
DIVISION C—ANDEAN TRADE 
PREFERENCE ACT 
TITLE XXXI—ANDEAN TRADE 
PREFERENCE 
SEC. 3101. SHORT TITLE. 
This title may be cited as the "Andean Trade Promotion and 
Drug Eradication Act". 
SEC. 3102. FINDINGS. 
Congress makes the following findings: 
(1) Since the Andean Trade Preference Act was enacted 
in 1991, it has had a positive impact on United States trade 
with Bolivia, Colombia, Ecuador, and Peru. Two-way trade 
has doubled, with the United States serving as the leading 
source of imports and leading export market for each of the 
Andean beneficiary countries. This has resulted in increased 
jobs and expanded export opportunities in both the United 
States and the Andean region. 
(2) The Andean Trade Preference Act has been a key ele-
ment in the United States counternarcotics strategy in the 
Andean region, promoting export diversification and broad-
based economic development that provides sustainable economic 
alternatives to drug-crop production, strengthening the legiti-
mate economies of Andean countries and creating viable alter-
natives to illicit trade in coca. 
(3) Notwithstanding the success of the Andean Trade Pref-
erence Act, the Andean region remains threatened by political 
and economic instability and fragility, vulnerable to the con-
sequences of the drug war and fierce global competition for 
its legitimate trade. 
(4) The continuing instability in the Andean region poses 
a threat to the security interests of the United States and 
the world. This problem has been partially addressed through 
foreign aid, such as Plan Colombia, enacted by Congress in 
2000. However, foreign aid alone is not sufficient. Enhancement 
of legitimate trade with the United States provides an alter-
native means for reviving and stabilizing the economies in 
the Andean region. 
(5) The Andean Trade Preference Act constitutes a tangible 
commitment by the United States to the promotion of pros-
perity, stability, and democracy in the beneficiary countries. 
(6) Renewal and enhancement of the Andean Trade Pref-
erence Act will bolster the confidence of domestic private enter-
prise and foreign investors in the economic prospects of the 
region, ensuring that legitimate private enterprise can be the 
engine of economic development and political stability in the 
region. 
(7) Each of the Andean beneficiary countries is committed 
to conclude negotiation of a Free Trade Area of the Americas 
by the year 2005, as a means of enhancing the economic security 
of the region. 
(8) Temporarily enhancing trade benefits for Andean bene-
ficiary countries will promote the growth of free enterprise 
Andean Trade 
Promotion and 
Drug Eradication 
Act. 
19 u s e 3201 
note. 
19 u s e 3201 
note. 
116 STAT. 1024 
PUBLIC LAW 107-210—AUG. 6, 2002 
and economic opportunity in these countries and serve the 
security interests of the United States, the region, and the 
world. 
SEC. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT. 
(a) ELIGIBILITY OF CERTAIN ARTICLES.—Section 204 
of 
the 
Andean Trade Preference Act (19 U.S.C. 3203) is amended— 
(1) by striking subsection (c) and redesignating subsections 
(d) through (g) as subsections (c) through (f), respectively; and 
(2) by amending subsection (b) to read as follows: 
"(b) EXCEPTIONS AND SPECIAL RULES.— 
"(1) CERTAIN ARTICLES THAT ARE NOT IMPORT-SENSITIVE.— 
The President may proclaim duty-free treatment under this 
title for any article described in subparagraph (A), (B), (C), 
or (D) that is the growth, product, or manufacture of an 
ATPDEA beneficiary country, that is imported directly into 
the customs territory of the United States from an ATPDEA 
beneficiary country, and that meets the requirements of this 
section, if the President determines that such article is not 
import-sensitive in the context of imports from ATPDEA bene-
ficiary countries: 
"(A) Footwear not designated at the time of the effec-
tive date of this title as eligible for purposes of the general-
ized system of preferences under title V of the Trade Act 
of 1974. 
"(B) Petroleum, or any product derived from petroleum, 
provided for in headings 2709 and 2710 of the HTS. 
"(C) Watches and watch parts (including cases, brace-
lets and straps), of whatever type including, but not limited 
to, mechanical, quartz digital or quartz analog, if such 
watches or watch parts contain any material which is the 
product of any country with respect to which HTS column 
2 rates of duty apply. 
"(D) Handbags, luggage, flat goods, work gloves, and 
leather wearing apparel that were not designated on 
August 5, 1983, as eligible articles for purposes of the 
generalized system of preferences under title V of the Trade 
Act of 1974. 
"(2) EXCLUSIONS.—Subject to paragraph (3), duty-free treat-
ment under this title may not be extended to— 
"(A) textiles and apparel articles which were not 
eligible articles for purposes of this title on January 1, 
1994, as this title was in effect on that date; 
"(B) rum and tafia classified in subheading 2208.40 
of the HTS; 
"(C) sugars, syrups, and sugar-containing products sub-
ject to over-quota duty rates under applicable tariff-rate 
quotas; or 
"(D) tuna prepared or preserved in any manner in 
airtight containers, except as provided in paragraph (4). 
"(3) APPAREL ARTICLES AND CERTAIN TEXTILE ARTICLES.— 
"(A) IN GENERAL.—Apparel articles that are imported 
directly into the customs territory of the United States 
from an ATPDEA beneficiary country shall enter the 
United States free of duty and free of any quantitative 
restrictions, limitations, or consultation levels, but only 
if such articles are described in subparagraph (B). 
P U B L I C LAW 107-210—AUG. 6, 2002 
116 STAT. 1025 
"(B) COVERED ARTICLES.—The apparel articles referred 
to in subparagraph (A) are the following: 
"(i) APPAREL ARTICLES ASSEMBLED FROM PRODUCTS 
OF THE UNITED STATES OR ATPDEA BENEFICIARY COUN-
TRIES OR PRODUCTS NOT AVAILABLE IN COMMERCIAL 
QUANTITIES.—^Apparel 
articles 
sewn 
or 
otherwise 
assembled in 1 or more ATPDEA beneficiary countries, 
or the United States, or both, exclusively from any 
one or any combination of the following: 
"(I) 
Fabrics 
or 
fabric 
components 
wholly 
formed, or components knit-to-shape, in the United 
States, from yarns wholly formed in the United 
States or 1 or more ATPDEA beneficiary countries 
(including fabrics not formed from yarns, if such 
fabrics are classifiable under heading 5602 or 5603 
of the HTS and are formed in the United States). 
Apparel articles shall qualify under this subclause 
only if all dyeing, printing, and finishing of the 
fabrics from which the articles are assembled, if 
the fabrics are knit fabrics, is carried out in the 
United States. Apparel articles shall qualify under 
this subclause only if all dyeing, printing, and 
finishing of the fabrics from which the articles 
are assembled, if the fabrics are woven fabrics, 
is carried out in the United States. 
"(II) Fabrics or fabric components formed or 
components knit-to-shape, in 1 or more ATPDEA 
beneficiary countries, from yarns wholly formed 
in 1 or more ATPDEA beneficiary countries, if 
such fabrics (including fabrics not formed 
from 
yarns, if such fabrics are classifiable under heading 
5602 or 5603 of the HTS and are formed in 1 
or more ATPDEA beneficiary countries) or compo-
nents are in chief value of llama, alpaca, or vicuiia. 
"(Ill) Fabrics or yarns, to the extent 
that 
apparel articles of such fabrics or yarns would 
be eligible for preferential 
treatment, 
without 
regard to the source of the fabrics or yarns, under 
Annex 401 of the NAFTA. 
"(ii) 
ADDITIONAL FABRICS.—At the request of 
any 
interested party, the President is authorized to pro-
claim additional fabrics and yarns as eligible for pref-
erential treatment under clause (i)(III) if— 
"(I) the President determines that such fabrics 
or yarns cannot be supplied by the 
domestic 
industry in commercial quantities in a timely 
manner; 
"(II) 
the 
President 
has 
obtained 
advice 
regarding the proposed action from the appropriate 
advisory committee established under section 135 
of the Trade Act of 1974 (19 U.S.C. 2155) and 
the United States International Trade Commis-
sion; 
"(III) within 60 days after the request, the 
President has submitted a report to the Committee 
on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate 
116 STAT. 1026 
P U B L I C LAW 107-210—AUG. 6, 2002 
that sets forth the action proposed to be proclaimed 
and the reasons for such action, and the advice 
obtained under subclause (II); 
"(IV) a period of 60 calendar days, beginning 
with the first day on which the President has 
met the requirements 
of subclause 
(III), has 
expired; and 
"(V) the President has consulted with such 
committees regarding the proposed action during 
the period referred to in subclause (III), 
"(iii) APPAREL ARTICLES ASSEMBLED IN i OR MORE 
ATPDEA BENEFICIARY COUNTRIES FROM REGIONAL FAB-
RICS OR REGIONAL COMPONENTS.—(I) Subject to the 
limitation set forth in subclause (II), apparel articles 
sewn or otherwise assembled in 1 or more ATPDEA 
beneficiary countries from fabrics or from fabric compo-
nents formed or from components knit-to-shape, in 1 
or more ATPDEA beneficiary countries, from yarns 
wholly formed in the United States or 1 or more 
ATPDEA beneficiary countries (including fabrics not 
formed from yarns, if such fabrics are classifiable under 
heading 5602 or 5603 of the HTS and are formed 
in 1 or more ATPDEA beneficiary countries), whether 
or not the apparel articles are also made from any 
of the fabrics, fabric components formed, or components 
knit-to-shape described in clause (i) (unless the apparel 
articles are made exclusively from any of the fabrics, 
fabric components formed, or components knit-to-shape 
described in clause (i)). 
