[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5110 Committee Discharged House (CDH)]
Union Calendar No. 462
103d CONGRESS
2d Session
H. R. 5110
[Report No. 103-826, Parts I and II]
_______________________________________________________________________
A BILL
To approve and implement the trade agreements concluded in the Uruguay
Round of multilateral trade negotiations.
_______________________________________________________________________
October 3, 1994
Committees on Agriculture, Education and Labor, Foreign Affairs,
Government Operations, the Judiciary, and Rules discharged; committeed
to the Committee of the Whole House on the State of the Union, and
ordered to be printed
Union Calendar No. 462
103d CONGRESS
2d Session
H. R. 5110
[Report No. 103-826, Parts I and II]
To approve and implement the trade agreements concluded in the Uruguay
Round of multilateral trade negotiations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 1994
Mr. Gephardt (for himself and Mr. Michel) (by request) introduced the
following bill; which was referred jointly to the following Committees
for a period ending not later than October 3, 1994: Ways and Means,
Agriculture, Education and Labor, Energy and Commerce, Foreign Affairs,
Government Operations, the Judiciary, and Rules
October 3, 1994
Reported from the Committee on Ways and Means
October 3, 1994
Reported from the Committee on Energy and Commerce
October 3, 1994
Additional sponsors: Mr. Gibbons, Mr. Matsui, Mrs. Kennelly, Mr. Levin,
and Mr. Bacchus of Florida
October 3, 1994
Committees on Agriculture, Education and Labor, Foreign Affairs,
Government Operations, the Judiciary, and Rules discharged; committeed
to the Committee of the Whole House on the State of the Union, and
ordered to be printed
_______________________________________________________________________
A BILL
To approve and implement the trade agreements concluded in the Uruguay
Round of multilateral trade negotiations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Uruguay Round
Agreements Act''.
(b) Table of Contents.--
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE URUGUAY
ROUND AGREEMENTS
Subtitle A--Approval of Agreements and Related Provisions
Sec. 101. Approval and entry into force of the Uruguay Round
Agreements.
Sec. 102. Relationship of the agreements to United States law and State
law.
Sec. 103. Implementing actions in anticipation of entry into force;
regulations.
Subtitle B--Tariff Modifications
Sec. 111. Tariff modifications.
Sec. 112. Implementation of Schedule XX provisions on ship repairs.
Sec. 113. Liquidation or reliquidation and refund of duty paid on
certain entries.
Sec. 114. Modifications to the HTS.
Sec. 115. Consultation and layover requirements for, and effective date
of, proclaimed actions.
Sec. 116. Effective date.
Subtitle C--Uruguay Round Implementation and Dispute Settlement
Sec. 121. Definitions.
Sec. 122. Implementation of Uruguay Round Agreements.
Sec. 123. Dispute settlement panels and procedures.
Sec. 124. Annual report on the WTO.
Sec. 125. Review of participation in the WTO.
Sec. 126. Increased transparency.
Sec. 127. Access to the WTO dispute settlement process.
Sec. 128. Advisory committee participation.
Sec. 129. Administrative action following WTO panel reports.
Sec. 130. Effective date.
Subtitle D--Related Provisions
Sec. 131. Working party on worker rights.
Sec. 132. Implementation of rules of origin work program.
Sec. 133. Membership in WTO of boycotting countries.
Sec. 134. Africa trade and development policy.
Sec. 135. Objectives for extended negotiations.
Sec. 136. Repeal of tax on imported perfumes; drawback of tax on
distilled spirits used in perfume
manufacture.
Sec. 137. Certain nonrubber footwear.
Sec. 138. Effective date.
TITLE II--ANTIDUMPING AND COUNTERVAILING DUTY PROVISIONS
Sec. 201. Reference.
Subtitle A--General Provisions
Sec. 211. Action with respect to petitions.
Sec. 212. Petition and preliminary determination.
Sec. 213. De minimis dumping margin.
Sec. 214. Critical circumstances.
Sec. 215. Provisional measures.
Sec. 216. Conditions on acceptance of suspension agreements.
Sec. 217. Termination of investigation.
Sec. 218. Special rules for regional industries.
Sec. 219. Determination of weighted average dumping margin.
Sec. 220. Review of determinations.
Sec. 221. Review determinations.
Sec. 222. Definitions.
Sec. 223. Export price and constructed export price.
Sec. 224. Normal value.
Sec. 225. Currency conversion.
Sec. 226. Proprietary and nonproprietary information.
Sec. 227. Opportunity for comment by consumers and industrial users.
Sec. 228. Public notice and explanation of determinations.
Sec. 229. Sampling and averaging; determination of weighted average
dumping margin.
Sec. 230. Anticircumvention.
Sec. 231. Evidence.
Sec. 232. Antidumping petitions by third countries.
Sec. 233. Conforming amendments.
Sec. 234. Application to Canada and Mexico.
Subtitle B--Subsidies Provisions
Part 1--Countervailable Subsidies
Sec. 251. Countervailable subsidy.
Part 2--Repeal of Section 303 and Conforming Amendments
Sec. 261. Repeal of section 303.
Sec. 262. Imposition of countervailing duties.
Sec. 263. De minimis countervailable subsidy.
Sec. 264. Determination of countervailable subsidy rate.
Sec. 265. Assessment of countervailing duty.
Sec. 266. Nature of countervailable subsidy.
Sec. 267. Definition of developing and least-developed country.
Sec. 268. Upstream subsidies.
Sec. 269. Determination of countervailable subsidy rate.
Sec. 270. Conforming amendments.
Part 3--Section 303 Injury Investigations
Sec. 271. Special rules for injury investigations for certain section
303 countervailing duty orders and
investigations.
Part 4--Enforcement of United States Rights Under the Subsidies
Agreement
Sec. 281. Subsidies enforcement.
Sec. 282. Review of subsidies agreement.
Sec. 283. Amendments to title VII of the Tariff Act of 1930.
Subtitle C--Effective Date
Sec. 291. Effective date.
TITLE III--ADDITIONAL IMPLEMENTATION OF AGREEMENTS
Subtitle A--Safeguards
Sec. 301. Investigations, determinations, and recommendations by
International Trade Commission.
Sec. 302. Action by President after determination of import injury.
Sec. 303. Miscellaneous amendments.
Sec. 304. Effective date.
Subtitle B--Foreign Trade Barriers and Unfair Trade Practices
Sec. 311. Identification of foreign anticompetitive practices.
Sec. 312. Consultation with committees.
Sec. 313. Identification of countries that deny protection of
intellectual property rights.
Sec. 314. Amendments to title III of the Trade Act of 1974.
Sec. 315. Objectives in intellectual property.
Sec. 316. Effective date.
Subtitle C--Unfair Practices in Import Trade
Sec. 321. Unfair practices in import trade.
Sec. 322. Effective date.
Subtitle D--Textiles
Sec. 331. Textile product integration.
Sec. 332. Amendment to section 204 of the Agricultural Act of 1956.
Sec. 333. Textile transshipments.
Sec. 334. Rules of origin for textile and apparel products.
Sec. 335. Effective date.
Subtitle E--Government Procurement
Sec. 341. Monitoring and enforcement of the agreement on government
procurement.
Sec. 342. Conforming amendments.
Sec. 343. Reciprocal competitive procurement practices.
Sec. 344. Effective date.
Subtitle F--Technical Barriers to Trade
Sec. 351. Technical barriers to trade.
Sec. 352. Effective date.
TITLE IV--AGRICULTURE-RELATED PROVISIONS
Subtitle A--Agriculture
Part I--Market Access
Sec. 401. Section 22 amendments.
Sec. 402. Cheese and chocolate crumb imports.
Sec. 403. Meat Import Act.
Sec. 404. Administration of tariff-rate quotas.
Sec. 405. Special agricultural safeguard authority.
Part II--Exports
Sec. 411. Export programs.
Sec. 412. Other conforming amendments.
Part III--Other Provisions
Sec. 421. Authority for certain actions under Article XXVIII.
Sec. 422. Tobacco imports.
Sec. 423. Tobacco proclamation authority.
Sec. 424. Report to Congress on access to Canadian dairy and poultry
markets.
Sec. 425. Study of milk marketing order system.
Sec. 426. Additional program funding.
Subtitle B--Sanitary and Phytosanitary Measures
Sec. 431. Sanitary and phytosanitary measures.
Sec. 432. International standard-setting activities.
Subtitle C--Standards
Sec. 441. The Federal Seed Act.
Subtitle D--General Effective Date
Sec. 451. General effective date.
TITLE V--INTELLECTUAL PROPERTY
Sec. 501. Definition.
Subtitle A--Copyright Provisions
Sec. 511. Rental rights in computer programs.
Sec. 512. Civil penalties for unauthorized fixation of and trafficking
in sound recordings and music videos of
live musical performances.
Sec. 513. Criminal penalties for unauthorized fixation of and
trafficking in sound recordings and music
videos or live musical performances.
Sec. 514. Restored works.
Subtitle B--Trademark Provisions
Sec. 521. Definition of ``abandoned''.
Sec. 522. Nonregistrability of misleading geographic indications for
wines and spirits.
Sec. 523. Effective date.
Subtitle C--Patent Provisions
Sec. 531. Treatment of inventive activity.
Sec. 532. Patent term and internal priority.
Sec. 533. Patent rights.
Sec. 534. Effective dates and application.
TITLE VI--RELATED PROVISIONS
Subtitle A--Expiring Provisions
Sec. 601. Generalized System of Preferences.
Sec. 602. U.S. insular possessions.
Subtitle B--Certain Customs Provisions
Sec. 611. Reimbursements from customs user fee account.
Sec. 612. Merchandise processing fees.
Subtitle C--Conforming Amendments
Sec. 621. Conforming amendments.
TITLE VII--REVENUE PROVISIONS
Sec. 700. Amendment of 1986 Code and table of contents.
Subtitle A--Withholding Tax Provisions
Sec. 701. Withholding on distributions of Indian casino profits to
tribal members.
Sec. 702. Voluntary withholding on certain Federal payments and on
unemployment compensation.
Subtitle B--Provisions Relating to Estimated Taxes and Payments and
Deposits of Taxes
Sec. 711. Treatment of subpart F and section 936 income of taxpayers
using annualized method for estimated tax.
Sec. 712. Time for payments and deposits of certain taxes.
Sec. 713. Reduction in rate of interest paid on certain corporate
overpayments.
Subtitle C--Earned Income Tax Credit
Sec. 721. Extension of earned income tax credit to military personnel
stationed outside the United States.
Sec. 722. Certain nonresident aliens ineligible for earned income tax
credit.
Sec. 723. Income of prisoners disregarded in determining earned income
tax credit.
Subtitle D--Provisions Relating To Retirement Benefits
Sec. 731. Treatment of excess pension assets used for retiree health
benefits.
Sec. 732. Rounding rules for cost-of-living adjustments.
Sec. 733. Increase in inclusion of social security benefits paid to
nonresidents.
Subtitle E--Other Provisions
Sec. 741. Partnership distributions of marketable securities.
Sec. 742. Taxpayer identification numbers required at birth.
Sec. 743. Extension of Internal Revenue Service user fees.
Sec. 744. Modification of substantial understatement penalty for
corporations participating in tax shelters.
Sec. 745. Modification of authority to set terms and conditions for
savings bonds.
Subtitle F--Pension Plan Funding and Premiums
Sec. 750. Short title.
subpart a--amendments to the internal revenue code of 1986
Sec. 751. Minimum funding requirements.
Sec. 752. Limitation on changes in current liability assumptions.
Sec. 753. Anticipation of bargained benefit increases.
Sec. 754. Modification of quarterly contribution requirement.
subpart b--amendments to the employee retirement income security act of
1974
Sec. 761. Minimum funding requirements.
Sec. 762. Limitation on changes in current liability assumptions.
Sec. 763. Anticipation of bargained benefit increases.
Sec. 764. Modificasubpart c--other funding provisionsirement.
Sec. 766. Prohibition on benefit increases where plan sponsor is in
bankruptcy.
Sec. 767. Single sum distributions.
Sec. 768. Adjustments to lien for missed minimum funding contributions.
Sec. 769. Special funding rules for certain plans.
Part II--Amendments Related to Title IV of the Employee Retirement
Income Security Act of 1974
Sec. 771. Reportable events.
Sec. 772. Certain information required to be furnished to PBGC.
Sec. 773. Enforcement of minimum funding requirements.
Sec. 774. Computation of additional PBGC premium.
Sec. 775. Disclosure to participants.
Sec. 776. Missing participants.
Sec. 777. Modification of maximum guarantee for disability benefits.
Sec. 778. Procedures to facilitate distribution of termination
benefits.
Part III--Effective Dates
Sec. 781. Effective dates.
TITLE VIII--PIONEER PREFERENCES
Sec. 801. Pioneer preferences.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) GATT 1947; gatt 1994.--
(A) GATT 1947.--The term ``GATT 1947'' means the
General Agreement on Tariffs and Trade, dated October
30, 1947, annexed to the Final Act Adopted at the
Conclusion of the Second Session of the Preparatory
Committee of the United Nations Conference on Trade and
Employment, as subsequently rectified, amended, or
modified by the terms of legal instruments which have
entered into force before the date of entry into force
of the WTO Agreement.
(B) GATT 1994.--The term ``GATT 1994'' means the
General Agreement on Tariffs and Trade annexed to the
WTO Agreement.
(2) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(3) International trade commission.--The term
``International Trade Commission'' means the United States
International Trade Commission.
(4) Multilateral trade agreement.--The term ``multilateral
trade agreement'' means an agreement described in section
101(d) of this Act (other than an agreement described in
paragraph (17) or (18) of such section).
(5) Schedule xx.--The term ``Schedule XX'' means Schedule
XX--United States of America annexed to the Marrakesh Protocol
to the GATT 1994.
(6) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
(7) Uruguay round agreements.--The term ``Uruguay Round
Agreements'' means the agreements approved by the Congress
under section 101(a)(1).
(8) World trade organization and wto.--The terms ``World
Trade Organization'' and ``WTO'' mean the organization
established pursuant to the WTO Agreement.
(9) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered
into on April 15, 1994.
(10) WTO member and wto member country.--The terms ``WTO
member'' and ``WTO member country'' mean a state, or separate
customs territory (within the meaning of Article XII of the WTO
Agreement), with respect to which the United States applies the
WTO Agreement.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE URUGUAY
ROUND AGREEMENTS
Subtitle A--Approval of Agreements and Related Provisions
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE URUGUAY ROUND
AGREEMENTS.
(a) Approval of Agreements and Statement of Administrative
Action.--Pursuant to section 1103 of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2903) and section 151 of the
Trade Act of 1974 (19 U.S.C. 2191), the Congress approves--
(1) the trade agreements described in subsection (d)
resulting from the Uruguay Round of multilateral trade
negotiations under the auspices of the General Agreement on
Tariffs and Trade, entered into on April 15, 1994, and
submitted to the Congress on September 27, 1994; and
(2) the statement of administrative action proposed to
implement the agreements that was submitted to the Congress on
September 27, 1994.
(b) Entry Into Force.--At such time as the President determines
that a sufficient number of foreign countries are accepting the
obligations of the Uruguay Round Agreements, in accordance with article
XIV of the WTO Agreement, to ensure the effective operation of, and
adequate benefits for the United States under, those Agreements, the
President may accept the Uruguay Round Agreements and implement article
VIII of the WTO Agreement.
(c) Authorization of Appropriations.--There are authorized to be
appropriated annually such sums as may be necessary for the payment by
the United States of its share of the expenses of the WTO.
(d) Trade Agreements to Which This Act Applies.--Subsection (a)
applies to the WTO Agreement and to the following agreements annexed to
that Agreement:
(1) The General Agreement on Tariffs and Trade 1994.
(2) The Agreement on Agriculture.
(3) The Agreement on the Application of Sanitary and
Phytosanitary Measures.
(4) The Agreement on Textiles and Clothing.
(5) The Agreement on Technical Barriers to Trade.
(6) The Agreement on Trade-Related Investment Measures.
(7) The Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994.
(8) The Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994.
(9) The Agreement on Preshipment Inspection.
(10) The Agreement on Rules of Origin.
(11) The Agreement on Import Licensing Procedures.
(12) The Agreement on Subsidies and Countervailing
Measures.
(13) The Agreement on Safeguards.
(14) The General Agreement on Trade in Services.
(15) The Agreement on Trade-Related Aspects of Intellectual
Property Rights.
(16) The Understanding on Rules and Procedures Governing
the Settlement of Disputes.
(17) The Agreement on Government Procurement.
(18) The International Bovine Meat Agreement.
SEC. 102. RELATIONSHIP OF THE AGREEMENTS TO UNITED STATES LAW AND STATE
LAW.
(a) Relationship of Agreements to United States Law.--
(1) United states law to prevail in conflict.--No provision
of any of the Uruguay Round Agreements, nor the application of
any such provision to any person or circumstance, that is
inconsistent with any law of the United States shall have
effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United
States, including any law relating to--
(i) the protection of human, animal, or
plant life or health,
(ii) the protection of the environment, or
(iii) worker safety, or
(B) to limit any authority conferred under any law
of the United States, including section 301 of the
Trade Act of 1974,
unless specifically provided for in this Act.
(b) Relationship of Agreements to State Law.--
(1) Federal-state consultation.--
(A) In general.--Upon the enactment of this Act,
the President shall, through the intergovernmental
policy advisory committees on trade established under
section 306(c)(2)(A) of the Trade and Tariff Act of
1984 (19 U.S.C. 2114c(2)(A)), consult with the States
for the purpose of achieving conformity of State laws
and practices with the Uruguay Round Agreements.
(B) Federal-state consultation process.--The Trade
Representative shall establish within the Office of the
United States Trade Representative a Federal-State
consultation process for addressing issues relating to
the Uruguay Round Agreements that directly relate to,
or will potentially have a direct effect on, the
States. The Federal-State consultation process shall
include procedures under which--
(i) the States will be informed on a
continuing basis of matters under the Uruguay
Round Agreements that directly relate to, or
will potentially have a direct impact on, the
States;
(ii) the States will be provided an
opportunity to submit, on a continuing basis,
to the Trade Representative information and
advice with respect to matters referred to in
clause (i); and
(iii) the Trade Representative will take
into account the information and advice
received from the States under clause (ii) when
formulating United States positions regarding
matters referred to in clause (i).
The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to the Federal-State consultation
process established by this paragraph.
(C) Federal-state cooperation in wto dispute
settlement.--
(i) When a WTO member requests
consultations with the United States under
Article 4 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes
referred to in section 101(d)(16) (hereafter in
this subsection referred to as the ``Dispute
Settlement Understanding'') concerning whether
the law of a State is inconsistent with the
obligations undertaken by the United States in
any of the Uruguay Round Agreements, the Trade
Representative shall notify the Governor of the
State or the Governor's designee, and the chief
legal officer of the jurisdiction whose law is
the subject of the consultations, as soon as
possible after the request is received, but in
no event later than 7 days thereafter.
(ii) Not later than 30 days after receiving
such a request for consultations, the Trade
Representative shall consult with
representatives of the State concerned
regarding the matter. If the consultations
involve the laws of a large number of States,
the Trade Representative may consult with an
appropriate group of representatives of the
States concerned, as determined by those
States.
(iii) The Trade Representative shall make
every effort to ensure that the State concerned
is involved in the development of the position
of the United States at each stage of the
consultations and each subsequent stage of
dispute settlement proceedings regarding the
matter. In particular, the Trade Representative
shall--
(I) notify the State concerned not
later than 7 days after a WTO member
requests the establishment of a dispute
settlement panel or gives notice of the
WTO member's decision to appeal a
report by a dispute settlement panel
regarding the matter; and
(II) provide the State concerned
with the opportunity to advise and
assist the Trade Representative in the
preparation of factual information and
argumentation for any written or oral
presentations by the United States in
consultations or in proceedings of a
panel or the Appellate Body regarding
the matter.
(iv) If a dispute settlement panel or the
Appellate Body finds that the law of a State is
inconsistent with any of the Uruguay Round
Agreements, the Trade Representative shall
consult with the State concerned in an effort
to develop a mutually agreeable response to the
report of the panel or the Appellate Body and
shall make every effort to ensure that the
State concerned is involved in the development
of the United States position regarding the
response.
(D) Notice to states regarding consultations on
foreign subcentral government laws.--
(i) Subject to clause (ii), the Trade
Representative shall, at least 30 days before
making a request for consultations under
Article 4 of the Dispute Settlement
Understanding regarding a subcentral government
measure of another WTO member, notify, and
solicit the views of, appropriate
representatives of each State regarding the
matter.
(ii) In exigent circumstances clause (i)
shall not apply, in which case the Trade
Representative shall notify the appropriate
representatives of each State not later than 3
days after making the request for consultations
referred to in clause (i).
(2) Legal challenge.--
(A) In general.--No State law, or the application
of such a State law, may be declared invalid as to any
person or circumstance on the ground that the provision
or application is inconsistent with any of the Uruguay
Round Agreements, except in an action brought by the
United States for the purpose of declaring such law or
application invalid.
(B) Procedures governing action.--In any action
described in subparagraph (A) that is brought by the
United States against a State or any subdivision
thereof--
(i) a report of a dispute settlement panel
or the Appellate Body convened under the
Dispute Settlement Understanding regarding the
State law, or the law of any political
subdivision thereof, shall not be considered as
binding or otherwise accorded deference;
(ii) the United States shall have the
burden of proving that the law that is the
subject of the action, or the application of
that law, is inconsistent with the agreement in
question;
(iii) any State whose interests may be
impaired or impeded in the action shall have
the unconditional right to intervene in the
action as a party, and the United States shall
be entitled to amend its complaint to include a
claim or cross-claim concerning the law of a
State that so intervenes; and
(iv) any State law that is declared invalid
shall not be deemed to have been invalid in its
application during any period before the
court's judgment becomes final and all timely
appeals, including discretionary review, of
such judgment are exhausted.
(C) Reports to congressional committees.--At least
30 days before the United States brings an action
described in subparagraph (A), the Trade Representative
shall provide a report to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate--
(i) describing the proposed action;
(ii) describing efforts by the Trade
Representative to resolve the matter with the
State concerned by other means; and
(iii) if the State law was the subject of
consultations under the Dispute Settlement
Understanding, certifying that the Trade
Representative has substantially complied with
the requirements of paragraph (1)(C) in
connection with the matter.
Following the submission of the report, and before the action
is brought, the Trade Representative shall consult with the
committees referred to in the preceding sentence concerning the
matter.
(3) Definition of state law.--For purposes of this
subsection--
(A) the term ``State law'' includes--
(i) any law of a political subdivision of a
State; and
(ii) any State law regulating or taxing the
business of insurance; and
(B) the terms ``dispute settlement panel'' and
``Appellate Body'' have the meanings given those terms
in section 121.
(c) Effect of Agreement With Respect to Private Remedies.--
(1) Limitations.--No person other than the United States--
(A) shall have any cause of action or defense under
any of the Uruguay Round Agreements or by virtue of
congressional approval of such an agreement, or
(B) may challenge, in any action brought under any
provision of law, any action or inaction by any
department, agency, or other instrumentality of the
United States, any State, or any political subdivision
of a State on the ground that such action or inaction
is inconsistent with such agreement.
(2) Intent of congress.--It is the intention of the
Congress through paragraph (1) to occupy the field with respect
to any cause of action or defense under or in connection with
any of the Uruguay Round Agreements, including by precluding
any person other than the United States from bringing any
action against any State or political subdivision thereof or
raising any defense to the application of State law under or in
connection with any of the Uruguay Round Agreements--
(A) on the basis of a judgment obtained by the
United States in an action brought under any such
agreement; or
(B) on any other basis.
(d) Statement of Administrative Action.--The statement of
administrative action approved by the Congress under section 101(a)
shall be regarded as an authoritative expression by the United States
concerning the interpretation and application of the Uruguay Round
Agreements and this Act in any judicial proceeding in which a question
arises concerning such interpretation or application.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE;
REGULATIONS.
(a) Implementing Actions.--After the date of the enactment of this
Act--
(1) the President may proclaim such actions, and
(2) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act, or
amendment made by this Act, that takes effect on the date any of the
Uruguay Round Agreements enters into force with respect to the United
States is appropriately implemented on such date. Such proclamation or
regulation may not have an effective date earlier than the date of
entry into force with respect to the United States of the agreement to
which the proclamation or regulation relates.
(b) Regulations.--Any interim regulation necessary or appropriate
to carry out any action proposed in the statement of administrative
action approved under section 101(a) to implement an agreement
described in section 101(d) (7), (12), or (13) shall be issued not
later than 1 year after the date on which the agreement enters into
force with respect to the United States.
Subtitle B--Tariff Modifications
SEC. 111. TARIFF MODIFICATIONS.
(a) In General.--In addition to the authority provided by section
1102 of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C.
2902), the President shall have the authority to proclaim--
(1) such other modification of any duty,
(2) such other staged rate reduction, or
(3) such additional duties,
as the President determines to be necessary or appropriate to carry out
Schedule XX.
(b) Other Tariff Modifications.--Subject to the consultation and
layover requirements of section 115, the President may proclaim--
(1) the modification of any duty or staged rate reduction
of any duty set forth in Schedule XX if--
(A) the United States agrees to such modification
or staged rate reduction in a multilateral negotiation
under the auspices of the WTO, and
(B) such modification or staged rate reduction
applies to the rate of duty on an article contained in
a tariff category that was the subject of reciprocal
duty elimination or harmonization negotiations during
the Uruguay Round of multilateral trade negotiations,
and
(2) such modifications as are necessary to correct
technical errors in Schedule XX or to make other rectifications
to the Schedule.
(c) Authority To Increase Duties on Articles From Certain
Countries.--
(1) In general.--
(A) Determination with respect to certain
countries.--Notwithstanding section 251 of the Trade
Expansion Act of 1962 (19 U.S.C. 1881), after the entry
into force of the WTO Agreement with respect to the
United States, if the President--
(i) determines that a foreign country
(other than a foreign country that is a WTO
member country) is not according adequate trade
benefits to the United States, including
substantially equal competitive opportunities
for the commerce of the United States, and
(ii) consults with the Committee on Ways
and Means of the House of Representatives and
the Committee on Finance of the Senate,
the President may proclaim an increase in the rate of
duty with respect to any article of such country in
accordance with subparagraph (B).
(B) Rate of duty described.--The President may
proclaim a rate of duty on any article of a country
identified under subparagraph (A) that is equal to the
greater of--
(i) the rate of duty set forth for such
article in the base rate of duty column of
Schedule XX, or
(ii) the rate of duty set forth for such
article in the bound rate of duty column of
Schedule XX.
(2) Termination of increased duties.--The President shall
terminate any increase in the rate of duty proclaimed under
this subsection by a proclamation which shall be effective on
the earlier of--
(A) the date set out in such proclamation of
termination, or
(B) the date the WTO Agreement enters into force
with respect to the foreign country with respect to
which the determination under paragraph (1) was made.
(3) Publication of determination and termination.--The
President shall publish in the Federal Register notice of a
determination made under paragraph (1) and a termination
occurring by reason of paragraph (2).
(d) Adjustments to Certain Column 2 Rates of Duty.--At such time as
the President proclaims any modification to the HTS to implement the
provisions of Schedule XX, the President shall also proclaim the rate
of duty set forth in Column B as the column 2 rate of duty for the
subheading of the HTS that corresponds to the subheading in Schedule XX
listed in Column A.
Column A Column B
Schedule XX Rate of duty for column 2
subheading:
of the HTS:
0201.10.50........... 31.1%
0201.20.80........... 31.1%
0201.30.80........... 31.1%
0202.10.50........... 31.1%
0202.20.80........... 31.1%
0202.30.80........... 31.1%
0401.30.25........... 90.8 cents/liter
0401.30.75........... $1.936/kg
0402.10.50........... $1.018/kg
0402.21.25........... $1.018/kg
0402.21.50........... $1.285/kg
0402.21.90........... $1.831/kg
0402.29.50........... $1.299/kg + 17.5%
0402.91.60........... 36.8 cents/kg
0402.99.50........... 58.4 cents/kg
0402.99.90........... 54.5 cents/kg + 17.5%6201
0403.10.50........... $1.217/kg + 20%
0403.90.16........... 90.8 cents/liter
0403.90.45........... $1.03/kg
0403.90.55........... $1.285/kg
0403.90.65........... $1.831/kg
0403.90.78........... $1.936/kg
0403.90.95........... $1.217/kg + 20%
0404.10.11........... 20%
0404.10.15........... $1.217/kg + 10%
0404.10.90........... $1.03/kg
0404.90.30........... 25%
0404.90.50........... $1.399/kg + 10%
0405.00.40........... $1.813/kg
0405.00.90........... $2.194/kg + 10%
0406.10.08........... $1.775/kg
0406.10.18........... $2.67/kg
0406.10.28........... $1.443/kg
0406.10.38........... $1.241/kg
0406.10.48........... $2.121/kg
0406.10.58........... $2.525/kg
0406.10.68........... $1.631/kg
0406.10.78........... $1.328/kg
0406.10.88........... $1.775/kg
0406.20.28........... $2.67/kg
0406.20.33........... $1.443/kg
0406.20.39........... $1.241/kg
0406.20.48........... $2.121/kg
0406.20.53........... $2.525/kg
0406.20.63........... $2.67/kg
0406.20.67........... $1.443/kg
0406.20.71........... $1.241/kg
0406.20.75........... $2.121/kg
0406.20.79........... $2.525/kg
0406.20.83........... $1.631/kg
0406.20.87........... $1.328/kg
0406.20.91........... $1.775/kg
0406.30.18........... $2.67/kg
0406.30.28........... $1.443/kg
0406.30.38........... $1.241/kg
0406.30.48........... $2.121/kg
0406.30.53........... $1.631/kg
0406.30.63........... $2.67/kg
0406.30.67........... $1.443/kg
0406.30.71........... $1.241/kg
0406.30.75........... $2.121/kg
0406.30.79........... $2.525/kg
0406.30.83........... $1.631/kg
0406.30.87........... $1.328/kg
0406.30.91........... $1.775/kg
0406.40.70........... $2.67/kg
0406.90.12........... $1.443/kg
0406.90.18........... $2.121/kg
0406.90.33........... $2.525/kg
0406.90.38........... $2.525/kg
0406.90.43........... $2.525/kg
0406.90.48........... $2.208/kg
0406.90.64........... $1.241/kg
0406.90.68........... $2.525/kg
0406.90.74........... $2.67/kg
0406.90.78........... $1.443/kg
0406.90.84........... $1.241/kg
0406.90.88........... $2.121/kg
0406.90.92........... $1.631/kg
0406.90.94........... $1.328/kg
0406.90.97........... $1.775/kg
1202.10.80........... 192.7%
1202.20.80........... 155%
1517.90.60........... 40.2 cents/kg
1701.11.50........... 39.85 cents/kg
1701.12.10........... 6.58170 cents/kg less 0.0622005 cents/kg
for each degree under 100 degrees (and
fractions of a degree in proportion) but
not less than 5.031562 cents/kg
1701.12.50........... 42.05 cents/kg
1701.91.10........... 6.58170 cents/kg less 0.0622005 cents/kg
for each degree under 100 degrees (and
fractions of a degree in proportion) but
not less than 5.031562 cents/kg
1701.91.30........... 42.05 cents/kg
1701.91.48........... 39.9 cents/kg + 6%
1701.91.58........... 39.9 cents/kg + 6%
1701.99.10........... 6.58170 cents/kg less 0.0622005 cents/kg
for each degree under 100 degrees (and
fractions of a degree in proportion) but
not less than 5.031562 cents/kg
1701.99.50........... 42.05 cents/kg
1702.20.28........... 19.9 cents/kg of total sugars + 6%
1702.30.28........... 19.9 cents/kg of total sugars + 6%
1702.40.28........... 39.9 cents/kg of total sugars + 6%
1702.60.28........... 39.9 cents/kg of total sugars + 6%
1702.90.10........... 6.58170 cents/kg of total sugars
1702.90.20........... 42.05 cents/kg
1702.90.58........... 39.9 cents/kg of total sugars + 6%
1702.90.68........... 39.9 cents/kg + 6%
1704.90.58........... 47.4 cents/kg + 12.2%
1704.90.68........... 47.4 cents/kg + 12.2%
1704.90.78........... 47.4 cents/kg + 12.2%
1806.10.15........... 25.5 cents/kg
1806.10.28........... 39.5 cents/kg
1806.10.38........... 39.5 cents/kg
1806.10.55........... 39.5 cents/kg
1806.10.75........... 39.5 cents/kg
1806.20.26........... 43.8 cents/kg + 5%
1806.20.28........... 62.1 cents/kg + 5%
1806.20.36........... 43.8 cents/kg + 5%6201
1806.20.38........... 62.1 cents/kg + 5%
1806.20.73........... 35.9 cents/kg + 10%
1806.20.77........... 35.9 cents/kg + 10%
1806.20.82........... 43.8 cents/kg + 10%
1806.20.83........... 62.1 cents/kg + 10%
1806.20.87........... 43.8 cents/kg + 10%
1806.20.89........... 62.1 cents/kg + 10%
1806.20.92........... 43.8 cents/kg + 10%
1806.20.93........... 62.1 cents/kg + 10%
1806.20.96........... 43.8 cents/kg + 10%
1806.20.97........... 62.1 cents/kg + 10%
1806.32.06........... 43.8 cents/kg + 5%
1806.32.08........... 62.1 cents/kg + 5%
1806.32.16........... 43.8 cents/kg + 5%
1806.32.18........... 62.1 cents/kg + 5%
1806.32.70........... 43.8 cents/kg + 7%
1806.32.80........... 62.1 cents/kg + 7%
1806.90.08........... 43.8 cents/kg + 7%
1806.90.10........... 62.1 cents/kg + 7%
1806.90.18........... 43.8 cents/kg + 7%
1806.90.20........... 62.1 cents/kg + 7%
1806.90.28........... 43.8 cents/kg + 7%
1806.90.30........... 62.1 cents/kg + 7%
1806.90.38........... 43.8 cents/kg + 7%
1806.90.40........... 62.1 cents/kg + 7%
1806.90.48........... 43.8 cents/kg + 7%
1806.90.50........... 62.1 cents/kg + 7%
1806.90.58........... 43.8 cents/kg + 7%
1806.90.60........... 62.1 cents/kg + 7%
1901.10.30........... $1.217/kg + 17.5%
1901.10.40........... $1.217/kg + 17.5%
1901.10.75........... $1.217/kg + 17.5%
1901.10.85........... $1.217/kg + 17.5%
1901.20.15........... 49.8 cents/kg + 10%
1901.20.25........... 49.8 cents/kg + 10%
1901.20.35........... 49.8 cents/kg + 10%
1901.20.50........... 49.8 cents/kg + 10%
1901.20.60........... 49.8 cents/kg + 10%
1901.20.70........... 49.8 cents/kg + 10%
1901.90.36........... $1.328/kg
1901.90.42........... 25%
1901.90.44........... $1.217/kg + 16%
1901.90.46........... 25%
1901.90.48........... $1.217/kg + 16%
1901.90.54........... 27.9 cents/kg + 10%
1901.90.58........... 27.9 cents/kg + 10%
2008.11.15........... 155%
2008.11.35........... 155%
2008.11.60........... 155%
2101.10.38........... 35.9 cents/kg + 10%
2101.10.48........... 35.9 cents/kg + 10%
2101.10.58........... 35.9 cents/kg + 10%
2101.20.38........... 35.9 cents/kg + 10%
2101.20.48........... 35.9 cents/kg + 10%
2101.20.58........... 35.9 cents/kg + 10%
2103.90.78........... 35.9 cents/kg + 7.5%
2105.00.20........... 59 cents/kg + 20%
2105.00.40........... 59 cents/kg + 20%
2106.90.02........... $1.014/kg
2106.90.04........... $2.348/kg
2106.90.08........... $2.348/kg
2106.90.11........... 6.58170 cents/kg of total sugars
2106.90.12........... 42.05 cents/kg
2106.90.34........... 82.8 cents/kg + 10%
2106.90.38........... 82.8 cents/kg + 10%
2106.90.44........... 82.8 cents/kg + 10%
2106.90.48........... 82.8 cents/kg + 10%
2106.90.57........... 33.9 cents/kg + 10%
2106.90.67........... 33.9 cents/kg + 10%
2106.90.77........... 33.9 cents/kg + 10%
2106.90.87........... 33.9 cents/kg + 10%
2202.90.28........... 27.6 cents/liter + 17.5%
2309.90.28........... 94.6 cents/kg + 7.5%
2309.90.48........... 94.6 cents/kg + 7.5%
2401.10.70........... 85 cents/kg
2401.10.90........... 85 cents/kg
2401.20.30........... $1.21/kg
2401.20.45........... $1.15/kg
2401.20.55........... $1.15/kg
2801.30.20........... 37%
2805.30.00........... 31.3%
2805.40.00........... 5.7%
2811.19.10........... 4.9%
2818.10.20........... 4.1%
2822.00.00........... 1.7%
2827.39.20........... 31.9%
2833.11.50........... 3.6%
2833.27.00........... 4.2%
2836.40.20........... 4.8%
2836.60.00........... 8.4%
2837.20.10........... 5.1%
2840.11.00........... 1.2%
2840.19.00........... 0.4%
2849.20.20........... 1.6%
2903.15.00........... 88%
2903.16.00........... 33.3%
2903.30.05........... 46.3%
2906.11.00........... 6.2%
2907.12.00........... 48.3%
2909.11.00........... 4%
2912.11.00........... 12.1%
2916.15.10........... 35.2%
2916.19.30........... 24.4%
2923.20.20........... 33.4%
3213.90.00........... 48.6%
3307.10.20........... 81.7%
3307.49.00........... 73.2%
3403.11.20........... 0.4%6201
3403.19.10........... 0.4%
3506.10.10........... 30.4%
3603.00.30........... 8.3%
3603.00.90........... 0.3%
3604.10.00........... 12.5%
3606.90.30........... 56.7%
3706.10.30........... 7%
3807.00.00........... 0.2%
3823.90.33........... 26.3%
3904.61.00........... 34.1%
3916.90.10........... 40.6%
3920.51.50........... 48.2%
3920.59.80........... 51.7%
3926.90.65........... 8.4%
5201.00.18........... 36.9 cents/kg
5201.00.28........... 36.9 cents/kg
5201.00.38........... 36.9 cents/kg
5201.00.80........... 36.9 cents/kg
5202.99.30........... 9.2 cents/kg
5203.00.30........... 36.9 cents/kg
(e) Authority To Consolidate Subheadings and Modify Column 2 Rates
of Duty for Tariff Simplification Purposes.--
(1) In general.--Whenever the HTS column 1 general rates of
duty for 2 or more 8-digit subheadings are at the same level
and such subheadings are subordinate to a provision required by
the International Convention on the Harmonized Commodity
Description and Coding System, the President may proclaim,
subject to the consultation and layover requirements of section
115, that the goods described in such subheadings be provided
for in a single 8-digit subheading of the HTS, and that--
(A) the HTS column 1 general rate of duty for such
single subheading be the column 1 general rate of duty
common to all such subheadings, and
(B) the HTS column 2 rate of duty for such single
subheading be the highest column 2 rate of duty for
such subheadings that is in effect on the day before
the effective date of such proclamation.
(2) Same level of duty.--The provisions of this subsection
apply to subheadings described in paragraph (1) that have the
same column 1 general rate of duty--
(A) on the date of the enactment of this Act, or
(B) after such date of enactment as a result of a
staged reduction in such column 1 rates of duty.
SEC. 112. IMPLEMENTATION OF SCHEDULE XX PROVISIONS ON SHIP REPAIRS.
(a) In General.--Section 484E(b) of the Customs and Trade Act of
1990 (19 U.S.C. 1466 note; 104 Stat. 710) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``, and''; and
(3) by adding at the end the following new paragraph:
``(3) any entry made pursuant to section 466(h) (1) or (2)
of the Tariff Act of 1930 (19 U.S.C. 1466(h) (1) or (2)), on or
after the date of the entry into force of the WTO Agreement
with respect to the United States.''.
(b) Exemption for Certain Spare Parts.--Section 466(h) of the
Tariff Act of 1930 (19 U.S.C. 1466(h)) is amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``, or''; and
(3) by adding at the end the following new paragraph:
``(3) the cost of spare parts necessarily installed before
the first entry into the United States, but only if duty is
paid under appropriate commodity classifications of the
Harmonized Tariff Schedule of the United States upon first
entry into the United States of each such spare part purchased
in, or imported from, a foreign country.''.
SEC. 113. LIQUIDATION OR RELIQUIDATION AND REFUND OF DUTY PAID ON
CERTAIN ENTRIES.
(a) Liquidation or Reliquidation.--Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law,
and subject to subsection (b), the Secretary of the Treasury shall
liquidate or reliquidate the entries listed or otherwise described in
subsection (c) and refund any duty or excess duty that was paid, as
provided in subsection (c).
(b) Requests.--Liquidation or reliquidation may be made under
subsection (a) with respect to an entry only if a request therefor is
filed with the Customs Service, within 180 days after the date on which
the WTO Agreement enters into force with respect to the United States,
that contains sufficient information to enable the Customs Service--
(1) to locate the entry; or
(2) to reconstruct the entry if it cannot be located.
(c) Entries.--The entries referred to in subsection (a) are as
follows:
(1) Agglomerated stone tiles.--Any goods--
(A) for which the importer claimed or would have
claimed entry under subheading 6810.19.12 of the HTS on
or after October 1, 1990, and before the effective date
of a proclamation issued by the President under section
103(a) of this Act with respect to items under such
subheading in order to carry out Schedule XX, or
(B) entered on or after January 1, 1989, and before
October 1, 1990, for which entry would have been
claimed under subheading 6810.19.12 of the HTS on or
after October 1, 1990,
shall be liquidated or reliquidated as if the wording of that
subheading were ``Of stone agglomerated with binders other than
cement'', and the Secretary of the Treasury shall refund any
excess duties paid with respect to such entries.
(2) Clomiphene citrate.--
(A) Any entry, or withdrawal from warehouse for
consumption, of goods under heading 9902.29.95 of the
HTS (relating to clomiphene citrate) which was made
after December 31, 1988, and before January 1, 1993,
and with respect to which there would have been no duty
if the reference to subheading ``2922.19.15'' in such
heading were a reference to subheading ``2922.19.15 or
any subheading of chapter 30'' at the time of such
entry or withdrawal, shall be liquidated or
reliquidated as free of duty.
(B) The Secretary of the Treasury shall refund any
duties paid with respect to entries described in
subparagraph (A).
SEC. 114. MODIFICATIONS TO THE HTS.
(a) Wool.--
(1) Amendments.--Chapter 51 of the HTS is amended--
(A) by striking subheading 5101.21.60 and inserting
the following new superior text and subheadings, with
the superior text having the same degree of indentation
as the article description in subheading 5101.11.60:
`` Other:
5101.21.65 Unimproved wool; other wool, not finer 81.6 cents/kg
than 46s............................... Free +20%
5101.21.70 Other................................... 7.7 cents/kg+ Free (MX) 0.8 81.6 cents/kg
6.25% cents/kg+0.6% +20%
(IL) 3 cents/
kg+2.5% (CA) ''
;
(B) by striking subheading 5101.29.60 and inserting
the following new superior text and subheadings, with
the superior text having the same degree of indentation
as the article description in subheading 5102.10.20:
`` Other:
5101.29.65 Unimproved wool; other wool, not finer 81.6 cents/kg
than 46s.............................. Free +20%
5101.29.70 Other.................................. 7.7 cents/kg+ 0.8 cents/kg+0. 81.6 cents/kg
6.25% 6% (IL) 3 +20%
cents/kg+2.5%
(CA) 6.1 cents/
kg+5% (MX) '';
and
(C) by striking subheading 5101.30.60 and inserting
the following new superior text and subheadings, with
the superior text having the same degree of indentation
as the superior text immediately preceding subheading
5102.10.20:
`` Other:
5101.30.65 Unimproved wool; other wool, not finer 81.6 cents/kg
than 46s............................... Free +20%
5101.30.70 Other................................... 7.7 cents/kg+ Free (MX) 0.8 81.6 cents/kg
6.25% cents/kg+0.6% +20%
(IL) 3 cents/
kg+2.5% (CA) ''
(2) Effective date.--The amendments made by this subsection
take effect on the effective date of the proclamation issued by
the President under section 103(a) to carry out Schedule XX.
(b) Duty Free Treatment for Octadecyl Isocyanate and 5-Chloro-2-
(2,4-Dichloro-phenoxy)phenol.--The President--
(1) shall proclaim duty-free entry for octadecyl isocyanate
and 5-Chloro-2-(2,4-dichloro-phenoxy)phenol, to be effective on
the effective date of the proclamation issued by the President
under section 103(a) to carry out Schedule XX, and
(2) shall take such actions as are necessary to reflect
such tariff treatment in Schedule XX.
SEC. 115. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND EFFECTIVE DATE
OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation of an
action by the President by proclamation is subject to the consultation
and layover requirements of this section, such action may be proclaimed
only if--
(1) the President has obtained advice regarding the
proposed action from--
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155), and
(B) the International Trade Commission;
(2) the President has submitted a report to the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate that sets forth--
(A) the action proposed to be proclaimed and the
reasons for such actions, and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning with the first
day on which the President has met the requirements of
paragraphs (1) and (2) with respect to such action, has
expired; and
(4) the President has consulted with such committees
regarding the proposed action during the period referred to in
paragraph (3).
SEC. 116. EFFECTIVE DATE.
(a) In General.--Except as provided in section 114(a) and
subsection (b) of this section, this subtitle and the amendments made
by this subtitle take effect on the date on which the WTO Agreement
enters into force with respect to the United States.
(b) Section 115.--Section 115 takes effect on the date of the
enactment of this Act.
Subtitle C--Uruguay Round Implementation and Dispute Settlement
SEC. 121. DEFINITIONS.
For purposes of this subtitle:
(1) Administering authority.--The term ``administering
authority'' has the meaning given that term in section 771(1)
of the Tariff Act of 1930.
(2) Appellate body.--The term ``Appellate Body'' means the
Appellate Body established under Article 17.1 of the Dispute
Settlement Understanding.
(3) Appropriate congressional committees; congressional
committees.--
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the
committees referred to in subparagraph (B) and any
other committees of the Congress that have jurisdiction
involving the matter with respect to which
consultations are to be held.
(B) Congressional committees.--The term
``congressional committees'' means the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
(4) Dispute settlement panel; panel.--The terms ``dispute
settlement panel'' and ``panel'' mean a panel established
pursuant to Article 6 of the Dispute Settlement Understanding.
(5) Dispute settlement body.--The term ``Dispute Settlement
Body'' means the Dispute Settlement Body administering the
rules and procedures set forth in the Dispute Settlement
Understanding.
(6) Dispute settlement understanding.--The term ``Dispute
Settlement Understanding'' means the Understanding on Rules and
Procedures Governing the Settlement of Disputes referred to in
section 101(d)(16).
(7) General council.--The term ``General Council'' means
the General Council established under paragraph 2 of Article IV
of the WTO Agreement.
(8) Ministerial conference.--The term ``Ministerial
Conference'' means the Ministerial Conference established under
paragraph 1 of Article IV of the WTO Agreement.
(9) Other terms.--The terms ``Antidumping Agreement'',
``Agreement on Subsidies and Countervailing Measures'', and
``Safeguards Agreement'' mean the agreements referred to in
section 101(d)(7), (12), and (13), respectively.
SEC. 122. IMPLEMENTATION OF URUGUAY ROUND AGREEMENTS.
(a) Decisionmaking.--In the implementation of the Uruguay Round
Agreements and the functioning of the World Trade Organization, it is
the objective of the United States to ensure that the Ministerial
Conference and the General Council continue the practice of
decisionmaking by consensus followed under the GATT 1947, as required
by paragraph 1 of article IX of the WTO Agreement.
(b) Consultations With Congressional Committees.--In furtherance of
the objective set forth in subsection (a), the Trade Representative
shall consult with the appropriate congressional committees before any
vote is taken by the Ministerial Conference or the General Council
relating to--
(1) the adoption of an interpretation of the WTO Agreement
or another multilateral trade agreement,
(2) the amendment of any such agreement,
(3) the granting of a waiver of any obligation under any
such agreement,
(4) the adoption of any amendment to the rules or
procedures of the Ministerial Conference or the General
Council,
(5) the accession of a state or separate customs territory
to the WTO Agreement, or
(6) the adoption of any other decision,
if the action described in paragraph (1), (2), (3), (4), (5), or (6)
would substantially affect the rights or obligations of the United
States under the WTO Agreement or another multilateral trade agreement
or potentially entails a change in Federal or State law.
(c) Report on Decisions.--
(1) In general.--Not later than 30 days after the end of
any calendar year in which the Ministerial Conference or the
General Council adopts by vote any decision to take any action
described in paragraph (1), (2), (4), or (6) of subsection (b),
the Trade Representative shall submit a report to the
appropriate congressional committees describing--
(A) the nature of the decision;
(B) the efforts made by the United States to have
the matter decided by consensus pursuant to paragraph 1
of article IX of the WTO Agreement, and the results of
those efforts;
(C) which countries voted for, and which countries
voted against, the decision;
(D) the rights or obligations of the United States
affected by the decision and any Federal or State law
that would be amended or repealed, if the President
after consultation with the Congress determined that
such amendment or repeal was an appropriate response;
and
(E) the action the President intends to take in
response to the decision or, if the President does not
intend to take any action, the reasons therefor.
(2) Additional reporting requirements.--
(A) Grant of waiver.--In the case of a decision to
grant a waiver described in subsection (b)(3), the
report under paragraph (1) shall describe the terms and
conditions of the waiver and the rights and obligations
of the United States that are affected by the waiver.
(B) Accession.--In the case of a decision on
accession described in subsection (b)(5), the report
under paragraph (1) shall state whether the United
States intends to invoke Article XIII of the WTO
Agreement.
(d) Consultation on Report.--Promptly after the submission of a
report under subsection (c), the Trade Representative shall consult
with the appropriate congressional committees with respect to the
report.
SEC. 123. DISPUTE SETTLEMENT PANELS AND PROCEDURES.
(a) Review by President.--The President shall review annually the
WTO panel roster and shall include the panel roster and the list of
persons serving on the Appellate Body in the annual report submitted by
the President under section 163(a) of the Trade Act of 1974.
(b) Qualifications of Appointees to Panels.--The Trade
Representative shall--
(1) seek to ensure that persons appointed to the WTO panel
roster are well-qualified, and that the roster includes persons
with expertise in the subject areas covered by the Uruguay
Round Agreements; and
(2) inform the President of persons nominated to the roster
by other WTO member countries.
(c) Rules Governing Conflicts of Interest.--The Trade
Representative shall seek the establishment by the General Council and
the Dispute Settlement Body of rules governing conflicts of interest by
persons serving on panels and members of the Appellate Body and shall
describe, in the annual report submitted under section 124, any
progress made in establishing such rules.
(d) Notification of Disputes.--Promptly after a dispute settlement
panel is established to consider the consistency of Federal or State
law with any of the Uruguay Round Agreements, the Trade Representative
shall notify the appropriate congressional committees of--
(1) the nature of the dispute, including the matters set
forth in the request for the establishment of the panel, the
legal basis of the complaint, and the specific measures, in
particular any State or Federal law cited in the request for
establishment of the panel;
(2) the identity of the persons serving on the panel; and
(3) whether there was any departure from the rule of
consensus with respect to the selection of persons to serve on
the panel.
(e) Notice of Appeals of Panel Reports.--If an appeal is taken of a
report of a panel in a proceeding described in subsection (d), the
Trade Representative shall, promptly after the notice of appeal is
filed, notify the appropriate congressional committees of--
(1) the issues under appeal; and
(2) the identity of the persons serving on the Appellate
Body who are reviewing the report of the panel.
(f) Actions Upon Circulation of Reports.--Promptly after the
circulation of a report of a panel or of the Appellate Body to WTO
members in a proceeding described in subsection (d), the Trade
Representative shall--
(1) notify the appropriate congressional committees of the
report;
(2) in the case of a report of a panel, consult with the
appropriate congressional committees concerning the nature of
any appeal that may be taken of the report; and
(3) if the report is adverse to the United States, consult
with the appropriate congressional committees concerning
whether to implement the report's recommendation and, if so,
the manner of such implementation and the period of time needed
for such implementation.
(g) Requirements for Agency Action.--
(1) Changes in agency regulations or practice.--In any case
in which a dispute settlement panel or the Appellate Body finds
in its report that a regulation or practice of a department or
agency of the United States is inconsistent with any of the
Uruguay Round Agreements, that regulation or practice may not
be amended, rescinded, or otherwise modified in the
implementation of such report unless and until--
(A) the appropriate congressional committees have
been consulted under subsection (f);
(B) the Trade Representative has sought advice
regarding the modification from relevant private sector
advisory committees established under section 135 of
the Trade Act of 1974 (19 U.S.C. 2155);
(C) the head of the relevant department or agency
has provided an opportunity for public comment by
publishing in the Federal Register the proposed
modification and the explanation for the modification;
(D) the Trade Representative has submitted to the
appropriate congressional committees a report
describing the proposed modification, the reasons for
the modification, and a summary of the advice obtained
under subparagraph (B) with respect to the
modification;
(E) the Trade Representative and the head of the
relevant department or agency have consulted with the
appropriate congressional committees on the proposed
contents of the final rule or other modification; and
(F) the final rule or other modification has been
published in the Federal Register.
(2) Effective date of modification.--A final rule or other
modification to which paragraph (1) applies may not go into
effect before the end of the 60-day period beginning on the
date on which consultations under paragraph (1)(E) begin,
unless the President determines that an earlier effective date
is in the national interest.
(3) Vote by congressional committees.--During the 60-day
period described in paragraph (2), the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate may vote to indicate the agreement or
disagreement of the committee with the proposed contents of the
final rule or other modification. Any such vote shall not be
binding on the department or agency which is implementing the
rule or other modification.
(4) Inapplicability to itc.--This subsection does not apply
to any regulation or practice of the International Trade
Commission.
(h) Consultations Regarding Review of WTO Rules and Procedures.--
Before the review is conducted of the dispute settlement rules and
procedures of the WTO that is provided for in the Decision on the
Application of the Understanding on Rules and Procedures Governing the
Settlement of Disputes, as such decision is set forth in the
Ministerial Declarations and Decisions adopted on April 15, 1994,
together with the Uruguay Round Agreements, the Trade Representative
shall consult with the congressional committees regarding the policy of
the United States concerning the review.
SEC. 124. ANNUAL REPORT ON THE WTO.
Not later than March 1 of each year beginning in 1996, the Trade
Representative shall submit to the Congress a report describing, for
the preceding fiscal year of the WTO--
(1) the major activities and work programs of the WTO,
including the functions and activities of the committees
established under article IV of the WTO Agreement, and the
expenditures made by the WTO in connection with those
activities and programs;
(2) the percentage of budgetary assessments by the WTO that
were accounted for by each WTO member country, including the
United States;
(3) the total number of personnel employed or retained by
the Secretariat of the WTO, and the number of professional,
administrative, and support staff of the WTO;
(4) for each personnel category described in paragraph (3),
the number of citizens of each country, and the average salary
of the personnel, in that category;
(5) each report issued by a panel or the Appellate Body in
a dispute settlement proceeding regarding Federal or State law,
and any efforts by the Trade Representative to provide for
implementation of the recommendations contained in a report
that is adverse to the United States;
(6) each proceeding before a panel or the Appellate Body
that was initiated during that fiscal year regarding Federal or
State law, the status of the proceeding, and the matter at
issue;
(7) the status of consultations with any State whose law
was the subject of a report adverse to the United States that
was issued by a panel or the Appellate Body; and
(8) any progress achieved in increasing the transparency of
proceedings of the Ministerial Conference and the General
Council, and of dispute settlement proceedings conducted
pursuant to the Dispute Settlement Understanding.
SEC. 125. REVIEW OF PARTICIPATION IN THE WTO.
(a) Report on the Operation of the WTO.--The first annual report
submitted to the Congress under section 124--
(1) after the end of the 5-year period beginning on the
date on which the WTO Agreement enters into force with respect
to the United States, and
(2) after the end of every 5-year period thereafter,
shall include an analysis of the effects of the WTO Agreement on the
interests of the United States, the costs and benefits to the United
States of its participation in the WTO, and the value of the continued
participation of the United States in the WTO.
(b) Congressional Disapproval of U.S. Participation in the WTO.--
(1) General rule.--The approval of the Congress, provided
under section 101(a), of the WTO Agreement shall cease to be
effective if, and only if, a joint resolution described in
subsection (c) is enacted into law pursuant to the provisions
of paragraph (2).
(2) Procedural provisions.--(A) The requirements of this
paragraph are met if the joint resolution is enacted under
subsection (c), and
(i) the Congress adopts and transmits the joint
resolution to the President before the end of the 90-
day period (excluding any day described in section
154(b) of the Trade Act of 1974), beginning on the date
on which the Congress receives a report referred to in
subsection (a), and
(ii) if the President vetoes the joint resolution,
each House of Congress votes to override that veto on
or before the later of the last day of the 90-day
period referred to in clause (i) or the last day of the
15-day period (excluding any day described in section
154(b) of the Trade Act of 1974) beginning on the date
on which the Congress receives the veto message from
the President.
(B) A joint resolution to which this section applies may be
introduced at any time on or after the date on which the
President transmits to the Congress a report described in
subsection (a), and before the end of the 90-day period
referred to in subparagraph (A).
(c) Joint Resolutions.--
(1) Joint Resolutions.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution of the
2 Houses of Congress, the matter after the resolving clause of
which is as follows: ``That the Congress withdraws its
approval, provided under section 101(a) of the Uruguay Round
Agreements Act, of the WTO Agreement as defined in section 2(9)
of that Act.''.
(2) Procedures.--(A) Joint resolutions may be introduced in
either House of the Congress by any member of such House.
(B) Subject to the provisions of this subsection, the
provisions of subsections (b), (d), (e), and (f) of section 152
of the Trade Act of 1974 (19 U.S.C. 2192(b), (d), (e), and (f))
apply to joint resolutions to the same extent as such
provisions apply to resolutions under such section.
(C) If the committee of either House to which a joint
resolution has been referred has not reported it by the close
of the 45th day after its introduction (excluding any day
described in section 154(b) of the Trade Act of 1974), such
committee shall be automatically discharged from further
consideration of the joint resolution and it shall be placed on
the appropriate calendar.
(D) It is not in order for--
(i) the Senate to consider any joint resolution
unless it has been reported by the Committee on Finance
or the committee has been discharged under subparagraph
(C); or
(ii) the House of Representatives to consider any
joint resolution unless it has been reported by the
Committee on Ways and Means or the committee has been
discharged under subparagraph (C).
(E) A motion in the House of Representatives to proceed to
the consideration of a joint resolution may only be made on the
second legislative day after the calendar day on which the
Member making the motion announces to the House his or her
intention to do so.
(3) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives or
the Senate to consider a joint resolution (other than a joint
resolution received from the other House), if that House has
previously adopted a joint resolution under this section.
(d) Rules of House of Representatives and Senate.--This section is
enacted by the Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such is
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.
SEC. 126. INCREASED TRANSPARENCY.
The Trade Representative shall seek the adoption by the Ministerial
Conference and General Council of procedures that will ensure broader
application of the principle of transparency and clarification of the
costs and benefits of trade policy actions, through the observance of
open and equitable procedures in trade matters by the Ministerial
Conference and the General Council, and by the dispute settlement
panels and the Appellate Body under the Dispute Settlement
Understanding.
SEC. 127. ACCESS TO THE WTO DISPUTE SETTLEMENT PROCESS.
(a) In General.--Whenever the United States is a party before a
dispute settlement panel established pursuant to Article 6 of the
Dispute Settlement Understanding, the Trade Representative shall, at
each stage of the proceeding before the panel or the Appellate Body,
consult with the appropriate congressional committees, the petitioner
(if any) under section 302(a) of the Trade Act of 1974 (19 U.S.C. 2412)
with respect to the matter that is the subject of the proceeding, and
relevant private sector advisory committees established under section
135 of the Trade Act of 1974 (19 U.S.C. 2155), and shall consider the
views of representatives of appropriate interested private sector and
nongovernmental organizations concerning the matter.
(b) Notice and Public Comment.--In any proceeding described in
subsection (a), the Trade Representative shall--
(1) promptly after requesting the establishment of a panel,
or receiving a request from another WTO member country for the
establishment of a panel, publish a notice in the Federal
Register--
(A) identifying the initial parties to the dispute,
(B) setting forth the major issues raised by the
country requesting the establishment of a panel and the
legal basis of the complaint,
(C) identifying the specific measures, including
any State or Federal law cited in the request for
establishment of the panel, and
(D) seeking written comments from the public
concerning the issues raised in the dispute; and
(2) take into account any advice received from appropriate
congressional committees and relevant private sector advisory
committees referred to in subsection (a), and written comments
received pursuant to paragraph (1)(D), in preparing United
States submissions to the panel or the Appellate Body.
(c) Access to Documents.--In each proceeding described in
subsection (a), the Trade Representative shall--
(1) make written submissions by the United States referred
to in subsection (b) available to the public promptly after
they are submitted to the panel or Appellate Body, except that
the Trade Representative is authorized to withhold from
disclosure any information contained in such submissions
identified by the provider of the information as proprietary
information or information treated as confidential by a foreign
government;
(2) request each other party to the dispute to permit the
Trade Representative to make that party's written submissions
to the panel or the Appellate Body available to the public; and
(3) make each report of the panel or the Appellate Body
available to the public promptly after it is circulated to WTO
members, and inform the public of such availability.
(d) Requests for Nonconfidential Summaries.--In any dispute
settlement proceeding conducted pursuant to the Dispute Settlement
Understanding, the Trade Representative shall request each party to the
dispute to provide nonconfidential summaries of its written
submissions, if that party has not made its written submissions public,
and shall make those summaries available to the public promptly after
receiving them.
(e) Public File.--The Trade Representative shall maintain a file
accessible to the public on each dispute settlement proceeding to which
the United States is a party that is conducted pursuant to the Dispute
Settlement Understanding. The file shall include all United States
submissions in the proceeding and a listing of any submissions to the
Trade Representative from the public with respect to the proceeding, as
well as the report of the dispute settlement panel and the report of
the Appellate Body.
(f) Conforming Amendment.--Section 135(a)(1)(B) of the Trade Act of
1974 (19 U.S.C. 2155(a)(1)(B)) is amended to read as follows:
``(B) the operation of any trade agreement once
entered into, including preparation for dispute
settlement panel proceedings to which the United States
is a party; and''.
SEC. 128. ADVISORY COMMITTEE PARTICIPATION.
Section 135(b)(1) of the Trade Act of 1974 (19 U.S.C. 2155(b)(1))
is amended by inserting ``nongovernmental environmental and
conservation organizations,'' after ``retailers,''.
SEC. 129. ADMINISTRATIVE ACTION FOLLOWING WTO PANEL REPORTS.
(a) Action by United States International Trade Commission.--
(1) Advisory report.--If a dispute settlement panel finds
in an interim report under Article 15 of the Dispute Settlement
Understanding, or the Appellate Body finds in a report under
Article 17 of that Understanding, that an action by the
International Trade Commission in connection with a particular
proceeding is not in conformity with the obligations of the
United States under the Antidumping Agreement, the Safeguards
Agreement, or the Agreement on Subsidies and Countervailing
Measures, the Trade Representative may request the Commission
to issue an advisory report on whether title VII of the Tariff
Act of 1930 or title II of the Trade Act of 1974, as the case
may be, permits the Commission to take steps in connection with
the particular proceeding that would render its action not
inconsistent with the findings of the panel or the Appellate
Body concerning those obligations. The Trade Representative
shall notify the congressional committees of such request.
(2) Time limits for report.--The Commission shall transmit
its report under paragraph (1) to the Trade Representative--
(A) in the case of an interim report described in
paragraph (1), within 30 calendar days after the Trade
Representative requests the report; and
(B) in the case of a report of the Appellate Body,
within 21 calendar days after the Trade Representative
requests the report.
(3) Consultations on request for commission
determination.--If a majority of the Commissioners issues an
affirmative report under paragraph (1), the Trade
Representative shall consult with the congressional committees
concerning the matter.
(4) Commission determination.--Notwithstanding any
provision of the Tariff Act of 1930 or title II of the Trade
Act of 1974, if a majority of the Commissioners issues an
affirmative report under paragraph (1), the Commission, upon
the written request of the Trade Representative, shall issue a
determination in connection with the particular proceeding that
would render the Commission's action described in paragraph (1)
not inconsistent with the findings of the panel or Appellate
Body. The Commission shall issue its determination not later
than 120 days after the request from the Trade Representative
is made.
(5) Consultations on implementation of commission
determination.--The Trade Representative shall consult with the
congressional committees before the Commission's determination
under paragraph (4) is implemented.
(6) Revocation of order.--If, by virtue of the Commission's
determination under paragraph (4), an antidumping or
countervailing duty order with respect to some or all of the
imports that are subject to the action of the Commission
described in paragraph (1) is no longer supported by an
affirmative Commission determination under title VII of the
Tariff Act of 1930 or this subsection, the Trade Representative
may, after consulting with the congressional committees under
paragraph (5), direct the administering authority to revoke the
antidumping or countervailing duty order in whole or in part.
(7) Modification of action under title ii of trade act of
1974.--Section 204(b) of the Trade Act of 1974 (19 U.S.C.
2254(b)) is amended by adding at the end the following new
paragraph:
``(3) Notwithstanding paragraph (1), the President may,
after receipt of a Commission determination under section
129(a)(4) of the Uruguay Round Agreements Act and consulting
with the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate,
reduce, modify, or terminate action taken under section 203.''.
(b) Action by Administering Authority.--
(1) Consultations with administering authority and
congressional committees.--Promptly after a report by a dispute
settlement panel or the Appellate body is issued that contains
findings that an action by the administering authority in a
proceeding under title VII of the Tariff Act of 1930 is not in
conformity with the obligations of the United States under the
Antidumping Agreement or the Agreement on Subsidies and
Countervailing Measures, the Trade Representative shall consult
with the administering authority and the congressional
committees on the matter.
(2) Determination by administering authority.--
Notwithstanding any provision of the Tariff Act of 1930, the
administering authority shall, within 180 days after receipt of
a written request from the Trade Representative, issue a
determination in connection with the particular proceeding that
would render the administering authority's action described in
paragraph (1) not inconsistent with the findings of the panel
or the Appellate Body.
(3) Consultations before implementation.--Before the
administering authority implements any determination under
paragraph (2), the Trade Representative shall consult with the
administering authority and the congressional committees with
respect to such determination.
(4) Implementation of determination.--The Trade
Representative may, after consulting with the administering
authority and the congressional committees under paragraph (3),
direct the administering authority to implement, in whole or in
part, the determination made under paragraph (2).
(c) Effects of Determinations; Notice of Implementation.--
(1) Effects of determinations.--Determinations concerning
title VII of the Tariff Act of 1930 that are implemented under
this section shall apply with respect to unliquidated entries
of the subject merchandise (as defined in section 771 of that
Act) that are entered, or withdrawn from warehouse, for
consumption on or after--
(A) in the case of a determination by the
Commission under subsection (a)(4), the date on which
the Trade Representative directs the administering
authority under subsection (a)(6) to revoke an order
pursuant to that determination, and
(B) in the case of a determination by the
administering authority under subsection (b)(2), the
date on which the Trade Representative directs the
administering authority under subsection (b)(4) to
implement that determination.
(2) Notice of implementation.--
(A) The administering authority shall publish in
the Federal Register notice of the implementation of
any determination made under this section with respect
to title VII of the Tariff Act of 1930.
(B) The Trade Representative shall publish in the
Federal Register notice of the implementation of any
determination made under this section with respect to
title II of the Trade Act of 1974.
(d) Opportunity for Comment by Interested Parties.--Prior to
issuing a determination under this section, the administering authority
or the Commission, as the case may be, shall provide interested parties
with an opportunity to submit written comments and, in appropriate
cases, may hold a hearing, with respect to the determination.
(e) Judicial or Binational Panel Review.--
(1) Review of determinations on record.--Section 516A(a)(2)
of the Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) in subclause (I) by striking ``(B),
or'' and inserting ``(B)'', and
(ii) by adding after subclause (II) the
following:
``(III) notice of the
implementation of any determination
described in clause (vii) of
subparagraph (B), or''; and
(B) in subparagraph (B), by adding at the end the
following new clause:
``(vii) A determination by the
administering authority or the Commission under
section 129 of the Uruguay Round Agreements Act
concerning a determination under title VII of
the Tariff Act of 1930.''.
(2) Time limits for cases involving free trade area
countries.--Section 516A(a)(5) of the Tariff Act of 1930 (19
U.S.C. 1516a(a)(5)) is amended by adding at the end the
following new subparagraph:
``(E) For a determination described in clause (vii)
of paragraph (2)(B), the 31st day after the date on
which notice of the implementation of the determination
is published in the Federal Register.''.
(3) Review of cases involving free trade area country
merchandise.--Section 516A(g)(8)(A)(i) of the Tariff Act of
1930 (19 U.S.C. 1516a(g)(8)(A)(i)) is amended by striking
``subparagraph (A) or (B)'' and inserting ``subparagraph (A),
(B), or (E)''.
SEC. 130. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle take effect
on the date on which the WTO Agreement enters into force with respect
to the United States.
