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Title 19 — Customs Duties

Chapter 12 — Trade Act of 1974

§ 2483. Consequential changes in Tariff Schedules of the United States

Statutory text

The President shall from time to time, as appropriate, embody in the Harmonized Tariff Schedule of the United States the substance of the relevant provisions of this chapter, and of other Acts affecting import treatment, and actions thereunder, including removal, modification, continuance, or imposition of any rate of duty or other import restriction.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Trade Act of 1974

    Pub. L. 93–618 title VI § 604 · 88 Stat. 1978

    Enacted · 19 U.S.C. § 2483

    Pub. L. 93–618, title VI, § 604, Jan. 3, 1975, 88 Stat. 2073

    Source evidence

    Code source credit
    Pub. L. 93–618, title VI, § 604, Jan. 3, 1975, 88 Stat. 2073

    Enacted provision · exact public law section
    SEC. 604. CONSEQUENTIAL CHANGES IN THE TARIFF SCHEDULES. The President shall from time to time, as appropriate, embody in the Tariff Schedules of the United States the substance of the relevant 19 USC 1202. provisions of this Act, and of other Acts affecting import treatment, and actions thereunder, including modification, continuance, or imposition of any rate of duty or other import restriction.

  2. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 title I · 102 Stat. 1107

    1. Substituted · 19 U.S.C. § 2483

      Pub. L. 100–418 substituted “Harmonized Tariff Schedule of the United States” for “Tariff Schedules of the United States”

    2. Inserted · 19 U.S.C. § 2483

      Pub. L. 100–418 inserted “removal,” after “including”

    Source evidence

    Code amendment note
    Pub. L. 100–418 substituted “Harmonized Tariff Schedule of the United States” for “Tariff Schedules of the United States” and inserted “removal,” after “including”.