"(II) The preferential treatment referred to in sub-
clause (I) shall be extended in the 1-year period begin-
ning October 1, 2002, and in each of the 4 succeeding 
1-year periods, to imports of apparel articles in an 
amount not to exceed the applicable percentage of the 
aggregate square meter equivalents of all apparel arti-
cles imported into the United States in the preceding 
12-month period for which data are available. 
"(Ill) For purposes of subclause (II), the term 
'applicable percentage' means 2 percent for the 1-year 
period beginning October 1, 2002, increased in each 
of the 4 succeeding 1-year periods by equal increments, 
so that for the period beginning October 1, 2006, the 
applicable percentage does not exceed 5 percent. 
"(iv) 
HANDLOOMED, 
HANDMADE, AND FOLKLORE 
ARTICLES.—^A handloomed, 
handmade, 
or 
folklore 
article of an ATPDEA beneficiary country identified 
under subparagraph (C) that is certified as such by 
the competent authority of such beneficiary country. 
"(v) CERTAIN OTHER APPAREL ARTICLES.— 
"(I) 
GENERAL 
RULE.—Any 
apparel 
article 
classifiable under subheading 6212.10 of the HTS, 
except for articles entered under clause (i), (ii), 
(iii), or (iv), if the article is both cut and sewn 
or otherwise assembled in the United States, or 
one or more ATPDEA beneficiary countries, or 
both. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1027 
"(ID LIMITATION.—During the 1-year period 
beginning on October 1, 2003, and during each 
of the 3 succeeding 1-year periods, apparel articles 
described in subclause (I) of a producer or an entity 
controlling production shall be eligible for pref-
erential treatment under this paragraph only if 
the aggregate cost of fabrics (exclusive of all 
findings and trimmings) formed in the United 
States that are used in the production of all such 
articles of that producer or entity that are entered 
and eligible under this clause during the preceding 
1-year period is at least 75 percent of the aggregate 
declared customs value of the fabric (exclusive of 
all findings and trimmings) contained in all such 
articles of that producer or entity that are entered 
and eligible under this clause during the preceding 
1-year period. 
"(Ill) DEVELOPMENT OF PROCEDURE TO ENSURE 
COMPLIANCE.—The United States Customs Service 
shall develop and implement methods and proce-
dures to ensure ongoing compliance with the 
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or an entity 
controlling production has not satisfied 
such 
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer 
or entity shall be ineligible for preferential treat-
ment under this paragraph during any succeeding 
1-year period until the aggregate cost of fabrics 
(exclusive of all findings and trimmings) formed 
in the United States that are used in the produc-
tion of such articles of that producer or entity 
entered during the preceding 1-year period is at 
least 85 percent of the aggregate declared customs 
value of the fabric (exclusive of all findings and 
trimmings) contained in all such articles of that 
producer or entity that are entered and eligible 
under this clause during the preceding 1-year 
period. 
"(vi) SPECIAL RULES.— 
"(I) 
EXCEPTION 
FOR 
FINDINGS 
AND 
TRIM-
MINGS.—^An article otherwise eligible for pref-
erential treatment under this paragraph shall not 
be ineligible for such treatment because the article 
contains findings or trimmings of foreign origin, 
if such findings and trimmings do not exceed 25 
percent of the cost of the components of the assem-
bled product. Examples of findings and trimmings 
are sewing thread, hooks and eyes, snaps, buttons, 
'bow buds', decorative lace, trim, elastic strips, zip-
pers, including zipper tapes and labels, and other 
similar products. 
"(II) 
CERTAIN INTERLINING.—(aa) 
An 
article 
otherwise eligible for preferential treatment under 
this paragraph shall not be ineligible for such 
treatment because the article contains certain 
interlinings of foreign origin, if the value of such 
116 STAT. 1028 
PUBLIC LAW 107-210—AUG. 6, 2002 
interlinings (and any findings and trimmings) does 
not exceed 25 percent of the cost of the components 
of the assembled article. 
"(bb) Interlinings eligible for the treatment 
described in division (aa) include only a chest type 
plate, 'h3mio' piece, or 'sleeve header', of woven 
or weft-inserted warp knit construction and of 
coarse animal hair or man-made filaments. 
"(cc) The treatment described in this subclause 
shall terminate if the President makes a deter-
mination that United States manufacturers are 
producing such interlinings in the United States 
in commercial quantities. 
"(Ill) DE MINIMIS RULE.—^An article that would 
otherwise be ineligible for preferential treatment 
under this subparagraph because the article con-
tains yarns not wholly formed in the United States 
or in one or more ATPDEA beneficiary countries 
shall not be ineligible for such treatment if the 
total weight of all such yarns is not more than 
7 percent of the total weight of the good. 
"(IV) SPECIAL ORIGIN RULE.—An article other-
wise eligible for preferential treatment under 
clause (i) or (iii) shall not be ineligible for such 
treatment because the article contains nylon fila-
ment yam (other than elastomeric yarn) that is 
classifiable 
under 
subheading 
5402.10.30, 
5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 
5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 
5402.61.00 of the HTS from a country that is a 
party to an agreement with the United States 
establishing a free trade area, which entered into 
force before January 1, 1995. 
"(vii) TEXTILE LUGGAGE.—Textile luggage— 
"(I) assembled in an ATPDEA beneficiary 
country from fabric wholly formed and cut in the 
United States, from yarns wholly formed in the 
United States, that is entered under subheading 
9802.00.80 ofthe HTS; or 
"(II) assembled from fabric cut in an ATPDEA 
beneficiary country from fabric wholly formed in 
the United States from yams wholly formed in 
the United States. 
"(C) HANDLOOMED, HANDMADE, AND FOLKLORE ARTI-
CLES.—For purposes of subparagraph (B)(iv), the President 
shall consult with representatives of the ATPDEA bene-
ficiary countries concerned for the purpose of identifying 
particular textile and apparel goods that are mutually 
agreed upon as being handloomed, handmade, or folklore 
goods of a kind described in section 2.3(a), (b), or (c) of 
the Annex or Appendix 3. I.E. 11 ofthe Annex. 
"(D) PENALTIES FOR TRANSSHIPMENT.— 
"(i) PENALTIES FOR EXPORTERS.—If the President 
determines, based on sufficient evidence, that an 
exporter has engaged in transshipment with respect 
to apparel articles from an ATPDEA beneficiary 
country, then the President shall deny all benefits 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1029 
under this title to such exporter, and any successor 
of such exporter, for a period of 2 years. 
"(ii) PENALTIES FOR COUNTRIES.—Whenever 
the 
President finds, based on sufficient evidence, that 
transshipment has occurred, the President 
shall 
request that the ATPDEA beneficiary country or coun-
tries through whose territory the transshipment has 
occurred take all necessary and appropriate actions 
to prevent such transshipment. If the President deter-
mines that a country is not taking such actions, the 
President shall reduce the quantities of apparel articles 
that may be imported into the United States from 
such country by the quantity of the transshipped arti-
cles multiplied by 3, to the extent consistent with 
the obligations of the United States under the WTO. 
"(iii) TRANSSHIPMENT DESCRIBED.—Transshipment 
within the meaning of this subparagraph has occurred 
when preferential treatment under subparagraph (A) 
has been claimed for an apparel article on the basis 
of material false information concerning the country 
of origin, manufacture, processing, or assembly of the 
article or any of its components. For purposes of this 
clause, false information is material if disclosure of 
the true information would mean or would have meant 
that the article is or was ineligible for preferential 
treatment under subparagraph (A). 
"(E) BILATERAL EMERGENCY ACTIONS.— 
"(i) IN GENERAL.—The President may take bilateral 
emergency tariff actions of a kind described in section 
4 of the Annex with respect to any apparel article 
imported from an ATPDEA beneficiary country if the 
application of tariff treatment under subparagraph (A) 
to such article results in conditions that would be 
cause for the taking of such actions under such section 
4 with respect to a like article described in the same 
8-digit subheading of the HTS that is imported from 
Mexico. 