Subtitle D--Related Provisions
SEC. 131. WORKING PARTY ON WORKER RIGHTS.
(a) In General.--The President shall seek the establishment in the
GATT 1947, and, upon entry into force of the WTO Agreement with respect
to the United States, in the WTO, of a working party to examine the
relationship of internationally recognized worker rights, as defined in
section 502(a)(4) of the Trade Act of 1974, to the articles,
objectives, and related instruments of the GATT 1947 and of the WTO,
respectively.
(b) Objectives of Working Party.--The objectives of the United
States for the working party described in subsection (a) are to--
(1) explore the linkage between international trade and
internationally recognized worker rights, as defined in section
502(a)(4) of the Trade Act of 1974, taking into account
differences in the level of development among countries;
(2) examine the effects on international trade of the
systematic denial of such rights;
(3) consider ways to address such effects; and
(4) develop methods to coordinate the work program of the
working party with the International Labor Organization.
(c) Report to Congress.--The President shall report to the
Congress, not later than 1 year after the date of the enactment of this
Act, on the progress made in establishing the working party under this
section, and on United States objectives with respect to the working
party's work program.
SEC. 132. IMPLEMENTATION OF RULES OF ORIGIN WORK PROGRAM.
If the President enters into an agreement developed under the work
program described in Article 9 of the Agreement on Rules of Origin
referred to in section 101(d)(10), the President may implement United
States obligations under such an agreement under United States law only
pursuant to authority granted to the President for that purpose by law
enacted after the effective date of this title.
SEC. 133. MEMBERSHIP IN WTO OF BOYCOTTING COUNTRIES.
It is the sense of the Congress that the Trade Representative
should vigorously oppose the admission into the World Trade
Organization of any country which, through its laws, regulations,
official policies, or governmental practices, fosters, imposes,
complies with, furthers, or supports any boycott described in section
8(a) of the Export Administration Act of 1979 (50 U.S.C. App. 2407(a))
(as in effect on August 20, 1994), including requiring or encouraging
entities within that country to refuse to do business with persons who
do not comply with requests to take any action prohibited under that
section.
SEC. 134. AFRICA TRADE AND DEVELOPMENT POLICY.
(a) Development of Policy.--The President should develop and
implement a comprehensive trade and development policy for the
countries of Africa.
(b) Reports to Congress.--The President shall, not later than 12
months after the date of the enactment of this Act and annually
thereafter for a period of 4 years, submit to the Committee on Ways and
Means and the Committee on Foreign Affairs of the House of
Representatives, the Committee on Finance and the Committee on Foreign
Relations of the Senate, and other appropriate committees of the
Congress, a report on the steps taken to carry out subsection (a).
SEC. 135. OBJECTIVES FOR EXTENDED NEGOTIATIONS.
(a) Trade in Financial Services.--The principal negotiating
objective of the United States in the extended negotiations on
financial services to be conducted under the auspices of the WTO is to
seek to secure commitments, from a wide range of commercially important
developed and developing countries, to reduce or eliminate barriers to
the supply of financial services, including barriers that deny national
treatment or market access by restricting the establishment or
operation of financial services providers, as the condition for the
United States--
(1) offering commitments to provide national treatment and
market access in each of the financial services subsectors, and
(2) making such commitments on a most-favored-nation basis.
(b) Trade in Basic Telecommunications Services.--The principal
negotiating objective of the United States in the extended negotiations
on basic telecommunications services to be conducted under the auspices
of the WTO is to obtain the opening on nondiscriminatory terms and
conditions of foreign markets for basic telecommunications services
through facilities-based competition or through the resale of services
on existing networks.
(c) Trade in Civil Aircraft.--
(1) Negotiations.--The principal negotiating objectives of
the United States in the extended negotiations on trade in
civil aircraft to be conducted under the auspices of the WTO
are--
(A) to obtain competitive opportunities for United
States exports in foreign markets substantially
equivalent to those afforded to foreign products in the
United States,
(B) to obtain the reduction or elimination of
specific tariff and nontariff barriers, including
through expanded membership in the Agreement on Trade
in Civil Aircraft and in the US-EC bilateral agreement
for large civil aircraft,
(C) to maintain vigorous and effective disciplines
on subsidies practices with respect to civil aircraft
products under the Agreement on Subsidies and
Countervailing Measures referred to in section
101(d)(12),
(D) to maintain the scope and coverage on indirect
support as specified in the US-EC bilateral agreement
on large civil aircraft, and
(E) to obtain increased transparency with respect
to foreign subsidy programs in the civil aircraft
sector, both through greater government disclosure with
respect to the use of taxpayer moneys and higher
financial disclosure standards for companies receiving
government supports (including disclosure comparable to
that required under United States securities laws).
(2) Definitions.--For purposes of paragraph (1)--
(A) the term ``civil aircraft'' means those
products to which the Agreement on Trade in Civil
Aircraft applies,
(B) the term ``large civil aircraft'' has the
meaning given that term in Annex II to the US-EC
bilateral agreement,
(C) the term ``indirect support'' means indirect
government support as defined in Annex II to the US-EC
bilateral agreement,
(D) the term ``Agreement on Trade in Civil
Aircraft'' means the Agreement on Trade in Civil
Aircraft approved by the Congress under section 2 of
the Trade Agreements Act of 1979, and
(E) the term ``US-EC bilateral agreement'' means
the Agreement Concerning the Application of the GATT
Agreement on Trade in Civil Aircraft Between the
European Economic Community and the Government of the
United States of America on trade in large civil
aircraft, entered into on July 17, 1992.
SEC. 136. REPEAL OF TAX ON IMPORTED PERFUMES; DRAWBACK OF TAX ON
DISTILLED SPIRITS USED IN PERFUME MANUFACTURE.
(a) Repeal of Tax on Imported Perfumes.--Subsection (a) of section
5001 of the Internal Revenue Code of 1986 is amended by striking
paragraph (3) and redesignating the following paragraphs accordingly.
(b) Drawback of Tax on Distilled Spirits Used in Perfume
Manufacture.--Sections 5131(a), 5132, 5134(c)(1), and 7652(g) of such
Code are each amended by striking ``or flavoring extracts'' and
inserting ``flavoring extracts, or perfume''.
(c) Conforming Amendments.--
(1) Subsection (b) of section 5002 of such Code is amended
by striking paragraph (1) and redesignating the following
paragraphs accordingly.
(2) Subsection (f) of section 5005 of such Code is
amended--
(A) by striking ``section 5001(a)(6) and (7)'' in
paragraph (3) and inserting ``section 5001(a)(5) and
(6)'', and
(B) by striking ``section 5001(a)(5)'' in paragraph
(4) and inserting ``section 5001(a)(4)''.
(3) Subsection (b) of section 5007 of such Code is amended
to read as follows:
``(b) Collection of Tax on Imported Distilled Spirits.--The
internal revenue tax imposed by section 5001(a)(1) and (2) upon
imported distilled spirits shall be collected by the Secretary and
deposited as internal revenue collections, under such regulations as
the Secretary may prescribe. Section 5688 shall be applicable to the
disposition of imported spirits.''.
(4) Paragraph (3) of section 5007(c) of such Code is
amended by striking ``section 5001(a)(5), (6), and (7)'' and
inserting ``section 5001(a)(4), (5), and (6)''.
(5) Paragraph (1) of section 5061(b) of such Code is
amended to read as follows:
``(1) section 5001(a)(4), (5), or (6),''.
(d) Effective Date.--The amendments made by this section shall take
effect on January 1, 1995.
SEC. 137. CERTAIN NONRUBBER FOOTWEAR.
In the case of nonrubber footwear imported from Brazil--
(1) which is subject to Treasury Decision 74-233, dated
September 9, 1974,
(2) which was entered, or withdrawn from warehouse for
consumption, on or before October 28, 1981, and
(3) with respect to which entries are unliquidated on the
date of the enactment of this Act,
countervailing duties shall be assessed at rates equal to the amount of
the cash deposit of the estimated countervailing duties required on
such footwear at the time of entry or withdrawal from warehouse for
consumption. Interest on underpayments of amounts required to be
deposited as countervailing duties shall be paid in accordance with
section 778 of the Tariff Act of 1930 (19 U.S.C. 1677g).
SEC. 138. EFFECTIVE DATE.
(a) In General.--Except as provided in section 136(d) and
subsection (b) of this section, this subtitle and the amendments made
by this subtitle take effect on the date of the enactment of this Act.
(b) Sections 132 and 135.--Sections 132 and 135 take effect on the
date on which the WTO Agreement enters into force with respect to the
United States.
TITLE II--ANTIDUMPING AND COUNTERVAILING DUTY PROVISIONS
SEC. 201. REFERENCE.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Tariff Act of 1930.
Subtitle A--General Provisions
SEC. 211. ACTION WITH RESPECT TO PETITIONS.
(a) Countervailing Duty Investigations.--Section 702(b) (19 U.S.C.
1671a(b)) is amended--
(1) in paragraph (3) by striking ``subsection 702(b)(1)''
and inserting ``paragraph (1)'', and
(2) by adding at the end the following:
``(4) Action with respect to petitions.--
``(A) Notification of governments.--Upon receipt of
a petition filed under paragraph (1), the administering
authority shall--
``(i) notify the government of any
exporting country named in the petition by
delivering a public version of the petition to
an appropriate representative of such country;
and
``(ii) provide the government of any
exporting country named in the petition that is
a Subsidies Agreement country an opportunity
for consultations with respect to the petition.
``(B) Acceptance of communications.--The
administering authority shall not accept any
unsolicited oral or written communication from any
person other than an interested party described in
section 771(9) (C), (D), (E), (F), or (G) before the
administering authority makes its decision whether to
initiate an investigation, except as provided in
subparagraph (A)(ii) and subsection (c)(4)(D), and
except for inquiries regarding the status of the
administering authority's consideration of the
petition.
``(C) Nondisclosure of certain information.--The
administering authority and the Commission shall not
disclose information with regard to any draft petition
submitted for review and comment before it is filed
under paragraph (1).''.
(b) Antidumping Investigations.--Section 732(b) (19 U.S.C.
1673a(b)) is amended by adding at the end the following:
``(3) Action with respect to petitions.--
``(A) Notification of governments.--Upon receipt of
a petition filed under paragraph (1), the administering
authority shall notify the government of any exporting
country named in the petition by delivering a public
version of the petition to an appropriate
representative of such country.
``(B) Acceptance of communications.--The
administering authority shall not accept any
unsolicited oral or written communication from any
person other than an interested party described in
section 771(9) (C), (D), (E), (F), or (G) before the
administering authority makes its decision whether to
initiate an investigation, except as provided in
subsection (c)(4)(D), and except for inquiries
regarding the status of the administering authority's
consideration of the petition.
``(C) Nondisclosure of certain information.--The
administering authority and the Commission shall not
disclose information with regard to any draft petition
submitted for review and comment before it is filed
under paragraph (1).''.
SEC. 212. PETITION AND PRELIMINARY DETERMINATION.
(a) General Requirements.--
(1) Countervailing duty petition.--Section 702(c) (19
U.S.C. 1671a(c)) is amended to read as follows:
``(c) Petition Determination.--
``(1) In general.--
``(A) Time for initial determination.--Except as
provided in subparagraph (B), within 20 days after the
date on which a petition is filed under subsection (b),
the administering authority shall--
``(i) after examining, on the basis of
sources readily available to the administering
authority, the accuracy and adequacy of the
evidence provided in the petition, determine
whether the petition alleges the elements
necessary for the imposition of a duty under
section 701(a) and contains information
reasonably available to the petitioner
supporting the allegations, and
``(ii) determine if the petition has been
filed by or on behalf of the industry.
``(B) Extension of time.--In any case in which the
administering authority is required to poll or
otherwise determine support for the petition by the
industry under paragraph (4)(D), the administering
authority may, in exceptional circumstances, apply
subparagraph (A) by substituting `a maximum of 40 days'
for `20 days'.
``(C) Time limits where petition involves same
merchandise as an order that has been revoked.--If a
petition is filed under this section with respect to
merchandise that was the subject merchandise of--
``(i) a countervailing duty order that was
revoked under section 751(d) in the 24 months
preceding the date the petition is filed, or
``(ii) a suspended investigation that was
terminated under section 751(d) in the 24
months preceding the date the petition is
filed,
the administering authority and the Commission shall,
to the maximum extent practicable, expedite any
investigation initiated under this section with respect
to the petition.
``(2) Affirmative determinations.--If the determinations
under clauses (i) and (ii) of paragraph (1)(A) are affirmative,
the administering authority shall initiate an investigation to
determine whether a countervailable subsidy is being provided
with respect to the subject merchandise.
``(3) Negative determinations.--If the determination under
clause (i) or (ii) of paragraph (1)(A) is negative, the
administering authority shall dismiss the petition, terminate
the proceeding, and notify the petitioner in writing of the
reasons for the determination.
``(4) Determination of industry support.--
``(A) General rule.--For purposes of this
subsection, the administering authority shall determine
that the petition has been filed by or on behalf of the
industry, if--
``(i) the domestic producers or workers who
support the petition account for at least 25
percent of the total production of the domestic
like product, and
``(ii) the domestic producers or workers
who support the petition account for more than
50 percent of the production of the domestic
like product produced by that portion of the
industry expressing support for or opposition
to the petition.
``(B) Certain positions disregarded.--
``(i) Producers related to foreign
producers.--In determining industry support
under subparagraph (A), the administering
authority shall disregard the position of
domestic producers who oppose the petition, if
such producers are related to foreign
producers, as defined in section 771(4)(B)(ii),
unless such domestic producers demonstrate that
their interests as domestic producers would be
adversely affected by the imposition of a
countervailing duty order.
``(ii) Producers who are importers.--The
administering authority may disregard the
position of domestic producers of a domestic
like product who are importers of the subject
merchandise.
``(C) Special rule for regional industries.--If the
petition alleges that the industry is a regional
industry, the administering authority shall determine
whether the petition has been filed by or on behalf of
the industry by applying subparagraph (A) on the basis
of production in the region.
``(D) Polling the industry.--If the petition does
not establish support of domestic producers or workers
accounting for more than 50 percent of the total
production of the domestic like product, the
administering authority shall--
``(i) poll the industry or rely on other
information in order to determine if there is
support for the petition as required by
subparagraph (A), or
``(ii) if there is a large number of
producers in the industry, the administering
authority may determine industry support for
the petition by using any statistically valid
sampling method to poll the industry.
``(E) Comments by interested parties.--Before the
administering authority makes a determination with
respect to initiating an investigation, any person who
would qualify as an interested party under section
771(9) if an investigation were initiated, may submit
comments or information on the issue of industry
support. After the administering authority makes a
determination with respect to initiating an
investigation, the determination regarding industry
support shall not be reconsidered.
``(5) Definition of domestic producers or workers.--For
purposes of this subsection, the term `domestic producers or
workers' means those interested parties who are eligible to
file a petition under subsection (b)(1)(A).''.
(2) Antidumping duty petition.--Section 732(c) (19 U.S.C.
1673a(c)) is amended to read as follows:
``(c) Petition Determination.--
``(1) In general.--
``(A) Time for initial determination.--Except as
provided in subparagraph (B), within 20 days after the
date on which a petition is filed under subsection (b),
the administering authority shall--
``(i) after examining, on the basis of
sources readily available to the administering
authority, the accuracy and adequacy of the
evidence provided in the petition, determine
whether the petition alleges the elements
necessary for the imposition of a duty under
section 731 and contains information reasonably
available to the petitioner supporting the
allegations, and
``(ii) determine if the petition has been
filed by or on behalf of the industry.
``(B) Extension of time.--In any case in which the
administering authority is required to poll or
otherwise determine support for the petition by the
industry under paragraph (4)(D), the administering
authority may, in exceptional circumstances, apply
subparagraph (A) by substituting `a maximum of 40 days'
for `20 days'.
``(C) Time limits where petition involves same
merchandise as an order that has been revoked.--If a
petition is filed under this section with respect to
merchandise that was the subject merchandise of--
``(i) an antidumping duty order or finding
that was revoked under section 751(d) in the 24
months preceding the date the petition is
filed, or
``(ii) a suspended investigation that was
terminated under section 751(d) in the 24
months preceding the date the petition is
filed,
the administering authority and the Commission shall,
to the maximum extent practicable, expedite any
investigation initiated under this section with respect
to the petition.
``(2) Affirmative determinations.--If the determinations
under clauses (i) and (ii) of paragraph (1)(A) are affirmative,
the administering authority shall initiate an investigation to
determine whether the subject merchandise is being, or is
likely to be, sold in the United States at less than its fair
value.
``(3) Negative determinations.--If the determination under
clause (i) or (ii) of paragraph (1)(A) is negative, the
administering authority shall dismiss the petition, terminate
the proceeding, and notify the petitioner in writing of the
reasons for the determination.
``(4) Determination of industry support.--
``(A) General rule.--For purposes of this
subsection, the administering authority shall determine
that the petition has been filed by or on behalf of the
industry, if--
``(i) the domestic producers or workers who
support the petition account for at least 25
percent of the total production of the domestic
like product, and
``(ii) the domestic producers or workers
who support the petition account for more than
50 percent of the production of the domestic
like product produced by that portion of the
industry expressing support for or opposition
to the petition.
``(B) Certain positions disregarded.--
``(i) Producers related to foreign
producers.--In determining industry support
under subparagraph (A), the administering
authority shall disregard the position of
domestic producers who oppose the petition, if
such producers are related to foreign
producers, as defined in section 771(4)(B)(ii),
unless such domestic producers demonstrate that
their interests as domestic producers would be
adversely affected by the imposition of an
antidumping duty order.
``(ii) Producers who are importers.--The
administering authority may disregard the
position of domestic producers of a domestic
like product who are importers of the subject
merchandise.
``(C) Special rule for regional industries.--If the
petition alleges the industry is a regional industry,
the administering authority shall determine whether the
petition has been filed by or on behalf of the industry
by applying subparagraph (A) on the basis of production
in the region.
``(D) Polling the industry.--If the petition does
not establish support of domestic producers or workers
accounting for more than 50 percent of the total
production of the domestic like product, the
administering authority shall--
``(i) poll the industry or rely on other
information in order to determine if there is
support for the petition as required by
subparagraph (A), or
``(ii) if there is a large number of
producers in the industry, the administering
authority may determine industry support for
the petition by using any statistically valid
sampling method to poll the industry.
``(E) Comments by interested parties.--Before the
administering authority makes a determination with
respect to initiating an investigation, any person who
would qualify as an interested party under section
771(9) if an investigation were initiated, may submit
comments or information on the issue of industry
support. After the administering authority makes a
determination with respect to initiating an
investigation, the determination regarding industry
support shall not be reconsidered.
``(5) Definition of domestic producers or workers.--For
purposes of this subsection, the term `domestic producers or
workers' means those interested parties who are eligible to
file a petition under subsection (b)(1)(A).''.
(b) Determination by the Commission of Reasonable Indication of
Injury; Preliminary Determination by the Administering Authority.--
(1) Countervailing duty investigations.--
(A) Section 703(a) (19 U.S.C. 1671b(a)) is amended
to read as follows:
``(a) Determination by Commission of Reasonable Indication of
Injury.--
``(1) General rule.--Except in the case of a petition
dismissed by the administering authority under section
702(c)(3), the Commission, within the time specified in
paragraph (2), shall determine, based on the information
available to it at the time of the determination, whether there
is a reasonable indication that--
``(A) an industry in the United States--
``(i) is materially injured, or
``(ii) is threatened with material injury,
or
``(B) the establishment of an industry in the
United States is materially retarded,
by reason of imports of the subject merchandise and that
imports of the subject merchandise are not negligible. If the
Commission finds that imports of the subject merchandise are
negligible or otherwise makes a negative determination under
this paragraph, the investigation shall be terminated.
``(2) Time for commission determination.--The Commission
shall make the determination described in paragraph (1)--
``(A) in the case of a petition filed under section
702(b)--
``(i) within 45 days after the date on
which the petition is filed, or
``(ii) if the time has been extended
pursuant to section 702(c)(1)(B), within 25
days after the date on which the Commission
receives notice from the administering
authority of initiation of the investigation,
and
``(B) in the case of an investigation initiated
under section 702(a), within 45 days after the date on
which the Commission receives notice from the
administering authority that an investigation has been
initiated under such section.''.
(B) Section 705(b)(1) (19 U.S.C. 1671d(b)(1)) is
amended by adding at the end the following: ``If the
Commission determines that imports of the subject
merchandise are negligible, the investigation shall be
terminated.''.
(C) Section 703(b) (19 U.S.C. 1671b(b)) is
amended--
(i) in paragraph (1)--
(I) by striking ``85 days after the
date on which the petition is filed
under section 702(b)'' and inserting
``65 days after the date on which the
administering authority initiates an
investigation under section 702(c)'';
(II) by striking ``best
information'' and inserting
``information''; and
(III) by striking the last
sentence; and
(ii) in paragraph (2), by striking ``85
days after the date on which the petition is
filed under section 702(b)'' and inserting ``65
days after the date on which the administering
authority initiates an investigation under
section 702(c)''.
(D) Section 703(c)(1) (19 U.S.C. 1671b(c)) is
amended by striking ``150th day after the date on which
a petition is filed under section 702(b)'' and
inserting ``130th day after the date on which the
administering authority initiates an investigation
under section 702(c)''.
(E) Section 702(b)(3) (19 U.S.C. 1671a(b)(3)) is
amended by striking ``twenty days'' and inserting ``5
days after the date on which the administering
authority initiates an investigation under subsection
(c),''.
(F) Section 703(f) (19 U.S.C. 1671b(f)) is amended
to read as follows:
``(f) Notice of Determination.--Whenever the Commission or the
administering authority makes a determination under this section, the
Commission or the administering authority, as the case may be, shall
notify the petitioner, and other parties to the investigation, and the
Commission or the administering authority (whichever is appropriate) of
its determination. The administering authority shall include with such
notification the facts and conclusions on which its determination is
based. Not later than 5 days after the date on which the determination
is required to be made under subsection (a)(2), the Commission shall
transmit to the administering authority the facts and conclusions on
which its determination is based.''.
(2) Antidumping duty investigations.--
(A) Section 733(a) (19 U.S.C. 1673b(a)) is amended
to read as follows:
``(a) Determination by Commission of Reasonable Indication of
Injury.--
``(1) General rule.--Except in the case of a petition
dismissed by the administering authority under section
732(c)(3), the Commission, within the time specified in
paragraph (2), shall determine, based on the information
available to it at the time of the determination, whether there
is a reasonable indication that--
``(A) an industry in the United States--
``(i) is materially injured, or
``(ii) is threatened with material injury,
or
``(B) the establishment of an industry in the
United States is materially retarded,
by reason of imports of the subject merchandise and that
imports of the subject merchandise are not negligible. If the
Commission finds that imports of the subject merchandise are
negligible or otherwise makes a negative determination under
this paragraph, the investigation shall be terminated.
``(2) Time for commission determination.--The Commission
shall make the determination described in paragraph (1)--
``(A) in the case of a petition filed under section
732(b)--
``(i) within 45 days after the date on
which the petition is filed, or
``(ii) if the time has been extended
pursuant to section 732(c)(1)(B), within 25
days after the date on which the Commission
receives notice from the administering
authority of initiation of the investigation,
and
``(B) in the case of an investigation initiated
under section 732(a), within 45 days after the date on
which the Commission receives notice from the
administering authority that an investigation has been
initiated under such section.''.
(B) Section 735(b)(1) (19 U.S.C. 1673d(b)(1)) is
amended by adding at the end the following: ``If the
Commission determines that imports of the subject
merchandise are negligible, the investigation shall be
terminated.''.
(C) Section 733(b)(1) (19 U.S.C. 1673b(b)(1)) is
amended--
(i) in subparagraph (A)--
(I) by striking ``160 days after
the date on which a petition is filed
under section 732(b)'' and inserting
``140 days after the date on which the
administering authority initiates an
investigation under section 732(c)'';
and
(II) by striking ``best
information'' and inserting
``information''; and
(ii) in subparagraph (B)--
(I) by striking ``120'' and
inserting ``100'';
(II) by striking ``160'' and
inserting ``140'';
(III) by striking ``100'' and
inserting ``80''; and
(IV) by striking ``160'' and
inserting ``140''.
(D) Section 733(c)(1) (19 U.S.C. 1673b(c)(1)) is
amended by striking ``210th day after the date on which
a petition is filed under section 732(b)'' and
inserting ``190th day after the date on which the
administering authority initiates an investigation
under section 732(c)''.
(E) Section 733(f) (19 U.S.C. 1673b(f)) is amended
to read as follows:
``(f) Notice of Determination.--Whenever the Commission or the
administering authority makes a determination under this section, the
Commission or the administering authority, as the case may be, shall
notify the petitioner, and other parties to the investigation, and the
Commission or the administering authority (whichever is appropriate) of
its determination. The administering authority shall include with such
notification the facts and conclusions on which its determination is
based. Not later than 5 days after the date on which the determination
is required to be made under subsection (a)(2), the Commission shall
transmit to the administering authority the facts and conclusions on
which its determination is based.''.
SEC. 213. DE MINIMIS DUMPING MARGIN.
(a) Preliminary Determinations.--Section 733(b) (19 U.S.C.
1673b(b)) is amended by adding at the end the following new paragraph:
``(3) De minimis dumping margin.--In making a determination
under this subsection, the administering authority shall
disregard any weighted average dumping margin that is de
minimis. For purposes of the preceding sentence, a weighted
average dumping margin is de minimis if the administering
authority determines that it is less than 2 percent ad valorem
or the equivalent specific rate for the subject merchandise.''.
(b) Final Determinations.--Section 735(a) (19 U.S.C. 1673d(a)) is
amended by adding at the end the following new paragraph:
``(4) De minimis dumping margin.--In making a determination
under this subsection, the administering authority shall
disregard any weighted average dumping margin that is de
minimis as defined in section 733(b)(3).''.
SEC. 214. CRITICAL CIRCUMSTANCES.
(a) Countervailing Duty Investigations.--
(1) Preliminary determinations.--Section 703(e)(1) (19
U.S.C. 1671b(e)(1)) is amended--
(A) in the matter preceding subparagraph (A) by
striking ``best information'' and inserting
``information''; and
(B) by amending subparagraphs (A) and (B) to read
as follows:
``(A) the alleged countervailable subsidy is
inconsistent with the Subsidies Agreement, and
``(B) there have been massive imports of the
subject merchandise over a relatively short period.''.
(2) Final determinations.--(A) Section 705(a)(2) (19 U.S.C.
1671d(a)(2)) is amended--
(i) in subparagraph (A) by inserting ``Subsidies''
before ``Agreement''; and
(ii) in subparagraph (B) by striking ``class or
kind of merchandise involved'' and inserting ``subject
merchandise''.
(B) Section 705(b)(4)(A) (19 U.S.C. 1671d(b)(4)) is amended
to read as follows:
``(A) Commission standard for retroactive
application.--
``(i) In general.--If the finding of the
administering authority under subsection (a)(2)
is affirmative, then the final determination of
the Commission shall include a finding as to
whether the imports subject to the affirmative
determination under subsection (a)(2) are
likely to undermine seriously the remedial
effect of the countervailing duty order to be
issued under section 706.
``(ii) Factors to consider.--In making the
evaluation under clause (i), the Commission
shall consider, among other factors it
considers relevant--
``(I) the timing and the volume of
the imports,
``(II) any rapid increase in
inventories of the imports, and
``(III) any other circumstances
indicating that the remedial effect of
the countervailing duty order will be
seriously undermined.''.
(b) Antidumping Investigations.--
(1) Preliminary determinations.--Section 733(e)(1) (19
U.S.C. 1673b(e)(1)) is amended--
(A) in the matter preceding subparagraph (A) by
striking ``best information'' and inserting
``information''; and
(B) by amending subparagraphs (A) and (B) to read
as follows:
``(A)(i) there is a history of dumping and material
injury by reason of dumped imports in the United States
or elsewhere of the subject merchandise, or
``(ii) the person by whom, or for whose account,
the merchandise was imported knew or should have known
that the exporter was selling the subject merchandise
at less than its fair value and that there was likely
to be material injury by reason of such sales, and
``(B) there have been massive imports of the
subject merchandise over a relatively short period.''.
(2) Final determinations.--(A) Section 735(a)(3) (19 U.S.C.
1673d(a)(3)) is amended--
(i) in clause (i) of subparagraph (A)--
(I) by inserting ``and material injury by
reason of dumped imports'' after ``history of
dumping''; and
(II) by striking ``class or kind of the
merchandise which is the subject of the
investigation'' and inserting ``subject
merchandise'';
(ii) in clause (ii) of subparagraph (A) by striking
``merchandise which is the subject of the investigation
at less than its fair value'' and inserting ``subject
merchandise at less than its fair value and that there
would be material injury by reason of such sales''; and
(iii) in subparagraph (B) by striking ``merchandise
which is the subject of the investigation'' and
inserting ``subject merchandise''.
(B) Section 735(b)(4)(A) (19 U.S.C. 1673d(b)(4)(A)) is
amended to read as follows:
``(A) Commission standard for retroactive
application.--
``(i) In general.--If the finding of the
administering authority under subsection (a)(3)
is affirmative, then the final determination of
the Commission shall include a finding as to
whether the imports subject to the affirmative
determination under subsection (a)(3) are
likely to undermine seriously the remedial
effect of the antidumping duty order to be
issued under section 736.
``(ii) Factors to consider.--In making the
evaluation under clause (i), the Commission
shall consider, among other factors it
considers relevant--
``(I) the timing and the volume of
the imports,
``(II) a rapid increase in
inventories of the imports, and
``(III) any other circumstances
indicating that the remedial effect of
the antidumping order will be seriously
undermined.''.
SEC. 215. PROVISIONAL MEASURES.
(a) Countervailing Duties.--
(1) Suspension of liquidation.--Section 703(d) (19 U.S.C.
1671b(d)) is amended--
(A) in paragraph (1), by striking ``warehouse'' and
all that follows through ``Register,'' and inserting
``warehouse, for consumption on or after the later of--
``(A) the date on which notice of the determination
is published in the Federal Register, or
``(B) the date that is 60 days after the date on
which notice of the determination to initiate the
investigation is published in the Federal Register,'';
and
(B) by adding at the end the following:
``The instructions of the administering authority under paragraphs (1)
and (2) may not remain in effect for more than 4 months.''.
(2) Critical circumstances cases.--Section 703(e)(2) (19
U.S.C. 1671b(e)(2)) is amended by striking ``warehouse, for
consumption on or after the date which is 90 days before the
date on which suspension of liquidation was first ordered.''
and inserting ``warehouse, for consumption on or after the
later of--
``(A) the date which is 90 days before the date on
which the suspension of liquidation was first ordered,
or
``(B) the date on which notice of the determination
to initiate the investigation is published in the
Federal Register.''.
(b) Antidumping Duties.--
(1) Suspension of liquidation.--Section 733(d) (19 U.S.C.
1673b(d)) is amended--
(A) in paragraph (1), by striking ``warehouse'' and
all that follows through ``Register,'' and inserting
``warehouse, for consumption on or after the later of--
``(A) the date on which notice of the determination
is published in the Federal Register, or
``(B) the date that is 60 days after the date on
which notice of the determination to initiate the
investigation is published in the Federal Register,'';
and
(B) by adding at the end the following:
``The instructions of the administering authority under paragraphs (1)
and (2) may not remain in effect for more than 4 months, except that
the administering authority may, at the request of exporters
representing a significant proportion of exports of the subject
merchandise, extend that 4-month period to not more than 6 months.''.
(2) Critical circumstances cases.--Section 733(e)(2) (19
U.S.C. 1673b(e)(2)) is amended by striking ``warehouse, for
consumption on or after the date which is 90 days before the
date on which suspension of liquidation was first ordered.''
and inserting ``warehouse, for consumption on or after the
later of--
``(A) the date which is 90 days before the date on
which the suspension of liquidation was first ordered,
or
``(B) the date on which notice of the determination
to initiate the investigation is published in the
Federal Register.''.
SEC. 216. CONDITIONS ON ACCEPTANCE OF SUSPENSION AGREEMENTS.
(a) Countervailing Duties.--Section 704(d)(1) (19 U.S.C.
1671c(d)(1)) is amended by striking ``In applying'' and inserting the
following:
``Where practicable, the administering authority shall provide
to the exporters who would have been subject to the agreement
the reasons for not accepting the agreement and, to the extent
possible, an opportunity to submit comments thereon. In
applying''.
(b) Antidumping Duties.--Section 734(d) (19 U.S.C. 1673c(d)) is
amended by adding at the end the following flush sentence:
``Where practicable, the administering authority shall provide to the
exporters who would have been subject to the agreement the reasons for
not accepting the agreement and, to the extent possible, an opportunity
to submit comments thereon.''.
SEC. 217. TERMINATION OF INVESTIGATION.
(a) Countervailing Duty Investigations.--Section 704(a)(1) (19
U.S.C. 1671c(a)(1)) is amended--
(1) by striking ``Except'' and inserting ``(A) Withdrawal
of petition.--Except'';
(2) by indenting the text so as to align it with
subparagraph (B) (as added by paragraph (3) of this
subsection); and
(3) by adding at the end the following:
``(B) Refiling of petition.--If, within 3 months
after the withdrawal of a petition under subparagraph
(A), a new petition is filed seeking the imposition of
duties on both the subject merchandise of the withdrawn
petition and the subject merchandise from another
country, the administering authority and the Commission
may use in the investigation initiated pursuant to the
new petition any records compiled in an investigation
conducted pursuant to the withdrawn petition. This
subparagraph applies only with respect to the first
withdrawal of a petition.''.
(b) Antidumping Duty Investigations.--Section 734(a)(1) (19 U.S.C.
1673c(a)(1)) is amended--
(1) by striking ``Except'' and inserting ``(A) Withdrawal
of petition.--Except'';
(2) by indenting the text so as to align it with
subparagraph (B) (as added by paragraph (3) of this
subsection); and
(3) by adding at the end the following:
``(B) Refiling of petition.--If, within 3 months
after the withdrawal of a petition under subparagraph
(A), a new petition is filed seeking the imposition of
duties on both the subject merchandise of the withdrawn
petition and the subject merchandise from another
country, the administering authority and the Commission
may use in the investigation initiated pursuant to the
new petition any records compiled in an investigation
conducted pursuant to the withdrawn petition. This
subparagraph applies only with respect to the first
withdrawal of a petition.''.
SEC. 218. SPECIAL RULES FOR REGIONAL INDUSTRIES.
(a) Suspension Agreements.--
(1) Countervailing duty investigations.--Section 704 (19
U.S.C. 1671c) is amended by adding at the end the following new
subsection:
``(l) Special Rule for Regional Industry Investigations.--
``(1) Suspension agreements.--If the Commission makes a
regional industry determination under section 771(4)(C), the
administering authority shall offer exporters of the subject
merchandise who account for substantially all exports of that
merchandise for sale in the region concerned the opportunity to
enter into an agreement described in subsection (b) or (c).
``(2) Requirements for suspension agreements.--Any
agreement described in paragraph (1) shall be subject to all
the requirements imposed under this section for other
agreements under subsection (b) or (c), except that if the
Commission makes a regional industry determination described in
paragraph (1) in the final affirmative determination under
section 705(b) but not in the preliminary affirmative
determination under section 703(a), any agreement described in
paragraph (1) may be accepted within 60 days after the
countervailing duty order is published under section 706.
``(3) Effect of suspension agreement on countervailing duty
order.--If an agreement described in paragraph (1) is accepted
after the countervailing duty order is published, the
administering authority shall rescind the order, refund any
cash deposit and release any bond or other security deposited
under section 703(d)(1)(B), and instruct the Customs Service
that entries of the subject merchandise that were made during
the period that the order was in effect shall be liquidated
without regard to countervailing duties.''.
(2) Antidumping investigations.--Section 734 (19 U.S.C.
1673c) is amended by adding at the end the following new
subsection:
``(m) Special Rule for Regional Industry Investigations.--
``(1) Suspension agreements.--If the Commission makes a
regional industry determination under section 771(4)(C), the
administering authority shall offer exporters of the subject
merchandise who account for substantially all exports of that
merchandise for sale in the region concerned the opportunity to
enter into an agreement described in subsection (b), (c), or
(l).
``(2) Requirements for suspension agreements.--Any
agreement described in paragraph (1) shall be subject to all
the requirements imposed under this section for other
agreements under subsection (b), (c), or (l), except that if
the Commission makes a regional industry determination
described in paragraph (1) in the final affirmative
determination under section 735(b) but not in the preliminary
affirmative determination under section 733(a), any agreement
described in paragraph (1) may be accepted within 60 days after
the antidumping order is published under section 736.
``(3) Effect of suspension agreement on antidumping duty
order.--If an agreement described in paragraph (1) is accepted
after the antidumping duty order is published, the
administering authority shall rescind the order, refund any
cash deposit and release any bond or other security deposited
under section 733(d)(1)(B), and instruct the Customs Service
that entries of the subject merchandise that were made during
the period that the order was in effect shall be liquidated
without regard to antidumping duties.''.
(b) Applicability of Orders to New Shippers.--
(1) Countervailing duty cases.--Section 706 (19 U.S.C.
1671e) is amended by adding at the end the following new
subsection:
``(c) Special Rule for Regional Industries.--
``(1) In general.--In an investigation under this subtitle
in which the Commission makes a regional industry determination
under section 771(4)(C), the administering authority shall, to
the maximum extent possible, direct that duties be assessed
only on the subject merchandise of the specific exporters or
producers that exported the subject merchandise for sale in the
region concerned during the period of investigation.
``(2) Exception for new exporters and producers.--After
publication of the countervailing duty order, if the
administering authority finds that a new exporter or producer
is exporting the subject merchandise for sale in the region
concerned, the administering authority shall direct that duties
be assessed on the subject merchandise of the new exporter or
producer consistent with the provisions of section
751(a)(2)(B).''.
(2) Antidumping duty cases.--Section 736 (19 U.S.C. 1673e)
is amended by adding at the end the following new subsection:
``(d) Special Rule for Regional Industries.--
``(1) In general.--In an investigation in which the
Commission makes a regional industry determination under
section 771(4)(C), the administering authority shall, to the
maximum extent possible, direct that duties be assessed only on
the subject merchandise of the specific exporters or producers
that exported the subject merchandise for sale in the region
concerned during the period of investigation.
``(2) Exception for new exporters and producers.--After
publication of the antidumping duty order, if the administering
authority finds that a new exporter or producer is exporting
the subject merchandise for sale in the region concerned, the
administering authority shall direct that duties be assessed on
the subject merchandise of the new exporter or producer
consistent with the provisions of section 751(a)(2)(B).''.
SEC. 219. DETERMINATION OF WEIGHTED AVERAGE DUMPING MARGIN.
(a) Preliminary Determination.--
(1) In general.--Section 733(d) (19 U.S.C. 1673b(d)) is
amended--
(A) by striking paragraph (2);
(B) by redesignating paragraph (1), as amended by
section 215(b)(1)(A), as paragraph (2);
(C) by inserting ``and'' at the end of paragraph
(2), as so redesignated; and
(D) by inserting before such paragraph (2) the
following new paragraph:
``(1)(A) shall--
``(i) determine an estimated weighted average
dumping margin for each exporter and producer
individually investigated, and
``(ii) determine, in accordance with section
735(c)(5), an estimated all-others rate for all
exporters and producers not individually investigated,
and
``(B) shall order the posting of a cash deposit, bond, or
other security, as the administering authority deems
appropriate, for each entry of the subject merchandise in an
amount based on the estimated weighted average dumping margin
or the estimated all-others rate, whichever is applicable,''.
(2) Conforming amendments.--Section 733(b)(1)(A) (19 U.S.C.
1673b(b)(1)(A)) is amended by striking the last sentence.
(b) Final Determination.--
(1) In general.--Section 735(c)(1) (19 U.S.C. 1673d(c)(1))
is amended--
(A) in subparagraph (B)--
(i) by redesignating such subparagraph as
subparagraph (C); and
(ii) by striking ``under paragraphs (1) and
(2)'' and all that follows through ``security''
and inserting ``the suspension of liquidation
under section 733(d)(2)'';
(B) by striking ``and'' at the end of subparagraph
(A); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B)(i) the administering authority shall--
``(I) determine the estimated weighted
average dumping margin for each exporter and
producer individually investigated, and
``(II) determine, in accordance with
paragraph (5), the estimated all-others rate
for all exporters and producers not
individually investigated, and
``(ii) the administering authority shall order the
posting of a cash deposit, bond, or other security, as
the administering authority deems appropriate, for each
entry of the subject merchandise in an amount based on
the estimated weighted average dumping margin or the
estimated all-others rate, whichever is applicable,
and''.
(2) Method for determining weighted average dumping
margin.--Section 735(c) (19 U.S.C. 1673d(c)) is amended by
adding at the end the following new paragraph:
``(5) Method for determining estimated all-others rate.--
``(A) General rule.--For purposes of this
subsection and section 733(d), the estimated all-others
rate shall be an amount equal to the weighted average
of the estimated weighted average dumping margins
established for exporters and producers individually
investigated, excluding any zero and de minimis
margins, and any margins determined entirely under
section 776.
``(B) Exception.--If the estimated weighted average
dumping margins established for all exporters and
producers individually investigated are zero or de
minimis margins, or are determined entirely under
section 776, the administering authority may use any
reasonable method to establish the estimated all-others
rate for exporters and producers not individually
investigated, including averaging the estimated
weighted average dumping margins determined for the
exporters and producers individually investigated.''.
(c) Technical and Conforming Amendments.--
(1) Section 733(e)(2) is amended by striking ``subsection
(d)(1)'' and inserting ``subsection (d)(2)''.
(2) Section 734(f)(2)(A) is amended--
(A) in clause (i), by striking ``section
733(d)(1)'' and inserting ``section 733(d)(2)''; and
(B) in clause (iii), by striking ``section
733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
(3) Section 734(f)(2)(B) is amended--
(A) by striking ``section 733(d)(1)'' and inserting
``section 733(d)(2)''; and
(B) by striking ``section 733(d)(2)'' and inserting
``section 733(d)(1)(B)''.
(4) Section 734(h)(3) is amended--
(A) in subparagraph (A), by striking ``section
733(d)(1)'' and inserting ``section 733(d)(2)''; and
(B) in subparagraph (B), by striking ``section
733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
(5) Section 734(i)(1)(A) is amended by striking ``section
733(d)(1)'' and inserting ``section 733(d)(2)''.
(6) Section 735(c)(2)(A) is amended by striking ``section
703(d)(1)'' and inserting ``section 733(d)(2)''.
(7) Section 735(c)(2)(B) is amended by striking ``section
733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
(8) Section 735(c)(3)(B) is amended by striking ``section
733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
(9) Section 736(b)(1) is amended by striking ``section
733(d)(1)'' each place it appears and inserting ``section
733(d)(2)''.
(10) Section 737(a) is amended by striking ``section
733(d)(2)'' each place it appears in the heading and in the
text and inserting ``section 733(d)(1)(B)''.
SEC. 220. REVIEW OF DETERMINATIONS.
(a) In General.--Section 751 (19 U.S.C. 1675) is amended to read as
follows:
``SEC. 751. ADMINISTRATIVE REVIEW OF DETERMINATIONS.
``(a) Periodic Review of Amount of Duty.--
``(1) In general.--At least once during each 12-month
period beginning on the anniversary of the date of publication
of a countervailing duty order under this title or under
section 303 of this Act, an antidumping duty order under this
title or a finding under the Antidumping Act, 1921, or a notice
of the suspension of an investigation, the administering
authority, if a request for such a review has been received and
after publication of notice of such review in the Federal
Register, shall--
``(A) review and determine the amount of any net
countervailable subsidy,
``(B) review, and determine (in accordance with
paragraph (2)), the amount of any antidumping duty, and
``(C) review the current status of, and compliance
with, any agreement by reason of which an investigation
was suspended, and review the amount of any net
countervailable subsidy or dumping margin involved in
the agreement,
and shall publish in the Federal Register the results of such
review, together with notice of any duty to be assessed,
estimated duty to be deposited, or investigation to be resumed.
``(2) Determination of antidumping duties.--
``(A) In general.--For the purpose of paragraph
(1)(B), the administering authority shall determine--
``(i) the normal value and export price (or
constructed export price) of each entry of the
subject merchandise, and
``(ii) the dumping margin for each such
entry.
``(B) Determination of antidumping or
countervailing duties for new exporters and
producers.--
``(i) In general.--If the administering
authority receives a request from an exporter
or producer of the subject merchandise
establishing that--
``(I) such exporter or producer did
not export the merchandise that was the
subject of an antidumping duty or
countervailing duty order to the United
States (or, in the case of a regional
industry, did not export the subject
merchandise for sale in the region
concerned) during the period of
investigation, and
``(II) such exporter or producer is
not affiliated (within the meaning of
section 771(33)) with any exporter or
producer who exported the subject
merchandise to the United States (or in
the case of a regional industry, who
exported the subject merchandise for
sale in the region concerned) during
that period,
the administering authority shall conduct a
review under this subsection to establish an
individual weighted average dumping margin or
an individual countervailing duty rate (as the
case may be) for such exporter or producer.
``(ii) Time for review under clause (i).--
The administering authority shall commence a
review under clause (i) in the calendar month
beginning after--
``(I) the end of the 6-month period
beginning on the date of the
countervailing duty or antidumping duty
order under review, or
``(II) the end of any 6-month
period occurring thereafter,
if the request for the review is made during
that 6-month period.
``(iii) Posting bond or security.--The
administering authority shall, at the time a
review under this subparagraph is initiated,
direct the Customs Service to allow, at the
option of the importer, the posting, until the
completion of the review, of a bond or security
in lieu of a cash deposit for each entry of the
subject merchandise.
``(iv) Time limits.--The administering
authority shall make a preliminary
determination in a review conducted under this
subparagraph within 180 days after the date on
which the review is initiated, and a final
determination within 90 days after the date the
preliminary determination is issued, except
that if the administering authority concludes
that the case is extraordinarily complicated,
it may extend the 180-day period to 300 days
and may extend the 90-day period to 150 days.
``(C) Results of determinations.--The determination
under this paragraph shall be the basis for the
assessment of countervailing or antidumping duties on
entries of merchandise covered by the determination and
for deposits of estimated duties.
``(3) Time limits.--
``(A) Preliminary and final determinations.--The
administering authority shall make a preliminary
determination under subparagraph (A), (B), or (C) of
paragraph (1) within 245 days after the last day of the
month in which occurs the anniversary of the date of
publication of the order, finding, or suspension
agreement for which the review under paragraph (1) is
requested, and a final determination under paragraph
(1) within 120 days after the date on which the
preliminary determination is published. If it is not
practicable to complete the review within the foregoing
time, the administering authority may extend that 245-
day period to 365 days and may extend that 120-day
period to 180 days. The administering authority may
extend the time for making a final determination
without extending the time for making a preliminary
determination, if such final determination is made not
later than 300 days after the date on which the
preliminary determination is published.
``(B) Liquidation of entries.--If the administering
authority orders any liquidation of entries pursuant to
a review under paragraph (1), such liquidation shall be
made promptly and, to the greatest extent practicable,
within 90 days after the instructions to Customs are
issued. In any case in which liquidation has not
occurred within that 90-day period, the Secretary of
the Treasury shall, upon the request of the affected
party, provide an explanation thereof.
``(C) Effect of pending review under section
516a.--In a case in which a final determination under
paragraph (1) is under review under section 516A and a
liquidation of entries covered by the determination is
enjoined under section 516A(c)(2) or suspended under
section 516A(g)(5)(C), the administering authority
shall, within 10 days after the final disposition of
the review under section 516A, transmit to the Federal
Register for publication the final disposition and
issue instructions to the Customs Service with respect
to the liquidation of entries pursuant to the review.
In such a case, the 90-day period referred to in
subparagraph (B) shall begin on the day on which the
administering authority issues such instructions.
``(4) Absorption of antidumping duties.--During any review
under this subsection initiated 2 years or 4 years after the
publication of an antidumping duty order under section 736(a),
the administering authority, if requested, shall determine
whether antidumping duties have been absorbed by a foreign
producer or exporter subject to the order if the subject
merchandise is sold in the United States through an importer
who is affiliated with such foreign producer or exporter. The
administering authority shall notify the Commission of its
findings regarding such duty absorption for the Commission to
consider in conducting a review under subsection (c).
``(b) Reviews Based on Changed Circumstances.--
``(1) In general.--Whenever the administering authority or
the Commission receives information concerning, or a request
from an interested party for a review of--
``(A) a final affirmative determination that
resulted in an antidumping duty order under this title
or a finding under the Antidumping Act, 1921, or in a
countervailing duty order under this title or section
303,
``(B) a suspension agreement accepted under section
704 or 734, or
``(C) a final affirmative determination resulting
from an investigation continued pursuant to section
704(g) or 734(g),
which shows changed circumstances sufficient to warrant a
review of such determination or agreement, the administering
authority or the Commission (as the case may be) shall conduct
a review of the determination or agreement after publishing
notice of the review in the Federal Register.
``(2) Commission review.--In conducting a review under this
subsection, the Commission shall--
``(A) in the case of a countervailing duty order or
antidumping duty order or finding, determine whether
revocation of the order or finding is likely to lead to
continuation or recurrence of material injury,
``(B) in the case of a determination made pursuant
to section 704(h)(2) or 734(h)(2), determine whether
the suspension agreement continues to eliminate
completely the injurious effects of imports of the
subject merchandise, and
``(C) in the case of an affirmative determination
resulting from an investigation continued under section
704(g) or 734(g), determine whether termination of the
suspended investigation is likely to lead to
continuation or recurrence of material injury.
``(3) Burden of persuasion.--During a review conducted by
the Commission under this subsection--
``(A) the party seeking revocation of an order or
finding described in paragraph (1)(A) shall have the
burden of persuasion with respect to whether there are
changed circumstances sufficient to warrant such
revocation, and
``(B) the party seeking termination of a suspended
investigation or a suspension agreement shall have the
burden of persuasion with respect to whether there are
changed circumstances sufficient to warrant such
termination.
``(4) Limitation on period for review.--In the absence of
good cause shown--
``(A) the Commission may not review a determination
made under section 705(b) or 735(b), or an
investigation suspended under section 704 or 734, and
``(B) the administering authority may not review a
determination made under section 705(a) or 735(a), or
an investigation suspended under section 704 or 734,
less than 24 months after the date of publication of notice of
that determination or suspension.
``(c) Five-Year Review.--
``(1) In general.--Notwithstanding subsection (b) and
except in the case of a transition order defined in paragraph
(6), 5 years after the date of publication of--
``(A) a countervailing duty order (other than a
countervailing duty order to which subparagraph (B)
applies or which was issued without an affirmative
determination of injury by the Commission under section
303), an antidumping duty order, or a notice of
suspension of an investigation, described in subsection
(a)(1),
``(B) a notice of injury determination under
section 753 with respect to a countervailing duty
order, or
``(C) a determination under this section to
continue an order or suspension agreement,
the administering authority and the Commission shall conduct a
review to determine, in accordance with section 752, whether
revocation of the countervailing or antidumping duty order or
termination of the investigation suspended under section 704 or
734 would be likely to lead to continuation or recurrence of
dumping or a countervailable subsidy (as the case may be) and
of material injury.
``(2) Notice of initiation of review.--Not later than 30
days before the fifth anniversary of the date described in
paragraph (1), the administering authority shall publish in the
Federal Register a notice of initiation of a review under this
subsection and request that interested parties submit--
``(A) a statement expressing their willingness to
participate in the review by providing information
requested by the administering authority and the
Commission,
``(B) a statement regarding the likely effects of
revocation of the order or termination of the suspended
investigation, and
``(C) such other information or industry data as
the administering authority or the Commission may
specify.
``(3) Responses to notice of initiation.--
``(A) No response.--If no interested party responds
to the notice of initiation under this subsection, the
administering authority shall issue a final
determination, within 90 days after the initiation of a
review, revoking the order or terminating the suspended
investigation to which such notice relates. For
purposes of this paragraph, an interested party means a
party described in section 771(9) (C), (D), (E), (F),
or (G).
``(B) Inadequate response.--If interested parties
provide inadequate responses to a notice of initiation,
the administering authority, within 120 days after the
initiation of the review, or the Commission, within 150
days after such initiation, may issue, without further
investigation, a final determination based on the facts
available, in accordance with section 776.
``(4) Waiver of participation by certain interested
parties.--
``(A) In general.--An interested party described in
section 771(9) (A) or (B) may elect not to participate
in a review conducted by the administering authority
under this subsection and to participate only in the
review conducted by the Commission under this
subsection.
``(B) Effect of waiver.--In a review in which an
interested party waives its participation pursuant to
this paragraph, the administering authority shall
conclude that revocation of the order or termination of
the investigation would be likely to lead to
continuation or recurrence of dumping or a
countervailable subsidy (as the case may be) with
respect to that interested party.
``(5) Conduct of review.--
``(A) Time limits for completion of review.--Unless
the review has been completed pursuant to paragraph (3)
or paragraph (4) applies, the administering authority
shall make its final determination pursuant to section
752 (b) or (c) within 240 days after the date on which
a review is initiated under this subsection. If the
administering authority makes a final affirmative
determination, the Commission shall make its final
determination pursuant to section 752(a) within 360
days after the date on which a review is initiated
under this subsection.
``(B) Extension of time limit.--The administering
authority or the Commission (as the case may be) may
extend the period of time for making their respective
determinations under this subsection by not more than
90 days, if the administering authority or the
Commission (as the case may be) determines that the
review is extraordinarily complicated. In a review in
which the administering authority extends the time for
making a final determination, but the Commission does
not extend the time for making a determination, the
Commission's determination shall be made not later than
120 days after the date on which the final
determination of the administering authority is
published.
``(C) Extraordinarily complicated.--For purposes of
this subsection, the administering authority or the
Commission (as the case may be) may treat a review as
extraordinarily complicated if--
``(i) there is a large number of issues,
``(ii) the issues to be considered are
complex,
``(iii) there is a large number of firms
involved,
``(iv) the orders or suspended
investigations have been grouped as described
in subparagraph (D), or
``(v) it is a review of a transition order.
``(D) Grouped reviews.--The Commission, in
consultation with the administering authority, may
group orders or suspended investigations for review if
it considers that such grouping is appropriate and will
promote administrative efficiency. Where orders or
suspended investigations have been grouped, the
Commission shall, subject to subparagraph (B), make its
final determination under this subsection not later
than 120 days after the date that the administering
authority publishes notice of its final determination
with respect to the last order or agreement in the
group.
``(6) Special transition rules.--
``(A) Schedule for reviews of transition orders.--
``(i) Initiation.--The administering
authority shall begin its review of transition
orders in the 42d calendar month after the date
such orders are issued. A review of all
transition orders shall be initiated not later
than the 5th anniversary after the date such
orders are issued.
``(ii) Completion.--A review of a
transition order shall be completed not later
than 18 months after the date such review is
initiated. Reviews of all transition orders
shall be completed not later than 18 months
after the 5th anniversary of the date such
orders are issued.
``(iii) Subsequent reviews.--The time
limits set forth in clauses (i) and (ii) shall
be applied to all subsequent 5-year reviews of
transition orders by substituting `date of the
determination to continue such orders' for
`date such orders are issued'.
``(iv) Revocation and termination.--No
transition order may be revoked under this
subsection before the date that is 5 years
after the date the WTO Agreement enters into
force with respect to the United States.
``(B) Sequence of transition reviews.--The
administering authority, in consultation with the
Commission, shall determine such sequence of review of
transition orders as it deems appropriate to promote
administrative efficiency. To the extent practicable,
older orders shall be reviewed first.
``(C) Definition of transition order.--For purposes
of this section, the term `transition order' means--
``(i) a countervailing duty order under
this title or under section 303,
``(ii) an antidumping duty order under this
title or a finding under the Antidumping Act,
1921, or
``(iii) a suspension of an investigation
under section 704 or 734,
which is in effect on the date the WTO Agreement enters
into force with respect to the United States.
``(D) Issue date for transition orders.--For
purposes of this subsection, a transition order shall
be treated as issued on the date the WTO Agreement
enters into force with respect to the United States, if
such order is based on an investigation conducted by
both the administering authority and the Commission.
``(d) Revocation of Order or Finding; Termination of Suspended
Investigation.--
``(1) In general.--The administering authority may revoke,
in whole or in part, a countervailing duty order or an
antidumping duty order or finding, or terminate a suspended
investigation, after review under subsection (a) or (b). The
administering authority shall not revoke, in whole or in part,
a countervailing duty order or terminate a suspended
investigation on the basis of any export taxes, duties, or
other charges levied on the export of the subject merchandise
to the United States which are specifically intended to offset
the countervailable subsidy received.
``(2) Five-year reviews.--In the case of a review conducted
under subsection (c), the administering authority shall revoke
a countervailing duty order or an antidumping duty order or
finding, or terminate a suspended investigation, unless--
``(A) the administering authority makes a
determination that dumping or a countervailable
subsidy, as the case may be, would be likely to
continue or recur, and
``(B) the Commission makes a determination that
material injury would be likely to continue or recur as
described in section 752(a).
``(3) Application of revocation or termination.--A
determination under this section to revoke an order or finding
or terminate a suspended investigation shall apply with respect
to unliquidated entries of the subject merchandise which are
entered, or withdrawn from warehouse, for consumption on or
after the date determined by the administering authority.
``(e) Hearings.--Whenever the administering authority or the
Commission conducts a review under this section, it shall, upon the
request of an interested party, hold a hearing in accordance with
section 774(b) in connection with that review.
``(f) Determination That Basis for Suspension No Longer Exists.--If
the determination of the Commission under subsection (b)(2)(B) is
negative, the suspension agreement shall be treated as not accepted,
beginning on the date of publication of the Commission's determination,
and the administering authority and the Commission shall proceed, under
section 704(i) or 734(i), as if the suspension agreement had been
violated on that date, except that no duty under any order subsequently
issued shall be assessed on merchandise entered, or withdrawn from
warehouse, for consumption before that date.
``(g) Correction of Ministerial Errors.--The administering
authority shall establish procedures for the correction of ministerial
errors in final determinations within a reasonable time after the
determinations are issued under this section. Such procedures shall
ensure opportunity for interested parties to present their views
regarding any such errors. As used in this subsection, the term
`ministerial error' includes errors in addition, subtraction, or other
arithmetic function, clerical errors resulting from inaccurate copying,
duplication, or the like, and any other type of unintentional error
which the administering authority considers ministerial.''.
(b) Review of Determinations.--
(1) In general.--Section 516A(a)(1) (19 U.S.C. 1516A(a)(1))
is amended by striking ``or'' at the end of subparagraph (B),
by inserting ``or'' at the end of subparagraph (C), and by
inserting immediately after subparagraph (C) the following new
subparagraph:
``(D) a final determination by the administering
authority or the Commission under section 751(c)(3),''.
(2) Technical amendments.--Section 516A(b)(1) (19 U.S.C.
1516a(b)(1)) is amended--
(A) in subparagraph (A), by striking ``under
paragraph (1) of subsection (a)'' and inserting ``under
subparagraph (A), (B), or (C) of subsection (a)(1)'',
and
(B) in subparagraph (B)--
(i) by striking ``(B) in an action'' and
inserting ``(B)(i) in an action'',
(ii) by striking the end period and
inserting ``, or'', and
(iii) by adding at the end the following:
``(ii) in an action brought under paragraph
(1)(D) of subsection (a), to be arbitrary,
capricious, an abuse of discretion, or
otherwise not in accordance with law.''.
(c) Conforming Amendment.--Section 504 (19 U.S.C. 1504) is
amended--
(1) in subsection (a), by inserting ``except as provided in
section 751(a)(3),'' before ``an entry of merchandise not
liquidated'', and
(2) in subsection (d), by striking ``When a suspension''
and inserting ``Except as provided in section 751(a)(3), when a
suspension''.
SEC. 221. REVIEW DETERMINATIONS.
(a) In General.--Chapter 1 of subtitle C of title VII (19 U.S.C.
1675) is amended by adding at the end the following new section:
``SEC. 752. SPECIAL RULES FOR SECTION 751(b) AND 751(c) REVIEWS.
``(a) Determination of Likelihood of Continuation or Recurrence of
Material Injury.--
``(1) In general.--In a review conducted under section 751
(b) or (c), the Commission shall determine whether revocation
of an order, or termination of a suspended investigation, would
be likely to lead to continuation or recurrence of material
injury within a reasonably foreseeable time. The Commission
shall consider the likely volume, price effect, and impact of
imports of the subject merchandise on the industry if the order
is revoked or the suspended investigation is terminated. The
Commission shall take into account--
``(A) its prior injury determinations, including
the volume, price effect, and impact of imports of the
subject merchandise on the industry before the order
was issued or the suspension agreement was accepted,
``(B) whether any improvement in the state of the
industry is related to the order or the suspension
agreement,
``(C) whether the industry is vulnerable to
material injury if the order is revoked or the
suspension agreement is terminated, and
``(D) in an antidumping proceeding under section
751(c), the findings of the administering authority
regarding duty absorption under section 751(a)(4).
``(2) Volume.--In evaluating the likely volume of imports
of the subject merchandise if the order is revoked or the
suspended investigation is terminated, the Commission shall
consider whether the likely volume of imports of the subject
merchandise would be significant if the order is revoked or the
suspended investigation is terminated, either in absolute terms
or relative to production or consumption in the United States.
In so doing, the Commission shall consider all relevant
economic factors, including--
``(A) any likely increase in production capacity or
existing unused production capacity in the exporting
country,
``(B) existing inventories of the subject
merchandise, or likely increases in inventories,
``(C) the existence of barriers to the importation
of such merchandise into countries other than the
United States, and
``(D) the potential for product-shifting if
production facilities in the foreign country, which can
be used to produce the subject merchandise, are
currently being used to produce other products.
``(3) Price.--In evaluating the likely price effects of
imports of the subject merchandise if the order is revoked or
the suspended investigation is terminated, the Commission shall
consider whether--
``(A) there is likely to be significant price
underselling by imports of the subject merchandise as
compared to domestic like products, and
``(B) imports of the subject merchandise are likely
to enter the United States at prices that otherwise
would have a significant depressing or suppressing
effect on the price of domestic like products.
``(4) Impact on the industry.--In evaluating the likely
impact of imports of the subject merchandise on the industry if
the order is revoked or the suspended investigation is
terminated, the Commission shall consider all relevant economic
factors which are likely to have a bearing on the state of the
industry in the United States, including, but not limited to--
``(A) likely declines in output, sales, market
share, profits, productivity, return on investments,
and utilization of capacity,
``(B) likely negative effects on cash flow,
inventories, employment, wages, growth, ability to
raise capital, and investment, and
``(C) likely negative effects on the existing
development and production efforts of the industry,
including efforts to develop a derivative or more
advanced version of the domestic like product.
The Commission shall evaluate all relevant economic factors
described in this paragraph within the context of the business
cycle and the conditions of competition that are distinctive to
the affected industry.
``(5) Basis for determination.--The presence or absence of
any factor which the Commission is required to consider under
this subsection shall not necessarily give decisive guidance
with respect to the Commission's determination of whether
material injury is likely to continue or recur within a
reasonably foreseeable time if the order is revoked or the
suspended investigation is terminated. In making that
determination, the Commission shall consider that the effects
of revocation or termination may not be imminent, but may
manifest themselves only over a longer period of time.
``(6) Magnitude of margin of dumping and net
countervailable subsidy; nature of countervailable subsidy.--In
making a determination under section 751 (b) or (c), the
Commission may consider the magnitude of the margin of dumping
or the magnitude of the net countervailable subsidy. If a
countervailable subsidy is involved the Commission shall
consider information regarding the nature of the
countervailable subsidy and whether the subsidy is a subsidy
described in Article 3 or 6.1 of the Subsidies Agreement.
``(7) Cumulation.--For purposes of this subsection, the
Commission may cumulatively assess the volume and effect of
imports of the subject merchandise from all countries with
respect to which reviews under section 751 (b) or (c) were
initiated on the same day, if such imports would be likely to
compete with each other and with domestic like products in the
United States market. The Commission shall not cumulatively
assess the volume and effects of imports of the subject
merchandise in a case in which it determines that such imports
are likely to have no discernible adverse impact on the
domestic industry.
``(8) Special rule for regional industries.--In a review
under section 751 (b) or (c) involving a regional industry, the
Commission may base its determination on the regional industry
defined in the original investigation under this title, another
region that satisfies the criteria established in section
771(4)(C), or the United States as a whole. In determining if a
regional industry analysis is appropriate for the determination
in the review, the Commission shall consider whether the
criteria established in section 771(4)(C) are likely to be
satisfied if the order is revoked or the suspended
investigation is terminated.
``(b) Determination of Likelihood of Continuation or Recurrence of
a Countervailable Subsidy.--
``(1) In general.--In a review conducted under section
751(c), the administering authority shall determine whether
revocation of a countervailing duty order or termination of a
suspended investigation under section 704 would be likely to
lead to continuation or recurrence of a countervailable
subsidy. The administering authority shall consider--
``(A) the net countervailable subsidy determined in
the investigation and subsequent reviews, and
``(B) whether any change in the program which gave
rise to the net countervailable subsidy described in
subparagraph (A) has occurred that is likely to affect
that net countervailable subsidy.
``(2) Consideration of other factors.--If good cause is
shown, the administering authority shall also consider--
``(A) programs determined to provide
countervailable subsidies in other investigations or
reviews under this title, but only to the extent that
such programs--
``(i) can potentially be used by the
exporters or producers subject to the review
under section 751(c), and
``(ii) did not exist at the time that the
countervailing duty order was issued or the
suspension agreement was accepted, and
``(B) programs newly alleged to provide
countervailable subsidies but only to the extent that
the administering authority makes an affirmative
countervailing duty determination with respect to such
programs and with respect to the exporters or producers
subject to the review.
``(3) Net countervailable subsidy.--The administering
authority shall provide to the Commission the net
countervailable subsidy that is likely to prevail if the order
is revoked or the suspended investigation is terminated. The
administering authority shall normally choose a net
countervailable subsidy that was determined under section 705
or subsection (a) or (b)(1) of section 751.
``(4) Special rule.--
``(A) Treatment of zero and de minimis rates.--A
net countervailable subsidy described in paragraph
(1)(A) that is zero or de minimis shall not by itself
require the administering authority to determine that
revocation of a countervailing duty order or
termination of a suspended investigation would not be
likely to lead to continuation or recurrence of a
countervailable subsidy.
``(B) Application of de minimis standards.--For
purposes of this paragraph, the administering authority
shall apply the de minimis standards applicable to
reviews conducted under subsections (a) and (b)(1) of
section 751.
``(c) Determination of Likelihood of Continuation or Recurrence of
Dumping.--
``(1) In general.--In a review conducted under section
751(c), the administering authority shall determine whether
revocation of an antidumping duty order or termination of a
suspended investigation under section 734 would be likely to
lead to continuation or recurrence of sales of the subject
merchandise at less than fair value. The administering
authority shall consider--
``(A) the weighted average dumping margins
determined in the investigation and subsequent reviews,
and
``(B) the volume of imports of the subject
merchandise for the period before and the period after
the issuance of the antidumping duty order or
acceptance of the suspension agreement.
``(2) Consideration of other factors.--If good cause is
shown, the administering authority shall also consider such
other price, cost, market, or economic factors as it deems
relevant.
``(3) Magnitude of the margin of dumping.--The
administering authority shall provide to the Commission the
magnitude of the margin of dumping that is likely to prevail if
the order is revoked or the suspended investigation is
terminated. The administering authority shall normally choose a
margin that was determined under section 735 or under
subsection (a) or (b)(1) of section 751.
``(4) Special rule.--
``(A) Treatment of zero or de minimis margins.--A
dumping margin described in paragraph (1)(A) that is
zero or de minimis shall not by itself require the
administering authority to determine that revocation of
an antidumping duty order or termination of a suspended
investigation would not be likely to lead to
continuation or recurrence of sales at less than fair
value.
``(B) Application of de minimis standards.--For
purposes of this paragraph, the administering authority
shall apply the de minimis standards applicable to
reviews conducted under subsections (a) and (b) of
section 751.''.
(b) Affirmative Determinations by Divided Commission.--Section
771(11) (19 U.S.C. 1677(11)) is amended by inserting ``, including a
determination under section 751,'' after ``determination by the
Commission''.
(c) Conforming Amendment.--The table of contents for title VII is
amended by inserting after the item relating to section 751 the
following:
``Sec. 752. Special rules for section 751(b) and 751(c) reviews.''.
SEC. 222. DEFINITIONS.
(a) Industry.--
(1) In general.--Subparagraphs (A) and (B) of section
771(4) (19 U.S.C. 1677(4) (A) and (B)) are amended to read as
follows:
``(A) In general.--The term `industry' means the
producers as a whole of a domestic like product, or
those producers whose collective output of a domestic
like product constitutes a major proportion of the
total domestic production of the product.
``(B) Related parties.--
``(i) If a producer of a domestic like
product and an exporter or importer of the
subject merchandise are related parties, or if
a producer of the domestic like product is also
an importer of the subject merchandise, the
producer may, in appropriate circumstances, be
excluded from the industry.
``(ii) For purposes of clause (i), a
producer and an exporter or importer shall be
considered to be related parties, if--
``(I) the producer directly or
indirectly controls the exporter or
importer,
``(II) the exporter or importer
directly or indirectly controls the
producer,
``(III) a third party directly or
indirectly controls the producer and
the exporter or importer, or
``(IV) the producer and the
exporter or importer directly or
indirectly control a third party and
there is reason to believe that the
relationship causes the producer to act
differently than a nonrelated producer.