    Enacted provision · exact public law
    TITLE I— TRADE, CUSTOMS, AND TARIFF LAWS SEC. 1001. FINDINGS AND PURPOSES. (a) Findings.— The Congress finds that— (1) in the last 10 years there has arisen a new global economy in which trade, technological development, investment, and services form an integrated system; and in this system these activities affect each other and the health of the United States economy; (2) the United States is confronted with a fundamental dis-equilibrium in its trade and current account balances and a rapid increase in its net external debt; (3) such disequilibrium and increase are a result of numerous factors, including— (A) disparities between the macroeconomic policies of the major trading nations, (B) the large United States budget deficit, (C) instabilities and structural defects in the world monetary system, (D) the growth of debt throughout the developing world, (E) structural defects in the world trading system and inadequate enforcement of trade agreement obligations, (F) governmental distortions and barriers, (G) serious shortcomings in United States trade policy, and (H) inadequate growth in the productivity and competitiveness of United States firms and industries relative to their overseas competition; (4) it is essential, and should be the highest priority of the United States Government, to pursue a broad array of domestic and international policies— (A) to prevent future declines in the United States economy and standards of living, (B) to ensure future stability in external trade of the United States, and (C) to guarantee the continued vitality of the techno-logical, industrial, and agricultural base of the United States; (5) the President should be authorized and encouraged to negotiate trade agreements and related investment, financial, intellectual property, and services agreements that meet the standards set forth in this title; and (6) while the United States is not in a position to dictate economic policy to the rest of the world, the United States is in a position to lead the world and it is in the national interest for the United States to do so. (b) Purposes.— The purposes of this title are to— (1) authorize the negotiation of reciprocal trade agreements; (2) strengthen United States trade laws; (3) improve the development and management of United States trade strategy; and (4) through these actions, improve standards of living in the world. Subtitle A— United States Trade Agreements PART 1— NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS SEC. 1101. OVERALL AND PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES. (a) Overall Trade Negotiating Objectives.— The overall trade negotiating objectives of the United States are to obtain— (1) more open, equitable, and reciprocal market access; (2) the reduction or elimination of barriers and other trade-distorting policies and practices; and (3) a more effective system of international trading disciplines and procedures. (b) Principal Trade Negotiating Objectives.— (1) Dispute settlement.— The principal negotiating objectives of the United States with respect to dispute settlement are— (A) to provide for more effective and expeditious dispute settlement mechanisms and procedures; and (B) to ensure that such mechanisms within the GATT and GATT agreements provide for more effective and expeditious resolution of disputes and enable better enforcement of United States rights. (2) Improvement of the gatt and multilateral trade negotiation agreements.— The principal negotiating objectives of the United States regarding the improvement of GATT and multilateral trade negotiation agreements are— (A) to enhance the status of the GATT; (B) to improve the operation and extend the coverage of the GATT and such agreements and arrangements to products, sectors, and conditions of trade not adequately covered; and (C) to expand country participation in particular agreements or arrangements, where appropriate. (3) Transparency.— The principal negotiating objective of the United States regarding transparency is to obtain 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 Contracting Parties to the GATT. (4) Developing countries.— The principal negotiating objectives of the United States regarding developing countries are— (A) to ensure that developing countries promote economic development by assuming the fullest possible measure of responsibility for achieving and maintaining an open international trading system by providing reciprocal benefits and assuming equivalent obligations with respect to their import and export practices; and (B) to establish procedures for reducing nonreciprocal trade benefits for the more advanced developing countries. (5) Current account surpluses.— The principal negotiating objective of the United States regarding current account surpluses is to develop rules to address large and persistent global current account imbalances of countries, including imbalances which threaten the stability of the international trading system, by imposing greater responsibility on such countries to under-take policy changes aimed at restoring current account equilibrium, including expedited implementation of trade agreements where feasible and appropriate. (6) Trade and monetary coordination.— The principal negotiating objective of the United States regarding trade and monetary coordination is to develop mechanisms to assure greater coordination, consistency, and cooperation between international trade and monetary systems and institutions. (7) Agriculture.— The principal negotiating objectives of the United States with respect to agriculture are to achieve, on an expedited basis to the maximum extent feasible, more open and fair conditions of trade in agricultural commodities by— (A) developing, strengthening, and clarifying rules for agricultural trade, including disciplines on restrictive or trade-distorting import and export practices; (B) increasing United States agricultural exports by eliminating barriers to trade (including transparent and nontransparent barriers) and reducing or eliminating the subsidization of agricultural production consistent with the United States policy of agricultural stabilization in cyclical and unpredictable markets; (C) creating a free and more open world agricultural trading system by resolving questions pertaining to export and other trade-distorting subsidies, market pricing and market access and eliminating and reducing substantially other specific constraints to fair trade and more open market access, such as tariffs, quotas, and other nontariff practices, including unjustified phytosanitary and sanitary restrictions; and (D) seeking agreements by which the major agricultural exporting nations agree to pursue policies to reduce excessive production of agricultural commodities during periods of oversupply, with due regard for the fact that the United States already undertakes such policies, and without re-course to arbitrary schemes to divide market shares among major exporting countries. (8) Unfair trade practices.— The principal negotiating objectives of the United States with respect to unfair trade practices are— (A) to improve the provisions of the GATT and nontariff measure agreements in order to define, deter, discourage the persistent use of, and otherwise discipline unfair trade practices having adverse trade effects, including forms of subsidy and dumping and other practices not adequately covered such as resource input subsidies, diversionary dumping, dumped or subsidized inputs, and export targeting practices; (B) to obtain the application of similar rules to the treatment of primary and nonprimary products in the Agreement on Interpretation and Application of Articles VI, XVI, and XXIII of the GATT (relating to subsidies and countervailing measures); and (C) to obtain the enforcement of GATT rules against— (i) state trading enterprises, and (ii) the acts, practices, or policies of any foreign government which, as a practical matter, unreasonably require that— (I) substantial direct investment in the foreign country be made, (II) intellectual property be licensed to the foreign Copyrights. Patents and trademarks. country or to any firm of the foreign country, or (III) other collateral concessions be made, as a condition for the importation of any product or service of the United States into the foreign country or as a condition for carrying on business in the foreign country. (9) Trade in services.— (A) The principal negotiating objectives of the United States regarding trade in services are— (i) to reduce or to eliminate barriers to, or other distortions of, international trade in services, including barriers that deny national treatment and restrictions on establishment and operation in such markets; and (ii) to develop internationally agreed rules, including dispute settlement procedures, which— (I) are consistent with the commercial policies of the United States, and (II) will reduce or eliminate such barriers or distortions, and help ensure fair, equitable opportunities for foreign markets. (B) In pursuing the negotiating objectives described in subparagraph (A), United States negotiators shall take into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, environmental, consumer or employment opportunity interests and the law and regulations related thereto. (10) Intellectual property.— The principal negotiating Copyrights. Patents and trademarks. objectives of the United States regarding intellectual property are— (A) to seek the enactment and effective enforcement by foreign countries of laws which— (i) recognize and adequately protect intellectual property, Computers. including copyrights, patents, trademarks, semi-conductor chip layout designs, and trade secrets, and (ii) provide protection against unfair competition, (B) to establish in the GATT obligations— (i) to implement adequate substantive standards based on— (I) the standards in existing international agreements that provide adequate protection, and (II) the standards in national laws if international agreement standards are inadequate or do not exist, (ii) to establish effective procedures to enforce, both internally and at the bonder, the standards implemented under clause (i), and (iii) to implement effective dispute settlement procedures that improve on existing GATT procedures; (C) to recognize that the inclusion in the GATT of— (i) adequate and effective substantive norms and standards for the protection and enforcement of intellectual property rights, and (ii) dispute settlement provisions and enforcement procedures, is without prejudice to other complementary initiatives undertaken in other international organizations; and (D) to supplement and strengthen standards for protection and enforcement in existing international intellectual property conventions administered by other international organizations, including their expansion to cover new and emerging technologies and elimination of discrimination or unreasonable exceptions or preconditions to protection. (11) Foreign direct investment.— (A) The principal negotiating objectives of the United States regarding foreign direct investment are— (i) to reduce or to eliminate artificial or trade-distort-ing barriers to foreign direct investment, to expand the principle of national treatment, and to reduce unreasonable barriers to establishment; and (ii) to develop internationally agreed rules, including dispute settlement procedures, which— (I) will help ensure a free flow of foreign direct investment, and (II) will reduce or eliminate the trade distortive effects of certain trade-related investment measures. (B) In pursuing the negotiating objectives described in subparagraph (A), United States negotiators shall take into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, environmental, consumer or employment opportunity interests and the law and regulations related thereto. (12) Safeguards.— The principal negotiating objectives of the United States regarding safeguards are— (A) to improve and expand rules and procedures covering safeguard measures; (B) to ensure that safeguard measures are— (i) transparent, (ii) temporary, (iii) degressive, and (iv) subject to review and termination when no longer necessary to remedy injury and to facilitate adjustment; and (C) to require notification of, and to monitor the use by, GATT Contracting Parties of import relief actions for their domestic industries. (13) Specific barriers.— The principal negotiating objective of the United States regarding specific barriers is to obtain competitive opportunities for United States exports in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports to United States markets, including the reduction or elimination of specific tariff and nontariff trade barriers, particularly— (A) measures identified in the annual report prepared under section 181 of the Trade Act of 1974 (19 U.S.C. 2241); and (B) foreign tariffs and nontariff barriers on competitive United States exports when like or similar products enter the United States at low rates of duty or are duty-free, and other tariff disparities that impede access to particular export markets. (14) Worker rights.— The principal negotiating objectives of the United States regarding worker rights are— (A) to promote respect for worker rights; (B) to secure a review of the relationship of worker rights to GATT articles, objectives, and related instruments with a view to ensuring that the benefits of the trading system are available to all workers; and (C) to adopt, as a principle of the GATT, that the denial of worker rights should not be a means for a country or its industries to gain competitive advantage in international trade. (15) Access to high technology.— (A) The principal negotiating objective of the United States regarding access to high technology is to obtain the elimination or reduction of foreign barriers to, and acts, policies, or practices by foreign governments which limit, equitable access by United States persons to foreign-developed technology, including barriers, acts, policies, or practices which have the effect of— (i) restricting the participation of United States Research and development. persons in government-supported research and development projects; (ii) denying equitable access by United States persons Patents and trademarks. to government-held patents; (iii) requiring the approval or agreement of government entities, or imposing other forms of government interventions, as a condition for the granting of licenses to United States persons by foreign persons (except for approval or agreement which may be necessary for national security purposes to control the export of critical military technology); and (iv) otherwise denying equitable access by United States persons to foreign-developed technology or contributing to the inequitable flow of technology be-tween the United States and its trading partners. (B) In pursuing the negotiating objective described in subparagraph (A), the United States negotiators shall take into account United States Government policies in licensing or otherwise making available to foreign persons technology and other information developed by United States laboratories. (16) Border taxes.— The principal negotiating objective of the United States regarding border taxes is to obtain a revision of the GAIT with respect to the treatment of border adjustments for internal taxes to redress the disadvantage to countries relying primarily for revenue on direct taxes rather than in-direct taxes. SEC 1102. TRADE AGREEMENT NEGOTIATING AUTHORITY. (a) Agreements Regarding Tariff Barriers.— (1) Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, and objectives of this title will be promoted thereby, the President— (A) before June 1, 1993, may enter into trade agreements with foreign countries; and (B) may, subject to paragraphs (2) through (5), proclaim— (i) such modification or continuance of any existing duty, (ii) such continuance of existing duty-free or excise treatment, or (iii) such additional duties; as he determines to be required or appropriate to carry out any such trade agreement. (2) No proclamation may be made under subsection (a) that— (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on the date of enactment of this Act) to a rate which is less than 50 percent of the rate of such duty that applies on such date of enactment; or (B) increases any rate of duty above the rate that applies on such date of enactment. (3) (A) Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed in paragraph (1) to carry out such agreement with respect to such article. (B) No staging under subparagraph (A) is required with respect to a rate reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph. (4) If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by the lesser of— (A) the difference between the reduction without regard to this paragraph and the next lower whole number; or (B) one-half of 1 percent ad valorem. (5) No reduction in a rate of duty under a trade agreement entered into under subsection (a) on any article may take effect more than 10 years after the effective date of the first reduction under paragraph (1) that is proclaimed to carry out the trade agreement with respect to such article. (6) A rate of duty reduction or increase that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction or increase is included within an implementing bill provided for under section 1103 and that bill is enacted into law. (b) Agreements Regarding Nontariff Barriers.— (1) Whenever the President determines that any barrier to, or other distortion of, international trade— (A) unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy; or (B) the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect; and that the purposes, policies, and objectives of this title will be promoted thereby, the President may, before June 1, 1993, enter into a trade agreement with foreign countries providing for— (i) the reduction or elimination of such barrier or other distortion; or (ii) the prohibition of, or limitations on the imposition of, such barrier or other distortion. (2) A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 1101. (c) Bilateral Agreements Regarding Tariff and Nontariff Barriers.— (1) Before June 1, 1993, the President may enter into bilateral trade agreements with foreign countries that provide for the elimination or reduction of any duty imposed by the United States. A trade agreement entered into under this paragraph may also provide for the reduction or elimination of barriers to, or other distortions of, the international trade of the foreign country or the United States. (2) Notwithstanding any other provision of law, no trade benefit shall be extended to any country by reason of the extension of any trade benefit to another country under a trade agreement entered into under paragraph (1) with such other country. (3) A trade agreement may be entered into under paragraph (1) with any foreign country only if— (A) the agreement makes progress in meeting the applicable objectives described in section 1101; (B) such foreign country requests the negotiation of such an agreement; and (C) the President, at least 60 days before the date notice is provided under section 1103(a)(1)(A)— (i) provides written notice of such negotiations to the Committee on Finance of the Senate and the Commit-tee on Ways and Means of the House of Representatives, and (ii) consults with such committees regarding the negotiation of such agreement. (4) The 60-day period of time described in paragraph (3)(B) shall be computed in accordance with section 1103(f). (5) In any case in which there is an inconsistency between any provision of this Act and any bilateral free trade area agreement that entered into force and effect with respect to the United States before January 1, 1987, the provision shall not apply with respect to the foreign country that is party to that agreement. (d) Consultation With Congress Before Agreements Entered Into.— (1) Before the President enters into any trade agreement under subsection (b) or (c), the President shall consult with— (A) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate; and (B) each other committee of the House and the Senate, and each joint committee of the Congress, which has jurisdiction over legislation involving subject matters which would be affected by the trade agreement. (2) The consultation under paragraph (1) shall include— (A) the nature of the agreement; (B) how and to what extent the agreement will achieve the applicable purposes, policies, and objectives of this title; and (C) all matters relating to the implementation of the agreement under section 1103. (3) If it is proposed to implement two or more trade agreements in a single implementing bill under section 1103, the consultation under paragraph (1) shall include the desirability and feasibility of such proposed implementation. SEC. 1103. IMPLEMENTATION OF TRADE AGREEMENTS. (a) In General.— (1) Any agreement entered into under section 1102 (b) or (c) shall enter into force with respect to the United States if (and only if)— (A) the President, at least 90 calendar days before the day on which he enters into the trade agreement, notifies the House of Representatives and the Senate of his intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register; (B) after entering into the agreement, the President submits a document to the House of Representatives and to the Senate containing a copy of the final legal text of the agreement, together with— (i) a draft of an implementing bill, (ii) a statement of any administrative action proposed to implement the trade agreement, and (iii) the supporting information described in paragraph (2); and (C) the implementing bill is enacted into law. (2) The supporting information required under paragraph (1)(B)(iii) consists of— (A) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and (B) a statement— (i) asserting that the agreement makes progress in achieving the applicable purposes, policies, and objectives of this title, (ii) setting forth the reasons of the President regarding— (I) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in clause (i), and why and to what extent the agreement does not achieve other applicable purposes, policies, and objectives, (II) how the agreement serves the interests of United States commerce, and (III) why the implementing bill and proposed administrative action is required or appropriate to carry out the agreement; (iii) describing the efforts made by the President to obtain international exchange rate equilibrium and any effect the agreement may have regarding increased international monetary stability; and (iv) describing the extent, if any, to which— (I) each foreign country that is a party to the agreement maintains non-commercial state trading enterprises that may adversely affect, nullify, or impair the benefits to the United States under the agreement, and (II) the agreement applies to or affects purchases and sales by such enterprises. (3) To ensure that a foreign country which receives benefits President of U.S. under a trade agreement entered into under section 1102 (b) or (c) is subject to the obligations imposed by such agreement, the President shall recommend to Congress in the implementing bill and statement of administrative action submitted with respect to such agreement that the benefits and obligations of such agreement apply solely to the parties to such agreement, if such application is consistent with the terms of such agreement. The President may also recommend with respect to any such agreement that the benefits and obligations of such agreement not apply uniformly to all parties to such agreement, if such application is consistent with the terms of such agreement. (b) Application of Congressional “Fast Track” Procedures to Implementing Bills.— (1) Except as provided in subsection (c)— (A) the provisions of section 151 of the Trade Act of 1974 (19 U.S.C. 2191) (hereinafter in this section referred to as “fast track procedures”) apply to implementing bills submitted with respect to trade agreements entered into under section 1102 (b) or (c) before June 1, 1991; and (B) such fast track procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under section 1102 (b) or (c) after May 31, 1991, and before June 1, 1993, if (and only if)— (i) the President requests such extension under paragraph (2); and (ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before June 1, 1991. (2) If the President is of the opinion that the fast track President of U.S. Reports. procedures should be extended to implementing bills described in paragraph (1)(B), the President must submit to the Congress, no later than March 1, 1991, a written report that contains a request for such extension, together with— (A) a description of all trade agreements that have been negotiated under section 1102 (b) or (c) and the anticipated schedule for submitting such agreements to the Congress for approval; (B) a description of the progress that has been made in multilateral and bilateral negotiations to achieve the purposes, policies, and objectives of this title, and a statement that such progress justifies the continuation of negotiations; and (C) a statement of the reasons why the extension is needed to complete the negotiations. (3) The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of his decision to submit a report to Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but no later than March 1, 1991, a written report that contains— (A) its views regarding the progress that has been made in multilateral and bilateral negotiations to achieve the purposes, policies, and objectives of this title; and (B) a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved. (4) The reports submitted to the Congress under paragraphs (2) and (3), or any portion of the reports, may be classified to the extent the President determines appropriate. (5) (A) For purposes of this subsection, the term “extension disapproval resolution” means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: “That the    disapproves the request of the President for the extension, under section 1103(b)(1)(B)(i) of the Omnibus Trade and Competitiveness Act of 1988, of the provisions of section 151 of the Trade Act of 1974 to any implementing bill submitted with respect to any trade agreement entered into under section 1102 (b) or (c) of such Act after May 31, 1991, because sufficient tangible progress has not been made in trade negotiations.”, with the blank space being filled with the name of the resolving House of the Congress. (B) Extension disapproval resolutions— (i) may be introduced in either House of the Congress by any member of such House; and (ii) shall be jointly referred, in the House of Representatives, to the Committee on Ways and Means and the Committee on Rules. (C) The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions. (D) It is not in order for— (i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance; (ii) the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and the Committee on Rules; or (iii) either House of the Congress to consider an extension disapproval resolution that is reported to such House after May 15, 1991. (c) Limitations on Use of “Fast Track” Procedures.— (1) (A) The fast track procedures shall not apply to any implementing bill submitted with respect to a trade agreement entered into under section 1102 (b) or (c) if both Houses of the Congress separately agree to procedural disapproval resolutions within any 60-day period. (B) Procedural disapproval resolutions.