"(ii) RULES RELATING TO BILATERAL EMERGENCY 
ACTION.—For purposes of applying bilateral emergency 
action under this subparagraph— 
"(I) the requirements of paragraph (5) of sec-
tion 4 of the Annex (relating to providing com-
pensation) shall not apply; 
"(II) the term 'transition period' in section 4 
of the Annex shall mean the period ending 
December 31, 2006; and 
"(III) the requirements to consult specified in 
section 4 of the Annex shall be treated as satisfied 
if the President requests consultations with the 
ATPDEA beneficiary country in question and the 
country does not agree to consult within the time 
period specified under section 4 of the Annex. 
"(4) TUNA.— 
"(A) GENERAL RULE.—Tuna that is harvested by United 
States vessels or ATPDEA beneficiary country vessels, that 
is prepared or preserved in any manner, in an ATPDEA 
116 STAT. 1030 
PUBLIC LAW 107-210—AUG. 6, 2002 
beneficiary country, in foil or other flexible airtight con-
tainers weighing with their contents not more than 6.8 
kilograms each, and that is imported directly into the cus-
toms territory of the United States from an ATPDEA bene-
ficiary country, shall enter the United States free of duty 
and free of any quantitative restrictions. 
"(B) DEFINITIONS.—In this paragraph— 
"(i) UNITED STATES VESSEL.—A 'United 
States 
vessel' is a vessel having a certificate of documentation 
with a fishery endorsement under chapter 121 of title 
46, United States Code. 
"(ii) ATPDEA VESSEL.—An ATPDEA vessel' is a 
vessel— 
"(I) which is registered or recorded in an 
ATPDEA beneficiary country; 
"(II) which sails under the flag of an ATPDEA 
beneficiary country; 
"(III) which is at least 75 percent owned by 
nationals of an ATPDEA beneficiary country or 
by a company having its principal place of business 
in an ATPDEA beneficiary country, of which the 
manager or managers, chairman of the board of 
directors or of the supervisory board, and the 
majority of the members of such boards are 
nationals of an ATPDEA beneficiary country and 
of which, in the case of a company, at least 50 
percent of the capital is owned by an ATPDEA 
beneficiary country or by public bodies or nationals 
of an ATPDEA beneficiary country; 
"(IV) of which the master and officers are 
nationals of an ATPDEA beneficiary country; and 
"(V) of which at least 75 percent of the crew 
are nationals of an ATPDEA beneficiary country. 
"(5) CUSTOMS PROCEDURES.— 
"(A) IN GENERAL.— 
"(i) REGULATIONS.—Any importer that claims pref-
erential treatment under paragraph (1), (3), or (4) shall 
comply with customs procedures similar in all material 
respects to the requirements of Article 502(1) of the 
NAFTA as implemented pursuant to United States 
law, in accordance with regulations promulgated by 
the Secretary of the Treasury. 
"(ii) DETERMINATION.— 
"(I) IN GENERAL.—In order to qualify for the 
preferential treatment under paragraph (1), (3), 
or (4) and for a Certificate of Origin to be valid 
with respect to any article for which such treat-
ment is claimed, there shall be in effect a deter-
mination by the President that each country 
described in subclause (II)— 
"(aa) has implemented and follows, or 
"(bb) is making 
substantial 
progress 
toward implementing and following, 
procedures and requirements similar in all mate-
rial respects to the relevant procedures and 
requirements under chapter 5 of the NAFTA. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1031 
"(II) 
COUNTRY 
DESCRIBED.—A country is 
described in this subclause if it is an ATPDEA 
beneficiary country— 
"(aa) from which the article is exported; 
or 
"(bb) in which materials used in the 
production of the article originate or in which 
the article or such materials undergo produc-
tion that contributes to a claim that the article 
is eligible for preferential treatment under 
paragraph (1), (3), or (4). 
"(B) CERTIFICATE OF ORIGIN.—The Certificate of Origin 
that otherwise would be required pursuant to the provisions 
of subparagraph (A) shall not be required in the case of 
an article imported under paragraph (1), (3), or (4) if such 
Certificate of Origin would not be required under Article 
503 of the NAFTA (as implemented pursuant to United 
States law), if the article were imported from Mexico. 
"(C) REPORT ON COOPERATION OF ATPDEA COUNTRIES 
CONCERNING CIRCUMVENTION.—The United States Commis-
sioner of Customs shall conduct a study analyzing the 
extent to which each ATPDEA beneficiary country— 
"(i) has cooperated fully with the United States, 
consistent with its domestic laws and procedures, in 
instances of circumvention or alleged circumvention 
of existing quotas on imports of textile and apparel 
goods, to establish necessary relevant facts in the 
places of import, export, and, where applicable, trans-
shipment, including investigation of circumvention 
practices, exchanges of documents, correspondence, 
reports, and other relevant information, to the extent 
such information is available; 
"(ii) has taken appropriate measures, consistent 
with its domestic laws and procedures, 
against 
exporters and importers involved in instances of false 
declaration concerning quantities, description, classi-
fication, or origin of textile and apparel goods; and 
"(iii) has penalized the individuals and entities 
involved in any such circumvention, consistent with 
its domestic laws and procedures, and has worked 
closely to seek the cooperation of any third country 
to prevent such circumvention from taking place in 
that third country. 
The Commissioner of Customs shall submit to the Con- Deadline, 
gress, not later than October 1, 2003, a report on the Reports, 
study conducted under this subparagraph. 
"(6) DEFINITIONS.—In this subsection— 
"(A) ANNEX.—The term 'the Annex' means Annex 300-
B of the NAFTA. 
"(B) 
ATPDEA 
BENEFICIARY 
COUNTRY.—The 
term 
ATPDEA beneficiary country' means any 'beneficiary 
country', as defined in section 203(a)(1) of this title, which 
the President designates as an ATPDEA 
beneficiary 
country, taking into account the criteria contained in sub-
sections (c) and (d) of section 203 and other appropriate 
criteria, including the following: 
116 STAT. 1032 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(i) Whether the beneficiary country has dem-
onstrated a commitment to— 
"(I) undertake its obUgations under the WTO, 
including those agreements hsted in section 101(d) 
of the Uruguay Round Agreements Act, on or 
ahead of schedule; and 
"(11) participate in negotiations toward the 
completion of the FTAA or another free trade 
agreement. 
"(ii) The extent to which the country provides 
protection of intellectual property rights consistent 
with or greater than the protection afforded under 
the Agreement on Trade-Related Aspects of Intellectual 
Property Rights described in section 101(d)(15) of the 
Uruguay Round Agreements Act. 
"(iii) The extent to which the country provides 
internationally recognized worker rights, including— 
"(I) the right of association; 
"(II) the right to organize and bargain collec-
tively; 
"(III) a prohibition on the use of any form 
of forced or compulsory labor; 
"(IV) a minimum age for the employment of 
children; and 
"(V) acceptable conditions of work with respect 
to minimum wages, hours of work, and occupa-
tional safety and health. 
"(iv) Whether the country has implemented its 
commitments to eliminate the worst forms of child 
labor, as defined in section 507(6) of the Trade Act 
of 1974. 
"(v) The extent to which the country has met the 
countemarcotics certification criteria set forth in sec-
tion 490 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2291J) for eligibility for United States assist-
ance. 
"(vi) The extent to which the country has taken 
steps to become a party to and implements the Inter-
American Convention Against Corruption. 
"(vii) The extent to which the country— 
"(I) applies transparent, nondiscriminatory, 
and 
competitive 
procedures 
in 
government 
procurement equivalent to those contained in the 
Agreement on Government Procurement described 
in section 101(d)(17) of the Uruguay Round Agree-
ments Act; and 
"(II) contributes to efforts in international fora 
to develop and implement international rules in 
transparency in government procurement. 
"(viii) The extent to which the country has taken 
steps to support the efforts of the United States to 
combat terrorism. 
"(C) NAFTA.—The term 'NAFTA means the North 
American Free Trade Agreement entered into between the 
United States, Mexico, and Canada on December 17, 1992. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1033 
"(D) WTO.—The term 'WTO' has the meaning given 
that term in section 2 of the Uruguay Round Agreements 
Act (19 U.S.C. 3501). 
"(E) ATPDEA.—The term ATPDEA means the Andean 
Trade Promotion and Drug Eradication Act. 
"(F) FTAA..—The term TTAA' means the Free Trade 
Area for the Americas.". 
(b) DETERMINATION REGARDING RETENTION OF DESIGNATION.— 
Section 203(e)(1) of the Andean Trade Preference Act (19 U.S.C. 