For purposes of this subparagraph, a party
shall be considered to directly or indirectly
control another party if the party is legally
or operationally in a position to exercise
restraint or direction over the other party.''.
(2) Regional industry.--Section 771(4)(C) (19 U.S.C.
1677(4)(C)) is amended by adding at the end the following new
sentence: ``The term `regional industry' means the domestic
producers within a region who are treated as a separate
industry under this subparagraph.''.
(b) Impact on Affected Domestic Industry.--
(1) In general.--Section 771(7)(C)(iii) (19 U.S.C.
1677(7)(C)(iii)) is amended--
(A) by striking ``and'' at the end of subclause
(III), and
(B) by striking the period at the end of subclause
(IV) and inserting ``, and
``(V) in a proceeding under
subtitle B, the magnitude of the margin
of dumping.''.
(2) Captive production.--Section 771(7)(C) (19 U.S.C.
1677(7)(C)) is amended by striking clause (iv) and inserting
the following:
``(iv) Captive production.--If domestic
producers internally transfer significant
production of the domestic like product for the
production of a downstream article and sell
significant production of the domestic like
product in the merchant market, and the
Commission finds that--
``(I) the domestic like product
produced that is internally transferred
for processing into that downstream
article does not enter the merchant
market for the domestic like product,
``(II) the domestic like product is
the predominant material input in the
production of that downstream article,
and
``(III) the production of the
domestic like product sold in the
merchant market is not generally used
in the production of that downstream
article,
then the Commission, in determining market
share and the factors affecting financial
performance set forth in clause (iii), shall
focus primarily on the merchant market for the
domestic like product.''.
(3) Technical correction.--Section 771(7)(C)(iii) is
amended by striking ``subparagraph (B)(iii)'' and inserting
``subparagraph (B)(i)(III)''.
(c) Determination of Threat of Injury.--Clauses (i) and (ii) of
section 771(7)(F) (19 U.S.C. 1677(7)(F) (i) and (ii)) are amended to
read as follows:
``(i) In general.--In determining whether
an industry in the United States is threatened
with material injury by reason of imports (or
sales for importation) of the subject
merchandise, the Commission shall consider,
among other relevant economic factors--
``(I) if a countervailable subsidy
is involved, such information as may be
presented to it by the administering
authority as to the nature of the
subsidy (particularly as to whether the
countervailable subsidy is a subsidy
described in Article 3 or 6.1 of the
Subsidies Agreement), and whether
imports of the subject merchandise are
likely to increase,
``(II) any existing unused
production capacity or imminent,
substantial increase in production
capacity in the exporting country
indicating the likelihood of
substantially increased imports of the
subject merchandise into the United
States, taking into account the
availability of other export markets to
absorb any additional exports,
``(III) a significant rate of
increase of the volume or market
penetration of imports of the subject
merchandise indicating the likelihood
of substantially increased imports,
``(IV) whether imports of the
subject merchandise are entering at
prices that are likely to have a
significant depressing or suppressing
effect on domestic prices, and are
likely to increase demand for further
imports,
``(V) inventories of the subject
merchandise,
``(VI) the potential for product-
shifting if production facilities in
the foreign country, which can be used
to produce the subject merchandise, are
currently being used to produce other
products,
``(VII) in any investigation under
this title which involves imports of
both a raw agricultural product (within
the meaning of paragraph (4)(E)(iv))
and any product processed from such raw
agricultural product, the likelihood
that there will be increased imports,
by reason of product shifting, if there
is an affirmative determination by the
Commission under section 705(b)(1) or
735(b)(1) with respect to either the
raw agricultural product or the
processed agricultural product (but not
both),
``(VIII) the actual and potential
negative effects on the existing
development and production efforts of
the domestic industry, including
efforts to develop a derivative or more
advanced version of the domestic like
product, and
``(IX) any other demonstrable
adverse trends that indicate the
probability that there is likely to be
material injury by reason of imports
(or sale for importation) of the
subject merchandise (whether or not it
is actually being imported at the
time).
``(ii) Basis for determination.--The
Commission shall consider the factors set forth
in clause (i) as a whole in making a
determination of whether further dumped or
subsidized imports are imminent and whether
material injury by reason of imports would
occur unless an order is issued or a suspension
agreement is accepted under this title. The
presence or absence of any factor which the
Commission is required to consider under clause
(i) shall not necessarily give decisive
guidance with respect to the determination.
Such a determination may not be made on the
basis of mere conjecture or supposition.''.
(d) Negligible Imports.--Section 771 (19 U.S.C. 1677) is amended--
(1) in paragraph (7) by striking clause (v) of subparagraph
(C), and
(2) by adding at the end the following:
``(24) Negligible imports.--
``(A) In general.--
``(i) Less than 3 percent.--Except as
provided in clauses (ii) and (iv), imports from
a country of merchandise corresponding to a
domestic like product identified by the
Commission are `negligible' if such imports
account for less than 3 percent of the volume
of all such merchandise imported into the
United States in the most recent 12-month
period for which data are available that
precedes--
``(I) the filing of the petition
under section 702(b) or 732(b), or
``(II) the initiation of the
investigation, if the investigation was
initiated under section 702(a) or
732(a).
``(ii) Exception.--Imports that would
otherwise be negligible under clause (i) shall
not be negligible if the aggregate volume of
imports of the merchandise from all countries
described in clause (i) with respect to which
investigations were initiated on the same day
exceeds 7 percent of the volume of all such
merchandise imported into the United States
during the applicable 12-month period.
``(iii) Determination of aggregate
volume.--In determining aggregate volume under
clause (ii) or (iv), the Commission shall not
consider imports from any country specified in
paragraph (7)(G)(ii).
``(iv) Negligibility in threat analysis.--
Notwithstanding clauses (i) and (ii), the
Commission shall not treat imports as
negligible if it determines that there is a
potential that imports from a country described
in clause (i) will imminently account for more
than 3 percent of the volume of all such
merchandise imported into the United States, or
that the aggregate volumes of imports from all
countries described in clause (ii) will
imminently exceed 7 percent of the volume of
all such merchandise imported into the United
States. The Commission shall consider such
imports only for purposes of determining threat
of material injury.
``(B) Negligibility for certain countries in
countervailing duty investigations.--In the case of an
investigation under section 701, subparagraph (A) shall
be applied to imports of subject merchandise from
developing countries by substituting `4 percent' for `3
percent' in subparagraph (A)(i) and by substituting `9
percent' for `7 percent' in subparagraph (A)(ii).
``(C) Computation of import volumes.--In computing
import volumes for purposes of subparagraphs (A) and
(B), the Commission may make reasonable estimates on
the basis of available statistics.
``(D) Regional industries.--In an investigation in
which the Commission makes a regional industry
determination under paragraph (4)(C), the Commission's
examination under subparagraphs (A) and (B) shall be
based upon the volume of subject merchandise exported
for sale in the regional market in lieu of the volume
of all subject merchandise imported into the United
States.''.
(e) Cumulation.--Section 771(7) (19 U.S.C. 1677(7)) is amended--
(1) in subparagraph (F) by striking clause (iv), and
(2) by adding at the end the following:
``(G) Cumulation for determining material injury.--
``(i) In general.--For purposes of clauses
(i) and (ii) of subparagraph (C), and subject
to clause (ii), the Commission shall
cumulatively assess the volume and effect of
imports of the subject merchandise from all
countries with respect to which--
``(I) petitions were filed under
section 702(b) or 732(b) on the same
day,
``(II) investigations were
initiated under section 702(a) or
732(a) on the same day, or
``(III) petitions were filed under
section 702(b) or 732(b) and
investigations were initiated under
section 702(a) or 732(a) on the same
day,
if such imports compete with each other and
with domestic like products in the United
States market.
``(ii) Exceptions.--The Commission shall
not cumulatively assess the volume and effect
of imports under clause (i)--
``(I) with respect to which the
administering authority has made a
preliminary negative determination,
unless the administering authority
subsequently made a final affirmative
determination with respect to those
imports before the Commission's final
determination is made;
``(II) from any country with
respect to which the investigation has
been terminated;
``(III) from any country designated
as a beneficiary country under the
Caribbean Basin Economic Recovery Act
(19 U.S.C. 2701 et seq.) for purposes
of making a determination with respect
to that country, except that the volume
and effect of imports of the subject
merchandise from such country may be
cumulatively assessed with imports of
the subject merchandise from any other
country designated as such a
beneficiary country to the extent
permitted by clause (i); or
``(IV) from any country that is a
party to an agreement with the United
States establishing a free trade area,
which entered into force and effect
before January 1, 1987, unless the
Commission determines that a domestic
industry is materially injured or
threatened with material injury by
reason of imports from that country.
``(iii) Records in final investigations.--
In each final determination in which it
cumulatively assesses the volume and effect of
imports under clause (i), the Commission shall
make its determinations based on the record
compiled in the first investigation in which it
makes a final determination, except that when
the administering authority issues its final
determination in a subsequently completed
investigation, the Commission shall permit the
parties in the subsequent investigation to
submit comments concerning the significance of
the administering authority's final
determination, and shall include such comments
and the administering authority's final
determination in the record for the subsequent
investigation.
``(iv) Regional industry determinations.--
In an investigation which involves a regional
industry, and in which the Commission decides
that the volume and effect of imports should be
cumulatively assessed under this subparagraph,
such assessment shall be based upon the volume
and effect of imports into the region or
regions determined by the Commission. The
provisions of clause (iii) shall apply to such
investigations.
``(H) Cumulation for determining threat of material
injury.--To the extent practicable and subject to
subparagraph (G)(ii), for purposes of clause (i)(III)
and (IV) of subparagraph (F), the Commission may
cumulatively assess the volume and price effects of
imports of the subject merchandise from all countries
with respect to which--
``(i) petitions were filed under section
702(b) or 732(b) on the same day,
``(ii) investigations were initiated under
section 702(a) or 732(a) on the same day, or
``(iii) petitions were filed under section
702(b) or 732(b) and investigations were
initiated under section 702(a) or 732(a) on the
same day,
if such imports compete with each other and with
domestic like products in the United States market.''.
(f) Consideration of Post-Petition Information.--Section 771(7) (19
U.S.C. 1677(7)), is amended by adding at the end the following:
``(I) Consideration of post-petition information.--
The Commission shall consider whether any change in the
volume, price effects, or impact of imports of the
subject merchandise since the filing of the petition in
an investigation under subtitle A or B is related to
the pendency of the investigation and, if so, the
Commission may reduce the weight accorded to the data
for the period after the filing of the petition in
making its determination of material injury, threat of
material injury, or material retardation of the
establishment of an industry in the United States.''.
(g) Interested Party.--Section 771(9) (19 U.S.C. 1677(9)) is
amended--
(1) in subparagraph (A), by inserting ``producers,
exporters, or'' before ``importers'', and
(2) in subparagraph (B), inserting ``or from which such
merchandise is exported'' after ``manufactured''.
(h) Ordinary Course of Trade.--Section 771(15) (19 U.S.C. 1677(15))
is amended--
(1) by striking ``merchandise which is the subject of an
investigation'' and inserting ``subject merchandise''; and
(2) by adding at the end the following: ``The administering
authority shall consider the following sales and transactions,
among others, to be outside the ordinary course of trade:
``(A) Sales disregarded under section 773(b)(1).
``(B) Transactions disregarded under section
773(f)(2).''.
(i) Other Definitions.--
(1) In general.--Section 771 (19 U.S.C. 1677), as amended
by subsection (d), is amended by adding at the end the
following:
``(25) Subject merchandise.--The term `subject merchandise'
means the class or kind of merchandise that is within the scope
of an investigation, a review, a suspension agreement, an order
under this title or section 303, or a finding under the
Antidumping Act, 1921.
``(26) Section 303.--The terms `section 303' and `303' mean
section 303 of this Act as in effect on the day before the
effective date of title II of the Uruguay Round Agreements Act.
``(27) Suspension agreement.--The term `suspension
agreement' means an agreement described in section 704(b),
704(c), 734(b), 734(c), or 734(l).
``(28) Exporter or producer.--The term `exporter or
producer' means the exporter of the subject merchandise, the
producer of the subject merchandise, or both where appropriate.
For purposes of section 773, the term `exporter or producer'
includes both the exporter of the subject merchandise and the
producer of the same subject merchandise to the extent
necessary to accurately calculate the total amount incurred and
realized for costs, expenses, and profits in connection with
production and sale of that merchandise.
``(29) WTO agreement.--The term `WTO Agreement' means the
Agreement defined in section 2(9) of the Uruguay Round
Agreements Act.
``(30) WTO member and wto member country.--The terms `WTO
member' and `WTO member country' mean a state, or separate
customs territory (within the meaning of Article XII of the WTO
Agreement), with respect to which the United States applies the
WTO agreement.
``(31) GATT 1994.--The term `GATT 1994' means the General
Agreement on Tariffs and Trade annexed to the WTO Agreement.
``(32) Trade representative.--The term `Trade
Representative' means the United States Trade Representative.
``(33) Affiliated persons.--The following persons shall be
considered to be `affiliated' or `affiliated persons':
``(A) Members of a family, including brothers and
sisters (whether by the whole or half blood), spouse,
ancestors, and lineal descendants.
``(B) Any officer or director of an organization
and such organization.
``(C) Partners.
``(D) Employer and employee.
``(E) Any person directly or indirectly owning,
controlling, or holding with power to vote, 5 percent
or more of the outstanding voting stock or shares of
any organization and such organization.
``(F) Two or more persons directly or indirectly
controlling, controlled by, or under common control
with, any person.
``(G) Any person who controls any other person and
such other person.
For purposes of this paragraph, a person shall be considered to
control another person if the person is legally or
operationally in a position to exercise restraint or direction
over the other person.
``(34) Dumped; dumping.--The terms `dumped' and `dumping'
refer to the sale or likely sale of goods at less than fair
value.''.
(2) Exporter.--Paragraph (13) of section 771 (19 U.S.C.
1677(13)) is repealed.
SEC. 223. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.
Section 772 (19 U.S.C. 1677a) is amended to read as follows:
``SEC. 772. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.
``(a) Export Price.--The term `export price' means the price at
which the subject merchandise is first sold (or agreed to be sold)
before the date of importation by the producer or exporter of the
subject merchandise outside of the United States to an unaffiliated
purchaser in the United States or to an unaffiliated purchaser for
exportation to the United States, as adjusted under subsection (c).
``(b) Constructed Export Price.--The term `constructed export
price' means the price at which the subject merchandise is first sold
(or agreed to be sold) in the United States before or after the date of
importation by or for the account of the producer or exporter of such
merchandise or by a seller affiliated with the producer or exporter, to
a purchaser not affiliated with the producer or exporter, as adjusted
under subsections (c) and (d).
``(c) Adjustments for Export Price and Constructed Export Price.--
The price used to establish export price and constructed export price
shall be--
``(1) increased by--
``(A) when not included in such price, the cost of
all containers and coverings and all other costs,
charges, and expenses incident to placing the subject
merchandise in condition packed ready for shipment to
the United States,
``(B) the amount of any import duties imposed by
the country of exportation which have been rebated, or
which have not been collected, by reason of the
exportation of the subject merchandise to the United
States, and
``(C) the amount of any countervailing duty imposed
on the subject merchandise under subtitle A to offset
an export subsidy, and
``(2) reduced by--
``(A) except as provided in paragraph (1)(C), the
amount, if any, included in such price, attributable to
any additional costs, charges, or expenses, and United
States import duties, which are incident to bringing
the subject merchandise from the original place of
shipment in the exporting country to the place of
delivery in the United States, and
``(B) the amount, if included in such price, of any
export tax, duty, or other charge imposed by the
exporting country on the exportation of the subject
merchandise to the United States, other than an export
tax, duty, or other charge described in section
771(6)(C).
``(d) Additional Adjustments to Constructed Export Price.--For
purposes of this section, the price used to establish constructed
export price shall also be reduced by--
``(1) the amount of any of the following expenses generally
incurred by or for the account of the producer or exporter, or
the affiliated seller in the United States, in selling the
subject merchandise (or subject merchandise to which value has
been added)--
``(A) commissions for selling the subject
merchandise in the United States;
``(B) expenses that result from, and bear a direct
relationship to, the sale, such as credit expenses,
guarantees and warranties;
``(C) any selling expenses that the seller pays on
behalf of the purchaser;
``(D) any selling expenses not deducted under
subparagraph (A), (B), or (C);
``(2) the cost of any further manufacture or assembly
(including additional material and labor), except in
circumstances described in subsection (e); and
``(3) the profit allocated to the expenses described in
paragraphs (1) and (2).
``(e) Special Rule for Merchandise With Value Added After
Importation.--Where the subject merchandise is imported by a person
affiliated with the exporter or producer, and the value added in the
United States by the affiliated person is likely to exceed
substantially the value of the subject merchandise, the administering
authority shall determine the constructed export price for such
merchandise by using one of the following prices if there is a
sufficient quantity of sales to provide a reasonable basis for
comparison and the administering authority determines that the use of
such sales is appropriate:
``(1) The price of identical subject merchandise sold by
the exporter or producer to an unaffiliated person.
``(2) The price of other subject merchandise sold by the
exporter or producer to an unaffiliated person.
If there is not a sufficient quantity of sales to provide a reasonable
basis for comparison under paragraph (1) or (2), or the administering
authority determines that neither of the prices described in such
paragraphs is appropriate, then the constructed export price may be
determined on any other reasonable basis.
``(f) Special Rule for Determining Profit.--
``(1) In general.--For purposes of subsection (d)(3),
profit shall be an amount determined by multiplying the total
actual profit by the applicable percentage.
``(2) Definitions.--For purposes of this subsection:
``(A) Applicable percentage.--The term `applicable
percentage' means the percentage determined by dividing
the total United States expenses by the total expenses.
``(B) Total united states expenses.--The term
`total United States expenses' means the total expenses
described in subsection (d) (1) and (2).
``(C) Total expenses.--The term `total expenses'
means all expenses in the first of the following
categories which applies and which are incurred by or
on behalf of the foreign producer and foreign exporter
of the subject merchandise and by or on behalf of the
United States seller affiliated with the producer or
exporter with respect to the production and sale of
such merchandise:
``(i) The expenses incurred with respect to
the subject merchandise sold in the United
States and the foreign like product sold in the
exporting country if such expenses were
requested by the administering authority for
the purpose of establishing normal value and
constructed export price.
``(ii) The expenses incurred with respect
to the narrowest category of merchandise sold
in the United States and the exporting country
which includes the subject merchandise.
``(iii) The expenses incurred with respect
to the narrowest category of merchandise sold
in all countries which includes the subject
merchandise.
``(D) Total actual profit.--The term `total actual
profit' means the total profit earned by the foreign
producer, exporter, and affiliated parties described in
subparagraph (C) with respect to the sale of the same
merchandise for which total expenses are determined
under such subparagraph.''.
SEC. 224. NORMAL VALUE.
Section 773 (19 U.S.C. 1677b) is amended to read as follows:
``SEC. 773. NORMAL VALUE.
``(a) Determination.--In determining under this title whether
subject merchandise is being, or is likely to be, sold at less than
fair value, a fair comparison shall be made between the export price or
constructed export price and normal value. In order to achieve a fair
comparison with the export price or constructed export price, normal
value shall be determined as follows:
``(1) Determination of normal value.--
``(A) In general.--The normal value of the subject
merchandise shall be the price described in
subparagraph (B), at a time reasonably corresponding to
the time of the sale used to determine the export price
or constructed export price under section 772(a) or
(b).
``(B) Price.--The price referred to in subparagraph
(A) is--
``(i) the price at which the foreign like
product is first sold (or, in the absence of a
sale, offered for sale) for consumption in the
exporting country, in the usual commercial
quantities and in the ordinary course of trade
and, to the extent practicable, at the same
level of trade as the export price or
constructed export price, or
``(ii) in a case to which subparagraph (C)
applies, the price at which the foreign like
product is so sold (or offered for sale) for
consumption in a country other than the
exporting country or the United States, if--
``(I) such price is representative,
``(II) the aggregate quantity (or,
if quantity is not appropriate, value)
of the foreign like product sold by the
exporter or producer in such other
country is 5 percent or more of the
aggregate quantity (or value) of the
subject merchandise sold in the United
States or for export to the United
States, and
``(III) the administering authority
does not determine that the particular
market situation in such other country
prevents a proper comparison with the
export price or constructed export
price.
``(C) Third country sales.--This subparagraph
applies when--
``(i) the foreign like product is not sold
(or offered for sale) for consumption in the
exporting country as described in subparagraph
(B)(i),
``(ii) the administering authority
determines that the aggregate quantity (or, if
quantity is not appropriate, value) of the
foreign like product sold in the exporting
country is insufficient to permit a proper
comparison with the sales of the subject
merchandise to the United States, or
``(iii) the particular market situation in
the exporting country does not permit a proper
comparison with the export price or constructed
export price.
For purposes of clause (ii), the aggregate quantity (or
value) of the foreign like product sold in the
exporting country shall normally be considered to be
insufficient if such quantity (or value) is less than 5
percent of the aggregate quantity (or value) of sales
of the subject merchandise to the United States.
``(2) Fictitious markets.--No pretended sale or offer for
sale, and no sale or offer for sale intended to establish a
fictitious market, shall be taken into account in determining
normal value. The occurrence of different movements in the
prices at which different forms of the foreign like product are
sold (or, in the absence of sales, offered for sale) in the
exporting country after the issuance of an antidumping duty
order may be considered by the administering authority as
evidence of the establishment of a fictitious market for the
foreign like product if the movement in such prices appears to
reduce the amount by which the normal value exceeds the export
price (or the constructed export price) of the subject
merchandise.
``(3) Exportation from an intermediate country.--Where the
subject merchandise is exported to the United States from an
intermediate country, normal value shall be determined in the
intermediate country, except that normal value may be
determined in the country of origin of the subject merchandise
if--
``(A) the producer knew at the time of the sale
that the subject merchandise was destined for
exportation;
``(B) the subject merchandise is merely
transshipped through the intermediate country;
``(C) sales of the foreign like product in the
intermediate country do not satisfy the conditions of
paragraph (1)(C); or
``(D) the foreign like product is not produced in
the intermediate country.
``(4) Use of constructed value.--If the administering
authority determines that the normal value of the subject
merchandise cannot be determined under paragraph (1)(B)(i),
then, notwithstanding paragraph (1)(B)(ii), the normal value of
the subject merchandise may be the constructed value of that
merchandise, as determined under subsection (e).
``(5) Indirect sales or offers for sale.--If the foreign
like product is sold or, in the absence of sales, offered for
sale through an affiliated party, the prices at which the
foreign like product is sold (or offered for sale) by such
affiliated party may be used in determining normal value.
``(6) Adjustments.--The price described in paragraph (1)(B)
shall be--
``(A) increased by the cost of all containers and
coverings and all other costs, charges, and expenses
incident to placing the subject merchandise in
condition packed ready for shipment to the United
States;
``(B) reduced by--
``(i) when included in the price described
in paragraph (1)(B), the cost of all containers
and coverings and all other costs, charges, and
expenses incident to placing the foreign like
product in condition packed ready for shipment
to the place of delivery to the purchaser,
``(ii) the amount, if any, included in the
price described in paragraph (1)(B),
attributable to any additional costs, charges,
and expenses incident to bringing the foreign
like product from the original place of
shipment to the place of delivery to the
purchaser, and
``(iii) the amount of any taxes imposed
directly upon the foreign like product or
components thereof which have been rebated, or
which have not been collected, on the subject
merchandise, but only to the extent that such
taxes are added to or included in the price of
the foreign like product, and
``(C) increased or decreased by the amount of any
difference (or lack thereof) between the export price
or constructed export price and the price described in
paragraph (1)(B) (other than a difference for which
allowance is otherwise provided under this section)
that is established to the satisfaction of the
administering authority to be wholly or partly due to--
(i) the fact that the quantities in which
the subject merchandise is sold or agreed to be
sold to the United States are greater than or
less than the quantities in which the foreign
like product is sold, agreed to be sold, or
offered for sale,
``(ii) the fact that merchandise described
in subparagraph (B) or (C) of section 771(16)
is used in determining normal value, or
``(iii) other differences in the
circumstances of sale.
``(7) Additional adjustments.--
``(A) Level of trade.--The price described in
paragraph (1)(B) shall also be increased or decreased
to make due allowance for any difference (or lack
thereof) between the export price or constructed export
price and the price described in paragraph (1)(B)
(other than a difference for which allowance is
otherwise made under this section) that is shown to be
wholly or partly due to a difference in level of trade
between the export price or constructed export price
and normal value, if the difference in level of trade--
``(i) involves the performance of different
selling activities; and
``(ii) is demonstrated to affect price
comparability, based on a pattern of consistent
price differences between sales at different
levels of trade in the country in which normal
value is determined.
In a case described in the preceding sentence, the
amount of the adjustment shall be based on the price
differences between the two levels of trade in the
country in which normal value is determined.
``(B) Constructed export price offset.--When normal
value is established at a level of trade which
constitutes a more advanced stage of distribution than
the level of trade of the constructed export price, but
the data available do not provide an appropriate basis
to determine under subparagraph (A)(ii) a level of
trade adjustment, normal value shall be reduced by the
amount of indirect selling expenses incurred in the
country in which normal value is determined on sales of
the foreign like product but not more than the amount
of such expenses for which a deduction is made under
section 772(d)(1)(D).
``(8) Adjustments to constructed value.--Constructed value
as determined under subsection (e), may be adjusted, as
appropriate, pursuant to this subsection.
``(b) Sales at Less Than Cost of Production.--
``(1) Determination; sales disregarded.--Whenever the
administering authority has reasonable grounds to believe or
suspect that sales of the foreign like product under
consideration for the determination of normal value have been
made at prices which represent less than the cost of production
of that product, the administering authority shall determine
whether, in fact, such sales were made at less than the cost of
production. If the administering authority determines that
sales made at less than the cost of production--
``(A) have been made within an extended period of
time in substantial quantities, and
``(B) were not at prices which permit recovery of
all costs within a reasonable period of time,
such sales may be disregarded in the determination of normal
value. Whenever such sales are disregarded, normal value shall
be based on the remaining sales of the foreign like product in
the ordinary course of trade. If no sales made in the ordinary
course of trade remain, the normal value shall be based on the
constructed value of the merchandise.
``(2) Definitions and special rules.--For purposes of this
subsection--
``(A) Reasonable grounds to believe or suspect.--
There are reasonable grounds to believe or suspect that
sales of the foreign like product were made at prices
that are less than the cost of production of the
product, if--
``(i) in an investigation initiated under
section 732 or a review conducted under section
751, an interested party described in
subparagraph (C), (D), (E), (F), or (G) of
section 771(9) provides information, based upon
observed prices or constructed prices or costs,
that sales of the foreign like product under
consideration for the determination of normal
value have been made at prices which represent
less than the cost of production of the
product; or
``(ii) in a review conducted under section
751 involving a specific exporter, the
administering authority disregarded some or all
of the exporter's sales pursuant to paragraph
(1) in the investigation or if a review has
been completed, in the most recently completed
review.
``(B) Extended period of time.--The term `extended
period of time' means a period that is normally 1 year,
but not less than 6 months.
``(C) Substantial quantities.--Sales made at prices
below the cost of production have been made in
substantial quantities if--
``(i) the volume of such sales represents
20 percent or more of the volume of sales under
consideration for the determination of normal
value, or
``(ii) the weighted average per unit price
of the sales under consideration for the
determination of normal value is less than the
weighted average per unit cost of production
for such sales.
``(D) Recovery of costs.--If prices which are below
the per unit cost of production at the time of sale are
above the weighted average per unit cost of production
for the period of investigation or review, such prices
shall be considered to provide for recovery of costs
within a reasonable period of time.
``(3) Calculation of cost of production.--For purposes of
this subtitle, the cost of production shall be an amount equal
to the sum of--
``(A) the cost of materials and of fabrication or
other processing of any kind employed in producing the
foreign like product, during a period which would
ordinarily permit the production of that foreign like
product in the ordinary course of business;
``(B) an amount for selling, general, and
administrative expenses based on actual data pertaining
to production and sales of the foreign like product by
the exporter in question; and
``(C) the cost of all containers and coverings of
whatever nature, and all other expenses incidental to
placing the foreign like product in condition packed
ready for shipment.
For purposes of subparagraph (A), if the normal value is based
on the price of the foreign like product sold for consumption
in a country other than the exporting country, the cost of
materials shall be determined without regard to any internal
tax in the exporting country imposed on such materials or their
disposition which are remitted or refunded upon exportation.
``(c) Nonmarket Economy Countries.--
``(1) In general.--If--
``(A) the subject merchandise is exported from a
nonmarket economy country, and
``(B) the administering authority finds that
available information does not permit the normal value
of the subject merchandise to be determined under
subsection (a),
the administering authority shall determine the normal value of
the subject merchandise on the basis of the value of the
factors of production utilized in producing the merchandise and
to which shall be added an amount for general expenses and
profit plus the cost of containers, coverings, and other
expenses. Except as provided in paragraph (2), the valuation of
the factors of production shall be based on the best available
information regarding the values of such factors in a market
economy country or countries considered to be appropriate by
the administering authority.
``(2) Exception.--If the administering authority finds that
the available information is inadequate for purposes of
determining the normal value of subject merchandise under
paragraph (1), the administering authority shall determine the
normal value on the basis of the price at which merchandise
that is--
``(A) comparable to the subject merchandise, and
``(B) produced in one or more market economy
countries that are at a level of economic development
comparable to that of the nonmarket economy country,
is sold in other countries, including the United States.
``(3) Factors of production.--For purposes of paragraph
(1), the factors of production utilized in producing
merchandise include, but are not limited to--
``(A) hours of labor required,
``(B) quantities of raw materials employed,
``(C) amounts of energy and other utilities
consumed, and
``(D) representative capital cost, including
depreciation.
``(4) Valuation of factors of production.--The
administering authority, in valuing factors of production under
paragraph (1), shall utilize, to the extent possible, the
prices or costs of factors of production in one or more market
economy countries that are--
``(A) at a level of economic development comparable
to that of the nonmarket economy country, and
``(B) significant producers of comparable
merchandise.
``(d) Special Rule for Certain Multinational Corporations.--
Whenever, in the course of an investigation under this title, the
administering authority determines that--
``(1) subject merchandise exported to the United States is
being produced in facilities which are owned or controlled,
directly or indirectly, by a person, firm, or corporation which
also owns or controls, directly or indirectly, other facilities
for the production of the foreign like product which are
located in another country or countries,
``(2) subsection (a)(1)(C) applies, and
``(3) the normal value of the foreign like product produced
in one or more of the facilities outside the exporting country
is higher than the normal value of the foreign like product
produced in the facilities located in the exporting country,
it shall determine the normal value of the subject merchandise by
reference to the normal value at which the foreign like product is sold
in substantial quantities from one or more facilities outside the
exporting country. The administering authority, in making any
determination under this paragraph, shall make adjustments for the
difference between the cost of production (including taxes, labor,
materials, and overhead) of the foreign like product produced in
facilities outside the exporting country and costs of production of the
foreign like product produced in facilities in the exporting country,
if such differences are demonstrated to its satisfaction. For purposes
of this subsection, in determining the normal value of the foreign like
product produced in a country outside of the exporting country, the
administering authority shall determine its price at the time of
exportation from the exporting country and shall make any adjustments
required by subsection (a) for the cost of all containers and coverings
and all other costs, charges, and expenses incident to placing the
merchandise in condition packed ready for shipment to the United States
by reference to such costs in the exporting country.
``(e) Constructed Value.--For purposes of this title, the
constructed value of imported merchandise shall be an amount equal to
the sum of--
``(1) the cost of materials and fabrication or other
processing of any kind employed in producing the merchandise,
during a period which would ordinarily permit the production of
the merchandise in the ordinary course of business;
``(2)(A) the actual amounts incurred and realized by the
specific exporter or producer being examined in the
investigation or review for selling, general, and
administrative expenses, and for profits, in connection with
the production and sale of a foreign like product, in the
ordinary course of trade, for consumption in the foreign
country, or
``(B) if actual data are not available with respect to the
amounts described in subparagraph (A), then--
``(i) the actual amounts incurred and realized by
the specific exporter or producer being examined in the
investigation or review for selling, general, and
administrative expenses, and for profits, in connection
with the production and sale, for consumption in the
foreign country, of merchandise that is in the same
general category of products as the subject
merchandise,
``(ii) the weighted average of the actual amounts
incurred and realized by exporters or producers that
are subject to the investigation or review (other than
the exporter or producer described in clause (i)) for
selling, general, and administrative expenses, and for
profits, in connection with the production and sale of
a foreign like product, in the ordinary course of
trade, for consumption in the foreign country, or
``(iii) the amounts incurred and realized for
selling, general, and administrative expenses, and for
profits, based on any other reasonable method, except
that the amount allowed for profit may not exceed the
amount normally realized by exporters or producers
(other than the exporter or producer described in
clause (i)) in connection with the sale, for
consumption in the foreign country, of merchandise that
is in the same general category of products as the
subject merchandise ; and
``(3) the cost of all containers and coverings of whatever
nature, and all other expenses incidental to placing the
subject merchandise in condition packed ready for shipment to
the United States.
For purposes of paragraph (1), the cost of materials shall be
determined without regard to any internal tax in the exporting country
imposed on such materials or their disposition which are remitted or
refunded upon exportation of the subject merchandise produced from such
materials.
``(f) Special Rules for Calculation of Cost of Production and for
Calculation of Constructed Value.--For purposes of subsections (b) and
(e)--
``(1) Costs.--
``(A) In general.--Costs shall normally be
calculated based on the records of the exporter or
producer of the merchandise, if such records are kept
in accordance with the generally accepted accounting
principles of the exporting country (or the producing
country, where appropriate) and reasonably reflect the
costs associated with the production and sale of the
merchandise. The administering authority shall consider
all available evidence on the proper allocation of
costs, including that which is made available by the
exporter or producer on a timely basis, if such
allocations have been historically used by the exporter
or producer, in particular for establishing appropriate
amortization and depreciation periods, and allowances
for capital expenditures and other development costs.
``(B) Nonrecurring costs.--Costs shall be adjusted
appropriately for those nonrecurring costs that benefit
current or future production, or both.
``(C) Startup costs.--
``(i) In general.--Costs shall be adjusted
appropriately for circumstances in which costs
incurred during the time period covered by the
investigation or review are affected by startup
operations.
``(ii) Startup operations.--Adjustments
shall be made for startup operations only
where--
``(I) a producer is using new
production facilities or producing a
new product that requires substantial
additional investment, and
``(II) production levels are
limited by technical factors associated
with the initial phase of commercial
production.
For purposes of subclause (II), the initial
phase of commercial production ends at the end
of the startup period. In determining whether
commercial production levels have been
achieved, the administering authority shall
consider factors unrelated to startup
operations that might affect the volume of
production processed, such as demand,
seasonality, or business cycles.
``(iii) Adjustment for startup
operations.--The adjustment for startup
operations shall be made by substituting the
unit production costs incurred with respect to
the merchandise at the end of the startup
period for the unit production costs incurred
during the startup period. If the startup
period extends beyond the period of the
investigation or review under this title, the
administering authority shall use the most
recent cost of production data that it
reasonably can obtain, analyze, and verify
without delaying the timely completion of the
investigation or review. For purposes of this
subparagraph, the startup period ends at the
point at which the level of commercial
production that is characteristic of the
merchandise, producer, or industry concerned is
achieved.
``(2) Transactions disregarded.--A transaction directly or
indirectly between affiliated persons may be disregarded if, in
the case of any element of value required to be considered, the
amount representing that element does not fairly reflect the
amount usually reflected in sales of merchandise under
consideration in the market under consideration. If a
transaction is disregarded under the preceding sentence and no
other transactions are available for consideration, the
determination of the amount shall be based on the information
available as to what the amount would have been if the
transaction had occurred between persons who are not
affiliated.
``(3) Major input rule.--If, in the case of a transaction
between affiliated persons involving the production by one of
such persons of a major input to the merchandise, the
administering authority has reasonable grounds to believe or
suspect that an amount represented as the value of such input
is less than the cost of production of such input, then the
administering authority may determine the value of the major
input on the basis of the information available regarding such
cost of production, if such cost is greater than the amount
that would be determined for such input under paragraph (2).''.
SEC. 225. CURRENCY CONVERSION.
(a) In General.--Subtitle D of title VII (19 U.S.C. 1677 et seq.)
is amended by inserting after section 773 the following new section:
``SEC. 773A. CURRENCY CONVERSION.
``(a) In General.--In an antidumping proceeding under this title,
the administering authority shall convert foreign currencies into
United States dollars using the exchange rate in effect on the date of
sale of the subject merchandise, except that, if it is established that
a currency transaction on forward markets is directly linked to an
export sale under consideration, the exchange rate specified with
respect to such currency in the forward sale agreement shall be used to
convert the foreign currency. Fluctuations in exchange rates shall be
ignored.
``(b) Sustained Movement in Foreign Currency Value.--In an
investigation under subtitle B, if there is a sustained movement in the
value of the foreign currency relative to the United States dollar, the
administering authority shall allow exporters at least 60 days to
adjust their export prices to reflect such sustained movement.''.
(b) Conforming Amendment.--The table of contents for title VII is
amended by inserting after the item relating to section 773 the
following new item:
``Sec. 773A. Currency conversion.''.
SEC. 226. PROPRIETARY AND NONPROPRIETARY INFORMATION.
(a) Proprietary Status Maintained.--
(1) In general.--Section 777(b)(1) (19 U.S.C. 1677f(b)(1))
is amended to read as follows:
``(1) Proprietary status maintained.--
``(A) In general.--Except as provided in subsection
(a)(4)(A) and subsection (c), information submitted to
the administering authority or the Commission which is
designated as proprietary by the person submitting the
information shall not be disclosed to any person
without the consent of the person submitting the
information, other than--
``(i) to an officer or employee of the
administering authority or the Commission who
is directly concerned with carrying out the
investigation in connection with which the
information is submitted or any review under
this title covering the same subject
merchandise, or
``(ii) to an officer or employee of the
United States Customs Service who is directly
involved in conducting an investigation
regarding fraud under this title.
``(B) Additional requirements.--The administering
authority and the Commission shall require that
information for which proprietary treatment is
requested be accompanied by--
``(i) either--
``(I) a non-proprietary summary in
sufficient detail to permit a
reasonable understanding of the
substance of the information submitted
in confidence, or
``(II) a statement that the
information is not susceptible to
summary accompanied by a statement of
the reasons in support of the
contention, and
``(ii) either--
``(I) a statement which permits the
administering authority or the
Commission to release under
administrative protective order, in
accordance with subsection (c), the
information submitted in confidence, or
``(II) a statement to the
administering authority or the
Commission that the business
proprietary information is of a type
that should not be released under
administrative protective order.''.
(2) Section 751 reviews.--Section 777(b) (19 U.S.C.
1677f(b)) is amended by adding at the end the following:
``(3) Section 751 reviews.--Notwithstanding the provisions
of paragraph (1), information submitted to the administering
authority or the Commission in connection with a review under
section 751(b) or 751(c) which is designated as proprietary by
the person submitting the information may, if the review
results in the revocation of an order or finding (or
termination of a suspended investigation) under section 751(d),
be used by the agency to which the information was originally
submitted in any investigation initiated within 2 years after
the date of the revocation or termination pursuant to a
petition covering the same subject merchandise.''.
(b) Unwarranted Proprietary Designation.--Section 777(b)(2) (19
U.S.C. 1677f(b)(2)) is amended by adding at the end the following new
sentence: ``In a case in which the administering authority or the
Commission returns the information to the person submitting it, the
person may thereafter submit other material concerning the subject
matter of the returned information if the submission is made within the
time otherwise provided for submitting such material.''.
SEC. 227. OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUSTRIAL USERS.
Section 777 (19 U.S.C. 1677f) is amended by adding at the end the
following new subsection:
``(h) Opportunity for Comment by Consumers and Industrial Users.--
The administering authority and the Commission shall provide an
opportunity for industrial users of the subject merchandise and, if the
merchandise is sold at the retail level, for representative consumer
organizations, to submit relevant information to the administering
authority concerning dumping or a countervailable subsidy, and to the
Commission concerning material injury by reason of dumped or subsidized
imports.''.
SEC. 228. PUBLIC NOTICE AND EXPLANATION OF DETERMINATIONS.
Section 777 (19 U.S.C. 1677f), as amended by section 227, is
amended by adding at the end the following:
``(i) Publication of Determinations; Requirements for Final
Determinations.--
``(1) In general.--Whenever the administering authority
makes a determination under section 702 or 732 whether to
initiate an investigation, or the administering authority or
the Commission makes a preliminary determination under section
703 or 733, a final determination under section 705 or section
735, a preliminary or final determination in a review under
section 751, a determination to suspend an investigation under
this title, or a determination under section 753, the
administering authority or the Commission, as the case may be,
shall publish the facts and conclusions supporting that
determination, and shall publish notice of that determination
in the Federal Register.
``(2) Contents of notice or determination.--The notice or
determination published under paragraph (1) shall include, to
the extent applicable--
``(A) in the case of a determination of the
administering authority--
``(i) the names of the exporters or
producers of the subject merchandise or, when
providing such names is impracticable, the
countries exporting the subject merchandise to
the United States,
``(ii) a description of the subject
merchandise that is sufficient to identify the
subject merchandise for customs purposes,
``(iii)(I) with respect to a determination
in an investigation under subtitle A or section
753 or in a review of a countervailing duty
order, the amount of the countervailable
subsidy established and a full explanation of
the methodology used in establishing the
amount, and
``(II) with respect to a determination in
an investigation under subtitle B or in a
review of an antidumping duty order, the
weighted average dumping margins established
and a full explanation of the methodology used
in establishing such margins, and
``(iv) the primary reasons for the
determination; and
``(B) in the case of a determination of the
Commission--
``(i) considerations relevant to the
determination of injury, and
``(ii) the primary reasons for the
determination.
``(3) Additional requirements for final determinations.--In
addition to the requirements set forth in paragraph (2)--
``(A) the administering authority shall include in
a final determination described in paragraph (1) an
explanation of the basis for its determination that
addresses relevant arguments, made by interested
parties who are parties to the investigation or review
(as the case may be), concerning the establishment of
dumping or a countervailable subsidy, or the suspension
of the investigation, with respect to which the
determination is made; and
``(B) the Commission shall include in a final
determination of injury an explanation of the basis for
its determination that addresses relevant arguments
that are made by interested parties who are parties to
the investigation or review (as the case may be)
concerning volume, price effects, and impact on the
industry of imports of the subject merchandise.''.
SEC. 229. SAMPLING AND AVERAGING; DETERMINATION OF WEIGHTED AVERAGE
DUMPING MARGIN.
(a) In General.--Section 777A (19 U.S.C. 1677f-1) is amended to
read as follows:
``SEC. 777A. SAMPLING AND AVERAGING; DETERMINATION OF WEIGHTED AVERAGE
DUMPING MARGIN.
``(a) In General.--For purposes of determining the export price (or
constructed export price) under section 772 or the normal value under
section 773, and in carrying out reviews under section 751, the
administering authority may--
``(1) use averaging and statistically valid samples, if
there is a significant volume of sales of the subject
merchandise or a significant number or types of products, and
``(2) decline to take into account adjustments which are
insignificant in relation to the price or value of the
merchandise.
``(b) Selection of Averages and Samples.--The authority to select
averages and statistically valid samples shall rest exclusively with
the administering authority. The administering authority shall, to the
greatest extent possible, consult with the exporters and producers
regarding the method to be used to select exporters, producers, or
types of products under this section.
``(c) Determination of Dumping Margin.--
``(1) General rule.--In determining weighted average
dumping margins under section 733(d), 735(c), or 751(a), the
administering authority shall determine the individual weighted
average dumping margin for each known exporter and producer of
the subject merchandise.
``(2) Exception.--If it is not practicable to make
individual weighted average dumping margin determinations under
paragraph (1) because of the large number of exporters or
producers involved in the investigation or review, the
administering authority may determine the weighted average
dumping margins for a reasonable number of exporters or
producers by limiting its examination to--
``(A) a sample of exporters, producers, or types of
products that is statistically valid based on the
information available to the administering authority at
the time of selection, or
``(B) exporters and producers accounting for the
largest volume of the subject merchandise from the
exporting country that can be reasonably examined.
``(d) Determination of Less Than Fair Value.--
``(1) Investigations.--
``(A) In general.--In an investigation under
subtitle B, the administering authority shall determine
whether the subject merchandise is being sold in the
United States at less than fair value--
``(i) by comparing the weighted average of
the normal values to the weighted average of
the export prices (and constructed export
prices) for comparable merchandise, or
``(ii) by comparing the normal values of
individual transactions to the export prices
(or constructed export prices) of individual
transactions for comparable merchandise.
``(B) Exception.--The administering authority may
determine whether the subject merchandise is being sold
in the United States at less than fair value by
comparing the weighted average of the normal values to
the export prices (or constructed export prices) of
individual transactions for comparable merchandise,
if--
``(i) there is a pattern of export prices
(or constructed export prices) for comparable
merchandise that differ significantly among
purchasers, regions, or periods of time, and
``(ii) the administering authority explains
why such differences cannot be taken into
account using a method described in paragraph
(1)(A)(i) or (ii).
``(2) Reviews.--In a review under section 751, when
comparing export prices (or constructed export prices) of
individual transactions to the weighted average price of sales
of the foreign like product, the administering authority shall
limit its averaging of prices to a period not exceeding the
calendar month that corresponds most closely to the calendar
month of the individual export sale.''.
(b) Dumping Margin; Weighted Average Dumping Margin.--Section 771
(19 U.S.C. 1677), as amended by section 222(i), is amended by adding at
the end the following new paragraph:
``(35) Dumping margin; weighted average dumping margin.--
``(A) Dumping margin.--The term `dumping margin'
means the amount by which the normal value exceeds the
export price or constructed export price of the subject
merchandise.
``(B) Weighted average dumping margin.--The term
`weighted average dumping margin' is the percentage
determined by dividing the aggregate dumping margins
determined for a specific exporter or producer by the
aggregate export prices and constructed export prices
of such exporter or producer.
``(C) Magnitude of the margin of dumping.--The
magnitude of the margin of dumping used by the
Commission shall be--
``(i) in making a preliminary determination
under section 733(a) in an investigation
(including any investigation in which the
Commission cumulatively assesses the volume and
effect of imports under paragraph (7)(G)(i)),
the dumping margin or margins published by the
administering authority in its notice of
initiation of the investigation;
``(ii) in making a final determination
under section 735(b), the dumping margin or
margins most recently published by the
administering authority prior to the closing of
the Commission's administrative record;
``(iii) in a review under section
751(b)(2), the most recent dumping margin or
margins determined by the administering
authority under section 752(c)(3), if any, or
under section 733(b) or 735(a); and
``(iv) in a review under section 751(c),
the dumping margin or margins determined by the
administering authority under section
752(c)(3).''.
SEC. 230. ANTICIRCUMVENTION.
(a) In General.--Subsections (a) and (b) of section 781 (19 U.S.C.
1677j (a) and (b)) are amended to read as follows:
``(a) Merchandise Completed or Assembled in the United States.--
``(1) In general.--If--
``(A) merchandise sold in the United States is of
the same class or kind as any other merchandise that is
the subject of--
``(i) an antidumping duty order issued
under section 736,
``(ii) a finding issued under the
Antidumping Act, 1921, or
``(iii) a countervailing duty order issued
under section 706 or section 303,
``(B) such merchandise sold in the United States is
completed or assembled in the United States from parts
or components produced in the foreign country with
respect to which such order or finding applies,
``(C) the process of assembly or completion in the
United States is minor or insignificant, and
``(D) the value of the parts or components referred
to in subparagraph (B) is a significant portion of the
total value of the merchandise,
the administering authority, after taking into account any
advice provided by the Commission under subsection (e), may
include within the scope of such order or finding the imported
parts or components referred to in subparagraph (B) that are
used in the completion or assembly of the merchandise in the
United States at any time such order or finding is in effect.
``(2) Determination of whether process is minor or
insignificant.--In determining whether the process of assembly
or completion is minor or insignificant under paragraph (1)(C),
the administering authority shall take into account--
``(A) the level of investment in the United States,
``(B) the level of research and development in the
United States,
``(C) the nature of the production process in the
United States,
``(D) the extent of production facilities in the
United States, and
``(E) whether the value of the processing performed
in the United States represents a small proportion of
the value of the merchandise sold in the United States.
``(3) Factors to consider.--In determining whether to
include parts or components in a countervailing or antidumping
duty order or finding under paragraph (1), the administering
authority shall take into account such factors as--
``(A) the pattern of trade, including sourcing
patterns,
``(B) whether the manufacturer or exporter of the
parts or components is affiliated with the person who
assembles or completes the merchandise sold in the
United States from the parts or components produced in
the foreign country with respect to which the order or
finding described in paragraph (1) applies, and
``(C) whether imports into the United States of the
parts or components produced in such foreign country
have increased after the initiation of the
investigation which resulted in the issuance of such
order or finding.
``(b) Merchandise Completed or Assembled in Other Foreign
Countries.--
``(1) In general.--If--
``(A) merchandise imported into the United States
is of the same class or kind as any merchandise
produced in a foreign country that is the subject of--
``(i) an antidumping duty order issued
under section 736,
``(ii) a finding issued under the
Antidumping Act, 1921, or
``(iii) a countervailing duty order issued
under section 706 or section 303,
``(B) before importation into the United States,
such imported merchandise is completed or assembled in
another foreign country from merchandise which--
``(i) is subject to such order or finding,
or
``(ii) is produced in the foreign country
with respect to which such order or finding
applies,
``(C) the process of assembly or completion in the
foreign country referred to in subparagraph (B) is
minor or insignificant,
``(D) the value of the merchandise produced in the
foreign country to which the antidumping duty order
applies is a significant portion of the total value of
the merchandise exported to the United States, and
``(E) the administering authority determines that
action is appropriate under this paragraph to prevent
evasion of such order or finding,
the administering authority, after taking into account any
advice provided by the Commission under subsection (e), may
include such imported merchandise within the scope of such
order or finding at any time such order or finding is in
effect.
``(2) Determination of whether process is minor or
insignificant.--In determining whether the process of assembly
or completion is minor or insignificant under paragraph (1)(C),
the administering authority shall take into account--
``(A) the level of investment in the foreign
country,
``(B) the level or research and development in the
foreign country,
``(C) the nature of the production process in the
foreign country,
``(D) the extent of production facilities in the
foreign country, and
``(E) whether the value of the processing performed
in the foreign country represents a small proportion of
the value of the merchandise imported into the United
States.
``(3) Factors to consider.--In determining whether to
include merchandise assembled or completed in a foreign country
in a countervailing duty order or an antidumping duty order or
finding under paragraph (1), the administering authority shall
take into account such factors as--
``(A) the pattern of trade, including sourcing
patterns,
``(B) whether the manufacturer or exporter of the
merchandise described in paragraph (1)(B) is affiliated
with the person who uses the merchandise described in
paragraph (1)(B) to assemble or complete in the foreign
country the merchandise that is subsequently imported
into the United States, and
``(C) whether imports into the foreign country of
the merchandise described in paragraph (1)(B) have
increased after the initiation of the investigation
which resulted in the issuance of such order or
finding.''.
(b) Time Limits for Administering Authority Determinations.--
Section 781 (19 U.S.C. 1677j) is amended by adding at the end the
following:
``(f) Time Limits for Administering Authority Determinations.--The
administering authority shall, to the maximum extent practicable, make
the determinations under this section within 300 days from the date of
the initiation of a countervailing duty or antidumping circumvention
inquiry under this section.''.
SEC. 231. EVIDENCE.
(a) Conduct of Investigations and Administrative Reviews.--Subtitle
D of title VII (19 U.S.C. 1671) is amended by adding at the end the
following new section:
``SEC. 782. CONDUCT OF INVESTIGATIONS AND ADMINISTRATIVE REVIEWS.
``(a) Treatment of Voluntary Responses in Countervailing or
Antidumping Duty Investigations and Reviews.--In any investigation
under subtitle A or B or a review under section 751(a) in which the
administering authority has, under section 777A(c)(2) or section
777A(e)(2)(A) (whichever is applicable), limited the number of
exporters or producers examined, or determined a single country-wide
rate, the administering authority shall establish an individual
countervailable subsidy rate or an individual weighted average dumping
margin for any exporter or producer not initially selected for
individual examination under such sections who submits to the
administering authority the information requested from exporters or
producers selected for examination, if--
``(1) such information is so submitted by the date
specified--
``(A) for exporters and producers that were
initially selected for examination, or
``(B) for the foreign government, in a
countervailing duty case where the administering
authority has determined a single country-wide rate;
and
``(2) the number of exporters or producers who have
submitted such information is not so large that individual
examination of such exporters or producers would be unduly
burdensome and inhibit the timely completion of the
investigation.
``(b) Certification of Submissions.--Any person providing factual
information to the administering authority or the Commission in
connection with a proceeding under this title on behalf of the
petitioner or any other interested party shall certify that such
information is accurate and complete to the best of that person's
knowledge.
``(c) Difficulties in Meeting Requirements.--
``(1) Notification by interested party.--If an interested
party, promptly after receiving a request from the
administering authority or the Commission for information,
notifies the administering authority or the Commission (as the
case may be) that such party is unable to submit the
information requested in the requested form and manner,
together with a full explanation and suggested alternative
forms in which such party is able to submit the information,
the administering authority or the Commission (as the case may
be) shall consider the ability of the interested party to
submit the information in the requested form and manner and may
modify such requirements to the extent necessary to avoid
imposing an unreasonable burden on that party.
``(2) Assistance to interested parties.--The administering
authority and the Commission shall take into account any
difficulties experienced by interested parties, particularly
small companies, in supplying information requested by the
administering authority or the Commission in connection with
investigations and reviews under this title, and shall provide
to such interested parties any assistance that is practicable
in supplying such information.
``(d) Deficient Submissions.--If the administering authority or the
Commission determines that a response to a request for information
under this title does not comply with the request, the administering
authority or the Commission (as the case may be) shall promptly inform
the person submitting the response of the nature of the deficiency and
shall, to the extent practicable, provide that person with an
opportunity to remedy or explain the deficiency in light of the time
limits established for the completion of investigations or reviews
under this title. If that person submits further information in
response to such deficiency and either--
``(1) the administering authority or the Commission (as the
case may be) finds that such response is not satisfactory, or
``(2) such response is not submitted within the applicable
time limits,
then the administering authority or the Commission (as the case may be)
may, subject to subsection (e), disregard all or part of the original
and subsequent responses.
``(e) Use of Certain Information.--In reaching a determination
under section 703, 705, 733, 735, 751, or 753 the administering
authority and the Commission shall not decline to consider information
that is submitted by an interested party and is necessary to the
determination but does not meet all the applicable requirements
established by the administering authority or the Commission, if--
``(1) the information is submitted by the deadline
established for its submission,
``(2) the information can be verified,
``(3) the information is not so incomplete that it cannot
serve as a reliable basis for reaching the applicable
determination,
``(4) the interested party has demonstrated that it acted
to the best of its ability in providing the information and
meeting the requirements established by the administering
authority or the Commission with respect to the information,
and
``(5) the information can be used without undue
difficulties.
``(f) Nonacceptance of Submissions.--If the administering authority
or the Commission declines to accept into the record any information
submitted in an investigation or review under this title, it shall, to
the extent practicable, provide to the person submitting the
information a written explanation of the reasons for not accepting the
information.
``(g) Public Comment on Information.--Information that is submitted
on a timely basis to the administering authority or the Commission
during the course of a proceeding under this title shall be subject to
comment by other parties to the proceeding within such reasonable time
as the administering authority or the Commission shall provide. The
administering authority and the Commission, before making a final
determination under section 705, 735, 751, or 753 shall cease
collecting information and shall provide the parties with a final
opportunity to comment on the information obtained by the administering
authority or the Commission (as the case may be) upon which the parties
have not previously had an opportunity to comment. Comments containing
new factual information shall be disregarded.
``(h) Termination of Investigation or Revocation of Order for Lack
of Interest.--The administering authority may--
``(1) terminate an investigation under subtitle A or B with
respect to a domestic like product if, prior to publication of
an order under section 706 or 736, the administering authority
determines that producers accounting for substantially all of
the production of that domestic like product have expressed a
lack of interest in issuance of an order; and
``(2) revoke an order issued under section 706 or 736 with
respect to a domestic like product, or terminate an
investigation suspended under section 704 or 734 with respect
to a domestic like product, if the administering authority
determines that producers accounting for substantially all of
the production of that domestic like product, have expressed a
lack of interest in the order or suspended investigation.
``(i) Verification.--The administering authority shall verify all
information relied upon in making--
``(1) a final determination in an investigation,
``(2) a revocation under section 751(d), and
``(3) a final determination in a review under section
751(a), if--
``(A) verification is timely requested by an
interested party as defined in section 771(9)(C), (D),
(E), (F), or (G), and
``(B) no verification was made under this
subparagraph during the 2 immediately preceding reviews
and determinations under section 751(a) of the same
order, finding, or notice, except that this clause
shall not apply if good cause for verification is
shown.''.
(b) Availability of Nonproprietary Information.--Section 777(a)(4)
(19 U.S.C. 1677f(a)(4)) is amended by striking ``may disclose'' and
inserting ``shall disclose''.
(c) Determinations on the Basis of the Facts Available.--Section
776 (19 U.S.C. 1677e) is amended to read as follows:
``SEC. 776. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.
``(a) In General.--If--
``(1) necessary information is not available on the record,
or
``(2) an interested party or any other person--
``(A) withholds information that has been requested
by the administering authority or the Commission under
this title,
``(B) fails to provide such information by the
deadlines for submission of the information or in the
form and manner requested, subject to subsections
(c)(1) and (e) of section 782,
``(C) significantly impedes a proceeding under this
title, or
``(D) provides such information but the information
cannot be verified as provided in section 782(i),
the administering authority and the Commission shall, subject to
section 782(d), use the facts otherwise available in reaching the
applicable determination under this title.
``(b) Adverse Inferences.--If the administering authority or the
Commission (as the case may be) finds that an interested party has
failed to cooperate by not acting to the best of its ability to comply
with a request for information from the administering authority or the
Commission, the administering authority or the Commission (as the case
may be), in reaching the applicable determination under this title, may
use an inference that is adverse to the interests of that party in
selecting from among the facts otherwise available. Such adverse
inference may include reliance on information derived from--
``(1) the petition,
``(2) a final determination in the investigation under this
title,
``(3) any previous review under section 751 or
determination under section 753, or
``(4) any other information placed on the record.
``(c) Corroboration of Secondary Information.--When the
administering authority or the Commission relies on secondary
information rather than on information obtained in the course of an
investigation or review, the administering authority or the Commission,
as the case may be, shall, to the extent practicable, corroborate that
information from independent sources that are reasonably at their
disposal.''.
(d) Conforming Amendments.--
(1) Section 777(e) (19 U.S.C. 1677f(e)) is repealed.
(2) The table of contents for title VII is amended--
(A) by amending the item relating to section 776 to
read as follows:
``Sec. 776. Determinations on the basis of the facts available.'';
and
(B) by inserting after the item relating to section
781 the following new item:
``Sec. 782. Conduct of investigations and administrative reviews.''.
SEC. 232. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.
(a) In General.--Subtitle D of title VII (19 U.S.C. 1677 et seq.),
as amended by section 231(a), is amended by adding at the end the
following new section:
``SEC. 783. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.
``(a) Filing of Petition.--The government of a WTO member may file
with the Trade Representative a petition requesting that an
investigation be conducted to determine if--
``(1) imports from another country are being sold in the
United States at less than fair value, and
``(2) an industry in the petitioning country is materially
injured by reason of those imports.
``(b) Initiation.--The Trade Representative, after consultation
with the administering authority and the Commission and obtaining the
approval of the WTO Council for Trade in Goods, shall determine whether
to initiate an investigation described in subsection (a).
``(c) Determinations.--Upon initiation of an investigation under
this section, the Trade Representative shall request the following
determinations be made according to substantive and procedural
requirements specified by the Trade Representative, notwithstanding any
other provision of this title:
``(1) The administering authority shall determine whether
imports into the United States of the subject merchandise are
being sold at less than fair value.
``(2) The Commission shall determine whether an industry in
the petitioning country is materially injured by reason of
imports of the subject merchandise into the United States.
``(d) Public Comment.--An opportunity for public comment shall be
provided, as appropriate--
``(1) by the Trade Representative, in making the
determination required by subsection (b), and
``(2) by the administering authority and the Commission, in
making the determination required by subsection (c).
``(e) Issuance of Order.--If the administering authority makes an
affirmative determination under paragraph (1) of subsection (c), and
the Commission makes an affirmative determination under paragraph (2)
of subsection (c), the administering authority shall issue an
antidumping duty order in accordance with section 736 and take such
other actions as are required by section 736.
``(f) Reviews of Determinations.--For purposes of review under
section 516A or review under section 751, if an order is issued under
subsection (d), the final determinations of the administering authority
and the Commission under this section shall be treated as final
determinations made under section 735.
``(g) Access to Information.--Section 777 shall apply to
investigations under this section, to the extent specified by the Trade
Representative, after consultation with the administering authority and
the Commission.''.
(b) Conforming Amendment.--The table of contents for title VII, as
amended by section 231(d)(2), is amended by adding after the item
relating to section 782 the following new item:
``Sec. 783. Antidumping petitions by third countries.''.
SEC. 233. CONFORMING AMENDMENTS.
(a) Terminology.--
(1) Normal value.--Each of the following sections is
amended by striking ``foreign market value'' each place it
appears in the text and in the heading and inserting ``normal
value'':
(A) Section 731 (19 U.S.C. 1673).
(B) Section 734 (19 U.S.C. 1673c).
(C) Section 736 (19 U.S.C. 1673e).
(D) Section 739 (19 U.S.C. 1673h).
(E) Section 780 (19 U.S.C. 1677i).
(2) Export price.--
(A) In general.--Each of the following sections is
amended by striking ``United States price'' each place
it appears in the text and in the heading and inserting
``export price (or the constructed export price)'':
(i) Section 731 (19 U.S.C. 1673).
(ii) Section 734 (19 U.S.C. 1673c).
(iii) Section 736 (19 U.S.C. 1673e).
(iv) Section 738 (19 U.S.C. 1673g).
(v) Section 739 (19 U.S.C. 1673h).
(vi) Section 780 (19 U.S.C. 1677i).
(B) Exporter's sales price.--Section 738(b)(3) (19
U.S.C. 1673g(b)(3)) is amended by striking ``exporter's
sales price'' and inserting ``constructed export
price''.
(3) Domestic like product.--
(A) Each of the following sections is amended by
striking ``like product'' each place it appears in the
text and in the heading and inserting ``domestic like
product'':
(i) Section 771(4)(C) and (D) (19 U.S.C.
1677(4)(C) and (D)).
(ii) Section 771(7)(C)(iii)(IV) (19 U.S.C.
1677(7)(C)(iii)(IV)).
(iii) Section 771(9) (19 U.S.C. 1677(9)).
(iv) Section 771(10) (19 U.S.C. 1677(10)).
(B) Sections 771(7)(B)(i)(II) and (III) and section
771(7)(C)(ii)(I) (19 U.S.C. 1677(7)(B)(i)(II) and (III)
and (C)(ii)(I)) are amended by striking ``like
products'' and inserting ``domestic like products''.
(4) Foreign like product.--Section 771(16) (19 U.S.C.
1677(16)) is amended--
(A) by striking ``such or similar merchandise'' in
the text and inserting ``foreign like product'', and
(B) by amending the heading to read as follows:
``Foreign like product.''.
(5) Subject merchandise.--
(A) Section 701(d) (19 U.S.C. 1671(d)) is amended
by striking ``a class or kind of merchandise subject to
a countervailing duty investigation'' and inserting
``subject merchandise''.
(B) Section 702(e) (19 U.S.C. 1671a(e)) is amended
by striking ``class or kind of merchandise that is the
subject of the investigation'' each place it appears
and inserting ``subject merchandise''.
(C) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)) is
amended by striking ``merchandise which is the subject
of the investigation'' and inserting ``subject
merchandise''.
(D) Section 704(a)(2)(A) (19 U.S.C. 1671c(a)(2)(A))
is amended by striking ``merchandise that is subject to
the investigation'' and inserting ``subject
merchandise''.
(E) Section 704(b) (19 U.S.C. 1671c(b)) is amended
by striking ``merchandise which is the subject of the
investigation'' and inserting ``subject merchandise''.
(F) Section 704(c)(1) (19 U.S.C. 1671c(c)(1)) is
amended by striking ``merchandise which is the subject
of the investigation'' and inserting ``subject
merchandise''.
(G) Section 704(c)(2) (19 U.S.C. 1671c(c)(2)) is
amended by striking ``merchandise which is the subject
of the investigation'' and inserting ``subject
merchandise''.
(H) Section 704(c)(3) (19 U.S.C. 1671c(c)(3)) is
amended by striking ``merchandise which is the subject
of an investigation'' and inserting ``subject
merchandise''.
(I) Section 704(d)(3) (19 U.S.C. 1671c(d)(3)) is
amended by striking ``merchandise covered by such
agreement'' and inserting ``subject merchandise''.
(J) Section 704(f)(1)(A) (19 U.S.C. 1671c(f)(1)(A))
is amended by striking ``merchandise which is the
subject of the investigation'' and inserting ``subject
merchandise''.
(K) Subparagraphs (A)(i) and (B) of section
704(f)(2) (19 U.S.C. 1671c(f)(2)(A)(i) and (B)) are
amended by striking ``merchandise which is the subject
of the investigation'' each place it appears and
inserting ``subject merchandise''.
(L) Paragraphs (2) and (3) of section 704(h) (19
U.S.C. 1671c(h) (2) and (3)) are amended by striking
``merchandise which is the subject of the
investigation'' each place it appears and inserting
``subject merchandise''.
(M) Section 704(j) (19 U.S.C. 1671c(j)) is amended
by striking ``merchandise which is the subject of the
investigation'' and inserting ``subject merchandise''.
(N) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)) is
amended by striking ``the merchandise'' and inserting
``the subject merchandise''.
(O) Section 706(a)(2) (19 U.S.C. 1671e(a)(2)), as
redesignated by section 265, is amended by striking
``class or kind of merchandise to which it applies''
and inserting ``subject merchandise''.
(P) Section 732(e)(1) (19 U.S.C. 1673a(e)(1)) is
amended by striking ``class or kind of the merchandise
which is the subject of the investigation'' and
inserting ``the subject merchandise''.
(Q) Section 732(e)(2) (19 U.S.C. 1673a(e)(2)) is
amended by striking ``merchandise which is the subject
of the investigation'' and inserting ``subject
merchandise''.
(R) Section 732(e) (19 U.S.C. 1673a(e)) is amended
by striking ``class or kind of merchandise that is the
subject of the investigation'' each place it appears
and inserting ``subject merchandise''.
(S) Section 734(a)(2)(A) (19 U.S.C 1673c(a)(2)(A))
is amended by striking ``merchandise that is subject to
the investigation'' and inserting ``subject
merchandise''.
(T) Subsections (b), (c)(1), (f)(1)(A),
(f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (j) of
section 734 (19 U.S.C 1673c(b), (c)(1), (f)(1)(A),
(f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (j)) are
amended by striking ``merchandise which is the subject
of the investigation'' each place it appears and
inserting ``subject merchandise''.
(U) Section 734(f)(2)(B) (19 U.S.C. 1673c(f)(2)(B))
is amended by striking ``merchandise subject to the
investigation'' and inserting ``subject merchandise''.
(V) Section 735(a)(1) (19 U.S.C. 1673d(a)(1)) is
amended by striking ``merchandise which was the subject
of the investigation'' and inserting ``subject
merchandise''.
(W) Section 736(a)(2) (19 U.S.C. 1673e(a)(2)) is
amended by striking ``class or kind of merchandise to
which it applies'' and inserting ``subject
merchandise''.
(X) Section 736(b)(1) (19 U.S.C. 1673e(b)(1)) is
amended by striking ``merchandise subject to the
antidumping duty order'' and inserting ``subject
merchandise''.
(Y) Section 736(b)(2) (19 U.S.C. 1673e(b)(2)) is
amended by striking ``merchandise subject to an
antidumping duty order'' and inserting ``subject
merchandise''.
(Z) Section 762(a)(1) (19 U.S.C. 1676a(a)(1)) is
amended by striking ``merchandise subject to the
agreement'' and inserting ``subject merchandise''.
(AA) Section 762(b)(2) (19 U.S.C. 1676a(b)(2)) is
amended by striking ``merchandise subject to the
order'' and inserting ``subject merchandise''.
(BB) Section 771(7)(B)(i)(I) (19 U.S.C.
1677(7)(B)(i)(I)) is amended by striking ``merchandise
which is the subject of the investigation'' and
inserting ``subject merchandise''.
(CC) Section 771(9)(A) (19 U.S.C. 1677(9)(A)) is
amended by striking ``merchandise which is the subject
of an investigation under this title'' and inserting
``subject merchandise''.
(DD) Section 771(16)(A) (19 U.S.C. 1677(16)(A)) is
amended by striking ``merchandise which is the subject
of an investigation'' and inserting ``subject
merchandise''.
(EE) Section 771(16)(B)(i) (19 U.S.C.