— (i) in the House of Representatives— (I) shall be introduced by the chairman or ranking minority member of the Committee on Ways and Means or the chairman or ranking minority member of the Committee on Rules, (II) shall be jointly referred to the Committee on Ways and Means and the Committee on Rules, and (III) may not be amended by either Committee; and (ii) in the Senate shall be original resolutions of the Committee on Finance. (C) The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to procedural disapproval resolutions. (D) It is not in order for the House of Representatives to consider any procedural disapproval resolution not reported by the Committee on Ways and Means and the Committee on Rules. (E) For purposes of this subjection, the term “procedural disapproval resolution” means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: “That the President has failed or refused to consult with Congress on trade negotiations and trade agreements in accordance with the provisions of the Omnibus Trade and Competitiveness Act of 1988, and, therefore, the provisions of section 151 of the Trade Act of 1974 shall not apply to any implementing bill submitted with respect to any trade agreement entered into under section 1102 (b) or (c) of such Act of 1988, if, during the 60-day period beginning on the date on which this resolution is agreed to by the    , the    agrees to a procedural disapproval resolution (within the meaning of section 1103(c)(1)(E) of such Act of 1988).”, with the first blank space being filled with the name of the resolving House of the Congress and the second blank space being filled with the name of the other House of the Congress. (2) The fast track procedures shall not apply to any implementing bill that contains a provision approving of any trade agreement which is entered into under section 1102(c) with any foreign country if either— (A) the requirements of section 1102(c)(3) are not met with respect to the negotiation of such agreement; or (B) the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives disapproves of the negotiation of such agreement before the close of the 60-day period which begins on the date notice is provided under section 1102(c)(3)(C)(i) with respect to the negotiation of such agreement. (d) Rules of House of Representatives and Senate.— Subsections (b) and (c) are 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. (e) Computation of Certain Periods of Time.— Each period of time described in subsection (c)(1) (A) and (E) and (2) of this section shall be computed without regard to— (1) the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die; and (2) any Saturday and Sunday, not excluded under paragraph (1), when either House of the Congress is not in session. SEC. 1104. COMPENSATION AUTHORITY. Section 123 of the Trade Act of 1974 (19 U.S.C. 2133) is amended— (1) by amending subsection (a) to read as follows: “(a) Whenever— “(1) any action taken under chapter 1 of title II or chapter 1 of title III; or “(2) any judicial or administrative tariff reclassification that becomes final after the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988; increases or imposes any duty or other import restriction, the President— “(A) may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and “(B) may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.”; (2) by amending subsection (b)(2) by— (A) striking out “section 109” and inserting “section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988”, and (B) striking out “section 101” each place it appears and inserting “such section 1102(a)”; (3) by striking out “section 101” in subsection (d) and inserting “section 1102 of the Omnibus Trade and Competitiveness Act of 1988”; and (4) by adding at the end thereof the following new subsection: “(e) The provisions of this section shall apply by reason of action taken under chapter 1 of title III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States.”. SEC. 1105. TERMINATION AND RESERVATION AUTHORITY; RECIPROCAL NONDISCRIMINATORY TREATMENT. (a) In General.— For purposes of applying sections 125, 126(a), and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)— (1) any trade agreement entered into under section 1102 shall be treated as an agreement entered into under section 101 or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 or 2112); and (2) any proclamation or Executive order issued pursuant to a trade agreement entered into under section 1102 shall be treated as a proclamation or Executive order issued pursuant to a trade agreement entered into under section 102 of the Trade Act of 1974. (b) Reciprocal Nondiscriminatory Treatment.— (1) The President shall determine, before June 1, 1993, whether any major industrial country has failed to make concessions under trade agreements entered into under section 1102 (a) and (b) which provide competitive opportunities for the commerce of the United States in such country substantially equivalent to the competitive opportunities, provided by concessions made by the United States under trade agreements entered into under section 1102 (a) and (b), for the commerce of such country in the United States. (2) If the President determines under paragraph (1) that a major industrial country has not made concessions under trade agreements entered into under section 1102 (a) and (b) which provide substantially equivalent competitive opportunities for the commerce of the United States, the President shall, either generally with respect to such country or by article produced by such country, in order to restore equivalence of competitive opportunities, recommend to the Congress— (A) legislation providing for the termination or denial of the benefits of concessions of trade agreements entered into under section 1102 (a) and (b) that have been made with respect to rates of duty or other import restrictions imposed by the United States, and (B) legislation providing that any law necessary to carry out any trade agreement under section 1102 (a) or (b) not apply to such country. (3) For purposes of this subsection, the term “major industrial country” means Canada, the European Communities, the individual member countries of the European Communities, Japan, and any other foreign country designated by the President for purposes of this subsection. SEC. 1106. ACCESSION OF STATE TRADING REGIMES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE. (a) In General.— Before any major foreign country accedes, after President of U.S. the date of enactment of this Act, to the GATT the President shall determine— (1) whether state trading enterprises account for a significant share of— (A) the exports of such major foreign country, or (B) the goods of such major foreign country that are subject to competition from goods imported into such foreign country; and (2) whether such state trading enterprises— (A) unduly burden and restrict, or adversely affect, the foreign trade of the United States or the United States economy, or (B) are likely to result in such a burden, restriction, or effect. (b) Effects of Affirmative Determination.— If both of the determinations made under paragraphs (1) and (2) of subsection (a) with respect to a major foreign country are affirmative— (1) the President shall reserve the right of the United States to withhold extension of the application of the GATT, between the United States and such major foreign country, and (2) the GATT shall not apply between the United States and such major foreign country until— (A) such foreign country enters into an agreement with the United States providing that the state trading enterprises of such foreign country— (i) will— (I) make purchases which are not for the use of such foreign country, and (II) make sales in international trade, in accordance with commercial considerations (including price, quality, availability, marketability, and transportation), and (ii) will afford United States business firms adequate opportunity, in accordance with customary practice, to compete for participation in such purchases or sales; or (B) a bill submitted under subsection (c) which approves of the extension of the application of the GATT between the United States and such major foreign country is enacted into law. (c) Expedited Consideration of Bill To Approve Extension.— (1) The President may submit to the Congress any draft of a bill which approves of the extension of the application of the GATT between the United States and a major foreign country. (2) Any draft of a bill described in paragraph (1) that is submitted by the President to the Congress shall— (A) be introduced by the majority leader of each House of the Congress (by request) on the first day on which such House is in session after the date such draft is submitted to the Congress; and (B) shall be treated as an implementing bill for purposes of subsections (d), (e), (f), and (g) of section 151 of the Trade Act of 1974. (d) Publication.— The President shall publish in the Federal Register each determination made under subsection (a). SEC. 1107. DEFINITIONS AND CONFORMING AMENDMENTS. (a) Definitions.— For purposes of this part: (1) The term “distortion” includes, but is not limited to, a subsidy. (2) The term “foreign country” includes any foreign instrumentality. Any territory or possession of a foreign country that is administered separately for customs purposes, shall be treated as a separate foreign country. (3) The term “GATT” means the General Agreement on Tariffs and Trade. (4) The term “implementing bill” has the meaning given such term in section 151(b)(1) of the Trade Act of 1974 (19 U.S.C. 2191(b)(1)). (5) The term “international trade” includes, but is not limited to— (A) trade in both goods and services, and (B) foreign direct investment by United States persons, especially if such investment has implications for trade in goods and services. (6) The term “state trading enterprise” means— (A) any agency, instrumentality, or administrative unit of a foreign country which— (i) purchases goods or services in international trade for any purpose other than the use of such goods or services by such agency, instrumentality, administrative unit, or foreign country, or (ii) sells goods or services in international trade; or (B) any business firm which— (i) is substantially owned or controlled by a foreign country or any agency, instrumentality, or administrative unit thereof, (ii) is granted (formally or informally) any special or exclusive privilege by such foreign country, agency, instrumentality, or administrative unit, and (iii) purchases goods or services in international trade for any purpose other than the use of such goods or services by such foreign country, agency, instrumentality, or administrative unit, or which sells goods or services in international trade. (b) Conforming Amendments.— (1) Section 151(b)(1) of the Trade Act of 1974 (19 U.S.C. 2191(b)(1)) is amended by striking out “section 102” and inserting “section 102 of this Act or section 1103(a)(1) of the Omnibus Trade and Competitiveness Act of 1988”. (2) Section 121 of the Trade Act of 1974 (19 U.S.C. 2131) is amended by striking out subsections (a), (b), and (c). PART 2— HEARINGS AND ADVICE CONCERNING NEGOTIATIONS SEC. 1111. HEARINGS AND ADVICE. (a) Advice From ITC and Other Federal Agencies Concerning Trade Policy and Negotiations.— Sections 131 through 134, inclusive, of the Trade Act of 1974 (19 U.S.C. 2151–2154) are amended to read as follows: “SEC. 131. ADVICE FROM INTERNATIONAL TRADE COMMISSION. “(a) Lists of Articles Which May Be Considered for Action.— “(1) In connection with any proposed trade agreement under President of U.S. section 123 of this Act or section 1102 (a) or (c) of the Omnibus Trade and Competitiveness Act of 1988, the President shall from time to time publish and furnish the International Trade Commission (hereafter in this section referred to as the ‘Commission’) with lists of articles which may be considered for modification or continuance of United States duties, continuance of United States duty-free or excise treatment, or additional duties. In the case of any article with respect to which consideration may be given to reducing or increasing the rate of duty, the list shall specify the provision of this subchapter under which such consideration may be given. “(2) In connection with any proposed trade agreement under section 1102 (b) or (c) of the Omnibus Trade and Competitive-ness Act of 1988, the President may from time to time publish and furnish the Commission with lists of nontariff matters which may be considered for modification. “(b) Advice to President by Commission.— Within 6 months after receipt of a list under subsection (a) or, in the case of a list submitted in connection with a trade agreement, within 90 days after receipt of such list, the Commission shall advise the President, with respect to each article or nontariff matter, of its judgment as to the probable economic effect of modification of the tariff or nontariff measure on industries producing like or directly competitive articles and on consumers, so as to assist the President in making an informed judgment as to the impact which might be caused by such modifications on United States interests, such as sectors involved in manufacturing, agriculture, mining, fishing, services, intellectual property, investment, labor, and consumers. Such advice may include in the case of any article the advice of the Commission as to whether any reduction in the rate of duty should take place over a longer period of time than the minimum period provided for in section 1102(a)(3)(A). “(c) Additional Investigations and Reports Requested by the President or the Trade Representative.— In addition, in order to assist the President in his determination whether to enter into any agreement under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, or how to develop trade policy, priorities or other matters (such as priorities for actions to improve opportunities in foreign markets), the Commission shall make such investigations and reports as may be requested by the President or the United States Trade Representative on matters such as effects of modification of any barrier to (or other distortion of) international trade on domestic workers, industries or sectors, purchasers, prices and quantities of articles in the United States. “(d) Commission Steps in Preparing Its Advice to the President.— In preparing its advice to the President under this section, the Commission shall to the extent practicable— “(1) investigate conditions, causes, and effects relating to competition between the foreign industries producing the articles or services in question and the domestic industries producing the like or directly competitive articles or services; “(2) analyze the production, trade, and consumption of each like or directly competitive article or service, taking into consideration employment, profit levels, and use of productive facilities with respect to the domestic industries concerned, and such other economic factors in such industries as it considers relevant, including prices, wages, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production; “(3) describe the probable nature and extent of any significant change in employment, profit levels, and use of productive facilities; the overall impact of such or other possible changes on the competitiveness of relevant domestic industries or sectors; and such other conditions as it deems relevant in the domestic industries or sectors concerned which it believes such modifications would cause; and “(4) make special studies (including studies of real wages paid in foreign supplying countries), whenever deemed to be war-ranted, of particular proposed modifications affecting United States manufacturing, agriculture, mining, fishing, labor, consumers, services, intellectual property and investment, using to the fullest extent practicable United States Government facilities abroad and appropriate personnel of the United States. “(e) Public Hearing.— In preparing its advice to the President under this section, the Commission shall, after reasonable notice, hold public hearings. “SEC. 132. ADVICE FROM EXECUTIVE DEPARTMENTS AND OTHER SOURCES. “Before any trade agreement is entered into under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, the President shall seek information and advice with respect to such agreement from the Departments of Agriculture, Commerce, Defense, Interior, Labor, State and the Treasury, from the United States Trade Representative, and from such other sources as he may deem appropriate. Such advice shall be prepared and presented consistent with the provisions of Reorganization Plan Number 3 of 1979, Executive Order Number 12188 and section 141(c). “SEC. 133. PUBLIC HEARINGS. “(a) Opportunity for Presentation of Views.— In connection with any proposed trade agreement under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, the President shall afford an opportunity for any interested person to present his views concerning any article on a list published under section 131, any matter or article which should be so listed, any concession which should be sought by the United States, or any other matter relevant to such proposed trade agreement. For this Regulations. purpose, the President shall designate an agency or an interagency committee which shall, after reasonable notice, hold public hearings and prescribe regulations governing the conduct of such hearings. When appropriate, such procedures shall apply to the development of trade policy and priorities. “(b) Summary of Hearings.— The organization holding such hearing shall furnish the President with a summary thereof. “SEC 134. PREREQUISITES FOR OFFERS. “(a) In any negotiation seeking an agreement under section 123 of Copyrights. Patents and trademarks. this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, the President may make a formal offer for the modification or continuance of any United States duty, import restrictions, or barriers to (or other distortions of) international trade, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, import restrictions, or other barrier to (or other distortion of) international trade including trade in services, foreign direct investment and intellectual property as covered by this title, with respect to any article or matter only after he has received a summary of the hearings at which an opportunity to be heard with respect to such article has been afforded under section 133. In addition, the President may make an offer for the modification or continuance of any United States duty, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, with respect to any article included in a list published and furnished under section 131(a), only after he has received advice concerning such article from the Commission under section 131(b), or after the expiration of the 6-month or 90-day period provided for in that section, as appropriate, whichever first occurs. “(b) In determining whether to make offers described in subsection (a) in the course of negotiating any trade agreement under section 1102 of the Omnibus Trade and Competitiveness Act of 1988, and in determining the nature and scope of such offers, the President shall take into account any advice or information provided, or reports submitted, by— “(1) the Commission; “(2) any advisory committee established under section 135; or “(3) any organization that holds public hearings under section 133; with respect to any article, or domestic industry, that is sensitive, or potentially sensitive, to imports.”. PART 3— OTHER TRADE AGREEMENT AND NEGOTIATION PROVISIONS SEC. 1121. IMPLEMENTATION OF NAIROBI PROTOCOL. (a) Purpose and Reference.— (1) The purpose of this section is— (A) to provide for the implementation by the United States of the Protocol (S. Treaty Doc. 97–2, 9; hereafter referred to in this section as the “Nairobi Protocol”) to the Agreement on the Importation of Educational, Scientific, and Cultural Materials (17 UST (pt. 2) 1835; commonly known as the “Florence Agreement”); (B) to clarify or modify the duty-free treatment accorded under the Educational, Scientific, and Cultural Materials Importation Act of 1982 (Public Law 97–446, 96 Stat. 2346–2349), the Educational, Scientific, and Cultural Materials Importation Act of 1966 (Public Law 89–65, 80 Stat. 897 et seq.), and Public Law 89–634 (80 Stat. 879); and (C) to continue the safeguard provisions concerning certain imported articles provided for in the Educational, Scientific, and Cultural Materials Importation Act of 1982. (2) Whenever an amendment or repeal in this section is expressed in terms of an amendment to, or repeal of, an item, headnote, Appendix, or other provision, the reference shall be considered to be made to an item, headnote, Appendix, or other provision of the Tariff Schedules of the United States. (b) Repeal of the Educational, Scientific, and Cultural Mate-rials Importation Act of 1982.— The Educational, Scientific, and Cultural Materials Importation Act of 1982 is hereby repealed. (c) Treatment of Printed Matter and Certain Other Articles.— (1) Items 270.45 and 270.50 are redesignated as items 270.46 and 270.48, respectively. (2) Part 5 of schedule 2 is amended— (A) by inserting in numerical sequence the following new item: “  270.90 Catalogs of films, recordings, or other visual and auditory material of an educational, scientific, or cultural character Free Free  ”, and (B) by striking out items 273.45, 273.50, and 273.55 and the superior heading thereto and inserting in lieu thereof the following new item having the same degree of indentation as item 273.35: “  273.52 Architectural, engineering, industrial, or commercial drawings and plans, whether originals or reproduction Free Free  ”, (3) (A) The superior heading to items 274.50, 274.60, 274.65, and 274.70 is amended by inserting “(including developed photographic film; photographic slides; transparencies; holograms for laser projection; and microfilm, microfiches and similar articles except those provided for in item 737.52)” after “Photographs”. (B) Part 5 of schedule 2 is amended by inserting in numerical sequence the following new items under the superior heading “Printed not over 20 years at time of importation:”, and before, and with the same degree of indentation as, “Lithographs on paper”: “  274.55 Loose illustrations, reproduction proofs or reproduction films used for the production of books Free Free 274.56 Articles provided for in items 270.05, 270.10, 270.25, 270.55, 270.63, 270.70, and 273.60 in the form of microfilm, micro-fiches, and similar film media Free Free  ” (C) Subpart D of part 5 of schedule 7 is amended by striking out item 735.20 and inserting in lieu thereof the following new items with a superior heading having the same degree of indentation as item 735.18: “  Puzzles; game, sport, gymnastic, athletic, or play-ground equipment; all the foregoing, and parts thereof, not specially provided for: 735.21 Crossword puzzle books, whether or not in the form of microfilm, microfiches, or similar film media Free Free 735.24 Other 5.52% ad val. 40% ad val.  ” (D) Item 737.52 is amended by inserting “(whether or not in the form of microfilm, microfiches, or similar film media)” after “Toy books”. (E) Item 830.00 is amended by inserting “; official government publications in the form of microfilm, microfiches, or similar film media” after “not developed”. (F) Item 840.00 is amended by inserting “, whether or not in the form of microfilm, microfiches, or similar film media” after “documents”. (d) Visual and Auditory Material.— (1) Headnote 1 to part 7 of schedule 8 is amended to read as follows: “1. (a) No article shall be exempted from duty under item 870.30 unless either— “(i) a Federal agency (or agencies) designated by the President determines that such article is visual or auditory material of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, or Cultural Character (17 UST (pt. 2) 1578; Beirut Agreement), or “(ii) such article— “(A) is imported by, or certified by the importer to be for the use of, any public or private institution or association approved as educational, scientific, or cultural by a Federal agency or agencies designated by the President for the purpose of duty-free admission pursuant to the Nairobi Protocol to the Florence Agreement, and “(B) is certified by the importer to be visual or auditory material of an educational, scientific, or cultural character or to have been produced by the United Nations or any of its specialized agencies. For purposes of subparagraph (i), whenever the President determines that there is, or may be, profitmaking exhibition or use of articles described in item 870.30 which interferes significantly (or threatens to interfere significantly) with domestic production of similar articles, he may prescribe regulations imposing restrictions on the entry under that item of such foreign articles to insure that they will be exhibited or used only for nonprofitmaking purposes. “(b) For purposes of items 870.32 through 870.35, inclusive, no article shall be exempted from duty unless it meets the criteria set forth in subparagraphs (a)(ii) (A) and (B) of this headnote.”. (2) Item 870.30 is amended— (A) by inserting “(except toy models)” after “models”, and (B) by striking out “headnote 1” and inserting in lieu thereof “headnote 1(a)”. (3) Part 7 of schedule 8 is amended by inserting in numerical sequence the following new items with a superior heading at the same degree of indentation as item 870.30: “  Articles determined to be visual or auditory materials in accordance with headnote 1 of this part: 870.32 Holograms for laser projection; microfilm, microfiches, and similar articles Free Free 870.33 Motion-picture films in any form on which pictures, or sound and pictures, have been recorded, whether or not developed Free Free 870.34 Sound recordings, combination sound and visual recordings, and magnetic recordings; video discs, video tapes, and similar articles Free Free 870.35 Patterns and wall charts; globes; mock-ups or visualizations of abstract concepts such as molecular structures or mathematical formulae; materials for programmed instruction; and kits containing printed materials and audio materials and visual materials or any combination of two or more of the foregoing Free Free  ”, (e) Tools for Scientific Instruments or Apparatus.— Part 4 of schedule 8 is amended by inserting in numerical sequence the following new item having the same degree of indentation as item 852.20: “  851.67 Tools specially designed to be used for the maintenance, checking, gauging or repair of scientific instruments or apparatus admitted under item 851.60 Free Free  ”, (f) Articles for the Blind and for Other Handicapped Persons.— (1) Subpart D of part 2 of schedule 8 is amended by striking out items 825.00,826.10, and 826.20. (2) The headnotes to part 7 of schedule 8 are amended—(A) by adding at the end thereof the following new head-note: “4. (a) For purposes of items 870.65, 870.66, and 870.67, the term ‘blind or other physically or mentally handicapped persons’ includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. “(b) Items 870.65, 870.66, and 870.67 do not cover— “(i) articles for acute or transient disability; 102 STAT. 1142 “(ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; “(iii) therapeutic and diagnostic articles; or “(iv) medicine or drugs.”