3202(e)(1)) is amended— 
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively; 
(2) by inserting "(A)" after "(1)"; and 
(3) by adding at the end the following: 
"(B) The President may, after the requirements of paragraph 
(2) have been met— 
"(i) withdraw or suspend the designation of any country 
as an ATPDEA beneficiary country, or 
"(ii) withdraw, suspend, or limit the application of pref-
erential treatment under section 204(b)(1), (3), or (4) to any 
article of any country, 
if, after such designation, the President determines that, as a 
result of changed circumstances, the performance of such country 
is not satisfactory 
under the criteria set forth 
in 
section 
204(b)(6)(B).". 
(c) CONFORMING AMENDMENTS.—(1) Section 202 of the Andean 
Trade Preference Act (19 U.S.C. 3201) is amended by inserting 
"(or other preferential treatment)" after "treatment". 
(2) Section 204(a) of the Andean Trade Preference Act (19 
U.S.C. 3203(a)) is amended— 
(A) in paragraph (1)— 
(i) by inserting "(or otherwise provided for)" after "eligi-
bility"; and 
(ii) by inserting "(or preferential treatment)" after 
"duty-free treatment"; and 
(B) in paragraph (2), by striking "subsection (a)" and 
inserting "paragraph (1)". 
(d) PETITIONS FOR REVIEW.— 
19 use 3202 
(1) IN GENERAL.—Not later than 180 days after the date note 
of the enactment of this Act, the President shall promulgate 
R^^ja'tfons 
regulations regarding the review of eligibility of articles and 
countries under the Andean Trade Preference Act, consistent 
with section 203(e) of such Act, as amended by this title. 
(2) CONTENT OF REGULATIONS.—The regulations shall be 
similar to the regulations regarding eligibility under the 
generalized system of preferences under title V of the Trade 
Act of 1974 with respect to the timetable for reviews and 
content, and shall include procedures for requesting with-
drawal, suspension, or limitations of preferential duty treat-
ment under the Andean Trade Preference Act, conducting 
reviews of such requests, and implementing the results of the 
reviews. 
(e) REPORTING REQUIREMENTS.—Section 203(f) of the Andean 
Trade Preference Act (19 U.S.C. 3202(f)) is amended to read as 
follows: 
"(f) REPORTING REQUIREMENTS.— 
116 STAT. 1034 
PUBLIC LAW 107-210—AUG. 6, 2002 
Deadline. 
"(1) IN GENERAL.—Not later than April 30, 2003, and every 
2 years thereafter during the period this title is in effect, 
the United States Trade Representative shall submit to the 
Congress a report regarding the operation of this title, 
including— 
"(A) with respect to subsections (c) and (d), the results 
of a general review of beneficiary countries based on the 
considerations described in such subsections; and 
"(B) the performance of each beneficiary country or 
ATPEA beneficiary country, as the case may be, under 
the criteria set forth in section 204(b)(6)(B). 
Federal Register, 
"(2) PUBLIC COMMENT.—Before submitting the 
report 
publication. 
described in paragraph (1), the United States Trade Represent-
ative shall publish a notice in the Federal Register requesting 
public comments on whether beneficiary countries are meeting 
the criteria listed in section 204(b)(6)(B).". 
SEC. 3104. TERMINATION. 
(a) IN GENERAL.—Section 208 of the Andean Trade Preference 
Act (19 U.S.C. 3206) is amended to read as follows: 
"SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT. 
"No duty-free 
treatment 
or other preferential 
treatment 
extended to beneficiary countries under this title shall remain in 
effect after December 31, 2006.". 
19 use 3206 
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND 
note. 
R E L I Q U I D A T I O N S . — 
(1) IN GENERAL.—Notwithstanding section 514 of the Tariff 
Act of 1930 or any other provision of law, and subject to 
paragraph (3), the entry— 
(A) of any article to which duty-free treatment (or 
preferential treatment) under the Andean Trade Preference 
Act (19 U.S.C. 3201 et seq.) would have applied if the 
entry had been made on December 4, 2001, and 
(B) that was made after December 4, 2001, and before 
the date of the enactment of this Act, 
shall be liquidated or reliquidated as if such duty-free treatment 
(or preferential treatment) applied, and the Secretary of the 
Treasury shall refund any duty paid with respect to such entry. 
(2) ENTRY.—As used in this subsection, the term "entry" 
includes a withdrawal from warehouse for consumption. 
(3) REQUESTS.—Liquidation or reliquidation may be made 
under paragraph (1) with respect to an entry only if a request 
therefor is filed with the Customs Service, within 180 days 
after the date of the enactment of this Act, that contains 
sufficient information to enable the Customs Service— 
(A) to locate the entry; or 
(B) to reconstruct the entry if it cannot be located. 
SEC. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL. 
(a) REPORT TO CONGRESS.—The United States Trade Represent-
ative shall review the implementation of the United States-Israel 
Free Trade Agreement and shall submit to the Speaker of the 
House of Representatives, the President of the Senate, the Com-
mittee on Ways and Means of the House of Representatives, and 
the Committee on Finance of the Senate a report on the results 
of such review. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1035 
(b) CONTENTS OF REPORT.—The report under subsection (a) 
shall include the following: 
(1) A review of the terms of the United States-Israel Free 
Trade Agreement, particularly the terms with respect to market 
access commitments. 
(2) A review of subsequent agreements which may have 
been reached between the parties to the Agreement and of 
unilateral concessions of additional benefits received by each 
party from the other. 
(3) A review of any current negotiations between the parties 
to the Agreement with respect to implementation of the Agree-
ment and other pertinent matters. 
(4) An assessment of the degree of fulfillment of obligations 
under the Agreement by the United States and Israel. 
(5) An assessment of improvements in structuring future 
trade agreements that should be considered based on the experi-
ence of the United States under the Agreement. 
(c) TIMING OF REPORT.—The United States Trade Representa-
tive shall submit the report under subsection (a) not later than 
6 months after the date of the enactment of this Act. 
(d) DEFINITION.—In this section, the terms "United States-
Israel Free Trade Agreement" and "Agreement" means the Agree-
ment on the Establishment of a Free Trade Area between the 
Government of the United States of America and the Government 
of Israel entered into on April 22, 1985. 
SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA. 
Subheading 1604.14.20 of the Harmonized Tariff Schedule of 
the United States is amended— 
(1) in the article description, by striking "20 percent of 
the United States pack of canned tuna" and inserting "4.8 
percent of apparent United States consumption of tuna in air-
tight containers"; and 
(2) by redesignating such subheading as subheading 
1604.14.22. 
SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC 
RECOVERY ACT. 
(a) IN GENERAL.—Section 213(b)(2)(A) of the Carribean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as 
follows: 
(1) Clause (i) is amended— 
(A) by striking the matter preceding subclause (I) and 
inserting the following: 
"(i) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE 
CBTPA BENEFICIARY COUNTRIES.—Apparel articles sewn 
or otherwise assembled in one or more CBTPA bene-
ficiary countries from fabrics wholly formed and cut, 
or from components knit-to-shape, in the United States 
from yams wholly formed in the United States, 
(including fabrics not formed from yarns, if such fabrics 
are classifiable under heading 5602 or 5603 of the 
HTS and are wholly formed and cut in the United 
States) that are—"; and 
(B) by adding at the end the following: 
"Apparel articles entered on or after September 1, 
2002, shall qualify under the preceding sentence only 
if all dyeing, printing, and finishing of the fabrics 
116 STAT. 1036 
PUBLIC LAW 107-210—AUG. 6, 2002 
from which the articles are assembled, if the fabrics 
are knit fabrics, is carried out in the United States. 
Apparel articles entered on or after September 1, 2002, 
shall qualify under the first sentence of this clause 
only if all dyeing, printing, and finishing of the fabrics 
from which the articles are assembled, if the fabrics 
are woven fabrics, is carried out in the United States.". 
(2) Clause (ii) is amended to read as follows: 
"(ii) OTHER APPAREL ARTICLES ASSEMBLED IN ONE 
OR MORE CBTPA BENEFICIARY COUNTRIES.—Apparel arti-
cles sewn or otherwise assembled in one or more 
CBTPA beneficiary countries with thread formed in 
the United States from fabrics wholly formed in the 
United States and cut in one or more CBTPA bene-
ficiary countries from yarns wholly formed in the 
United States, or from components knit-to-shape in 
the United States from yams wholly formed in the 
United States, or both (including fabrics not formed 
from yarns, if such fabrics are classifiable under 
heading 5602 or 5603 of the HTS and are wholly 
formed in the United States). Apparel articles entered 
on or after September 1, 2002, shall qualify under 
the preceding sentence only if all dyeing, printing, 
and finishing of the fabrics from which the articles 
are assembled, if the fabrics are knit fabrics, is carried 
out in the United States. Apparel articles entered on 
or after September 1, 2002, shall qualify under the 
first sentence of this clause only if all dyeing, printing, 
and finishing of the fabrics from which the articles 
are assembled, if the fabrics are woven fabrics, is car-
ried out in the United States.". 