1677(16)(B)(i)) is amended by striking ``merchandise
which is the subject of an investigation'' and
inserting ``subject merchandise''.
(FF) Section 771(17) (19 U.S.C. 1677(17)) is
amended by striking ``merchandise which is the subject
of the investigation'' and inserting ``subject
merchandise''.
(GG) Section 771A(c) (19 U.S.C. 1677-1(c)) is
amended by striking ``merchandise under investigation''
and inserting ``subject merchandise''.
(6) Initiate.--(A) Each of the following sections is
amended by striking ``commenced'' and inserting ``initiated'':
(i) Section 702(a).
(ii) Section 702(b)(1).
(iii) Section 703(b)(1).
(iv) Section 703(c)(1).
(v) Section 732(a)(1).
(vi) Section 732(a)(2)(D).
(vii) Section 732(b)(1).
(viii) Section 733(b)(1)(A) and (B).
(ix) Section 733(b)(2).
(x) Section 733(c)(1).
(B) Sections 703(g)(1) and 733(b)(2) are each amended by
striking ``commencement'' and inserting ``initiation''.
(C) Section 732(a)(2)(B) is amended by striking
``commence'' and inserting ``initiate''.
(7) Technical amendments.--The table of contents for title
VII is amended--
(A) by amending the item relating to section 772 to
read as follows:
``Sec. 772. Export price and constructed export price.'';
(B) by striking ``Foreign market value'' in the
item relating to section 773 and inserting ``Normal
value'', and
(C) by inserting after the item relating to section
708 the following new item:
``Sec. 709. Conditional payment of countervailing duty.''.
(b) Other Conforming Amendments.--
(1) WTO member.--Section 771(7)(F)(iii) (19 U.S.C.
1677(7)(F)(iii)) is amended--
(A) in subclause (I), by striking ``GATT member''
and inserting ``WTO member''; and
(B) in subclause (II)--
(i) in the subclause heading, by striking
``GATT member'' and inserting ``WTO member'';
(ii) by striking ``GATT member'' and
inserting ``WTO member''; and
(iii) by striking ``signatory'' and all
that follows through ``measures)'' and
inserting ``WTO member''.
(2) Administering authority.--Section 771(1) (19 U.S.C.
1677(1)) is amended by striking ``the Treasury'' and inserting
``Commerce''.
SEC. 234. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade Agreement
and section 408 of the North American Free Trade Agreement
Implementation Act, the amendments made by this title shall apply with
respect to goods from Canada and Mexico.
Subtitle B--Subsidies Provisions
PART 1--COUNTERVAILABLE SUBSIDIES
SEC. 251. COUNTERVAILABLE SUBSIDY.
(a) In General.--Section 771 (19 U.S.C. 1677) is amended by
striking paragraph (5) and inserting the following:
``(5) Countervailable subsidy.--
``(A) In general.--Except as provided in paragraph
(5B), a countervailable subsidy is a subsidy described
in this paragraph which is specific as described in
paragraph (5A).
``(B) Subsidy described.--A subsidy is described in
this paragraph in the case in which an authority--
``(i) provides a financial contribution,
``(ii) provides any form of income or price
support within the meaning of Article XVI of
the GATT 1994, or
``(iii) makes a payment to a funding
mechanism to provide a financial contribution,
or entrusts or directs a private entity to make
a financial contribution, if providing the
contribution would normally be vested in the
government and the practice does not differ in
substance from practices normally followed by
governments,
to a person and a benefit is thereby conferred. For
purposes of this paragraph and paragraphs (5A) and
(5B), the term `authority' means a government of a
country or any public entity within the territory of
the country.
``(C) Other factors.--The determination of whether
a subsidy exists shall be made without regard to
whether the recipient of the subsidy is publicly or
privately owned and without regard to whether the
subsidy is provided directly or indirectly on the
manufacture, production, or export of merchandise. The
administering authority is not required to consider the
effect of the subsidy in determining whether a subsidy
exists under this paragraph.
``(D) Financial contribution.--The term `financial
contribution' means--
``(i) the direct transfer of funds, such as
grants, loans, and equity infusions, or the
potential direct transfer of funds or
liabilities, such as loan guarantees,
``(ii) foregoing or not collecting revenue
that is otherwise due, such as granting tax
credits or deductions from taxable income,
``(iii) providing goods or services, other
than general infrastructure, or
``(iv) purchasing goods.
``(E) Benefit conferred.--A benefit shall normally
be treated as conferred where there is a benefit to the
recipient, including--
``(i) in the case of an equity infusion, if
the investment decision is inconsistent with
the usual investment practice of private
investors, including the practice regarding the
provision of risk capital, in the country in
which the equity infusion is made,
``(ii) in the case of a loan, if there is a
difference between the amount the recipient of
the loan pays on the loan and the amount the
recipient would pay on a comparable commercial
loan that the recipient could actually obtain
on the market,
``(iii) in the case of a loan guarantee, if
there is a difference, after adjusting for any
difference in guarantee fees, between the
amount the recipient of the guarantee pays on
the guaranteed loan and the amount the
recipient would pay for a comparable commercial
loan if there were no guarantee by the
authority, and
``(iv) in the case where goods or services
are provided, if such goods or services are
provided for less than adequate remuneration,
and in the case where goods are purchased, if
such goods are purchased for more than adequate
remuneration.
For purposes of clause (iv), the adequacy of
remuneration shall be determined in relation to
prevailing market conditions for the good or service
being provided or the goods being purchased in the
country which is subject to the investigation or
review. Prevailing market conditions include price,
quality, availability, marketability, transportation,
and other conditions of purchase or sale.
``(F) Change in ownership.--A change in ownership
of all or part of a foreign enterprise or the
productive assets of a foreign enterprise does not by
itself require a determination by the administering
authority that a past countervailable subsidy received
by the enterprise no longer continues to be
countervailable, even if the change in ownership is
accomplished through an arm's length transaction.
``(5A) Specificity.--
``(A) In general.--A subsidy is specific if it is
an export subsidy described in subparagraph (B) or an
import substitution subsidy described in subparagraph
(C), or if it is determined to be specific pursuant to
subparagraph (D).
``(B) Export subsidy.--An export subsidy is a
subsidy that is, in law or in fact, contingent upon
export performance, alone or as 1 of 2 or more
conditions.
``(C) Import substitution subsidy.--An import
substitution subsidy is a subsidy that is contingent
upon the use of domestic goods over imported goods,
alone or as 1 of 2 or more conditions.
``(D) Domestic subsidy.--In determining whether a
subsidy (other than a subsidy described in subparagraph
(B) or (C)) is a specific subsidy, in law or in fact,
to an enterprise or industry within the jurisdiction of
the authority providing the subsidy, the following
guidelines shall apply:
``(i) Where the authority providing the
subsidy, or the legislation pursuant to which
the authority operates, expressly limits access
to the subsidy to an enterprise or industry,
the subsidy is specific as a matter of law.
``(ii) Where the authority providing the
subsidy, or the legislation pursuant to which
the authority operates, establishes objective
criteria or conditions governing the
eligibility for, and the amount of, a subsidy,
the subsidy is not specific as a matter of law,
if--
``(I) eligibility is automatic,
``(II) the criteria or conditions
for eligibility are strictly followed,
and
``(III) the criteria or conditions
are clearly set forth in the relevant
statute, regulation, or other official
document so as to be capable of
verification.
For purposes of this clause, the term
`objective criteria or conditions' means
criteria or conditions that are neutral and
that do not favor one enterprise or industry
over another.
``(iii) Where there are reasons to believe
that a subsidy may be specific as a matter of
fact, the subsidy is specific if one or more of
the following factors exist:
``(I) The actual recipients of the
subsidy, whether considered on an
enterprise or industry basis, are
limited in number.
``(II) An enterprise or industry is
a predominant user of the subsidy.
``(III) An enterprise or industry
receives a disproportionately large
amount of the subsidy.
``(IV) The manner in which the
authority providing the subsidy has
exercised discretion in the decision to
grant the subsidy indicates that an
enterprise or industry is favored over
others.
In evaluating the factors set forth in
subclauses (I), (II), (III), and (IV), the
administering authority shall take into account
the extent of diversification of economic
activities within the jurisdiction of the
authority providing the subsidy, and the length
of time during which the subsidy program has
been in operation.
``(iv) Where a subsidy is limited to an
enterprise or industry located within a
designated geographical region within the
jurisdiction of the authority providing the
subsidy, the subsidy is specific.
For purposes of this paragraph and paragraph (5B), any
reference to an enterprise or industry is a reference to a
foreign enterprise or foreign industry and includes a group of
such enterprises or industries.
``(5B) Categories of noncountervailable subsidies.--
``(A) In general.--Notwithstanding the provisions
of paragraphs (5) and (5A), in the case of merchandise
imported from a Subsidies Agreement country, a subsidy
shall be treated as noncountervailable if the
administering authority determines in an investigation
under subtitle A or a review under subtitle C that the
subsidy meets all of the criteria described in
subparagraph (B), (C), or (D), as the case may be, or
the provisions of subparagraph (E)(i) apply.
``(B) Research subsidy.--
``(i) In general.--Except for a subsidy
provided on the manufacture, production, or
export of civil aircraft, a subsidy for
research activities conducted by a person, or
by a higher education or research establishment
on a contract basis with a person, shall be
treated as noncountervailable, if the subsidy
covers not more than 75 percent of the costs of
industrial research or not more than 50 percent
of the costs of precompetitive development
activity, and such subsidy is limited
exclusively to--
``(I) the costs of researchers,
technicians, and other supporting staff
employed exclusively in the research
activity,
``(II) the costs of instruments,
equipment, land, or buildings that are
used exclusively and permanently
(except when disposed of on a
commercial basis) for the research
activity,
``(III) the costs of consultancy
and equivalent services used
exclusively for the research activity,
including costs for bought-in research,
technical knowledge, and patents,
``(IV) additional overhead costs
incurred directly as a result of the
research activity, and
``(V) other operating costs (such
as materials and supplies) incurred
directly as a result of the research
activity.
``(ii) Definitions.--For purposes of this
subparagraph--
``(I) Industrial research.--The
term `industrial research' means
planned search or critical
investigation aimed at the discovery of
new knowledge, with the objective that
such knowledge may be useful in
developing new products, processes, or
services, or in bringing about a
significant improvement to existing
products, processes, or services.
``(II) Precompetitive development
activity.--The term `precompetitive
development activity' means the
translation of industrial research
findings into a plan, blueprint, or
design for new, modified, or improved
products, processes, or services,
whether intended for sale or use,
including the creation of a first
prototype that would not be capable of
commercial use. The term also may
include the conceptual formulation and
design of products, processes, or
services alternatives and initial
demonstration or pilot projects, if
these same projects cannot be converted
or used for industrial application or
commercial exploitation. The term does
not include routine or periodic
alterations to existing products,
production lines, manufacturing
processes, services, or other ongoing
operations even if those alterations
may represent improvements.
``(iii) Calculation rules.--
``(I) In general.--In the case of a
research activity that spans both
industrial research and precompetitive
development activity, the allowable
level of the noncountervailable subsidy
shall not exceed 62.5 percent of the
costs set forth in subclauses (I),
(II), (III), (IV), and (V) of clause
(i).
``(II) Total eligible costs.--The
allowable level of a noncountervailable
subsidy described in clause (i) shall
be based on the total eligible costs
incurred over the duration of a
particular project.
``(C) Subsidy to disadvantaged regions.--
``(i) In general.--A subsidy provided,
pursuant to a general framework of regional
development, to a person located in a
disadvantaged region within a country shall be
treated as noncountervailable, if it is not
specific (within the meaning of paragraph (5A))
within eligible regions and if the following
conditions are met:
``(I) Each region identified as
disadvantaged within the territory of a
country is a clearly designated,
contiguous geographical area with a
definable economic and administrative
identity.
``(II) Each region is considered a
disadvantaged region on the basis of
neutral and objective criteria
indicating that the region is
disadvantaged because of more than
temporary circumstances, and such
criteria are clearly stated in the
relevant statute, regulation, or other
official document so as to be capable
of verification.
``(III) The criteria described in
subclause (II) include a measurement of
economic development.
``(IV) Programs provided within a
general framework of regional
development include ceilings on the
amount of assistance that can be
granted to a subsidized project. Such
ceilings are differentiated according
to the different levels of development
of assisted regions, and are expressed
in terms of investment costs or costs
of job creation. Within such ceilings,
the distribution of assistance is
sufficiently broad and even to avoid
the predominant use of a subsidy by, or
the provision of disproportionately
large amounts of a subsidy to, an
enterprise or industry as described in
paragraph (5A)(D).
``(ii) Measurement of economic
development.--For purposes of clause (i), the
measurement of economic development shall be
based on one or more of the following factors:
``(I) Per capita income, household
per capita income, or per capita gross
domestic product that does not exceed
85 percent of the average for the
country subject to investigation or
review.
``(II) An unemployment rate that is
at least 110 percent of the average
unemployment rate for the country
subject to investigation or review.
The measurement of economic development shall
cover a 3-year period, but may be a composite
measurement and may include factors other than
those set forth in this clause.
``(iii) Definitions.--For purposes of this
subparagraph--
``(I) General framework of regional
development.--The term `general
framework of regional development'
means that the regional subsidy
programs are part of an internally
consistent and generally applicable
regional development policy, and that
regional development subsidies are not
granted in isolated geographical points
having no, or virtually no, influence
on the development of a region.
``(II) Neutral and objective
criteria.--The term `neutral and
objective criteria' means criteria that
do not favor certain regions beyond
what is appropriate for the elimination
or reduction of regional disparities
within the framework of the regional
development policy.
``(D) Subsidy for adaptation of existing facilities
to new environmental requirements.--
``(i) In general.--A subsidy that is
provided to promote the adaptation of existing
facilities to new environmental requirements
that are imposed by statute or by regulation,
and that result in greater constraints and
financial burdens on the recipient of the
subsidy, shall be treated as
noncountervailable, if the subsidy--
``(I) is a one-time nonrecurring
measure,
``(II) is limited to 20 percent of
the cost of adaptation,
``(III) does not cover the cost of
replacing and operating the subsidized
investment, a cost that must be fully
borne by the recipient,
``(IV) is directly linked and
proportionate to the recipient's
planned reduction of nuisances and
pollution, and does not cover any
manufacturing cost savings that may be
achieved, and
``(V) is available to all persons
that can adopt the new equipment or
production processes.
``(ii) Existing facilities.--For purposes
of this subparagraph, the term `existing
facilities' means facilities that have been in
operation for at least 2 years before the date
on which the new environmental requirements are
imposed.
``(E) Notified subsidy program.--
``(i) General rule.--If a subsidy is
provided pursuant to a program that has been
notified in accordance with Article 8.3 of the
Subsidies Agreement, the subsidy shall be
treated as noncountervailable and shall not be
subject to investigation or review under this
title.
``(ii) Exception.--Notwithstanding clause
(i), a subsidy shall be treated as
countervailable if--
``(I) the Trade Representative
notifies the administering authority
that a determination has been made
pursuant to Article 8.4 or 8.5 of the
Subsidies Agreement that the subsidy,
or the program pursuant to which the
subsidy was provided, does not satisfy
the conditions and criteria of Article
8.2 of the Subsidies Agreement; and
``(II) the subsidy is specific
within the meaning of paragraph (5A).
``(F) Certain subsidies on agricultural products.--
Domestic support measures that are provided with
respect to products listed in Annex 1 to the Agreement
on Agriculture, and that the administering authority
determines conform fully to the provisions of Annex 2
to that Agreement, shall be treated as
noncountervailable. Upon request by the administering
authority, the Trade Representative shall provide
advice regarding the interpretation and application of
Annex 2.
``(G) Provisional application.--
``(i) Subparagraphs (B), (C), (D), and (E)
shall not apply on or after the first day of
the month that is 66 months after the WTO
Agreement enters into force, unless the
provisions of such subparagraphs are extended
pursuant to section 282(c) of the Uruguay Round
Agreements Act.
``(ii) Subparagraph (F) shall not apply to
imports from a WTO member country at the end of
the 9-year period beginning on January 1, 1995.
The Trade Representative shall determine the
precise termination date for each WTO member
country in accordance with paragraph (i) of
Article 1 of the Agreement on Agriculture and
such date shall be notified to the
administering authority.''.
(b) Net Countervailable Subsidy.--Section 771(6) (19 U.S.C.
1677(6)) is amended by inserting ``countervailable'' before ``subsidy''
each place it appears in the text and in the heading.
PART 2--REPEAL OF SECTION 303 AND CONFORMING AMENDMENTS
SEC. 261. REPEAL OF SECTION 303.
(a) In General.--Section 303 of the Tariff Act of 1930 (19 U.S.C.
1303) is repealed effective on the effective date of this title.
(b) Savings Provisions.--
(1) Continuing effect of legal documents.--All orders,
determinations, and other administrative actions--
(A) which have been issued pursuant to an
investigation conducted under section 303 of the Tariff
Act of 1930, and
(B) which are in effect on the effective date of
this title, or were final before such date and are to
become effective on or after such date,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the administering authority, the
International Trade Commission, or a court of competent
jurisdiction, or by operation of law. Except as provided in
paragraph (3), such orders or determinations shall be subject
to review under section 751 of the Tariff Act of 1930 and, to
the extent applicable, investigation under section 753 of such
Act (as added by this title).
(2) Proceedings not affected.--The provisions of subsection
(a) shall not affect any proceedings, including notices of
proposed rulemaking, pending before the administering authority
or the International Trade Commission on the effective date of
this title with respect to such section 303. Orders shall be
issued in such proceedings, appeals shall be taken therefrom,
and payments shall be made pursuant to such orders, in
accordance with such section 303 as in effect on the day before
the effective date of this title and, except as provided in
paragraph (3), shall be subject to review under section 751 of
the Tariff Act of 1930 and, to the extent applicable,
investigation under section 753 of such Act. Orders issued in
any such proceedings shall continue in effect until modified,
terminated, superseded, set aside, or revoked in accordance
with law by the administering authority, a court of competent
jurisdiction, or by operation of law. Nothing in this section
shall be deemed to prohibit the discontinuance or modification
of any such proceeding under the same terms and conditions and
to the same extent that such proceeding could have been
discontinued or modified if this section had not been enacted.
(3) Suits not affected.--The provisions of subsection (a)
shall not affect the review pursuant to section 516A of the
Tariff Act of 1930 of a countervailing duty order issued
pursuant to an investigation conducted under section 303 of
such Act or a review of a countervailing duty order issued
under section 751 of such Act, if such review is pending or the
time for filing such review has not expired on the effective
date of this title.
(c) Definition of Administering Authority.--For purposes of this
section, the term ``administering authority'' has the meaning given
such term by section 771(1) of the Tariff Act of 1930.
(d) Conforming Amendments.--
(1) In general.--
(A) Amendments to trade act of 1974.--
(i) Section 331(d)(3) of the Trade Act of
1974 (19 U.S.C. 1303 note) is repealed.
(ii) Section 152(a)(2) of the Trade Act of
1974 (19 U.S.C. 2192(a)(2)) is amended by
striking ``(A) in the case of'' and all that
follows through ``(B)''.
(iii) Section 154(a) of the Trade Act of
1974 (19 U.S.C. 2194(a)) is amended by striking
``or section 303(e) of the Tariff Act of
1930,''.
(B) Amendments to tariff act of 1930.--The
following sections of the Tariff Act of 1930 are
amended:
(i) Section 315(d) (19 U.S.C. 1315(d)) is
amended by inserting ``(as in effect on the day
before the effective date of title II of the
Uruguay Round Agreements Act) or section 701''
after ``section 303''.
(ii) Section 337(b)(3) (19 U.S.C.
1337(b)(3)) is amended--
(I) by striking ``of section 303 or
subtitle B of title VII of the Tariff
Act of 1930'' and inserting ``of
subtitle B of title VII of this Act'',
(II) by striking ``section 303,
671, or 673'' and inserting ``section
701 or 731'',
(III) by striking ``section 303,
701,'' and inserting ``section 701'',
(IV) by striking ``of the Secretary
under section 303 of this Act or'', and
(V) by striking ``matter within
such section 303, 701, or'' and
inserting ``matter within such section
701 or''.
(iii) Section 701 (19 U.S.C. 1671) is
amended by striking subsection (f).
(iv) Section 780(c)(1) (19 U.S.C.
1677i(c)(1)) is amended by striking ``, 732(a),
or 303'' and inserting ``or 732(a)''.
(C) Other references.--Any reference to section 303
in any other Federal law, Executive order, rule, or
regulation shall be treated as a reference to section
303 of the Tariff Act of 1930 as in effect on the day
before the effective date of title II of this Act.
(2) Effective date.--The amendments made by this subsection
shall take effect on the effective date of this title.
SEC. 262. IMPOSITION OF COUNTERVAILING DUTIES.
Section 701 (a), (b), and (c) (19 U.S.C. 1671 (a), (b), and (c))
are amended to read as follows:
``(a) General Rule.--If--
``(1) the administering authority determines that the
government of a country or any public entity within the
territory of a country is providing, directly or indirectly, a
countervailable subsidy with respect to the manufacture,
production, or export of a class or kind of merchandise
imported, or sold (or likely to be sold) for importation, into
the United States, and
``(2) in the case of merchandise imported from a Subsidies
Agreement country, the Commission determines that--
``(A) an industry in the United States--
``(i) is materially injured, or
``(ii) is threatened with material injury,
or
``(B) the establishment of an industry in the
United States is materially retarded,
by reason of imports of that merchandise or by reason of sales
(or the likelihood of sales) of that merchandise for
importation,
then there shall be imposed upon such merchandise a countervailing
duty, in addition to any other duty imposed, equal to the amount of the
net countervailable subsidy. For purposes of this subsection and
section 705(b)(1), a reference to the sale of merchandise includes the
entering into of any leasing arrangement regarding the merchandise that
is equivalent to the sale of the merchandise.
``(b) Subsidies Agreement Country.--For purposes of this title, the
term `Subsidies Agreement country' means--
``(1) a WTO member country,
``(2) a country which the President has determined has
assumed obligations with respect to the United States which are
substantially equivalent to the obligations under the Subsidies
Agreement, or
``(3) a country with respect to which the President
determines that--
``(A) there is an agreement in effect between the
United States and that country which--
``(i) was in force on the date of the
enactment of the Uruguay Round Agreements Act,
and
``(ii) requires unconditional most-favored-
nation treatment with respect to articles
imported into the United States, and
``(B) the agreement described in subparagraph (A)
does not expressly permit--
``(i) actions required or permitted by the
GATT 1947 or GATT 1994, as defined in section
2(1) of the Uruguay Round Agreements Act, or
required by the Congress, or
``(ii) nondiscriminatory prohibitions or
restrictions on importation which are designed
to prevent deceptive or unfair practices.
``(c) Countervailing Duty Investigations Involving Imports Not
Entitled to a Material Injury Determination.--In the case of any
article or merchandise imported from a country which is not a Subsidies
Agreement country--
``(1) no determination by the Commission under section
703(a), 704, or 705(b) shall be required,
``(2) an investigation may not be suspended under section
704(c) or 704(l),
``(3) no determination as to the presence of critical
circumstances shall be made under section 703(e) or 705(a)(2),
``(4) section 706(c) shall not apply,
``(5) any reference to a determination described in
paragraph (1) or (3), or to the suspension of an investigation
under section 704(c) or 704(l), shall be disregarded, and
``(6) section 751(c) shall not apply.''.
SEC. 263. DE MINIMIS COUNTERVAILABLE SUBSIDY.
(a) Preliminary Determinations.--Section 703(b) (19 U.S.C.
1671b(b)) is amended by adding at the end the following new paragraph:
``(4) De minimis countervailable subsidy.--
``(A) General rule.--In making a determination
under this subsection, the administering authority
shall disregard any de minimis countervailable subsidy.
For purposes of the preceding sentence, a
countervailable subsidy is de minimis if the
administering authority determines that the aggregate
of the net countervailable subsidies is less than 1
percent ad valorem or the equivalent specific rate for
the subject merchandise.
``(B) Exception for developing countries.--In the
case of subject merchandise imported from a Subsidies
Agreement country (other than a country to which
subparagraph (C) applies) designated by the Trade
Representative as a developing country in accordance
with section 771(36), a countervailable subsidy is de
minimis if the administering authority determines that
the aggregate of the net countervailable subsidies does
not exceed 2 percent ad valorem or the equivalent
specific rate for the subject merchandise.
``(C) Certain other developing countries.--In the
case of subject merchandise imported from a Subsidies
Agreement country that is--
``(i) a least developed country, as
determined by the Trade Representative in
accordance with section 771(36), or
``(ii) a developing country with respect to
which the Trade Representative has notified the
administering authority that the country has
eliminated its export subsidies on an expedited
basis within the meaning of Article 27.11 of
the Subsidies Agreement,
subparagraph (B) shall be applied by substituting `3
percent' for `2 percent'.
``(D) Limitations on application of subparagraph
(c).--
``(i) In general.--In the case of a country
described in subparagraph (C)(i), the
provisions of subparagraph (C) shall not apply
after the date that is 8 years after the date
the WTO Agreement enters into force.
``(ii) Special rule for subparagraph
(C)(ii) countries.--In the case of a country
described in subparagraph (C)(ii), the
provisions of subparagraph (C) shall not apply
after the earlier of--
``(I) the date that is 8 years
after the date the WTO Agreement enters
into force, or
``(II) the date on which the Trade
Representative notifies the
administering authority that such
country is providing an export
subsidy.''.
(b) Final Determinations.--Section 705(a) (19 U.S.C. 1671d(a)) is
amended by adding at the end the following new paragraph:
``(3) De minimis countervailable subsidy.--In making a
determination under this subsection, the administering
authority shall disregard any countervailable subsidy that is
de minimis as defined in section 703(b)(4).''.
SEC. 264. DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.
(a) Preliminary Determination.--Section 703(d) (19 U.S.C. 1673b(d))
is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraph (1), as amended by section
215(a)(1), as paragraph (2);
(3) by inserting ``and'' at the end of paragraph (2), as so
redesignated; and
(4) by inserting before such paragraph (2) the following
new paragraph:
``(1)(A) shall--
``(i) determine an estimated individual
countervailable subsidy rate for each exporter and
producer individually investigated, and, in accordance
with section 705(c)(5), an estimated all-others rate
for all exporters and producers not individually
investigated and for new exporters and producers within
the meaning of section 751(a)(2)(B), or
``(ii) if section 777A(e)(2)(B) applies, determine
a single estimated country-wide subsidy rate,
applicable to all exporters and producers, and
``(B) shall order the posting of a cash deposit, bond, or
other security, as the administering authority deems
appropriate, for each entry of the subject merchandise in an
amount based on the estimated individual countervailable
subsidy rate, the estimated all-others rate, or the estimated
country-wide subsidy rate, whichever is applicable,''.
(b) Final Determination.--
(1) In general.--Section 705(c)(1) (19 U.S.C. 1671d(c)(1))
is amended--
(A) in subparagraph (B)--
(i) by redesignating such subparagraph as
subparagraph (C); and
(ii) by striking ``under paragraphs (1) and
(2)'' and all that follows through ``security''
and inserting ``the suspension of liquidation
under paragraph (2) of section 703(d)'';
(B) by striking ``and'' at the end of subparagraph
(A); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B)(i) the administering authority shall--
``(I) determine an estimated individual
countervailable subsidy rate for each exporter
and producer individually investigated, and, in
accordance with paragraph (5), an estimated
all-others rate for all exporters and producers
not individually investigated and for new
exporters and producers within the meaning of
section 751(a)(2)(B), or
``(II) if 777A(e)(2)(B) applies, determine
a single estimated country-wide subsidy rate,
applicable to all exporters and producers,
``(ii) shall order the posting of a cash deposit,
bond, or other security, as the administering authority
deems appropriate, for each entry of the subject
merchandise in an amount based on the estimated
individual countervailable subsidy rate, the estimated
all-others rate, or the estimated country-wide subsidy
rate, whichever is applicable, and''.
(2) Method for determining countervailable subsidy rate.--
Section 705(c) (19 U.S.C. 1671d(c)) is amended by adding at the
end the following new paragraph:
``(5) Method for determining the all-others rate and the
country-wide subsidy rate.--
``(A) All-others rate.--
``(i) General rule.--For purposes of this
subsection and section 703(d), the all-others
rate shall be an amount equal to the weighted
average countervailable subsidy rates
established for exporters and producers
individually investigated, excluding any zero
and de minimis countervailable subsidy rates,
and any rates determined entirely under section
776.
``(ii) Exception.--If the countervailable
subsidy rates established for all exporters and
producers individually investigated are zero or
de minimis rates, or are determined entirely
under section 776, the administering authority
may use any reasonable method to establish an
all-others rate for exporters and producers not
individually investigated, including averaging
the weighted average countervailable subsidy
rates determined for the exporters and
producers individually investigated.
``(B) Country-wide subsidy rate.--The administering
authority may calculate a single country-wide subsidy
rate, applicable to all exporters and producers, if the
administering authority limits its examination pursuant
to section 777A(e)(2)(B). The estimated country-wide
rate determined under section 703(d)(1)(A)(ii) or
paragraph (1)(B)(i)(II) of this subsection shall be
based on industry-wide data regarding the use of
subsidies determined to be countervailable.''.
(c) Technical and Conforming Amendments.--
(1) Section 703(b)(2) is amended--
(A) by striking ``subsection (b)(1)'' and inserting
``paragraph (1)'',
(B) by striking ``subsection 702(b)(3)'' and
inserting ``section 702(b)(3)'',
(C) by striking ``subsection 703(b)(1)'' and
inserting ``paragraph (1)'', and
(D) by striking ``section 703(c)'' and inserting
``subsection (c) of this section''.
(2) Section 703(e)(2) is amended by striking ``subsection
(d)(1)'' and inserting ``subsection (d)(2)''.
(3) Section 704(f)(2)(A) is amended--
(A) in clause (i), by striking ``section
703(d)(1)'' and inserting ``section 703(d)(2)''; and
(B) in clause (iii), by striking ``section
703(d)(1)'' and inserting ``section 703(d)(1)(B)''.
(4) Section 704(f)(2)(B) is amended--
(A) by striking ``section 703(d)(1)'' and inserting
``section 703(d)(2)''; and
(B) by striking ``section 703(d)(2)'' and inserting
``section 703(d)(1)(B)''.
(5) Section 704(h)(3) is amended--
(A) in subparagraph (A), by striking ``section
703(d)(1)'' and inserting ``section 703(d)(2)''; and
(B) in subparagraph (B), by striking ``section
703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
(6) Section 704(i)(1)(A) is amended by striking ``section
703(d)(1)'' and inserting ``section 703(d)(2)''.
(7) Section 705(c)(2) is amended--
(A) in subparagraph (A), by striking ``section
703(d)(1)'' and inserting ``section 703(d)(2)''; and
(B) in subparagraph (B), by striking ``section
703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
(8) Section 705(c)(3)(B) is amended by striking ``section
703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
(9) Section 706(b)(1) is amended by striking ``section
703(d)(1)'' each place it appears and inserting ``section
703(d)(2)''.
(10) Section 707(a) is amended--
(A) by striking ``section 703(d)(2)'' and inserting
``section 703(d)(1)(B)'', and
(B) by striking ``Section 703(d)(2)'' in the
heading and inserting ``Section 703(d)(1)(B)''.
(11) Section 708 is amended by striking ``section
703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
SEC. 265. ASSESSMENT OF COUNTERVAILING DUTY.
Section 706(a) (19 U.S.C. 1671e(a)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
SEC. 266. NATURE OF COUNTERVAILABLE SUBSIDY.
Section 771(7)(E)(i) (19 U.S.C. 1677(7)(E)(i)) is amended to read
as follows:
``(i) Nature of countervailable subsidy.--
In determining whether there is a threat of
material injury, the Commission shall consider
information provided to it by the administering
authority regarding the nature of the
countervailable subsidy granted by a foreign
country (particularly whether the
countervailable subsidy is a subsidy described
in Article 3 or 6.1 of the Subsidies Agreement)
and the effects likely to be caused by the
countervailable subsidy.''.
SEC. 267. DEFINITION OF DEVELOPING AND LEAST-DEVELOPED COUNTRY.
Section 771 (19 U.S.C. 1677), as amended, is amended by adding at
the end the following new paragraph:
``(36) Developing and least developed country.--
``(A) Developing country.--The term `developing
country' means a country designated as a developing
country by the Trade Representative.
``(B) Least developed country.--The term `least
developed country' means a country which the Trade
Representative determines is--
``(i) a country referred to as a least
developed country within the meaning of
paragraph (a) of Annex VII to the Subsidies
Agreement, or
``(ii) any other country listed in Annex
VII to the Subsidies Agreement, but only if the
country has a per capita gross national product
of less than $1,000 per annum as measured by
the most recent data available from the World
Bank.
``(C) Publication of list.--The Trade
Representative shall publish in the Federal Register,
and update as necessary, a list of--
``(i) developing countries that have
eliminated their export subsidies on an
expedited basis within the meaning of Article
27.11 of the Subsidies Agreement, and
``(ii) countries determined by the Trade
Representative to be least developed or
developing countries.
``(D) Factors to consider.--In determining whether
a country is a developing country under subparagraph
(A), the Trade Representative shall consider such
economic, trade, and other factors which the Trade
Representative considers appropriate, including the
level of economic development of such country (the
assessment of which shall include a review of the
country's per capita gross national product) and the
country's share of world trade.
``(E) Limitation on designation.--A determination
that a country is a developing or least developed
country pursuant to this paragraph shall be for
purposes of this title only and shall not affect the
determination of a country's status as a developing or
least developed country with respect to any other
law.''.
SEC. 268. UPSTREAM SUBSIDIES.
Section 771A(a) (19 U.S.C. 1677-1(a)) is amended--
(1) by striking the matter preceding paragraph (1) and
paragraph (1) and inserting the following:
``(a) Definition.--The term `upstream subsidy' means any
countervailable subsidy, other than an export subsidy, that--
``(1) is paid or bestowed by an authority (as defined in
section 771(5)) with respect to a product (hereafter in this
section referred to as an `input product') that is used in the
same country as the authority in the manufacture or production
of merchandise which is the subject of a countervailing duty
proceeding;'', and
(2) in the flush sentence at the end thereof, by inserting
``countervailable'' before ``subsidy''.
SEC. 269. DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.
(a) In General.--Section 777A (19 U.S.C. 1677f-1), as amended by
section 229, is amended by adding at the end the following new
subsection:
``(e) Determination of Countervailable Subsidy Rate.--
``(1) General rule.--In determining countervailable subsidy
rates under section 703(d), 705(c), or 751(a), the
administering authority shall determine an individual
countervailable subsidy rate for each known exporter or
producer of the subject merchandise.
``(2) Exception.--If the administering authority determines
that it is not practicable to determine individual
countervailable subsidy rates under paragraph (1) because of
the large number of exporters or producers involved in the
investigation or review, the administering authority may--
``(A) determine individual countervailable subsidy
rates for a reasonable number of exporters or producers
by limiting its examination to--
``(i) a sample of exporters or producers
that the administering authority determines is
statistically valid based on the information
available to the administering authority at the
time of selection, or
``(ii) exporters and producers accounting
for the largest volume of the subject
merchandise from the exporting country that the
administering authority determines can be
reasonably examined; or
``(B) determine a single country-wide subsidy rate
to be applied to all exporters and producers.
The individual countervailable subsidy rates determined under
subparagraph (A) shall be used to determine the all-others rate
under section 705(c)(5).''.
(b) Conforming Amendments.--
(1) The heading for section 777A, as amended by section
229, is amended by inserting ``and countervailable subsidy
rate'' after ``margin''.
(2) The table of contents for title VII is amended by
inserting ``; determination of weighted average dumping margin
and countervailable subsidy rate'' after ``averaging'' in the
item relating to section 777A.
SEC. 270. CONFORMING AMENDMENTS.
(a) Countervailable Subsidy.--
(1) Except as provided in paragraph (2), each of the
following sections is amended by striking ``subsidy'' each
place it appears in the text and in the heading and inserting
``countervailable subsidy'':
(A) Section 702(e) (19 U.S.C. 1671a(e)).
(B) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)).
(C) Section 703(b)(2) (19 U.S.C. 1671b(b)(2)).
(D) Section 703(c)(1)(B)(i)(I) (19 U.S.C.
1671b(c)(1)(B)(i)(I)).
(E) Section 704 (19 U.S.C. 1671c).
(F) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)).
(G) Section 705(a)(2) (19 U.S.C. 1671d(a)(2)).
(H) Section 706(a)(1) (19 U.S.C. 1671e(a)(1)).
(I) Section 761 (19 U.S.C. 1676).
(J) Section 762 (19 U.S.C. 1676a).
(K) Section 771A(b) (19 U.S.C. 1677-1(b)).
(L) Section 771A(c) (19 U.S.C. 1677-1(c)).
(M) Section 780(d)(1)(A)(ii) (19 U.S.C.
1677i(d)(1)(A)(ii)).
(N) Section 516A(a)(2)(B)(iv) (19 U.S.C.
1516a(a)(2)(B)(iv)).
(2)(A) The heading for section 704(b) (19 U.S.C. 1671c(b))
is amended by striking ``Subsidy'' and inserting
``Countervailable Subsidy''.
(B) The heading for section 771(A)(c) (19 U.S.C. 1677-1(c))
is amended by striking ``Subsidy'' and inserting
``Countervailable Subsidy''.
(b) Countervailable Subsidies.--
(1) Except as provided in paragraph (2), each of the
following sections is amended by striking ``subsidies'' each
place it appears in the text and in the heading and inserting
``countervailable subsidies'':
(A) Section 701(d) (19 U.S.C. 1671(d)).
(B) Section 703(c)(1)(B)(i)(III) (19 U.S.C.
1671b(c)(1)(B)(i)(III)).
(C) Section 761 (19 U.S.C. 1676).
(D) Section 771B (19 U.S.C. 1677-2).
(2) The heading for section 761(a) and section 771B (19
U.S.C. 1676(a) and 1677-2) are each amended by striking
``Subsidies'' and inserting ``Countervailable Subsidies''.
(c) Other Conforming Amendments.--
(1) The heading for section 704(b) (19 U.S.C. 1671c(b)) is
amended by striking ``Subsidized Merchandise'' and inserting
``Subject Merchandise''.
(2) Subparagraphs (C) and (D) of section 771(4) (19 U.S.C.
1677(4) (C) and (D)) are amended by striking ``subsidized or''
each place it appears and inserting ``or imports of merchandise
benefiting from a countervailable subsidy'' after ``imports''.
(3) Section 771A (19 U.S.C. 1677-1), as amended, is amended
in subsection (c), by striking ``subsidization'' and inserting
``the countervailable subsidy''.
(4) The table of contents for title VII is amended--
(A) in the item relating to section 771B, by
inserting ``countervailable'' before ``subsidies'', and
(B) in the item relating to section 775, by
striking ``Subsidy'' and inserting ``Countervailable
subsidy''.
(d) Subsidies Agreement.--Section 702(e) (19 U.S.C. 1671a(e)) is
amended by striking ``Agreement'' and inserting ``Subsidies
Agreement''.
(e) Subsidies Agreement and Agreement on Agriculture.--Section
771(8) (19 U.S.C. 1677(8)) is amended to read as follows:
``(8) Subsidies agreement; agreement on agriculture.--
``(A) Subsidies agreement.--The term `Subsidies
Agreement' means the Agreement on Subsidies and
Countervailing Measures referred to in section
101(d)(12) of the Uruguay Round Agreements Act.
``(B) Agreement on agriculture.--The term
`Agreement on Agriculture' means the Agreement on
Agriculture referred to in section 101(d)(2) of the
Uruguay Round Agreements Act.''.
PART 3--SECTION 303 INJURY INVESTIGATIONS
SEC. 271. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CERTAIN SECTION
303 COUNTERVAILING DUTY ORDERS AND INVESTIGATIONS.
(a) In General.--Chapter 1 of subtitle C of title VII, as amended,
is amended by inserting after section 752 the following new section:
``SEC. 753. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CERTAIN SECTION
303 COUNTERVAILING DUTY ORDERS AND INVESTIGATIONS.
``(a) In General.--
``(1) Investigation by the commission upon request.--In the
case of a countervailing duty order described in paragraph (2),
which--
``(A) applies to merchandise that is the product of
a Subsidies Agreement country, and
``(B)(i) is in effect on the date on which such
country becomes a Subsidies Agreement country, or
``(ii) is issued on a date that is after the date
described in clause (i) pursuant to a court order in an
action brought under section 516A,
the Commission, upon receipt of a request from an interested
party described in section 771(9) (C), (D), (E), (F), or (G)
for an injury investigation with respect to such order, shall
initiate an investigation and shall determine whether an
industry in the United States is likely to be materially
injured by reason of imports of the subject merchandise if the
order is revoked.
``(2) Description of countervailing duty orders.--A
countervailing duty order described in this paragraph is an
order issued under section 303 with respect to which the
requirement of an affirmative determination of material injury
under section 303(a)(2) was not applicable at the time such
order was issued.
``(3) Requirements of request for investigation.--A request
for an investigation under this subsection shall be submitted--
``(A) in the case of an order described in
paragraph (1)(B)(i), within 6 months after the date on
which the country described in paragraph (1)(A) becomes
a Subsidies Agreement country, or
``(B) in the case of an order described in
paragraph (1)(B)(ii), within 6 months after the date
the order is issued.
``(4) Suspension of liquidation.--With respect to entries
of subject merchandise made on or after--
``(A) in the case of an order described in
paragraph (1)(B)(i), the date on which the country
described in paragraph (1)(A) becomes a Subsidies
Agreement country, or
``(B) in the case of an order described in
paragraph (1)(B)(ii), the date on which the order is
issued,
liquidation shall be suspended at the cash deposit rate in
effect on the date described in subparagraph (A) or (B)
(whichever is applicable).
``(b) Investigation Procedure and Schedule.--
``(1) Commission procedure.--
``(A) In general.--Except as otherwise provided in
this section, the provisions of this title regarding
evidence in and procedures for investigations conducted
under subtitle A shall apply to investigations
conducted by the Commission under this section.
``(B) Time for commission determination.--Except as
otherwise provided in subparagraph (C), the Commission
shall issue its determination under subsection (a)(1),
to the extent possible, not later than 1 year after the
date on which the investigation is initiated under this
section.
``(C) Special rule to permit administrative
flexibility.--In the case of requests for
investigations received under this section within 1
year after the date on which the WTO Agreement enters
into force with respect to the United States, the
Commission may, after consulting with the administering
authority, initiate its investigations in a manner that
results in determinations being made in all such
investigations during the 4-year period beginning on
such date.
``(2) Net countervailable subsidy; nature of subsidy.--
``(A) Net countervailable subsidy.--The
administering authority shall provide to the Commission
the net countervailable subsidy that is likely to
prevail if the order which is the subject of the
investigation is revoked. The administering authority
normally shall choose a net countervailable subsidy
that was determined under section 705 or subsection (a)
or (b)(1) of section 751. If the Commission considers
the magnitude of the net countervailable subsidy in
making its determination under this section, the
Commission shall use the net countervailable subsidy
provided by the administering authority.
``(B) Nature of subsidy.--The administering
authority shall inform the Commission of, and the
Commission, in making its determination under this
section, shall consider, the nature of the
countervailable subsidy and whether the countervailable
subsidy is a subsidy described in Article 3 or Article
6.1 of the Subsidies Agreement.
``(3) Effect of commission determination.--
``(A) Affirmative determination.--Upon being
notified by the Commission that it has made an
affirmative determination under subsection (a)(1)--
``(i) the administering authority shall
order the termination of the suspension of
liquidation required pursuant to subsection
(a)(4), and
``(ii) the countervailing duty order shall
remain in effect until revoked, in whole or in
part, under section 751(d).
For purposes of section 751(c), a countervailing duty
order described in this section shall be treated as
issued on the date of publication of the Commission's
determination under this subsection.
``(B) Negative determination.--
``(i) In general.--Upon being notified by
the Commission that it has made a negative
determination under subsection (a)(1), the
administering authority shall revoke the
countervailing duty order, and shall refund,
with interest, any estimated countervailing
duties collected during the period liquidation
was suspended pursuant to subsection (a)(4).
``(ii) Limitation on negative
determination.--A determination by the
Commission that revocation of the order is not
likely to result in material injury to an
industry by reason of imports of the subject
merchandise shall not be based, in whole or in
part, on any export taxes, duties, or other
charges levied on the export of the subject
merchandise to the United States that were
specifically intended to offset the
countervailable subsidy received.
``(4) Countervailing duty orders with respect to which no
request for injury investigation is made.--If, with respect to
a countervailing duty order described in subsection (a), a
request for an investigation is not made within the time
required by subsection (a)(3), the Commission shall notify the
administering authority that a negative determination has been
made under subsection (a) and the provisions of paragraph
(3)(B) shall apply with respect to the order.
``(c) Pending and Suspended Countervailing Duty Investigations.--
If, on the date on which a country becomes a Subsidies Agreement
country, there is a countervailing duty investigation in progress or
suspended under section 303 that applies to merchandise which is a
product of that country and with respect to which the requirement of an
affirmative determination of material injury under section 303(a)(2)
was not applicable at the time the investigation was initiated, the
Commission shall--
``(1) in the case of an investigation in progress, make a
final determination under section 705(b) within 75 days after
the date of an affirmative final determination, if any, by the
administering authority,
``(2) in the case of a suspended investigation to which
section 704(i)(1)(B) applies, make a final determination under
section 705(b) within 120 days after receiving notice from the
administering authority of the resumption of the investigation
pursuant to section 704(i), or within 45 days after the date of
an affirmative final determination, if any, by the
administering authority, whichever is later, or
``(3) in the case of a suspended investigation to which
section 704(i)(1)(C) applies, treat the countervailing duty
order issued pursuant to such section as if it were--
``(A) an order issued under subsection
(a)(1)(B)(ii) for purposes of subsection (a)(3); and
``(B) an order issued under subsection (a)(1)(B)(i)
for purposes of subsection (a)(4).
``(d) Publication in Federal Register.--The administering authority
or the Commission, as the case may be, shall publish in the Federal
Register a notice of the initiation of any investigation, and a notice
of any determination or revocation, made pursuant to this section.
``(e) Request for Simultaneous Expedited Review Under Section
751(c).--
``(1) General rule.--
``(A) Requests for reviews.--Notwithstanding
section 751(c)(6)(A) and except as provided in
subparagraph (B), an interested party may request a
review of an order under section 751(c) at the same
time the party requests an investigation under
subsection (a), if the order involves the same or
comparable subject merchandise. Upon receipt of such
request, the administering authority, after consulting
with the Commission, shall initiate a review of the
order under section 751(c). The Commission shall
combine such review with the investigation under this
section.
``(B) Exception.--If the administering authority
determines that the interested party who requested an
investigation under this section is a related party or
an importer within the meaning of section 771(4)(B),
the administering authority may decline a request by
such party to initiate a review of an order under
section 751(c) which involves the same or comparable
subject merchandise.
``(2) Cumulation.--If a review under section 751(c) is
initiated under paragraph (1), such review shall be treated as
having been initiated on the same day as the investigation
under this section, and the Commission may, in accordance with
section 771(7)(G), cumulatively assess the volume and effect of
imports of the subject merchandise from all countries with
respect to which such investigations are treated as initiated
on the same day.
``(3) Time and procedure for commission determination.--
The Commission shall render its determination in the
investigation conducted under this section at the same time as
the Commission's determination is made in the review under
section 751(c) that is initiated pursuant to this subsection.
The Commission shall in all other respects apply the procedures
and standards set forth in section 751(c) to such section
751(c) reviews.''.
(b) Review of Determinations.--Section 516A(a)(2) (19 U.S.C.
1516a(a)(2)) is amended--
(1) in subparagraph (A)(i)(I), by striking ``or (v)'' and
inserting ``(v), or (viii)'', and
(2) in subparagraph (B), by adding at the end the
following:
``(viii) A determination by the Commission
under section 753(a)(1).''.
(c) Conforming Amendment.--The table of contents for title VII, as
amended, is amended by inserting after the item relating to section 752
the following new item:
``Sec. 753. Special rules for injury investigations for certain section
303 countervailing duty orders and
investigations.''.
PART 4--ENFORCEMENT OF UNITED STATES RIGHTS UNDER THE SUBSIDIES
AGREEMENT
SEC. 281. SUBSIDIES ENFORCEMENT.
(a) Assistance Regarding Multilateral Subsidy Remedies.--The
administering authority shall provide information to the public upon
request, and, to the extent feasible, assistance and advice to
interested parties concerning--
(1) remedies and benefits available under relevant
provisions of the Subsidies Agreement, and
(2) the procedures relating to such remedies and benefits.
(b) Prohibited Subsidies.--
(1) Notification of trade representative.--If the
administering authority determines pursuant to title VII of the
Tariff Act of 1930 that a class or kind of merchandise is
benefiting from a subsidy which is prohibited under Article 3
of the Subsidies Agreement, the administering authority shall
notify the Trade Representative and shall provide the Trade
Representative with the information upon which the
administering authority based its determination.
(2) Request by interested party regarding prohibited
subsidy.--An interested party may request that the
administering authority determine if there is reason to believe
that merchandise produced in a WTO member country is benefiting
from a subsidy which is prohibited under Article 3 of the
Subsidies Agreement. The request shall contain such information
as the administering authority may require to support the
allegations contained in the request. If the administering
authority, after analyzing the request and other information
reasonably available to the administering authority, determines
that there is reason to believe that such merchandise is
benefiting from a subsidy which is prohibited under Article 3
of the Subsidies Agreement, the administering authority shall
so notify the Trade Representative, and shall include
supporting information with the notification.
(c) Subsidies Actionable Under the Agreement.--
(1) In general.--If the administering authority determines
pursuant to title VII of the Tariff Act of 1930 that a class or
kind of merchandise is benefiting from a subsidy described in
Article 6.1 of the Subsidies Agreement, the administering
authority shall notify the Trade Representative, and shall
provide the Trade Representative with the information upon
which the administering authority based its determination.
(2) Request by interested party regarding adverse
effects.--An interested party may request the administering
authority to determine if there is reason to believe that a
subsidy which is actionable under the Subsidies Agreement is
causing adverse effects. The request shall contain such
information as the administering authority may require to
support the allegations contained in the request. At the
request of the administering authority, the Commission shall
assist the administering authority in analyzing the information
pertaining to the existence of such adverse effects. If the
administering authority, after analyzing the request and other
information reasonably available to the administering
authority, determines that there is reason to believe that a
subsidy which is actionable under the Subsidies Agreement is
causing adverse effects, the administering authority shall so
notify the Trade Representative, and shall include supporting
information with the notification.
(d) Initiation of Section 301 Investigation.--On the basis of the
notification and information provided by the administering authority
pursuant to subsection (b) or (c), such other information as the Trade
Representative may have or obtain, and where applicable, after
consultation with an interested party referred to in subsection (b)(2)
or (c)(2), the Trade Representative shall, unless such interested party
objects, determine as expeditiously as possible, in accordance with the
procedures in section 302(b)(1) of the Trade Act of 1974 (19 U.S.C.
2412(b)(1)), whether to initiate an investigation pursuant to title III
of that Act (19 U.S.C. 2411 et seq.). At the request of the Trade
Representative, the administering authority and the Commission shall
assist the Trade Representative in an investigation initiated pursuant
to this subsection.
(e) Nonactionable Subsidies.--
(1) Compliance with article 8 of the subsidies agreement.--
(A) Monitoring.--In order to monitor whether a
subsidy meets the conditions and criteria described in
Article 8.2 of the Subsidies Agreement and is
nonactionable, the Trade Representative shall provide
the administering authority on a timely basis with any
information submitted or report made pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement regarding
a notified subsidy program. The administering authority
shall review such information and reports, and where
appropriate, shall recommend to the Trade
Representative that the Trade Representative seek
pursuant to Article 8.3 or 8.4 of the Subsidies
Agreement additional information regarding the notified
subsidy program or a subsidy granted pursuant to the
notified subsidy program. If the administering
authority has reason to believe that a violation of
Article 8 of the Subsidies Agreement exists, the
administering authority shall so notify the Trade
Representative, and shall include supporting
information with the notification.
(B) Request by interested party regarding violation
of article 8.--An interested party may request the
administering authority to determine if there is reason
to believe that a violation of Article 8 of the
Subsidies Agreement exists. The request shall contain
such information as the administering authority may
require to support the allegations contained in the
request. If the administering authority, after
analyzing the request and other information reasonably
available to the administering authority, determines
that additional information is needed, the
administering authority shall recommend to the Trade
Representative that the Trade Representative seek,
pursuant to Article 8.3 or 8.4 of the Subsidies
Agreement, additional information regarding the
particular notified subsidy program or a subsidy
granted pursuant to the notified subsidy program. If
the administering authority determines that there is
reason to believe that a violation of Article 8 of the
Subsidies Agreement exists, the administering authority
shall so notify the Trade Representative, and shall
include supporting information with the notification.
(C) Action by trade representative.--
(i) If the Trade Representative, on the
basis of the notification and information
provided by the administering authority
pursuant to subparagraph (A) or (B), and such
other information as the Trade Representative
may have or obtain, and after consulting with
the interested party referred to in
subparagraph (B) and appropriate domestic
industries, determines that there is reason to
believe that a violation of Article 8 of the
Subsidies Agreement exists, the Trade
Representative shall invoke the procedures of
Article 8.4 or 8.5 of the Subsidies Agreement.
(ii) For purposes of clause (i), the Trade
Representative shall determine that there is
reason to believe that a violation of Article 8
exists in any case in which the Trade
Representative determines that a notified
subsidy program or a subsidy granted pursuant
to a notified subsidy program does not satisfy
the conditions and criteria required for a
nonactionable subsidy program under this Act,
the Subsidies Agreement, and the statement of
administrative action approved under section
101(a).
(D) Notification of administering authority.--The
Trade Representative shall notify the administering
authority whenever a violation of Article 8 of the
Subsidies Agreement has been found to exist pursuant to
Article 8.4 or 8.5 of that Agreement.
(2) Serious adverse effects.--
(A) Request by interested party.--An interested
party may request the administering authority to
determine if there is reason to believe that serious
adverse effects resulting from a program referred to in
Article 8.2 of the Subsidies Agreement exist. The
request shall contain such information as the
administering authority may require to support the
allegations contained in the request.
(B) Action by administering authority.--Within 90
days after receipt of the request described in
subparagraph (A), the administering authority, after
analyzing the request and other information reasonably
available to the administering authority, shall
determine if there is reason to believe that serious
adverse effects resulting from a program referred to in
Article 8.2 of the Subsidies Agreement exist. If the
determination of the administering authority is
affirmative, it shall so notify the Trade
Representative and shall include supporting information
with the notification. The Commission shall assist the
administering authority in analyzing the information
pertaining to the existence of such serious adverse
effects if the administering authority requests the
Commission's assistance. If the subsidy program that is
alleged to result in serious adverse effects has been
the subject of a countervailing duty investigation or
review under subtitle A or C of title VII of the Tariff
Act of 1930, the administering authority shall take
into account the determinations made by the
administering authority and the Commission in such
investigation or review and the administering authority
shall complete its analysis as expeditiously as
possible.
(C) Action by trade representative.--The Trade
Representative, on the basis of the notification and
information provided by the administering authority
pursuant to subparagraph (B), and such other
information as the Trade Representative may have or
obtain, shall determine as expeditiously as possible,
but not later than 30 days after receipt of the
notification provided by the administering authority,
if there is reason to believe that serious adverse
effects exist resulting from the subsidy program which
is the subject of the administering authority's
notification. The Trade Representative shall make an
affirmative determination regarding the existence of
such serious adverse effects unless the Trade
Representative finds that the notification of the
administering authority is not supported by the facts.
(D) Consultations.--If the Trade Representative
determines that there is reason to believe that serious
adverse effects resulting from the subsidy program
exist, the Trade Representative, unless the interested
party referred to in subparagraph (A) objects, shall
invoke the procedures of Article 9 of the Subsidies
Agreement, and shall request consultations pursuant to
Article 9.2 of the Subsidies Agreement with respect to
such serious adverse effects. If such consultations
have not resulted in a mutually acceptable solution
within 60 days after the request is made for such
consultations, the Trade Representative shall refer the
matter to the Subsidies Committee pursuant to Article
9.3 of the Subsidies Agreement.
(E) Determination by subsidies committee.--If the
Trade Representative determines that--
(i) the Subsidies Committee has been
prevented from making an affirmative
determination regarding the existence of
serious adverse effects under Article 9 of the
Subsidies Agreement by reason of the refusal of
the WTO member country with respect to which
the consultations have been invoked to join in
an affirmative consensus--
(I) that such serious adverse
effects exist, or
(II) regarding a recommendation to
such WTO member country to modify the
subsidy program in such a way as to
remove the serious adverse effects, or
(ii) the Subsidies Committee has not
presented its conclusions regarding the
existence of such serious adverse effects
within 120 days after the date the matter was
referred to it, as required by Article 9.4 of
the Subsidies Agreement,
the Trade Representative shall, within 30 days after
such determination, make a determination under section
304(a)(1) of the Trade Act of 1974 (19 U.S.C.
2414(a)(1)) regarding what action to take under section
301(a)(1)(A) of that Act.
(F) Noncompliance with committee recommendation.--
In the event that the Subsidies Committee makes a
recommendation under Article 9.4 of the Subsidies
Agreement and the WTO member country with respect to
which such recommendation is made does not comply with
such recommendation within 6 months after the date of
the recommendation, the Trade Representative shall make
a determination under section 304(a)(1) of the Trade
Act of 1974 (19 U.S.C. 2414(a)(1)) regarding what
action to take under section 301(a) of that Act.
(f) Notification, Consultation, and Publication.--
(1) Notification of congress.--The Trade Representative
shall submit promptly to the Committee on Ways and Means of the
House of Representatives, the Committee on Finance of the
Senate, and other appropriate committees of the Congress any
information submitted or report made pursuant to Article 8.3 or
8.4 of the Subsidies Agreement regarding a notified subsidy
program.
(2) Publication in the federal register.--The administering
authority shall publish regularly in the Federal Register a
summary notice of any information submitted or report made
pursuant to Article 8.3 or 8.4 of the Subsidies Agreement
regarding notified subsidy programs.
(3) Consultations with congress and private sector.--The
Trade Representative and the administering authority promptly
shall consult with the committees referred to in paragraph (1),
and with interested representatives of the private sector,
regarding all information submitted or reports made pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement regarding a
notified subsidy program.
(4) Annual report.--Not later than February 1 of each year
beginning in 1996, the Trade Representative and the
administering authority shall issue a joint report to the
Congress detailing--
(A) the subsidies practices of major trading
partners of the United States, including subsidies that
are prohibited, are causing serious prejudice, or are
nonactionable, under the Subsidies Agreement, and
(B) the monitoring and enforcement activities of
the Trade Representative and the administering
authority during the preceding calendar year which
relate to subsidies practices.
(g) Cooperation of Other Agencies.--All agencies, departments, and
independent agencies of the Federal Government shall cooperate fully
with one another in carrying out the provisions of this section, and,
upon the request of the administering authority, shall furnish to the
administering authority all records, papers, and information in their
possession which relate to the requirements of this section.
(h) Definitions.--For purposes of this section--
(1) Adverse effects.--The term ``adverse effects'' has the
meaning given that term in Articles 5(a) and 5(c) of the
Subsidies Agreement.
(2) Administering authority.--The term ``administering
authority'' has the meaning given that term in section 771(1)
of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(4) Interested party.--The term ``interested party'' means
a party described in subparagraph (C), (D), (E), (F), or (G) of
section 771(9) of the Tariff Act of 1930 (19 U.S.C. 1677(9)
(A), (C), (D), (E), (F), or (G)).
(5) Nonactionable subsidy.--The term ``nonactionable
subsidy'' means a subsidy described in Article 8.1(b) of the
Subsidies Agreement.
(6) Notified subsidy program.--The term ``notified subsidy
program'' means a subsidy program which has been notified
pursuant to Article 8.3 of the Subsidies Agreement.
(7) Serious adverse effects.--The term ``serious adverse
effects'' has the meaning given that term in Article 9.1 of the
Subsidies Agreement.
(8) Subsidies agreement.--The term ``Subsidies Agreement''
means the Agreement on Subsidies and Countervailing Measures
described in section 771(8) of the Tariff Act of 1930 (19
U.S.C. 1677(8)).
(9) Subsidies committee.--The term ``Subsidies Committee''
means the committee established pursuant to Article 24 of the
Subsidies Agreement.
(10) Subsidy.--The term ``subsidy'' has the meaning given
that term in Article 1 of the Subsidies Agreement.
(11) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
(12) Violation of article 8.--The term ``violation of
Article 8'' means the failure of a notified subsidy program or
an individual subsidy granted pursuant to a notified subsidy
program to meet the applicable conditions and criteria
described in Article 8.2 of the Subsidies Agreement.
(i) Treatment of Proprietary Information.--Notwithstanding any
other provision of law, the administering authority may provide the
Trade Representative with a copy of proprietary information submitted
to, or obtained by, the administering authority that the Trade
Representative considers relevant in carrying out its responsibilities
under this part. The Trade Representative shall protect from public
disclosure proprietary information obtained from the administering
authority under this part.
SEC. 282. REVIEW OF SUBSIDIES AGREEMENT.
(a) General Objectives.--The general objectives of the United
States under this part are--
(1) to ensure that parts II and III of the Agreement on
Subsidies and Countervailing Measures referred to in section
101(d)(12) (hereafter in this section referred to as the
``Subsidies Agreement'') are effective in disciplining the use
of subsidies and in remedying the adverse effects of subsidies,
and
(2) to ensure that part IV of the Subsidies Agreement does
not undermine the benefits derived from any other part of that
Agreement.
(b) Specific Objective.--The specific objective of the United
States under this part shall be to create a mechanism which will
provide for an ongoing review of the operation of part IV of the
Subsidies Agreement.
(c) Sunset of Noncountervailable Subsidies Provisions.--
(1) In general.--Subparagraphs (B), (C), (D), and (E) of
section 771(5B) of the Tariff Act of 1930 shall cease to apply
as provided in subparagraph (G)(i) of such section, unless,
before the date referred to in such subparagraph (G)(i)--
(A) the Subsidies Committee determines to extend
Articles 6.1, 8, and 9 of the Subsidies Agreement as in
effect on the date on which the Subsidies Agreement
enters into force or in a modified form, in accordance
with Article 31 of such Agreement,
(B) the President consults with the Congress in
accordance with paragraph (2), and
(C) an implementing bill is submitted and enacted
into law in accordance with paragraphs (3) and (4).
(2) Consultation with congress before subsidies committee
agrees to extend.--Before a determination is made by the
Subsidies Committee to extend Articles 6.1, 8, and 9 of the
Subsidies Agreement, the President shall consult with the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate regarding such
extension.
(3) Implementation of extension.--
(A) Notification and submission.--Any extension of
subparagraphs (B), (C), (D), and (E) of section 771(5B)
of the Tariff Act of 1930 shall take effect if (and
only if)--
(i) after the Subsidies Committee
determines to extend Articles 6.1, 8, and 9 of
the Subsidies Agreement, the President submits
to the committees referred to in paragraph (2)
a copy of the document describing the terms of
such extension, together with--
(I) a draft of an implementing
bill,
(II) a statement of any
administrative action proposed to
implement the extension, and
(III) the supporting information
described in subparagraph (C); and
(ii) the implementing bill is enacted into
law.
(B) Implementing bill.--The implementing bill
referred to in subparagraph (A) shall contain only
those provisions that are necessary or appropriate to
implement an extension of the provisions of section
771(5B) (B), (C), (D), and (E) of the Tariff Act of
1930 as in effect on the day before the date of the
enactment of the implementing bill or as modified to
reflect the determination of the Subsidies Committee to
extend Articles 6.1, 8, and 9 of the Subsidies
Agreement.
(C) Supporting information.--The supporting
information required under subparagraph (A)(i)(III)
consists of--
(i) an explanation as to how the
implementing bill and proposed administrative
action will change or affect existing law; and
(ii) a statement regarding--
(I) how the extension serves the
interests of United States commerce,
and
(II) why the implementing bill and
proposed administrative action is
required or appropriate to carry out
the extension.
(4) Application of congressional ``fast track'' procedures
to implementing bill.--Section 151 of the Trade Act of 1974 (19
U.S.C. 2191) is amended--
(A) in subsection (b)(1)--
(i) by inserting ``, or with respect to an
extension described in section 282(c)(3) of the
Uruguay Round Agreements Act,'' after ``trade
agreements'',
(ii) by striking ``or section 1103(a)(1) of
the Omnibus Trade and Competitiveness Act of
1988'' and inserting ``, section 1103(a)(1) of
the Omnibus Trade and Competitiveness Act of
1988, or section 282 of the Uruguay Round
Agreements Act'', and
(iii) by inserting ``or such extension'' in
subparagraphs (A) and (C) after ``agreements''
each place it appears, and
(B) in subsection (c)(1)--
(i) by inserting ``or section 282 of the
Uruguay Round Agreements Act'' after ``section
102'', and
(ii) by inserting ``or extension'' after
``agreement'' each place it appears.
(5) Report by the trade representative.--Not later than the
date referred to in section 771 (5B) (G)(i) of the Tariff Act
of 1930, the Trade Representative shall submit to the Congress
a report setting forth the provisions of law which were enacted
to implement Articles 6.1, 8, and 9 of the Subsidies Agreement
and should be repealed or modified if such provisions are not
extended.
(d) Review of the Operation of the Subsidies Agreement.--The
Secretary of Commerce, in consultation with other appropriate
departments and agencies of the Federal Government, shall undertake an
ongoing review of the operation of the Subsidies Agreement. The review
shall address--
(1) the effectiveness of part II of the Subsidies Agreement
in disciplining the use of subsidies which are prohibited under
Article 3 of the Agreement,
(2) the effectiveness of part III and, in particular,
Article 6.1 of the Subsidies Agreement, in remedying the
adverse effects of subsidies which are actionable under the
Agreement, and
(3) the extent to which the provisions of part IV of the
Subsidies Agreement may have undermined the benefits derived
from other parts of the Agreement, and, in particular--
(A) the extent to which WTO member countries have
cooperated in reviewing and improving the operation of
part IV of the Subsidies Agreement,
(B) the extent to which the provisions of Articles
8.4 and 8.5 of the Subsidies Agreement have been
effective in identifying and remedying violations of
the conditions and criteria described in Article 8.2 of
the Agreement, and
(C) the extent to which the provisions of Article 9
of the Subsidies Agreement have been effective in
remedying the serious adverse effects of subsidy
programs described in Article 8.2 of the Agreement.
Not later than 4 years and 6 months after the date of the
enactment of this Act, the Secretary of Commerce shall submit
to the Congress a report on the review required under this
subsection.
SEC. 283. AMENDMENTS TO TITLE VII OF THE TARIFF ACT OF 1930.
(a) Preliminary Determination by Administering Authority.--Section
703(b) of the Tariff Act of 1930 (19 U.S.C. 1671b(b)), as amended, is
amended by adding at the end the following new paragraph:
``(5) Notification of article 8 violation.--If the only
subsidy under investigation is a subsidy with respect to which
the administering authority received notice from the Trade
Representative of a violation of Article 8 of the Subsidies
Agreement, paragraph (1) shall be applied by substituting `60
days' for `65 days'.''.
(b) Subsidy Practice Discovered During a Proceeding.--Section 775
of the Tariff Act of 1930 (19 U.S.C. 1677d) is amended to read as
follows:
``SEC. 775. COUNTERVAILABLE SUBSIDY PRACTICES DISCOVERED DURING A
PROCEEDING.
``If, in the course of a proceeding under this title, the
administering authority discovers a practice which appears to be a
countervailable subsidy, but was not included in the matters alleged in
a countervailing duty petition, or if the administering authority
receives notice from the Trade Representative that a subsidy or subsidy
program is in violation of Article 8 of the Subsidies Agreement, then
the administering authority--
``(1) shall include the practice, subsidy, or subsidy
program in the proceeding if the practice, subsidy, or subsidy
program appears to be a countervailable subsidy with respect to
the merchandise which is the subject of the proceeding, or
``(2) shall transfer the information (other than
confidential information) concerning the practice, subsidy, or
subsidy program to the library maintained under section
777(a)(1), if the practice, subsidy, or subsidy program appears
to be a countervailable subsidy with respect to any other
merchandise.''.
(c) Administrative Reviews.--Section 751 of the Tariff Act of 1930
(19 U.S.C. 1675), as amended, is amended by redesignating subsection
(g) as subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Reviews to Implement Results of Subsidies Enforcement
Proceeding.--
``(1) Violations of article 8 of the subsidies agreement.--
If--
``(A) the administering authority receives notice
from the Trade Representative of a violation of Article
8 of the Subsidies Agreement,
``(B) the administering authority has reason to
believe that merchandise subject to an existing
countervailing duty order or suspended investigation is
benefiting from the subsidy or subsidy program found to
have been in violation of Article 8 of the Subsidies
Agreement, and
``(C) no review pursuant to subsection (a)(1) is in
progress,
the administering authority shall conduct a review of the order
or suspended investigation to determine whether the subject
merchandise benefits from the subsidy or subsidy program found
to have been in violation of Article 8 of the Subsidies
Agreement. If the administering authority determines that the
subject merchandise is benefiting from the subsidy or subsidy
program, it shall make appropriate adjustments in the estimated
duty to be deposited or appropriate revisions to the terms of
the suspension agreement.