. (3) Part 7 of schedule 8 is amended by inserting in numerical sequence the following new items with a superior heading having the same degree of indentation as item 870.45: “  Articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons: Articles for the blind: 870.65 Books, music, and pamphlets, in raised print, used exclusively by or for them Free Free 870.66 Braille tablets, cubarithms, and special apparatus, machines, presses, and types for their use or benefit exclusively Free Free 870.67 Other Free Free  ” (g) Authority to Limit Certain Duty-Free Treatment.— (1) (A) The President may proclaim changes in the Tariff Schedules of the United States to narrow the scope of, place conditions upon, or otherwise eliminate the duty-free treatment accorded by reason of the amendments made by subsection (e) or (f) with respect to any type of article the duty-free treatment of which has significant adverse impact on a domestic industry (or portion thereof) manufacturing or producing a like or directly competitive article, if the effect of such change is consistent with the provisions of the relevant annexes of the Florence Agreement or the Nairobi Protocol. (B) If the President proclaims changes to the Tariff Schedules of the United States under subparagraph (A), the rate of duty thereafter applicable to any article which is— (i) affected by such action, and (ii) imported from any source, shall be the rate determined and proclaimed by the President as the rate which would then be applicable to such article from such source if this section had not been enacted. (2) If the President determines that any duty-free treatment which is no longer in effect because of action taken under paragraph (1) could be restored, in whole or in part, without a resumption of significant adverse impact on a domestic industry or portion thereof, the President may proclaim changes to the Tariff Schedules of the United States to resume such duty-free treatment. (3) Before taking any action under paragraph (1) or (2), the President shall afford an opportunity for interested Government agencies and private persons to present their views concerning the proposed action. (4) Any action in effect or any proceeding in progress under section 166 of the Educational, Scientific, and Cultural Mate-rials Importation Act of 1982 on the day that Act is repealed shall be considered as an action or proceeding under this section and shall be continued or resumed under this section. (h) Authority To Expand Certain Duty-Free Treatment Ac-corded by Reason of Subsection (d).— (1) If the President determines such action to be in the interest of the United States, the President may proclaim changes to the Tariff Schedules of the United States in order to remove or modify any condition or restriction imposed under headnote 1 to part 7 of schedule 8 (as amended by subsection (d) of this section) of such Schedules, on the importation of articles provided for in items 870.30 through 870.35, inclusive (except as to articles entered under the terms of headnote l(a)(i) to part 7 of schedule 8) of such Schedules, in order to implement the provisions of annex C–l of the Nairobi Protocol. (2) Any change to the Tariff Schedules of the United States Effective date. proclaimed under paragraph (1) shall be effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date that is 15 days after the date on which the President proclaims such change. (i) Statistical Information.— In order to implement effectively the provisions of subsection (g), the Secretary of the Treasury, in conjunction with the Secretary of Commerce, shall take such actions as are necessary to obtain adequate statistical information with respect to articles to which amendments made by subsection (c) apply, in such detail and for such period as the Secretaries consider necessary. (j) Effective Date.— (1) The provisions of this section, and the repeal and amendments made by this section, shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the later of— (A) October 1, 1988, or (B) the date that is 15 days after the deposit of the United States ratification of the Nairobi Protocol. (2) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon request filed with the appropriate customs officer on or before the date that is 180 days after the later of the dates described in subparagraphs (A) and (B) of paragraph (1), any entry, or withdrawal from warehouse, of any article— (A) which was made on or after August 12, 1985, and before such later date, and (B) with respect to which there would have been no duty if the provisions of this section, or any amendments made by this section, applied to such entry or withdrawal, shall be liquidated or reliquidated as though such entry or withdrawal had been made on or after such later date. SEC. 1122. IMPLEMENTATION OF UNITED STATES-EC AGREEMENT ON CITRUS AND PASTA. (a) Purpose.— The purpose of this section is to provide for the implementation of tariff reductions agreed to by the United States in the Agreement between the European Communities and the United States, concluded February 24, 1987, with respect to citrus and pasta. (b) Proclamation Authority.— (1) The amendments made by subsection (c) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after a date occurring after September 30, 1988, that is proclaimed by the President as being appropriate to carry out the Agreement referred to in subsection (a). (2) The President is authorized at any time to modify or terminate by proclamation any provision of law enacted by the amendments made by subsection (c). (3) The rates of duty in column numbered 1 of the Tariff Schedules of the United States that are enacted by the amendments made by subsection (c) shall be treated— (A) as not having the status of statutory provisions en-acted by the Congress; but (B) as having been proclaimed by the President as being required to carry out a foreign trade agreement to which the United States is a party. (c) Amendments to Tariff Schedules.— (1) Whenever in this subsection an amendment is expressed in terms of an amendment to a schedule, headnote, item, the Appendix, or other provision, the reference shall be considered to be made to a schedule, headnote, item, the Appendix, or other provision of the Tariff Schedules of the United States. (2) Subpart C of part 3 of schedule 1 is amended by striking out item 112.40 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 112.42: “  Anchovies: 112.40 If entered in any calendar year before 3,000 metric tons of anchovies have been entered under this item in such calendar year 3% ad val. Free (A,E,I) 30% ad val. 112.41 Other 6% ad val. Free (A,E,I) 30% ad val.  ” (3) (A) Item 117.65 is amended by striking out “9% ad val.” and inserting in lieu thereof “Free”. (B) Item 117.67 is amended by striking out “12% ad val.” and inserting in lieu thereof “Free”. (4) Subpart B of part 9 of Schedule 1 is amended by striking out item 147.29 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 147.30: “  Mandarin, packed in airtight containers: 147.28 Satsuma, if entered in any calendar year before 40,000 metric tons of Satsuma oranges have been entered under this item in such calendar year Free Free (A,E,I) 1¢ per lb. 147.29 Other 0.2¢ per lb. Free (A,E,I) 1¢ per lb.  ” (5) Subpart B of part 9 of Schedule 1 is amended— (A) by striking out item 148.44 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 148.42: “  Other 148.43 In containers each holding not more than 0.3 gallon 20¢ per gal. Free (E) 20¢ per gal. In containers each holding more than 0.3 gallon: 148.44 If entered in any calendar year before 4,400 metric tons of olives have been entered under this item in such calendar year 10¢ per gal. Free (E) 20¢ per gal. 148.45 Other 20¢ per gal. Free(E) 20¢ per gal.  ”; (B) by striking out item 148.48 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 148.46: “  Other: 148.47 If entered in any calendar year before 730 metric tons of olives have been entered under this item in such calendar year 15¢ per gal. Free (E) 30¢ per gal. 148.48 Other 30¢ per gal. Free (E) 30¢ per gal.  ”; (C) by striking out “or stuffed” in item 148.50; (D) by redesignating items 148.52, 148.54, and 148.56 as items 148.55,148.56, and 148.57, respectively; (E) by inserting after item 148.50 the following new items with a superior heading having the same degree of indentation as the article description in item 148.50: “  Stuffed: In containers each holding not more than 0.3 gallon: Place Packed: 148.51 If entered in any calendar year before 2,700 metric tons of olives have been entered under this item in such calendar year 15¢ per gal. Free (E) 30¢ per gal. 148.52 Other 30¢ per gal. Free (E) 30¢ per gal. 148.53 Other 30¢ per gal. Free (E) 30¢ per gal. “  148.54 In containers each holding more than 0.3 gallon 30¢ per gal. Free (E) 30¢ per gal.  ”; (F) by striking out “5$ per lb.” in item 148.55, as redesignated by paragraph (4), and inserting in lieu thereof “2.5$ per lb.”; and (G) by striking out item 148.57, as redesignated by paragraph (4), and inserting in lieu thereof the following new items with the superior heading having the same degree of indentation as the article description in item 148.40: “  Otherwise prepared or preserved: 148.57 If entered in any calendar year before 550 metric tons of olives have been entered under this item in such calendar year 2.5¢ per lb. Free (E) 5¢ per lb. 148.58 Other 5¢ per lb. Free (E) 5¢ per lb.  ”; (6) Items 161.06 and 161.08 are each amended by striking out “16% ad val.” and inserting in lieu thereof “8% ad val.”. (7) Item 161.71 is amended by striking out “2$ per lb.” and inserting in lieu thereof “1.35$ per lb.”. (8) Item 167.15 is amended by striking out “3$ per gal.” and inserting in lieu thereof “1.5$ per gal.”. (9) (A) Item 176.29 is amended by striking out “3.8$ per lb. on contents and container” and inserting in lieu thereof “2.28$ per lb. on contents and container.”. (B) Item 176.30 is amended by striking out “2.6$ per lb.” and inserting in lieu thereof “1.56$ per lb.”. (d) Report.— The Trade Representative shall include in the semi-annual report submitted under section 309(3) of the Trade Act of 1974 an assessment of whether the European Communities are in compliance with the agreement referred to in subsection (a). SEC. 1123. EXTENSION OF INTERNATIONAL COFFEE AGREEMENT ACT OF 1980. (a) Extension.— Section 2 of the International Coffee Agreement Act of 1980 (19 U.S.C. 1356k) is amended by striking out “October 1, 1986” and inserting “October 1, 1989”. (b) Effective Date.— The amendment made by subsection (a) shall take effect January 1, 1987. SEC. 1124. NEGOTIATIONS ON CURRENCY EXCHANGE RATES. (a) Findings.— The Congress finds that— (1) the benefit of trade concessions can be adversely affected by misalignments in currency, and (2) misalignments in currency caused by government policies intended to maintain an unfair trade advantage tend to nullify and impair trade concessions. (b) Negotiations.— Whenever, in the course of negotiating a trade agreement under this subtitle, the President is advised by the Secretary of the Treasury that a foreign country that is a party to the negotiations satisfies the criteria for initiating bilateral currency negotiations listed in section 3004(b) of this Act, the Secretary of the Treasury shall take action to initiate bilateral currency negotiations on an expedited basis with such foreign country. SEC. 1125. REPORTS ON NEGOTIATIONS TO ELIMINATE WINE TRADE BARRIERS. Before the close of the 13-month period beginning on the date of the enactment of this Act, the President shall update each report that the President submitted to the Committee on Ways and Means and the Committee on Finance under section 905(b) of the Wine Equity and Export Expansion Act of 1984 (19 U.S.C. 2804) and submit the updated report to both of such committees. Each updated report shall contain, with respect to the major wine trading country concerned— (1) a description of each tariff or nontariff barrier to (or other distortion of) trade in United States wine of that country with respect to which the United States Trade Representative has carried out consultations since the report required under such section 905(b) was submitted; (2) the status of the consultations described under paragraph (1); and (3) information, explanations, and recommendations of the kind referred to in paragraph (1) (C), (D), and (E) of such section 905(b) that are based on developments (including the taking of relevant actions, if any, of a kind not contemplated at the time of the enactment of such 1984 Act) since the submission of the report required under such section. Subtitle B— Implementation of the Harmonized Tariff Schedule SEC. 1201. PURPOSES. The purposes of this subtitle are— (1) to approve the International Convention on the Harmonized Commodity Description and Coding System; (2) to implement in United States law the nomenclature established internationally by the Convention; and (3) to provide that the Convention shall be treated as a trade agreement obligation of the United States. SEC. 1202. DEFINITIONS. As used in this subtitle: (1) The term “Commission” means the United States International Trade Commission. (2) The term “Convention” means the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on June 14, 1983, and the Protocol thereto, done at Brussels on June 24, 1986, submitted to the Congress on June 15, 1987. (3) The term “entered” means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States. (4) The term “Federal agency” means any establishment in the executive branch of the United States Government. (5) The term “old Schedules” means title I of the Tariff Act of 1930 (19 U.S.C. 1202) as in effect on the day before the effective date of the amendment to such title under section 1204(a). (6) The term “technical rectifications” means rectifications of an editorial character or minor technical or clerical changes which do not affect the substance or meaning of the text, such as— (A) errors in spelling, numbering, or punctuation; (B) errors in indentation; (C) errors (including inadvertent omissions) in cross-references to headings or subheadings or notes; and (D) other clerical or typographical errors. SEC. 1203. CONGRESSIONAL APPROVAL OF UNITED STATES ACCESSION TO THE CONVENTION. (a) Congressional Approval.— The Congress approves the accession by the United States of America to the Convention. (b) Acceptance of the Final Legal Text of the Convention by the President.— The President may accept for the United States the final legal instruments embodying the Convention. The President shall submit a copy of each final instrument to the Congress on the date it becomes available. (c) Unspecified Private Remedies Not Created.— Neither the entry into force with respect to the United States of the Convention nor the enactment of this subtitle may be construed as creating any private right of action or remedy for which provision is not explicitly made under this subtitle or under other laws of the United States. (d) Termination.— The provisions of section 125(a) of the Trade Act of 1974 (19 U.S.C. 2135(a)) do not apply to the Convention. SEC. 1204. ENACTMENT OF THE HARMONIZED TARIFF SCHEDULE. (a) In General.— The Tariff Act of 1930 is amended by striking out title I and inserting a new title I entitled “Title I—Harmonized Tariff Schedule of the United States” (hereinafter in this subtitle referred to as the “Harmonized Tariff Schedule”) which— (1) consists of— (A) the General Notes; (B) the General Rules of Interpretation; (C) the Additional U.S. Rules of Interpretation; (D) sections I to XXII, inclusive (encompassing chapters 1 to 99, and including all section and chapter notes, article provisions, and tariff and other treatment accorded there-to); and (E) the Chemical Appendix to the Harmonized Tariff Schedule; all conforming to the nomenclature of the Convention and as set forth in Publication No. 2030 of the Commission entitled “Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes” and Supplement No. 1 thereto; but (2) does not include the statistical annotations, notes, annexes, suffixes, check digits, units of quantity, and other matters formulated under section 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)), nor the table of contents, footnotes, index, and other matters inserted for ease of reference, that are included in such Publication No. 2030 or Supplement No. 1. thereto. (b) Modifications to the Harmonized Tariff Schedule.— At the President of U.S. earliest practicable date after the date of the enactment of the Onmibus Trade and Competitiveness Act of 1988, the President shall— (1) proclaim such modifications to the Harmonized Tariff Schedule as are consistent with the standards applied in converting the old Schedules into the format of the Convention, as reflected in such Publication No. 2030 and Supplement No. 1. thereto, and as are necessary or appropriate to implement— (A) the future outstanding staged rate reductions authorized by the Congress in— (i) the Trade Act of 1974 (19 U.S.C. 2101 et seq.) and the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.) to reflect the tariff reductions that resulted from the Tokyo Round of multilateral trade negotiations, and (ii) the United States-Israel Free Trade Area Implementation Act of 1985 (19 U.S.C. 1202 note) to reflect the tariff reduction resulting from the United States-Israel Free Trade Area Agreement, (B) the applicable provisions of— (i) statutes enacted, (ii) executive actions taken, and (iii) final judicial decisions rendered, after January 1, 1988, and before the effective date of the Harmonized Tariff Schedule, and (C) such technical rectifications as the President considers necessary; and (2) take such action as the President considers necessary to bring trade agreements to which the United States is a party into conformity with the Harmonized Tariff Schedule. (c) Status of the Harmonized Tariff Schedule.— (1) The following shall be considered to be statutory provisions of law for all purposes: (A) The provisions of the Harmonized Tariff Schedule as enacted by this subtitle. (B) Each statutory amendment to the Harmonized Tariff Schedule. (C) Each modification or change made to the Harmonized Tariff Schedule by the President under authority of law (including section 604 of the Trade Act of 1974). (2) Neither the enactment of this subtitle nor the subsequent enactment of any amendment to the Harmonized Tariff Schedule, unless such subsequent enactment otherwise provides, may be construed as limiting the authority of the President— (A) to effect the import treatment necessary or appropriate to carry out, modify, withdraw, suspend, or terminate, in whole or in part, trade agreements; or (B) to take such other actions through the modification, continuance, or imposition of any rate of duty or other import restriction as may be necessary or appropriate under the authority of the President. (3) If a rate of duty established in column 1 by the President by proclamation or Executive order is higher than the existing rate of duty in column 2, the President may by proclamation or Executive order increase such existing rate to the higher rate. (4) If a rate of duty is suspended or terminated by the President by proclamation or Executive order and the proclamation or Executive order does not specify the rate that is to apply in lieu of the suspended or terminated rate, the last rate of duty that applied prior to the suspended or terminated rate shall be the efiffective rate of duty. (d) Interim Informational Use of Harmonized Tariff Schedule: Classifications.— Each— (1) proclamation issued by the President; (2) public notice issued by the Commission or other Federal agency; and (3) finding, determination, order, recommendation, or other decision made by the Commission or other Federal agency; during the period between the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988 and the effective date of the Harmonized Tariff Schedule shall, if the proclamation, notice, or decision contains a reference to the tariff classification of any article, include, for informational purposes, a reference to the classification of that article under the Harmonized Tariff Schedule. SEC 1205. COMMISSION REVIEW OF, AND RECOMMENDATIONS REGARDING, THE HARMONIZED TARIFF SCHEDULE. (a) In General.— The Commission shall keep the Harmonized Tariff Schedule under continuous review and periodically, at such time as amendments to the Convention are recommended by the Customs Cooperation Council for adoption, and as other circumstances warrant, shall recommend to the President such modifications in the Harmonized Tariff Schedule as the Commission considers necessary or appropriate— (1) to conform the Harmonized Tariff Schedule with amendments made to the Convention; (2) to promote the uniform application of the Convention and particularly the Annex thereto; (3) to ensure that the Harmonized Tariff Schedule is kept up-to-date in light of changes in technology or in patterns of international trade; (4) to alleviate unnecessary administrative burdens; and (5) to make technical rectifications. (b) Agency and Public Views Regarding Recommendations.— In formulating recommendations under subsection (a), the Commission shall solicit, and give consideration to, the views of interested Federal agencies and the public. For purposes of obtaining public views, the Commission— (1) shall give notice of the proposed recommendations and afford reasonable opportunity for interested parties to present their views in writing; and (2) may provide for a public hearing. (c) Submission of Recommendations.— The Commission shall submit recommendations under this section to the President in the form of a report that shall include a summary of the information on which the recommendations were based, together with a statement of the probable economic effect of each recommended change on any industry in the United States. The report also shall include a copy of all written views submitted by interested Federal agencies and a copy or summary, prepared by the Commission, of the views of all other interested parties. (d) Requirements Regarding Recommendations.— The Commission may not recommend any modification to the Harmonized Tariff Schedule unless the modification meets the following requirements: (1) The modification must— (A) be consistent with the Convention or any amendment thereto recommended for adoption; (B) be consistent with sound nomenclature principles; and (C) ensure substantial rate neutrality. (2) Any change to a rate of duty must be consequent to, or necessitated by, nomenclature modifications that are recommended under this section. (3) The modification must not alter existing conditions of competition for the affected United States industry, labor, or trade. SEC. 1206. PRESIDENTIAL ACTION ON COMMISSION RECOMMENDATIONS. (a) In General.— The President may proclaim modifications, based on the recommendations by the Commission under section 1205, to the Harmonized Tariff Schedule if the President determines that the modifications— (1) are in conformity with United States obligations under the Convention; and (2) do not run counter to the national economic interest of the United States. (b) Lay-Over Period.— (1) The President may proclaim a modification under subsection President of U.S. Reports. (a) only after the expiration of the 60-day period beginning on the date on which the President submits 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 the proposed modification and the reasons therefor. (2) The 60-day period referred to in paragraph (1) shall be computed by excluding— (A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die; and (B) any Saturday and Sunday, not excluded under subparagraph (A), when either House is not in session. (c) Effective Date of Modifications.— Modifications proclaimed by the President under subsection (a) may not take effect before the 15th day after the date on which the text of the proclamation is published in the Federal Register. SEC. 1207. PUBLICATION OF THE HARMONIZED TARIFF SCHEDULE. (a) In General.— The Commission shall compile and publish, at appropriate intervals, and keep up to date the Harmonized Tariff Schedule and related information in the form of printed copy; and, if, in its judgment, such format would serve the public interest and convenience— (1) in the form of microfilm images; or (2) in the form of electronic media. (b) Content.— Publications under subsection (a), in whatever format, shall contain— (1) the then current Harmonized Tariff Schedule; (2) statistical annotations and related statistical information formulated under section 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)); and (3) such other matters as the Commission considers to be necessary or appropriate to carry out the purposes enumerated in the Preamble to the Convention. SEC. 1208. IMPORT AND EXPORT STATISTICS. The Secretary of Commerce shall compile, and make publicly available, the import and export trade statistics of the United States. Such statistics shall be conformed to the nomenclature of the Convention. SEC. 1209. COORDINATION OF TRADE POLICY AND THE CONVENTION. The United States Trade Representative is responsible for co-ordination of United States trade policy in relation to the Convention. Before formulating any United States position with respect to the Convention, including any proposed amendments thereto, the United States Trade Representative shall seek, and consider, information and advice from interested parties in the private sector (including a functional advisory committee) and from interested Federal agencies. SEC. 1210. UNITED STATES PARTICIPATION ON THE CUSTOMS COOPERATION COUNCIL REGARDING THE CONVENTION. (a) Principal United States Agencies.— (1) Subject to the policy direction of the Office of the United States Trade Representative under section 1209, the Department of the Treasury, the Department of Commerce, and the Commission shall, with respect to the activities of the Customs Cooperation Council relating to the Convention— (A) be primarily responsible for formulating United States Government positions on technical and procedural issues; and (B) represent the United States Government. (2) The Department of Agriculture and other interested Federal agencies shall provide to the Department of the Treasury, the Department of Commerce, and the Commission technical advice and assistance relating to the functions referred to in paragraph (1). (b) Development of Technical Proposals.— (1) In connection with responsibilities arising from the implementation of the Convention and under section 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)) regarding United States programs for the development of adequate and comparable statistical information on merchandise trade, the Secretary of the Treasury, the Secretary of Commerce, and the Commission shall prepare technical proposals that are appropriate or required to assure that the United States contribution to the development of the Convention recognizes the needs of the United States business community for a Convention which reflects sound principles of commodity identification, modern producing methods, and current trading patterns and practices. (2) In carrying out this subsection, the Secretary of the Treasury, the Secretary of Commerce, and the Commission shall— (A) solicit and consider the views of interested parties in the private sector (including a functional advisory commit-tee) and of interested Federal agencies; (B) establish procedures for reviewing, and developing appropriate responses to, inquiries and complaints from interested parties concerning articles produced in and ex-ported from the United States; and (C) where appropriate, establish procedures for— (i) ensuring that the dispute settlement provisions and other relevant procedures available under the Convention are utilized to promote United States export interests, and (ii) submitting classification questions to the Harmonized System Committee of the Customs Cooperation Council. (c) Availability of Customs Cooperation Council Publications.