(3) Clause (iii)(II) is amended to read as follows: 
"(II) The amount referred to in subclause (I) is 
as follows: 
"(aa) 500,000,000 square meter equivalents 
during the 1-year period beginning on (October 1, 
2002. 
"(bb) 850,000,000 square meter equivalents 
during the 1-year period beginning on October 1, 
2003. 
"(cc) 970,000,000 square meter equivalents in 
each succeeding 1-year period through September 
30, 2008.". 
(4) Clause (iii)(IV) is amended to read as follows: 
"(IV) The amount referred to in subclause (III) 
is as follows: 
"(aa) 4,872,000 dozen during the 1-year period 
beginning on. October 1, 2001. 
"(bb) 9,000,000 dozen during the 1-year period 
beginning on October 1, 2002. 
"(cc) 10,000,000 dozen during the 1-year period 
beginning on October 1, 2003. 
"(dd) 12,000,000 dozen in each succeeding 1-
year period through September 30, 2008.". 
(5) Clause (iv) is amended to read as follows: 
"
(
i
v
) 
CERTAIN 
OTHER 
APPAREL 
ARTICLES.— 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1037 
"(I) GENERAL RULE.—Subject to subclause (II), 
any apparel article classifiable under subheading 
6212.10 of the HTS, except for articles entered 
under clause (i), (ii), (iii), (v), or (vi), if the article 
is both cut and sewn or otherwise assembled in 
the United States, or one or more CBTPA bene-
ficiary countries, or both. 
"(II) LIMITATION.—During the 1-year period 
beginning on October 1, 2001, and during each 
of the 6 succeeding 1-year periods, apparel articles 
described in subclause (I) of a producer or an entity 
controlling production shall be eligible for pref-
erential treatment under subparagraph (B) only 
if the aggregate cost of fabrics (exclusive of all 
findings 
and trimmings) formed in the United 
States that are used in the production of all such 
articles of that producer or entity that are entered 
and eligible under this clause during the preceding 
1-year period is at least 75 percent of the aggregate 
declared customs value of the fabric (exclusive of 
all findings and trimmings) contained in all such 
articles of that producer or entity that are entered 
and eligible under this clause during the preceding 
1-year period. 
"(Ill) DEVELOPMENT OF PROCEDURE TO ENSURE 
COMPLIANCE.—The United States Customs Service 
shall develop and implement methods and proce-
dures to ensure ongoing compliance with the 
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or £in entity 
controlling production has not satisfied 
such 
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer 
or entity shall be ineligible for preferential treat-
ment under subparagraph (B) during any suc-
ceeding 1-year period until the aggregate cost of 
fabrics (exclusive of all findings and trimmings) 
formed in the United States that are used in the 
production of such articles of that producer or 
entity entered during the preceding 1-year period 
is at least 85 percent of the aggregate declared 
customs value of the fabric (exclusive of all findings 
and trimmings) contained in all such articles of 
that producer or entity that are entered and 
eligible under this clause during the preceding 
1-year period.". 
(6) Clause (vii) is amended by adding at the end the fol-
lowing new subclause: 
"(V) THREAD.—An article otherwise eligible for 
preferential treatment under this paragraph shall 
not be ineligible for such treatment because the 
thread used to assemble the article is dyed, 
printed, or finished in one or more CBTPA bene-
ficiary countries.". 
(7) Section 213(b)(2)(A) of such Act is further amended 
19USC2703. 
by adding at the end the following new clause: 
116 STAT. 1038 
PUBLIC LAW 107-210—AUG. 6, 2002 
"(ix) 
APPAREL ARTICLES ASSEMBLED IN ONE OR 
MORE CBTPA BENEFICIARY COUNTRIES FROM UNITED 
STATES AND CBTPA BENEFICIARY COUNTRY COMPO-
NENTS.—Apparel articles sewn or otherwise assembled 
in one or more CBTPA beneficiary countries with 
thread formed in the United States from components 
cut in the United States and in one or more CBTPA 
beneficiary countries from fabric wholly formed in the 
United States from yarns wholly formed in the United 
States, or from components knit-to-shape in the United 
States and one or more CBTPA beneficiary countries 
from yams wholly formed in the United States, or 
both (including fabrics not formed from yarns, if such 
fabrics are classifiable under heading 5602 or 5603 
of the HTS). Apparel articles shall qualify under this 
clause only if they meet the requirements of clause 
(i) or (ii) (as the case may be) with respect to dyeing, 
printing, and finishing of knit and woven fabrics from 
which the articles are assembled.". 
1
9 use 2703 
(b) EFFECTIVE DATE OF CERTAIN PROVISIONS.—The amendment 
note. 
made by subsection (a)(3) shall take effect on October 1, 2002. 
SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND 
OPPORTUNITY ACT. 
(a) IN GENERAL.—Section 112(b) of the African Growth and 
Opportunity Act (19 U.S.C. 3721(b)) is amended as follows: 
(1) Paragraph (1) is amended by amending the matter 
preceding subparagraph (A) to read as follows: 
"(1) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRIES.—Apparel articles 
sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries from fabrics wholly formed and cut, 
or from components knit-to-shape, in the United States from 
yarns wholly formed in the United States, (including fabrics 
not formed from yarns, if such fabrics are classifiable under 
' heading 5602 or 5603 of the Harmonized Tariff Schedule of 
the United States and are wholly formed and cut in the United 
States) that are—". 
(2) Paragraph (2) is amended to read as follows: 
"(2) OTHER APPAREL ARTICLES ASSEMBLED IN ONE OR MORE 
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES.—Apparel arti-
cles sewn or otherwise assembled in one or more beneficiary 
sub-Saharan African countries with thread formed in the 
United States from fabrics wholly formed in the United States 
and cut in one or more beneficiary sub-Saharan African coun-
tries from yarns wholly formed in the United States, or from 
components knit-to-shape in the United States from yarns 
wholly formed in the United States, or both (including fabrics 
not formed from yarns, if such fabrics are classifiable under 
heading 5602 or 5603 of the Harmonized Tariff Schedule of 
the United States and are wholly formed in the United States).". 
(3) Paragraph (3) is amended— 
(A) by amending the matter preceding subparagraph 
(A) to read as follows: 
"(3) APPAREL ARTICLES FROM REGIONAL FABRIC OR YARNS.— 
Apparel articles wholly assembled in one or more beneficiary 
sub-Saharan African countries from fabric wholly formed in 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1039 
one or more beneficiary sub-Saharan Mrican countries fi-om 
yarns originating either in the United States or one or more 
beneficiary sub-Saharan Mrican countries (including fabrics 
not formed from yarns, if such fabrics are classified under 
heading 5602 or 5603 of the Harmonized Tariff Schedule of 
the United States and are wholly formed in one or more bene-
ficiary sub-Saharan African countries), or from components 
knit-to-shape in one or more beneficiary sub-Saharan African 
countries from yarns originating either in the United States 
or one or more beneficiary sub-Saharan Afi-ican countries, or 
apparel articles wholly formed on seamless knitting machines 
in a beneficiary sub-Saharan African country from yarns origi-
nating either in the United States or one or more beneficiary 
sub-Saharan African countries, subject to the following:"; and 
(B) by amending subparagraph (B) to read as follows: 
"(B) 
SPECIAL RULE FOR LESSER DEVELOPED COUN-
TRIES.— 
"(i) IN GENERAL.—Subject to subparagraph (A), 
preferential treatment under this paragraph shall be 
extended through September 30, 2004, for apparel arti-
cles wholly assembled, or knit-to-shape and wholly 
assembled, or both, in one or more lesser developed 
beneficiary sub-Saharan African countries regardless 
of the country of origin of the fabric or the yarn used 
to make such articles. 
"(ii) LESSER DEVELOPED BENEFICIARY SUB-SAHARAN 
AFRICAN COUNTRY.—For purposes of clause (i), the term 
'lesser developed beneficiary 
sub-Saharan 
African 
country' means— 
"(I) a beneficiary sub-Saharan African country 
that had a per capita gross national product of 
less than $1,500 in 1998, as measured by the 
International 
Bank 
for 
Reconstruction 
and 
Development; 
"(II) Botswana; and 
"(III) Namibia.". 
(4) Paragraph (4)(B) is amended by striking "18.5" and 
inserting "21.5". 