``(2) Withdrawal of subsidy or imposition of
countermeasures.--If the Trade Representative notifies the
administering authority that, pursuant to Article 4 or Article
7 of the Subsidies Agreement--
``(A)(i) the United States has imposed
countermeasures, and
``(ii) such countermeasures are based on the
effects in the United States of imports of merchandise
that is the subject of a countervailing duty order, or
``(B) a WTO member country has withdrawn a
countervailable subsidy provided with respect to
merchandise subject to a countervailing duty order,
the administering authority shall conduct a review to determine
if the amount of the estimated duty to be deposited should be
adjusted or the order should be revoked.
``(3) Expedited review.--The administering authority shall
conduct reviews under this subsection on an expedited basis,
and shall publish the results of such reviews in the Federal
Register.''.
Subtitle C--Effective Date
SEC. 291. EFFECTIVE DATE.
(a) In General.--Except as provided in section 261, the amendments
made by this title shall take effect on the date described in
subsection (b) and apply with respect to--
(1) investigations initiated--
(A) on the basis of petitions filed under section
702(b), 732(b), or 783(b) of the Tariff Act of 1930
after the date described in subsection (b), or
(B) by the administering authority under section
702(a) or 732(a) of such Act after such date,
(2) reviews initiated under section 751 of such Act--
(A) by the administering authority or the
Commission on their own initiative after such date, or
(B) pursuant to a request filed after such date,
(3) investigations initiated under section 753 of such Act
after such date,
(4) petitions filed under section 780 of such Act after
such date, and
(5) inquiries initiated under section 781 of such Act--
(A) by the administering authority on its own
initiative after such date, or
(B) pursuant to a request filed after such date.
(b) Date Described.--The date described in this subsection is the
date on which the WTO Agreement (as defined in section 2(9)) enters
into force with respect to the United States.
TITLE III--ADDITIONAL IMPLEMENTATION OF AGREEMENTS
Subtitle A--Safeguards
SEC. 301. INVESTIGATIONS, DETERMINATIONS, AND RECOMMENDATIONS BY
INTERNATIONAL TRADE COMMISSION.
(a) Treatment of Confidential Information.--Section 202(a)(8) of
the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended by adding at
the end the following: ``The Commission may request that parties
providing confidential business information furnish nonconfidential
summaries thereof or, if such parties indicate that the information in
the submission cannot be summarized, the reasons why a summary cannot
be provided. If the Commission finds that a request for confidentiality
is not warranted and if the party concerned is either unwilling to make
the information public or to authorize its disclosure in generalized or
summarized form, the Commission may disregard the submission.''.
(b) Administrative Protective Orders.--Section 202 of the Trade Act
of 1974 (19 U.S.C. 2252) is amended by adding at the end the following:
``(i) Limited Disclosure of Confidential Business Information Under
Protective Order..--The Commission shall promulgate regulations to
provide access to confidential business information under protective
order to authorized representatives of interested parties who are
parties to an investigation under this section.''.
(c) Notice of Proceedings.--Section 202(b) of the Trade Act of 1974
(19 U.S.C. 2252(b)) is amended by striking paragraphs (3) and (4) and
inserting the following:
``(3) The Commission shall publish notice of the
commencement of any proceeding under this subsection in the
Federal Register and shall, within a reasonable time
thereafter, hold public hearings at which the Commission shall
afford interested parties and consumers an opportunity to be
present, to present evidence, to comment on the adjustment
plan, if any, submitted under subsection (a), to respond to the
presentations of other parties and consumers, and otherwise to
be heard.''.
(d) Critical Circumstances.--
(1) In general.--Section 202(d)(2) of the Trade Act of 1974
(19 U.S.C. 2252(d)(2)) is amended to read as follows:
``(2)(A) When a petition filed under subsection (a) alleges
that critical circumstances exist and requests that provisional
relief be provided under this subsection with respect to
imports of the article identified in the petition, the
Commission shall, not later than 60 days after the petition
containing the request was filed, determine, on the basis of
available information, whether--
``(i) there is clear evidence that increased
imports (either actual or relative to domestic
production) of the article are a substantial cause of
serious injury, or the threat thereof, to the domestic
industry producing an article like or directly
competitive with the imported article; and
``(ii) delay in taking action under this chapter
would cause damage to that industry that would be
difficult to repair.
``(B) If the determinations under subparagraph (A)(i) and
(ii) are affirmative, the Commission shall find the amount or
extent of provisional relief that is necessary to prevent or
remedy the serious injury. In carrying out this subparagraph,
the Commission shall give preference to increasing or imposing
a duty on imports, if such form of relief is feasible and would
prevent or remedy the serious injury.
``(C) The Commission shall immediately report to the
President its determinations under subparagraph (A)(i) and (ii)
and, if the determinations are affirmative, the finding under
subparagraph (B).
``(D) Within 30 days after receiving a report from the
Commission under subparagraph (C) containing an affirmative
determination under subparagraph (A)(i) and (ii), the
President, if he considers provisional relief to be warranted
and after taking into account the finding of the Commission
under subparagraph (B), shall proclaim, for a period not to
exceed 200 days, such provisional relief that the President
considers necessary to prevent or remedy the serious injury.
Such relief shall take the form of an increase in, or the
imposition of, a duty on imports, if such form of relief is
feasible and would prevent or remedy the serious injury.''.
(2) Time limits for determinations.--Section 202 of the
Trade Act of 1974 (19 U.S.C. 2252) is amended--
(A) in subsection (b)(2)--
(i) in subparagraph (A) by inserting ``(180
days if the petition alleges that critical
circumstances exist)'' after ``120 days''; and
(ii) in subparagraph (B) by inserting
``(210 days if the petition alleges that
critical circumstances exist)'' after ``150
days''; and
(B) in subsection (f)(1) by inserting ``(240 days
if the petition alleges that critical circumstances
exist)'' after ``180 days''.
(3) Action by the president.--Section 203(a)(4) of the
Trade Act of 1974 (19 U.S.C. 2253(a)(4)) is amended--
(A) by striking ``The'' and inserting ``(A) Subject
to subparagraph (B), the'';
(B) by inserting after ``60 days'' the following:
``(50 days if the President has proclaimed provisional
relief under section 202(d)(2)(D) with respect to the
article concerned)''; and
(C) by striking ``; except that'' and all that
follows through ``received.'' and inserting a period
and the following:
``(B) If a supplemental report is requested under paragraph
(5), the President shall take action under paragraph (1) within
30 days after the supplemental report is received, except that,
in a case in which the President has proclaimed provisional
relief under section 202(d)(2)(D) with respect to the article
concerned, action by the President under paragraph (1) may not
be taken later than the 200th day after the provisional relief
was proclaimed.''.
(4) Conforming amendments.--Section 202(d) of the Trade Act
of 1974 (19 U.S.C. 2252(d)) is amended--
(A) in paragraph (3)--
(i) by striking ``(2)(B)'' and inserting
``(2)(D)''; and
(ii) by striking ``subsection (b)(1)'' and
inserting ``paragraph (2)(A)''; and
(B) in paragraph (4)(A)(i) by inserting ``or
(2)(D)'' after ``(1)(G)''.
(e) Factors in Making Determinations.--Section 202(c) of the Trade
Act of 1974 (19 U.S.C. 2252(c)) is amended--
(1) in paragraph (1)(B)(i) by inserting ``productivity,''
after ``wages,''; and
(2) in paragraph (6)--
(A) by amending subparagraph (A) to read as
follows:
``(A)(i) The term `domestic industry' means, with
respect to an article, the producers as a whole of the
like or directly competitive article or those producers
whose collective production of the like or directly
competitive article constitutes a major proportion of
the total domestic production of such article.
``(ii) The term `domestic industry' includes
producers located in the United States insular
possessions.''; and
(B) by adding at the end the following:
``(C) The term `serious injury' means a significant
overall impairment in the position of a domestic
industry.
``(D) The term `threat of serious injury' means
serious injury that is clearly imminent.
(f) Limitations on Investigations.--Section 202(h) of the Trade Act
of 1974 (19 U.S.C. 2252(h)) is amended by adding at the end the
following:
``(3)(A) Not later than the date on which the Textiles
Agreement enters into force with respect to the United States,
the Secretary of Commerce shall publish in the Federal Register
a list of all articles that are subject to the Textiles
Agreement. An investigation may be conducted under this section
concerning imports of any article that is subject to the
Textiles Agreement only if the United States has integrated
that article into GATT 1994 pursuant to the Textiles Agreement,
as set forth in notices published in the Federal Register by
the Secretary of Commerce, including the notice published under
section 331 of the Uruguay Round Agreements Act.
``(B) For purposes of this paragraph:
``(i) The term `Textiles Agreement' means the
Agreement on Textiles and Clothing referred to in
section 101(d)(4) of the Uruguay Round Agreements Act.
``(ii) The term `GATT 1994' has the meaning given
that term in section 2(1)(B) of the Uruguay Round
Agreements Act.''.
SEC. 302. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY.
(a) Authority to Enter Into International Agreements.--Section 203
of the Trade Act of 1974 (19 U.S.C. 2253) is amended--
(1) in subsection (a)(3)(E) by striking ``orderly
marketing'';
(2) in subsection (d)(1) by striking ``orderly marketing
agreements'' and inserting ``agreements described in subsection
(a)(3)(E)'';
(3) in subsection (f)--
(A) in the subsection heading by striking ``Orderly
Marketing and Other'' and inserting ``Certain'';
(B) in paragraph (1)--
(i) by striking ``orderly marketing
agreements'' the first place it appears and
inserting ``agreements of the type described in
subsection (a)(3)(E)''; and
(ii) by striking ``orderly marketing
agreements with foreign countries'' and
inserting ``agreements of the type described in
subsection (a)(3)(E)''; and
(C) in paragraph (2) by striking ``orderly
marketing agreement implemented under subsection (a)''
and inserting ``agreement implemented under subsection
(a)(3)(E)''; and
(4) in subsection (g)(2)--
(A) in the first sentence by striking ``orderly
marketing or other''; and
(B) in the second sentence--
(i) by striking ``orderly marketing
agreement'' and inserting ``agreement of the
type described in subsection (a)(3)(E) that
is''; and
(ii) by striking ``agreements'' and
inserting ``agreement''.
(b) Limitations on Actions.--
(1) Duration of actions.--Section 203(e)(1) of the Trade
Act of 1974 (19 U.S.C. 2253(e)(1)) is amended to read as
follows:
``(1)(A) Subject to subparagraph (B), the duration of the
period in which an action taken under this section may be in
effect shall not exceed 4 years. Such period shall include the
period, if any, in which provisional relief under section
202(d) was in effect.
``(B)(i) Subject to clause (ii), the President, after
receiving an affirmative determination from the Commission
under section 204(c) (or, if the Commission is equally divided
in its determination, a determination which the President
considers to be an affirmative determination of the
Commission), may extend the effective period of any action
under this section if the President determines that--
``(I) the action continues to be necessary to
prevent or remedy the serious injury; and
``(II) there is evidence that the domestic industry
is making a positive adjustment to import competition.
``(ii) The effective period of any action under this
section, including any extensions thereof, may not, in the
aggregate, exceed 8 years.''.
(2) Limitation on quantitative restrictions.--Section
203(e)(4) of the Trade Act of 1974 (19 U.S.C. 2253(e)(4)) is
amended to read as follows:
``(4) Any action taken under this section proclaiming a
quantitative restriction shall permit the importation of a
quantity or value of the article which is not less than the
average quantity or value of such article entered into the
United States in the most recent 3 years that are
representative of imports of such article and for which data
are available, unless the President finds that the importation
of a different quantity or value is clearly justified in order
to prevent or remedy the serious injury.''.
(3) Phasing-down of actions.--Section 203(e)(5) of the
Trade Act of 1974 (19 U.S.C. 2253(e)(5)) is amended to read as
follows:
``(5) An action described in subsection (a)(3)(A), (B), or
(C) that has an effective period of more than 1 year shall be
phased down at regular intervals during the period in which the
action is in effect.''.
(4) Limitations on new actions and investigations of same
article.--(A) Section 203(e) of the Trade Act of 1974 (19
U.S.C. 2253(e)) is amended by adding at the end the following:
``(7)(A) If an article was the subject of an action under
subparagraph (A), (B), (C), or (E) of subsection (a)(3), no new
action may be taken under any of those subparagraphs with
respect to such article for--
``(i) a period beginning on the date on which the
previous action terminates that is equal to the period
in which the previous action was in effect, or
``(ii) a period of 2 years beginning on the date on
which the previous action terminates,
whichever is greater.
``(B) Notwithstanding subparagraph (A), if the previous
action under subparagraph (A), (B), (C), or (E) of subsection
(a)(3) with respect to an article was in effect for a period of
180 days or less, the President may take a new action under any
of those subparagraphs with respect to such article if--
``(i) at least 1 year has elapsed since the
previous action went into effect; and
``(ii) an action described in any of those
subparagraphs has not been taken with respect to such
article more than twice in the 5-year period
immediately preceding the date on which the new action
with respect to such article first becomes
effective.''.
(B) Section 202(h)(2) of the Trade Act of 1974 (19 U.S.C.
2252(h)(2)) is amended to read as follows:
``(2) No new investigation shall be conducted with respect
to an article that is or has been the subject of an action
under section 203(a)(3)(A), (B), (C), or (E) if the last day on
which the President could take action under section 203 in the
new investigation is a date earlier than that permitted under
section 203(e)(7).''.
(c) Reports on Monitoring.--Section 204(a) of the Trade Act of 1974
(19 U.S.C. 2354(a)) is amended--
(1) by amending paragraph (2) to read as follows:
``(2) If the initial period during which the action taken
under section 203 is in effect exceeds 3 years, or if an
extension of such action exceeds 3 years, the Commission shall
submit a report on the results of the monitoring under
paragraph (1) to the President and to the Congress not later
than the date that is the mid-point of the initial period, and
of each such extension, during which the action is in
effect.''; and
(2) in paragraph (4) by striking ``extension,''.
(d) Investigation of Extension of Action.--Section 204 of the Trade
Act of 1974 (19 U.S.C. 2254) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Extension of Action.--
``(1) Upon request of the President, or upon petition on
behalf of the industry concerned filed with the Commission not
earlier than the date which is 9 months, and not later than the
date which is 6 months, before the date any action taken under
section 203 is to terminate, the Commission shall investigate
to determine whether action under section 203 continues to be
necessary to prevent or remedy serious injury and whether there
is evidence that the industry is making a positive adjustment
to import competition.
``(2) The Commission shall publish notice of the
commencement of any proceeding under this subsection in the
Federal Register and shall, within a reasonable time
thereafter, hold a public hearing at which the Commission shall
afford interested parties and consumers an opportunity to be
present, to present evidence, and to respond to the
presentations of other parties and consumers, and otherwise to
be heard.
``(3) The Commission shall transmit to the President a
report on its investigation and determination under this
subsection not later than 60 days before the action under
section 203 is to terminate, unless the President specifies a
different date.''.
SEC. 303. MISCELLANEOUS AMENDMENTS.
Title II of the Trade Act of 1974 is amended as follows:
(1) Section 202(a)(2)(B)(ii) (19 U.S.C. 2252(a)(2)(B)(ii))
is amended by striking ``, or at any time before the 150th day
after the date of filing be amended to request,''.
(2) Section 202(b)(1)(A) (19 U.S.C. 2252(b)(1)(A)) is
amended by striking ``(b)'' and inserting ``(a)''.
(3) Section 202(d)(1) (19 U.S.C. 2252(d)(1)) is amended--
(A) in subparagraph (C)(i) by striking ``paragraph
(2)'' and inserting ``subparagraph (B)''; and
(B) by striking ``or threat thereof'' each place it
appears in subparagraphs (E) and (G).
(4) Section 202(d)(4)(A)(i) (19 U.S.C. 2252(d)(4)(A)(i) is
amended by striking ``203(a)'' and inserting ``202(b)''.
(5) Section 202(c)(6) (19 U.S.C. 2252(c)(6)) is amended by
striking ``subsection'' and inserting ``section''.
(6) Section 202(f)(2)(G)(ii) (19 U.S.C. 2252(f)(2)(G)(ii))
is amended by striking ``is'' and inserting ``are''.
(7) Section 203(a)(2)(C) (19 U.S.C. 2253(a)(2)(C)) is
amended by striking ``201(b)'' and inserting ``202(a)''.
(8) Section 203(c) (19 U.S.C. 2253(c)) is amended by
striking ``(c)(2)'' and inserting ``(d)(2)''.
(9) Section 203(e)(2) (19 U.S.C. 2253(e)(2)) is amended--
(A) by striking ``may be taken under subsection
(a)(1)(A), (B), or (C) or under section 202(d)(2)(B)''
and inserting ``of a type described in subsection
(a)(3)(A), (B), or (C) may be taken under subsection
(a)(1), under section 202(d)(1)(G), or under section
202(d)(2)(D)''; and
(B) by striking ``or threat thereof''.
(10) Section 203(e)(6)(B) (19 U.S.C. 2253(e)(6)(B)) is
amended--
(A) by striking ``203(c)'' and inserting
``202(e)''; and
(B) by striking ``203(a)'' and inserting
``202(b)''.
SEC. 304. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
subtitle and the amendments made by this subtitle take effect on the
date on which the WTO Agreement enters into force with respect to the
United States.
(b) Section 301(b).--The amendment made by section 301(b) takes
effect on the date of the enactment of this Act.
Subtitle B--Foreign Trade Barriers and Unfair Trade Practices
SEC. 311. IDENTIFICATION OF FOREIGN ANTICOMPETITIVE PRACTICES.
(a) Report to Congress.--
(1) Contents of report.--Section 181(b)(2) of the Trade Act
of 1974 (19 U.S.C. 2241(b)(2)) is amended--
(A) in subparagraph (A) by striking ``or'' after
the comma;
(B) in subparagraph (B) by striking the period and
inserting ``, or''; and
(C) by adding after subparagraph (B) the following:
``(C) a section on foreign anticompetitive
practices, the toleration of which by foreign
governments is adversely affecting exports of United
States goods or services.''.
(2) Assistance of other agencies.--Section 181(c) of the
Trade Act of 1974 (19 U.S.C. 2241(c)) is amended by adding at
the end of paragraph (1) the following: ``In preparing the
section of the report required by subsection (b)(2)(C), the
Trade Representative shall consult in particular with the
Attorney General.''.
SEC. 312. CONSULTATION WITH COMMITTEES.
Section 181(b)(3) of the Trade Act of 1974 (19 U.S.C. 2241(b)(3))
is amended by adding at the end the following: ``After the submission
of the report required by paragraph (1), the Trade Representative shall
also consult periodically with, and take into account the views of, the
committees described in that paragraph regarding means to address the
foreign trade barriers identified in the report, including the possible
initiation of investigations under section 302 or other trade
actions.''.
SEC. 313. IDENTIFICATION OF COUNTRIES THAT DENY PROTECTION OF
INTELLECTUAL PROPERTY RIGHTS.
Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended--
(1) in subsection (b) by adding at the end the following:
``(4) In identifying foreign countries under paragraphs (1)
and (2) of subsection (a), the Trade Representative shall take
into account--
``(A) the history of intellectual property laws and
practices of the foreign country, including any
previous identification under subsection (a)(2), and
``(B) the history of efforts of the United States,
and the response of the foreign country, to achieve
adequate and effective protection and enforcement of
intellectual property rights.''; and
(2) in subsection (d)--
(A) in paragraph (3) by amending the matter
preceding subparagraph (A) to read as follows:
``(3) A foreign country denies fair and equitable market
access if the foreign country effectively denies access to a
market for a product protected by a copyright or related right,
patent, trademark, mask work, trade secret, or plant breeder's
right, through the use of laws, procedures, practices, or
regulations which--''; and
(B) by adding at the end the following:
``(4) A foreign country may be determined to deny adequate
and effective protection of intellectual property rights,
notwithstanding the fact that the foreign country may be in
compliance with the specific obligations of the Agreement on
Trade-Related Aspects of Intellectual Property Rights referred
to in section 101(d)(15) of the Uruguay Round Agreements
Act.''; and
(3) by adding at the end the following:
``(g) Annual Report.--The Trade Representative shall, by not later
than the date by which countries are identified under subsection (a),
transmit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate, a report on
actions taken under this section during the 12 months preceding such
report, and the reasons for such actions, including a description of
progress made in achieving improved intellectual property protection
and market access for persons relying on intellectual property
rights.''.
SEC. 314. AMENDMENTS TO TITLE III OF THE TRADE ACT OF 1974.
(a) Scope of Authority.--
(1) In general.--Subsections (a)(1) and (b)(2) of section
301 of the Trade Act of 1974 (19 U.S.C. 2411(a)(1) and (b)(2))
are each amended by adding the following sentence at the end:
``Actions may be taken that are within the power of the President with
respect to trade in any goods or services, or with respect to any other
area of pertinent relations with the foreign country.''.
(2) Import restrictions.--Section 301(c)(5) of the Trade
Act of 1974 (19 U.S.C. 2411(c)(5)) is amended by striking the
matter preceding subparagraph (B) and inserting the following:
``(5) If the Trade Representative determines that actions
to be taken under subsection (a) or (b) are to be in the form
of import restrictions, the Trade Representative shall--
``(A) give preference to the imposition of duties
over the imposition of other import restrictions,
and''.
(b) Relationship With Other Authorities.--Section 301(c) of the
Trade Act of 1974 (19 U.S.C. 2411(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``or'' after
the semicolon at the end;
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following:
``(C) in a case in which the act, policy, or
practice also fails to meet the eligibility criteria
for receiving duty-free treatment under subsections (b)
and (c) of section 502 of this Act, subsections (b) and
(c) of section 212 of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702(b) and (c)), or
subsections (c) and (d) of section 203 of the Andean
Trade Preference Act (19 U.S.C. 3202(c) and (d)),
withdraw, limit, or suspend such treatment under such
provisions, notwithstanding the provisions of
subsection (a)(3) of this section; or''.
(c) Definition of an Unreasonable Act, Policy, or Practice.--
Section 301(d)(3) of the Trade Act of 1974 (19 U.S.C. 2411(d)(3)) is
amended--
(1) in subparagraph (B)(i) by striking subclauses (II) and
(III) and inserting the following:
``(II) provision of adequate and effective
protection of intellectual property rights
notwithstanding the fact that the foreign
country may be in compliance with the specific
obligations of the Agreement on Trade-Related
Aspects of Intellectual Property Rights
referred to in section 101(d)(15) of the
Uruguay Round Agreements Act,
``(III) nondiscriminatory market access
opportunities for United States persons that
rely upon intellectual property protection, or
``(IV) market opportunities, including the
toleration by a foreign government of
systematic anticompetitive activities by
enterprises or among enterprises in the foreign
country that have the effect of restricting, on
a basis that is inconsistent with commercial
considerations, access of United States goods
or services to a foreign market,''; and
(2) by adding at the end the following:
``(F)(i) For the purposes of subparagraph (B)(i)(II),
adequate and effective protection of intellectual property
rights includes adequate and effective means under the laws of
the foreign country for persons who are not citizens or
nationals of such country to secure, exercise, and enforce
rights and enjoy commercial benefits relating to patents,
trademarks, copyrights and related rights, mask works, trade
secrets, and plant breeder's rights.
``(ii) For purposes of subparagraph (B)(i)(IV), the denial
of fair and equitable nondiscriminatory market access
opportunities includes restrictions on market access related to
the use, exploitation, or enjoyment of commercial benefits
derived from exercising intellectual property rights in
protected works or fixations or products embodying protected
works.''.
(d) Time Limits For Determinations of Unfair Trade Practices.--
Section 304(a) of the Trade Act of 1974 (19 U.S.C. 2414(a)) is
amended--
(1) in subparagraph (A) of paragraph (2), by striking
``(other than the agreement on subsidies and countervailing
measures described in section 2(c)(5) of the Trade Agreements
Act of 1979)'',
(2)(A) in subparagraph (A) of paragraph (3), by inserting
``does not consider that a trade agreement, including the
Agreement on Trade-Related Aspects of Intellectual Property
(referred to in section 101(d)(15) of the Uruguay Round
Agreements Act), is involved or'' after ``the Trade
Representative'' the first place it appears, and
(B) in subparagraph (B) of paragraph (3), in the matter
preceding clause (i), by striking ``any investigation initiated
by reason of section 302(b)(2)'' and inserting ``an
investigation initiated by reason of section 302(b)(2) (other
than an investigation involving a trade agreement)'', and
(3) in paragraph (4), by striking ``(other than the
agreement on subsidies and countervailing measures described in
section 2(c)(5) of the Trade Agreements Act of 1979)''.
(e) Monitoring of Foreign Compliance.--Subsections (a) and (b) of
section 306 of the Trade Act of 1974 (19 U.S.C. 2416) are amended to
read as follows:
``(a) In General.--The Trade Representative shall monitor the
implementation of each measure undertaken, or agreement that is entered
into, by a foreign country to provide a satisfactory resolution of a
matter subject to investigation under this chapter or subject to
dispute settlement proceedings to enforce the rights of the United
States under a trade agreement providing for such proceedings.
``(b) Further Action.--
``(1) In general.--If, on the basis of the monitoring
carried out under subsection (a), the Trade Representative
considers that a foreign country is not satisfactorily
implementing a measure or agreement referred to in subsection
(a), the Trade Representative shall determine what further
action the Trade Representative shall take under section
301(a). For purposes of section 301, any such determination
shall be treated as a determination made under section
304(a)(1).''.
``(2) WTO dispute settlement recommendations.--If the
measure or agreement referred to in subsection (a) concerns the
implementation of a recommendation made pursuant to dispute
settlement proceedings under the World Trade Organization, and
the Trade Representative considers that the foreign country has
failed to implement it, the Trade Representative shall make the
determination in paragraph (1) no later than 30 days after the
expiration of the reasonable period of time provided for such
implementation under paragraph 21 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes that is
referred to in section 101(d)(16) of the Uruguay Round
Agreements Act.''.
(f) Extension of Section 310 of the Trade Act of 1974.--Section 310
of the Trade Act of 1974 (19 U.S.C. 2420) is amended to read as
follows:
``SEC. 310. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.
``(a) Identification.--
``(1) Within 180 days after the submission in calendar year
1995 of the report required by section 181(b), the Trade
Representative shall--
``(A) review United States trade expansion
priorities,
``(B) identify priority foreign country practices,
the elimination of which is likely to have the most
significant potential to increase United States
exports, either directly or through the establishment
of a beneficial precedent, and
``(C) submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives and publish in the Federal Register
a report on the priority foreign country practices
identified.
``(2) In identifying priority foreign country practices
under paragraph (1) of this section, the Trade Representative
shall take into account all relevant factors, including--
``(A) the major barriers and trade distorting
practices described in the National Trade Estimate
Report required under section 181(b);
``(B) the trade agreements to which a foreign
country is a party and its compliance with those
agreements;
``(C) the medium- and long-term implications of
foreign government procurement plans; and
``(D) the international competitive position and
export potential of United States products and
services.
``(3) The Trade Representative may include in the report,
if appropriate--
``(A) a description of foreign country practices
that may in the future warrant identification as
priority foreign country practices; and
``(B) a statement about other foreign country
practices that were not identified because they are
already being addressed by provisions of United States
trade law, by existing bilateral trade agreements, or
as part of trade negotiations with other countries and
progress is being made toward the elimination of such
practices.
``(b) Initiation of Investigations.--By no later than the date
which is 21 days after the date on which a report is submitted to the
appropriate congressional committees under subsection (a)(1), the Trade
Representative shall initiate under section 302(b)(1) investigations
under this chapter with respect to all of the priority foreign country
practices identified.
``(c) Agreements for the Elimination of Barriers.--In the
consultations with a foreign country that the Trade Representative is
required to request under section 303(a) with respect to an
investigation initiated by reason of subsection (b), the Trade
Representative shall seek to negotiate an agreement that provides for
the elimination of the practices that are the subject of the
investigation as quickly as possible or, if elimination of the
practices is not feasible, an agreement that provides for compensatory
trade benefits.
``(d) Reports.--The Trade Representative shall include in the
semiannual report required by section 309 a report on the status of any
investigations initiated pursuant to subsection (b) and, where
appropriate, the extent to which such investigations have led to
increased opportunities for the export of products and services of the
United States.''.
SEC. 315. OBJECTIVES IN INTELLECTUAL PROPERTY.
It is the objective of the United States--
(1) to accelerate the implementation of the Agreement on
Trade-Related Aspects of Intellectual Property Rights referred
to in section 101(d)(15),
(2) to seek enactment and effective implementation by
foreign countries of laws to protect and enforce intellectual
property rights that supplement and strengthen the standards of
the Agreement on Trade-Related Aspects of Intellectual Property
Rights referred to in section 101(d)(15) and the North American
Free Trade Agreement and, in particular--
(A) to conclude bilateral and multilateral
agreements that create obligations to protect and
enforce intellectual property rights that cover new and
emerging technologies and new methods of transmission
and distribution, and
(B) to prevent or eliminate discrimination with
respect to matters affecting the availability,
acquisition, scope, maintenance, use, and enforcement
of intellectual property rights,
(3) to secure fair, equitable, and nondiscriminatory market
access opportunities for United States persons that rely upon
intellectual property protection,
(4) to take an active role in the development of the
intellectual property regime under the World Trade Organization
to ensure that it is consistent with other United States
objectives, and
(5) to take an active role in the World Intellectual
Property Organization (WIPO) to develop a cooperative and
mutually supportive relationship between the World Trade
Organization and WIPO.
SEC. 316. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
subtitle and the amendments made by this subtitle take effect on the
date on which the WTO Agreement enters into force with respect to the
United States.
(b) Section 314(f).--The amendment made by section 314(f) takes
effect on the date of the enactment of this Act.
Subtitle C--Unfair Practices in Import Trade
SEC. 321. UNFAIR PRACTICES IN IMPORT TRADE.
(a) Amendments to Section 337 of the Tariff Act of 1930.--Section
337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended as follows:
(1) Investigation.--Subsection (b) is amended--
(A) by striking ``; Time Limits'' in the heading;
(B) in paragraph (1) by striking all that follows
the second sentence and inserting the following: ``The
Commission shall conclude any such investigation and
make its determination under this section at the
earliest practicable time after the date of publication
of notice of such investigation. To promote expeditious
adjudication, the Commission shall, within 45 days
after an investigation is initiated, establish a target
date for its final determination.''; and
(C) in paragraph (3)--
(i) in the first sentence--
(I) by striking ``the Tariff Act of
1930'' and inserting ``this Act''; and
(II) by striking ``such Act'' and
inserting ``such subtitle''; and
(ii) by striking the fifth sentence.
(2) Determination; review.--Subsection (c) is amended--
(A) in the first sentence by striking ``a
settlement agreement'' and inserting ``an agreement
between the private parties to the investigation,
including an agreement to present the matter for
arbitration'';
(B) by inserting the following after the third
sentence: ``A respondent may raise any counterclaim in
a manner prescribed by the Commission. Immediately
after a counterclaim is received by the Commission, the
respondent raising such counterclaim shall file a
notice of removal with a United States district court
in which venue for any of the counterclaims raised by
the party would exist under section 1391 of title 28,
United States Code. Any counterclaim raised pursuant to
this section shall relate back to the date of the
original complaint in the proceeding before the
Commission. Action on such counterclaim shall not delay
or affect the proceeding under this section, including
the legal and equitable defenses that may be raised
under this subsection.''; and
(C) by adding at the end the following:
``Determinations by the Commission under subsections
(e), (f), and (j) with respect to forfeiture of bonds
and under subsection (h) with respect to the imposition
of sanctions for abuse of discovery or abuse of process
shall also be reviewable in accordance with section 706
of title 5, United States Code.''.
(3) Entry under bond.--Subsection (e) is amended--
(A) in the last sentence of paragraph (1) by
striking ``determined by the Commission'' and all that
follows through the end of the sentence and inserting
``prescribed by the Secretary in an amount determined
by the Commission to be sufficient to protect the
complainant from any injury. If the Commission later
determines that the respondent has violated the
provisions of this section, the bond may be forfeited
to the complainant.'';
(B) by adding at the end of paragraph (2) the
following: ``If the Commission later determines that
the respondent has not violated the provisions of this
section, the bond may be forfeited to the
respondent.''; and
(C) by adding at the end the following new
paragraph:
``(4) The Commission shall prescribe the terms and conditions under
which bonds may be forfeited under paragraphs (1) and (2).''.
(4) Cease and desist orders.--Subsection (f)(1) is amended
by adding at the end the following: ``If a temporary cease and
desist order is issued in addition to, or in lieu of, an
exclusion order under subsection (e), the Commission may
require the complainant to post a bond, in an amount determined
by the Commission to be sufficient to protect the respondent
from any injury, as a prerequisite to the issuance of an order
under this subsection. If the Commission later determines that
the respondent has not violated the provisions of this section,
the bond may be forfeited to the respondent. The Commission
shall prescribe the terms and conditions under which the bonds
may be forfeited under this paragraph.''.
(5) Conditions applicable for general exclusion orders.--
(A) Subsection (d) is amended--
(i) by inserting ``(1)'' before ``If'';
(ii) in the first sentence by striking ``there is
violation'' and inserting ``there is a violation''; and
(iii) by adding at the end the following new
paragraph:
``(2) The authority of the Commission to order an exclusion from
entry of articles shall be limited to persons determined by the
Commission to be violating this section unless the Commission
determines that--
``(A) a general exclusion from entry of articles is
necessary to prevent circumvention of an exclusion order
limited to products of named persons; or
``(B) there is a pattern of violation of this section and
it is difficult to identify the source of infringing
products.''.
(B) Subsection (g)(2) is amended--
(i) by striking ``and'' at the end of subparagraph
(A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``, and''; and
(iii) by adding after subparagraph (B) the
following:
``(C) the requirements of subsection (d)(2) are met.''.
(6) Entry under bond after referral to the president.--
Subsection (j)(3) is amended by striking ``shall be entitled to
entry under bond'' and all that follows through the end of the
sentence and inserting ``shall, until such determination
becomes final, be entitled to entry under bond prescribed by
the Secretary in an amount determined by the Commission to be
sufficient to protect the complainant from any injury. If the
determination becomes final, the bond may be forfeited to the
complainant. The Commission shall prescribe the terms and
conditions under which bonds may be forfeited under this
paragraph.''.
(7) Access to confidential information.--Subsection (n)(2)
is amended--
(A) by amending subparagraph (A) to read as
follows:
``(A) an officer or employee of the Commission who is
directly concerned with--
``(i) carrying out the investigation or related
proceeding in connection with which the information is
submitted,
``(ii) the administration of a bond posted pursuant
to subsection (e), (f), or (j),
``(iii) the administration or enforcement of an
exclusion order issued pursuant to subsection (d), (e),
or (g), a cease and desist order issued pursuant to
subsection (f), or a consent order issued pursuant to
subsection (c),
``(iv) proceedings for the modification or
rescission of a temporary or permanent order issued
under subsection (d), (e), (f), (g), or (i), or a
consent order issued under this section, or
``(v) maintaining the administrative record of the
investigation or related proceeding,''; and
(B) by amending subparagraph (C) to read as
follows:
``(C) an officer or employee of the United States Customs
Service who is directly involved in administering an exclusion
from entry under subsection (d), (e), or (g) resulting from the
investigation or related proceeding in connection with which
the information is submitted.''.
(8) Technical amendment.--Subsection (l) is amended by
striking ``Claims Court'' and inserting ``Court of Federal
Claims''.
(b) Amendments to Title 28, United States Code.--
(1) Stay of actions.--
(A) In general.--Chapter 111 of title 28, United
States Code, is amended by adding at the end the
following new section:
``Sec. 1659. Stay of certain actions pending disposition of related
proceedings before the United States International Trade
Commission
``(a) Stay.--In a civil action involving parties that are also
parties to a proceeding before the United States International Trade
Commission under section 337 of the Tariff Act of 1930, at the request
of a party to the civil action that is also a respondent in the
proceeding before the Commission, the district court shall stay, until
the determination of the Commission becomes final, proceedings in the
civil action with respect to any claim that involves the same issues
involved in the proceeding before the Commission, but only if such
request is made within--
``(1) 30 days after the party is named as a respondent in
the proceeding before the Commission, or
``(2) 30 days after the district court action is filed,
whichever is later.
``(b) Use of Commission Record.--Notwithstanding section 337(n)(1)
of the Tariff Act of 1930, after dissolution of a stay under subsection
(a), the record of the proceeding before the United States
International Trade Commission shall be transmitted to the district
court and shall be admissible in the civil action, subject to such
protective order as the district court determines necessary, to the
extent permitted under the Federal Rules of Evidence and the Federal
Rules of Civil Procedure.''.
(B) Clerical amendment.--The table of sections for
chapter 111 of title 28, United States Code, is amended
by adding at the end the following new item:
``1659. Stay of certain actions pending disposition of related
proceedings before the United States
International Trade Commission.''.
(2) Counterclaims.--Section 1446 of title 28, United States
Code, is amended by adding at the end the following:
``(f) With respect to any counterclaim removed to a district court
pursuant to section 337(c) of the Tariff Act of 1930, the district
court shall resolve such counterclaim in the same manner as an original
complaint under the Federal Rules of Civil Procedure, except that the
payment of a filing fee shall not be required in such cases and the
counterclaim shall relate back to the date of the original complaint in
the proceeding before the International Trade Commission under section
337 of that Act.''.
(3) Jurisdiction.--
(A) In general.--Chapter 85 of title 28, United
States Code, is amended by adding at the end the
following:
``Sec. 1368. Counterclaims in unfair practices in international trade.
``The district courts shall have original jurisdiction of any civil
action based on a counterclaim raised pursuant to section 337(c) of the
Tariff Act of 1930, to the extent that it arises out of the transaction
or occurrence that is the subject matter of the opposing party's claim
in the proceeding under section 337(a) of that Act.''.
(B) Clerical amendment.--The table of sections for
chapter 85 of title 28, United States Code, is amended
by adding at the end the following:
``1368. Counterclaims in unfair practices in international trade.''.
SEC. 322. EFFECTIVE DATE.
The amendments made by this subtitle apply--
(1) with respect to complaints filed under section 337 of
the Tariff Act of 1930 on or after the date on which the WTO
Agreement enters into force with respect to the United States,
or
(2) in cases under such section 337 in which no complaint
is filed, with respect to investigations initiated under such
section on or after such date.
Subtitle D--Textiles
SEC. 331. TEXTILE PRODUCT INTEGRATION.
Not later than 120 days after the date that the WTO Agreement, as
defined in section 2(9) of the Uruguay Round Implementation Act, enters
into force with respect to the United States, the Secretary of Commerce
shall publish in the Federal Register a notice containing the list of
products to be integrated in each stage set out in Article 2(8) of the
Agreement on Textiles and Clothing referred to in section 101(d)(4).
After publication of such list, the list may not be changed unless
otherwise required by statute or the international obligations of the
United States, to correct technical errors, or to reflect
reclassifications. Within 30 days after the publication of such list,
the Trade Representative shall notify the list to the Textiles
Monitoring Body established under Article 8 of the Agreement on
Textiles and Clothing.
SEC. 332. AMENDMENT TO SECTION 204 OF THE AGRICULTURAL ACT OF 1956.
Section 204 of the Agricultural Act of 1956 (7 U.S.C. 1854) is
amended by amending the second sentence to read as follows: ``In
addition, if a multilateral agreement, including but not limited to the
Agreement on Textiles and Clothing referred to in section 101(d)(4) of
the Uruguay Round Implementation Act, has been or is concluded under
the authority of this section among countries accounting for a
significant part of world trade in the articles with respect to which
the agreement was concluded, the President may also issue, in order to
carry out such agreement, regulations governing the entry or withdrawal
from warehouse of the same articles which are the products of countries
not parties to the agreement, or countries to which the United States
does not apply the agreement.''.
SEC. 333. TEXTILE TRANSSHIPMENTS.
Part V of title IV of the Tariff Act of 1930 is amended by
inserting after section 592 the following:
``SEC. 592A. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS.
``(a) Publication of Names of Certain Violators.--
``(1) Publication.--The Secretary of the Treasury is
authorized to publish in the Federal Register a list of the
name of any producer, manufacturer, supplier, seller, exporter,
or other person located outside the customs territory of the
United States--
``(A) against whom the Customs Service has issued a
penalty claim under section 592, and
``(B) if a petition with respect to that claim has
been filed under section 618, against whom a final
decision has been issued under such section after
exhaustion of administrative remedies,
citing any of the violations of the customs laws referred to in
paragraph (2). Such list shall be published not later than
March 31 and September 30 of each year.
``(2) Violations.--. The violations of the customs laws
referred to in paragraph (1) are the following:
``(A) Using documentation, or providing
documentation subsequently used by the importer of
record, which indicates a false or fraudulent country
of origin or source of textile or apparel products.
``(B) Using counterfeit visas, licenses, permits,
bills of lading, or similar documentation, or providing
counterfeit visas, licenses, permits, bills of lading,
or similar documentation that is subsequently used by
the importer of record, with respect to the entry into
the customs territory of the United States of textile
or apparel products.
``(C) Manufacturing, producing, supplying, or
selling textile or apparel products which are falsely
or frauduently labelled as to country of origin or
source.
``(D) Engaging in practices which aid or abet the
transshipment, through a country other than the country
of origin, of textile or apparel products in a manner
which conceals the true origin of the textile or
apparel products or permits the evasion of quotas on,
or voluntary restraint agreements with respect to,
imports of textile or apparel products.
``(3) Removal from list.--Any person whose name has been
included in a list published under paragraph (1) may petition
the Secretary to be removed from such list. If the Secretary
finds that such person has not committed any violations
described in paragraph (2) for a period of not less than 3
years after the date on which the person's name was so
published, the Secretary shall remove such person from the list
as of the next publication of the list under paragraph (2).
``(4) Reasonable care required for subsequent imports.--
``(A) Responsibility of importers and others.--
After the name of a person has been published under
paragraph (1), the Secretary of the Treasury shall
require any importer of record entering, introducing,
or attempting to introduce into the commerce of the
United States textile or apparel products that were
either directly or indirectly produced, manufactured,
supplied, sold, exported, or transported by such named
person to show, to the satisfaction of the Secretary,
that such importer has exercised reasonable care to
ensure that the textile or apparel products are
accompanied by documentation, packaging, and labelling
that are accurate as to its origin. Such reasonable
care shall not include reliance solely on a source of
information which is the named person.
``(B) Failure to exercise reasonable care.--If the
Customs Service determines that merchandise is not from
the country claimed on the documentation accompanying
the merchandise, the failure to exercise reasonable
care described in subparagraph (A) shall be considered
when the Customs Service determines whether the
importer of record is in violation of section 484(a).
``(b) List of High Risk Countries.--
``(1) List.--The President or his designee, upon the advice
of the Secretaries of Commerce and Treasury, and the heads of
other appropriate departments and agencies, is authorized to
publish a list of countries in which illegal activities have
occurred involving transshipped textile or apparel products or
activities designed to evade quotas of the United States on
textile or apparel products, if those countries fail to
demonstrate a good faith effort to cooperate with United States
authorities in ceasing such activities. Such list shall be
published in the Federal Register not later than March 31 of
each year. Any country that is on the list and that
subsequently demonstrates a good faith effort to cooperate with
United States authorities in ceasing illegal activities
described in the first sentence shall be removed from the list,
and such removal shall be published in the Federal Register as
soon as practicable.
``(2) Reasonable care required for subsequent imports.--
``(A) Responsibility of importers of record.--The
Secretary of the Treasury shall require any importer of
record entering, introducing, or attempting to
introduce into the commerce of the United States
textile or apparel products indicated, on the
documentation, packaging, or labelling accompanying
such products, to be from any country on the list
published under paragraph (1) to show, to the
satisfaction of the Secretary, that such importer,
consignee, or purchaser has exercised reasonable care
to ascertain the true country of origin of the textile
or apparel products.
``(B) Failure to exercise reasonable care.--If the
Customs Service determines that merchandise is not from
the country claimed on the documentation accompanying
the merchandise, the failure to exercise reasonable
care described in subparagraph (A) shall be considered
when the Customs Service determines whether the
importer of record is in violation of section 484(a).
``(3) Definition.--For purposes of this subsection, the
term `country' means a foreign country or territory, including
any overseas dependent territory or possession of a foreign
country.''.
SEC. 334. RULES OF ORIGIN FOR TEXTILE AND APPAREL PRODUCTS.
(a) Regulatory Authority.--The Secretary of the Treasury shall
prescribe rules implementing the principles contained in subsection (b)
for determining the origin of textiles and apparel products. Such rules
shall be promulgated in final form not later than July 1, 1995.
(b) Principles.--
(1) In general.--Except as otherwise provided for by
statute, a textile or apparel product, for purposes of the
customs laws and the administration of quantitative
restrictions, originates in a country, territory, or insular
possession, and is the growth, product, or manufacture of that
country, territory, or insular possession, if--
(A) the product is wholly obtained or produced in
that country, territory, or possession;
(B) the product is a yarn, thread, twine, cordage,
rope, cable, or braiding and--
(i) the constituent staple fibers are spun
in that country, territory, or possession, or
(ii) the continuous filament is extruded in
that country, territory, or possession,
(C) the product is a fabric, including a fabric
classified under chapter 59 of the HTS, and the
constituent fibers, filaments, or yarns are woven,
knitted, needled, tufted, felted, entangled, or
transformed by any other fabric-making process in that
country, territory, or possession; or
(D) the product is any other textile or apparel
product that is wholly assembled in that country,
territory, or possession from its component pieces.
(2) Special rules.--Notwithstanding paragraph (1)(D)--
(A) the origin of a good that is classified under
one of the following HTS headings or subheadings shall
be determined under subparagraph (A), (B), or (C) of
paragraph (1), as appropriate: 5609, 5807, 5811,
6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304,
6305, 6306, 6307.10, 6307.90, 6308, or 9404.90; and
(B) a textile or apparel product which is knit to
shape shall be considered to originate in, and be the
growth, product, or manufacture of, the country,
territory, or possession in which it is knit.
(3) Multicountry rule.--If the origin of a good cannot be
determined under paragraph (1) or (2), then that good shall be
considered to originate in, and be the growth, product, or
manufacture of--
(A) the country, territory, or possession in which
the most important assembly or manufacturing process
occurs, or
(B) if the origin of the good cannot be determined
under subparagraph (A), the last country, territory, or
possession in which important assembly or manufacturing
occurs.
(4) Components cut in the united states.--(A) The value of
a component that is cut to shape (but not to length, width, or
both) in the United States from foreign fabric and exported to
another country, territory, or insular possession for assembly
into an article that is then returned to the United States--
(i) shall not be included in the dutiable value of
such article, and
(ii) may be applied toward determining the
percentage referred to in General Note 7(b)(i)(B) of
the HTS, subject to the limitation provided in that
note.
(B) No article (except a textile or apparel product)
assembled in whole of components described in subparagraph (A),
or of such components and components that are products of the
United States, in a beneficiary country as defined in General
Note 7(a) of the HTS shall be treated as a foreign article, or
as subject to duty if--
(i) the components after exportation from the
United States, and
(ii) the article itself before importation into the
United States
do not enter into the commerce of any foreign country other
than such a beneficiary country.
(5) Exception for united states-israel free trade
agreement.--This section shall not affect, for purposes of the
customs laws and administration of quantitative restrictions,
the status of goods that, under rulings and administrative
practices in effect immediately before the enactment of this
Act, would have originated in, or been the growth, product, or
manufacture of, 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, 1987. For such purposes, such
rulings and administrative practices that were applied,
immediately before the enactment of this Act, to determine the
origin of textile and apparel products covered by such
agreement shall continue to apply after the enactment of this
Act, and on and after the effective date described in
subsection (c), unless such rulings and practices are modified
by the mutual consent of the parties to the agreement.
(c) Effective Date.--This section shall apply to goods entered, or
withdrawn from warehouse, for consumption on or after July 1, 1996,
except that this section shall not apply to goods if--
(1) the contract for the sale of such goods to the United
States is entered into before July 20, 1994;
(2) all of the material terms of sale in such contract,
including the price and quantity of the goods, are fixed and
determinable before July 20, 1994;
(3) a copy of the contract is filed with the Commissioner
of Customs within 60 days after the date of the enactment of
this Act, together with a certification that the contract meets
the requirements of paragraphs (1) and (2); and
(4) the goods are entered, or withdrawn from warehouse, for
consumption on or before January 1, 1998.
The origin of goods to which this section does not apply shall be
determined in accordance with the applicable rules in effect on July
20, 1994.
SEC. 335. EFFECTIVE DATE.
Except as provided in section 334, this subtitle and the amendments
made by this subtitle take effect on the date on which the WTO
Agreement enters into force with respect to the United States.
Subtitle E--Government Procurement
SEC. 341. MONITORING AND ENFORCEMENT OF THE AGREEMENT ON GOVERNMENT
PROCUREMENT.
(a) In General.--Section 305(f)(2) of the Trade Agreements Act of
1979 (19 U.S.C. 2515(f)(2)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``a year'' and inserting ``the 18 months'',
(2) by striking ``or'' at the end of subparagraph (B),
(3) by redesignating subparagraph (C) as subparagraph (D),
and
(4) by inserting after subparagraph (B), the following new
subparagraph:
``(C) the procedures result in a determination
providing a specific period of time for the other
participant to bring its practices into compliance with
the Agreement, or''.
(b) Sanctions After Dispute Resolution Fails.--
(1) Sanctions.--Paragraph (3) of section 305(f) of such Act
(19 U.S.C. 2515(f)(3)) is amended to read as follows:
``(3) Sanctions after dispute resolution fails.--
``(A) Failures resulting in sanctions.--If--
``(i) within 18 months from the date
dispute settlement procedures are initiated
with a signatory country pursuant to this
section--
``(I) such procedures are not
concluded, or
``(II) the country has not met the
requirements of subparagraph (A) or (B)
of paragraph (2), or
``(ii) the period of time provided for
pursuant to paragraph (2)(C) has expired and
procedures for suspending concessions under the
Agreement have been completed,
then the sanctions described in subparagraph (B) shall
be imposed.
``(B) Sanctions.--
``(i) In general.--If subparagraph (A)
applies to any signatory country--
``(I) the signatory country shall
be considered as a signatory not in
good standing of the Agreement and the
prohibition on procurement contained in
section 4 of the Act of March 3, 1933
(41 U.S.C. 10b-1) shall apply to such
country, and
``(II) the President shall revoke
the waiver of discriminatory purchasing
requirements granted to the signatory
country pursuant to section 301(a).
``(ii) Time sanctions are imposed.--Any
sanction--
``(I) described in clause (i)(I)
shall apply from the date that is the
last day of the 18-month period
described in subparagraph (A)(i) or, in
the case of paragraph (2)(C), from the
date procedures for suspending
concessions under the Agreement have
been completed, and
``(II) described in clause (i)(II)
shall apply beginning on the day after
the date described in subclause (I).''.
(2) Conforming amendment.--Paragraph (4) of section 305(f)
of such Act (19 U.S.C. 2515(f)(4)) is amended by striking
``subparagraph (A) or (B) of paragraph (3)'' and inserting
``subclause (I) or (II) of paragraph (3)(B)(i)''.
(c) Report to Congress.--
(1) Section 305(d)(2) of the Trade Agreements Act of 1979
(19 U.S.C. 2515(d)(2)) is amended by adding at the end the
following new subparagraphs:
``(D)(i) are not signatories to the Agreement;
``(ii) fail to apply transparent and competitive
procedures to its government procurement equivalent to
those in the Agreement; and
``(iii) whose products or services are acquired in
significant amounts by the United States Government; or
``(E)(i) are not signatories to the Agreement;
``(ii) fail to maintain and enforce effective
prohibitions on bribery and other corrupt practices in
connection with government procurement; and
``(iii) whose products or services are acquired in
significant amounts by the United States Government.''.
(2) Section 305(d)(3)(C) of the Trade Agreements Act of
1979 (19 U.S.C. 2515(d)(3)(C)) is amended by adding before the
period at the end the following: ``, including the failure to
maintain and enforce effective prohibitions on bribery and
other corrupt practices in connection with government
procurement''.
SEC. 342. CONFORMING AMENDMENTS.
(a) Waiver of Discriminatory Purchasing Requirements Regarding
Purchases of Civil Aircraft.--Section 303 of the Trade Agreements Act
of 1979 (19 U.S.C. 2513) is amended by inserting ``referred to in
section 2(c) and approved under section 2(a)'' after ``Civil
Aircraft''.
(b) Expansion of Coverage of the Agreement.--Section 304 of the
Trade Agreements Act of 1979 (19 U.S.C. 2514) is amended--
(1) in subsections (a) and (c) by striking ``part IX,
paragraph 6'' and inserting ``article XXIV(7);
(2) in subsection (c) by striking ``part VI, paragraph 9''
and inserting ``article XIX(5)''; and
(3) in subsection (e) by striking ``date of enactment of
this Act'' and inserting ``date it enters into force with
respect to the United States''.
(c) Annual Report on Foreign Discrimination.--Section 305(d) of the
Trade Agreements Act of 1979 (19 U.S.C. 2515(d)) is amended by striking
out ``April 30, 1990, and annually on April 30 thereafter,'' and
inserting ``April 30 of each year,''.
(d) Labor Surplus Area Studies.--Section 306 of the Trade
Agreements Act of 1979 (19 U.S.C. 2516), and the item relating to such
section in the table of contents for such Act, are repealed.
(e) Availability of Information to Congressional Advisors.--Section
307 of the Trade Agreements Act of 1979 (19 U.S.C. 2517) is amended by
striking ``part VI, paragraph 9,'' and inserting ``article XIX(5)''.
(f) Definitions.--Section 308 of the Trade Agreements Act of 1979
(19 U.S.C. 2518) is amended--
(1) in paragraph (1) by striking ``section 2(c) of this
Act'' and inserting ``section 101(d)(17) of the Uruguay Round
Agreements Act''; and
(2) in paragraph (4)--
(A) in subparagraph (C) by striking ``having a
contract value'' and all that follows through the end
of the subparagraph and inserting ``for which the
United States is obligated to waive Buy National
restrictions under--
``(i) the Agreement on the Establishment of
a Free Trade Area between the Government of the
United States of America and the Government of
Israel, regardless of the thresholds provided
for in the Agreement (as defined in paragraph
(1)), or
``(ii) any subsequent agreement between the
United States and Israel which lowers on a
reciprocal basis the applicable threshold for
entities covered by the Agreement.''; and
(B) in subparagraph (D) by striking ``GATT'' the
first place it appears and all that follows through the
end of the subparagraph and inserting ``the Agreement
(as defined in paragraph (1)), but for the thresholds
provided for in the Agreement.''.
(g) Conforming Amendments.--Section 401 of the Rural
Electrification Act of 1938 (7 U.S.C. 903 note) is amended--
(1) by striking ``, Mexico, or Canada'' each place that it
appears and inserting ``or in any eligible country''; and
(2) by adding at the end the following: ``For purposes of
this section, an `eligible country' is any country that applies
with respect to the United States an agreement ensuring
reciprocal access for United States products and services and
United States suppliers to the markets of that country, as
determined by the United States Trade Representative.''.
SEC. 343. RECIPROCAL COMPETITIVE PROCUREMENT PRACTICES.
(a) Applicability.--Section 302(a) of the Trade Agreements Act of
1979 (19 U.S.C. 2512(a)) is amended to read as follows:
``(a) Authority to Bar Procurement From Non-Designated Countries.--
``(1) In general.--Subject to paragraph (2), the President,
in order to encourage additional countries to become parties to
the Agreement and to provide appropriate reciprocal competitive
government procurement opportunities to United States products
and suppliers of such products--
``(A) shall, with respect to procurement covered by
the Agreement, prohibit the procurement, after the date
on which any waiver under section 301(a) first takes
effect, of products--
``(i) which are products of a foreign
country or instrumentality which is not
designated pursuant to section 301(b), and
``(ii) which would otherwise be eligible
products; and
``(B) may, with respect to procurement covered by
the Agreement, take such other actions within the
President's authority as the President deems necessary.
``(2) Exception.--Paragraph (1) shall not apply in the case
of procurements for which--
``(A) there are no offers of products or services
of the United States or of eligible products; or
``(B) the offers of products or services of the
United States or of eligible products are insufficient
to fulfill the requirements of the United States
Government.''.
(b) Additional Waiver Authority.--Section 302(b) of the Trade
Agreements Act of 1979 (19 U.S.C. 2512(b)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) waive the prohibition required by subsection (a)(1)
on procurement of products of a foreign country or
instrumentality which has not yet become a party to the
Agreement but--
``(A) has agreed to apply transparent and
competitive procedures to its government procurement
equivalent to those in the Agreement, and
``(B) maintains and enforces effective prohibitions
on bribery and other corrupt practices in connection
with its government procurement;''; and
(2) by adding after paragraph (3) the following:
``Before exercising the waiver authority under paragraph (1), the
President shall consult with the appropriate private sector advisory
committees established under section 135 of the Trade Act of 1974 and
with the appropriate committees of the Congress.''.
(c) Conforming Amendment.--Section 305(g) of the Trade Agreements
Act of 1979 (19 U.S.C. 2515(g)) is amended--
(1) in paragraph (1)--
(A) by striking ``(B) or (C)'' and inserting ``(B),
(C), (D), or (E)''; and
(B) by striking ``their discriminatory procurement
practices'' and inserting ``the practices regarding
government procurement identified under subparagraph
(B)(ii), (C)(ii), (D)(ii), or (E)(ii) (as the case may
be)''; and
(2) in paragraph (3) by striking ``discrimination
identified pursuant to subsection (d)(2)(B) or (C)'' and
inserting ``the practices regarding government procurement
identified under subparagraph (B)(ii), (C)(ii), (D)(ii), or
(E)(ii) (as the case may be)''.
SEC. 344. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle take effect on the date on which the
Agreement on Government Procurement referred to in section 101(d)(17)
enters into force with respect to the United States.
(b) Section 342(g).--The amendments made by section 342(g) take
effect on the date on which the WTO Agreement enters into force with
respect to the United States.
Subtitle F--Technical Barriers to Trade
SEC. 351. TECHNICAL BARRIERS TO TRADE.
(a) References.--All references in this section are to title IV of
the Trade Agreements Act of 1979 (19 U.S.C. 2531 et seq.) unless
otherwise specified.
(b) Section 401.--Section 401 is amended--
(1) by striking ``Nothing'' and inserting ``(b) Unnecessary
Obstacles.--Nothing''; and
(2) by inserting after the section heading the following:
``(a) No Bar To Engaging in Standards Activity.--Nothing in this
title may be construed--
``(1) to prohibit a Federal agency from engaging in
activity related to standards-related measures, including any
such measure relating to safety, the protection of human,
animal, or plant life or health, the environment, or consumers;
or
``(2) to limit the authority of a Federal agency to
determine the level it considers appropriate of safety or of
protection of human, animal, or plant life or health, the
environment, or consumers.''.
(c) Section 402.--Section 402(4) is amended--
(1) by striking ``Certification access'' in the paragraph
heading and inserting ``Access'';
(2) by striking ``certification system'' and inserting
``conformity assessment procedure''; and
(3) by striking ``certification under that system'' and
inserting ``an assessment of conformity and the mark of the
system, if any''.
(d) Section 414.--Section 414(b)(1) is amended--
(1) by inserting ``(A)'' after ``relating to'';
(2) by striking ``certification systems'' and inserting
``technical regulations, conformity assessment procedures,'';
(3) by striking ``such standards, systems'' and inserting
``such standards, technical regulations, conformity assessment
procedures,''; and
(4) after ``local'' by inserting ``and (B) the membership
and participation of Federal, State, or local government bodies
or private bodies in the United States in international and
regional standardizing bodies and conformity assessment
systems, as well as in bilateral and multilateral arrangements
concerning standards-related activities''.
(e) Definitions.--Section 451 is amended--
(1) so that paragraph (1) reads as follows:
``(1) Agreement.--The term `Agreement' means the Agreement
on Technical Barriers to Trade referred to in section 101(d)(5)
of the Uruguay Round Agreements Act.'';
(2) so that paragraph (2) reads as follows:
``(2) Conformity assessment procedure.--The term
`conformity assessment procedure' means any procedure used,
directly or indirectly, to determine that relevant requirements
in technical regulations or standards are fulfilled.'';
(3) in paragraph (4), by striking ``certification system''
and inserting ``conformity assessment procedure'' each place it
occurs;
(4) so that paragraph (6)(A) reads as follows:
``(A) the membership of which is open to
representatives, whether public or private, of the
United States and at least all Members.'';
(5) in paragraph (7), by striking ``certification system''
and inserting ``conformity assessment procedure'';
(6) so that paragraph (8) reads as follows:
``(8) Member.--The term `Member' means a WTO member as
defined in section 2(10) of the Uruguay Round Agreements
Act.'';
(7) so that paragraph (13) reads as follows:
``(13) Standard.--The term `standard' means a document
approved by a recognized body, that provides, for common and
repeated use, rules, guidelines, or characteristics for
products or related processes and production methods, with
which compliance is not mandatory. Such term may also include
or deal exclusively with terminology, symbols, packaging,
marking, or labeling requirements as they apply to a product,
process, or production method.'';
(8) in paragraph (14), by striking ``or any certification
system'' and inserting ``, technical regulation, or conformity
assessment procedure''; and
(9) by redesignating paragraph (17) as paragraph (18) and
inserting after paragraph (16) the following:
``(17) Technical regulation.--The term `technical
regulation' means a document which lays down product
characteristics or their related processes and production
methods, including the applicable administrative provisions,
with which compliance is mandatory. Such term may also include
or deal exclusively with terminology, symbols, packaging,
marking, or labeling requirements as they apply to a product,
process, or production method.''.
(f) Reports to Congress.--Section 453 is amended by inserting
``through 2001'' after ``succeeding 3-year period''.
(g) Effective Date.--Title IV of the Trade Agreements Act of 1979
(19 U.S.C. 2531 et seq.) is amended by striking section 454.
SEC. 352. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle take effect
on the date on which the WTO Agreement enters into force with respect
to the United States.
TITLE IV--AGRICULTURE-RELATED PROVISIONS
Subtitle A--Agriculture
PART I--MARKET ACCESS
SEC. 401. SECTION 22 AMENDMENTS.
(a) Amendment to Section 22.--
(1) Generally.--Subsection (f) of section 22 of the
Agricultural Adjustment Act (7 U.S.C. 624(f)), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937,
is amended to read as follows:
``(f) No quantitative limitation or fee shall be imposed under this
section with respect to any article that is the product of a WTO member
(as defined in section 2(10) of the Uruguay Round Agreements Act).''.
(2) Effective Date.--The amendment made by paragraph (1)
shall take effect on the date of entry into force of the WTO
Agreement with respect to the United States, except that with
respect to wheat, that amendment shall take effect on the later
of such date or September 12, 1995.
(b) Conforming Amendments.--
(1) Section 202 of the agricultural act of 1956.--Section
202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
amended--
(A) by striking subsection (a); and
(B) in subsection (b), by striking ``(b)''.
(2) Cotton import quotas.--Section 103B of the Agricultural
Act of 1949 (7 U.S.C. 1444-2) is amended--
(A) in subsection (a)(5)(F)(i)--
(i) by striking ``this section'' and
inserting ``the Uruguay Round Agreements Act'';
and
(ii) by striking ``limited global'';
(B) in subsection (a)(5)(F)(iv), by striking
``special quota period has'' and inserting ``quota
period has'';
(C) by adding at the end of subsection (a)(5)(F)
the following:
``(v) Preferential tariff treatment.--The
quantity under a special import quota shall be
considered to be an in-quota quantity for
purposes of section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d)), section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203), section 503(d)
of the Trade Act of 1974 (19 U.S.C. 2463(d)),
and General Note 3(a)(iv) to the HTS.
``(vi) Definition.--As used in this
subparagraph, the term `special import quota'
means a quantity of imports that is not subject
to the over-quota tariff rate of a tariff-rate
quota.''; and
(D) in subsection (n)--
(i) in the subsection heading, by striking
``Special'';
(ii) in paragraph (1), by striking ``this
section'' and inserting ``the Uruguay Round
Agreements Act'';
(iii) in paragraph (1), by striking
``special'' each place it appears;
(iv) by redesignating paragraph (1)(C) as
paragraph (1)(D);
(v) by inserting after subparagraph (B) of
paragraph (1) the following:
``(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of section
213(d) of the Caribbean Basin Economic Recovery Act (19
U.S.C. 2703(d)), section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203), section 503(d) of the
Trade Act of 1974 (19 U.S.C. 2463(d)), and General Note
3(a)(iv) to the HTS.''; and
(vi) in paragraph (1)(D) (as redesignated
by clause (iv)), by adding at the end the
following:
``(iii) Limited global import quota.--As
used in this subsection, the term `limited
global import quota' means a quantity of
imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.''; and
(vii) in paragraph (2), by striking
``special quota period may'' and inserting
``quota period may''.
SEC. 402. CHEESE AND CHOCOLATE CRUMB IMPORTS.
(a) Repeal of Sections 701 and 703.--Sections 701 and 703 of the
Trade Agreements Act of 1979 (93 Stat. 268) are hereby repealed.
(b) Presidential Action.--Section 702(d)(1) (93 Stat. 268) of the
Trade Agreements Act of 1979 is amended to read as follows:
``(1) In general.--Not later than 7 days after receiving a
report under subsection (c)(3) with respect to an article of
cheese subject to an in-quota rate of duty (or not later than 3
days after receiving a report under paragraph (2) in any case
in which such paragraph applies), the President shall proclaim
the imposition of a fee on the importation of such article from
the country involved in such amount (not to exceed the amount
of the subsidy determined under subsection (b)(2)(B)) as may be
necessary to ensure that the duty-paid wholesale price of such
article will not be less than the domestic wholesale market
price of similar articles produced in the United States, and
shall direct the Commissioner of Customs to administer and
enforce such fee. Any such fee imposed shall be in addition to
any customs duty or other fee imposed by law.''.
(c) Technical and Conforming Amendments.--
(1) Section 702 of the Trade Agreements Act of 1979 is
amended by striking ``of quota cheese'' each place it appears
and inserting ``of cheese subject to an in-quota rate of
duty''.
(2) Section 702(c)(2) of such Act is amended--
(A) by striking ``the Special Representative for
Trade Negotiations'' and inserting ``the United States
Trade Representative'', and
(B) by striking ``The Special Representative'' and
inserting ``The United States Trade Representative''.
(3) Subsections (c)(3)(B) and (e) of section 702 of such
Act are each amended by striking ``or quantitative
limitation''.
(4) Section 702(f) of such Act is amended--
(A) by inserting ``(as in effect on the day before
the effective date of title II of the Uruguay Round
Agreements Act)'' after ``Tariff Act of 1930'', and
(B) by striking ``under title I of this Act'' and
inserting ``under title VII of the Tariff Act of
1930''.
(5) Section 702(g)(2) of such Act is amended by striking
``or quantitative limitations''.
(6) Section 702(h) of such Act is amended by adding at the
end the following new paragraphs:
``(4) Cheese subject to an in-quota rate of duty.--The term
`cheese subject to an in-quota rate of duty' means the articles
and the quantities of such articles provided for in the
Additional U. S. Notes 14 through 23 of chapter 4 of Schedule
XX (as defined in section 2(5) of the Uruguay Round Agreements
Act).
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 403. MEAT IMPORT ACT.
The Meat Import Act of 1979 (19 U.S.C. 2253 note) is repealed.
SEC. 404. ADMINISTRATION OF TARIFF-RATE QUOTAS.
(a) Orderly Marketing.--In implementing the tariff-rate quotas set
out in Schedule XX for the entry, or withdrawal from warehouse, for
consumption of goods in the United States, the President shall take
such action as may be necessary to ensure that imports of agricultural
products do not disrupt the orderly marketing of commodities in the
United States.
(b) Inadequate Supply.--Where imports of an agricultural product
are subject to a tariff-rate quota, and where the President determines
and proclaims that the supply of the same or directly competitive or
substitutable agricultural product will be inadequate, because of a
natural disaster, disease, or major national market disruption, to meet
domestic demand at reasonable prices, the President may temporarily
increase the quantity of imports of the agricultural product that is
subject to the in-quota rate of duty established under the tariff-rate
quota.
(c) Monitoring.--The Secretary of Agriculture shall monitor the
domestic supply of agricultural products subject to a tariff-rate quota
as the Secretary considers appropriate and shall advise the President
when the domestic supply of the products and substitutable products
combined with the estimated imports of the products under the tariff-
rate quota may be inadequate to meet domestic demand at reasonable
prices.
(d) Coverage of Tariff-Rate Quotas.--
(1) Exclusions.--The President may, subject to terms and
conditions determined appropriate by the President, provide
that the entry, or withdrawal from warehouse, for consumption
in the United States of an agricultural product shall not be
subject to the over-quota rate of duty established under a
tariff-rate quota if the agricultural product--
(A) is imported by, or for the account of, any
agency of the United States or of any foreign embassy;
(B) is imported as a sample for taking orders, for
the personal use of the importer, or for the testing of
equipment;
(C) is a commercial sample or is entered for
exhibition, display, or sampling at a trade fair or for
research; or
(D) is a blended syrup provided for in subheadings
1702.20.28, 1702.30.28, 1702.40.28, 1702.60.28,
1702.90.58, 1806.20.92, 1806.20.93, 1806.90.38,
1806.90.40, 2101.10.38, 2101.20.38, 2106.90.38, or
2106.90.67 of Schedule XX, if entered from a foreign
trade zone by a foreign trade zone user whose
facilities were in operation on June 1, 1990, to the
extent that the annual quantity entered into the
customs territory from such zone does not contain a
quantity of sugar of nondomestic origin greater than
the quantity authorized by the Foreign Trade Zones
Board for processing in that zone during calendar year
1985.