— As soon as practicable after the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988, and periodically thereafter as appropriate, the Commission shall see to the publication of— (1) summary records of the Harmonized System Committee of Records. the Customs Cooperation Council; and (2) subject to applicable copyright laws, the Explanatory Notes, Classification Opinions, and other instruments of the Customs Cooperation Council relating to the Convention. SEC. 1211. TRANSITION TO THE HARMONIZED TARIFF SCHEDULE. (a) Existing Executive Actions.— (1) The appropriate officers of the United States Government shall take whatever actions are necessary to conform, to the fullest extent practicable, with the tariff classification system of the Harmonized Tariff Schedule all proclamations, regulations, rulings, notices, findings, determinations, orders, recommendations, and other written actions that— (A) are in effect on the day before the effective date of the Harmonized Tariff Schedule; and (B) contain references to the tariff classification of articles under the old Schedules. (2) Neither the repeal of the old Schedules, nor the failure of any officer of the United States Government to make the conforming changes required under paragraph (1), shall affect to any extent the validity or effect of the proclamation, regulation, ruling, notice, finding, determination, order, recommendation, or other action referred to in paragraph (1). (b) Generalized System of Preferences Conversion.— (1) The review of the proposed conversion of the Generalized System of Preferences program to the Convention tariff nomenclature, initiated by the Office of the United States Trade Representative by notice published in the Federal Register on December 8, 1986 (at page 44,163 of volume 51 thereof), shall be treated as satisfying the requirements of sections 503(a) and 504(c)(3) of the Trade Act of 1974 (19 U.S.C. 2463(a), 2464(c)(3)). (2) In applying section 504(c)(1) of the Trade Act of 1974 (19 U.S.C. 2464(c)(1)) for calendar year 1989, the reference in such section to July 1 shall be treated as a reference to September 1. (c) Import Restrictions Under the Agricultural Adjustment Act.— (1) Whenever the President determines that the conversion of an import restriction proclaimed under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624) from part 3 of the Appendix to the old Schedules to subchapter IV of chapter 99 of the Harmonized Tariff Schedule results in— (A) an article that was previously subject to the restriction being excluded from the restriction; or (B) an article not previously subject to the restriction being included within the restriction; the President may proclaim changes in subchapter IV of chapter 99 of the Harmonized Tariff Schedule to conform that subchapter to the fullest extent possible to part 3 of the Appendix to the old Schedules. (2) Whenever the President determines that the conversion from headnote 2 of subpart A of part 10 of schedule 1 of the old Schedules to Additional U.S. Note 2, chapter 17, of the Harmonized Tariff Schedule results in— (A) an article that was previously covered by such head-note being excluded from coverage; or (B) an article not previously covered by such headnote being included in coverage; the President may proclaim changes in Additional U.S. Note 2, chapter 17 of the Harmonized Tariff Schedule to conform that note to the fullest extent possible to headnote 2 of subpart A of part 10 of schedule 1 of the old Schedules. (3) No change to the Harmonized Tariff Schedule may be proclaimed under paragraph (1) or (2) after June 30, 1990. (d) Certain Protests and Petitions Under the Customs Law.— (1) (A) This subtitle may not be considered to divest the courts of jurisdiction over— (i) any protest filed under section 514 of the Tariff Act of 1930 (19 U.S.C. 1514); or (ii) any petition by an American manufacturer, producer, or wholesaler under section 516 of such Act (19 U.S.C. 1516); covering articles entered before the effective date of the Harmonized Tariff Schedule. (B) Nothing in this subtitle shall affect the jurisdiction of the courts with respect to articles entered after the effective date of the Harmonized Tariff Schedule. (2) (A) If any protest or petition referred to in paragraph (1)(A) is sustained m whole or in part by a final judicial decision, the entries subject to that protest or petition and made before the effective date of the Harmonized Tariff Schedule shall be liquidated or reliquidated, as appropriate, in accordance with such final judicial decision under the old Schedules. (B) At the earliest practicable date after the effective date of the Harmonized Tariff Schedule, the Commission shall initiate an investigation under section 332 of the Tariff Act of 1930 (19 U.S.C. 1332) of those final judicial decisions referred to in subparagraph (A) that— (i) are published during the 2-year period beginning on February 1, 1988; and (ii) would have affected tariff treatment if they had been published during the period of the conversion of the old Schedules into the format of the Convention. Reports. No later than September 1, 1990, the Commission shall report the results of the investigation to the President, the Committee on Ways and Means, and the Committee on Finance, and shall recommend those changes to the Harmonized Tariff Schedule that the Commission would have recommended if the final decisions concerned had been made before the conversion into the format of the Convention occurred. (3) The President shall review all changes recommended by President of U.S. the Commission under paragraph (2)(B) and shall, as soon as practicable, proclaim such of those changes, if any, which he decides are necessary or appropriate to conform such Schedule to the final judicial decisions. Any such change shall be effective with respect to— (A) entries made on or after the date of such proclamation; and (B) entries made on or after the effective date of the Harmonized Tariff Schedule if, notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514), application for liquidation or reliquidation thereof is made by the importer to the customs officer concerned within 180 days after the effective date of such proclamation. (4) If any protest or petition referred to in paragraph (1)(A) is not sustained in whole or in part by a final judicial decision, the entries subject to that petition or protest and made before the effective date of the Harmonized Tariff Schedule shall be liquidated or reliquidated, as appropriate, in accordance with the final judicial decision under the old Schedules. SEC. 1212. REFERENCE TO THE HARMONIZED TARIFF SCHEDULE. Any reference in any law to the “Tariff Schedules of the United States”, “the Tariff Schedules”, “such Schedules”, and any other general reference that clearly refers to the old Schedules shall be treated as a reference to the Harmonized Tariff Schedule. SEC 1213. TECHNICAL AMENDMENTS. (a) Trade Act of 1974.— Section 604 of the Trade Act of 1974 (19 U.S.C. 2483) is amended by striking out “including modification,” and inserting “including removal, modification,”. (b) Tariff Classification Act of 1962.— Section 201 of the Tariff Classification Act of 1962 (76 Stat. 72,74) is repealed. 19 USC prec. 1202 note. (c) Tariff Act of 1930.— Section 315(d) of the Tariff Act of 1930 (19 U.S.C. 1315(d)) is amended by adding at the end thereof the following: “This subsection shall not apply with respect to increases in rates of duty resulting from the enactment of the Harmonized Tariff Schedule of the United States to replace the Tariff Schedules of the United States.”. SEC. 1214. CONFORMING AMENDMENTS. (a) Codified Titles.— (1) Section 374(a)(3) of title 10 of the United States Code is amended by striking out “general headnote 2 of the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (2) Section 301 of title 13 of the United States Code is amended— (A) by striking out “Tariff Schedules of the United States Annotated and general statistical headnote 1 thereof,” in subsection (b) and inserting “Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes and general statistical note 1 thereof,”; (B) by striking out “item in the Tariff Schedules of the United States Annotated” in subsection (e) and inserting “heading or subheading in the Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes”; and (C) by amending subsection (f)— (i) by striking out “item of the Tariff Schedules of the United States Annotated” and inserting “heading or subheading in the Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes”, and (ii) by striking out “under that item” each place it appears and inserting “under that heading or sub-heading”. (3) Section 1295(a)(7) of title 28 of the United States Code is amended by striking out “headnote 6 to schedule 8, part 4, of the Tariff Schedules of the United States” and inserting “U.S. note 6 to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States”. (b) Tobacco Adjustment Act of 1983.— Section 213(a)(2) of the Tobacco Adjustment Act of 1983 (7 U.S.C. 511r(a)(2)) is amended by striking out “Schedule 1, Part 13, Tariff Schedules of the United States” and inserting “chapter 24 of the Harmonized Tariff Schedule of the United States”. (c) Federal Hazardous Substances Act.— Section 15 of the Federal Hazardous Substances Act (15 U.S.C. 1274) is amended— (1) by striking out “general headnote 2 to the Tariff Schedules of the United States” in subsection (b) and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”; and (2) by striking out “general headnote 2 to the Tariff Schedules of the United States” in subsection (c)(2) and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (d) Consumer Product Safety Act.— Section 15(d) and section 17(a) of the Consumer Product Safety Act (15 U.S.C. 2064(d) and 2066(a)) are each amended by striking out “general headnote 2 to the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (e) Toxic Substances Control Act.— (1) Section 3(7) of the Toxic Substances Control Act (15 U.S.C. 2602(7)) is amended by striking out “general headnote 2 of the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (2) Section 13(a)(1) of such Act (15 U.S.C. 2612(a)(1)) is amended by striking out “general headnote 2 to the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (f) Emergency Wetlands Resources Act of 1986.— Section 203 of the Emergency Wetlands Resources Act of 1986 (16 U.S.C. 3912) is amended by striking out “subpart A of part 5 of schedule 7 of the Tariff Schedules of the United States” and inserting “chapter 93 of the Harmonized Tariff Schedule of the United States”. (g) COBRA of 1985.— Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended— (1) by striking out “schedule 8 of the Tariff Schedules of the United States” in subsection (a)(9)(A) and inserting “chapter 98 of the Harmonized Tariff Schedule of the United States”; (2) by striking out “General Headnote 3(e)(vi) or (vii)” in subsection (a)(9)(C) and inserting “general note 3(c)(v)”; and (3) by striking out “headnote 2 of the General Headnotes and Rules of Interpretation of the Tariff Schedules of the United States” in subsection (c)(3) and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (h) Tariff Act of 1930.— The Tariff Act of 1930 is amended as follows: (1) Section 312(f) (19 U.S.C. 1312(0) is amended— (A) by amending paragraph (1)— (i) by striking out “schedule 6, part 1, of the Tariff Schedules of the United States,” and inserting “chapter 26 of the Harmonized Tariff Schedule of the United States,”; (ii) by striking out “schedule 6, part 2, of such schedules,” and inserting “chapters 71 through 83 of the Harmonized Tariff Schedule of the United States,”; and (iii) by striking out the quotation marks surrounding “metal waste and scrap” and “unwrought metal”; (B) by amending paragraph (2)(A)— (i) by striking out “part 2 of schedule 6” and inserting “chapters 71 through 83 of the Harmonized Tariff Schedule of the United States”; (ii) by striking out “part 1 of schedule 6” and inserting “chapter 26 of the Harmonized Tariff Schedule of the United States”; and (iii) by striking out the quotation marks surrounding “unwrought metal”; and (C) by amending paragraph (3) by striking out “as defined in part 1 of schedule 6” and inserting “of chapter 26 of the Harmonized Tariff Schedule of the United States”. (2) Section 321(a)(2)(B) (19 U.S.C. 1321(a)(2)(B)) is amended by striking out “item 812.25 or 813.31” and inserting “subheading 9804.00.30 or 9804.00.70”. (3) Section 337(j) (19 U.S.C. 1337(j)) is amended by striking out “general headnote 2 of the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (4) Section 466(f) (19 U.S.C. 1466(f)) is amended by striking out “headnote 3 to schedule 6, part 6, subpart C of the Tariff Schedules of the United States” and inserting “general note 3(c)(iv) of the Harmonized Tariff Schedule of the United States”. (5) Section 498(a)(1) (19 U.S.C. 1498(a)(1)) is amended— (A) by striking out subparagraphs (A), (B), and (C) and inserting the following: “(A) chapters 50 through 63; “(B) chapters 39 through 43, 61 through 65, 67 and 95; and “(C) subchapters III and IV of chapter 99;”; and (B) by striking out “of the Tariff Schedules of the United States,” and inserting “of the Harmonized Tariff Schedule of the United States,”. (i) Automotive Products Trade Act of 1965.— Section 201 (a) and (b) of the Automotive Products Trade Act of 1965 (19 U.S.C. 2011 (a) and (b)) are each amended by striking out “Tariff Schedules of the United States” and inserting “Harmonized Tariff Schedule of the United States”. (j) Trade Act of 1974.— The Trade Act of 1974 is amended as follows: (1) Section 128(b) (19 U.S.C. 2138(b)) is amended to read as follows: “(b) The President shall exercise his authority under subsection (a) of this section only with respect to the following subheadings listed in the Harmonized Tariff Schedule of the United States— “(1) transistors (provided for in subheadings 8541.21.00, 8541.29.00, and 8541.40.70); “(2) diodes and rectifiers (provided for in subheadings 8541.10.00, 8541.30.00, and 8541.40.60); “(3) monolithic integrated circuits (provided for in subheadings 8542.11.00 and 8542.19.00); “(4) other integrated circuits (provided for in subheading 8542.20.00); “(5) other components (provided for in subheading 8541.50.00); “(6) parts of semiconductors (provided for in subheadings 8541.90.00 and 8542.90.00); and “(7) units of automatic data processing machines (provided for in subheadings 8471.92.20, 8471.92.30, 8471.92.70, 8471.92.80, 8471.93.10, 8471.93.15, 8471.93.30, 8471.93.50, 8471.99.15, and 8471.99.60) and parts (provided for in subheading 8473.30.40), all the foregoing not incorporating a cathode ray tube.”. (2) Section 203(f) (19 U.S.C. 2253(f)) is amended— (A) by striking out “item 806.30 or 807.00 of the Tariff Schedules of the United States” in paragraph (1) and inserting “subheadings 9802.00.60 or 9802.00.80 of the Harmonized Tariff Schedule of the United States”; and (B) by striking out “item 806.30 or item 807.00” in paragraph (3) and inserting “subheading 9802.00.60 or sub-heading 9802.00.80 of the Harmonized Tariff Schedule of the United States”. (3) Section 404(c) (19 U.S.C. 2434(c)) is amended by striking out “Tariff Schedules for the United States” and inserting “Harmonized Tariff Schedule of the United States”. (4) Section 407(c)(3) and section 604 (19 U.S.C. 2437(c)(3) and 2483) are each amended by striking out “Tariff Schedules of the United States” and inserting “Harmonized Tariff Schedule of the United States” (5) Section 601(7) (19 U.S.C. 2481(7)) is amended by striking out “schedules 1 through 7 of the Tariff Schedules of the United States” and inserting “chapters 1 through 97 of the Harmonized Tariff Schedule of the United States”. (k) Trade Agreements Act of 1979.— Section 1102(b)(3) of the Trade Agreements Act of 1979 (19 U.S.C. 2581(b)(3)) is amended by striking out “headnotes of the Tariff Schedules of the United States” and inserting “notes of the Harmonized Tariff Schedule of the United States”. (l) Act of March 2, 1897.— Section 1 of the Act of March 2, 1897 (29 Stat. 604) (21 U.S.C. 41) is amended by striking out “Tariff Schedules of the United States” and inserting “Harmonized Tariff Schedule of the United States”. (m) Controlled Substances Import and Export Act.— Section 1001(a)(2) of the Controlled Substances Import and Export Act (21 U.S.C. 951(a)(2)) is amended by striking out “general headnote 2 to the Tariff Schedules of the United States” and inserting “general note 2 of the Harmonized Tariff Schedule of the United States”. (n) Comprehensive Anti-Apartheid Act of 1986.— Section 309(b) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 5059(b)) is amended by striking out “item 812.10 or 813.10 of the Tariff Schedules of the United States” and inserting “subheading 9804.00.20 or 9804.00.45 of the Harmonized Tariff Schedule of the United States”. (o) Strategic and Critical Materials Stock Piling Act.— Section 13 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–4) is amended by striking out “general headnote 3(d) of the Tariff Schedules of the United States” and inserting “general note 3(b) of the Harmonized Tariff Schedule of the United States”. (p) Internal Revenue Code of 1986.— (1) Section 7652(e)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 7652(e)(3)) is amended by striking out “item 169.13 or 169.14 of the Tariff Schedules of the United States” and inserting “subheading 2208.40.00 of the Harmonized Tariff Schedule of the United States”. (2) Section 9504(b)(1)(B) of the Internal Revenue Code of 1986 (26 U.S.C. 9504(b)(1)(B)) is amended— (A) by striking out “subpart B of part 5 of schedule 7 of the Tariff Schedules of the United States” and inserting “heading 9507 of the Harmonized Tariff Schedule of the United States”; and (B) by striking out “subpart D of part 6 of schedule 6 of such Schedules” and inserting “chapter 89 of the Harmonized Tariff Schedule of the United States”. (q) Caribbean Basin Economic Recovery Act.— The Caribbean Basin Economic Recovery Act is amended as follows: (1) Section 212(a)(1)(C) (19 U.S.C. 2702(a)(1)(C)) is amended by striking out “ ‘TSUS’ means Tariff Schedules of the United States” and inserting “ ‘HTS’ means Harmonized Tariff Schedule of the United States”. (2) Section 213 (19 U.S.C. 2703) is amended as follows: (A) Subsection (b) is amended— (i) by striking out “part 10 of schedule 4 of the TSUS” in paragraph (4) and inserting “headings 2709 and 2710 of the Harmonized Tariff Schedule of the United States”; and (ii) by striking out “TSUS” in paragraph (5) and inserting “HTS”. (B) Subsection (c) is amended— (i) by striking out “items 155.20 and 155.30 of the TSUS” in paragraph (1)(A)(i) and inserting “subheadings 1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized Tariff Schedule of the United States”; and (ii) by striking out “subpart B of part 2 of schedule 1 of the TSUS” in paragraph (1)(A)(ii) and inserting “chapters 2 and 16 of the Harmonized Tariff Schedule of the United States”. (C) Subsection (d) is amended by striking out “items 155.20 and 155.30 of the TSUS” and inserting “subheadings 1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized Tariff Schedule of the United States”. (D) Subsection (f)(5) is amended— (i) by amending subparagraph (A) to read as follows: “(A) live plants and fresh cut flowers provided for in chapter 6 of the HTS;’; (ii) by striking out “items 135.10 through 138.46 of the TSUS” in subparagraph (B) and inserting “headings 0701 through 0709 (except subheading 0709.52.00) and heading 0714 of the HTS” (iii) by striking out subparagraph (C); (iv) by redesignating subparagraph (D) as subparagraph (C) and by striking out “items 146.10, 146.20, 146.30, 146.50 through 146.62, 146.90, 146.91, 147.03 through 147.33, 147.50 through 149.21 and 149.50 of the TSUS” in such redesignated subparagraph and inserting “subheadings 0804.20 through 0810.90 (except citrons of subheading 0805.90.00, tamarinds and kiwi fruit of subheading 0810.90.20, and cashew apples, mameyes colorados, sapodillas, soursops and sweetsops of sub-heading 0810.90.40) of the HTS”; (v) by striking out subparagraph (E); and (vi) by redesignating subparagraph (F) as subparagraph (E) and by striking out “items 165.25 and 165.35 of the TSUS” in such redesignated subparagraph and inserting “subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS”. (r) Act Relating to Reforestation Trust Fund.— Section 303(b)(1) of the Act of October 14, 1980 (16 U.S.C. 1606a(b)(1)) is amended to read as follows: “(b) (1) Subject to the limitation in paragraph (2), the Secretary of the Treasury shall transfer to the Trust Fund an amount equal to the sum of the tariffs received in the Treasury after January 1, 1989, under headings 4401 through 4412 and subheadings 4418.50.00, 4418.90.20, 4420.10.00, 4420.90.80, 4421.90.10 through 4421.90.20, and 4421.90.70 of chapter 44, subheadings 6808.00.00 and 6809.11.00 of chapter 68 and subheading 9614.10.00 of chapter 96 of the Harmonized Tariff Schedule of the United States.”. (s) Trade and Tariff Act of 1984.— The Trade and Tariff Act of 1984 (Public Law 98–573) is amended as follows: (1) Section 231(a)(1) is amended by striking out “Tariff Schedules of the United States” and inserting “Harmonized Tariff Schedule of the United States”. (2) Section 239 is amended by striking out “headnote 6 of part 4 of schedule 8 of the Tariff Schedules of the United States” and inserting “U.S. note 6 to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States.”. (3) Section 240 is amended— (A) by striking out “headnote 6(a) of part 4 of schedule 8 of the Tariff Schedules of the United States” in subsection (a)(1)(A) and inserting “U.S. note 6(a) to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States”; and (B) by striking out “headnote 1 of part 4 of schedule 8” in subsection (e) and inserting “U.S. note 1 to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States”. (4) Section 404(e) is amended— (A) by amending paragraphs (1) and (2) to read as follows: “(1) live plants and fresh cut flowers provided for in chapter 6 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202, hereinafter referred to as the ‘HTS’); “(2) vegetables, edible nuts or fruit provided for in chapters 7 and 8, heading 1105, subheadings 1106.10.00 and 1106.30, heading 1202, subheadings 1214.90.00 and 1704.90.60, headings 2001 through 2008 (excluding subheadings 2001.90.20 and 2004.90.10) and subheading 2103.20.40 of the HTS;”; (B) by striking out paragraphs (3), (4), and (5); and (C) by striking out paragraph (6) and inserting the following: “(3) concentrated citrus fruit juice provided for in subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS.”. (t) Trade Agreements Act of 1979.— The Trade Agreements Act of 1979 (Public Law 96–39) is amended as follows: (1) Section 701(c)(1) is amended to read as follows: 19 USC 1202 note. “(1) Quota cheese.— The term ‘quota cheese’ means the articles provided for in the following subheadings of the Harmonized Tariff Schedule of the United States: “(A) 0406.10.00 (except whey cheese, curd, and cheese, cheese substitutes for cheese mixtures containing: Roquefort, Stilton produced in the United Kingdom, Bryndza, Gjetost, Goya in original loaves, Gammelost and Nokkelost, cheese made from sheep’s and goat’s milk and soft ripened cow’s milk cheeses); “(B) 0406.20.20 (except Stilton produced in the United Kingdom); “(C) 0406.20.30; “(D) 0406.20.35; “(E) 0406.20.40; “(F) 0406.20.50; “(G) 0406.20.60 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Bryndza, Gjetost, Gammelost and Nokkelost, cheese made from sheeps and goat’s milk and soft ripened cow’s milk cheeses) “(H) 0406.30.10 (except Stilton produced in the United Kingdom); “(I) 0406.30.20; “(J) 0406.30.30; “(K) 0406.30.40; “(L) 0406.30.50; “(M) 0406.30.60 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Bryndza, Gjetost, Gammelost and Nokkelost, cheese made from sheep’s and goat’s milk and soft ripened cow’s milk cheeses); “(N) 0406.40.60 (except Stilton produced in the United Kingdom); “(O) 0406.40.80 (except Stilton produced in the United Kingdom); “(P) 0406.90.10; “(Q) 0406.90.15; “(R) 0406.90.30 (except Goya in original loaves); “(S) 0406.90.35; “(T) 0406.90.40; “(U) 0406.90.45 (except Gammelost and Nokkelost); “(V) 0406.90.65; “(W) 0406.90.70; and “(X) 0406.90.80 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Bryndza, Gjetost, Gammelost and Nokkelost, cheese made from sheeps and goat’s milk and soft ripened cow’s milk cheeses).”. (2) Section 703 is amended— (A) by striking out “item 950.15 of the Tariff Schedules of the United States” and inserting “subheading 9904.10.63 of the Harmonized Tariff Schedule of the United States”; and (B) by striking out “item 950.16 of the Tariff Schedules of the United States” and inserting “subheading 9904.10.66 of the Harmonized Tariff Schedule of the United States”. (3) Section 855 is amended— (A) by striking out “item set forth in subpart D of part 12 of schedule 1 of the Tariff Schedules of the United States” in subsection (a) and inserting “article provided for in subheading 2207.10.30 and heading 2208 of the Harmonized Tariff Schedule of the United States”; and (B) by striking out “item set forth in rate column numbered 1 of subpart D of part 12 of schedule 1 of the Tariff Schedules of the United States” in subsection (b) and inserting “article as set forth in rate of duty column numbered 1 of subheading 2207.10.30 and heading 2208 of the Harmonized Tariff Schedule of the United States”. (u) Meat Import Act of 1979.— The Meat Import Act of 1979 (19 U.S.C. 1202 note) is amended— (1) by amending subsection (b)(2)— (A) by striking out “Tariff Schedules of the United States” and inserting “Harmonized Tariff Schedule of the United States”, (B) by striking out “item 106.10” in subparagraph (A) and inserting “subheadings 0201.10.00, 0201.20.60, 0201.30.60, 0202.10.00,0202.20.60 and 0202.30.60”, (C) by striking out “cattle” in subparagraph (A) and inserting “bovine”, (D) by striking out “items 106.22 and 106.25” in subparagraph (B) and inserting “subheadings 0204.50.00, 0204.21.00, 0204.22.40, 0204.23.40, 0204.41.00, 0204.42.40, and 0204. 43.40”, and (E) by amending subparagraph (Q to read as follows: “(C) subheadings 0201.20.40, 0201.30.40, 0202.20.40, and 0202.30.40 (relating to processed meat of beef or veal other than high quality beef cuts).”; (2) by striking out “items 100.40, 100.43, 100.45, 100.53, and 100.55 of such Schedules” in the sentence following subsection (c)(2) and inserting “subheadings 0102.90.20 and 0102.90.40 of the Harmonized Tariff Schedule of the United States”; and (3) by striking out “item 107.61 of the Tariff Schedules of the United States” in subsection (f)(1) and inserting “subheadings 0201.20.20, 0201.30.20, 0202.20.20, and 0202.3020 of the Harmonized Tariff Schedule of the United States”. (v) National Wool Act of 1954.— Sections 704 and 705 of the National Wool Act of 1954 (7 U.S.C. 1783 and 1784) are each amended by striking out “all articles subject to duty under schedule 11 of the Tariff Act of 1930, as amended” and inserting “wool or fine animal hair, and articles thereof, as provided for in the Harmonized Tariff Schedule of the United States”. (w) Agricultural Act of 1949.