(5) Section 112(b) of such Act is further amended by adding 
19 USC 3121. 
at the end the following new paragraph: 
"(7) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM UNITED STATES 
AND BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY COMPO-
NENTS.—Apparel articles sewn or otherwise assembled in one 
or more beneficiary sub-Saharan African countries with thread 
formed in the United States from components cut in the United 
States and one or more beneficiary sub-Saharan African coun-
tries from fabric wholly formed in the United States from 
yarns wholly formed in the United States, or from components 
knit-to-shape in the United States and one or more beneficiary 
sub-Saharan African countries from yarns wholly formed in 
the United States, or both (including fabrics not formed from 
yarns, if such fabrics are classifiable under heading 5602 or 
5603 of the Harmonized Tariff Schedule of the United States).", 
(b) 
INCREASE IN LIMITATION ON CERTAIN BENEFITS.—The 
i9 use 3121 
applicable percentage under clause (ii) of section 112(b)(3)(A) of note. 
99-194 O - 03 - 9 : QL 3 Part 2 
116 STAT. 1040 
PUBLIC LAW 107-210—AUG. 6, 2002 
the African Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A)) 
shall be increased— 
(1) by 2.17 percent for the 1-year period beginning on 
October 1, 2002, and 
(2) by equal increments in each succeeding 1-year period 
provided for in such clause, so that for the 1-year period begin-
ning October 1, 2007, the applicable percentage is increased 
by 3.5 percent, 
except that such increase shall not apply with respect to articles 
eligible under subparagraph (B) of section 112(b)(3) of that Act. 
DIVISION D—EXTENSION OF CERTAIN 
PREFERENTIAL TRADE TREATMENT 
TITLE XLI—EXTENSION OF GENERAL-
IZED SYSTEM OF PREFERENCES 
SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES. 
(a) EXTENSION OF DUTY-FREE TREATMENT UNDER SYSTEM.— 
Section 505 of the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended 
by striking "September 30, 2001" and inserting "December 31, 
2006". 
19 use 2465 
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND 
note. 
R E L I Q U I D A T I O N S . — 
(1) IN GENERAL.—Notwithstanding section 514 of the Tariff 
Act of 1930 or any other provision of law, and subject to 
paragraph (2), the entry— 
(A) of any article to which duty-free treatment under 
title V of the Trade Act of 1974 would have applied if 
the entry had been made on September 30, 2001, 
(B) that was made after September 30, 2001, and before 
the date of the enactment of this Act, and 
(C) to which duty-free treatment under title V of that 
Act did not apply, 
shall be liquidated or reliquidated as free of duty, and the 
Secretary of the Treasury shall refund any duty paid with 
respect to such entry. 
(2) REQUESTS.—Liquidation or reliquidation may be made 
under paragraph (1) with respect to an entry only if a request 
therefor is filed with the Customs Service, within 180 days 
after the date of the enactment of this Act, that contains 
sufficient information to enable the Customs Service— 
(A) to locate the entry; or 
(B) to reconstruct the entry if it cannot be located. 
(3) DEFINITION.—As used in this subsection, the term 
"entry" includes a withdrawal from warehouse for consumption. 
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES. 
(a) ELIGIBILITY FOR GENERALIZED SYSTEM OF PREFERENCES.— 
Section 
502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 
2462(b)(2)(F)) is amended by striking the period at the end and 
inserting "or such country has not taken steps to support the 
efforts of the United States to combat terrorism.". 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1041 
(b) 
DEFINITION OF INTERNATIONALLY RECOGNIZED WORKER 
RIGHTS.—Section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)) 
is amended by amending subparagraph (D) to read as follows: 
"(D) a minimum age for the employment of children, 
and a prohibition on the worst forms of child labor, as 
defined in paragraph (6); and". 
DIVISION E—MISCELLANEOUS 
PROVISIONS 
TITLE L—MISCELLANEOUS TRADE 
BENEFITS 
Subtitle A—Wool Provisions 
SEC. 5101. WOOL PROVISIONS. 
(a) SHORT TITLE.—This section may be cited as the "Wool 
Manufacturer Payment Clarification and Technical Corrections 
Act". 
(b) CLARIFICATION OF TEMPORARY DUTY SUSPENSION.—Heading 
9902.51.13 of the Harmonized Tariff Schedule of the United States 
is amended by inserting "average" before "diameters". 
(c) PAYMENTS TO MANUFACTURERS OF CERTAIN WOOL PROD-
UCTS.— 
(1) PAYMENTS.—Section 505 of the Trade and Development 
Act of 2000 (Pubhc Law 106-200; 114 Stat. 303) is amended 
as follows: 
(A) Subsection (a) is amended— 
(i) by striking "In each of the calendar years" and 
inserting "For each of the calendar years"; and 
(ii) by striking "for a refund of duties" and all 
that follows through the end of the subsection and 
inserting "for a payment equal to an amount deter-
mined pursuant to subsection (d)(1).". 
(B) Subsection (b) is amended to read as follows: 
"(b) WOOL YARN.— 
"(1) IMPORTING MANUFACTURERS.—For each of the calendar 
years 2000, 2001, and 2002, a manufacturer of worsted wool 
fabrics who imports wool yarn of the kind described in heading 
5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of 
the United States shall be eligible for a payment equal to 
an amount determined pursuant to subsection (d)(2). 
"(2) NONIMPORTING MANUFACTURERS.—For each of the cal-
endar years 2001 and 2002, any other manufacturer of worsted 
wool fabrics of imported wool yam of the kind described in 
heading 5107.10 or 9902.51.13 of the Harmonized Tariff 
Schedule of the United States shall be eligible for a payment 
equal to an amount determined pursuant to subsection (d)(2).". 
(C) Subsection (c) is amended to read as follows: 
"(c) WOOL FIBER AND WOOL TOP.— 
"(1) IMPORTING MANUFACTURERS.—For each of the calendar 
years 2000, 2001, and 2002, a manufacturer of wool yarn or 
wool fabric who imports wool fiber or wool top of the kind 
described in heading 5101.11, 5101.19, 5101.21, 5101.29, 
Wool 
Manufacturer 
Payment 
Clarification and 
Technical 
Corrections Act. 
116 STAT. 1042 
PUBLIC LAW 107-210—AUG. 6, 2002 
5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 
9902.51.14 of the Harmonized Tariff Schedule of the United 
States shall be eligible for a payment equal to an amount 
determined pursuant to subsection (d)(3). 
"(2) NONIMPORTING MANUFACTURERS.—For each of the cal-
endar years 2001 and 2002, any other manufacturer of wool 
yarn or wool fabric of imported wool fiber or wool top of the 
kind described in heading 5101.11, 5101.19, 5101.21, 5101.29, 
5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 
9902.51.14 of the Harmonized Tariff Schedule of the United 
States shall be eligible for a payment equal to an amount 
determined pursuant to subsection (d)(3).". 
(D) Section 505 is further amended by striking sub-
section (d) and inserting the following new subsections: 
"(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFACTURERS.— 
"(1) MANUFACTURERS OF MEN'S SUITS, ETC. OF IMPORTED 
WORSTED WOOL FABRICS.— 
"(A) ELIGIBLE TO RECEIVE MORE THAN $5,000.—Each 
annual payment to manufacturers described in subsection 
(a) who, according to the records of the Customs Service 
as of September 11, 2001, are eligible to receive more 
than $5,000 for each of the calendar years 2000, 2001, 
and 2002, shall be in an amount equal to one-third of 
the amount determined by multiplying $30,124,000 by a 
fraction— 
"(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products 
imported in calendar year 1999 by the manufacturer 
making the claim, and 
"(ii) the denominator of which is the total amount 
attributable to the duties paid on eligible wool products 
imported in calendar year 1999 by all the manufactur-
ers described in subsection (a) who, according to the 
records of the Customs Service as of September 11, 
2001, are eligible to receive more than $5,000 for each 
such calendar year under this section as it was in 
effect on that date. 
"(B) 
ELIGIBLE 
WOOL PRODUCTS.—For purposes of 
subparagraph (A), the term 'eligible wool products' refers 
to imported worsted wool fabrics described in subsection 
(a). 
"(C) OTHERS.—All manufacturers described in sub-
section (a), other than the manufacturers to which subpara-
graph (A) applies, shall each receive an annual payment 
in an amount equal to one-third of the amount determined 
by dividing $1,665,000 by the number of all such other 
manufacturers. 
"(2) 
MANUFACTURERS OF WORSTED 
WOOL 
FABRICS OF 
IMPORTED WOOL YARN.— 
"(A) IMPORTING MANUFACTURERS.—Each annual pay-
ment to an importing manufacturer described in subsection 
(b)(1) shall be in an amount equal to one-third of the 
amount 
determined by multipl3dng $2,202,000 by a 
fraction— 
"(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1043 
imported in calendar year 1999 by the importing manu-
facturer making the claim, and 
"(ii) the denominator of which is the total amount 
attributable to the duties paid on eligible wool products 
imported in calendar year 1999 by all the importing 
manufacturers described in subsection (b)(1). 