(2) Reclassification.--Subject to the consultation and
layover requirements of section 115, the President may proclaim
a modification to the coverage of a tariff-rate quota for any
agricultural product if the President determines the
modification is necessary or appropriate to conform the tariff-
rate quota to Schedule XX as a result of a reclassification of
any item by the Secretary of the Treasury.
(3) Allocation.--The President may allocate the in-quota
quantity of a tariff-rate quota for any agricultural product
among supplying countries or customs areas and may modify any
allocation as determined appropriate by the President.
(4) Bilateral agreement.--The President may proclaim an
increase in the tariff-rate quota for beef if the President
determines that an increase is necessary to implement--
(A) the March 24, 1994, agreement between the
United States and Argentina; or
(B) the March 9, 1994, agreement between the United
States and Uruguay.
(5) Continuation of sugar headnote.--The President is
authorized to proclaim additional United States note 3 to
chapter 17 of the HTS, and to proclaim the modifications to the
note, as determined appropriate by the President to reflect
Schedule XX.
(e) Conforming Amendments.--
(1) Section 213 of the caribbean basin economic recovery
act.--Section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d)) is amended to read as follows:
``(d) Tariff-Rate Quotas.--No quantity of an agricultural product
subject to a tariff-rate quota that exceeds the in-quota quantity shall
be eligible for duty-free treatment under this title.''.
(2) Section 204 of the andean trade preference act.--
Section 204 of the Andean Trade Preference Act (19 U.S.C. 3203)
is amended by adding at the end the following new subsection:
``(g) Tariff-Rate Quotas.--No quantity of an agricultural product
subject to a tariff-rate quota that exceeds the in-quota quantity shall
be eligible for duty-free treatment under this Act.''.
(3) GSP.--Section 503 of the Trade Act of 1974 (19 U.S.C.
2463) is amended by adding at the end the following new
subsection:
``(d) Tariff-Rate Quotas.--No quantity of an agricultural product
subject to a tariff-rate quota that exceeds the in-quota quantity shall
be eligible for duty-free treatment under this title.''.
(4) General Note 3(a) to the HTS.--General Note 3(a)(iv) to
the HTS is amended by adding at the end the following:
``(F) No quantity of an agricultural product that
is subject to a tariff-rate quota that exceeds the in-
quota quantity shall be eligible for duty-free
treatment under this paragraph.''.
(5) Duty drawback.--
(A) Generally.--Section 313 of the Tariff Act of
1930 (19 U.S.C. 1313) is amended by adding at the end
the following new subsection:
``(w) Limited Applicability for Certain Agricultural Products.--No
drawback shall be available with respect to an agricultural product
subject to the over-quota rate of duty established under a tariff-rate
quota, except pursuant to subsection (j)(1).''.
(B) Effective Date.--The amendment made by
subparagraph (A) shall take effect on the earlier of
the date of entry into force of the WTO Agreement with
respect to the United States or January 1, 1995.
(6) Restrictions on imported peanuts.--Paragraph (6) of
section 358e(f) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a(f)(6)) is amended by inserting after ``issues a
proclamation'' the following: ``under section 404(b) of the
Uruguay Round Agreements Act expanding the quantity of peanuts
subject to the in-quota rate of duty under a tariff-rate quota,
or''.
SEC. 405. SPECIAL AGRICULTURAL SAFEGUARD AUTHORITY.
(a) Determination of Trigger Levels.--Consistent with Article 5 as
determined by the President, the President shall cause to be published
in the Federal Register--
(1) the list of special safeguard agricultural goods not
later than the date of entry into force of the WTO Agreement
with respect to the United States; and
(2) for each special safeguard agricultural good--
(A) the trigger level specified in subparagraph
1(a) of Article 5, on an annual basis;
(B) the trigger price specified in subparagraph
1(b) of Article 5; and
(C) the relevant period.
(b) Determination of Safeguard.--If the President determines with
respect to a special safeguard agricultural good that it is appropriate
to impose--
(1) the price-based safeguard in accordance with
subparagraph 1(a) of Article 5; or
(2) the volume-based safeguard in accordance with
subparagraph 1(b) of Article 5,
the President shall, consistent with Article 5 as determined by the
President, determine the amount of the duty to be imposed, the period
such duty shall be in effect, and any other terms and conditions
applicable to the duty.
(c) Imposition of Safeguard.--The President shall direct the
Secretary of the Treasury to impose a duty on a special safeguard
agricultural good entered, or withdrawn from warehouse, for consumption
in the United States in accordance with a determination made under
subsection (b).
(d) No Simultaneous Safeguard.--A duty may not be in effect for a
special safeguard agricultural good pursuant to this section during any
period in which such good is the subject of any action proclaimed
pursuant to section 202 or 203 of the Trade Act of 1974 (19 U.S.C. 2252
or 2253).
(e) Exclusion of NAFTA Countries.--The President may exempt from
any duty imposed under this section any good originating in a NAFTA
country (as determined in accordance with section 202 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3332)).
(f) Advice of Secretary of Agriculture.--The Secretary of
Agriculture shall advise the President on the implementation of this
section.
(g) Termination Date.--This section shall cease to be effective on
the date, as determined by the President, that the special safeguard
provisions of Article 5 are no longer in force with respect to the
United States.
(h) Definitions.--For purposes of this section--
(1) the term ``Article 5'' means Article 5 of the Agreement
on Agriculture described in section 101(d)(2);
(2) the term ``relevant period'' means the period
determined by the President to be applicable to a special
safeguard agricultural good for purposes of applying this
section; and
(3) the term ``special safeguard agricultural good'' means
an agricultural good on which an additional duty may be imposed
pursuant to the special safeguard provisions of Article 5.
PART II--EXPORTS
SEC. 411. EXPORT PROGRAMS.
(a) Export Enhancement Program.--
(1) Short title.--This subsection may be cited as the
``Export Enhancement Program Amendments of 1994''.
(2) Title heading.--Title III of the Agricultural Trade Act
of 1978 (7 U.S.C. 5651 et seq.) is amended by striking the
title heading and inserting the following:
``TITLE III--EXPORT ENHANCEMENT PROGRAM''.
(3) General authority.--Subsection (a) of section 301 of
such Act (7 U.S.C. 5651(a)) is amended to read as follows:
``(a) In General.--The Commodity Credit Corporation shall carry out
an export enhancement program in accordance with this section to
encourage the commercial sale of United States agricultural commodities
in world markets at competitive prices. The program shall be carried
out in a market sensitive manner. Activities under the program shall
not be limited to responses to unfair trade practices.''.
(4) Funding.--Section 301 of such Act (7 U.S.C. 5651) is
amended--
(A) in subsection (e), by striking ``1995'' and
inserting ``2001''; and
(B) by adding at the end the following:
``(g) Consistency With International Obligations.--Notwithstanding
any other provision of this section, the Commodity Credit Corporation
shall administer and carry out the program authorized by this section
in a manner consistent, as determined by the President, with the
obligations undertaken by the United States set forth in the Uruguay
Round Agreements.''.
(b) Dairy Export Incentive Program.--Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14) is amended by striking
``1995'' and inserting ``2001''.
(c) Export Sales of Dairy Products.--Subsection (a) of section 1163
of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731
note) is amended to read as follows:
``(a) In each fiscal year, the Secretary of Agriculture may sell
dairy products for export, at such prices as the Secretary determines
appropriate, in a quantity and allocated as determined by the
Secretary, consistent with the obligations undertaken by the United
States set forth in the Uruguay Round Agreements, if the disposition of
the commodities will not interfere with the usual marketings of the
United States nor disrupt world prices of agricultural commodities and
patterns of commercial trade.''.
(d) Market Promotion Program.--(1) Section 203(c) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623(c)) is amended--
(A) by striking paragraph (2);
(B) by striking ``Participation.--'' and all that follows
through ``To'' in paragraph (1) and inserting
``Participation.--To'';
(C) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively; and
(D) by aligning the margins of paragraphs (1), (2), and (3)
(as so redesignated) so as to align with the margin of
paragraph (1) of subsection (d).
(2) Section 203(f)(2) of such Act (7 U.S.C. 5623(f)(2)) is
amended--
(A) by striking subparagraph (D);
(B) by inserting ``or'' at the end of subparagraph (C); and
(C) by redesignating subparagraph (E) as subparagraph (D).
(e) Food Aid.--
(1) Policy.--In light of the Uruguay Round Agreement on
Agriculture and the Ministerial Decision on Measures Concerning
the Possible Negative Effects of the Reform Program on Least-
Developed and Net-Food Importing Developing Countries, the
United States reaffirms the commitment of the United States to
providing food aid to developing countries.
(2) Sense of Congress.--It is the sense of Congress that--
(A) the President should initiate consultations
with other donor nations to consider appropriate levels
of food aid commitments to meet the legitimate needs of
developing countries; and
(B) the United States should increase its
contribution of bona fide food assistance to developing
countries consistent with the Agreement on Agriculture.
SEC. 412. OTHER CONFORMING AMENDMENTS.
(a) Public Law 98-332.--Section 106 of Public Law 98-332 (98 Stat.
287), is repealed.
(b) Agriculture, Rural Development, and Related Agencies
Appropriations Act, 1984.--Section 625(A) of the Agriculture, Rural
Development, and Related Agencies Appropriations Act, 1984, as given
the force of law by section 101(d) of Public Law 98-151 (97 Stat.
1853), is repealed.
(c) Agricultural Act of 1956.--Section 203 of the Agriculture Act
of 1956 (7 U.S.C. 1853) is repealed.
PART III--OTHER PROVISIONS
SEC. 421. AUTHORITY FOR CERTAIN ACTIONS UNDER ARTICLE XXVIII.
(a) In General.--In the application of section 125(c) of the Trade
Act of 1974 (19 U.S.C. 2135) with respect to any item provided for in
subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 2401.30.60,
2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of the HTS, ``350''
shall be substituted for ``20'' where it appears in such section.
(b) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 422. TOBACCO IMPORTS.
(a) Domestic Marketing Assessment.--Section 320C of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1314i) is amended by
adding at the end the following new subsection:
``(g) Effective Date.--This section shall be effective only for
calendar year 1994.''.
(b) Budget Deficit Assessment.--
(1) Importer assessments.--Section 106(g) of the
Agricultural Act of 1949 (7 U.S.C. 1445(g)) is amended--
(A) by striking paragraph (1) and inserting the
following new paragraph:
``(1) Effective only for each of the 1994 through 1998
crops of tobacco for which price support is made available
under this Act, each producer and purchaser of such tobacco,
and each importer of the same kind of tobacco, shall remit to
the Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
``(A) in the case of a producer or purchaser of
domestic tobacco, .5 percent of the national price
support level for each such crop; and
``(B) in the case of an importer of tobacco, 1
percent of the national support price for the same kind
of tobacco;
as provided for in this section.''; and
(B) in paragraph (2), by striking ``assessments and
purchaser'' and inserting ``, purchaser, and
importer''.
(2) Conforming amendment.--Section 106 of such Act (7
U.S.C. 1445) is amended by striking subsection (h).
(c) Waiver Authority.--The President may waive the application to
imported tobacco of section 106(g), 106A, or 106B of the Agricultural
Act of 1949 (7 U.S.C. 1445(g), 1445-1, or 1445-2) or the amendment made
in subsection (c) of section 1106 of the Omnibus Budget Reconciliation
Act of 1993 (Public Law 103-66; 107 Stat. 323) if the President
determines that the waiver is necessary or appropriate pursuant to an
international agreement entered into by the United States.
(d) Duty Drawback.--Section 313(w) of the Tariff Act of 1930 (19
U.S.C. 1313) (as added by section 404(d)(5)) is further amended--
(1) by striking ``Products.--No'' and inserting
``Products.--
``(1) In general.--No''; and
(2) by adding at the end the following new paragraph:
``(2) Application to tobacco.--Notwithstanding paragraph
(1), drawback shall also be available pursuant to subsection
(a) with respect to any tobacco subject to the over-quota rate
of duty established under a tariff-rate quota.''.
(e) Effective Date.--This section and the amendments made by this
section shall be effective beginning on the effective date of the
Presidential proclamation, authorized under section 421, establishing a
tariff-rate quota pursuant to Article XXVIII of the GATT 1947 or the
GATT 1994 with respect to tobacco.
SEC. 423. TOBACCO PROCLAMATION AUTHORITY.
(a) In General.--The President, after consultation with the
Committee on Ways and Means of the House of Representatives and with
the Committee on Finance of the Senate, may proclaim the reduction or
elimination of any duty with respect to cigar binder and filler
tobacco, wrapper tobacco, or oriental tobacco set forth in Schedule XX.
(b) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 424. REPORT TO CONGRESS ON ACCESS TO CANADIAN DAIRY AND POULTRY
MARKETS.
The President, not later than 6 months after the date of entry into
force of the WTO Agreement with respect to the United States, shall
submit a report to the Congress on the extent to which Canada is
complying with its obligations under the Uruguay Round Agreements with
respect to dairy and poultry products and with its related obligations
under the North American Free Trade Agreement.
SEC. 425. STUDY OF MILK MARKETING ORDER SYSTEM.
The Secretary of Agriculture shall conduct a study to determine the
effects of the Uruguay Round Agreements on the Federal milk marketing
order system. Not later than 6 months after the date of entry into
force of the WTO Agreement with respect to the United States, the
Secretary of Agriculture shall report to the Congress on the results of
the study.
SEC. 426. ADDITIONAL PROGRAM FUNDING.
(a) Use of Additional Funds.--Consistent, as determined by the
President, with the obligations undertaken by the United States set
forth in the Uruguay Round Agreements, the Commodity Credit Corporation
shall use, in addition to any other funds appropriated or made
available for such purposes, any funds made available under subsection
(b) for authorized export promotion, foreign market development, export
credit financing, and promoting the development, commercialization, and
marketing of products resulting from alternative uses of agricultural
commodities.
(b) Amount of Additional Funds.--Amounts shall be credited to the
Commodity Credit Corporation in fiscal year 1995 equal to the lesser of
the dollar amount of--
(1) the fiscal year 1995 Pay-As-You-Go savings; and
(2) the 5-year Pay-As-You-Go savings;
under section 252 of the Balanced Budget and Emergency Deficit Control
Act of 1985, resulting from the enactment of the Federal Crop Insurance
Reform Act of 1994.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this section.
Subtitle B--Sanitary and Phytosanitary Measures
SEC. 431. SANITARY AND PHYTOSANITARY MEASURES.
(a) Trade Agreements Act of 1979.--Section 414 of the Trade
Agreements Act of 1979 (19 U.S.C. 2544) is amended by adding at the end
the following:
``(c) Sanitary and Phytosanitary Measures.--
``(1) Public information.--The standards information center
shall, in addition to the functions specified under subsection
(b), make available to the public relevant documents, at such
reasonable fees as the Secretary of Commerce may prescribe, and
information regarding--
``(A) any sanitary or phytosanitary measure of
general application, including any inspection procedure
or approval procedure proposed, adopted, or maintained
by a Federal agency or agency of a State or local
government;
``(B) the procedures of a Federal agency or an
agency of a State or local government for risk
assessment and factors the agency considers in
conducting the assessment;
``(C) the determination of the levels of protection
that a Federal agency or an agency of a State or local
government considers appropriate; and
``(D) the membership and participation of the
Federal Government and State and local governments in
international and regional sanitary and phytosanitary
organizations and systems, and in bilateral and
multilateral arrangements regarding sanitary and
phytosanitary measures, and the provisions of those
systems and arrangements.
``(2) Definitions.--The definitions in section 463 apply
for purposes of this subsection.''.
(b) Railway Car Inspection.--Subsection (a) of the Act of January
31, 1942 (56 Stat. 40, chapter 31; 7 U.S.C. 149), is amended by
striking ``from Mexico''.
(c) Federal Plant Pest Act.--The Federal Plant Pest Act (7 U.S.C.
150aa et seq.) is amended--
(1) so that section 103 (7 U.S.C. 150bb) reads as follows:
``SEC. 103. MOVEMENT OF PESTS PROHIBITED.
``(a) In General.--No person shall import or enter any plant pest
into the United States, or move any plant pest interstate, or accept
delivery of any plant pest moving from any foreign country into or
through the United States, or interstate, unless the movement is made
in accordance with such regulations as the Secretary may promulgate to
prevent the dissemination into the United States, or interstate, of
plant pests.
``(b) Regulations.--The regulations promulgated by the Secretary to
implement subsection (a) may include regulations requiring that a plant
pest moving into or through the United States, or interstate--
``(1) be accompanied by a permit issued by the Secretary
prior to the movement of the plant pest; or
``(2) be accompanied by a certificate of inspection issued,
in a manner and form required by the Secretary, by appropriate
officials of the country or State from which the plant pest is
to be moved.''; and
(2) in section 104 (7 U.S.C. 150cc)--
(A) so that subsection (a) reads as follows:
``(a) Any letter, parcel, box, or other package containing any
plant pest, whether sealed as letter-rate postal matter or not, is
nonmailable, and shall not knowingly be conveyed in the mail or
delivered from any post office or by any mail carrier, unless it is
mailed in conformance with such regulations as the Secretary may
promulgate to prevent the dissemination into the United States, or
interstate, of plant pests.'';
(B) by striking subsection (b); and
(C) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(d) Plant Quarantine Act.--The Act of August 20, 1912 (37 Stat.
315, chapter 308; 7 U.S.C. 151 et seq.) (commonly known as the ``Plant
Quarantine Act'') is amended--
(1) so that the first section (7 U.S.C. 151) reads as
follows:
``SECTION 1. IMPORTATION OF NURSERY STOCK.
``(a) In General.--No person shall--
``(1) import or enter into the United States any nursery
stock; or
``(2) accept delivery of any nursery stock moving from any
foreign country into or through the United States;
unless the movement is made in accordance with such regulations as the
Secretary of Agriculture may promulgate to prevent dissemination into
the United States of plant pests, plant diseases, or insect pests.
``(b) Regulations.--The regulations promulgated by the Secretary of
Agriculture to implement subsection (a) may include regulations
requiring that nursery stock moving into or though the United States--
``(1) be accompanied by a permit issued by the Secretary of
Agriculture prior to the movement of the nursery stock;
``(2) be accompanied by a certificate of inspection issued,
in a manner and form required by the Secretary of Agriculture,
by appropriate officials of the country or State from which the
nursery stock is to be moved;
``(3) be grown under postentry quarantine conditions by or
under the supervision of the Secretary of Agriculture for the
purposes of determining whether the nursery stock may be
infested with plant pests or insect pests, or infected with
plant diseases, not discernible by port-of-entry inspection;
and
``(4) if the nursery stock is found to be infested with
plant pests or insect pests or infected with plant diseases, be
subject to remedial measures the Secretary of Agriculture
determines to be necessary to prevent the spread of plant
pests, insect pests, or plant diseases.''; and
(2) so that the last sentence of section 2 (7 U.S.C. 156)
reads as follows: ``This section does not apply to nursery
stock that is imported or entered from a country or a region of
a country that the Secretary of Agriculture designates,
pursuant to procedures set forth in such regulations as the
Secretary may promulgate, as exempt from the requirements of
this section.''.
(e) Honeybee Importation.--The first section of the Act of August
31, 1922 (42 Stat. 833, chapter 301; 7 U.S.C. 281) (commonly known as
the ``Honeybee Act''), is amended to read as follows:
``SECTION 1. HONEYBEE IMPORTATION.
``(a) In General.--The Secretary of Agriculture is authorized to
prohibit or restrict the importation or entry of honeybees and honeybee
semen into or through the United States in order to prevent the
introduction and spread of diseases and parasites harmful to honeybees,
the introduction of genetically undesirable germ plasm of honeybees, or
the introduction and spread of undesirable species or subspecies of
honeybees and the semen of honeybees.
``(b) Regulations.--The Secretary of Agriculture and the Secretary
of the Treasury are each authorized to prescribe such regulations as
the respective Secretary determines necessary to carry out this
section.
``(c) Enforcement.--Honeybees or honeybee semen offered for
importation into, intercepted entering, or having entered the United
States, other than in accordance with regulations promulgated by the
Secretary of Agriculture and the Secretary of the Treasury, shall be
destroyed or immediately exported.
``(d) Definition.--As used in this Act, the term `honeybee' means
all life stages and the germ plasm of honeybees of the genus Apis,
except honeybee semen.''.
(f) Federal Noxious Weed Act of 1974.--Section 4 of the Federal
Noxious Weed Act of 1974 (7 U.S.C. 2803) is amended so that subsections
(a) through (b) read as follows:
``(a) No person shall import or enter any noxious weed identified
in a regulation promulgated by the Secretary into or through the United
States or move any noxious weed interstate, unless the movement is in
accordance with such conditions as the Secretary may prescribe by
regulation under this Act to prevent the dissemination into the United
States, or interstate, of such noxious weeds.
``(b) The regulations prescribed by the Secretary to implement
subsection (a) may include regulations requiring that any noxious weed
imported or entered into the United States or moving interstate be
accompanied by a permit issued by the Secretary prior to the movement
of the noxious weed.''.
(g) Tariff Act of 1930.--Section 306(b) of the Tariff Act of 1930
(19 U.S.C. 1306(b)) is amended by inserting before the period at the
end the following: ``, or is, and is likely to remain, a region of low
prevalence of rinderpest and foot-and-mouth disease''.
(h) Importation of Animals.--Section 6 of the Act of August 30,
1890 (26 Stat. 416, chapter 839; 21 U.S.C. 104), is amended to read as
follows:
``SEC. 6. IMPORTATION OF ANIMALS.
``(a) In General.--The Secretary of Agriculture may by regulation
prohibit or restrict the importation or entry of any cattle, sheep, or
other ruminants, or swine, that are diseased or infected with any
disease, or that have been exposed to an infection, into or through the
United States to prevent the dissemination into the United States of a
disease.
``(b) Penalties.--
``(1) Criminal.--Any person who knowingly violates any
regulation promulgated by the Secretary pursuant to this
section, or any provision of sections 7 through 10 or any
regulation promulgated by the Secretary pursuant to such
sections, shall be fined under title 18, United States Code, or
imprisoned not more than 1 year, or both.
``(2) Civil.--Any person who violates any such provision or
any such regulation may be assessed a civil penalty by the
Secretary of Agriculture not exceeding $1,000. The Secretary
may issue an order assessing the civil penalty only after
notice and an opportunity for an agency hearing on the record.
The order shall be treated as a final order reviewable under
chapter 158 of title 28, United States Code. The validity of
the order may not be reviewed in an action to collect such
civil penalty.''.
(i) Inspection of Animals.--Section 10 of the Act of August 30,
1890 (26 Stat. 417, chapter 839; 21 U.S.C. 105), is amended--
(1) in subsection (a)--
(A) by striking ``(a) In General.--Except as
provided in subsection (b), the'' and inserting
``The'';
(B) in the first sentence, by striking ``shall
cause careful inspection to be made by a suitable
officer of all'' and inserting ``may cause careful
inspection of any''; and
(C) in the third sentence, by striking ``they shall
not be allowed to be placed'' and inserting ``the
Secretary may prohibit or restrict their placement'';
and
(2) by striking subsection (b).
(j) International Animal Quarantine Station.--The 6th sentence in
the first section of Public Law 91-239 (21 U.S.C. 135) is amended--
(1) by striking ``North American''; and
(2) by striking ``within the United States''.
(k) Poultry Products Inspection Act.--Section 17(d) of the Poultry
Products Inspection Act (21 U.S.C. 466) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Notwithstanding any other provision of law, all poultry, or
parts or products of poultry, capable of use as human food offered for
importation into the United States shall--
``(A) be subject to inspection, sanitary, quality, species
verification, and residue standards that achieve a level of
sanitary protection equivalent to that achieved under United
States standards; and
``(B) have been processed in facilities and under
conditions that achieve a level of sanitary protection
equivalent to that achieved under United States standards.'';
and
(2) in paragraph (2)--
(A) by amending subparagraph (A) to read as
follows:
``(A) The Secretary may treat as equivalent to a United States
standard a standard of an exporting country described in paragraph (1)
if the exporting country provides the Secretary with scientific
evidence or other information, in accordance with risk assessment
methodologies determined appropriate by the Secretary, to demonstrate
that the standard of the exporting country achieves the level of
sanitary protection achieved under the United States standard. For the
purposes of this subsection, the term `sanitary protection' means
protection to safeguard public health.'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
(l) Federal Meat Inspection Act.--Section 20(e) of the Federal Meat
Inspection Act (21 U.S.C. 620(e)) is amended--
(1) so that subparagraphs (A) through (B) of paragraph (1)
read as follows:
``(A) A certification by the Secretary that foreign plants
exporting carcasses or meat or meat products referred to in
subsection (a) have complied with requirements that achieve a
level of sanitary protection equivalent to that achieved under
United States requirements with regard to all inspection,
building construction standards, and all other provisions of
this Act and regulations issued under this Act.
``(B) The Secretary may treat as equivalent to a United
States requirement a requirement described in subparagraph (A)
if the exporting country provides the Secretary with scientific
evidence or other information, in accordance with risk
assessment methodologies determined appropriate by the
Secretary, to demonstrate that the requirement achieves the
level of sanitary protection achieved under the United States
requirement. For the purposes of this subsection, the term
`sanitary protection' means protection to safeguard public
health.'';
(2) by striking paragraph (2); and
(3) by redesignating paragraphs (3) through (7) as
paragraphs (2) through (6), respectively.
SEC. 432. INTERNATIONAL STANDARD-SETTING ACTIVITIES.
Title IV of the Trade Agreements Act of 1979 (19 U.S.C. 2531 et
seq.) is amended by adding at the end the following new subtitle:
``Subtitle F--International Standard-Setting Activities
``SEC. 491. NOTICE OF UNITED STATES PARTICIPATION IN INTERNATIONAL
STANDARD-SETTING ACTIVITIES.
``(a) In General.--The President shall designate an agency to be
responsible for informing the public of the sanitary and phytosanitary
standard-setting activities of each international standard-setting
organization.
``(b) Notification.--Not later than June 1 of each year, the agency
designated under subsection (a) with respect to each international
standard-setting organization shall publish notice in the Federal
Register of the information specified in subsection (c) with respect to
that organization. The notice shall cover the period ending on June 1
of the year in which the notice is published, and beginning on the date
of the preceding notice under this subsection, except that the first
such notice shall cover the 1-year period ending on the date of the
notice.
``(c) Required Information.--The information to be provided in the
notice under subsection (b) is--
``(1) the sanitary or phytosanitary standards under
consideration or planned for consideration by that
organization;
``(2) for each sanitary or phytosanitary standard specified
in paragraph (1)--
``(A) a description of the consideration or planned
consideration of the standard;
``(B) whether the United States is participating or
plans to participate in the consideration of the
standard;
``(C) the agenda for the United States
participation, if any; and
``(D) the agency responsible for representing the
United States with respect to the standard.
``(d) Public Comment.--The agency specified in subsection (c)(2)(D)
shall provide an opportunity for public comment with respect to the
standards for which the agency is responsible and shall take the
comments into account in participating in the consideration of the
standards and in proposing matters to be considered by the
organization.
``SEC. 492. EQUIVALENCE DETERMINATIONS.
``(a) In General.--An agency may not determine that a sanitary or
phytosanitary measure of a foreign country is equivalent to a sanitary
or phytosanitary measure established under the authority of Federal law
unless the agency determines that the sanitary or phytosanitary measure
of the foreign country provides at least the same level of sanitary or
phytosanitary protection as the comparable sanitary or phytosanitary
measure established under the authority of Federal law.
``(b) FDA Determination.--If the Commissioner proposes to issue a
determination of the equivalency of a sanitary or phytosanitary measure
of a foreign country to a measure that is required to be promulgated as
a rule under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
seq.) or other statute administered by the Food and Drug
Administration, the Commissioner shall issue a proposed regulation to
incorporate such determination and shall include in the notice of
proposed rulemaking the basis for the determination that the sanitary
or phytosanitary measure of a foreign country provides at least the
same level of sanitary or phytosanitary protection as the comparable
Federal sanitary or phytosanitary measure. The Commissioner shall
provide opportunity for interested persons to comment on the proposed
regulation. The Commissioner shall not issue a final regulation based
on the proposal without taking into account the comments received.
``(c) Notice.--If the Commissioner proposes to issue a
determination of the equivalency of a sanitary or phytosanitary measure
of a foreign country to a sanitary or phystosanitary measure of the
Food and Drug Administration that is not required to be promulgated as
a rule under the Federal Food, Drug, and Cosmetic Act or other statute
administered by the Food and Drug Administration, the Commissioner
shall publish a notice in the Federal Register that identifies the
basis for the determination that the measure provides at least the same
level of sanitary or phytosanitary protection as the comparable Federal
sanitary or phytosanitary measure. The Commissioner shall provide
opportunity for interested persons to comment on the notice. The
Commissioner shall not issue a final determination on the issue of
equivalency without taking into account the comments received.
``SEC. 493. DEFINITIONS.
``(a) In General.--As used in this subtitle:
``(1) Agency.--The term `agency' means a Federal department
or agency (or combination of Federal departments or agencies).
``(2) Commissioner.--The term `Commissioner' means the
Commissioner of Food and Drugs.
``(3) International standard-setting organization.--The
term `international standard-setting organization' means an
organization consisting of representatives of 2 or more
countries, the purpose of which is to negotiate, develop,
promulgate, or amend an international standard.
``(4) Sanitary or phytosanitary standard.--The term
`sanitary or phytosanitary standard' means a standard intended
to form a basis for a sanitary or phytosanitary measure.
``(5) International standard.--The term `international
standard' means a standard, guideline, or recommendation--
``(A) regarding food safety, adopted by the Codex
Alimentarius Commission, including a standard,
guideline, or recommendation regarding decomposition
elaborated by the Codex Committee on Fish and Fishery
Products, food additives, contaminants, hygienic
practice, and methods of analysis and sampling;
``(B) regarding animal health and zoonoses,
developed under the auspices of the International
Office of Epizootics;
``(C) regarding plant health, developed under the
auspices of the Secretariat of the International Plant
Protection Convention in cooperation with the North
American Plant Protection Organization; or
``(D) established by or developed under any other
international organization agreed to by the NAFTA
countries (as defined in section 2(4) of the North
American Free Trade Agreement Implementation Act) or by
the WTO members (as defined in section 2(10) of the
Uruguay Round Agreements Act).
``(b) Other Definitions.--The definitions set forth in section 463
apply for purposes of this subtitle except that in applying paragraph
(7) of section 463 with respect to a sanitary or phytosanitary measure
of a foreign country, any reference in such paragraph to the United
States shall be deemed to be a reference to that foreign country.''.
Subtitle C--Standards
SEC. 441. THE FEDERAL SEED ACT.
The Federal Seed Act (7 U.S.C. 1551 et seq.) is amended--
(1) in section 301(a) (7 U.S.C. 1581(a))--
(A) by striking ``(a)'';
(B) in paragraph (1), by striking ``, or is
required to be stained and is not so stained, under the
terms of this title,'';
(C) by striking paragraph (3); and
(D) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively;
(2) in section 302 (7 U.S.C. 1582)--
(A) in subsection (a), by striking ``staining,''
both places it appears; and
(B) by striking subsection (e);
(3) by striking section 303 (7 U.S.C. 1585) and inserting
the following new section:
``SEC. 303. CERTAIN SEEDS NOT ADAPTED FOR GENERAL AGRICULTURAL USE.
``Whenever the Secretary of Agriculture, after a public hearing,
determines that seed of alfalfa or red clover from any foreign country
is not adapted for general agricultural use in the United States, the
Secretary shall publish the determination and the reasons for the
determination.''; and
(4) in section 304 (7 U.S.C. 1586)--
(A) in subsection (a)--
(i) by inserting ``or'' at the end of
paragraph (2);
(ii) by striking the semicolon at the end
of paragraph (3) and inserting a period; and
(iii) by striking paragraphs (4) through
(7);
(B) by striking subsection (b); and
(C) by redesignating subsection (c) as subsection
(b).
Subtitle D--General Effective Date
SEC. 451. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this title, this title, and the
amendments made by this title, shall take effect on the date of entry
into force of the WTO Agreement with respect to the United States.
TITLE V--INTELLECTUAL PROPERTY
SEC. 501. DEFINITION.
For purposes of this title--
(1) the term ``WTO Agreement'' has the meaning given that
term in section 2(9) of the Uruguay Round Agreements Act; and
(2) the term ``WTO member country'' has the meaning given
that term in section 2(10) of the Uruguay Round Agreements Act.
Subtitle A--Copyright Provisions
SEC. 511. RENTAL RIGHTS IN COMPUTER PROGRAMS.
Section 804(c) of the Computer Software Rental Amendments Act of
1990 (17 U.S.C. 109 note; 104 Stat. 5136) is amended by striking the
first sentence.
SEC. 512. CIVIL PENALTIES FOR UNAUTHORIZED FIXATION OF AND TRAFFICKING
IN SOUND RECORDINGS AND MUSIC VIDEOS OF LIVE MUSICAL
PERFORMANCES.
(a) In General.--Title 17, United States Code, is amended by adding
at the end the following new chapter:
``CHAPTER 11--SOUND RECORDINGS AND MUSIC VIDEOS
``Sec.
``1101. Unauthorized fixation and trafficking in sound recordings and
music videos.
``Sec. 1101. Unauthorized fixation and trafficking in sound recordings
and music videos
``(a) Unauthorized Acts.--Anyone who, without the consent of the
performer or performers involved--
``(1) fixes the sounds or sounds and images of a live
musical performance in a copy or phonorecord, or reproduces
copies or phonorecords of such a performance from an
unauthorized fixation,
``(2) transmits or otherwise communicates to the public the
sounds or sounds and images of a live musical performance, or
``(3) distributes or offers to distribute, sells or offers
to sell, rents or offers to rent, or traffics in any copy or
phonorecord fixed as described in paragraph (1), regardless of
whether the fixations occurred in the United States,
shall be subject to the remedies provided in sections 502 through 505,
to the same extent as an infringer of copyright.
``(b) Definition.--As used in this section, the term `traffic in'
means transport, transfer, or otherwise dispose of, to another, as
consideration for anything of value, or make or obtain control of with
intent to transport, transfer, or dispose of.
``(c) Applicability.--This section shall apply to any act or acts
that occur on or after the date of the enactment of the Uruguay Round
Agreements Act.
``(d) State Law Not Preempted.--Nothing in this section may be
construed to annul or limit any rights or remedies under the common law
or statutes of any State.''.
(b) Conforming Amendment.--The table of chapters for title 17,
United States Code, is amended by adding at the end the following:
``11. Sound Recordings and Music Videos..................... 1101''.
SEC. 513. CRIMINAL PENALTIES FOR UNAUTHORIZED FIXATION OF AND
TRAFFICKING IN SOUND RECORDINGS AND MUSIC VIDEOS OR LIVE
MUSICAL PERFORMANCES.
(a) In General.--Chapter 113 of title 18, United States Code, is
amended by inserting after section 2319 the following:
``Sec. 2319A. Unauthorized fixation of and trafficking in sound
recordings and music videos of live musical performances
``(a) Offense.--Whoever, without the consent of the performer or
performers involved, knowingly and for purposes of commercial advantage
or private financial gain--
``(1) fixes the sounds or sounds and images of a live
musical performance in a copy or phonorecord, or reproduces
copies or phonorecords of such a performance from an
unauthorized fixation;
``(2) transmits or otherwise communicates to the public the
sounds or sounds and images of a live musical performance; or
``(3) distributes or offers to distribute, sells or offers
to sell, rents or offers to rent, or traffics in any copy or
phonorecord fixed as described in paragraph (1), regardless of
whether the fixations occurred in the United States;
shall be imprisoned for not more than 5 years or fined in the amount
set forth in this title, or both, or if the offense is a second or
subsequent offense, shall be imprisoned for not more than 10 years or
fined in the amount set forth in this title, or both.
``(b) Forfeiture and Destruction.--When a person is convicted of a
violation of subsection (a), the court shall order the forfeiture and
destruction of any copies or phonorecords created in violation thereof,
as well as any plates, molds, matrices, masters, tapes, and film
negatives by means of which such copies or phonorecords may be made.
The court may also, in its discretion, order the forfeiture and
destruction of any other equipment by means of which such copies or
phonorecords may be reproduced, taking into account the nature, scope,
and proportionality of the use of the equipment in the offense.
``(c) Seizure and Forfeiture.--If copies or phonorecords of sounds
or sounds and images of a live musical performance are fixed outside of
the United States without the consent of the performer or performers
involved, such copies or phonorecords are subject to seizure and
forfeiture in the United States in the same manner as property imported
in violation of the customs laws. The Secretary of the Treasury shall,
not later than 60 days after the date of the enactment of the Uruguay
Round Agreements Act, issue regulations to carry out this subsection,
including regulations by which any performer may, upon payment of a
specified fee, be entitled to notification by the United States Customs
Service of the importation of copies or phonorecords that appear to
consist of unauthorized fixations of the sounds or sounds and images of
a live musical performance.
``(d) Definitions.--As used in this section--
``(1) the terms `copy', `fixed', `musical work',
`phonorecord', `reproduce', `sound recordings', and `transmit'
mean those terms within the meaning of title 17; and
``(2) the term `traffic in' means transport, transfer, or
otherwise dispose of, to another, as consideration for anything
of value, or make or obtain control of with intent to
transport, transfer, or dispose of.
``(e) Applicability.--This section shall apply to any Act or Acts
that occur on or after the date of the enactment of the Uruguay Round
Agreements Act.''.
(b) Conforming Amendment.--The table of sections for chapter 113 of
title 18, United States Code, is amended by inserting after the item
relating to section 2319 the following:
``2319A. Unauthorized fixation of and trafficking in sound recordings
and music videos of live musical
performances.''.
SEC. 514. RESTORED WORKS.
(a) In General.--Section 104A of title 17, United States Code, is
amended to read as follows:
``Sec. 104A. Copyright in restored works
``(a) Automatic Protection and Term.--
``(1) Term.--
``(A) Copyright subsists, in accordance with this
section, in restored works, and vests automatically on
the date of restoration.
``(B) Any work in which copyright is restored under
this section shall subsist for the remainder of the
term of copyright that the work would have otherwise
been granted in the United States if the work never
entered the public domain in the United States.
``(2) Exception.--Any work in which the copyright was ever
owned or administered by the Alien Property Custodian and in
which the restored copyright would be owned by a government or
instrumentality thereof, is not a restored work.
``(b) Ownership of Restored Copyright.--A restored work vests
initially in the author or initial rightholder of the work as
determined by the law of the source country of the work.
``(c) Filing of Notice of Intent to Enforce Restored Copyright
Against Reliance Parties.--On or after the date of restoration, any
person who owns a copyright in a restored work or an exclusive right
therein may file with the Copyright Office a notice of intent to
enforce that person's copyright or exclusive right or may serve such a
notice directly on a reliance party. Acceptance of a notice by the
Copyright Office is effective as to any reliance parties but shall not
create a presumption of the validity of any of the facts stated
therein. Service on a reliance party is effective as to that reliance
party and any other reliance parties with actual knowledge of such
service and of the contents of that notice.
``(d) Remedies for Infringement of Restored Copyrights.--
``(1) Enforcement of copyright in restored works in the
absence of a reliance party.--As against any party who is not a
reliance party, the remedies provided in chapter 5 of this
title shall be available on or after the date of restoration of
a restored copyright with respect to an act of infringement of
the restored copyright that is commenced on or after the date
of restoration.
``(2) Enforcement of copyright in restored works as against
reliance parties.--As against a reliance party, except to the
extent provided in paragraphs (3) and (4), the remedies
provided in chapter 5 of this title shall be available, with
respect to an act of infringement of a restored copyright, on
or after the date of restoration of the restored copyright if
the requirements of either of the following subparagraphs are
met:
``(A)(i) The owner of the restored copyright (or
such owner's agent) or the owner of an exclusive right
therein (or such owner's agent) files with the
Copyright Office, during the 24-month period beginning
on the date of restoration, a notice of intent to
enforce the restored copyright; and
``(ii)(I) the act of infringement commenced after
the end of the 12-month period beginning on the date of
publication of the notice in the Federal Register;
``(II) the act of infringement commenced before the
end of the 12-month period described in subclause (I)
and continued after the end of that 12-month period, in
which case remedies shall be available only for
infringement occurring after the end of that 12-month
period; or
``(III) copies or phonorecords of a work in which
copyright has been restored under this section are made
after publication of the notice of intent in the
Federal Register.
``(B)(i) The owner of the restored copyright (or
such owner's agent) or the owner of an exclusive right
therein (or such owner's agent) serves upon a reliance
party a notice of intent to enforce a restored
copyright; and
``(ii)(I) the act of infringement commenced after
the end of the 12-month period beginning on the date
the notice of intent is received;
``(II) the act of infringement commenced before the
end of the 12-month period described in subclause (I)
and continued after the end of that 12-month period, in
which case remedies shall be available only for the
infringement occurring after the end of that 12-month
period; or
``(III) copies or phonorecords of a work in which
copyright has been restored under this section are made
after receipt of the notice of intent.
In the event that notice is provided under both subparagraphs
(A) and (B), the 12-month period referred to in such
subparagraphs shall run from the earlier of publication or
service of notice.
``(3) Existing derivative works.--(A) In the case of a
derivative work that is based upon a restored work and is
created--
``(i) before the date of the enactment of the
Uruguay Round Agreements Act, if the source country of
the derivative work is an eligible country on such
date, or
``(ii) before the date of adherence or
proclamation, if the source country of the derivative
work is not an eligible country on such date of
enactment,
a reliance party may continue to exploit that work for the
duration of the restored copyright if the reliance party pays
to the owner of the restored copyright reasonable compensation
for conduct which would be subject to a remedy for infringement
but for the provisions of this paragraph.
``(B) In the absence of an agreement between the parties,
the amount of such compensation shall be determined by an
action in United States district court, and shall reflect any
harm to the actual or potential market for or value of the
restored work from the reliance party's continued exploitation
of the work, as well as compensation for the relative
contributions of expression of the author of the restored work
and the reliance party to the derivative work.
``(4) Commencement of infringement for reliance parties.--
For purposes of section 412, in the case of reliance parties,
infringement shall be deemed to have commenced before
registration when acts which would have constituted
infringement had the restored work been subject to copyright
were commenced before the date of restoration.
``(e) Notices of Intent To Enforce a Restored Copyright.--
``(1) Notices of intent filed with the copyright office.--
(A)(i) A notice of intent filed with the Copyright Office to
enforce a restored copyright shall be signed by the owner of
the restored copyright or the owner of an exclusive right
therein, who files the notice under subsection (d)(2)(A)(i)
(hereafter in this paragraph referred to as the `owner'), or by
the owner's agent, shall identify the title of the restored
work, and shall include an English translation of the title and
any other alternative titles known to the owner by which the
restored work may be identified, and an address and telephone
number at which the owner may be contacted. If the notice is
signed by an agent, the agency relationship must have been
constituted in a writing signed by the owner before the filing
of the notice. The Copyright Office may specifically require in
regulations other information to be included in the notice, but
failure to provide such other information shall not invalidate
the notice or be a basis for refusal to list the restored work
in the Federal Register.
``(ii) If a work in which copyright is restored has no
formal title, it shall be described in the notice of intent in
detail sufficient to identify it.
``(iii) Minor errors or omissions may be corrected by
further notice at any time after the notice of intent is filed.
Notices of corrections for such minor errors or omissions shall
be accepted after the period established in subsection
(d)(2)(A)(i). Notices shall be published in the Federal
Register pursuant to subparagraph (B).
``(B)(i) The Register of Copyrights shall publish in the
Federal Register, commencing not later than 4 months after the
date of restoration for a particular nation and every 4 months
thereafter for a period of 2 years, lists identifying restored
works and the ownership thereof if a notice of intent to
enforce a restored copyright has been filed.
``(ii) Not less than 1 list containing all notices of
intent to enforce shall be maintained in the Public Information
Office of the Copyright Office and shall be available for
public inspection and copying during regular business hours
pursuant to sections 705 and 708. Such list shall also be
published in the Federal Register on an annual basis for the
first 2 years after the applicable date of restoration.
``(C) The Register of Copyrights is authorized to fix
reasonable fees based on the costs of receipt, processing,
recording, and publication of notices of intent to enforce a
restored copyright and corrections thereto.
``(D)(i) Not later than 90 days before the date the
Agreement on Trade-Related Aspects of Intellectual Property
referred to in section 101(d)(15) of the Uruguay Round
Agreements Act enters into force with respect to the United
States, the Copyright Office shall issue and publish in the
Federal Register regulations governing the filing under this
subsection of notices of intent to enforce a restored
copyright.
``(ii) Such regulations shall permit owners of restored
copyrights to file simultaneously for registration of the
restored copyright.
``(2) Notices of intent served on a reliance party.--(A)
Notices of intent to enforce a restored copyright may be served
on a reliance party at any time after the date of restoration
of the restored copyright.
``(B) Notices of intent to enforce a restored copyright
served on a reliance party shall be signed by the owner or the
owner's agent, shall identify the restored work and the work in
which the restored work is used, if any, in detail sufficient
to identify them, and shall include an English translation of
the title, any other alternative titles known to the owner by
which the work may be identified, the use or uses to which the
owner objects, and an address and telephone number at which the
reliance party may contact the owner. If the notice is signed
by an agent, the agency relationship must have been constituted
in writing and signed by the owner before service of the
notice.
``(3) Effect of material false statements.--Any material
false statement knowingly made with respect to any restored
copyright identified in any notice of intent shall make void
all claims and assertions made with respect to such restored
copyright.
``(f) Immunity From Warranty and Related Liability.--
``(1) In general.--Any person who warrants, promises, or
guarantees that a work does not violate an exclusive right
granted in section 106 shall not be liable for legal,
equitable, arbitral, or administrative relief if the warranty,
promise, or guarantee is breached by virtue of the restoration
of copyright under this section, if such warranty, promise, or
guarantee is made before January 1, 1995.
``(2) Performances.--No person shall be required to perform
any act if such performance is made infringing by virtue of the
restoration of copyright under the provisions of this section,
if the obligation to perform was undertaken before January 1,
1995.
``(g) Proclamation of Copyright Restoration.--Whenever the
President finds that a particular foreign nation extends, to works by
authors who are nationals or domiciliaries of the United States,
restored copyright protection on substantially the same basis as
provided under this section, the President may by proclamation extend
restored protection provided under this section to any work--
``(1) of which one or more of the authors is, on the date
of first publication, a national, domiciliary, or sovereign
authority of that nation; or
``(2) which was first published in that nation.
The President may revise, suspend, or revoke any such proclamation or
impose any conditions or limitations on protection under such a
proclamation.
``(h) Definitions.--For purposes of this section and section
109(a):
``(1) The term `date of adherence or proclamation' means
the earlier of the date on which a foreign nation which, as of
the date the WTO Agreement enters into force with respect to
the United States, is not a nation adhering to the Berne
Convention or a WTO member country, becomes--
``(A) a nation adhering to the Berne Convention or
a WTO member country; or
``(B) subject to a Presidential proclamation under
subsection (g).
``(2) The `date of restoration' of a restored copyright is
the later of--
``(A) the date on which the Agreement on Trade-
Related Aspects of Intellectual Property referred to in
section 101(d)(15) of the Uruguay Round Agreements Act
enters into force with respect to the United States, if
the source country of the restored work is a nation
adhering to the Berne Convention or a WTO member
country on such date; or
``(B) the date of adherence or proclamation, in the
case of any other source country of the restored work.
``(3) The term `eligible country' means a nation, other
than the United States, that is a WTO member country, adheres
to the Berne Convention, or is subject to a proclamation under
section 104A(g).
``(4) The term `reliance party' means any person who--
``(A) with respect to a particular work, engages in
acts, before the source country of that work becomes an
eligible country, which would have violated section 106
if the restored work had been subject to copyright
protection, and who, after the source country becomes
an eligible country, continues to engage in such acts;
``(B) before the source country of a particular
work becomes an eligible country, makes or acquires 1
or more copies or phonorecords of that work; or
``(C) as the result of the sale or other
disposition of a derivative work covered under
subsection (d)(3), or significant assets of a person
described in subparagraph (A) or (B), is a successor,
assignee, or licensee of that person.
``(5) The term `restored copyright' means copyright in a
restored work under this section.
``(6) The term `restored work' means an original work of
authorship that--
``(A) is protected under subsection (a);
``(B) is not in the public domain in its source
country through expiration of term of protection;
``(C) is in the public domain in the United States
due to--
``(i) noncompliance with formalities
imposed at any time by United States copyright
law, including failure of renewal, lack of
proper notice, or failure to comply with any
manufacturing requirements;
``(ii) lack of subject matter protection in
the case of sound recordings fixed before
February 15, 1972; or
``(iii) lack of national eligibility; and
``(D) has at least one author or rightholder who
was, at the time the work was created, a national or
domiciliary of an eligible country, and if published,
was first published in an eligible country and not
published in the United States during the 30-day period
following publication in such eligible country.
``(7) The term `rightholder' means the person--
``(A) who, with respect to a sound recording, first
fixes a sound recording with authorization, or
``(B) who has acquired rights from the person
described in subparagraph (A) by means of any
conveyance or by operation of law.
``(8) The `source country' of a restored work is--
``(A) a nation other than the United States;
``(B) in the case of an unpublished work--
``(i) the eligible country in which the
author or rightholder is a national or
domiciliary, or, if a restored work has more
than 1 author or rightholder, the majority of
foreign authors or rightholders are nationals
or domiciliaries of eligible countries; or
``(ii) if the majority of authors or
rightholders are not foreign, the nation other
than the United States which has the most
significant contacts with the work; and
``(C) in the case of a published work--
``(i) the eligible country in which the
work is first published, or
``(ii) if the restored work is published on
the same day in 2 or more eligible countries,
the eligible country which has the most
significant contacts with the work.
``(9) The terms `WTO Agreement' and `WTO member country'
have the meanings given those terms in paragraphs (9) and (10),
respectively, of section 2 of the Uruguay Round Agreements
Act.''.
(b) Limitation.--Section 109(a) of title 17, United States Code, is
amended by adding at the end the following: ``Notwithstanding the
preceding sentence, copies or phonorecords of works subject to restored
copyright under section 104A that are manufactured before the date of
restoration of copyright or, with respect to reliance parties, before
publication or service of notice under section 104A(e), may be sold or
otherwise disposed of without the authorization of the owner of the
restored copyright for purposes of direct or indirect commercial
advantage only during the 12-month period beginning on--
``(1) the date of the publication in the Federal Register
of the notice of intent filed with the Copyright Office under
section 104A(d)(2)(A), or
``(2) the date of the receipt of actual notice served under
section 104A(d)(2)(B),
whichever occurs first.''.
(c) Conforming Amendment.--The item relating to section 104A in the
table of sections for chapter 1 of title 17, United States Code, is
amended to read as follows:
``104A. Copyright in restored works.''.
Subtitle B--Trademark Provisions
SEC. 521. DEFINITION OF ``ABANDONED''.
Section 45 of the Act entitled ``An Act to provide for the
registration and protection of trade-marks used in commerce, to carry
out the provisions of certain international conventions, and for other
purposes'', approved July 5, 1946 (15 U.S.C. 1127) (hereafter in this
title referred to as the ``Trademark Act of 1946''), is amended by
amending the paragraph defining ``abandoned'' to read as follows:
``A mark shall be deemed to be `abandoned' if either of the
following occurs:
``(1) When its use has been discontinued with intent not to
resume such use. Intent not to resume may be inferred from
circumstances. Nonuse for 3 consecutive years shall be prima
facie evidence of abandonment. `Use' of a mark means the bona
fide use of such mark made in the ordinary course of trade, and
not made merely to reserve a right in a mark.
``(2) When any course of conduct of the owner, including
acts of omission as well as commission, causes the mark to
become the generic name for the goods or services on or in
connection with which it is used or otherwise to lose its
significance as a mark. Purchaser motivation shall not be a
test for determining abandonment under this paragraph.''.
SEC. 522. NONREGISTRABILITY OF MISLEADING GEOGRAPHIC INDICATIONS FOR
WINES AND SPIRITS.
Subsection (a) of section 2 of the Trademark Act of 1946 (15 U.S.C.
1052(a)) is amended to read as follows:
``(a) Consists of or comprises immoral, deceptive, or scandalous
matter; or matter which may disparage or falsely suggest a connection
with persons, living or dead, institutions, beliefs, or national
symbols, or bring them into contempt, or disrepute; or a geographical
indication which, when used on or in connection with wines or spirits,
identifies a place other than the origin of the goods and is first used
on or in connection with wines or spirits by the applicant on or after
one year after the date on which the WTO Agreement (as defined in
section 2(9) of the Uruguay Round Agreements Act) enters into force
with respect to the United States.''.
SEC. 523. EFFECTIVE DATE.
The amendments made by this subtitle take effect one year after the
date on which the WTO Agreement enters into force with respect to the
United States.
Subtitle C--Patent Provisions
SEC. 531. TREATMENT OF INVENTIVE ACTIVITY.
(a) In General.--Section 104 of title 35, United States Code, is
amended to read as follows:
``Sec. 104. Invention made abroad
``(a) In General.--
``(1) Proceedings.--In proceedings in the Patent and
Trademark Office, in the courts, and before any other competent
authority, an applicant for a patent, or a patentee, may not
establish a date of invention by reference to knowledge or use
thereof, or other activity with respect thereto, in a foreign
country other than a NAFTA country or a WTO member country,
except as provided in sections 119 and 365 of this title.
``(2) Rights.--If an invention was made by a person, civil
or military--
``(A) while domiciled in the United States, and
serving in any other country in connection with
operations by or on behalf of the United States,
``(B) while domiciled in a NAFTA country and
serving in another country in connection with
operations by or on behalf of that NAFTA country, or
``(C) while domiciled in a WTO member country and
serving in another country in connection with
operations by or on behalf of that WTO member country,
that person shall be entitled to the same rights of priority in
the United States with respect to such invention as if such
invention had been made in the United States, that NAFTA
country, or that WTO member country, as the case may be.
``(3) Use of information.--To the extent that any
information in a NAFTA country or a WTO member country
concerning knowledge, use, or other activity relevant to
proving or disproving a date of invention has not been made
available for use in a proceeding in the Patent and Trademark
Office, a court, or any other competent authority to the same
extent as such information could be made available in the
United States, the Commissioner, court, or such other authority
shall draw appropriate inferences, or take other action
permitted by statute, rule, or regulation, in favor of the
party that requested the information in the proceeding.
``(b) Definitions.--As used in this section--
``(1) the term `NAFTA country' has the meaning given that
term in section 2(4) of the North American Free Trade Agreement
Implementation Act; and
``(2) the term `WTO member country' has the meaning given
that term in section 2(10) of the Uruguay Round Agreements
Act.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to all patent
applications that are filed on or after the date that is 12
months after the date of entry into force of the WTO Agreement
with respect to the United States.
(2) Establishment of date.--An applicant for a patent, or a
patentee, may not establish a date of invention for purposes of
title 35, United States Code, that is earlier than 12 months
after the date of entry into force of the WTO Agreement with
respect to the United States by reference to knowledge or use,
or other activity, in a WTO member country, except as provided
in sections 119 and 365 of such title.
SEC. 532. PATENT TERM AND INTERNAL PRIORITY.
(a) Patent Rights.--
(1) Contents and term of patent.--Section 154 of title 35,
United States Code, is amended to read as follows:
``Sec. 154. Contents and term of patent
``(a) In General.--
``(1) Contents.--Every patent shall contain a short title
of the invention and a grant to the patentee, his heirs or
assigns, of the right to exclude others from making, using,
offering for sale, or selling the invention throughout the
United States or importing the invention into the United
States, and, if the invention is a process, of the right to
exclude others from using, offering for sale or selling
throughout the United States, or importing into the United
States, products made by that process, referring to the
specification for the particulars thereof.
``(2) Term.--Subject to the payment of fees under this
title, such grant shall be for a term beginning on the date on
which the patent issues and ending 20 years from the date on
which the application for the patent was filed in the United
States or, if the application contains a specific reference to
an earlier filed application or applications under section 120,
121, or 365(c) of this title, from the date on which the
earliest such application was filed.
``(3) Priority.--Priority under section 119, 365(a), or
365(b) of this title shall not be taken into account in
determining the term of a patent.
``(4) Specification and drawing.--A copy of the
specification and drawing shall be annexed to the patent and be
a part of such patent.
``(b) Term Extension.--
``(1) Interference delay or secrecy orders.--If the issue
of an original patent is delayed due to a proceeding under
section 135(a) of this title, or because the application for
patent is placed under an order pursuant to section 181 of this
title, the term of the patent shall be extended for the period
of delay, but in no case more than 5 years.
``(2) Extension for appellate review.--If the issue of a
patent is delayed due to appellate review by the Board of
Patent Appeals and Interferences or by a Federal court and the
patent is issued pursuant to a decision in the review reversing
an adverse determination of patentability, the term of the
patent shall be extended for a period of time but in no case
more than 5 years. A patent shall not be eligible for extension
under this paragraph if it is subject to a terminal disclaimer
due to the issue of another patent claiming subject matter that
is not patentably distinct from that under appellate review.
``(3) Limitations.--The period of extension referred to in
paragraph (2)--
``(A) shall include any period beginning on the
date on which an appeal is filed under section 134 or
141 of this title, or on which an action is commenced
under section 145 of this title, and ending on the date
of a final decision in favor of the applicant;
``(B) shall be reduced by any time attributable to
appellate review before the expiration of 3 years from
the filing date of the application for patent; and
``(C) shall be reduced for the period of time
during which the applicant for patent did not act with
due diligence, as determined by the Commissioner.
``(4) Length of extension.--The total duration of all
extensions of a patent under this subsection shall not exceed 5
years.
``(c) Continuation.--
``(1) Determination.--The term of a patent that is in force
on or that results from an application filed before the date
that is 6 months after the date of the enactment of the Uruguay
Round Agreements Act shall be the greater of the 20-year term
as provided in subsection (a), or 17 years from grant, subject
to any terminal disclaimers.
``(2) Remedies.--The remedies of sections 283, 284, and 285
of this title shall not apply to Acts which--
``(A) were commenced or for which substantial
investment was made before the date that is 6 months
after the date of the enactment of the Uruguay Round
Agreements Act; and
``(B) became infringing by reason of paragraph (1).
``(3) Remuneration.--The acts referred to in paragraph (2)
may be continued only upon the payment of an equitable
remuneration to the patentee that is determined in an action
brought under chapter 28 and chapter 29 (other than those
provisions excluded by paragraph (2)) of this title.''.
(2) Provision of further limited reexamination and
conditions of restriction requirements.--(A) The Commissioner
of Patents and Trademarks shall prescribe regulations to
provide for further limited reexamination of applications that
have been pending for 2 years or longer as of the effective
date of section 154(a)(2) of title 35, United States Code, as
added by paragraph (1) of this subsection, taking into account
any reference made in such application to any earlier filed
application under section 120, 121, or 365(c) of such title.
The Commissioner may establish appropriate fees for such
further limited reexamination.
(B) The Commissioner of Patents and Trademarks shall
prescribe regulations to provide for the examination of more
than 1 independent and distinct invention in an application
that has been pending for 3 years or longer as of the effective
date of section 154(a)(2) of title 35, United States Code, as
added by paragraph (1) of this subsection, taking into account
any reference made in such application to any earlier filed
application under section 120, 121, or 365(c) of such title.
The Commissioner may establish appropriate fees for such
examination.
(b) Establishment of a Domestic Priority System.--
(1) In general.--Section 119 of title 35, United States
Code, is amended--
(A) by amending the section caption to read as
follows:
``Sec. 119. Benefit of earlier filing date; right of priority'';
(B) by designating the undesignated paragraphs as
subsections (a), (b), (c), and (d), respectively; and
(C) by adding at the end the following:
``(e)(1) An application for patent filed under section 111(a) or
section 363 of this title for an invention disclosed in the manner
provided by the first paragraph of section 112 of this title in a
provisional application filed under section 111(b) of this title, by an
inventor or inventors named in the provisional application, shall have
the same effect, as to such invention, as though filed on the date of
the provisional application filed under section 111(b) of this title,
if the application for patent filed under section 111(a) or section 363
of this title is filed not later than 12 months after the date on which
the provisional application was filed and if it contains or is amended
to contain a specific reference to the provisional application.
``(2) A provisional application filed under section 111(b) of this
title may not be relied upon in any proceeding in the Patent and
Trademark Office unless the fee set forth in subparagraph (A) or (C) of
section 41(a)(1) of this title has been paid and the provisional
application was pending on the filing date of the application for
patent under section 111(a) or section 363 of this title.''.
(2) Fees.--Section 41(a)(1) of title 35, United States
Code, is amended by adding at the end the following:
``(C) On filing each provisional application for an
original patent, $150.''.
(3) Applications.--Section 111 of title 35, United States
Code, is amended to read as follows:
``Sec. 111. Application
``(a) In General.--
``(1) Written application.--An application for patent shall
be made, or authorized to be made, by the inventor, except as
otherwise provided in this title, in writing to the
Commissioner.
``(2) Contents.--Such application shall include--
``(A) a specification as prescribed by section 112
of this title;
``(B) a drawing as prescribed by section 113 of
this title; and
``(C) an oath by the applicant as prescribed by
section 115 of this title.
``(3) Fee and oath.--The application must be accompanied by
the fee required by law. The fee and oath may be submitted
after the specification and any required drawing are submitted,
within such period and under such conditions, including the
payment of a surcharge, as may be prescribed by the
Commissioner.
``(4) Failure to submit.--Upon failure to submit the fee
and oath within such prescribed period, the application shall
be regarded as abandoned, unless it is shown to the
satisfaction of the Commissioner that the delay in submitting
the fee and oath was unavoidable or unintentional. The filing
date of an application shall be the date on which the
specification and any required drawing are received in the
Patent and Trademark Office.
``(b) Provisional Application.--
``(1) Authorization.--A provisional application for patent
shall be made or authorized to be made by the inventor, except
as otherwise provided in this title, in writing to the
Commissioner. Such application shall include--
``(A) a specification as prescribed by the first
paragraph of section 112 of this title; and
``(B) a drawing as prescribed by section 113 of
this title.
``(2) Claim.--A claim, as required by the second through
fifth paragraphs of section 112, shall not be required in a
provisional application.
``(3) Fee.--(A) The application must be accompanied by the
fee required by law.
``(B) The fee may be submitted after the specification and
any required drawing are submitted, within such period and
under such conditions, including the payment of a surcharge, as
may be prescribed by the Commissioner.
``(C) Upon failure to submit the fee within such prescribed
period, the application shall be regarded as abandoned, unless
it is shown to the satisfaction of the Commissioner that the
delay in submitting the fee was unavoidable or unintentional.
``(4) Filing date.--The filing date of a provisional
application shall be the date on which the specification and
any required drawing are received in the Patent and Trademark
Office.
``(5) Abandonment.--The provisional application shall be
regarded as abandoned 12 months after the filing date of such
application and shall not be subject to revival thereafter.
``(6) Other basis for provisional application.--Subject to
all the conditions in this subsection and section 119(e) of
this title, and as prescribed by the Commissioner, an
application for patent filed under subsection (a) may be
treated as a provisional application for patent.
``(7) No right of priority or benefit of earliest filing
date.--A provisional application shall not be entitled to the
right of priority of any other application under section 119 or
365(a) of this title or to the benefit of an earlier filing
date in the United States under section 120, 121, or 365(c) of
this title.
``(8) Applicable provisions.--The provisions of this title
relating to applications for patent shall apply to provisional
applications for patent, except as otherwise provided, and
except that provisional applications for patent shall not be
subject to sections 115, 131, 135, and 157 of this title.''.
(c) Conforming Changes.--
(1) Section 156(a)(2) of title 35, United States Code, is
amended by inserting ``under subsection (e)(1) of this
section'' after ``extended''.
(2) Section 172 of title 35, United States Code, is
amended--
(A) by striking ``section 119'' and inserting
``subsections (a) through (d) of section 119''; and
(B) by inserting at the end the following new
sentence:
``The right of priority provided for by section 119(e) of this title
shall not apply to designs.''.
(3) Section 173 of title 35, United States Code, is amended
by inserting ``from the date of grant'' after ``years''.
(4) Section 365 of title 35, United States Code, is
amended--
(A) in subsection (a), by striking ``section 119''
and inserting ``subsections (a) through (d) of section
119''; and
(B) in subsection (b), by striking ``the first
paragraph of section 119'' and inserting ``section
119(a)''.
(5) Section 373 of title 35, United States Code, is amended
by striking ``section 119'' and inserting ``subsections (a)
through (d) of section 119''.
(6) The table of sections for chapter 11 of title 35,
United States Code, is amended--
(A) by striking the item relating to section 111
and inserting the following:
``111. Application.'';
and
(B) by striking the item relating to section 119
and inserting the following:
``119. Benefit of earlier filing date; right of priority.''.
SEC. 533. PATENT RIGHTS.
(a) Definition of Infringement.--Section 271 of title 35, United
States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``, offers to sell,'' after
``uses''; and
(B) by inserting ``or imports into the United
States any patented invention'' after ``the United
States'';
(2) in subsection (c), by striking ``sells'' and inserting
``offers to sell or sells within the United States or imports
into the United States'';
(3) in subsection (e)--
(A) in paragraph (1), by striking ``or sell'' and
inserting ``offer to sell, or sell within the United
States or import into the United States'';
(B) in paragraph (3), by striking ``or selling''
and inserting ``offering to sell, or selling within the
United States or importing into the United States'';
(C) in paragraph (4)(B), by striking ``or sale''
and inserting ``offer to sell, or sale within the
United States or importation into the United States'';
and
(D) in paragraph (4)(C), by striking ``or sale''
and inserting ``offer to sell, or sale within the
United States or importation into the United States'';
(4) in subsection (g)--
(A) by striking ``sells'' and inserting ``offers to
sell, sells,'';
(B) by striking ``importation, sale,'' and
inserting ``importation, offer to sell, sale,''; and
(C) by striking ``other use or'' and inserting
``other use, offer to sell, or''; and
(5) by adding at the end the following:
``(i) As used in this section, an `offer for sale' or an `offer to
sell' by a person other than the patentee, or any designee of the
patentee, is that in which the sale will occur before the expiration of
the term of the patent.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 41(c) of title 35, United
States Code, is amended to read as follows:
``(2) A patent, the term of which has been maintained as a result
of the acceptance of a payment of a maintenance fee under this
subsection, shall not abridge or affect the right of any person or that
person's successors in business who made, purchased, offered to sell,
or used anything protected by the patent within the United States, or
imported anything protected by the patent into the United States after
the 6-month grace period but prior to the acceptance of a maintenance
fee under this subsection, to continue the use of, to offer for sale,
or to sell to others to be used, offered for sale, or sold, the
specific thing so made, purchased, offered for sale, used, or imported.
The court before which such matter is in question may provide for the
continued manufacture, use, offer for sale, or sale of the thing made,
purchased, offered for sale, or used within the United States, or
imported into the United States, as specified, or for the manufacture,
use, offer for sale, or sale in the United States of which substantial
preparation was made after the 6-month grace period but before the
acceptance of a maintenance fee under this subsection, and the court
may also provide for the continued practice of any process that is
practiced, or for the practice of which substantial preparation was
made, after the 6-month grace period but before the acceptance of a
maintenance fee under this subsection, to the extent and under such
terms as the court deems equitable for the protection of investments
made or business commenced after the 6-month grace period but before
the acceptance of a maintenance fee under this subsection.''.
(2) The second undesignated paragraph of section 252 of
title 35, United States Code, is amended to read as follows:
``A reissued patent shall not abridge or affect the right of any
person or that person's successors in business who, prior to the grant
of a reissue, made, purchased, offered to sell, or used within the
United States, or imported into the United States, anything patented by
the reissued patent, to continue the use of, to offer to sell, or to
sell to others to be used, offered for sale, or sold, the specific
thing so made, purchased, offered for sale, used, or imported unless
the making, using, offering for sale, or selling of such thing
infringes a valid claim of the reissued patent which was in the
original patent. The court before which such matter is in question may
provide for the continued manufacture, use, offer for sale, or sale of
the thing made, purchased, offered for sale, used, or imported as
specified, or for the manufacture, use, offer for sale, or sale in the
United States of which substantial preparation was made before the
grant of the reissue, and the court may also provide for the continued
practice of any process patented by the reissue that is practiced, or
for the practice of which substantial preparation was made, before the
grant of the reissue, to the extent and under such terms as the court
deems equitable for the protection of investments made or business
commenced before the grant of the reissue.''.
(3) Section 262 of title 35, United States Code, is
amended--
(A) by striking ``use or sell'' and inserting
``use, offer to sell, or sell''; and
(B) by inserting ``within the United States, or
import the patented invention into the United States,''
after ``invention''.
(4) Section 272 of title 35, United States Code, is amended
by striking ``not sold'' and inserting ``not offered for sale
or sold''.