— Section 103(f)(3) of the Agricultural Act of 1949 (7 U.S.C. 1444(f)(3)) is amended by striking out “items 955.01 through 955.03 of the Appendix to the Tariff Schedules of the United States” and inserting “subheadings 9904.30.10 through 9904.30.30 of chapter 99 of the Harmonized Tariff Schedule of the United States”. SEC. 1215. NEGOTIATING AUTHORITY FOR CERTAIN ADP EQUIPMENT. Section 128(b) of the Trade Act of 1974 (19 U.S.C. 2138(b)), as amended by section 1212(j)(1) of this Act, is further amended— (1) by striking out “and” at the end of paragraph (6); (2) by striking out “tube.” and inserting “tube; and” in paragraph (7); and (3) by adding at the end thereof the following new paragraph: “(8) Digital processing units for automatic data processing machines, unhoused, consisting of a printed circuit (single or multiple) with one or more electronic integrated circuits or other semiconductor devices mounted directly thereon, certified as units designed for use other than in an automatic data processing machine of subheading 8471.20 (provided for in sub-heading 8471.91).”. SEC. 1216. COMMISSION REPORT ON OPERATION OF SUBTITLE. The Commission, in consultation with other appropriate Federal agencies, shall prepare, and submit to the Congress and to the President, a report regarding the operation of this subtitle during the 12-month period commencing on the effective date of the Harmonized Tariff Schedule. The report shall be submitted to the Congress and to the President before the close of the 6-month period beginning on the day after the last day of such 12-month period. SEC. 1217. EFFECTIVE DATES. (a) Accession to Convention and Provisions Other Than the Implementation of the Harmonized Tariff Schedule.— Except as provided in subsection (b), the provisions of this subtitle take effect on the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988. (b) Implementation of the Harmonized Tariff Schedule.— The effective date of the Harmonized Tariff Schedule is January 1, 1989. On such date— (1) the amendments made by sections 1204(a), 1213, 1214, and 1215 take effect and apply with respect to articles entered on or after such date; and (2) sections 1204(c), 1211, and 1212 take effect. Subtitle C— Response to Unfair International Trade Practices PART 1— ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES SEC 1301. REVISION OF CHAPTER 1 OF TITLE III OF THE TRADE ACT OF 1971. (a) In General.— Chapter 1 of title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended to read as follows: “CHAPTER 1— ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES “SEC. 301. ACTIONS BY UNITED STATES TRADE REPRESENTATIVE. “(a) Mandatory Action.— “(1) If the United States Trade Representative determines under section 304(a)(1) that— “(A) the rights of the United States under any trade agreement are being denied; or “(B) an act, policy, or practice of a foreign country— “(i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or “(ii) is unjustifiable and burdens or restricts United States commerce; the Trade Representative shall take action authorized in subsection (c), subject to the specific direction, if any, of the President regarding any such action, and shall take all other appropriate and feasible action within the power of the President that the President may direct the Trade Representative to take under this subsection, to enforce such rights or to obtain the elimination of such act, policy, or practice. “(2) The Trade Representative is not required to take action under paragraph (1) in any case in which— “(A) the Contracting Parties to the General Agreement on Tariffs and Trade have determined, a panel of experts has reported to the Contracting Parties, or a ruling issued under the formal dispute settlement proceeding provided under any other trade agreement finds, that— “(i) the rights of the United States under a trade agreement are not being denied, or “(ii) the act, policy, or practice— “(I) is not a violation of, or inconsistent with, the rights of the United States, or “(II) does not deny, nullify, or impair benefits to the United States under any trade agreement; or “(B) the Trade Representative finds that— “(i) the foreign country is taking satisfactory measures to grant the rights of the United States under a trade agreement, “(ii) the foreign country has— “(I) agreed to eliminate or phase out the act, policy, or practice, or “(II) agreed to an imminent solution to the burden or restriction on United States commerce that is satisfactory to the Trade Representative, “(iii) it is impossible for the foreign country to achieve the results described in clause (i) or (ii), as appropriate, but the foreign country agrees to provide to the United States compensatory trade benefits that are satisfactory to the Trade Representative, “(iv) in extraordinary cases, where the taking of action under this subsection would have an adverse impact on the United States economy substantially out of proportion to the benefits of such action, taking into account the impact of not taking such action on the credibility of the provisions of this chapter, or “(v) the taking of action under this subsection would cause serious harm to the national security of the United States. “(3) Any action taken under paragraph (1) to eliminate an act, policy, or practice shall be devised so as to affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on United States commerce. “(b) Discretionary Action.— If the Trade Representative determines under section 304(a)(1) that— “(1) an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts United States commerce, and “(2) action by the United States is appropriate, the Trade Representative shall take all appropriate and feasible action authorized under subsection (c), subject to the specific direction, if any, of the President regarding any such action, and all other appropriate and feasible action within the power of the President that the President may direct the Trade Representative to take under this subsection, to obtain the elimination of that act, policy, or practice. “(c) Scope of Authority.— “(1) For purposes of carrying out the provisions of subsection (a) or (b), the Trade Representative is authorized to— “(A) suspend, withdraw, or prevent the application of, benefits of trade agreement concessions to carry out a trade agreement with the foreign country referred to in such subsection; “(B) impose duties or other import restrictions on the goods of, and, notwithstanding any other provision of law, fees or restrictions on the services of, such foreign country for such time as the Trade Representative determines appropriate; or “(C) enter into binding agreements with such foreign country that commit such foreign country to— “(i) eliminate, or phase out, the act, policy, or practice that is the subject of the action to be taken under subsection (a) or (b), “(ii) eliminate any burden or restriction on United States commerce resulting from such act, policy, or practice, or “(iii) provide the United States with compensatory trade benefits that— “(I) are satisfactory to the Trade Representative, and “(II) meet the requirements of paragraph (4). “(2) (A) Notwithstanding any other provision of law governing any service sector access authorization, and in addition to the authority conferred in paragraph (1), the Trade Representative may, for purposes of carrying out the provisions of subsection (a) or (b)— “(i) restrict, in the manner and to the extent the Trade Representative determines appropriate, the terms and conditions of any such authorization, or “(ii) deny the issuance of any such authorization. “(B) Actions described in subparagraph (A) may only be taken under this section with respect to service sector access authorizations granted, or applications therefor pending, on or after the date on which— “(i) a petition is filed under section 302(a), or “(ii) a determination to initiate an investigation is made by the Trade Representative under section 302(b). “(C) Before the Trade Representative takes any action under this section involving the imposition of fees or other restrictions on the services of a foreign country, the Trade Representative shall, if the services involved are subject to regulation by any agency of the Federal Government or of any State, consult, as appropriate, with the head of the agency concerned. “(3) The actions the Trade Representative is authorized to take under subsection (a) or (b) may be taken against any goods or economic sector— “(A) on a nondiscriminatory basis or solely against the foreign country described in such subsection, and “(B) without regard to whether or not such goods or economic sector were involved in the act, policy, or practice that is the subject of such action. “(4) Any trade agreement described in paragraph (1)(C)(iii) shall provide compensatory trade benefits that benefit the economic sector which includes the domestic industry that would benefit from the elimination of the act, policy, or practice that is the subject of the action to be taken under subsection (a) or (b), or benefit the economic sector as closely related as possible to such economic sector, unless— “(A) the provision of such trade benefits is not feasible, or “(B) trade benefits that benefit any other economic sector would be more satisfactory than such trade benefits. “(5) In taking actions under subsection (a) or (b), the Trade Representative shall— “(A) give preference to the imposition of duties over the imposition of other import restrictions, and “(B) if an import restriction other than a duty is imposed, consider substituting, on an incremental basis, an equivalent duty for such other import restriction. “(6) Any action taken by the Trade Representative under this section with respect to export targeting shall, to the extent possible, reflect the full benefit level of the export targeting to the beneficiary over the period during which the action taken has an effect. “(d) Definitions and Special Rules.— For purposes of this chapter— “(1) The term “commerce” includes, but is not limited to— “(A) services (including transfers of information) associated with international trade, whether or not such services are related to specific goods, and “(B) foreign direct investment by United States persons with implications for trade in goods or services. “(2) An act, policy, or practice of a foreign country that Maritime affairs. burdens or restricts United States commerce may include the provision, directly or indirectly, by that foreign country of subsidies for the construction of vessels used in the commercial transportation by water of goods between foreign countries and the United States. “(3) (A) An act, policy, or practice is unreasonable if the act, policy, or practice, while not necessarily in violation of, or inconsistent with, the international legal rights of the United States, is otherwise unfair and inequitable. “(B) Acts, policies, and practices that are unreasonable include, but are not limited to, any act, policy, or practice, or any combination of acts, policies, or practices, which— “(i) denies fair and equitable— “(I) opportunities for the establishment of an enterprise, “(II) provision of adequate and effective protection of Copyrights. Patents and trademarks. intellectual property rights, or “(III) market opportunities, including the toleration by a foreign government of systematic anticompetitive activities by private firms or among private firms in the foreign country that have the effect of restricting, on a basis that is inconsistent with commercial considerations, access of United States goods to purchasing by such firms, “(ii) constitutes export targeting, or “(iii) constitutes a persistent pattern of conduct that— “(I) denies workers the right of association, “(II) denies workers the right to organize and bargain collectively, “(III) permits any form of forced or compulsory labor, “(IV) fails to provide a minimum age for the employment Children and youth. Wages. Safety. of children, or “(V) fails to provide standards for minimum wages, hours of work, and occupational safety and health of workers. “(C) (i) Acts, policies, and practices of a foreign country described in subparagraph (B)(iii) shall not be treated as being unreasonable if the Trade Representative determines that— “(I) the foreign country has taken, or is taking, actions that demonstrate a significant and tangible overall advancement in providing throughout the foreign country (including any designated zone within the foreign country) the rights and other standards described in the subclauses of subparagraph (B)(iii), or “(II) such acts, policies, and practices are not inconsistent with the level of economic development of the foreign country. “(ii) The Trade Representative shall publish in the Federal Register any determination made under clause (i), together with a description of the facts on which such determination is based. “(D) For purposes of determining whether any act, policy, or practice is unreasonable, reciprocal opportunities in the United States for foreign nationals and firms shall be taken into ac-count, to the extent appropriate. “(E) The term ‘export targeting’ means any government plan or scheme consisting of a combination of coordinated actions (whether carried out severally or jointly) that are bestowed on a specific enterprise, industry, or group thereof, the effect of which is to assist the enterprise, industry, or group to become more competitive in the export of a class or kind of merchandise. “(4) (A) An act, policy, or practice is unjustifiable if the act, policy, or practice is in violation of, or inconsistent with, the international legal rights of the United States. “(B) Acts, policies, and practices that are unjustifiable include, but are not limited to, any act, policy, or practice described in subparagraph (A) which denies national or most-favored-nation treatment or the right of establishment or protection of intellectual property rights. “(5) Acts, policies, and practices that are discriminatory include, when appropriate, any act, policy, and practice which denies national or most-favored-nation treatment to United States goods, services, or investment. “(6) The term ‘service sector access authorization’ means any license, permit, order, or other authorization, issued under the authority of Federal law, that permits a foreign supplier of services access to the United States market in a service sector concerned. “(7) The term ‘foreign country’ includes any foreign instrumentality. Any possession or territory of a foreign country that is administered separately for customs purposes shall be treated as a separate foreign country. “(8) The term ‘Trade Representative’ means the United States Trade Representative. “(9) The term ‘interested persons’, only for purposes of sections 302(a)(4)(B), 304(b)(1)(A), 306(c)(2), and 307(a)(2), includes, but is not limited to, domestic firms and workers, representatives of consumer interests, United States product exporters, and any industrial user of any goods or services that may be affected by actions taken under subsection (a) or (b). “SEC. 302. INITIATION OF INVESTIGATIONS. “(a) Petitions.— “(1) Any interested person may file a petition with the Trade Representative requesting that action be taken under section 301 and setting forth the allegations in support of the request. “(2) The Trade Representative shall review the allegations in any petition filed under paragraph (1) and, not later than 45 days after the date on which the Trade Representative received the petition, shall determine whether to initiate an investigation. “(3) If the Trade Representative determines not to initiate an Federal Register, publication. investigation with respect to a petition, the Trade Representative shall inform the petitioner of the reasons therefor and shall publish notice of the determination, together with a summary of such reasons, in the Federal Register. “(4) If the Trade Representative makes an affirmative determination under paragraph (2) with respect to a petition, the Trade Representative shall initiate an investigation regarding the issues raised in the petition. The Trade Representative shall Federal Register, publication. publish a summary of the petition in the Federal Register and shall, as soon as possible, provide opportunity for the presentation of views concerning the issues, including a public hearing— “(A) within the 30-day period beginning on the date of the affirmative determination (or on a date after such period if agreed to by the petitioner) if a public hearing within such period is requested in the petition, or “(B) at such other time if a timely request therefor is made by the petitioner or by any interested person. “(b) Initiation of Investigation by Means Other Than Petition.— “(1) (A) If the Trade Representative determines that an investigation Federal Register, publication. should be initiated under this chapter with respect to any matter in order to determine whether the matter is action-able under section 301, the Trade Representative shall publish such determination in the Federal Register and shall initiate such investigation. “(B) The Trade Representative shall, before making any determination under subparagraph (A), consult with appropriate committees established pursuant to section 135. “(2) (A) By no later than the date that is 30 days after the date on which a country is identified under section 182(a)(2), the Trade Representative shall initiate an investigation under this chapter with respect to any act, policy, or practice of that country that— “(i) was the basis for such identification, and “(ii) is not at that time the subject of any other investigation or action under this chapter. “(B) The Trade Representative is not required under subparagraph (A) to initiate an investigation under this chapter with respect to any act, policy, or practice of a foreign country if the Trade Representative determines that the initiation of the investigation would be detrimental to United States economic interests. “(C) If the Trade Representative makes a determination under subparagraph (B) not to initiate an investigation, the Trade Representative shall submit to the Congress a written report setting forth, in detail— “(i) the reasons for the determination, and “(ii) the United States economic interests that would be adversely affected by the investigation. “(D) The Trade Representative shall, from time to time, consult with the Register of Copyrights, the Commissioner of Patents and Trademarks, and other appropriate officers of the Federal Government, during any investigation initiated under this chapter by reason of subparagraph (A). “(c) Discretion.— In determining whether to initiate an investigation under subsection (a) or (b) of any act, policy, or practice that is enumerated in any provision of section 301(d), the Trade Representative shall have discretion to determine whether action under section 301 would be effective in addressing such act, policy, or practice. “SEC. 303. CONSULTATION UPON INITIATION OF INVESTIGATION. “(a) In General.— “(1) On the date on which an investigation is initiated under section 302, the Trade Representative, on behalf of the United States, shall request consultations with the foreign country concerned regarding the issues involved in such investigation. “(2) If the investigation initiated under section 302 involves a trade agreement and a mutually acceptable resolution is not reached before the earlier of— “(A) the close of the consultation period, if any, specified in the trade agreement, or “(B) the 150th day after the day on which consultation was commenced, the Trade Representative shall promptly request proceedings on the matter under the formal dispute settlement procedures provided under such agreement. “(3) The Trade Representative shall seek information and advice from the petitioner (if any) and the appropriate commit-tees established pursuant to section 135 in preparing United States presentations for consultations and dispute settlement proceedings. “(b) Delay of Request for Consultations.— “(1) Notwithstanding the provisions of subsection (a)— “(A) the United States Trade Representative may, after consulting with the petitioner (if any), delay for up to 90 days any request for consultations under subsection (a) for the purpose of verifying or improving the petition to ensure an adequate basis for consultation, and “(B) if such consultations are delayed by reason of subparagraph (A), each time limitation under section 304 shall be extended for the period of such delay. “(2) The Trade Representative shall— “(A) publish notice of any delay under paragraph (1) in the Federal Register, and “(B) report to Congress on the reasons for such delay in the report required under section 309(a)(3). “SEC. 304. DETERMINATIONS BY THE TRADE REPRESENTATIVE. “(a) In General.— “(1) On the basis of the investigation initiated under section 302 and the consultations (and the proceedings, if applicable) under section 303, the Trade Representative shall— “(A) determine whether— “(i) the rights to which the United States is entitled under any trade agreement are being denied, or “(ii) any act, policy, or practice described in subsection (a)(1)(B) or (b)(1) of section 301 exists, and “(B) if the determination made under subparagraph (A) is affirmative, determine what action, if any, the Trade Representative should take under subsection (a) or (b) of section 301. “(2) The Trade Representative shall make the determinations required under paragraph (1) on or before— “(A) in the case of an investigation involving a trade agreement (other than the agreement on subsidies and countervailing measures described in section 2(c)(5) of the Trade Agreements Act of 1979), the earlier of— “(i) the date that is 30 days after the date on which the dispute settlement procedure is concluded, or “(ii) the date that is 18 months after the date on which the investigation is initiated, or “(B) in all cases not described in subparagraph (A) or paragraph (3), the date that is 12 months after the date on which the investigation is initiated. “(3) (A) If an investigation is initiated under this chapter by reason of section 302(b)(2) and the Trade Representative does not make a determination described in subparagraph (B) with respect to such investigation, the Trade Representative shall make the determinations required under paragraph (1) with respect to such investigation by no later than the date that is 6 months after the date on which such investigation is initiated. “(B) If the Trade Representative determines with respect to any investigation initiated by reason of section 302(b)(2) that— “(i) complex or complicated issues are involved in the investigation that require additional time, “(ii) the foreign country involved in the investigation is Copyrights. Patents and trademarks. making substantial progress in drafting or implementing legislative or administrative measures that will provide adequate and effective protection of intellectual property rights, or “(iii) such foreign country is undertaking enforcement measures to provide adequate and effective protection of intellectual property rights, the Trade Representative shall publish in the Federal Register Federal Register, publication. notice of such determination and shall make the determinations required under paragraph (1) with respect to such investigation by no later than the date that is 9 months after the date on which such investigation is initiated. “(4) In any case in which a dispute is not resolved before the Reports. close of the minimum dispute settlement period provided for in a trade agreement (other than the agreement on subsidies and countervailing measures described in section 2(c)(5) of the Trade Agreements Act of 1979), the Trade Representative, within 15 days after the close of such dispute settlement period, shall submit a report to Congress setting forth the reasons why the dispute was not resolved within the minimum dispute settlement period, the status of the case at the close of the period, and the prospects for resolution. For purposes of this paragraph, the minimum dispute settlement period provided for under any such trade agreement is the total period of time that results if all stages of the formal dispute settlement procedures are carried out within the time limitations specified in the agreement, but computed without regard to any extension authorized under the agreement at any stage. “(b) Consultation Before Determinations/— “(1) Before making the determinations required under subsection (a)(1), the Trade Representative, unless expeditious action is required— “(A) shall provide an opportunity (after giving not less than 30 days notice thereof) for the presentation of views by interested persons, including a public hearing if requested by any interested person, “(B) shall obtain advice from the appropriate committees established pursuant to section 135, and “(C) may request the views of the United States International Trade Commission regarding the probable impact on the economy of the United States of the taking of action with respect to any goods or service. “(2) If the Trade Representative does not comply with the requirements of subparagraphs (A) and (B) of paragraph (1) because expeditious action is required, the Trade Representative shall, after making the determinations under subsection (a)(1), comply with such subparagraphs. “(c) Publication.— The Trade Representative shall publish in the Federal Register any determination made under subsection (a)(1), together with a description of the facts on which such determination is based. “SEC 305. IMPLEMENTATION OF ACTIONS. “(a) Actions To Be Taken Under Section 301.— “(1) Except as provided in paragraph (2), the Trade Representative shall implement the action the Trade Representative determines under section 304(a)(1)(B) to take under section 301, subject to the specific direction, if any, of the President regarding any such action, by no later than the date that is 30 days after the date on which such determination is made. “(2) (A) Except as otherwise provided in this paragraph, the Trade Representative may delay, by not more than 180 days, the implementation of any action that is to be taken under section 301— “(i) if— “(I) in the case of an investigation initiated under section 302(a), the petitioner requests a delay, or “(II) in the case of an investigation initiated under section 302(b)(1) or to which section 304(a)(3)(B) applies, a delay is requested by a majority of the representatives of the domestic industry that would benefit from the action, or “(ii) if the Trade Representative determines that substantial progress is being made, or that a delay is necessary or desirable, to obtain United States rights or a satisfactory solution with respect to the acts, policies, or practices that are the subject of the action. “(B) The Trade Representative may not delay under subparagraph (A) the implementation of any action that is to be taken under section 301 with respect to any investigation to which section 304(a)(3)(A) applies. “(C) The Trade Representative may not delay under subparagraph (A) the implementation of any action that is to be taken under section 301 with respect to any investigation to which section 304(a)(3)(B) applies by more than 90 days. “(b) Alternative Actions in Certain Cases of Export Targeting.