"(B) 
ELIGIBLE 
WOOL 
PRODUCTS.—For 
purposes 
of 
subparagraph (A), the term 'eligible wool products' refers 
to imported wool yarn described in subsection (b)(1). 
"(C) NONIMPORTING MANUFACTURERS.—Each annual 
payment to a nonimporting manufacturer described in sub-
section (b)(2) shall be in an amount equal to one-half of 
the amount determined by multipl3dng $141,000 by a 
fraction— 
"(i) the numerator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer making the claim, and 
"(ii) the denominator of which is the total amount 
attributable to the purchases of imported eligible wool 
products in calendar year 1999 by all the nonimporting 
manufacturers described in subsection (b)(2). 
"(3) MANUFACTURERS OF WOOL YARN OR WOOL FABRIC OF 
IMPORTED WOOL FIBER OR WOOL TOP.— 
"(A) IMPORTING MANUFACTURERS.—Each annual pay-
ment to an importing manufacturer described in subsection 
(c)(1) shall be in an amount equal to one-third of the 
amount 
determined by multiplying 
$1,522,000 by a 
fraction— 
"(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products 
imported in calendar year 1999 by the importing manu-
facturer making the claim, and 
"(ii) the denominator of which is the total amount 
attributable to the duties paid on eligible wool products 
imported in calendar year 1999 by all the importing 
manufacturers described in subsection (c)(1). 
"(B) 
ELIGIBLE 
WOOL 
PRODUCTS.—For purposes 
of 
subparagraph (A), the term 'eligible wool products' refers 
to imported wool fiber or wool top described in subsection 
(0(1). 
"(C) NONIMPORTING MANUFACTURERS.—Each annual 
payment to a nonimporting manufacturer described in sub-
section (c)(2) shall be in an amount equal to one-half of 
the amount determined by multiplying $597,000 by a 
fraction— 
"(i) the numerator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer making the claim, and 
"(ii) the denominator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by all the nonimporting 
manufacturers described in subsection (c)(2). 
"(4) LETTERS OF INTENT.—Except for the nonimporting 
manufacturers described in subsections (b)(2) and (c)(2) who 
may make claims under this section by virtue of the enactment 
116 STAT. 1044 
PUBLIC LAW 107-210—AUG. 6, 2002 
of the Wool Manufacturer Payment Clarification and Technical 
Corrections Act, only manufacturers who, according to the 
records of the Customs Service, filed with the Customs Service 
before September 11, 2001, letters of intent to establish eligi-
bility to be claimants are eligible to make a claim for a payment 
under this section. 
"(5) 
AMOUNT 
ATTRIBUTABLE TO PURCHASES BY NON-
IMPORTING MANUFACTURERS.— 
"(A) AMOUNT ATTRIBUTABLE.—For purposes of para-
graphs (2)(C) and (3)(C), the amount attributable to the 
purchases of imported eligible wool products in calendar 
year 1999 by a nonimporting manufacturer shall be the 
amount the nonimporting manufacturer paid for eligible 
wool products in calendar year 1999, as evidenced by 
invoices. The nonimporting manufacturer shall make such 
calculation and submit the resulting amount to the Cus-
toms Service, within 45 days after the date of enactment 
of the Wool Manufacturer Payment Clarification and Tech-
nical Corrections Act, in a signed affidavit that attests 
that the information contained therein is true and accurate 
to the best of the affiant's belief and knowledge. The non-
importing manufacturer shall retain the records upon 
which the calculation is based for a period of five years 
beginning on the date the affidavit is submitted to the 
Customs Service. 
"(B) 
ELIGIBLE 
WOOL 
PRODUCT.—For 
purposes 
of 
subparagraph (A)— 
"(i) the eligible wool product for nonimporting 
manufacturers of worsted wool fabrics is wool yarn 
of the kind described in heading 5107.10 or 9902.51.13 
of the Harmonized Tariff Schedule of the United States 
purchased in calendar year 1999; and 
"(ii) the eligible wool products for nonimporting 
manufacturers of wool yarn or wool fabric are wool 
fiber or wool top of the kind described in heading 
5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of 
such Schedule purchased in calendar year 1999. 
"(6) AMOUNT ATTRIBUTABLE TO DUTIES PAID.—For purposes 
of paragraphs (1), (2)(A), and (3)(A), the amount attributable 
to the duties paid by a manufacturer shall be the amount 
shown on the records of the Customs Service as of September 
11, 2001, under this section as then in effect. 
"(7) SCHEDULE OF PAYMENTS; REALLOCATIONS.— 
"(A) SCHEDULE.—Of the payments described in para-
graphs (1), (2)(A), and (3)(A), the Customs Service shall 
make the first and second installments on or before the 
date that is 45 days after the date of enactment of the 
Wool Manufacturer Payment Clarification and Technical 
Corrections Act, and the third installment on or before 
April 15, 2003. Of the payments described in paragraphs 
(2)(C) and (3)(C), the Customs Service shall make the first 
installment on or before the date that is 120 days after 
the date of enactment of the Wool Manufacturer Payment 
Clarification and Technical Corrections Act, and the second 
installment on or before April 15, 2003. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1045 
"(B) REALLOCATIONS.—In the event that a manufac-
turer that would have received pa5anent under subpara-
graph (A) or (C) of paragraph (1), (2), or (3) ceases to 
be quahfied for such payment as such a manufacturer, 
the amounts otherwise payable to the remaining manufac-
turers under such subparagraph shall be increased on a 
pro rata basis by the amount of the payment such manufac-
turer would have received. 
"(8) REFERENCE.—For purposes of paragraphs (1)(A) and 
(6), the 'records of the Customs Service as of September 11, 
2001' are the records of the Wool Duty Unit of the Customs 
Service on September 11, 2001, as adjusted by the Customs 
Service to the extent necessary to carry out this section. The 
amounts so adjusted are not subject to administrative or judicial 
review. 
"(e) AFFIDAVITS BY MANUFACTURERS.— 
"(1) AFFIDAVIT REQUIRED.—A manufacturer may not receive 
a payment under this section for calendar year 2000, 2001, 
or 2002, as the case may be, unless that manufacturer has 
submitted to the Customs Service for that calendar year a 
signed affidavit that attests that, during that calendar year, 
the affiant was a manufacturer in the United States described 
in subsection (a), (b), or (c). 
"(2) TIMING.—An affidavit under paragraph (1) shall be Deadlines. 
valid— 
"(A) in the case of a manufacturer described in para-
graph (1), (2)(A), or (3)(A) of subsection (d) filing a claim 
for a payment for calendar year 2000 or 2001, or both, 
only if the affidavit is postmarked no later than 15 days 
after the date of enactment of the Wool Manufacturer 
Payment Clarification and Technical Corrections Act; and 
"(B) in the case of a claim for a payment for calendar 
year 2002, only if the affidavit is postmarked no later 
than March 1, 2003. 
"(f) OFFSETS.—Notwithstanding any other provision of this sec-
tion, any amount otherwise payable under subsection (d) to a manu-
facturer in calendar year 2001 and, where applicable, in calendar 
years 2002 and 2003, shall be reduced by the amount of any 
payment received by that manufacturer under this section before 
the enactment of the Wool Manufacturer Payment Clarification 
and Technical Corrections Act. 
"(g) DEFINITION.—For purposes of this section, the manufac-
turer is the party that owns— 
"(1) imported worsted wool fabric, of the kind described 
in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff 
Schedule of the United States, at the time the fabric is cut 
and sewn in the United States into men's or boys' suits, suit-
type jackets, or trousers; 
"(2) imported wool yam, of the kind described in heading 
5107.01 or 9902.51.13 of such Schedule, at the time the yarn 
is processed in the United States into worsted wool fabric; 
or 
"(3) imported wool fiber or wool top, of the kind described 
in heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 
5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of 
such Schedule, at the time the wool fiber or wool top is proc-
essed in the United States into wool yarn.". 
116 STAT. 1046 
PUBLIC LAW 107-210—AUG. 6, 2002 
(2) FUNDING.—There is authorized to be appropriated and 
is hereby appropriated, out of amounts in the General Fund 
of the Treasury not otherwise appropriated, $36,251,000 to 
carry out the amendments made by paragraph (1). 
SEC. 5102. DUTY SUSPENSION ON WOOL. 
(a) EXTENSION OF TEMPORARY DUTY REDUCTIONS.— 
(1) HEADING 9902.51.11.—Heading 9902.51.11 of the Har-
monized Tariff Schedule of the United States is amended by 
striking "2003" and inserting "2005". 