(5) Section 287 of title 35, United States Code, is
amended--
(A) in subsection (a)--
(i) by striking ``making or selling'' and
inserting ``making, offering for sale, or
selling within the United States''; and
(ii) by inserting ``or importing any
patented article into the United States,''
after ``under them,''; and
(B) in subsection (b)--
(i) in paragraph (1)(C), by striking ``use,
or sale'' and inserting ``use, offer for sale,
or sale'';
(ii) in paragraph (4)(A), by striking
``sold or'' and inserting ``sold, offered for
sale, or'' in the matter preceding clause (i);
(iii) in paragraph (4)(A)(ii), by striking
``use, or sale'' and inserting ``use, offer for
sale, or sale'';
(iv) in paragraph (4)(C), by striking
``have been sold'' and inserting ``have been
offered for sale or sold''; and
(v) in paragraph (4)(C), by striking
``United States before'' and inserting ``United
States, or imported by the person into the
United States, before''.
(6) Section 292(a) of title 35, United States Code, is
amended--
(A) by striking ``used, or sold by him'' and
inserting ``used, offered for sale, or sold by such
person within the United States, or imported by the
person into the United States''; and
(B) by striking ``made or sold'' and inserting
``made, offered for sale, sold, or imported into the
United States''.
(7) Section 295 of title 35, United States Code, is amended
by striking ``sale, or use'' and inserting ``sale, offer for
sale, or use''.
(8) Section 307(b) of title 35, United States Code, is
amended by striking ``used anything'' and inserting ``used
within the United States, or imported into the United States,
anything''.
SEC. 534. EFFECTIVE DATES AND APPLICATION.
(a) In General.--Subject to subsection (b), the amendments made by
this subtitle take effect on the date that is one year after the date
on which the WTO Agreement enters into force with respect to the United
States.
(b) Patent Applications.--
(1) In general.--Subject to paragraph (2), the amendments
made by section 532 take effect on the date that is 6 months
after the date of the enactment of this Act and shall apply to
all patent applications filed in the United States on or after
the effective date.
(2) Section 154(a)(1).--Section 154(a)(1) of title 35,
United States Code, as amended by section 532(a)(1) of this
Act, shall take effect on the effective date described in
subsection (a).
(3) Earliest filing.--The term of a patent granted on a
application that is filed on or after the effective date
described in subsection (a) and that contains a specific
reference to an earlier application filed under the provisions
of section 120, 121, or 365(c) of title 35, United States Code,
shall be measured from the filing date of the earliest filed
application.
TITLE VI--RELATED PROVISIONS
Subtitle A--Expiring Provisions
SEC. 601. GENERALIZED SYSTEM OF PREFERENCES.
(a) Extension of Duty-Free Treatment Under System.--Section 505(a)
of the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended by striking
``September 30, 1994'' and inserting ``July 31, 1995''.
(b) Retroactive Application For Certain Liquidations and
Reliquidations.--
(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,
1994, and
(B) that was made after September 30, 1994, and
before such date of enactment,
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. As used in this subsection, the term
``entry'' includes a withdrawal from warehouse for consumption.
(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.
SEC. 602. U.S. INSULAR POSSESSIONS.
(a) Extension of Verification and Certificate Issuance
Provisions.--Additional U.S. Note 5(h)(i) to chapter 91 of the HTS is
amended by striking ``and before January 1, 1995,'' and inserting ``and
before January 1, 2007,''.
(b) Extension of Certificate Number PIC-EV-89.--Notwithstanding any
other provision of law, the production incentive certificate, number
PIC-EV-89, issued jointly by the Secretary of Commerce and the
Secretary of the Interior, pursuant to paragraph (h)(i)(B) of
Additional U.S. Note 5 to chapter 91 of the HTS (formerly paragraph
(h)(i)(II) of headnote 6 of schedule 7, part 2, subpart E of the Tariff
Schedules of the United States), shall be deemed to have been reissued
on the date of the enactment of this Act in the amount of the balance
remaining on such certificate, and shall expire on the date that is 1
year after such date of enactment.
Subtitle B--Certain Customs Provisions
SEC. 611. REIMBURSEMENTS FROM CUSTOMS USER FEE ACCOUNT.
(a) In General.--Subclause (II) of section 13031(f)(3)(A)(i) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)(3)(A)(i)(II)) is amended to read as follows:
``(II) paying premium pay under section 5(b) of the
Act of February 13, 1911, but the amount for which
reimbursement may be made under this subclause may not,
for any fiscal year, exceed the difference between the
total cost of all the premium pay for such year
calculated under section 5(b) and the cost of the night
and holiday premium pay that the Customs Service would
have incurred for the same inspectional work on the day
before the effective date of section 13813 of the
Omnibus Budget Reconciliation Act of 1993,''.
(b) Effective Date.--The amendment made by this section shall apply
to customs inspectional services performed on or after January 1, 1994.
SEC. 612. MERCHANDISE PROCESSING FEES.
(a) In General.--Section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
(1) in subsection (a)(9)--
(A) in subparagraph (A), by striking ``0.17'' and
inserting ``0.21'',
(B) in subparagraph (B)(i), by striking ``(but not
to a rate of more than 0.19 percent nor less than 0.15
percent) that would'' and inserting ``(but not to a
rate of more than 0.21 percent nor less than 0.15
percent) and the amounts specified in subsection
(b)(8)(A)(i) (but not to more than $485 nor less than
$21) to rates and amounts which would'', and
(C) in subparagraph (B)(ii), by striking ``section
613A of the Tariff Act of 1930'' and inserting
``subsection (f)''
(2) in subsection (a)(10)--
(A) in subparagraph (C), by striking ``entry or
release.'' and inserting ``entry or release,'',
(B) in clause (ii), by striking ``$5'' and
inserting ``$6'', and
(C) in clause (iii), by striking ``$8'' and
inserting ``$9'', and
(3) in subsection (b)(8)(A)(i), by striking ``$400 or be
less than $21'', and inserting ``$485 or be less than $25,
unless adjusted pursuant to subsection (a)(9)(B)''.
(b) Effective Date.--The amendments made by this section apply to
articles entered, or withdrawn from warehouse for consumption, on or
after January 1, 1995.
Subtitle C--Conforming Amendments
SEC. 621. CONFORMING AMENDMENTS.
(a) Trade Laws.--
(1) Section 1317(a)(1) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 1677k(a)(1)) is
amended--
(A) by inserting ``(A)'' after ``(1)'';
(B) by striking ``General Agreement on Tariffs and
Trade'' and inserting ``GATT 1994''; and
(C) by adding at the end the following:
``(B) The term `GATT 1994' has the meaning given that term
in section 2(1)(B) of the Uruguay Round Agreements Act.''.
(2) Section 212(c)(4) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702(c)(4)) is amended by striking
``General'' and all that follows through ``1979'' and inserting
``WTO Agreement and the multilateral trade agreements (as such
terms are defined in paragraphs (9) and (4), respectively, of
section 2 of the Uruguay Round Agreements Act)''.
(3) Section 203(d)(4) of the Andean Trade Preference Act
(19 U.S.C. 3202(d)(4)) is amended by striking ``General'' and
all that follows through ``1979'' and inserting ``WTO Agreement
and the multilateral trade agreements (as such terms are
defined in paragraphs (9) and (4), respectively, of section 2
of the Uruguay Round Agreements Act)''.
(4) Section 1106 of the Omnibus Trade and Competitiveness
Act of 1988 (19 U.S.C. 2905) is amended--
(A) in subsection (a), by striking ``the GATT'' and
inserting ``the GATT 1947, or to the WTO Agreement,'';
(B) in subsections (b) and (c), by inserting after
``the GATT'' each place it appears ``1947 or the WTO
Agreement'';
(C) by adding at the end the following new
subsection:
``(e) Definitions.--For purposes of this section:--
``(1) The term `GATT 1947' has the meaning given that term
in section 2(1)(A) of the Uruguay Round Agreements Act.
``(2) The term `WTO Agreement' means the Agreement
Establishing the World Trade Organization entered into on April
15, 1994 and the multilateral trade agreements (as such term is
defined in section 2(4) of the Uruguay Round Agreements
Act).''; and
(D) by inserting after ``General Agreement on
Tariffs and Trade'' in the heading ``for the WTO''.
(5) Section 1107(a)(3) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2906(3)) is amended by
striking ``the General Agreement on Tariffs and Trade'' and
inserting ``the GATT 1947 (as defined in section 2(1)(A) of the
Uruguay Round Agreements Act)''.
(6) Section 1378(2) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3107(2)) is amended by
striking ``the General Agreement on Tariffs and Trade'' and
inserting ``the WTO Agreement and the multilateral trade
agreements (as such terms are defined in paragraphs (8) and
(4), respectively, of section 2 of the Uruguay Round Agreements
Act)''.
(7) Section 1382 of the Omnibus Trade and Competitiveness
Act of 1988 (19 U.S.C. 3111) is amended by striking ``the
General Agreement on Tariffs and Trade'' and inserting ``the
WTO Agreement and the multilateral trade agreements (as such
terms are defined in paragraphs (9) and (4), respectively, of
section 2 of the Uruguay Round Agreements Act)''.
(8) Section 141(c)(1) of the Trade Act of 1974 (19 U.S.C.
2171(c)(1)) is amended--
(A) in subparagraph (C) by inserting ``all
negotiations on any matter considered under the
auspices of the World Trade Organization,'' after
``including''; and
(B) in subparagraph (D) by inserting ``, including
any matter considered under the auspices of the World
Trade Organization,'' after ``functions''.
(9) Section 301(a)(2)(A) of the Trade Act of 1974 (19
U.S.C. 2411(a)(2)(A)) is amended by striking ``the Contracting
Parties'' and all that follows through ``Parties,'' and
inserting ``the Dispute Settlement Body (as defined in section
121(5) of the Uruguay Round Agreements Act) has adopted a
report,''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date on which the WTO Agreement enters into force with
respect to the United States.
TITLE VII--REVENUE PROVISIONS
SEC. 700. AMENDMENT OF 1986 CODE AND TABLE OF CONTENTS.
(a) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(b) Table of Contents.--
TITLE VII--REVENUE PROVISIONS
Sec. 700. Amendment of 1986 Code and table of contents.
Subtitle A--Withholding Tax Provisions
Sec. 701. Withholding on distributions of Indian casino profits to
tribal members.
Sec. 702. Voluntary withholding on certain Federal payments and on
unemployment compensation.
Subtitle B--Provisions Relating to Estimated Taxes and Payments and
Deposits of Taxes
Sec. 711. Treatment of subpart F and section 936 income of taxpayers
using annualized method for estimated tax.
Sec. 712. Time for payments and deposits of certain taxes.
Sec. 713. Reduction in rate of interest paid on certain corporate
overpayments.
Subtitle C--Earned Income Tax Credit
Sec. 721. Extension of earned income tax credit to military personnel
stationed outside the United States.
Sec. 722. Certain nonresident aliens ineligible for earned income tax
credit.
Sec. 723. Income of prisoners disregarded in determining earned income
tax credit.
Subtitle D--Provisions Relating To Retirement Benefits
Sec. 731. Treatment of excess pension assets used for retiree health
benefits.
Sec. 732. Rounding rules for cost-of-living adjustments.
Sec. 733. Increase in inclusion of social security benefits paid to
nonresidents.
Subtitle E--Other Provisions
Sec. 741. Partnership distributions of marketable securities.
Sec. 742. Taxpayer identification numbers required at birth.
Sec. 743. Extension of Internal Revenue Service user fees.
Sec. 744. Modification of substantial understatement penalty for
corporations participating in tax shelters.
Sec. 745. Modification of authority to set terms and conditions for
savings bonds.
Subtitle F--Pension Plan Funding and Premiums
Sec. 750. Short title.
subpart a--amendments to the internal revenue code of 1986
Sec. 751. Minimum funding requirements.
Sec. 752. Limitation on changes in current liability assumptions.
Sec. 753. Anticipation of bargained benefit increases.
Sec. 754. Modification of quarterly contribution requirement.
subpart b--amendments to the employee retirement income security act of
1974
Sec. 761. Minimum funding requirements.
Sec. 762. Limitation on changes in current liability assumptions.
Sec. 763. Anticipation of bargained benefit increases.
Sec. 764. Modificasubpart c--other funding provisionsirement.
Sec. 766. Prohibition on benefit increases where plan sponsor is in
bankruptcy.
Sec. 767. Single sum distributions.
Sec. 768. Adjustments to lien for missed minimum funding contributions.
Sec. 769. Special funding rules for certain plans.
Part II--Amendments Related to Title IV of the Employee Retirement
Income Security Act of 1974
Sec. 771. Reportable events.
Sec. 772. Certain information required to be furnished to PBGC.
Sec. 773. Enforcement of minimum funding requirements.
Sec. 774. Computation of additional PBGC premium.
Sec. 775. Disclosure to participants.
Sec. 776. Missing participants.
Sec. 777. Modification of maximum guarantee for disability benefits.
Sec. 778. Procedures to facilitate distribution of termination
benefits.
Part III--Effective Dates
Sec. 781. Effective dates.
Subtitle A--Withholding Tax Provisions
SEC. 701. WITHHOLDING ON DISTRIBUTIONS OF INDIAN CASINO PROFITS TO
TRIBAL MEMBERS.
(a) In General.--Section 3402 (relating to income tax collected at
source) is amended by inserting after subsection (q) the following new
subsection:
``(r) Extension of Withholding to Certain Taxable Payments of
Indian Casino Profits.--
``(1) In general.--Every person, including an Indian tribe,
making a payment to a member of an Indian tribe from the net
revenues of any class II or class III gaming activity conducted
or licensed by such tribe shall deduct and withhold from such
payment a tax in an amount equal to such payment's
proportionate share of the annualized tax.
``(2) Exception.--The tax imposed by paragraph (1) shall
not apply to any payment to the extent that the payment, when
annualized, does not exceed an amount equal to the sum of--
``(A) the basic standard deduction (as defined in
section 63(c)) for an individual to whom section
63(c)(2)(C) applies, and
``(B) the exemption amount (as defined in section
151(d)).
``(3) Annualized tax.--For purposes of paragraph (1), the
term `annualized tax' means, with respect to any payment, the
amount of tax which would be imposed by section 1(c)
(determined without regard to any rate of tax in excess of 31
percent) on an amount of taxable income equal to the excess
of--
``(A) the annualized amount of such payment, over
``(B) the amount determined under paragraph (2).
``(4) Classes of gaming activities, etc.--For purposes of
this subsection, terms used in paragraph (1) which are defined
in section 4 of the Indian Gaming Regulatory Act (25 U.S.C.
2701 et seq.), as in effect on the date of the enactment of
this subsection, shall have the respective meanings given such
terms by such section.
``(5) Annualization.--Payments shall be placed on an
annualized basis under regulations prescribed by the Secretary.
``(6) Alternate withholding procedures.--At the election of
an Indian tribe, the tax imposed by this subsection on any
payment made by such tribe shall be determined in accordance
with such tables or computational procedures as may be
specified in regulations prescribed by the Secretary (in lieu
of in accordance with paragraphs (2) and (3)).
``(7) Coordination with other sections.--For purposes of
this chapter and so much of subtitle F as relates to this
chapter, payments to any person which are subject to
withholding under this subsection shall be treated as if they
were wages paid by an employer to an employee.''
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 1994.
SEC. 702. VOLUNTARY WITHHOLDING ON CERTAIN FEDERAL PAYMENTS AND ON
UNEMPLOYMENT COMPENSATION.
(a) In General.--Subsection (p) of section 3402 (relating to
voluntary withholding agreements) is amended to read as follows:
``(p) Voluntary Withholding Agreements.--
``(1) Certain federal payments.--
``(A) In general.--If, at the time a specified
Federal payment is made to any person, a request by
such person is in effect that such payment be subject
to withholding under this chapter, then for purposes of
this chapter and so much of subtitle F as relates to
this chapter, such payment shall be treated as if it
were a payment of wages by an employer to an employee.
``(B) Amount withheld.--The amount to be deducted
and withheld under this chapter from any payment to
which any request under subparagraph (A) applies shall
be an amount equal to the percentage of such payment
specified in such request. Such a request shall apply
to any payment only if the percentage specified is 7,
15, 28, or 31 percent or such other percentage as is
permitted under regulations prescribed by the
Secretary.
``(C) Specified federal payments.--For purposes of
this paragraph, the term `specified Federal payment'
means--
``(i) any payment of a social security
benefit (as defined in section 86(d)),
``(ii) any payment referred to in the
second sentence of section 451(d) which is
treated as insurance proceeds,
``(iii) any amount which is includible in
gross income under section 77(a), and
``(iv) any other payment made pursuant to
Federal law which is specified by the Secretary
for purposes of this paragraph.
``(D) Requests for withholding.--Rules similar to
the rules that apply to annuities under subsection
(o)(4) shall apply to requests under this paragraph and
paragraph (2).
``(2) Voluntary withholding on unemployment benefits.--If,
at the time a payment of unemployment compensation (as defined
in section 85(b)) is made to any person, a request by such
person is in effect that such payment be subject to withholding
under this chapter, then for purposes of this chapter and so
much of subtitle F as relates to this chapter, such payment
shall be treated as if it were a payment of wages by an
employer to an employee. The amount to be deducted and withheld
under this chapter from any payment to which any request under
this paragraph applies shall be an amount equal to 15 percent
of such payment.
``(3) Authority for other voluntary withholding.--The
Secretary is authorized by regulations to provide for
withholding--
``(A) from remuneration for services performed by
an employee for the employee's employer which (without
regard to this paragraph) does not constitute wages,
and
``(B) from any other type of payment with respect
to which the Secretary finds that withholding would be
appropriate under the provisions of this chapter,
if the employer and employee, or the person making and the
person receiving such other type of payment, agree to such
withholding. Such agreement shall be in such form and manner as
the Secretary may by regulations prescribe. For purposes of
this chapter (and so much of subtitle F as relates to this
chapter), remuneration or other payments with respect to which
such agreement is made shall be treated as if they were wages
paid by an employer to an employee to the extent that such
remuneration is paid or other payments are made during the
period for which the agreement is in effect.''
(b) State Law Must Permit Voluntary Withholding of Federal Income
Tax From Unemployment Compensation.--Section 3304(a) is amended by
striking ``and'' at the end of paragraph (17), by redesignating
paragraph (18) as paragraph (19), and by inserting after paragraph (17)
the following new paragraph:
``(18) Federal individual income tax from unemployment
compensation is to be deducted and withheld if an individual
receiving such compensation voluntarily requests such deduction
and withholding; and''.
(c) Withholding From Unemployment Compensation of Federal, State,
and Local Income Taxes Permitted.--
(1) Subparagraph (C) of section 3304(a)(4) is amended by
inserting after ``health insurance'' the following: ``, or the
withholding of Federal, State, or local individual income
tax,''.
(2) Subsection (f) of section 3306 is amended by
redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
respectively, and by inserting after paragraph (2) the
following new paragraph:
``(3) nothing in this subsection shall be construed to
prohibit deducting any amount from unemployment compensation
otherwise payable to an individual and using the amount so
deducted to pay for health insurance, or the withholding of
Federal, State, or local individual income tax, if the
individual elected to have such deduction made and such
deduction was made under a program approved by the Secretary of
Labor;''.
(3) Paragraph (5) of section 303(a) of the Social Security
Act is amended by inserting after ``health insurance'' the
following: ``, or the withholding of Federal, State, or local
individual income tax,''.
(d) Effective Date.--The amendments made by this section shall
apply to payments made after December 31, 1996.
Subtitle B--Provisions Relating to Estimated Taxes and Payments and
Deposits of Taxes
SEC. 711. TREATMENT OF SUBPART F AND SECTION 936 INCOME OF TAXPAYERS
USING ANNUALIZED METHOD FOR ESTIMATED TAX.
(a) Corporations.--Section 6655(e) (relating to lower required
installment where annualized income installment is less) is amended by
adding at the end the following new paragraph:
``(4) Treatment of subpart f and section 936 income.--
``(A) In general.--Any amounts required to be
included in gross income under section 936(h) or 951(a)
(and credits properly allocable thereto) shall be taken
into account in computing any annualized income
installment under paragraph (2) in a manner similar to
the manner under which partnership income inclusions
(and credits properly allocable thereto) are taken into
account.
``(B) Prior year safe harbor.--
``(i) In general.--If a taxpayer elects to
have this subparagraph apply for any taxable
year--
``(I) subparagraph (A) shall not
apply, and
``(II) for purposes of computing
any annualized income installment for
such taxable year, the taxpayer shall
be treated as having received ratably
during such taxable year items of
income and credit described in
subparagraph (A) in an amount equal to
115 percent of the amount of such items
shown on the return of the taxpayer for
the preceding taxable year (the second
preceding taxable year in the case of
the first and second required
installments for such taxable year).
``(ii) Special rule for noncontrolling
shareholder.--
``(I) In general.--If a taxpayer
making the election under clause (i) is
a noncontrolling shareholder of a
corporation, clause (i)(II) shall be
applied with respect to items of such
corporation by substituting `100
percent' for `115 percent'.
``(II) Noncontrolling
shareholder.--For purposes of subclause
(I), the term `noncontrolling
shareholder' means, with respect to any
corporation, a shareholder which (as of
the beginning of the taxable year for
which the installment is being made)
does not own (within the meaning of
section 958(a)), and is not treated as
owning (within the meaning of section
958(b)), more than 50 percent (by vote
or value) of the stock in the
corporation.''
(b) Individuals.--Section 6654(d)(2) (relating to lower required
installment where annualized income installment is less) is amended by
adding at the end the following new subparagraph:
``(D) Treatment of subpart f and section 936
income.--
``(i) In general.--Any amounts required to
be included in gross income under section
936(h) or 951(a) (and credits properly
allocable thereto) shall be taken into account
in computing any annualized income installment
under subparagraph (B) in a manner similar to
the manner under which partnership income
inclusions (and credits properly allocable
thereto) are taken into account.
``(ii) Prior year safe harbor.--If a
taxpayer elects to have this clause apply to
any taxable year--
``(I) clause (i) shall not apply,
and
``(II) for purposes of computing
any annualized income installment for
such taxable year, the taxpayer shall
be treated as having received ratably
during such taxable year items of
income and credit described in clause
(i) in an amount equal to the amount of
such items shown on the return of the
taxpayer for the preceding taxable year
(the second preceding taxable year in
the case of the first and second
required installments for such taxable
year).''
(c) Effective Date.--The amendments made by this section shall
apply for purposes of determining underpayments of estimated tax for
taxable years beginning after December 31, 1994.
SEC. 712. TIME FOR PAYMENTS AND DEPOSITS OF CERTAIN TAXES.
(a) Deposits Required for Semimonthly Periods.--Subsection (f) of
section 6302 (relating to collection authority) is amended to read as
follows:
``(f) Time for Deposit of Certain Excise Taxes.--
``(1) General rule.--Except as otherwise provided in this
subsection and subsection (e), if any person is required under
regulations to make deposits of taxes under subtitle D with
respect to semimonthly periods, such person shall make deposits
of such taxes for the period beginning on September 16 and
ending on September 26 not later than September 29. In the case
of taxes imposed by sections 4261 and 4271, this paragraph
shall not apply to periods before January 1, 1997.
``(2) Taxes on ozone depleting chemicals.--If any person is
required under regulations to make deposits of taxes under
subchapter D of chapter 38 with respect to semimonthly periods,
in lieu of paragraph (1), such person shall make deposits of
such taxes for--
``(A) the second semimonthly period in August, and
``(B) the period beginning on September 1 and
ending on September 11,
not later than September 29.
``(3) Taxpayers not required to use electronic funds
transfer.--In the case of deposits not required to be made by
electronic funds transfer, paragraphs (1) and (2) shall be
applied by substituting `September 25' for `September 26',
`September 10' for `September 11', and `September 28' for
`September 29'.
``(4) Special rule where due date on saturday or sunday.--
If, but for this paragraph, the due date under paragraph (1),
(2), or (3) would fall on a Saturday or Sunday, such due date
shall be deemed to be--
``(A) in the case of Saturday, the preceding day,
and
``(B) in the case of Sunday, the following day.''
(b) Taxes on Distilled Spirits, Wines, and Beer.--
(1) Subsection (d) of section 5061 is amended by
redesignating paragraph (4) as paragraph (5) and by inserting
after paragraph (3) the following new paragraph:
``(4) Special rule for tax due in september.--
``(A) In general.--Notwithstanding the preceding
provisions of this subsection, the taxes on distilled
spirits, wines, and beer for the period beginning on
September 16 and ending on September 26 shall be paid
not later than September 29.
``(B) Safe harbor.--The requirement of subparagraph
(A) shall be treated as met if the amount paid not
later than September 29 is not less than \11/15\ of the
taxes on distilled spirits, wines, and beer for the
period beginning on September 1 and ending on September
15.
``(C) Taxpayers not required to use electronic
funds transfer.--In the case of payments not required
to be made by electronic funds transfer, subparagraphs
(A) and (B) shall be applied by substituting `September
25' for `September 26', `September 28' for `September
29', and `\2/3\' for `\11/15\'.''
(2) Section 5061(d)(5), as redesignated by paragraph (1),
is amended--
(A) by inserting ``(or the immediately following
day where the due date described in paragraph (4) falls
on a Sunday)'' before the period at the end, and
(B) by striking ``14th day'' in the heading and
inserting ``due date''.
(c) Tobacco Products and Cigarette Papers and Tubes.--
(1) Paragraph (2) of section 5703(b) is amended by
redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Special rule for tax due in september.--
``(i) In general.--Notwithstanding the
preceding provisions of this paragraph, the
taxes on tobacco products and cigarette papers
and tubes for the period beginning on September
16 and ending on September 26 shall be paid not
later than September 29.
``(ii) Safe harbor.--The requirement of
clause (i) shall be treated as met if the
amount paid not later than September 29 is not
less than \11/15\ of the taxes on tobacco
products and cigarette papers and tubes for the
period beginning on September 1 and ending on
September 15.
``(iii) Taxpayers not required to use
electronic funds transfer.--In the case of
payments not required to be made by electronic
funds transfer, clauses (i) and (ii) shall be
applied by substituting `September 25' for
`September 26', `September 28' for `September
29', and `\2/3\' for `\11/15\'.''
(2) Section 5703(b)(2)(E), as redesignated by paragraph
(1), is amended--
(A) by inserting ``(or the immediately following
day where the due date described in subparagraph (D)
falls on a Sunday)'' before the period at the end, and
(B) by striking ``14th day'' in the heading and
inserting ``due date''.
(d) Communication Services and Airline Tickets.--Subsection (e) of
section 6302 is amended to read as follows:
``(e) Time for Deposit of Taxes on Communications Services and
Airline Tickets.--
``(1) In general.--Except as provided in paragraph (2), if,
under regulations prescribed by the Secretary, a person is
required to make deposits of any tax imposed by section 4251 or
subsection (a) or (b) of section 4261 with respect to amounts
considered collected by such person during any semimonthly
period, such deposit shall be made not later than the 3rd day
(not including Saturdays, Sundays, or legal holidays) after the
close of the 1st week of the 2nd semimonthly period following
the period to which such amounts relate.
``(2) Special rule for tax due in september.--
``(A) Amounts considered collected.--In the case of
a person required to make deposits of the tax imposed
by--
``(i) section 4251, or
``(ii) effective on January 1, 1997,
section 4261 or 4271,
with respect to amounts considered collected by such
person during any semimonthly period, the amount of
such tax included in bills rendered or tickets sold
during the period beginning on September 1 and ending
on September 11 shall be deposited not later than
September 29.
``(B) Special rule where september 29 is on
saturday or sunday.--If September 29 falls on a
Saturday or Sunday, the due date under subparagraph (A)
shall be--
``(i) in the case of Saturday, the
preceding day, and
``(ii) in the case of Sunday, the following
day.
``(C) Taxpayers not required to use electronic
funds transfer.--In the case of deposits not required
to be made by electronic funds transfer, subparagraphs
(A) and (B) shall be applied by substituting `September
10' for `September 11' and `September 28' for
`September 29'.''
(e) Effective Date.--The amendments made by this section shall take
effect on January 1, 1995.
SEC. 713. REDUCTION IN RATE OF INTEREST PAID ON CERTAIN CORPORATE
OVERPAYMENTS.
(a) In General.--Paragraph (1) of section 6621(a) (defining
overpayment rate) is amended by adding at the end the following new
flush sentence:
``To the extent that an overpayment of tax by a corporation for
any taxable period (as defined in subsection (c)(3)) exceeds
$10,000, subparagraph (B) shall be applied by substituting `0.5
percentage point' for `2 percentage points'.''
(b) Effective Date.--The amendment made by this section shall apply
for purposes of determining interest for periods after December 31,
1994.
Subtitle C--Earned Income Tax Credit
SEC. 721. EXTENSION OF EARNED INCOME TAX CREDIT TO MILITARY PERSONNEL
STATIONED OUTSIDE THE UNITED STATES.
(a) In General.--Subsection (c) of section 32 (relating to earned
income credit) is amended by adding at the end the following new
paragraph:
``(4) Treatment of military personnel stationed outside the
united states.--For purposes of paragraphs (1)(A)(ii)(I) and
(3)(E), the principal place of abode of a member of the Armed
Forces of the United States shall be treated as in the United
States during any period during which such member is stationed
outside the United States while serving on extended active duty
(as defined in section 1034(h)(3)) with the Armed Forces of the
United States.''
(b) Reporting of Military Earned Income.--Subsection (a) of section
6051 (relating to receipts for employees) is amended by striking
``and'' at the end of paragraph (8), by striking the period at the end
of paragraph (9) and by inserting ``, and'', and by inserting after
paragraph (9) the following new paragraph:
``(10) in the case of an employee who is a member of the
Armed Forces of the United States, such employee's earned
income as determined for purposes of section 32 (relating to
earned income credit).''
(c) Advance Payment of Earned Income Credit Based on Military
Earned Income.--Paragraph (1) of section 3507(c) (defining earned
income advance amount) is amended by adding at the end the following
new sentence:
``In the case of an employee who is a member of the Armed
Forces of the United States, the earned income advance amount
shall be determined by taking into account such employee's
earned income as determined for purposes of section 32.''
(d) Effective Dates.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31, 1994.
(2) Subsections (b) and (c).--The amendments made by
subsections (b) and (c) shall apply to remuneration paid after
December 31, 1994.
SEC. 722. CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR EARNED INCOME TAX
CREDIT.
(a) In General.--Paragraph (1) of section 32(c) (defining eligible
individual) is amended by adding at the end the following new
subparagraph:
``(E) Limitation on eligibility of nonresident
aliens.--The term `eligible individual' shall not
include any individual who is a nonresident alien
individual for any portion of the taxable year unless
such individual is treated for such taxable year as a
resident of the United States for purposes of this
chapter by reason of an election under subsection (g)
or (h) of section 6013.''
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 1994.
SEC. 723. INCOME OF PRISONERS DISREGARDED IN DETERMINING EARNED INCOME
TAX CREDIT.
(a) In General.--Subparagraph (B) of section 32(c)(2) (defining
earned income) is amended by striking ``and'' at the end of clause
(ii), by striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) no amount received for services
provided by an individual while the individual
is an inmate at a penal institution shall be
taken into account.''
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 1993.
Subtitle D--Provisions Relating To Retirement Benefits
SEC. 731. TREATMENT OF EXCESS PENSION ASSETS USED FOR RETIREE HEALTH
BENEFITS.
(a) 5-Year Extension.--Paragraph (5) of section 420(b) (defining
qualified transfer) is amended by striking ``1995'' and inserting
``2000''.
(b) Minimum Benefit Requirements.--Paragraph (3) of section 420(c)
(relating to requirements of plans transferring assets) is amended to
read as follows:
``(3) Maintenance of benefit requirements.--
``(A) In general.--The requirements of this
paragraph are met if each group health plan or
arrangement under which applicable health benefits are
provided provides that the applicable health benefits
provided by the employer during each taxable year
during the benefit maintenance period are substantially
the same as the applicable health benefits provided by
the employer during the taxable year immediately
preceding the taxable year of the qualified transfer.
``(B) Election to apply separately.--An employer
may elect to have this paragraph applied separately
with respect to individuals eligible for benefits under
title XVIII of the Social Security Act at any time
during the taxable year and with respect to individuals
not so eligible.
``(C) Benefit maintenance period.--For purposes of
this paragraph, the term `benefit maintenance period'
means the period of 5 taxable years beginning with the
taxable year in which the qualified transfer occurs. If
a taxable year is in 2 or more benefit maintenance
periods, this paragraph shall be applied by taking into
account the highest level of benefits required to be
provided under subparagraph (A) for such taxable
year.''
(c) Conforming Amendments.--
(1) Clause (iii) of section 420(b)(1)(C) is amended by
striking ``cost'' and inserting ``benefits''.
(2) Subparagraph (B) of section 420(e)(1) is amended to
read as follows:
``(B) Reductions for amounts previously set
aside.--The amount determined under subparagraph (A)
shall be reduced by the amount which bears the same
ratio to such amount as--
``(i) the value (as of the close of the
plan year preceding the year of the qualified
transfer) of the assets in all health benefits
accounts or welfare benefit funds (as defined
in section 419(e)(1)) set aside to pay for the
qualified current retiree health liability,
bears to
``(ii) the present value of the qualified
current retiree health liabilities for all plan
years (determined without regard to this
subparagraph).''
(3) Subparagraph (D) of section 420(e)(1) is amended by
striking ``or in calculating applicable employer cost under
subsection (c)(3)(B)'' and inserting ``and shall not be subject
to the minimum benefit requirements of subsection (c)(3)''.
(4)(A) Section 101(e)(3) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by
striking ``1991'' and inserting ``1995''.
(B) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is
amended by striking ``1991'' and inserting ``1995''.
(C) Paragraph (13) of section 408(b) of such Act (29 U.S.C.
1108(b)(13)) is amended--
(i) by striking ``1996'' and inserting ``2001'',
and
(ii) by striking ``1991'' and inserting ``1995''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsections (a) and
(c)(3) shall apply to taxable years beginning after December
31, 1995.
(2) Benefits.--The amendments made by subsections (b) and
(c)(1) and (2) shall apply to qualified transfers occurring
after the date of the enactment of this Act.
SEC. 732. ROUNDING RULES FOR COST-OF-LIVING ADJUSTMENTS.
(a) Cost-of-Living Adjustment for Compensation Limit.--Section
401(a)(17)(B) is amended to read as follows:
``(B) Cost-of-living adjustment.--The Secretary
shall adjust annually the $150,000 amount in
subparagraph (A) for increases in the cost-of-living at
the same time and in the same manner as adjustments
under section 415(d); except that the base period shall
be the calendar quarter beginning October 1, 1993, and
any increase which is not a multiple of $10,000 shall
be rounded to the next lowest multiple of $10,000.''
(b) Cost-of-Living Adjustment for Maximum Defined Benefit Amount
and Maximum Annual Addition.--
(1) In general.--Section 415(d) is amended to read as
follows:
``(d) Cost-of-Living Adjustments.--
``(1) In general.--The Secretary shall adjust annually--
``(A) the $90,000 amount in subsection (b)(1)(A),
``(B) in the case of a participant who separated
from service, the amount taken into account under
subsection (b)(1)(B), and
``(C) the $30,000 amount in subsection (c)(1)(A),
for increases in the cost-of-living in accordance with
regulations prescribed by the Secretary.
``(2) Method.--The regulations prescribed under paragraph
(1) shall provide for--
``(A) an adjustment with respect to any calendar
year based on the increase in the applicable index for
the calendar quarter ending September 30 of the
preceding calendar year over such index for the base
period, and
``(B) adjustment procedures which are similar to
the procedures used to adjust benefit amounts under
section 215(i)(2)(A) of the Social Security Act.
``(3) Base period.--For purposes of paragraph (2)--
``(A) $90,000 amount.--The base period taken into
account for purposes of paragraph (1)(A) is the
calendar quarter beginning October 1, 1986.
``(B) Separations after december 31, 1994.--The
base period taken into account for purposes of
paragraph (1)(B) with respect to individuals separating
from service with the employer after December 31, 1994,
is the calendar quarter beginning July 1 of the
calendar year preceding the calendar year in which such
separation occurs.
``(C) Separations before january 1, 1995.--The base
period taken into account for purposes of paragraph
(1)(B) with respect to individuals separating from
service with the employer before January 1, 1995, is
the calendar quarter beginning October 1 of the
calendar year preceding the calendar year in which such
separation occurs.
``(D) $30,000 amount.--The base period taken into
account for purposes of paragraph (1)(C) is the
calendar quarter beginning October 1, 1993.
``(4) Rounding.--Any increase under subparagraph (A) or (C)
of paragraph (1) which is not a multiple of $5,000 shall be
rounded to the next lowest multiple of $5,000.''
(2) Conforming amendment.--Section 415(c)(1)(A) is amended
by striking ``(or, if greater, \1/4\ of the dollar limitation
in effect under subsection (b)(1)(A))''.
(c) Cost-of-Living Adjustment for Maximum Salary Deferral.--Section
402(g)(5) is amended by inserting before the period ``; except that any
increase under this paragraph which is not a multiple of $500 shall be
rounded to the next lowest multiple of $500''.
(d) Cost-of-Living Adjustment for Eligibility for Simplified
Employee Pensions.--Section 408(k)(8) is amended by inserting before
the period ``; except that any increase in the $300 amount which is not
a multiple of $50 shall be rounded to the next lowest multiple of
$50''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to years beginning
after December 31, 1994.
(2) Rounding not to result in decreases.--The amendments
made by this section providing for the rounding of indexed
amounts shall not apply to any year to the extent the rounding
would require the indexed amount to be reduced below the amount
in effect for years beginning in 1994.
SEC. 733. INCREASE IN INCLUSION OF SOCIAL SECURITY BENEFITS PAID TO
NONRESIDENTS.
(a) In General.--Subparagraph (A) of section 871(a)(3) (relating to
taxation of Social Security benefits) is amended by striking ``one-
half'' and inserting ``85 percent''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to benefits paid after December 31, 1994, in taxable years ending
after such date.
Subtitle E--Other Provisions
SEC. 741. PARTNERSHIP DISTRIBUTIONS OF MARKETABLE SECURITIES.
(a) In General.--Section 731 (relating to extent of recognition of
gain or loss on distribution) is amended by redesignating subsection
(c) as subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Treatment of Marketable Securities.--
``(1) In general.--For purposes of subsection (a)(1) and
section 737--
``(A) the term `money' includes marketable
securities, and
``(B) such securities shall be taken into account
at their fair market value as of the date of the
distribution.
``(2) Marketable securities.--For purposes of this
subsection:
``(A) In general.--The term `marketable securities'
means financial instruments and foreign currencies
which are, as of the date of the distribution, actively
traded (within the meaning of section 1092(d)(1)).
``(B) Other property.--Such term includes--
``(i) any interest in--
``(I) a common trust fund, or
``(II) a regulated investment
company which is offering for sale or
has outstanding any redeemable security
(as defined in section 2(a)(32) of the
Investment Company Act of 1940) of
which it is the issuer,
``(ii) any financial instrument which,
pursuant to its terms or any other arrangement,
is readily convertible into, or exchangeable
for, money or marketable securities,
``(iii) any financial instrument the value
of which is determined substantially by
reference to marketable securities,
``(iv) except to the extent provided in
regulations prescribed by the Secretary, any
interest in a precious metal which, as of the
date of the distribution, is actively traded
(within the meaning of section 1092(d)(1))
unless such metal was produced, used, or held
in the active conduct of a trade or business by
the partnership,
``(v) except as otherwise provided in
regulations prescribed by the Secretary,
interests in any entity if substantially all of
the assets of such entity consist (directly or
indirectly) of marketable securities, money, or
both, and
``(vi) to the extent provided in
regulations prescribed by the Secretary, any
interest in an entity not described in clause
(v) but only to the extent of the value of such
interest which is attributable to marketable
securities, money, or both.
``(C) Financial instrument.--The term `financial
instrument' includes stocks and other equity interests,
evidences of indebtedness, options, forward or futures
contracts, notional principal contracts, and
derivatives.
``(3) Exceptions.--
``(A) In general.--Paragraph (1) shall not apply to
the distribution from a partnership of a marketable
security to a partner if--
``(i) the security was contributed to the
partnership by such partner, except to the
extent that the value of the distributed
security is attributable to marketable
securities or money contributed (directly or
indirectly) to the entity to which the
distributed security relates,
``(ii) to the extent provided in
regulations prescribed by the Secretary, the
property was not a marketable security when
acquired by such partnership, or
``(iii) such partnership is an investment
partnership and such partner is an eligible
partner thereof.
``(B) Limitation on gain recognized.--In the case
of a distribution of marketable securities to a
partner, the amount taken into account under paragraph
(1) shall be reduced (but not below zero) by the excess
(if any) of--
``(i) such partner's distributive share of
the net gain which would be recognized if all
of the marketable securities of the same class
and issuer as the distributed securities held
by the partnership were sold (immediately
before the transaction to which the
distribution relates) by the partnership for
fair market value, over
``(ii) such partner's distributive share of
the net gain which is attributable to the
marketable securities of the same class and
issuer as the distributed securities held by
the partnership immediately after the
transaction, determined by using the same fair
market value as used under clause (i).
Under regulations prescribed by the Secretary, all
marketable securities held by the partnership may be
treated as marketable securities of the same class and
issuer as the distributed securities.
``(C) Definitions relating to investment
partnerships.--For purposes of subparagraph (A)(iii):
``(i) Investment partnership.--The term
`investment partnership' means any partnership
which has never been engaged in a trade or
business and substantially all of the assets
(by value) of which have always consisted of--
``(I) money,
``(II) stock in a corporation,
``(III) notes, bonds, debentures,
or other evidences of indebtedness,
``(IV) interest rate, currency, or
equity notional principal contracts,
``(V) foreign currencies,
``(VI) interests in or derivative
financial instruments (including
options, forward or futures contracts,
short positions, and similar financial
instruments) in any asset described in
any other subclause of this clause or
in any commodity traded on or subject
to the rules of a board of trade or
commodity exchange,
``(VII) other assets specified in
regulations prescribed by the
Secretary, or
``(VIII) any combination of the
foregoing.
``(ii) Exception for certain activities.--A
partnership shall not be treated as engaged in
a trade or business by reason of--
``(I) any activity undertaken as an
investor, trader, or dealer in any
asset described in clause (i), or
``(II) any other activity specified
in regulations prescribed by the
Secretary.
``(iii) Eligible partner.--
``(I) In general.--The term
`eligible partner' means any partner
who, before the date of the
distribution, did not contribute to the
partnership any property other than
assets described in clause (i).
``(II) Exception for certain
nonrecognition transactions.--The term
`eligible partner' shall not include
the transferor or transferee in a
nonrecognition transaction involving a
transfer of any portion of an interest
in a partnership with respect to which
the transferor was not an eligible
partner.
``(iv) Look-thru of partnership tiers.--
Except as otherwise provided in regulations
prescribed by the Secretary--
``(I) a partnership shall be
treated as engaged in any trade or
business engaged in by, and as holding
(instead of a partnership interest) a
proportionate share of the assets of,
any other partnership in which the
partnership holds a partnership
interest, and
``(II) a partner who contributes to
a partnership an interest in another
partnership shall be treated as
contributing a proportionate share of
the assets of the other partnership.
If the preceding sentence does not apply under
such regulations with respect to any interest
held by a partnership in another partnership,
the interest in such other partnership shall be
treated as if it were specified in a subclause
of clause (i).
``(4) Basis of securities distributed.--
``(A) In general.--The basis of marketable
securities with respect to which gain is recognized by
reason of this subsection shall be--
``(i) their basis determined under section
732, increased by
``(ii) the amount of such gain.
``(B) Allocation of basis increase.--Any increase
in basis attributable to the gain described in
subparagraph (A)(ii) shall be allocated to marketable
securities in proportion to their respective amounts of
unrealized appreciation before such increase.
``(5) Subsection disregarded in determining basis of
partner's interest in partnership and of basis of partnership
property.--Sections 733 and 734 shall be applied as if no gain
were recognized, and no adjustment were made to the basis of
property, under this subsection.
``(6) Character of gain recognized.--In the case of a
distribution of a marketable security which is an unrealized
receivable (as defined in section 751(c)) or an inventory item
(as defined in section 751(d)(2)), any gain recognized under
this subsection shall be treated as ordinary income to the
extent of any increase in the basis of such security
attributable to the gain described in paragraph (4)(A)(ii).
``(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection, including regulations to prevent
the avoidance of such purposes.''
(b) Conforming Amendments.--
(1) The last sentence of section 737(c)(1) is amended to
read as follows: ``For purposes of determining the basis of the
distributed property (other than money), such increase shall be
treated as occurring immediately before the distribution.''
(2) Section 737 is amended by adding at the end the
following new subsection:
``(e) Marketable Securities Treated as Money.--
``For treatment of marketable
securities as money for purposes of this section, see section 731(c).''
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
distributions after the date of the enactment of this Act.
(2) Certain distributions before january 1, 1995.--The
amendments made by this section shall not apply to any
marketable security distributed before January 1, 1995, by the
partnership which held such security on July 27, 1994.
(3) Distributions in liquidation of partner's interest.--
The amendments made by this section shall not apply to the
distribution of a marketable security in liquidation of a
partner's interest in a partnership if--
(A) such liquidation is pursuant to a written
contract which was binding on July 15, 1994, and at all
times thereafter before the distribution, and
(B) such contract provides for the purchase of such
interest not later than a date certain for--
(i) a fixed value of marketable securities
that are specified in the contract, or
(ii) other property.
The preceding sentence shall not apply if the partner has the
right to elect that such distribution be made other than in
marketable securities.
(4) Distributions in complete liquidation of publicly
traded partnerships.--
(A) In general.--The amendments made by this
section shall not apply to the distribution of a
marketable security in a qualified partnership
liquidation if--
(i) the marketable securities were received
by the partnership in a nonrecognition
transaction in exchange for substantially all
of the assets of the partnership,
(ii) the marketable securities are
distributed by the partnership within 90 days
after their receipt by the partnership, and
(iii) the partnership is liquidated before
the beginning of the 1st taxable year of the
partnership beginning after December 31, 1997.
(B) Qualified partnership liquidation.--For
purposes of subparagraph (A), the term ``qualified
partnership liquidation'' means--
(i) a complete liquidation of a publicly
traded partnership (as defined in section
7704(b) of the Internal Revenue Code of 1986)
which is an existing partnership (as defined in
section 10211(c)(2) of the Revenue Act of
1987), and
(ii) a complete liquidation of a
partnership which is related to a partnership
described in clause (i) if such liquidation is
related to a complete liquidation of the
partnership described in clause (i).
(5) Marketable securities.--For purposes of this
subsection, the term ``marketable securities'' has the meaning
given such term by section 731(c) of the Internal Revenue Code
of 1986, as added by this section.
SEC. 742. TAXPAYER IDENTIFICATION NUMBERS REQUIRED AT BIRTH.
(a) Earned Income Credit.--Clause (i) of section 32(c)(3)(D) is
amended to read as follows:
``(i) In general.--The requirements of this
subparagraph are met if the taxpayer includes
the name, age, and TIN of each qualifying child
(without regard to this subparagraph) on the
return of tax for the taxable year.''
(b) Dependency Exemption.--Subsection (e) of section 6109 is
amended to read as follows:
``(e) Furnishing Number for Dependents.--Any taxpayer who claims an
exemption under section 151 for any dependent on a return for any
taxable year shall include on such return the identifying number (for
purposes of this title) of such dependent.''
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to returns for
taxable years beginning after December 31, 1994.
(2) Exception.--The amendments made by this section shall
not apply to--
(A) returns for taxable years beginning in 1995
with respect to individuals who are born after October
31, 1995, and
(B) returns for taxable years beginning in 1996
with respect to individuals who are born after November
30, 1996.
SEC. 743. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.
Subsection (c) of section 10511 of the Revenue Act of 1987
(relating to fees for requests for ruling, determination, and similar
letters) is amended by striking ``October 1, 1995'' and inserting
``October 1, 2000''.
SEC. 744. MODIFICATION OF SUBSTANTIAL UNDERSTATEMENT PENALTY FOR
CORPORATIONS PARTICIPATING IN TAX SHELTERS.
(a) In General.--Subparagraph (C) of section 6662(d)(2) (relating
to special rules in cases involving tax shelters) is amended by
redesignating clause (ii) as clause (iii) and by inserting after clause
(i) the following new clause:
``(ii) Subparagraph (b) not to apply to
corporations.--Subparagraph (B) shall not apply
to any item of a corporation which is
attributable to a tax shelter.''
(b) Technical Amendments.--
(1) Clause (i) of section 6662(d)(2)(C) is amended by
striking ``In the case of any item'' and inserting ``In the
case of any item of a taxpayer other than a corporation which
is''.
(2) Clause (iii) of section 6662(d)(2)(C), as redesignated
by subsection (a), is amended by striking ``clause (i)'' and
inserting ``this subparagraph''.
(c) Effective Date.--The amendments made by this section shall
apply to items related to transactions occurring after the date of the
enactment of this Act.
SEC. 745. MODIFICATION OF AUTHORITY TO SET TERMS AND CONDITIONS FOR
SAVINGS BONDS.
(a) In General.--Subsection (b) of section 3105 of title 31, United
States Code, is amended to read as follows:
``(b)(1) The Secretary may--
``(A) fix the investment yield for savings bonds; and
``(B) change the investment yield on an outstanding savings
bond, except that the yield on a bond for the period held may
not be decreased below the minimum yield for the period
guaranteed on the date of issue.
``(2) The Secretary may prescribe regulations providing that--
``(A) owners of savings bonds may keep the bonds after
maturity or after a period beyond maturity during which the
bonds have earned interest and continue to earn interest at
rates consistent with paragraph (1) of this subsection; and
``(B) savings bonds earning a different rate of interest
before the regulations are prescribed shall earn a rate of
interest consistent with paragraph (1).''
(b) Effective Date.--The amendment made by this section shall apply
to bonds issued after October 31, 1994.
Subtitle F--Pension Plan Funding and Premiums
SEC. 750. SHORT TITLE.
This subtitle may be cited as the ``Retirement Protection Act of
1994''.
PART I--PENSION PLAN FUNDING
Subpart A--Amendments to the Internal Revenue Code of 1986
SEC. 751. MINIMUM FUNDING REQUIREMENTS.
(a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
(1) Limitations on additional funding requirement for
certain plans.--
(A) In general.--Paragraph (1) of section 412(l)
(relating to additional funding requirements for plans
which are not multiemployer plans) is amended by
striking ``which has an unfunded current liability''
and inserting ``to which this subsection applies under
paragraph (9)''.
(B) Plans to which requirement applies.--Section
412(l) is amended by adding at the end the following
new paragraph:
``(9) Applicability of subsection.--
``(A) In general.--Except as provided in paragraph
(6)(A), this subsection shall apply to a plan for any
plan year if its funded current liability percentage
for such year is less than 90 percent.
``(B) Exception for certain plans at least 80
percent funded.--Subparagraph (A) shall not apply to a
plan for a plan year if--
``(i) the funded current liability
percentage for the plan year is at least 80
percent, and
``(ii) such percentage for each of the 2
immediately preceding plan years (or each of
the 2d and 3d immediately preceding plan years)
is at least 90 percent.
``(C) Funded current liability percentage.--For
purposes of subparagraphs (A) and (B), the term `funded
current liability percentage' has the meaning given
such term by paragraph (8)(B), except that such
percentage shall be determined for any plan year--
``(i) without regard to paragraph (8)(E),
and
``(ii) by using the rate of interest which
is the highest rate allowable for the plan year
under paragraph (7)(C).
``(D) Transition rules.--For purposes of this
paragraph:
``(i) Funded percentage for years before
1995.--The funded current liability percentage
for any plan year beginning before January 1,
1995, shall be treated as not less than 90
percent only if for such plan year the plan met
one of the following requirements (as in effect
for such year):
``(I) The full-funding limitation
under subsection (c)(7) for the plan
was zero.
``(II) The plan had no additional
funding requirement under this
subsection (or would have had no such
requirement if its funded current
liability percentage had been
determined under subparagraph (C)).
``(III) The plan's additional
funding requirement under this
subsection did not exceed the lesser of
0.5 percent of current liability or
$5,000,000.
``(ii) Special rule for 1995 and 1996.--For
purposes of determining whether subparagraph
(B) applies to any plan year beginning in 1995
or 1996, a plan shall be treated as meeting the
requirements of subparagraph (B)(ii) if the
plan met the requirements of clause (i) of this
subparagraph for any two of the plan years
beginning in 1992, 1993, and 1994 (whether or
not consecutive).''
(2) Relationship of additional funding requirement to
funding standard account charges and credits.--
(A) Clause (ii) of section 412(l)(1)(A) is amended
to read as follows:
``(ii) the sum of the charges for such plan
year under subsection (b)(2), reduced by the
sum of the credits for such plan year under
subparagraph (B) of subsection (b)(3), plus''.
(B) The last sentence in section 412(l)(1) of such
Code is amended to read as follows:
``Such increase shall not exceed the amount which, after taking
into account charges (other than the additional charge under
this subsection) and credits under subsection (b), is necessary
to increase the funded current liability percentage (taking
into account the expected increase in current liability due to
benefits accruing during the plan year) to 100 percent.''
(3) Amendment to deficit reduction contribution.--Paragraph
(2) of section 412(l) is amended--
(A) by striking ``plus'' at the end of subparagraph
(A);
(B) by striking the period at the end of
subparagraph (B) and inserting ``, plus''; and
(C) by adding at the end the following new
subparagraph:
``(C) the expected increase in current liability
due to benefits accruing during the plan year.''
(4) Increase in current liability due to change in required
assumptions.--
(A) Paragraph (3) of section 412(l) is amended by
adding at the end the following new subparagraphs:
``(D) Special rule for required changes in
actuarial assumptions.--
``(i) In general.--The unfunded old
liability amount with respect to any plan for
any plan year shall be increased by the amount
necessary to amortize the amount of additional
unfunded old liability under the plan in equal
annual installments over a period of 12 plan
years (beginning with the first plan year
beginning after December 31, 1994).
``(ii) Additional unfunded old liability.--
For purposes of clause (i), the term
`additional unfunded old liability' means the
amount (if any) by which--
``(I) the current liability of the
plan as of the beginning of the first
plan year beginning after December 31,
1994, valued using the assumptions
required by paragraph (7)(C) as in
effect for plan years beginning after
December 31, 1994, exceeds
``(II) the current liability of the
plan as of the beginning of such first
plan year, valued using the same
assumptions used under subclause (I)
(other than the assumptions required by
paragraph (7)(C)), using the prior
interest rate, and using such mortality
assumptions as were used to determine
current liability for the first plan
year beginning after December 31, 1992.
``(iii) Prior interest rate.--For purposes
of clause (ii), the term `prior interest rate'
means the rate of interest that is the same
percentage of the weighted average under
subsection (b)(5)(B)(ii)(I) for the first plan
year beginning after December 31, 1994, as the
rate of interest used by the plan to determine
current liability for the first plan year
beginning after December 31, 1992, is of the
weighted average under subsection
(b)(5)(B)(ii)(I) for such first plan year
beginning after December 31, 1992.
``(E) Optional rule for additional unfunded old
liability.--
``(i) In general.--If an employer makes an
election under clause (ii), the additional
unfunded old liability for purposes of
subparagraph (D) shall be the amount (if any)
by which--
``(I) the unfunded current
liability of the plan as of the
beginning of the first plan year
beginning after December 31, 1994,
valued using the assumptions required
by paragraph (7)(C) as in effect for
plan years beginning after December 31,
1994, exceeds
``(II) the unamortized portion of
the unfunded old liability under the
plan as of the beginning of the first
plan year beginning after December 31,
1994.
``(ii) Election.--
``(I) An employer may irrevocably
elect to apply the provisions of this
subparagraph as of the beginning of the
first plan year beginning after
December 31, 1994.
``(II) If an election is made under
this clause, the increase under
paragraph (1) for any plan year
beginning after December 31, 1994, and
before January 1, 2002, to which this
subsection applies (without regard to
this subclause) shall not be less than
the increase that would be required
under paragraph (1) if the provisions
of this title as in effect for the last
plan year beginning before January 1,
1995, had remained in effect.''
(B) Clause (i) of section 412(l)(4)(B) is amended
by inserting ``, the unamortized portion of the
additional unfunded old liability,'' after ``old
liability''.
(5) Applicable percentage for determining unfunded new
liability amount.--Subparagraph (C) of section 412(l)(4) is
amended--
(A) by striking ``.25'' and inserting ``.40'', and
(B) by striking ``35'' and inserting ``60''.
(6) Unpredictable contingent event amount.--
(A) Subparagraph (A) of section 412(l)(5) is
amended--
(i) by striking ``greater of'' and
inserting ``greatest of'' before clause (i);
(ii) by striking ``or'' at the end of
clause (i);
(iii) by striking the period at the end of
clause (ii) and inserting ``, or''; and
(iv) by adding after clause (ii) the
following new clause:
``(iii) the additional amount that would be
determined under paragraph (4)(A) if the
unpredictable contingent event benefit
liabilities were included in unfunded new
liability notwithstanding paragraph
(4)(B)(ii).''
(B) Paragraph (5) of section 412(l) is amended by
adding at the end the following new subparagraph:
``(E) Limitation.--The present value of the amounts
described in subparagraph (A) with respect to any one
event shall not exceed the unpredictable contingent
event benefit liabilities attributable to that event.''
(C) Clause (ii) of section 412(m)(4)(D) is
amended--
(i) by striking ``greater of'' and
inserting ``greatest of'' before subclause (I);
(ii) by striking ``or'' at the end of
subclause (I);
(iii) by striking the period at the end of
subclause (II) and inserting ``, or''; and
(iv) by adding after subclause (II) the
following new clause:
``(III) 25 percent of the amount
determined under subsection
(l)(5)(A)(iii) for the plan year.''
(7) Required interest rate and mortality assumptions for
determining current liability.--
(A) In general.--Subparagraph (C) of section
412(l)(7) is amended to read as follows:
``(C) Interest rate and mortality assumptions
used.--Effective for plan years beginning after
December 31, 1994--
``(i) Interest rate.--
``(I) In general.--The rate of
interest used to determine current
liability under this subsection shall
be the rate of interest used under
subsection (b)(5), except that the
highest rate in the permissible range
under subparagraph (B)(ii) thereof
shall not exceed the specified
percentage under subclause (II) of the
weighted average referred to in such
subparagraph.
``(II) Specified percentage.--For
purposes of subclause (I), the
specified percentage shall be
determined as follows:
``In the case of plan years The specified percentage is:
beginning in calendar year:
1995.......................................... 109
1996.......................................... 108
1997.......................................... 107
1998.......................................... 106
1999 and thereafter........................... 105.
``(ii) Mortality tables.--
``(I) Commissioners' standard
table.--In the case of plan years
beginning before the first plan year to
which the first tables prescribed under
subclause (II) apply, the mortality
table used in determining current
liability under this subsection shall
be the table prescribed by the
Secretary which is based on the
prevailing commissioners' standard
table (described in section
807(d)(5)(A)) used to determine
reserves for group annuity contracts
issued on January 1, 1993.
``(II) Secretarial authority.--The
Secretary may by regulation prescribe
for plan years beginning after December
31, 1999, mortality tables to be used
in determining current liability under
this subsection. Such tables shall be
based upon the actual experience of
pension plans and projected trends in
such experience. In prescribing such
tables, the Secretary shall take into
account results of available
independent studies of mortality of
individuals covered by pension plans.
``(III) Periodic review.--The
Secretary shall periodically (at least
every 5 years) review any tables in
effect under this subsection and shall,
to the extent the Secretary determines
necessary, by regulation update the
tables to reflect the actual experience
of pension plans and projected trends
in such experience.
``(iii) Separate mortality tables for the
disabled.--Notwithstanding clause (ii)--
``(I) In general.--In the case of
plan years beginning after December 31,
1995, the Secretary shall establish
mortality tables which may be used (in
lieu of the tables under clause (ii))
to determine current liability under
this subsection for individuals who are
entitled to benefits under the plan on
account of disability. The Secretary
shall establish separate tables for
individuals whose disabilities occur in
plan years beginning before January 1,
1995, and for individuals whose
disabilities occur in plan years
beginning on or after such date.
``(II) Special rule for
disabilities occurring after 1994.--In
the case of disabilities occurring in
plan years beginning after December 31,
1994, the tables under subclause (I)
shall apply only with respect to
individuals described in such subclause
who are disabled within the meaning of
title II of the Social Security Act and
the regulations thereunder.
``(III) Plan years beginning in
1995.--In the case of any plan year
beginning in 1995, a plan may use its
own mortality assumptions for
individuals who are entitled to
benefits under the plan on account of
disability.''
(B) Amortization of unfunded mortality increase
amount.--
(i) In general.--Paragraph (2) of section
412(l), as amended by paragraph (3), is amended
by striking ``plus'' at the end of subparagraph
(B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and
by adding at the end the following new
subparagraph:
``(D) the aggregate of the unfunded mortality
increase amounts.''
(ii) Unfunded mortality increase amount.--
Section 412(l), as amended by paragraph (1), is
amended by adding at the end the following new
paragraph:
``(10) Unfunded mortality increase amount.--
``(A) In general.--The unfunded mortality increase
amount with respect to each unfunded mortality increase
is the amount necessary to amortize such increase in
equal annual installments over a period of 10 plan
years (beginning with the first plan year for which a
plan uses any new mortality table issued under
paragraph (7)(C)(ii)(II) or (III)).
``(B) Unfunded mortality increase.--For purposes of
subparagraph (A), the term `unfunded mortality
increase' means an amount equal to the excess of--
``(i) the current liability of the plan for
the first plan year for which a plan uses any
new mortality table issued under paragraph
(7)(C)(ii)(II) or (III), over
``(ii) the current liability of the plan
for such plan year which would have been
determined if the mortality table in effect for
the preceding plan year had been used.''
(iii) Conforming amendment.--Clause (i) of
section 412(l)(4)(B), as amended by paragraph
(4)(B), is amended by inserting ``the
unamortized portion of each unfunded mortality
increase,'' after ``additional unfunded old
liability,''.
(8) Transition rule.--Section 412(l), as amended by
paragraph (7), is amended by adding at the end the following
new paragraph:
``(11) Phase-in of increases in funding required by
retirement protection act of 1994.--
``(A) In general.--For any applicable plan year, at
the election of the employer, the increase under
paragraph (1) shall not exceed the greater of--
``(i) the increase that would be required
under paragraph (1) if the provisions of this
title as in effect for plan years beginning
before January 1, 1995, had remained in effect,
or
``(ii) the amount which, after taking into
account charges (other than the additional
charge under this subsection) and credits under
subsection (b), is necessary to increase the
funded current liability percentage (taking
into account the expected increase in current
liability due to benefits accruing during the
plan year) for the applicable plan year to a
percentage equal to the sum of the initial
funded current liability percentage of the plan
plus the applicable number of percentage points
for such applicable plan year.
``(B) Applicable number of percentage points.--
``(i) Initial funded current liability
percentage of 75 percent or less.--Except as
provided in clause (ii), for plans with an
initial funded current liability percentage of
75 percent or less, the applicable number of
percentage points for the applicable plan year
is:
``In the case
The applicable
of applicable
number of
plan years
percentage
beginning in:
points is:
1995.................. 3
1996.................. 6
1997.................. 9
1998.................. 12
1999.................. 15
2000.................. 19
2001.................. 24.
``(ii) Other cases.--In the case of a plan
to which this clause applies, the applicable
number of percentage points for any such
applicable plan year is the sum of--
``(I) 2 percentage points;
``(II) the applicable number of
percentage points (if any) under this
clause for the preceding applicable
plan year;
``(III) the product of .10
multiplied by the excess (if any) of
(a) 85 percentage points over (b) the
sum of the initial funded current
liability percentage and the number
determined under subclause (II);
``(IV) for applicable plan years
beginning in 2000, 1 percentage point;
and
``(V) for applicable plan years
beginning in 2001, 2 percentage points.
``(iii) Plans to which clause (ii)
applies.--
``(I) In general.--Clause (ii)
shall apply to a plan for an applicable
plan year if the initial funded current
liability percentage of such plan is
more than 75 percent.
``(II) Plans initially under clause
(i).--In the case of a plan which (but
for this subclause) has an initial
funded current liability percentage of
75 percent or less, clause (ii) (and
not clause (i)) shall apply to such
plan with respect to applicable plan
years beginning after the first
applicable plan year for which the sum
of the initial funded current liability
percentage and the applicable number of
percentage points (determined under
clause (i)) exceeds 75 percent. For
purposes of applying clause (ii) to
such a plan, the initial funded current
liability percentage of such plan shall
be treated as being the sum referred to
in the preceding sentence.
``(C) Definitions.--For purposes of this paragraph:
``(i) The term `applicable plan year' means
a plan year beginning after December 31, 1994,
and before January 1, 2002.
``(ii) The term `initial funded current
liability percentage' means the funded current
liability percentage as of the first day of the
first plan year beginning after December 31,
1994.''
(9) Liquidity requirement.--
(A) In general.--Section 412(m) is amended by
redesignating paragraph (5) as paragraph (6) and by
inserting after paragraph (4) the following new
paragraph:
``(5) Liquidity requirement.--
``(A) In general.--A plan to which this paragraph
applies shall be treated as failing to pay the full
amount of any required installment to the extent that
the value of the liquid assets paid in such installment
is less than the liquidity shortfall (whether or not
such liquidity shortfall exceeds the amount of such
installment required to be paid but for this
paragraph).
``(B) Plans to which paragraph applies.--This
paragraph shall apply to a defined benefit plan (other
than a multiemployer plan or a plan described in
subsection (l)(6)(A)) which--
``(i) is required to pay installments under
this subsection for a plan year, and
``(ii) has a liquidity shortfall for any
quarter during such plan year.
``(C) Period of underpayment.--For purposes of
paragraph (1), any portion of an installment that is
treated as not paid under subparagraph (A) shall
continue to be treated as unpaid until the close of the
quarter in which the due date for such installment
occurs.
``(D) Limitation on increase.--If the amount of any
required installment is increased by reason of
subparagraph (A), in no event shall such increase
exceed the amount which, when added to prior
installments for the plan year, is necessary to
increase the funded current liability percentage
(taking into account the expected increase in current
liability due to benefits accruing during the plan
year) to 100 percent.
``(E) Definitions.--For purposes of this paragraph:
``(i) Liquidity shortfall.--The term
`liquidity shortfall' means, with respect to
any required installment, an amount equal to
the excess (as of the last day of the quarter
for which such installment is made) of the base
amount with respect to such quarter over the
value (as of such last day) of the plan's
liquid assets.
``(ii) Base amount.--
``(I) In general.--The term `base
amount' means, with respect to any
quarter, an amount equal to 3 times the
sum of the adjusted disbursements from
the plan for the 12 months ending on
the last day of such quarter.
``(II) Special rule.--If the amount
determined under clause (i) exceeds an
amount equal to 2 times the sum of the
adjusted disbursements from the plan
for the 36 months ending on the last
day of the quarter and an enrolled
actuary certifies to the satisfaction
of the Secretary that such excess is
the result of nonrecurring
circumstances, the base amount with
respect to such quarter shall be
determined without regard to amounts
related to those nonrecurring
circumstances.
``(iii) Disbursements from the plan.--The
term `disbursements from the plan' means all
disbursements from the trust, including
purchases of annuities, payments of single sums
and other benefits, and administrative
expenses.
``(iv) Adjusted disbursements.--The term
`adjusted disbursements' means disbursements
from the plan reduced by the product of--
``(I) the plan's funded current
liability percentage (as defined in
subsection (l)(8)) for the plan year,
and
``(II) the sum of the purchases of
annuities, payments of single sums, and
such other disbursements as the
Secretary shall provide in regulations.
``(v) Liquid assets.--The term `liquid
assets' means cash, marketable securities and
such other assets as specified by the Secretary
in regulations.
``(vi) Quarter.--The term `quarter' means,
with respect to any required installment, the
3-month period preceding the month in which the
due date for such installment occurs.
``(F) Regulations.--The Secretary may prescribe
such regulations as are necessary to carry out this
paragraph.''
(B) Excise tax on unpaid liquidity shortfall.--
(i) Subsection (e) of section 4971 is
amended by striking ``(a) or (b)'' wherever it
appears and inserting ``(a), (b), or (f)''.
(ii) Section 4971 is amended by
redesignating subsection (f) as subsection (g)
and adding a new subsection (f) to read as
follows:
``(f) Failure To Pay Liquidity Shortfall.--
``(1) In general.--In the case of a plan to which section
412(m)(5) applies, there is hereby imposed a tax of 10 percent
of the excess (if any) of--
``(A) the amount of the liquidity shortfall for any
quarter, over
``(B) the amount of such shortfall which is paid by
the required installment under section 412(m) for such
quarter (but only if such installment is paid on or
before the due date for such installment).
``(2) Additional tax.--If the plan has a liquidity
shortfall as of the close of any quarter and as of the close of
each of the following 4 quarters, there is hereby imposed a tax
equal to 100 percent of the amount on which tax was imposed by
paragraph (1) for such first quarter.
``(3) Definitions and special rule.--
``(A) Liquidity shortfall; quarter.--For purposes
of this subsection, the terms `liquidity shortfall' and
`quarter' have the respective meanings given such terms
by section 412(m)(5).
``(B) Special rule.--If the tax imposed by
paragraph (2) is paid with respect to any liquidity
shortfall for any quarter, no further tax shall be
imposed by this subsection on such shortfall for such
quarter.''