— “(1) If the Trade Representative makes an affirmative determination under section 304(a)(1)(A) involving export targeting by a foreign country and determines to take no action under section 301 with respect to such affirmation determination, the Trade Representative— “(A) shall establish an advisory panel to recommend measures which will promote the competitiveness of the domestic industry affected by the export targeting, “(B) on the basis of the report of such panel submitted under paragraph (2)(B) and subject to the specific direction, if any, of the President, may take any administrative actions authorized under any other provision of law, and, if necessary, propose legislation to implement any other actions, that would restore or improve the international competitiveness of the domestic industry affected by the export targeting, and “(C) shall, by no later than the date that is 30 days after Reports. the date on which the report of such panel is submitted under paragraph (2)(B), submit a report to the Congress on the administrative actions taken, and legislative proposals made, under subparagraph (B) with respect to the domestic industry affected by the export targeting. “(2) (A) The advisory panels established under paragraph (1)(A) shall consist of individuals appointed by the Trade Representative who— “(i) earn their livelihood in the private sector of the economy, including individuals who represent management and labor in the domestic industry affected by the export targeting that is the subject of the affirmative determination made under section 304(a)(1)(A), and “(ii) by education or experience, are qualified to serve on the advisory panel. “(B) By no later than the date that is 6 months after the date Reports. on which an advisory panel is established under paragraph (1)(A), the advisory panel shall submit to the Trade Representative and to the Congress a report on measures that the advisory panel recommends be taken by the United States to promote the competitiveness of the domestic industry affected by the export targeting that is the subject of the affirmative determination made under section 304(a)(1)(A). “SEC. 306. MONITORING OF FOREIGN COMPLIANCE. “(a) In General.— The Trade Representative shall monitor the implementation of each measure undertaken, or agreement of a kind described in clause (i), (ii), or (iii) of section 301(a)(2)(B) that is entered into under subsection (a) or (b) of section 301, by a foreign country— “(1) to enforce the rights of the United States under any trade agreement, or “(2) to eliminate any act, policy, or practice described in subsection (a)(1)(B) or (b)(1) of section 301. “(b) Further Action.— 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). “(c) Consultations.— Before making any determination under subsection (b), the Trade Representative shall— “(1) consult with the petitioner, if any, involved in the initial investigation under this chapter and with representatives of the domestic industry concerned; and “(2) provide an opportunity for the presentation of views by interested persons. “SEC. 307. MODIFICATION AND TERMINATION OF ACTIONS. “(a) In General.— “(1) The Trade Representative may modify or terminate any action, subject to the specific direction, if any, of the President with respect to such action, that is being taken under section 301 if— “(A) any of the conditions described in section 301(a)(2) exist, “(B) the burden or restriction on United States commerce of the denial rights, or of the acts, policies, and practices, that are the subject of such action has increased or decreased, or “(C) such action is being taken under section 301(b) and is no longer appropriate. “(2) Before taking any action under paragraph (1) to modify or terminate any action taken under section 301, the Trade Representative shall consult with the petitioner, if any, and with representatives of the domestic industry concerned, and shall provide opportunity for the presentation of views by other interested persons affected by the proposed modification or termination concerning the effects of the modification or termination and whether any modification or termination of the action is appropriate. “(b) Notice; Report to Congress.— The Trade Representative shall promptly publish in the Federal Register notice of, and report in writing to the Congress with respect to, any modification or termination of any action taken under section 301 and the reasons therefor. “(c) Review of Necessity.— “(1) If— “(A) a particular action has been taken under section 301 during any 4-year period, and “(B) neither the petitioner nor any representative of the domestic industry which benefits from such action has submitted to the Trade Representative during the last 60 days of such 4-year period a written request for the continuation of such action, such action shall terminate at the close of such 4-year period. “(2) The Trade Representative shall notify by mail the petitioner and representatives of the domestic industry described in paragraph (1)(B) of any termination of action by reason of paragraph (1) at least 60 days before the date of such termination. “(3) If a request is submitted to the Trade Representative under paragraph (1)(B) to continue taking a particular action under section 301, the Trade Representative shall conduct a review of— “(A) the effectiveness in achieving the objectives of section 301 of— “(i) such action, and “(ii) other actions that could be taken (including actions against other products or services), and “(B) the effects of such actions on the United States Consumer protection. economy, including consumers. “SEC. 308. REQUEST FOR INFORMATION. “(a) In General.— Upon receipt of written request therefor from any person, the Trade Representative shall make available to that person information (other than that to which confidentiality applies) concerning— “(1) the nature and extent of a specific trade policy or practice Securities. Copyrights. Patents and trademarks. of a foreign country with respect to particular goods, services, investment, or intellectual property rights, to the extent that such information is available to the Trade Representative or other Federal agencies; “(2) United States rights under any trade agreement and the remedies which may be available under that agreement and under the laws of the United States; and “(3) past and present domestic and international proceedings or actions with respect to the policy or practice concerned. “(b) If Information Not Available.— If information that is requested by a person under subsection (a) is not available to the Trade Representative or other Federal agencies, the Trade Representative shall, within 30 days after receipt of the request— “(1) request the information from the foreign government; or “(2) decline to request the information and inform the person in writing of the reasons for refusal. “(c) Certain Business Information Not Made Available.— “(1) Except as provided in paragraph (2), and notwithstanding any other provision of law (including section 552 of title 5, United States Code), no information requested and received by the Trade Representative in aid of any investigation under this chapter shall be made available to any person if— “(A) the person providing such information certifies that— “(i) such information is business confidential, “(ii) the disclosure of such information would endanger trade secrets or profitability, and “(iii) such information is not generally available; “(B) the Trade Representative determines that such certification is well-founded; and “(C) to the extent required in regulations prescribed by the Trade Representative, the person providing such information provides an adequate nonconfidential summary of such information. “(2) The Trade Representative may— “(A) use such information, or make such information available (in his own discretion) to any employee of the Federal Government for use, in any investigation under this chapter, or “(B) may make such information available to any other person in a form which cannot be associated with, or other-wise identify, the person providing the information. “SEC. 309. ADMINISTRATION. “The Trade Representative shall— “(1) issue regulations concerning the filing of petitions and the conduct of investigations and hearings under this sub-chapter, “(2) keep the petitioner regularly informed of all determinations and developments regarding the investigation conducted with respect to the petition under this chapter, including the reasons for any undue delays, and “(3) submit a report to the House of Representatives and the Senate semiannually describing— “(A) the petitions filed and the determinations made (and reasons therefor) under section 302, “(B) developments in, and the current status of, each investigation or proceeding under this chapter, “(C) the actions taken, or the reasons for no action, by the Trade Representative under section 301 with respect to investigations conducted under this chapter, and “(D) the commercial effects of actions taken under section 301.”. (b) Conforming Amendment.— The table of contents of the Trade Act of 1974 is amended by striking out the items relating to chapter 1 of title III and inserting in lieu thereof the following: “Chapter 1— Enforcement of United States Rights Under Trade Agreements and Response to Foreign Trade Practices “Sec. 301. Actions by United States Trade Representative. “Sec. 302. Initiation of investigations. “Sec. 303. Consultation upon initiation of investigation. “Sec. 304. Determinations by the Trade Representative. “Sec. 305. Implementation of actions. “Sec. 306. Monitoring of foreign compliance. “Sec. 307. Modification and termination of actions. “Sec. 308. Request for information. “Sec. 309. Administration.”. (c) Effective Date.— The amendments made by this section shall apply to— (1) petitions filed, and investigations initiated, under section 302 of the Trade Act of 1974 on or after the date of the enactment of this Act; and (2) petitions filed, and investigations initiated, before the date of enactment of this Act, if by that date no decision had been made under section 304 regarding the petition or investigation. SEC 1302. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. (a) In General.— Chapter 1 of title III of the Trade Act of 1974, as amended by section 1301, is further amended by adding at the end thereof the following new section: “SEC 310. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. “(a) Identification.— “(1) By no later than the date that is 30 days after the date in calendar year 1989, and also the date in calendar year 1990, on which the report required under section 181(b) is submitted to the appropriate Congressional committees, the Trade Representative shall identify United States trade liberalization priorities, including— “(A) priority practices, including major barriers and trade distorting practices, the elimination of which are likely to have the most significant potential to increase United States exports, either directly or through the establishment of a beneficial precedent; “(B) priority foreign countries that, on the basis of such report, satisfy the criteria in paragraph (2); “(C) estimate the total amount by which United States exports of goods and services to each foreign country identified under subparagraph (B) would have increased during the preceding calendar year if the priority practices of such country identified under subparagraph (A) did not exist; and “(D) submit to the Committee on Finance of the Senate, Reports. Federal Register, publication. the Committee on Ways and Means of the House of Representatives, and publish in the Federal Register, a report which lists— “(i) the priority foreign countries identified under subparagraph (B), “(ii) the priority practices identified under subparagraph (A) with respect to each of such priority foreign countries, and “(iii) the amount estimated under subparagraph (C) with respect to each of such priority foreign countries. “(2) In identifying priority foreign countries under paragraph (1)(B), the Trade Representative shall take into account— “(A) the number and pervasiveness of the acts, policies, and practices described in section 181(a)(1)(A), and “(B) the level of United States exports of goods and services that would be reasonably expected from full implementation of existing trade agreements to which that foreign country is a party, based on the international competitive position and export potential of such products and services. “(3) In identifying priority practices under paragraph (1)(A), the Trade Representative shall take into account— “(A) the international competitive position and export potential of United States products and services, “(B) circumstances in which the sale of a small quantity of a product or service may be more significant than its value, and “(C) the measurable medium-term and long-term implications of government procurement commitments to United States exporters. “(b) Initiation of Investigations.— By no later than the date that is 21 days after the date on which a report is submitted to the appropriate Congressional committees under subsection (a)(1)(D), the Trade Representative shall initiate under section 302(b)(1) investigations under this chapter with respect to all of those priority practices identified in such report by reason of subsection (a)(1)(D) for each of the priority foreign countries. The Trade Representative may initiate investigations under section 302(b)(1) with respect to all other priority practices identified under subsection (a)(1)(A). “(c) Agreements for the Elimination of Barriers.— “(1) In the consultations with a priority foreign country identified under subsection (a)(1) 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 which provides for— “(A) the elimination of, or compensation for, the priority practices identified under subsection (a)(1)(A) by no later than the close of the 3-year period beginning on the date on which such investigation is initiated, and “(B) the reduction of such practices over a 3-year period with the expectation that United States exports to the foreign country will, as a result, increase incrementally during each year within such 3-year period. “(2) Any investigation initiated under this chapter by reason of subsection (b) shall be suspended if an agreement described in subparagraphs (A) and (B) of paragraph (1) is entered into with the foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented. “(3) If an agreement described in paragraph (1) is entered into with a foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented and the Trade Representative determines that the foreign country is not in compliance with such agreement, the Trade Representative shall continue the investigation that was suspended by reason of such agreement as though such investigation had not been suspended. “(d) Annual Reports.— “(1) On the date on which the report the Trade Representative is required to submit under subsection (a)(1)(D) in calendar year 1990, and on the anniversary of such date in the succeeding calendar years, the Trade Representative shall submit a report which includes— “(A) revised estimates of the total amount determined under subsection (a)(1)(C) for each priority foreign country that has been identified under subsection (a)(1)(B), “(B) evidence that demonstrates, in the form of increased United States exports to each of such priority foreign countries during the previous calendar year— “(i) in the case of a priority foreign country that has entered into an agreement described in subsection (c)(1), substantial progress during each year within the 3-year period described in subsection (c)(1)(A) toward the goal of eliminating the priority practices identified under subsection (a)(1)(A) by the close of such 3-year period, and “(ii) in the case of a country which has not entered into (or has not complied with) an agreement described in subsection (c)(1), the elimination of such practices, and “(C) to the extent that the evidence described in subparagraph (B) cannot be provided, any actions that have been taken by the Trade Representative under section 301 with respect to such priority practices of each of such foreign countries. “(2) The Trade Representative may exclude from the requirements of paragraph (1) in any calendar year beginning after 1993 any foreign country that has been identified under subsection (a)(1)(A) if the evidence submitted under paragraph (1)(B) in the 2 previous reports demonstrated that all the priority prac-tices identified under subsection (a)(1)(A) with respect to such foreign country have been eliminated.”. (b) Conforming Amendment.— The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 309 the following new item: “Sec. 310. Identification of trade liberalization priorities.”. SEC. 1303. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE AND EFFECTIVE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS. (a) Findings and Purpose.— (1) The Congress finds that— (A) international protection of intellectual property rights is vital to the international competitiveness of United States persons that rely on protection of intellectual property rights; and (B) the absence of adequate and effective protection of United States intellectual property rights, and the denial of fair and equitable market access, seriously impede the ability of the United States persons that rely on protection of intellectual property rights to export and operate overseas, thereby harming the economic interests of the United States. (2) The purpose of this section is to provide for the development of an overall strategy to ensure adequate and effective protection of intellectual property rights and fair and equitable market access for United States persons that rely on protection of intellectual property rights. (b) In General.— Chapter 8 of title I of the Trade Act of 1974 is amended by adding at the end thereof the following new section: “SEC 182. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE PROTECTION, OR MARKET ACCESS, FOR INTELLECTUAL PROPERTY RIGHTS. “(a) In General.— By no later than the date that is 30 days after the date on which the annual report is submitted to Congressional committees under section 181(b), the United States Trade Representative (hereafter in this section referred to as the ‘Trade Representative’) shall identify— “(1) those foreign countries that— “(A) deny adequate and effective protection of intellectual property rights, or “(B) deny fair and equitable market access to United States persons that rely upon intellectual property protection, and “(2) those foreign countries identified under paragraph (1) that are determined by the Trade Representative to be priority foreign countries. “(b) Special Rules for Identifications.— “(1) In identifying priority foreign countries under subsection (a)(2), the Trade Representative shall only identify those foreign countries— “(A) that have the most onerous or egregious acts, policies, or practices that— “(i) deny adequate and effective intellectual property rights, or “(ii) deny fair and equitable market access to United States persons that rely upon intellectual property protection, “(B) whose acts, policies, or practices described in subparagraph (A) have the greatest adverse impact (actual or potential) on the relevant United States products, and “(C) that are not— “(i) entering into good faith negotiations, or “(ii) making significant progress in bilateral or multi-lateral negotiations, to provide adequate and effective protection of intellectual property rights. “(2) In identifying priority foreign countries under subsection (a)(2), the Trade Representative shall— “(A) consult with the Register of Copyrights, the Commissioner of Patents and Trademarks, other appropriate officers of the Federal Government, and “(B) take into account information from such sources as may be available to the Trade Representative and such information as may be submitted to the Trade Representative by interested persons, including information contained in reports submitted under section 181(b) and petitions submitted under section 302. “(3) The Trade Representative may identify a foreign country under subsection (a)(1)(B) only if the Trade Representative finds that there is a factual basis for the denial of fair and equitable market access as a result of the violation of international law or agreement, or the existence of barriers, referred to in subsection (d)(3). “(c) Revocations and Additional Identifications.— “(1) The Trade Representative may at any time— “(A) revoke the identification of any foreign country as a priority foreign country under this section, or “(B) identify any foreign country as a priority foreign country under this section, if information available to the Trade Representative indicates that such action is appropriate. “(2) The Trade Representative shall include in the semi-annual report submitted to the Congress under section 309(3) a detailed explanation of the reasons for the revocation under paragraph (1) of the identification of any foreign country as a priority foreign country under this section. “(d) Definitions.— For purposes of this section— “(1) The term ‘persons that rely upon intellectual property protection’ means persons involved in— “(A) the creation, production or licensing of works of authorship (within the meaning of sections 102 and 103 of title 17, United States Code) that are copyrighted, or “(B) the manufacture of products that are patented or for which there are process patents. “(2) A foreign country denies adequate and effective protection of intellectual property rights if the foreign country denies adequate and effective means under the laws of the foreign country for persons who are not citizens or nationals of such foreign country to secure, exercise, and enforce rights relating to patents, process patents, registered trademarks, copyrights and mask works. “(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, patent, or process patent through the use of laws, procedures, practices, or regulations which— “(A) violate provisions of international law or international agreements to which both the United States and the foreign country are parties, or “(B) constitute discriminatory nontariff trade barriers. “(e) Publication.— The Trade Representative shall publish in the Federal Register, publication. Federal Register a list of foreign countries identified under subsection (a) and shall make such revisions to the list as may be required by reason of action under subsection (c).”. (c) Conforming Amendments.— (1) The heading for chapter 8 of title I of the Trade Act of 1974 is amended to read as follows: “CHAPTER 8— IDENTIFICATION OF MARKET BARRIERS AND CERTAIN UNFAIR TRADE ACTIONS”. (2) The table of contents for the Trade Act of 1974 is amended— (A) by striking out the item relating to chapter 8 of title I and inserting in lieu thereof the following: “Chapter 8— Identification of Market Barriers and Certain Unfair Trade Practices”, and (B) by inserting after the item relating to section 181 the following new item: “Sec. 182. Identification of countries that deny adequate protection, or market access, for intellectual property rights.”. SEC. 1304. AMENDMENTS TO THE NATIONAL TRADE ESTIMATES. (a) In General.— Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is amended— (1) by striking out “Not later than the date on which the initial report is required under subsection (b)(1),” in subsection (a)(1) and inserting in lieu thereof “For calendar year 1988, and for each succeeding calendar year,”, (2) by inserting of each foreign country” after “or practices” in subsection (a)(1)(A), (3) by striking out “and” at the end of subsection (a)(1)(A)(ii), (4) by striking out the period at the end of subsection (a)(1)(B) and inserting in lieu thereof “; and”, (5) by adding at the end of subsection (a)(1) the following new subparagraph: “(C) make an estimate, if feasible, of— “(i) the value of additional goods and services of the United States, and “(ii) the value of additional foreign direct investment by United States persons, that would have been exported to, or invested in, each foreign country during such calendar year if each of such acts, policies, and practices of such country did not exist.”, (6) by striking out “and” at the end of subsection (a)(2)(C), (7) by striking out the period at the end of subsection (a)(2)(D) and inserting in lieu thereof “; and”, (8) by adding at the end of subsection (a)(2) the following new subparagraph: “(E) the actual increase in— “(i) the value of goods and services of the United States exported to, and “(ii) the value of foreign direct investment made in, the foreign country during the calendar year for which the estimate under paragraph (1)(C) is made.”, (9) by inserting “and with the assistance of the interagency advisory committee established under section 141(d)(2),” after “Trade Expansion Act of 1962,” in subsection (a)(1), and (10) by striking out “ACTIONS CONCERNING” in the section heading and inserting in lieu thereof “ESTIMATES OF”. (b) Submission of Report.— Paragraph (1) of section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241(b)(1)) is amended to read as follows: “(1) On or before April 30, 1989, and on or before March 31 of each succeeding calendar year, the Trade Representative shall submit a report on the analysis and estimates made under subsection (a) for the calendar year preceding such calendar year (which shall be known as the ‘National Trade Estimate’) to the President, the Committee on Finance of the Senate, and appropriate committees of the House of Representatives.”. SEC. 1305. INVESTIGATION OF BARRIERS IN JAPAN TO CERTAIN UNITED STATES SERVICES. The United States Trade Representative shall, within 90 days after the date of enactment of this Act, initiate an investigation under section 302 of the Trade Act of 1974 regarding those acts, policies, and practices of the Government of Japan, and of entities owned, financed, or otherwise controlled by the Government of Japan, that are barriers in Japan to the offering or performance by United States persons of architectural, engineering, construction, and consulting services in Japan. SEC. 1306. TRADE AND ECONOMIC RELATIONS WITH JAPAN. (a) Findings.— The Congress finds that— (1) the United States is at a critical juncture in bilateral relations with Japan; (2) the balance of trade between the United States and Japan has deteriorated steadily from an already large United States deficit of $10,400,000,000 in 1980 to an unprecedented United States deficit of $57,700,000,000 in 1987, a magnitude that is simply untenable; (3) approximately 90 percent of the increase in total trade between the United States and Japan since 1980 has been in Japanese exports to the United States; (4) United States exports to Japan have not significantly benefited from appreciation of the yen; (5) the United States deficit in the balance of trade in manufactured goods is growing: in 1987 Japan exported $82,500,000,000 of manufactured goods to the United States, while the United States exported $14,600,000,000 in manufactured goods; (6) Japan accounts for 49 percent of the worldwide deficit of the United States in the balance of trade in manufactured goods, calculated on a customs basis; (7) our trade and economic relations with Japan are complex and cannot be effectively resolved through narrow sector-by-sector negotiations; (8) a major problem between the United States and Japan is the absence of a political will in Japan to import; and (9) meaningful negotiations must take place at the highest level, at a special summit of political leaders from both countries. (b) Sense of the Congress.