(2) HEADING 9902.51.12.—Heading 9902.51.12 of the Har-
monized Tariff Schedule of the United States is amended— 
(A) by striking "2003" and inserting "2005"; and 
(B) by striking "6%" and inserting "Free". 
(3) HEADING 9902.51.13.—Heading 9902.51.13 of the Har-
monized Tariff Schedule of the United States is amended by 
striking "2003" and inserting "2005". 
(4) HEADING 9902.51.14.—Heading 9902.51.14 of the Har-
monized Tariff Schedule of the United States is amended by 
striking "2003" and inserting "2005". 
(b) LIMITATION ON QUANTITY OF IMPORTS.— 
(1) NOTE 15.—U.S. Note 15 to subchapter II of chapter 
99 of the Harmonized Tariff Schedule of the United States 
is amended— 
(A) by striking "from January 1 to December 31 of 
each year, inclusive"; and 
(B) by striking ", or such other" and inserting the 
following: "in calendar year 2001, 3,500,000 square meter 
equivalents in calendar year 2002, and 4,500,000 square 
meter equivalents in calendar year 2003 and each calendar 
year thereafter, or such greater". 
(2) NOTE le.—U.S. Note 16 to subchapter II of chapter 
99 of the Harmonized Tariff Schedule of the United States 
is amended— 
(A) by striking "from January 1 to December 31 of 
each year, inclusive"; and 
(B) by striking ", or such other" and inserting the 
following: "in calendar year 2001, 2,500,000 square meter 
equivalents in calendar year 2002, and 3,500,000 square 
meter equivalents in calendar year 2003 and each calendar 
year thereafter, or such greater". 
(c) EXTENSION OF DUTY REFUNDS AND WOOL RESEARCH TRUST 
FUND.— 
(1) IN GENERAL.—The United States Customs Service shall 
pay each manufacturer that receives a payment under section 
505 of the Trade and Development Act of 2000 (Public Law 
106-200) for calendar year 2002, and that provides an affidavit 
that it remains a manufacturer in the United States as of 
January 1 of the year of the payment, 2 additional payments, 
each payment equal to the payment received for calendar year 
2002 as follows: 
(A) The first payment to be made after January 1, 
2004, but on or before April 15, 2004. 
(B) The second pa5anent to be made after January 
1, 2005, but on or before April 15, 2005. 
PUBLIC LAW 107-210—AUG. 6, 2002 
116 STAT. 1047 
(2) CONFORMING AMENDMENT.—Section 506(f) of the Trade 
7 use 7ioi note. 
and Development Act of 2000 (Public Law 106-200) is amended 
by striking "2004" and inserting "2006". 
(3) AUTHORIZATION.—There is authorized to be appro-
priated and is hereby appropriated out of amounts in the gen-
eral fund of the Treasury not otherwise appropriated such 
sums as are necessary to carry out the provisions of this sub-
section. 
(d) EFFECTIVE DATE.—The amendment made by subsection 
(a)(2)(B) applies to goods entered, or withdrawn from warehouse 
for consumption, on or after January 1, 2002. 
Subtitle B—Other Provisions 
SEC. 5201. FUND FOR WTO DISPUTE SETTLEMENTS. 
19 USC 3539 
(a) ESTABLISHMENT OF FUND.—There is established in the 
Treasury a fund for the payment of settlements under this section. 
(b) AUTHORITY OF U S T R TO PAY SETTLEMENTS.—Amounts in 
the fund established under subsection (a) shall be available, as 
provided in appropriations Acts, only for the payment by the United 
States Trade Representative of the amount of the total or partial 
settlement of any dispute pursuant to proceedings under the aus-
pices of the World Trade Organization, i
f
— 
(1) in the case of a total or partial settlement in an amount 
of not more than $10,000,000, the Trade Representative cer-
tifies to the Secretary of the Treasury that the settlement 
is in the best interests of the United States; and 
(2) in the case of a total or partial settlement in an amount 
of more than $10,000,000, the Trade Representative certifies 
to the Congress that the settlement is in the best interests 
of the United States. 
(c) APPROPRIATIONS.—There are authorized to be appropriated 
to the fund established under subsection (a)— 
(1) $50,000,000; and 
(2) amounts equivalent to amounts recovered by the United 
States pursuant to the settlement of disputes pursuant to pro-
ceedings under the auspices of the World Trade Organization. 
Amounts appropriated to the fund are authorized to remain avail-
able until expended. 
(d) MANAGEMENT OF FUND.—Sections 9601 and 9602(b) of the 
Internal Revenue Code of 1986 shall apply to the fund established 
under subsection (a) to the same extent as such provisions apply 
to trust funds established under subchapter A of chapter 98 of 
such Code. 
SEC. 5202. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS 
USED IN NUCLEAR FACILITIES. 
(a) IN GENERAL.—Subheading 9902.84.02 of the Harmonized 
Tariff Schedule of the United States is amended— 
(1) by striking "4.9%" and inserting "Free"; and 
(2) by striking "12/31/2003" and inserting "12/31/2006". 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by subsection 
(a) shall apply to goods entered, or withdrawn from warehouse 
for consumption, on or after January 1, 2002. 
116 STAT. 1048 
PUBLIC LAW 107-210—AUG. 6, 2002 
(2) RETROACTIVE APPLICATION.—Notwithstanding section 
514 of the Tariff Act of 1930 or any other provision of law, 
and subject to paragraph (4), the entry of any article— 
(A) that was made on or after January 1, 2002, and 
(B) to which duty-free treatment would have applied 
if the amendment made by this section had been in effect 
on the date of such entry, 
shall be liquidated or reliquidated as if such duty-free treatment 
applied, and the Secretary of the Treasury shall refund any 
duty paid with respect to such entry. 
(3) ENTRY.—As used in this subsection, the term "entry" 
includes a withdrawal from warehouse for consumption. 
(4) REQUESTS.—Liquidation or reliquidation may be made 
under paragraph (2) with respect to an entry only if a request 
therefor is filed with the Customs Service, within 180 days 
after the date of the enactment of this Act, that contains 
sufficient information to enable the Customs Service— 
(A) to locate the entry; or 
(B) to reconstruct the entry if it cannot be located. 
SEC. 5203. SUGAR TARIFFRATE QUOTA CIRCUMVENTION. 
(a) IN GENERAL.—Chapter 17 of the Harmonized Tariff Schedule 
of the United States is amended in the superior text to subheading 
1702.90.05 by striking "Containing" and all that follows through 
"solids:" and inserting the following: 
"Containing soluble non-sugar solids (excluding any foreign 
substances, including but not limited to molasses, that may 
have been added to or developed in the product) equal to 
6 percent or less by weight of the total soluble solids:". 
(b) MONITORING FOR CIRCUMVENTION.—The Secretary of Agri-
culture and the Commissioner of Customs shall continuously mon-
itor imports of sugar and sugar-containing products provided for 
in chapters 17, 18, 19, and 21 of the Harmonized Tariff Schedule 
of the United States, other than molasses imported for use in 
animal feed or the production of rum and articles prepared for 
marketing to the ultimate consumer in the form and package in 
which imported, for indications that an article is being used to 
circumvent a tariff-rate quota provided for in those chapters. The 
Secretary and Commissioner shall specifically examine imports of 
articles provided for in subheading 1703.10.30 of the Harmonized 
Tariff Schedule of the United States. 
PUBLIC LAW 107-210-AUG. 6, 2002 
116 STAT. 1049 
(c) REPORTS AND RECOMMENDATIONS.—The Secretary and the Deadline. 
Commissioner shall report their findings to Congress and the Presi-
dent not later than 180 days after the date of enactment of this 
Act and every 6 months thereafter. The reports shall include data 
and a description of developments and trends in the composition 
of trade of articles provided for in the chapters of the Harmonized 
Tariff Schedule of the United States identified in subsection (b) 
and any indications of circumvention that may exist. The reports 
shall also include recommendations for ending such circumvention, 
including recommendations for legislation. 
Approved August 6, 2002. 
LEGISLATIVE HISTORY-H.R. 3009 (S. 2485): 
HOUSE REPORTS: Nos. 107-290 (Comm. on Ways and Means) and 107-624 
(Comm. of Conference). 
SENATE REPORTS: No. 107-126 (Comm. on Finance). 
CONGRESSIONAL RECORD: 
Vol. 147 (2001): Nov. 16, considered and passed House. 
Vol. 148 (2002): May 1, 2, 6, 8-10, 13-17, 20-23, considered and passed 
Senate, amended. 
June 26, House concurred in Senate amendment with an 
amendment pursuant to H. Res. 450. 
July 26, House agreed to conference report. 
Aug. 1, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): 
Aug. 6, Presidential remarks.