(C) Treatment of failure to make certain payments
if plan has liquidity shortfall.--Section 401(a) is
amended by adding at the end the following new
paragraph:
``(32) Treatment of failure to make certain payments if
plan has liquidity shortfall.--
``(A) In general.--A trust forming part of a
pension plan to which section 412(m)(5) applies shall
not be treated as failing to constitute a qualified
trust under this section merely because such plan
ceases to make any payment described in subparagraph
(B) during any period that such plan has a liquidity
shortfall (as defined in section 412(m)(5)).
``(B) Payments described.--A payment is described
in this subparagraph if such payment is--
``(i) any payment, in excess of the monthly
amount paid under a single life annuity (plus
any social security supplements described in
the last sentence of section 411(a)(9)), to a
participant or beneficiary whose annuity
starting date (as defined in section 417(f)(2))
occurs during the period referred to in
subparagraph (A),
``(ii) any payment for the purchase of an
irrevocable commitment from an insurer to pay
benefits, and
``(iii) any other payment specified by the
Secretary by regulations.
``(C) Period of shortfall.--For purposes of this
paragraph, a plan has a liquidity shortfall during the
period that there is an underpayment of an installment
under section 412(m) by reason of paragraph (5)(A)
thereof.''
(10) Amendment to definition of full-funding limitation.--
(A) Subparagraph (A) of section 412(c)(7) is
amended by inserting ``(including the expected increase
in current liability due to benefits accruing during
the plan year)'' after ``current liability'' in clause
(i).
(B) Section 412(c)(7) is amended by adding at the
end the following new subparagraph:
``(E) Minimum amount.--
``(i) In general.--In no event shall the
full-funding limitation determined under
subparagraph (A) be less than the excess (if
any) of--
``(I) 90 percent of the current
liability of the plan (including the
expected increase in current liability
due to benefits accruing during the
plan year), over
``(II) the value of the plan's
assets determined under paragraph (2).
``(ii) Current liability; assets.--For
purposes of clause (i)--
``(I) the term `current liability'
has the meaning given such term by
subsection (l)(7) (without regard to
subparagraph (D) thereof), and
``(II) assets shall not be reduced
by any credit balance in the funding
standard account.''
(C) Subparagraph (B) of section 412(c)(7) is
amended to read as follows:
``(B) Current liability.--For purposes of
subparagraph (D) and subclause (I) of subparagraph
(A)(i), the term `current liability' has the meaning
given such term by subsection (l)(7) (without regard to
subparagraphs (C) and (D) thereof) and using the rate
of interest used under subsection (b)(5)(B).''
(11) Reference to act.--Section 404(g)(4) is amended by
striking ``the Single-Employer Pension Plan Amendments Act of
1986'' and inserting ``the Retirement Protection Act of 1994''.
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning after December 31, 1994.
(2) Reference.--The amendment made by subsection (a)(11)
shall take effect on the date of the enactment of this Act.
SEC. 752. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.
(a) In General.--Paragraph (5) of section 412(c) is amended--
(1) by striking ``If the funding method'' and inserting the
following:
``(A) In general.--If the funding method'', and
(2) by adding at the end the following new subparagraph:
``(B) Approval required for certain changes in
assumptions by certain single-employer plans subject to
additional funding requirement.--
``(i) In general.--No actuarial assumption
(other than the assumptions described in
subsection (l)(7)(C)) used to determine the
current liability for a plan to which this
subparagraph applies may be changed without the
approval of the Secretary.
``(ii) Plans to which subparagraph
applies.--This subparagraph shall apply to a
plan only if--
``(I) the plan is a defined benefit
plan (other than a multiemployer plan)
to which title IV of the Employee
Retirement Income Security Act of 1974
applies;
``(II) the aggregate unfunded
vested benefits as of the close of the
preceding plan year (as determined
under section 4006(a)(3)(E)(iii) of the
Employee Retirement Income Security Act
of 1974) of such plan and all other
plans maintained by the contributing
sponsors (as defined in section
4001(a)(13) of such Act) and members of
such sponsors' controlled groups (as
defined in section 4001(a)(14) of such
Act) which are covered by title IV of
such Act (disregarding plans with no
unfunded vested benefits) exceed
$50,000,000; and
``(III) the change in assumptions
(determined after taking into account
any changes in interest rate and
mortality table) results in a decrease
in the unfunded current liability of
the plan for the current plan year that
exceeds $50,000,000, or that exceeds
$5,000,000 and that is 5 percent or
more of the current liability of the
plan before such change.''
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
apply to changes in assumptions for plan years beginning after
October 28, 1993.
(2) Certain changes cease to be effective.--In the case of
changes in assumptions for plan years beginning after December
31, 1992, and on or before October 28, 1993, such changes shall
cease to be effective for plan years beginning after December
31, 1994, if--
(A) such change would have required the approval of
the Secretary of the Treasury had such amendment
applied to such change, and
(B) such change is not so approved.
SEC. 753. ANTICIPATION OF BARGAINED BENEFIT INCREASES.
(a) In General.--Section 412(c) is amended by adding at the end the
following new paragraph:
``(12) Anticipation of benefit increases effective in the
future.--In determining projected benefits, the funding method
of a collectively bargained plan described in section 413(a)
(other than a multiemployer plan) shall anticipate benefit
increases scheduled to take effect during the term of the
collective bargaining agreement applicable to the plan.''
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 1994, with respect to
collective bargaining agreements in effect on or after January 1, 1995.
SEC. 754. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.
(a) In General.--Paragraph (1) of section 412(m) is amended--
(1) by inserting ``which has a funded current liability
percentage (as defined in subsection (l)(8)) for the preceding
plan year of less than 100 percent'' before ``fails'', and
(2) by striking ``any plan year'' and inserting ``the plan
year''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after the date of enactment of this Act.
SEC. 755. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE CONTRIBUTIONS.
(a) In General.--Section 4972(c) is amended by adding at the end
the following new paragraph:
``(6) Exceptions.--In determining the amount of
nondeductible contributions for any taxable year, there shall
not be taken into account--
``(A) contributions that would be deductible under
section 404(a)(1)(D) if the plan had more than 100
participants if--
``(i) the plan is covered under section
4021 of the Employee Retirement Income Security
Act of 1974, and
``(ii) the plan is terminated under section
4041(b) of such Act on or before the last day
of the taxable year, and
``(B) contributions to 1 or more defined
contribution plans which are not deductible when
contributed solely because of section 404(a)(7), but
only to the extent such contributions do not exceed 6
percent of compensation (within the meaning of section
404(a)) paid or accrued (during the taxable year for
which the contributions were made) to beneficiaries
under the plans.
If 1 or more defined benefit plans were taken into account in
determining the amount allowable as a deduction under section
404 for contributions to any defined contribution plan,
subparagraph (B) shall apply only if such defined benefit plans
are described in section 404(a)(1)(D). For purposes of
subparagraph (B), the deductible limits under section 404(a)(7)
shall first be applied to amounts contributed to a defined
benefit plan and then to amounts described in subparagraph
(B).''
(b) Effective Date.--
(1) Section 4972(c)(6)(a).--Section 4972(c)(6)(A) of the
Internal Revenue Code of 1986 (as added by this section) shall
apply to taxable years ending on or after the date of enactment
of this Act.
(2) Section 4972(c)(6)(b).--Section 4972(c)(6)(B) of such
Code (as added by this section) shall apply to taxable years
ending on or after December 31, 1992.
Subpart B--Amendments to the Employee Retirement Income Security Act of
1974
SEC. 761. MINIMUM FUNDING REQUIREMENTS.
(a) Amendments to Additional Funding Requirements for Single-
Employer Plans.--
(1) Limitations on additional funding requirement for
certain plans.--
(A) In general.--Paragraph (1) of section 302(d) of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1082(d)) is amended by striking ``which has an
unfunded current liability'' and inserting ``to which
this subsection applies under paragraph (9)''.
(B) Plans to which requirement applies.--Section
302(d) of such Act is amended by adding at the end the
following new paragraph:
``(9) Applicability of subsection.--
``(A) In general.--Except as provided in paragraph
(6)(A), this subsection shall apply to a plan for any
plan year if its funded current liability percentage
for such year is less than 90 percent.
``(B) Exception for certain plans at least 80
percent funded.--Subparagraph (A) shall not apply to a
plan for a plan year if--
``(i) the funded current liability
percentage for the plan year is at least 80
percent, and
``(ii) such percentage for each of the 2
immediately preceding plan years (or each of
the 2d and 3d immediately preceding plan years)
is at least 90 percent.
``(C) Funded current liability percentage.--For
purposes of subparagraphs (A) and (B), the term `funded
current liability percentage' has the meaning given
such term by paragraph (8)(B), except that such
percentage shall be determined for any plan year--
``(i) without regard to paragraph (8)(E),
and
``(ii) by using the rate of interest which
is the highest rate allowable for the plan year
under paragraph (7)(C).
``(D) Transition rules.--For purposes of this
paragraph:
``(i) Funded percentage for years before
1995.--The funded current liability percentage
for any plan year beginning before January 1,
1995, shall be treated as not less than 90
percent only if for such plan year the plan met
one of the following requirements (as in effect
for such year):
``(I) The full-funding limitation
under subsection (c)(7) for the plan
was zero.
``(II) The plan had no additional
funding requirement under this
subsection (or would have had no such
requirement if its funded current
liability percentage had been
determined under subparagraph (C)).
``(III) The plan's additional
funding requirement under this
subsection did not exceed the lesser of
0.5 percent of current liability or
$5,000,000.
``(ii) Special rule for 1995 and 1996.--For
purposes of determining whether subparagraph
(B) applies to any plan year beginning in 1995
or 1996, a plan shall be treated as meeting the
requirements of subparagraph (B)(ii) if the
plan met the requirements of clause (i) of this
subparagraph for any two of the plan years
beginning in 1992, 1993, and 1994 (whether or
not consecutive).''
(2) Relationship of additional funding requirement to
funding standard account charges and credits.--
(A) Clause (ii) of section 302(d)(1)(A) of such Act
is amended to read as follows:
``(ii) the sum of the charges for such plan
year under subsection (b)(2), reduced by the
sum of the credits for such plan year under
subparagraph (B) of subsection (b)(3), plus''.
(B) The last sentence in section 302(d)(1) of such
Act is amended to read as follows:
``Such increase shall not exceed the amount which, after taking
into account charges (other than the additional charge under
this subsection) and credits under subsection (b), is necessary
to increase the funded current liability percentage (taking
into account the expected increase in current liability due to
benefits accruing during the plan year) to 100 percent.''
(3) Amendment to deficit reduction contribution.--Paragraph
(2) of section 302(d) of such Act is amended--
(A) by striking ``plus'' at the end of subparagraph
(A);
(B) by striking the period at the end of
subparagraph (B) and inserting ``, plus''; and
(C) by adding at the end the following new
subparagraph:
``(C) the expected increase in current liability
due to benefits accruing during the plan year.''
(4) Increase in current liability due to change in required
assumptions.--
(A) Paragraph (3) of section 302(d) of such Act is
amended by adding at the end the following new
subparagraphs:
``(D) Special rule for required changes in
actuarial assumptions.--
``(i) In general.--The unfunded old
liability amount with respect to any plan for
any plan year shall be increased by the amount
necessary to amortize the amount of additional
unfunded old liability under the plan in equal
annual installments over a period of 12 plan
years (beginning with the first plan year
beginning after December 31, 1994).
``(ii) Additional unfunded old liability.--
For purposes of clause (i), the term
`additional unfunded old liability' means the
amount (if any) by which--
``(I) the current liability of the
plan as of the beginning of the first
plan year beginning after December 31,
1994, valued using the assumptions
required by paragraph (7)(C) as in
effect for plan years beginning after
December 31, 1994, exceeds
``(II) the current liability of the
plan as of the beginning of such first
plan year, valued using the same
assumptions used under subclause (I)
(other than the assumptions required by
paragraph (7)(C)), using the prior
interest rate, and using such mortality
assumptions as were used to determine
current liability for the first plan
year beginning after December 31, 1992.
``(iii) Prior interest rate.--For purposes
of clause (ii), the term `prior interest rate'
means the rate of interest that is the same
percentage of the weighted average under
subsection (b)(5)(B)(ii)(I) for the first plan
year beginning after December 31, 1994, as the
rate of interest used by the plan to determine
current liability for the first plan year
beginning after December 31, 1992, is of the
weighted average under subsection
(b)(5)(B)(ii)(I) for such first plan year
beginning after December 31, 1992.
``(E) Optional rule for additional unfunded old
liability.--
``(i) In general.--If an employer makes an
election under clause (ii), the additional
unfunded old liability for purposes of
subparagraph (D) shall be the amount (if any)
by which--
``(I) the unfunded current
liability of the plan as of the
beginning of the first plan year
beginning after December 31, 1994,
valued using the assumptions required
by paragraph (7)(C) as in effect for
plan years beginning after December 31,
1994, exceeds
``(II) the unamortized portion of
the unfunded old liability under the
plan as of the beginning of the first
plan year beginning after December 31,
1994.
``(ii) Election.--
``(I) An employer may irrevocably
elect to apply the provisions of this
subparagraph as of the beginning of the
first plan year beginning after
December 31, 1994.
``(II) If an election is made under
this clause, the increase under
paragraph (1) for any plan year
beginning after December 31, 1994, and
before January 1, 2002, to which this
subsection applies (without regard to
this subclause) shall not be less than
the increase that would be required
under paragraph (1) if the provisions
of this title as in effect for the last
plan year beginning before January 1,
1995, had remained in effect.''
(B) Clause (i) of section 302(d)(4)(B) of such Act
is amended by inserting ``, the unamortized portion of
the additional unfunded old liability,'' after ``old
liability''.
(5) Applicable percentage for determining unfunded new
liability amount.--Subparagraph (C) of section 302(d)(4) of
such Act is amended--
(A) by striking ``.25'' and inserting ``.40'', and
(B) by striking ``35'' and inserting ``60''.
(6) Unpredictable contingent event amount.--
(A) Subparagraph (A) of section 302(d)(5) of such
Act is amended--
(i) by striking ``greater of'' and
inserting ``greatest of'' before clause (i);
(ii) by striking ``or'' at the end of
clause (i);
(iii) by striking the period at the end of
clause (ii) and inserting ``, or''; and
(iv) by adding after clause (ii) the
following new clause:
``(iii) the additional amount that would be
determined under paragraph (4)(A) if the
unpredictable contingent event benefit
liabilities were included in unfunded new
liability notwithstanding paragraph
(4)(B)(ii).''
(B) Paragraph (5) of section 302(d) of such Act is
amended by adding at the end the following new
subparagraph:
``(E) Limitation.--The present value of the amounts
described in subparagraph (A) with respect to any one
event shall not exceed the unpredictable contingent
event benefit liabilities attributable to that event.''
(C) Clause (ii) of section 302(e)(4)(D) of such Act
is amended--
(i) by striking ``greater of'' and
inserting ``greatest of'' before subclause (I);
(ii) by striking ``or'' at the end of
subclause (I);
(iii) by striking the period at the end of
subclause (II) and inserting ``, or''; and
(iv) by adding after subclause (II) the
following new clause:
``(III) 25 percent of the amount
determined under subsection
(d)(5)(A)(iii) for the plan year.''
(7) Required interest rate and mortality assumptions for
determining current liability.--
(A) In general.--Subparagraph (C) of section
302(d)(7) of such Act is amended to read as follows:
``(C) Interest rate and mortality assumptions
used.--Effective for plan years beginning after
December 31, 1994--
``(i) Interest rate.--
``(I) In general.--The rate of
interest used to determine current
liability under this subsection shall
be the rate of interest used under
subsection (b)(5), except that the
highest rate in the permissible range
under subparagraph (B)(ii) thereof
shall not exceed the specified
percentage under subclause (II) of the
weighted average referred to in such
subparagraph.
``(II) Specified percentage.--For
purposes of subclause (I), the
specified percentage shall be
determined as follows:
``In the case of plan years The specified percentage is:
beginning in calendar year:
1995.......................................... 109
1996.......................................... 108
1997.......................................... 107
1998.......................................... 106
1999 and thereafter........................... 105.
``(ii) Mortality tables.--
``(I) Commissioners' standard
table.--In the case of plan years
beginning before the first plan year to
which the first tables prescribed under
subclause (II) apply, the mortality
table used in determining current
liability under this subsection shall
be the table prescribed by the
Secretary of the Treasury which is
based on the prevailing commissioners'
standard table (described in section
807(d)(5)(A) of the Internal Revenue
Code of 1986) used to determine
reserves for group annuity contracts
issued on January 1, 1993.
``(II) Secretarial authority.--The
Secretary of the Treasury may by
regulation prescribe for plan years
beginning after December 31, 1999,
mortality tables to be used in
determining current liability under
this subsection. Such tables shall be
based upon the actual experience of
pension plans and projected trends in
such experience. In prescribing such
tables, the Secretary of the Treasury
shall take into account results of
available independent studies of
mortality of individuals covered by
pension plans.
``(III) Periodic review.--The
Secretary of the Treasury shall
periodically (at least every 5 years)
review any tables in effect under this
subsection and shall, to the extent the
Secretary determines necessary, by
regulation update the tables to reflect
the actual experience of pension plans
and projected trends in such
experience.
``(iii) Separate mortality tables for the
disabled.--Notwithstanding clause (ii)--
``(I) In general.--In the case of
plan years beginning after December 31,
1995, the Secretary of the Treasury
shall establish mortality tables which
may be used (in lieu of the tables
under clause (ii)) to determine current
liability under this subsection for
individuals who are entitled to
benefits under the plan on account of
disability. Such Secretary shall
establish separate tables for
individuals whose disabilities occur in
plan years beginning before January 1,
1995, and for individuals whose
disabilities occur in plan years
beginning on or after such date.
``(II) Special rule for
disabilities occurring after 1994.--In
the case of disabilities occurring in
plan years beginning after December 31,
1994, the tables under subclause (I)
shall apply only with respect to
individuals described in such subclause
who are disabled within the meaning of
title II of the Social Security Act and
the regulations thereunder.
``(III) Plan years beginning in
1995.--In the case of any plan year
beginning in 1995, a plan may use its
own mortality assumptions for
individuals who are entitled to
benefits under the plan on account of
disability.''
(B) Amortization of unfunded mortality increase
amount.--
(i) In general.--Paragraph (2) of section
302(d) of such Act, as amended by paragraph
(3), is amended by striking ``plus'' at the end
of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting ``,
and'', and by adding at the end the following
new subparagraph:
``(D) the aggregate of the unfunded mortality
increase amounts.''
(ii) Unfunded mortality increase amount.--
Section 302(d) of such Act, as amended by
paragraph (1), is amended by adding at the end
the following new paragraph:
``(10) Unfunded mortality increase amount.--
``(A) In general.--The unfunded mortality increase
amount with respect to each unfunded mortality increase
is the amount necessary to amortize such increase in
equal annual installments over a period of 10 plan
years (beginning with the first plan year for which a
plan uses any new mortality table issued under
paragraph (7)(C)(ii)(II) or (III)).
``(B) Unfunded mortality increase.--For purposes of
subparagraph (A), the term `unfunded mortality
increase' means an amount equal to the excess of--
``(i) the current liability of the plan for
the first plan year for which a plan uses any
new mortality table issued under paragraph
(7)(C)(ii)(II) or (III), over
``(ii) the current liability of the plan
for such plan year which would have been
determined if the mortality table in effect for
the preceding plan year had been used.''
(iii) Conforming amendment.--Clause (i) of
section 302(d)(4)(B) of such Act, as amended by
paragraph (4)(B), is amended by inserting ``the
unamortized portion of each unfunded mortality
increase,'' after ``additional unfunded old
liability,''.
(8) Transition rule.--Section 302(d) of such Act, as
amended by paragraph (7), is amended by adding at the end the
following new paragraph:
``(11) Phase-in of increases in funding required by
retirement protection act of 1994.--
``(A) In general.--For any applicable plan year, at
the election of the employer, the increase under
paragraph (1) shall not exceed the greater of--
``(i) the increase that would be required
under paragraph (1) if the provisions of this
title as in effect for plan years beginning
before January 1, 1995, had remained in effect,
or
``(ii) the amount which, after taking into
account charges (other than the additional
charge under this subsection) and credits under
subsection (b), is necessary to increase the
funded current liability percentage (taking
into account the expected increase in current
liability due to benefits accruing during the
plan year) for the applicable plan year to a
percentage equal to the sum of the initial
funded current liability percentage of the plan
plus the applicable number of percentage points
for such applicable plan year.
``(B) Applicable number of percentage points.--
``(i) Initial funded current liability
percentage of 75 percent or less.--Except as
provided in clause (ii), for plans with an
initial funded current liability percentage of
75 percent or less, the applicable number of
percentage points for the applicable plan year
is:
``In the case
The applicable
of applicable
number of
plan years
percentage
beginning in:
points is:
1995.................. 3
1996.................. 6
1997.................. 9
1998.................. 12
1999.................. 15
2000.................. 19
2001.................. 24.
``(ii) Other cases.--In the case of a plan
to which this clause applies, the applicable
number of percentage points for any such
applicable plan year is the sum of--
``(I) 2 percentage points;
``(II) the applicable number of
percentage points (if any) under this
clause for the preceding applicable
plan year;
``(III) the product of .10
multiplied by the excess (if any) of
(a) 85 percentage points over (b) the
sum of the initial funded current
liability percentage and the number
determined under subclause (II);
``(IV) for applicable plan years
beginning in 2000, 1 percentage point;
and
``(V) for applicable plan years
beginning in 2001, 2 percentage points.
``(iii) Plans to which clause (ii)
applies.--
``(I) In general.--Clause (ii)
shall apply to a plan for an applicable
plan year if the initial funded current
liability percentage of such plan is
more than 75 percent.
``(II) Plans initially under clause
(i).--In the case of a plan which (but
for this subclause) has an initial
funded current liability percentage of
75 percent or less, clause (ii) (and
not clause (i)) shall apply to such
plan with respect to applicable plan
years beginning after the first
applicable plan year for which the sum
of the initial funded current liability
percentage and the applicable number of
percentage points (determined under
clause (i)) exceeds 75 percent. For
purposes of applying clause (ii) to
such a plan, the initial funded current
liability percentage of such plan shall
be treated as being the sum referred to
in the preceding sentence.
``(C) Definitions.--For purposes of this
paragraph--
``(i) The term `applicable plan year' means
a plan year beginning after December 31, 1994,
and before January 1, 2002.
``(ii) The term `initial funded current
liability percentage' means the funded current
liability percentage as of the first day of the
first plan year beginning after December 31,
1994.''
(9) Liquidity requirement.--
(A) In general.--Section 302(e) of such Act is
amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Liquidity requirement.--
``(A) In general.--A plan to which this paragraph
applies shall be treated as failing to pay the full
amount of any required installment to the extent that
the value of the liquid assets paid in such installment
is less than the liquidity shortfall (whether or not
such liquidity shortfall exceeds the amount of such
installment required to be paid but for this
paragraph).
``(B) Plans to which paragraph applies.--This
paragraph shall apply to a defined benefit plan (other
than a multiemployer plan or a plan described in
subsection (d)(6)(A)) which--
``(i) is required to pay installments under
this subsection for a plan year, and
``(ii) has a liquidity shortfall for any
quarter during such plan year.
``(C) Period of underpayment.--For purposes of
paragraph (1), any portion of an installment that is
treated as not paid under subparagraph (A) shall
continue to be treated as unpaid until the close of the
quarter in which the due date for such installment
occurs.
``(D) Limitation on increase.--If the amount of any
required installment is increased by reason of
subparagraph (A), in no event shall such increase
exceed the amount which, when added to prior
installments for the plan year, is necessary to
increase the funded current liability percentage
(taking into account the expected increase in current
liability due to benefits accruing during the plan
year) to 100 percent.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Liquidity shortfall.--The term
`liquidity shortfall' means, with respect to
any required installment, an amount equal to
the excess (as of the last day of the quarter
for which such installment is made) of the base
amount with respect to such quarter over the
value (as of such last day) of the plan's
liquid assets.
``(ii) Base amount.--
``(I) In general.--The term `base
amount' means, with respect to any
quarter, an amount equal to 3 times the
sum of the adjusted disbursements from
the plan for the 12 months ending on
the last day of such quarter.
``(II) Special rule.--If the amount
determined under clause (i) exceeds an
amount equal to 2 times the sum of the
adjusted disbursements from the plan
for the 36 months ending on the last
day of the quarter and an enrolled
actuary certifies to the satisfaction
of the Secretary of the Treasury that
such excess is the result of
nonrecurring circumstances, the base
amount with respect to such quarter
shall be determined without regard to
amounts related to those nonrecurring
circumstances.
``(iii) Disbursements from the plan.--The
term `disbursements from the plan' means all
disbursements from the trust, including
purchases of annuities, payments of single sums
and other benefits, and administrative
expenses.
``(iv) Adjusted disbursements.--The term
`adjusted disbursements' means disbursements
from the plan reduced by the product of--
``(I) the plan's funded current
liability percentage (as defined in
subsection (d)(8)) for the plan year,
and
``(II) the sum of the purchases of
annuities, payments of single sums, and
such other disbursements as the
Secretary of the Treasury shall provide
in regulations.
``(v) Liquid assets.--The term `liquid
assets' means cash, marketable securities and
such other assets as specified by the Secretary
of the Treasury in regulations.
``(vi) Quarter.--The term `quarter' means,
with respect to any required installment, the
3-month period preceding the month in which the
due date for such installment occurs.
``(F) Regulations.--The Secretary of the Treasury
may prescribe such regulations as are necessary to
carry out this paragraph.''
(B) Limitation on distributions other than life
annuities paid by the plan.--
(i) Section 206 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1056) is
amended by adding at the end the following new
subsection:
``(e) Limitation on Distributions Other Than Life Annuities Paid By
The Plan.--
``(1) In general.--Notwithstanding any other provision of
this part, the fiduciary of a pension plan that is subject to
the additional funding requirements of section 302(d) shall not
permit a prohibited payment to be made from a plan during a
period in which such plan has a liquidity shortfall (as defined
in section 302(e)(5)).
``(2) Prohibited payment.--For purposes of paragraph (1),
the term `prohibited payment' means--
``(A) any payment, in excess of the monthly amount
paid under a single life annuity (plus any social
security supplements described in the last sentence of
section 204(b)(1)(G)), to a participant or beneficiary
whose annuity starting date (as defined in section
205(h)(2)), that occurs during the period referred to
in paragraph (1),
``(B) any payment for the purchase of an
irrevocable commitment from an insurer to pay benefits,
and
``(C) any other payment specified by the Secretary
of the Treasury by regulations.
``(3) Period of shortfall.--For purposes of this
subsection, a plan has a liquidity shortfall during the period
that there is an underpayment of an installment under section
302(e) by reason of paragraph (5)(A) thereof.
``(4) Coordination with other provisions.--Compliance with
this subsection shall not constitute a violation of any other
provision of this Act.''
(ii) Section 502 of such Act is amended by
adding at the end a new subsection (m) to read
as follows:
``(m) In the case of a distribution to a pension plan participant
or beneficiary in violation of section 206(e) by a plan fiduciary, the
Secretary shall assess a penalty against such fiduciary in an amount
equal to the value of the distribution. Such penalty shall not exceed
$10,000 for each such distribution.''
(10) Amendment to definition of full-funding limitation.--
(A) Subparagraph (A) of section 302(c)(7) of such
Act is amended by inserting ``(including the expected
increase in current liability due to benefits accruing
during the plan year)'' after ``current liability'' in
clause (i).
(B) Section 302(c)(7) of such Act is amended by
adding at the end the following new subparagraph:
``(E) Minimum amount.--
``(i) In general.--In no event shall the
full-funding limitation determined under
subparagraph (A) be less than the excess (if
any) of--
``(I) 90 percent of the current
liability of the plan (including the
expected increase in current liability
due to benefits accruing during the
plan year), over
``(II) the value of the plan's
assets determined under paragraph (2).
``(ii) Current liability; assets.--For
purposes of clause (i)--
``(I) the term `current liability'
has the meaning given such term by
subsection (d)(7) (without regard to
subparagraph (D) thereof), and
``(II) assets shall not be reduced
by any credit balance in the funding
standard account.''
(C) Subparagraph (B) of section 302(c)(7) of such
Act is amended to read as follows:
``(B) Current liability.--For purposes of
subparagraph (D) and subclause (I) of subparagraph
(A)(i), the term `current liability' has the meaning
given such term by subsection (d)(7) (without regard to
subparagraphs (C) and (D) thereof) and using the rate
of interest used under subsection (b)(5)(B).''
(11) Definition of contributing sponsor.--Paragraph (13) of
section 4001(a) of such Act (29 U.S.C. 1301(a)(13)) is amended
by striking ``means a person--'' and all that follows and
inserting ``means a person described in section 302(c)(11)(A)
of this Act (without regard to section 302(c)(11)(B) of this
Act) or section 412(c)(11)(A) of the Internal Revenue Code of
1986 (without regard to section 412(c)(11)(B) of such Code).''
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning after December 31, 1994.
(2) Contributing sponsor.--The amendment made by subsection
(a)(11) shall be effective as if included in the Pension
Protection Act.
SEC. 762. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.
(a) In General.--Paragraph (5) of section 302(c) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(5)) is
amended--
(1) by striking ``If the funding method'' and inserting the
following:
``(A) In general.--If the funding method'', and
(2) by adding at the end the following new subparagraph:
``(B) Approval required for certain changes in
assumptions by certain single-employer plans subject to
additional funding requirement.--
``(i) In general.--No actuarial assumption
(other than the assumptions described in
subsection (d)(7)(C)) used to determine the
current liability for a plan to which this
subparagraph applies may be changed without the
approval of the Secretary of the Treasury.
``(ii) Plans to which subparagraph
applies.--This subparagraph shall apply to a
plan only if--
``(I) the plan is a defined benefit
plan (other than a multiemployer plan)
to which title IV applies;
``(II) the aggregate unfunded
vested benefits as of the close of the
preceding plan year (as determined
under section 4006(a)(3)(E)(iii)) of
such plan and all other plans
maintained by the contributing sponsors
(as defined in section 4001(a)(13)) and
members of such sponsors' controlled
groups (as defined in section
4001(a)(14)) which are covered by title
IV (disregarding plans with no unfunded
vested benefits) exceed $50,000,000;
and
``(III) the change in assumptions
(determined after taking into account
any changes in interest rate and
mortality table) results in a decrease
in the unfunded current liability of
the plan for the current plan year that
exceeds $50,000,000, or that exceeds
$5,000,000 and that is 5 percent or
more of the current liability of the
plan before such change.''
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
apply to changes in assumptions for plan years beginning after
October 28, 1993.
(2) Certain changes cease to be effective.--In the case of
changes in assumptions for plan years beginning after December
31, 1992, and on or before October 28, 1993, such changes shall
cease to be effective for plan years beginning after December
31, 1994, if--
(A) such change would have required the approval of
the Secretary of the Treasury had such amendment
applied to such change, and
(B) such change is not so approved.
SEC. 763. ANTICIPATION OF BARGAINED BENEFIT INCREASES.
(a) In General.--Section 302(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1082(c)) is amended by adding at the
end the following new paragraph:
``(12) Anticipation of benefit increases effective in the
future.--In determining projected benefits, the funding method
of a collectively bargained plan described in section 413(a) of
the Internal Revenue Code of 1986 (other than a multiemployer
plan) shall anticipate benefit increases scheduled to take
effect during the term of the collective bargaining agreement
applicable to the plan.''
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 1994 with respect to
collective bargaining agreements in effect on or after January 1, 1995.
SEC. 764. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.
(a) In General.--Paragraph (1) of section 302(e) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1082(e)) is amended--
(1) by inserting ``which has a funded current liability
percentage (as defined in subsection (d)(8)) for the preceding
plan year of less than 100 percent'' before ``fails'', and
(2) by striking ``any plan year'' and inserting ``the plan
year''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after the date of enactment of this Act.
Subpart C--Other Funding Provisions
SEC. 766. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS IN
BANKRUPTCY.
(a) Amendment to the Employee Retirement Income Security Act of
1974.--Section 204 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1054) is amended by redesignating subsection (i) as (j)
and inserting after subsection (h) the following new subsection:
``(i)(1) In the case of a plan described in paragraph (3) which is
maintained by an employer that is a debtor in a case under title 11,
United States Code, or similar Federal or State law, no amendment of
the plan which increases the liabilities of the plan by reason of--
``(A) any increase in benefits,
``(B) any change in the accrual of benefits, or
``(C) any change in the rate at which benefits become
nonforfeitable under the plan,
with respect to employees of the debtor, shall be effective prior to
the effective date of such employer's plan of reorganization.
``(2) Paragraph (1) shall not apply to any plan amendment that--
``(A) the Secretary of the Treasury determines to be
reasonable and that provides for only de minimis increases in
the liabilities of the plan with respect to employees of the
debtor,
``(B) only repeals an amendment described in section
302(c)(8),
``(C) is required as a condition of qualification under
part I of subchapter D of chapter 1 of the Internal Revenue
Code of 1986, or
``(D) was adopted prior to, or pursuant to a collective
bargaining agreement entered into prior to, the date on which
the employer became a debtor in a case under title 11, United
States Code, or similar Federal or State law.
``(3) This subsection shall apply only to plans (other than
multiemployer plans) covered under section 4021 of this Act for which
the funded current liability percentage (within the meaning of section
302(d)(8) of this Act) is less than 100 percent after taking into
account the effect of the amendment.
``(4) For purposes of this subsection, the term `employer' has the
meaning set forth in section 302(c)(11)(A), without regard to section
302(c)(11)(B).''
(b) Amendment to Internal Revenue Code of 1986.--Section 401(a), as
amended by section 751 of this Act, is further amended by adding at the
end the following new paragraph:
``(33) Prohibition on benefit increases while sponsor is in
bankruptcy.--
``(A) In general.--A trust which is part of a plan
to which this paragraph applies shall not constitute a
qualified trust under this section if an amendment to
such plan is adopted while the employer is a debtor in
a case under title 11, United States Code, or similar
Federal or State law, if such amendment increases
liabilities of the plan by reason of--
``(i) any increase in benefits,
``(ii) any change in the accrual of
benefits, or
``(iii) any change in the rate at which
benefits become nonforfeitable under the plan,
with respect to employees of the debtor, and such
amendment is effective prior to the effective date of
such employer's plan of reorganization.
``(B) Exceptions.--This paragraph shall not apply
to any plan amendment if--
``(i) the plan, were such amendment to take
effect, would have a funded current liability
percentage (as defined in section 412(l)(8)) of
100 percent or more,
``(ii) the Secretary determines that such
amendment is reasonable and provides for only
de minimis increases in the liabilities of the
plan with respect to employees of the debtor,
``(iii) such amendment only repeals an
amendment described in subsection 412(c)(8), or
``(iv) such amendment is required as a
condition of qualification under this part.
``(C) Plans to which this paragraph applies.--This
paragraph shall apply only to plans (other than
multiemployer plans) covered under section 4021 of the
Employee Retirement Income Security Act of 1974.
``(D) Employer.--For purposes of this paragraph,
the term `employer' means the employer referred to in
section 412(c)(11) (without regard to subparagraph (B)
thereof).''
(c) Effective Date of Plan Amendment.--Section 4022 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by
inserting at the end the following new subsection:
``(f) For purposes of this section, the effective date of a plan
amendment described in section 204(i)(1) shall be the effective date of
the plan of reorganization of the employer described in section
204(i)(1) or, if later, the effective date stated in such amendment.''
(d) Effective Date.--The amendments made by this section shall
apply to plan amendments adopted on or after the date of enactment of
this Act.
SEC. 767. SINGLE SUM DISTRIBUTIONS.
(a) Amendments to Internal Revenue Code of 1986 Relating to Minimum
Benefits.--
(1) Determination of present value for purposes of
restrictions on mandatory distributions.--Subparagraph (B) of
section 411(a)(11) is amended to read as follows:
``(B) Determination of present value.--For purposes
of subparagraph (A), the present value shall be
calculated in accordance with section 417(e)(3).''
(2) Determination of present value for purposes of
restrictions on cash-outs.--Paragraph (3) of section 417(e) is
amended to read as follows:
``(3) Determination of present value.--
``(A) In general.--
``(i) Present value.--Except as provided in
subparagraph (B), for purposes of paragraphs
(1) and (2), the present value shall not be
less than the present value calculated by using
the applicable mortality table and the
applicable interest rate.
``(ii) Definitions.--For purposes of clause
(i)--
``(I) Applicable mortality table.--
The term `applicable mortality table'
means the table prescribed by the
Secretary. Such table shall be based on
the prevailing commissioners' standard
table (described in section
807(d)(5)(A)) used to determine
reserves for group annuity contracts
issued on the date as of which present
value is being determined (without
regard to any other subparagraph of
section 807(d)(5)).
``(II) Applicable interest rate.--
The term `applicable interest rate'
means the annual rate of interest on
30-year Treasury securities for the
month before the date of distribution
or such other time as the Secretary may
by regulations prescribe.
``(B) Exception.--In the case of a distribution
from a plan that was adopted and in effect before the
date of the enactment of the Retirement Protection Act
of 1994, the present value of any distribution made
before the earlier of--
``(i) the later of the date a plan
amendment applying subparagraph (A) is adopted
or made effective, or
``(ii) the first day of the first plan year
beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs (1) and
(2), using the interest rate determined under the
regulations of the Pension Benefit Guaranty Corporation
for determining the present value of a lump sum
distribution on plan termination that were in effect on
September 1, 1993, and using the provisions of the plan
as in effect on the day before such date of enactment;
but only if such provisions of the plan met the
requirements of section 417(e)(3) as in effect on the
day before such date of enactment.''
(b) Amendments to Internal Revenue Code of 1986 Relating to Maximum
Benefits.--Subparagraph (E) of section 415(b)(2) is amended--
(1) by redesignating clauses (ii) and (iii) as clauses
(iii) and (iv), respectively,
(2) by striking clause (i) and inserting the following new
clauses:
``(i) Except as provided in clause (ii),
for purposes of adjusting any benefit or
limitation under subparagraph (B) or (C), the
interest rate assumption shall not be less than
the greater of 5 percent or the rate specified
in the plan.
``(ii) For purposes of adjusting the
benefit or limitation of any form of benefit
subject to section 417(e)(3), the applicable
interest rate (as defined in section 417(e)(3))
shall be substituted for `5 percent' in clause
(i).'', and
(3) by adding at the end the following new clause:
``(v) For purposes of adjusting any benefit
or limitation under subparagraph (B), (C), or
(D), the mortality table used shall be the
table prescribed by the Secretary. Such table
shall be based on the prevailing commissioners'
standard table (described in section
807(d)(5)(A)) used to determine reserves for
group annuity contracts issued on the date the
adjustment is being made (without regard to any
other subparagraph of section 807(d)(5)).''
(c) Amendments to Employee Retirement Income Security Act of
1974.--
(1) Determination of present value for purposes of
restrictions on mandatory distributions.--Section 203(e)(2) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1053(e)(2)) is amended to read as follows:
``(2) For purposes of paragraph (1), the present value shall be
calculated in accordance with section 205(g)(3).''
(2) Determination of present value for purposes of
restrictions on cash-outs.--Section 205(g)(3) of such Act (29
U.S.C. 1055(g)(3)) is amended to read as follows:
``(3) Determination of present value.--
``(A) In general.--
``(i) Present value.--Except as provided in
subparagraph (B), for purposes of paragraphs
(1) and (2), the present value shall not be
less than the present value calculated by using
the applicable mortality table and the
applicable interest rate.
``(ii) Definitions.--For purposes of clause
(i)--
``(I) Applicable mortality table.--
The term `applicable mortality table'
means the table prescribed by the
Secretary of the Treasury. Such table
shall be based on the prevailing
commissioners' standard table
(described in section 807(d)(5)(A) of
the Internal Revenue Code of 1986) used
to determine reserves for group annuity
contracts issued on the date as of
which present value is being determined
(without regard to any other
subparagraph of section 807(d)(5) of
such Code).
``(II) Applicable interest rate.--
The term `applicable interest rate'
means the annual rate of interest on
30-year Treasury securities for the
month before the date of distribution
or such other time as the Secretary of
the Treasury may by regulations
prescribe.
``(B) Exception.--In the case of a distribution
from a plan that was adopted and in effect prior to the
date of the enactment of the Retirement Protection Act
of 1994, the present value of any distribution made
before the earlier of--
``(i) the later of when a plan amendment
applying subparagraph (A) is adopted or made
effective, or
``(ii) the first day of the first plan year
beginning after December 31, 1999,
shall be calculated, for purposes of paragraphs (1) and
(2), using the interest rate determined under the
regulations of the Pension Benefit Guaranty Corporation
for determining the present value of a lump sum
distribution on plan termination that were in effect on
September 1, 1993, and using the provisions of the plan
as in effect on the day before such date of enactment;
but only if such provisions of the plan met the
requirements of section 205(g)(3) as in effect on the
day before such date of enactment.''
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to plan years and limitation years beginning after
December 31, 1994; except that an employer may elect to treat
the amendments made by this section as being effective on or
after the date of the enactment of this Act.
(2) No reduction in accrued benefits.--A participant's
accrued benefit shall not be considered to be reduced in
violation of section 411(d)(6) of the Internal Revenue Code of
1986 or section 204(g) of the Employee Retirement Income
Security Act of 1974 merely because (A) the benefit is
determined in accordance with section 417(e)(3)(A) of such
Code, as amended by this Act, or section 205(g)(3) of the
Employee Retirement Income Security Act of 1974, as amended by
this Act, or (B) the plan applies section 415(b)(2)(E) of such
Code, as amended by this Act.
(3) Section 415.--
(A) No reduction required.--An accrued benefit
shall not be required to be reduced below the accrued
benefit as of the last day of the last plan year
beginning before January 1, 1995, merely because of the
amendments made by subsection (b).
(B) Timing of plan amendment.--A plan that operates
in accordance with the amendments made by subsection
(b) shall not be treated as failing to satisfy section
401(a) of the Internal Revenue Code of 1986 or as not
being operated in accordance with the provisions of the
plan until such date as the Secretary of the Treasury
provides merely because the plan has not been amended
to include the amendments made by subsection (b).
SEC. 768. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) Clarification of applicability of provision.--Paragraph
(2) of section 412(n) is amended by adding at the end the
following new sentence: ``This subsection shall not apply to
any plan to which section 4021 of the Employee Retirement
Income Security Act of 1974 does not apply (as such section is
in effect on the date of the enactment of the Retirement
Protection Act of 1994).''.
(2) Repeal of $1,000,000 offset.--Paragraph (3) of section
412(n) is amended to read as follows:
``(3) Amount of lien.--For purposes of paragraph (1), the
amount of the lien shall be equal to the aggregate unpaid
balance of required installments and other payments required
under this section (including interest)--
``(A) for plan years beginning after 1987, and
``(B) for which payment has not been made before
the due date.''
(3) Repeal of 60-day delay.--Section 412(n)(4)(B) is
amended by striking ``60th day following the''.
(b) Amendments to the Employee Retirement Income Security Act of
1974.--
(1) Clarification of applicability of provision.--Section
302(f)(1) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1082(f)(1)) is amended by striking ``to which
this section applies'' and inserting ``covered under section
4021 of this Act''.
(2) Repeal of $1,000,000 offset.--Paragraph (3) of section
302(f) of such Act is amended to read as follows:
``(3) Amount of lien.--For purposes of paragraph (1), the
amount of the lien shall be equal to the aggregate unpaid
balance of required installments and other payments required
under this section (including interest)--
``(A) for plan years beginning after 1987, and
``(B) for which payment has not been made before
the due date.''
(3) Repeal of 60-day delay.--Section 302(f)(4)(B) of such
Act is amended by striking ``60th day following the''.
(c) Effective Date.--The amendments made by this section shall be
effective for installments and other payments required under section
412 of the Internal Revenue Code of 1986 or under part 3 of subtitle B
of the Employee Retirement Income Security Act of 1974 that become due
on or after the date of enactment.
SEC. 769. SPECIAL FUNDING RULES FOR CERTAIN PLANS.
(a) Funding Rules Not To Apply to Certain Plans.--Any changes made
by this Act to section 412 of the Internal Revenue Code of 1986 or to
part 3 of subtitle B of title I of the Employee Retirement Income
Security Act of 1974 shall not apply to--
(1) a plan which is, on the date of enactment of this Act,
subject to a restoration payment schedule order issued by the
Pension Benefit Guaranty Corporation that meets the
requirements of section 1.412(c)(1)-3 of the Treasury
Regulations, or
(2) a plan established by an affected air carrier (as
defined under section 4001(a)(14)(C)(ii)(I) of such Act) and
assumed by a new plan sponsor pursuant to the terms of a
written agreement with the Pension Benefit Guaranty Corporation
dated January 5, 1993, and approved by the United States
Bankruptcy Court for the District of Delaware on December 30,
1992.
(b) Change in Actuarial Method.--Any amortization installments for
bases established under section 412(b) of the Internal Revenue Code of
1986 and section 302(b) of the Employee Retirement Income Security Act
of 1974 for plan years beginning after December 31, 1987, and before
January 1, 1993, by reason of nonelective changes under the frozen
entry age actuarial cost method shall not be included in the
calculation of offsets under section 412(l)(1)(A)(ii) of such Code and
section 302(d)(1)(A)(ii) of such Act for the 1st 5 plan years beginning
after December 31, 1994.
PART II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974
SEC. 771. REPORTABLE EVENTS.
(a) Responsibility for Reportable Events Reporting.--Section
4043(a) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1343(a)) is amended--
(1) in the first sentence, by inserting ``or the
contributing sponsor'' before ``knows or has reason to know'';
(2) in the first sentence, by inserting ``, unless a notice
otherwise required under this subsection has already been
provided with respect to such event'' before the period at the
end; and
(3) by striking the last sentence.
(b) Notification That Event Is About To Occur.--Section 4043 of
such Act is amended by redesignating subsections (b), (c), and (d) as
(c), (d), and (e), respectively, and by inserting after subsection (a)
the following new subsection:
``(b)(1) The requirements of this subsection shall be applicable to
a contributing sponsor if, as of the close of the preceding plan year--
``(A) the aggregate unfunded vested benefits (as determined
under section 4006(a)(3)(E)(iii)) of plans subject to this
title which are maintained by such sponsor and members of such
sponsor's controlled groups (disregarding plans with no
unfunded vested benefits) exceed $50,000,000, and
``(B) the funded vested benefit percentage for such plans
is less than 90 percent.
For purposes of subparagraph (B), the funded vested benefit percentage
means the percentage which the aggregate value of the assets of such
plans bears to the aggregate vested benefits of such plans (determined
in accordance with section 4006(a)(3)(E)(iii)).
``(2) This subsection shall not apply to an event if the
contributing sponsor, or the member of the contributing sponsor's
controlled group to which the event relates, is--
``(A) a person subject to the reporting requirements of
section 13 or 15(d) of the Securities Exchange Act of 1934, or
``(B) a subsidiary (as defined for purposes of such Act) of
a person subject to such reporting requirements.
``(3) No later than 30 days prior to the effective date of an event
described in paragraph (9), (10), (11), (12), or (13) of subsection
(c), a contributing sponsor to which the requirements of this
subsection apply shall notify the corporation that the event is about
to occur.
``(4) The corporation may waive the requirement of this subsection
with respect to any or all reportable events with respect to any
contributing sponsor.''
(c) New Reportable Events.--Subsection (c) of section 4043 of such
Act (as redesignated by subsection (b)) is amended--
(1) by striking the ``or'' at the end of paragraph (8);
(2) by striking paragraph (9); and
(3) by inserting after paragraph (8) the following new
paragraphs:
``(9) when, as a result of an event, a person ceases to be
a member of the controlled group;
``(10) when a contributing sponsor or a member of a
contributing sponsor's controlled group liquidates in a case
under title 11, United States Code, or under any similar
Federal law or law of a State or political subdivision of a
State;
``(11) when a contributing sponsor or a member of a
contributing sponsor's controlled group declares an
extraordinary dividend (as defined in section 1059(c) of the
Internal Revenue Code of 1986) or redeems, in any 12-month
period, an aggregate of 10 percent or more of the total
combined voting power of all classes of stock entitled to vote,
or an aggregate of 10 percent of more of the total value of
shares of all classes of stock, of a contributing sponsor and
all members of its controlled group;
``(12) when, in any 12-month period, an aggregate of 3
percent or more of the benefit liabilities of a plan covered by
this title and maintained by a contributing sponsor or a member
of its controlled group are transferred to a person that is not
a member of the controlled group or to a plan or plans
maintained by a person or persons that are not such a
contributing sponsor or a member of its controlled group; or
``(13) when any other event occurs that may be indicative
of a need to terminate the plan and that is prescribed by the
corporation in regulations.''
(d) Disclosure Exemption.--Section 4043 of such Act is amended by
adding at the end the following new subsection:
``(f) Any information or documentary material submitted to the
corporation pursuant to this section shall be exempt from disclosure
under section 552 of title 5, United States Code, and no such
information or documentary material may be made public, except as may
be relevant to any administrative or judicial action or proceeding.
Nothing in this section is intended to prevent disclosure to either
body of Congress or to any duly authorized committee or subcommittee of
the Congress.''
(e) Technical and Conforming Amendments.--
(1) Subsection (a) of section 4043 of such Act, and
subsections (d) and (e) of such section 4043 (as redesignated
by subsection (b)), are each amended by striking ``subsection
(b)'' each place it appears and inserting ``subsection (c)''.
(2) Section 4042(a)(3) of such Act is amended by striking
``4043(b)(7)'' and inserting ``4043(c)(7)''.
(f) Effective Date.--The amendments made by this section shall be
effective for events occurring 60 days or more after the date of
enactment of this Act.
SEC. 772. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO PBGC.
(a) General Rule.--Subtitle A of title IV of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) is
amended by adding at the end the following new section:
``SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMATION.
``(a) Information Required.--Each person described in subsection
(b) shall provide the corporation annually, on or before a date
specified by the corporation in regulations, with--
``(1) such records, documents, or other information that
the corporation specifies in regulations as necessary to
determine the liabilities and assets of plans covered by this
title; and
``(2) copies of such person's audited (or, if unavailable,
unaudited) financial statements, and such other financial
information as the corporation may prescribe in regulations.
``(b) Persons Required To Provide Information.--The persons covered
by subsection (a) are each contributing sponsor, and each member of a
contributing sponsor's controlled group, of a single-employer plan
covered by this title, if--
``(1) the aggregate unfunded vested benefits at the end of
the preceding plan year (as determined under section
4006(a)(3)(E)(iii)) of plans maintained by the contributing
sponsor and the members of its controlled group exceed
$50,000,000 (disregarding plans with no unfunded vested
benefits);
``(2) the conditions for imposition of a lien described in
section 302(f)(1)(A) and (B) of this Act or section
412(n)(1)(A) and (B) of the Internal Revenue Code of 1986 have
been met with respect to any plan maintained by the
contributing sponsor or any member of its controlled group; or
``(3) minimum funding waivers in excess of $1,000,000 have
been granted with respect to any plan maintained by the
contributing sponsor or any member of its controlled group, and
any portion thereof is still outstanding.
``(c) Information Exempt From Disclosure Requirements.--Any
information or documentary material submitted to the corporation
pursuant to this section shall be exempt from disclosure under section
552 of title 5, United States Code, and no such information or
documentary material may be made public, except as may be relevant to
any administrative or judicial action or proceeding. Nothing in this
section is intended to prevent disclosure to either body of Congress or
to any duly authorized committee or subcommittee of the Congress.''
(b) Clerical Amendment.--The table of contents contained in section
1 of such Act is amended by inserting after the item relating to
section 4009 the following new item:
``Sec. 4010. Authority to require certain information.''
(c) Effective Date.--The amendments made by this section shall be
effective on the date of enactment of this Act.
SEC. 773. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.
(a) In General.--Paragraph (1) of section 4003(e) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is
amended--
(1) by inserting ``(A)'' after ``enforce''; and
(2) by striking the period after ``title'' and inserting
``, and (B) in the case of a plan which is covered under this
title (other than a multiemployer plan) and for which the
conditions for imposition of a lien described in section
302(f)(1)(A) and (B) of this Act or section 412(n)(1)(A) and
(B) of the Internal Revenue Code of 1986 have been met, section
302 of this Act and section 412 of such Code.''
(b) Effective Date.--The amendments made by this section shall be
effective for installments and other payments required under section
302 of the Employee Retirement Income Security Act of 1974 or section
412 of the Internal Revenue Code of 1986 that become due on or after
the date of the enactment of this Act.
SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM.
(a) Phase-Out of Variable Rate Premium Cap.--
(1) In general.--Subparagraph (E) of section 4006(a)(3) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1306(a)(3)(E)) is amended by striking clause (iv), and by
redesignating clause (v) as clause (iv).
(2) Effective date.--
(A) In general.--The amendments made by this
subsection shall be effective for plan years beginning
on or after July 1, 1994.
(B) Transition rule.--In the case of plan years
beginning on or after July 1, 1994, and before July 1,
1996, the additional premium payable with respect to
any participant by reason of the amendments made by
this section shall not exceed the sum of--
(i) $53, and
(ii) the product derived by multiplying--
(I) the excess (if any) of the
amount determined under clause (i) of
section 4006(a)(3)(E) of the Employee
Retirement Income Security Act of 1974,
over $53, by
(II) the applicable percentage.
For purposes of this subparagraph, the applicable
percentage shall be the percentage specified in the
following table:
For the plan year beginning:
The applicable
on or after but before percentage is:
July 1, 1994............... July 1, 1995.............. 20 percent
July 1, 1995............... July 1, 1996.............. 60 percent
(b) Interest Rate and Asset Valuation.--
(1) Interest rate.--Subclause (II) of section
4006(a)(3)(E)(iii) of the Employee Retirement Income Security
Act of 1974 is amended--
(A) by striking ``80 percent'' and inserting ``the
applicable percentage'', and
(B) by adding at the end the following new
sentence: ``For purposes of this subclause, the
applicable percentage is 80 percent for plan years
beginning before July 1, 1997, 85 percent for plan
years beginning after June 30, 1997, and before the 1st
plan year to which the first tables prescribed under
section 302(d)(7)(C)(ii)(II) apply, and 100 percent for
such 1st plan year and subsequent plan years.''
(2) Asset valuation.--Clause (iii) of section 4006(a)(3)(E)
of such Act is amended--
(A) by inserting ``or (III)'' after ``subclause
(II)'' in subclause (I), and
(B) by adding at the end the following new
subclause:
``(III) In the case of any plan
year for which the applicable
percentage under subclause (II) is 100
percent, the value of the plan's assets
used in determining unfunded current
liability under subclause (I) shall be
their fair market value.''
(3) Effective date.--The amendments made by this subsection
shall apply to plan years beginning after the date of the
enactment of this Act.
(c) Transition Rule for Certain Regulated Public Utilities.--In the
case of a regulated public utility described in section
7701(a)(33)(A)(i) of the Internal Revenue Code of 1986, the amendments
made by this section shall not apply to plan years beginning before the
earlier of--
(1) January 1, 1998, or
(2) the date the regulated public utility begins to collect
from utility customers rates that reflect the costs incurred or
projected to be incurred for additional premiums under section
4006(a)(3)(E) of the Employee Retirement Income Security Act of
1974 pursuant to final and nonappealable determinations by all
public utility commissions (or other authorities having
jurisdiction over the rates and terms of service by the
regulated public utility) that the costs are just and
reasonable and recoverable from customers of the regulated
public utility.
SEC. 775. DISCLOSURE TO PARTICIPANTS.
(a) Participant Notice Requirement.--Subtitle A of title IV of the
Employee Retirement Income Security Act of 1974 (as amended by section
772 of this Act) is further amended by adding at the end the following
new section:
``SEC. 4011. NOTICE TO PARTICIPANTS.
``(a) In General.--The plan administrator of a plan subject to the
additional premium under section 4006(a)(3)(E) shall provide, in a form
and manner and at such time as prescribed in regulations of the
corporation, notice to plan participants and beneficiaries of the
plan's funding status and the limits on the corporation's guaranty
should the plan terminate while underfunded. Such notice shall be
written in a manner so as to be understood by the average plan
participant.
``(b) Exception.--Subsection (a) shall not apply to any plan to
which section 302(d) does not apply for the plan year by reason of
paragraph (9) thereof.''
(b) Clerical Amendment.--The table of contents contained in section
1 of such Act is amended by inserting after the item relating to
section 4010 (as added by section 772 of this Act) the following new
item:
``Sec. 4011. Notice to participants.''
(c) Effective Date.--The amendment made by this section shall be
effective for plan years beginning after the date of enactment of this
Act.
SEC. 776. MISSING PARTICIPANTS.
(a) In General.--Subtitle C of title IV of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by
adding at the end the following new section:
``SEC. 4050. MISSING PARTICIPANTS.
``(a) General Rule.--
``(1) Payment to the corporation.--A plan administrator
satisfies section 4041(b)(3)(A) in the case of a missing
participant only if the plan administrator--
``(A) transfers the participant's designated
benefit to the corporation or purchases an irrevocable
commitment from an insurer in accordance with clause
(i) of section 4041(b)(3)(A), and
``(B) provides the corporation such information and
certifications with respect to such designated benefits
or irrevocable commitments as the corporation shall
specify.
``(2) Treatment of transferred assets.--A transfer to the
corporation under this section shall be treated as a transfer
of assets from a terminated plan to the corporation as trustee,
and shall be held with assets of terminated plans for which the
corporation is trustee under section 4042, subject to the rules
set forth in that section.
``(3) Payment by the corporation.--After a missing
participant whose designated benefit was transferred to the
corporation is located--
``(A) in any case in which the plan could have
distributed the benefit of the missing participant in a
single sum without participant or spousal consent under
section 205(g), the corporation shall pay the
participant or beneficiary a single sum benefit equal
to the designated benefit paid the corporation plus
interest as specified by the corporation, and
``(B) in any other case, the corporation shall pay
a benefit based on the designated benefit and the
assumptions prescribed by the corporation at the time
that the corporation received the designated benefit.
The corporation shall make payments under subparagraph (B)
available in the same forms and at the same times as a
guaranteed benefit under section 4022 would be available to be
paid, except that the corporation may make a benefit available
in the form of a single sum if the plan provided a single sum
benefit (other than a single sum described in subsection
(b)(2)(A)).
``(b) Definitions.--For purposes of this section--
``(1) Missing participant.--The term `missing participant'
means a participant or beneficiary under a terminating plan
whom the plan administrator cannot locate after a diligent
search.
``(2) Designated benefit.--The term `designated benefit'
means the single sum benefit the participant would receive--
``(A) under the plan's assumptions, in the case of
a distribution that can be made without participant or
spousal consent under section 205(g);
``(B) under the assumptions of the corporation in
effect on the date that the designated benefit is
transferred to the corporation, in the case of a plan
that does not pay any single sums other than those
described in subparagraph (A); or
``(C) under the assumptions of the corporation or
of the plan, whichever provides the higher single sum,
in the case of a plan that pays a single sum other than
those described in subparagraph (A).
``(c) Regulatory Authority.--The corporation shall prescribe such
regulations as are necessary to carry out the purposes of this section,
including rules relating to what will be considered a diligent search,
the amount payable to the corporation, and the amount to be paid by the
corporation.''
(b) Conforming Title IV Amendments.--
(1) Amendment to section 4003.--Section 4003(a) of such Act
(29 U.S.C. 1303(a)) is amended in the second sentence by
inserting before the period the following: ``and whether
section 4050(a) has been satisfied''.
(2) Amendment to section 4005.--Section 4005(b)(2)(A) of
such Act (29 U.S.C. 1305(b)(2)(A)) is amended by inserting ``or
benefits payable under section 4050'' after ``section 4022A''.
(3) Amendment to section 4041.--Section 4041(b)(3)(A)(ii)
of such Act (29 U.S.C. 1341(b)(3)(A)(ii)) is amended by adding
at the end the following new sentence: ``A transfer of assets
to the corporation in accordance with section 4050 on behalf of
a missing participant shall satisfy this subparagraph with
respect to such participant.''
(c) Conforming ERISA Amendments.--
(1) The table of contents contained in section 1 of the
Employee Retirement Income Security Act of 1974 is amended by
inserting after the item related to section 4049 the following
new item:
``Sec. 4050. Missing participants.''
(2) Section 206 of such Act (29 U.S.C. 1056) is amended by
adding at the end the following new subsection:
``(f) Missing Participants in Terminated Plans.--In the case of a
plan covered by title IV, the plan shall provide that, upon termination
of the plan, benefits of missing participants shall be treated in
accordance with section 4050.''
(d) Conforming Internal Revenue Code Amendments.--Section 401(a),
as amended by section 766 of this Act, is further amended by inserting
after paragraph (33) the following new paragraph:
``(34) Benefits of missing participants on plan
termination.--In the case of a plan covered by title IV of the
Employee Retirement Income Security Act of 1974, a trust
forming part of such plan shall not be treated as failing to
constitute a qualified trust under this section merely because
the pension plan of which such trust is a part, upon its
termination, transfers benefits of missing participants to the
Pension Benefit Guaranty Corporation in accordance with section
4050 of such Act.''
(e) Effective Date.--The provisions of this section shall be
effective with respect to distributions that occur in plan years
commencing after final regulations implementing these provisions are
prescribed by the Pension Benefit Guaranty Corporation.
SEC. 777. MODIFICATION OF MAXIMUM GUARANTEE FOR DISABILITY BENEFITS.
(a) In General.--Section 4022(b)(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended by adding
at the end the following new sentences: ``The maximum guaranteed
monthly benefit shall not be reduced solely on account of the age of a
participant in the case of a benefit payable by reason of disability
that occurred on or before the termination date, if the participant
demonstrates to the satisfaction of the corporation that the Social
Security Administration has determined that the participant satisfies
the definition of disability under title II or XVI of the Social
Security Act, and the regulations thereunder. If a benefit payable by
reason of disability is converted to an early or normal retirement
benefit for reasons other than a change in the health of the
participant, such early or normal retirement benefit shall be treated
as a continuation of the benefit payable by reason of disability and
this subparagraph shall continue to apply.''
(b) Effective Date.--The amendment made by this section shall be
effective for plan terminations under section 4041(c) of the Employee
Retirement Income Security Act of 1974 with respect to which notices of
intent to terminate are provided under section 4041(a)(2) of such Act,
or under section 4042 of such Act with respect to which proceedings are
instituted by the corporation, on or after the date of enactment of
this Act.
SEC. 778. PROCEDURES TO FACILITATE DISTRIBUTION OF TERMINATION
BENEFITS.
(a) Remedies for Noncompliance With Requirements for Standard
Termination.--
(1) Notice of noncompliance.--Section 4041(b)(2)(C)(i) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1341(b)(2)(C)(i)) is amended--
(A) by striking subclause (I) and inserting the
following new subclause:
``(I) it determines, based on the
notice sent under paragraph (2)(A) of
subsection (b), that there is reason to
believe that the plan is not sufficient
for benefit liabilities,'';
(B) by striking the period at the end of subclause
(II) and inserting ``, or''; and
(C) by adding at the end the following new
subclause:
``(III) it determines that any
other requirement of subparagraph (A)
or (B) of this paragraph or of
subsection (a)(2) has not been met,
unless it further determines that the
issuance of such notice would be
inconsistent with the interests of
participants and beneficiaries.''
(2) Effective date.--The amendments made by this subsection
shall apply to any plan termination under section 4041(b) of
the Employee Retirement Income Security Act of 1974 with
respect to which the Pension Benefit Guaranty Corporation has
not, as of the date of enactment of this Act, issued a notice
of noncompliance that has become final, or otherwise issued a
final determination that the plan termination is nullified.
(b) Distress Termination Criteria for Banking Institutions.--
(1) Clarification of distress criterion.--Subclause (I) of
section 4041(c)(2)(B)(i) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1341(c)(2)(B)(i)) is amended by
inserting after ``under any similar'' the following: ``Federal
law or''.
(2) Effective date.--The amendment made by this subsection
shall be effective as if included in the Single-Employer
Pension Plan Amendments Act of 1986.
PART III--EFFECTIVE DATES
SEC. 781. EFFECTIVE DATES.
Except as otherwise provided in this subtitle, the amendments made
by this subtitle shall be effective on the date of enactment of this
Act.
TITLE VIII--PIONEER PREFERENCES
SEC. 801. PIONEER PREFERENCES.
Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))
is amended by adding at the end the following new paragraph:
``(13) Recovery of value of public spectrum in connection
with pioneer preferences.--
``(A) In general.--Notwithstanding paragraph
(6)(G), the Commission shall not award licenses
pursuant to a preferential treatment accorded by the
Commission to persons who make significant
contributions to the development of a new
telecommunications service or technology, except in
accordance with the requirements of this paragraph.
``(B) Recovery of value.--The Commission shall
recover for the public a portion of the value of the
public spectrum resource made available to such person
by requiring such person, as a condition for receipt of
the license, to agree to pay a sum determined by--
``(i) identifying the winning bids for the
licenses that the Commission determines are
most reasonably comparable in terms of
bandwidth, scope of service area, usage
restrictions, and other technical
characteristics to the license awarded to such
person, and excluding licenses that the
Commission determines are subject to bidding
anomalies due to the award of preferential
treatment;
``(ii) dividing each such winning bid by
the population of its service area (hereinafter
referred to as the per capita bid amount);
``(iii) computing the average of the per
capita bid amounts for the licenses identified
under clause (i);
``(iv) reducing such average amount by 15
percent; and
``(v) multiplying the amount determined
under clause (iv) by the population of the
service area of the license obtained by such
person.
``(C) Installments permitted.--The Commission shall
require such person to pay the sum required by
subparagraph (B) in a lump sum or in guaranteed
installment payments, with or without royalty payments,
over a period of not more than 5 years.
``(D) Rulemaking on pioneer preferences.--Except
with respect to pending applications described in
clause (iv) of this subparagraph, the Commission shall
prescribe regulations specifying the procedures and
criteria by which the Commission will evaluate
applications for preferential treatment in its
licensing processes (by precluding the filing of
mutually exclusive applications) for persons who make
significant contributions to the development of a new
service or to the development of new technologies that
substantially enhance an existing service. Such
regulations shall--
``(i) specify the procedures and criteria
by which the significance of such contributions
will be determined, after an opportunity for
review and verification by experts in the radio
sciences drawn from among persons who are not
employees of the Commission or by any applicant
for such preferential treatment;
``(ii) include such other procedures as may
be necessary to prevent unjust enrichment by
ensuring that the value of any such
contribution justifies any reduction in the
amounts paid for comparable licenses under this
subsection;
``(iii) be prescribed not later than 6
months after the date of enactment of this
paragraph;
``(iv) not apply to applications that have
been accepted for filing on or before September
1, 1994; and
``(v) cease to be effective on the date of
the expiration of the Commission's authority
under subparagraph (F).
``(E) Implementation with respect to pending
applications.--In applying this paragraph to any
broadband licenses in the personal communications
service awarded pursuant to the preferential treatment
accorded by the Federal Communications Commission in
the Third Report and Order in General Docket 90-314
(FCC 93-550, released February 3, 1994)--
``(i) the Commission shall not reconsider
the award of preferences in such Third Report
and Order, and the Commission shall not delay
the grant of licenses based on such awards more
than 15 days following the date of enactment of
this paragraph, and the award of such
preferences and licenses shall not be subject
to administrative or judicial review;
``(ii) the Commission shall not alter the
bandwidth or service areas designated for such
licenses in such Third Report and Order;
``(iii) except as provided in clause (v),
the Commission shall use, as the most
reasonably comparable licenses for purposes of
subparagraph (B)(i), the broadband licenses in
the personal communications service for blocks
A and B for the 20 largest markets (ranked by
population) in which no applicant has obtained
preferential treatment;
``(iv) for purposes of subparagraph (C),
the Commission shall permit guaranteed
installment payments over a period of 5 years,
subject to--
``(I) the payment only of interest
on unpaid balances during the first 2
years, commencing not later than 30
days after the award of the license
(including any preferential treatment
used in making such award) is final and
no longer subject to administrative or
judicial review, except that no such
payment shall be required prior to the
date of completion of the auction of
the comparable licenses described in
clause (iii); and
``(II) payment of the unpaid
balance and interest thereon after the
end of such 2 years in accordance with
the regulations prescribed by the
Commission; and
``(v) the Commission shall recover with
respect to broadband licenses in the personal
communications service an amount under this
paragraph that is equal to not less than
$400,000,000, and if such amount is less than
$400,000,000, the Commission shall recover an
amount equal to $400,000,000 by allocating such
amount among the holders of such licenses based
on the population of the license areas held by
each licensee.
The Commission shall not include in any amounts
required to be collected under clause (v) the interest
on unpaid balances required to be collected under
clause (iv).
``(F) Expiration.--The authority of the Commission
to provide preferential treatment in licensing
procedures (by precluding the filing of mutually
exclusive applications) to persons who make significant
contributions to the development of a new service or to
the development of new technologies that substantially
enhance an existing service shall expire on September
30, 1998.
``(G) Effective date.--This paragraph shall be
effective on the date of its enactment and apply to any
licenses issued on or after August 1, 1994, by the
Federal Communications Commission pursuant to any
licensing procedure that provides preferential
treatment (by precluding the filing of mutually
exclusive applications) to persons who make significant
contributions to the development of a new service or to
the development of new technologies that substantially
enhance an existing service.''.