— (1) It is the sense of the Congress that the President should propose to the Japanese Prime Minister that a special summit be held between the leaders of the United States and Japan for the purpose of— (A) addressing trade and economic issues, and (B) establishing— (i) an agreement that provides objectives for improvement in trade and economic relations, and (ii) targets for achieving these objectives. (2) The delegation of the United States to the summit meeting described in subsection (a) should include— (A) Members of Congress from both political parties, and (B) appropriate officers of the executive branch of the United States Government. (3) The delegation of Japan to the summit meeting described in subsection (a) should include— (A) representatives of all political parties in Japan, and (B) appropriate officers of the Government of Japan. SEC. 1307. SUPERCOMPUTER TRADE DISPUTE. (a) Findings.— The Congress finds that— (1) United States manufacturers of supercomputers have encountered significant obstacles in selling supercomputers in Japan, particularly to government agencies and universities; (2) Japanese government procurement policies and pricing practices have denied United States manufacturers access to the Japanese supercomputer market; (3) it has been reported that officials of the Ministry of International Trade and Industry of Japan have told United States Government officials that Japanese government agencies and universities do not intend to purchase supercomputers from United States manufacturers, or take steps to improve access for United States manufacturers; (4) the United States Government in August 1987 signed an agreement with the Government of Japan establishing procedures for the procurement of United States supercomputers by the Government of Japan; (5) concern remains as to implementation of the procurement agreement by the Government of Japan; (6) there have been allegations that Japanese manufacturers of supercomputers have been offering supercomputers at drastically discounted prices in the markets of the United States, Japan, and other countries; (7) deep price discounting raises the concern that Japan’s large-scale vertically integrated manufacturers of supercomputers have targeted the supercomputer industry with the objective of eventual domination of the global computer market; and (8) the supercomputer industry plays a central role in the technological competitiveness and national security of the United States. (b) Sense of Congress.— It is the sense of the Congress that the United States Trade Representative and other appropriate officials of the United States Government should— (1) give the highest priority to concluding and enforcing agreements with the Government of Japan which achieve improved market access for United States manufacturers of supercomputers and end any predatory pricing activities of Japanese companies in the United States, Japan, and other countries; and (2) continue to monitor the efforts of United States manufacturers of supercomputers to gain access to the Japanese market, recognizing that the Government of Japan may continue to manipulate the government procurement process to maintain the market dominance of Japanese manufacturers. PART 2— IMPROVEMENT IN THE ENFORCEMENT OF THE ANTIDUMPING AND COUNTERVAILING DUTY LAWS SEC. 1311. REFERENCE TO TITLE VII OF THE TARIFF ACT OF 1930. Unless otherwise provided, whenever in this part an amendment or repeal is expressed in terms of an amendment to, or repeal of, a subtitle, section, subsection, or other provision, the reference shall be considered to be made to a subtitle, section, subsection, or other provision of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.). SEC. 1312. ACTIONABLE DOMESTIC SUBSIDIES. Paragraph (5) of section 771 (19 U.S.C. 1677(5)) is amended to read as follows: “(5) Subsidy.— “(A) In general.— The term ‘subsidy’ has the same meaning as the term ‘bounty or grant’ as that term is used in section 303, and includes, but is not limited to, the following: “(i) Any export subsidy described in Annex A to the Agreement (relating to illustrative list of export subsidies). “(ii) The following domestic subsidies, if provided or required by government action to a specific enterprise or industry, or group of enterprises or industries, whether publicly or privately owned and whether paid or bestowed directly or indirectly on the manufacture, production, or export of any class or kind of merchandise: “(I) The provision of capital, loans, or loan guarantees on terms inconsistent with commercial considerations. “(II) The provision of goods or services at preferential rates. “(III) The grant of funds or forgiveness of debt to cover operating losses sustained by a specific industry. “(IV) The assumption of any costs or expenses of manufacture, production, or distribution. “(B) Special rule.— In applying subparagraph (A), the administering authority, in each investigation, shall determine whether the bounty, grant, or subsidy in law or in fact is provided to a specific enterprise or industry, or group of enterprises or industries. Nominal general availability, under the terms of the law, regulation, program, or rule establishing a bounty, grant, or subsidy, of the benefits thereunder is not a basis for determining that the bounty, grant, or subsidy is not, or has not been, in fact provided to a specific enterprise or industry, or group thereof.”. SEC. 1313. CALCULATION OF SUBSIDIES ON CERTAIN PROCESSED AGRICULTURAL PRODUCTS. (a) In General.— Title VII of the Tariff Act of 1930 is amended by inserting after section 771A (19 U.S.C. 1677–1) the following new section: “Sec. 771B. In the case of an agricultural product processed from 19 USC 1677–2. a raw agricultural product in which (1) the demand for the prior stage product is substantially dependent on the demand for the latter stage product, and (2) the processing operation adds only limited value to the raw commodity, subsidies found to be provided to either producers or processors of the product shall be deemed to be provided with respect to the manufacture, production, or exportation of the processed product.”. (b) Conforming Amendment.— The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 771A the following: “Sec. 771B. Calculation of subsidies on certain processed agricultural products.”. SEC. 1314. REVOCATION OF STATUS AS A COUNTRY UNDER THE AGREEMENT. Section 701 (19 U.S.C. 1671) is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: “(c) Revocation of Status as a Country Under the Agreement.— The United States Trade Representative may revoke the status of a foreign country as a country under the Agreement for purposes of this subtitle if such foreign country— “(1) announces that such foreign country does not intend, or is not able, to honor the obligations it has assumed with respect to the United States or the Agreement for purposes of this subtitle, or “(2) does not in fact honor such obligations.”. SEC. 1315. TREATMENT OF INTERNATIONAL CONSORTIA. Section 701 (19 U.S.C. 1671) (as amended by section 1314) is further amended— (1) by redesignating subsection (d) as subsection (e, and (2) by inserting after subsection (c) the following new subsection: “(d) Treatment of International Consortia.— For purposes of this subtitle, if the members (or other participating entities) of an international consortium that is engaged in the production of a class or kind of merchandise subject to a countervailing duty investigation receive subsidies from tneir respective home countries to assist, permit, or otherwise enable their participation in that consortium through production or manufacturing operations in their respective home countries, then the administering authority shall cumulate all such subsidies, as well as subsidies provided directly to the international consortium, in determining any countervailing duty upon such merchandise.”. SEC. 1316. DUMPING BY NONMARKET ECONOMY COUNTRIES. (a) In General.— Subsection (c) of section 773 (19 U.S.C. 1677b) is amended to read as follows: “(c) Nonmarket Economy Countries.— “(1) In general.— If— “(A) the merchandise under investigation is exported from a nonmarket economy country, and “(B) the administering authority finds that available information does not permit the foreign market value of the merchandise to be determined under subsection (a), the administering authority shall determine the foreign market value of the 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, as required by subsection (e). 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 foreign market value of merchandise under paragraph (1), the administering authority shall determine the foreign market value on the basis of the price at which merchandise that is— “(A) comparable to the merchandise under investigation, 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.”. (b) Nonmarket Economy Country Defined.— Section 771 (19 U.S.C. 1677) is amended by adding at the end thereof the following new paragraph: “(18) Nonmarket economy country.— “(A) In general.— The term ‘nonmarket economy country’ means any foreign country that the administering authority determines does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of the merchandise. “(B) Factors to be considered.— In making determinations under subparagraph (A) the administering authority shall take into account— “(i) the extent to which the currency of the foreign country is convertible into the currency of other countries; “(ii) the extent to which wage rates in the foreign country are determined by free bargaining between labor and management, “(iii) the extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country, “(iv) the extent of government ownership or control of the means of production, “(v) the extent of government control over the allocation of resources and over the price and output decisions of enterprises, and “(vi) such other factors as the administering authority considers appropriate. “(C) Determination in effect.— “(i) Any determination that a foreign country is a nonmarket economy country shall remain in effect until revoked by the administering authority. “(ii) The administering authority may make a determination under subparagraph (A) with respect to any foreign country at any time. “(D) Determinations not in issue.— Notwithstanding any other provision of law, any determination made by the administering authority under subparagraph (A) shall not be subject to judicial review in any investigation conducted under subtitle B. “(E) Collection of information.— Upon request by the administering authority, the Commissioner of Customs shall provide the administering authority a copy of all public and proprietary information submitted to, or obtained by, the Commissioner of Customs that the administering authority considers relevant to proceedings involving merchandise from nonmarket economy countries. The administering authority shall protect proprietary Classified information. information obtained under this section from public disclosure in accordance with section 777.”. (c) Suspension of Nonmarket Economy Country Investigations.— Section 734 (19 U.S.C. 1673c) is amended by adding at the end thereof the following new subsection: “(l) Special Rule for Nonmarket Economy Countries.— “(1) In general.— The administering authority may suspend an investigation under this subtitle upon acceptance of an agreement with a nonmarket economy country to restrict the volume of imports into the United States of the merchandise under investigation only if the administering authority determines that— “(A) such agreement satisfies the requirements of subsection (d), and “(B) will prevent the suppression or undercutting of price levels of domestic products by imports of the merchandise under investigation. “(2) Failure of agreements.— If the administering authority determines that an agreement accepted under this subsection no longer prevents the suppression or undercutting of domestic prices of merchandise manufactured in the United States, the provisions of subsection (i) shall apply.”. SEC. 1317. THIRD-COUNTRY DUMPING. (a) Definitions.— For purposes of this section: (1) The term “Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (relating to antidumping measures). (2) The term “Agreement country” means a foreign country that has accepted the Agreement. (3) The term “Trade Representative” means the United States Trade Representative. (b) Petition by Domestic Industry.— (1) A domestic industry that produces a product that is like or directly competitive with merchandise produced by a foreign country (whether or not an Agreement country) may, if it has reason to believe that— (A) such merchandise is being dumped in an Agreement country; and (B) such domestic industry is being materially injured, or threatened with material injury, by reason of such dumping; submit a petition to the Trade Representative that alleges the elements referred to in subparagraphs (A) and (B) and requests the Trade Representative to take action under subsection (c) on behalf of the domestic industry. (2) A petition submitted under paragraph (1) shall contain such detailed information as the Trade Representative may require in support of the allegations in the petition. (c) Application for Antidumping Action on Behalf of the Domestic Industry.— (1) If the Trade Representative, on the basis of the information contained in a petition submitted under paragraph (1), determines that there is a reasonable basis for the allegations in the petition, the Trade Representative shall submit to the appropriate authority of the Agreement country where the alleged dumping is occurring an application pursuant to Article 12 of the Agreement which requests that appropriate antidumping action under the law of that country be taken, on behalf of the United States, with respect to imports into that country of the merchandise concerned. (2) At the request of the Trade Representative, the appropriate officers of the Department of Commerce and the United States International Trade Commission shall assist the Trade Representative in preparing the application under paragraph (1). (d) Consultation After Submission of Application.— After submitting an application under subsection (c)(1), the Trade Representative shall seek consultations with the appropriate authority of the Agreement country regarding the request for antidumping action. (e) Action Upon Refusal of Agreement Country to Act.— If the appropriate authority of an Agreement country refuses to under-take antidumping measures in response to a request made therefor by the Trade Representative under subsection (c), the Trade Representative shall promptly consult with the domestic industry on whether action under any other law of the United States is appropriate. SEC. 1318. INPUT DUMPING BY RELATED PARTIES. Subsection (e) of section 773 (19 U.S.C. 1677b(e)) is amended— (1) by striking out “(3)” each place it appears in paragraph (2) and inserting “(4)”, (2) by redesignating paragraph (3) as paragraph (4), (3) by inserting after paragraph (2) the following new paragraph: “(3) Special rule.— If, regarding any transaction between persons specified in any one of the subparagraphs of paragraph (4) involving the production by one of such persons of a major input to the merchandise under consideration, the administering authority has reasonable grounds to believe or suspect that an amount represented as the value of such input is less than the costs of production of such input, then the administering authority may determine the value of the major input on the best evidence available regarding such costs of production, if such costs are greater than the amount that would be determined for such input under paragraph (2).”, and (4) by striking out “paragraph (2).” in paragraph (4) (as redesignated by paragraph (2)) and inserting “paragraphs (2) and (3)”. SEC. 1319. FICTITIOUS MARKETS. Subsection (a) of section 773 of the Tariff Act of 1930 (19 U.S.C. 1677b(a)) is amended by adding at the end thereof the following new paragraph: “(5) Fictitious markets.— The occurrence of different movements in the prices at which different forms of any merchandise subject to an antidumping duty order issued under this title are sold (or, in the absence of sales, offered for sale) after the issuance of such order in the principal markets of the foreign country from which the merchandise is exported may be considered by the administering authority as evidence of the establishment of a fictitious market for the merchandise if the movement in such prices appears to reduce the amount by which the foreign market value of the merchandise exceeds the United States price of the merchandise.”. SEC. 1320. DOWNSTREAM PRODUCT MONITORING. (a) In General.— Subtitle D (19 U.S.C. 1677 et seq.) is amended by adding at the end thereof the following: “SEC. 780. DOWNSTREAM PRODUCT MONITORING. “(a) Petition Requesting Monitoring.— “(1) In general.— A domestic producer of an article that is like a component part or a downstream product may petition the administering authority to designate a downstream product for monitoring under subsection (b). The petition shall specify— “(A) the downstream product, “(B) the component product incorporated into such down-stream product, and “(C) the reasons for suspecting that the imposition of antidumping or countervailing duties has resulted in a diversion of exports of the component part into increased production and exportation to the United States of such downstream product. “(2) Determination regarding petition.— Within 14 days after receiving a petition submitted under paragraph (1), the administering authority shall determine— “(A) whether there is a reasonable likelihood that imports into the United States of the downstream product will increase as an indirect result of any diversion with respect to the component part, and “(B) whether— “(i) the component part is already subject to monitoring to aid in the enforcement of a bilateral arrangement (within the meaning of section 804 of the Trade and Tariff Act of 1984), “(ii) merchandise related to the component part and manufactured in the same foreign country in which the component part is manufactured has been the subject of a significant number of investigations suspended under section 704 or 734 or countervailing or antidumping duty orders issued under this title or section 303, or “(iii) merchandise manufactured or exported by the manufacturer or exporter of the component part that is similar in description and use to the component part has been the subject of at least 2 investigations suspended under section 704 or 734 or countervailing or antidumping duty orders issued under this title or section 303. “(3) Factors to take into account.— In making a determination under paragraph (2)(A), the administering authority may, if appropriate, take into account such factors as— “(A) the value of the component part in relation to the value of the downstream product, “(B) the extent to which the component part has been substantially transformed as a result of its incorporation into the downstream product, and “(C) the relationship between the producers of component parts and producers of downstream products. “(4) Publication of determination.— The administering authority shall publish in the Federal Register notice of each determination made under paragraph (2) and, if the determination made under paragraph (2)(A) and a determination made under any subparagraph of paragraph (2)(B) are affirmative, shall transmit a copy of such determinations and the petition to the Commission. “(5) Determinations not subject to judicial review.— Notwithstanding any other provision of law, any determination made by the administering authority under paragraph (2) shall not be subject to judicial review. “(b) Monitoring by the Commission.— “(1) In general.— If the determination made under subsection (a)(2)(A) and a determination made under any clause of subsection (a)(2)(B) with respect to a petition are affirmative, the Commission shall immediately commence monitoring of trade in the downstream product that is the subject of the determination made under subsection (a)(2)(A). If the Commission finds that imports of a downstream product being monitored in-creased during any calendar quarter by 5 percent or more over the preceding quarter, the Commission shall analyze that in-crease in the context of overall economic conditions in the product sector. “(2) Reports.— The Commission shall make quarterly reports Public information. to the administering authority regarding the monitoring and analyses conducted under paragraph (1). The Commission shall make the reports available to the public. “(c) Action on Basis of Monitoring Reports.— The administering authority shall review the information in the reports submitted by the Commission under subsection (b)(2) and shall— “(1) consider the information in determining whether to initiate an investigation under section 702(a), 732(a), or 303 regarding any downstream product, and “(2) request the Commission to cease monitoring any down-stream product if the information indicates that imports into the United States are not increasing and there is no reasonable likelihood of diversion with respect to component parts. “(d) Definitions.— For purposes of this section— “(1) The term ‘component part’ means any imported article that— “(A) during the 5-year period ending on the date on which the petition is filed under subsection (a), has been subject to— “(i) a countervailing or antidumping duty order issued under this title or section 303 that requires the deposit of estimated countervailing or antidumping duties imposed at a rate of at least 15 percent ad valorem, or “(ii) an agreement entered into under section 704, 734, or 303 after a preliminary affirmative determination under section 703(b), 733(b)(1), or 303 was made by the administering authority which included a determination that the estimated net subsidy was at least 15 percent ad valorem or that the estimated average amount by which the foreign market value exceeded the United States price was at least 15 percent ad valorem, and “(B) because of its inherent characteristics, is routinely used as a major part, component, assembly, subassembly, or material in a downstream product. “(2) The term ‘downstream product’ means any manufactured article— “(A) which is imported into the United States, and “(B) into which is incorporated any component part.”. (b) Conforming Amendment.— The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 779 the following: “Sec. 780. Downstream product monitoring.”. SEC. 1321. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS. (a) In General.— Subtitle D (19 U.S.C. 1677 et seq.) (as amended by section 1320) is further amended by adding at the end thereof the following: “SEC. 781. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS. “(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, and “(C) the difference between the value of such merchandise sold in the United States and the value of the imported parts and components referred to in subparagraph (B) is small, 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) 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, “(B) whether the manufacturer or exporter of the parts or components is related to 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 in-creased after 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 difference between the value of such imported merchandise and the value of the merchandise described in subparagraph (B) is small, and “(D) 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) Factors to consider.— In determining whether to include merchandise assembled or completed in a foreign country 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, “(B) whether the manufacturer or exporter of the merchandise described in paragraph (1)(B) is related to the person who uses the merchandise described in paragraph (1)(B) to assemble or complete in the foreign countiy the merchandise that is subsequently imported into the United States, and “(C) whether imports into the foreign countiy of the merchandise described in paragraph (1)(B) have increased after the issuance of such order or finding. “(c) Minor Alterations of Merchandise.— “(1) In general.— The class or kind of merchandise subject to— “(A) an investigation under this title, “(B) an antidumping duty order issued under section 736, “(C) a finding issued under the Antidumping Act, 1921, or “(D) a countervailing duty order issued under section 706 or section 303, shall include articles altered in form or appearance in minor respects (including raw agricultural products that have under-gone minor processing), whether or not included in the same tariff classification. “(2) Exception.— Paragraph (1) shall not apply with respect to altered merchandise if the administering authority determines that it would be unnecessary to consider the altered merchandise within the scope of the investigation, order, or finding. “(d) Later-Developed Merchandise.— “(1) In general.— For purposes of determining whether merchandise developed after an investigation is initiated under this title or section 303 (hereafter in this paragraph referred to as the ‘laterdeveloped merchandise’) is within the scope of an outstanding antidumping or countervailing duty order issued under this title or section 303 as a result of such investigation, the administering authority shall consider whether— “(A) the laterdeveloped merchandise has the same general physical characteristics as the merchandise with respect to which the order was originally issued (hereafter in this paragraph referred to as the ‘earlier product’), “(B) the expectations of the ultimate purchasers of the laterdeveloped merchandise are the same as for the earlier product, “(C) the ultimate use of the earlier product and the later-developed merchandise are the same, “(D) the laterdeveloped merchandise is sold through the same channels of trade as the earlier product, and “(E) the laterdeveloped merchandise is advertised and displayed in a manner similar to the earlier product. The administering authority shall take into account any advice provided by the Commission under subsection (e) before making a determination under this subparagraph. “(2) Exclusion from orders.— The administering authority may not exclude a laterdeveloped merchandise from a countervailing or antidumping duty order merely because the merchandise— “(A) is classified under a tariff classification other than that identified in the petition or the administering authority’s prior notices during the proceeding, or “(B) permits the purchaser to perform additional functions, unless such additional functions constitute the primary use of the merchandise and the cost of the additional functions constitute more than a significant proportion of the total cost of production of the merchandise. “(e) Commission Advice.— “(1) Notification to commission of proposed action.— Before making a determination— “(A) under subsection (a) with respect to merchandise completed or assembled in the United States (other than minor completion or assembly), “(B) under subsection (b) with respect to merchandise completed or assembled in other foreign countries, or “(C) under subsection (d) with respect to any laterdeveloped merchandise which incorporates a significant technological advance or significant alteration of an earlier product, with respect to an antidumping or countervailing duty order or finding as to which the Commission has made an affirmative injury determination, the administering authority shall notify the Commission of the proposed inclusion of such merchandise in such countervailing or antidumping order or finding. Not-withstanding any other provision of law, a decision by the administering authority regarding whether any merchandise is within a category for which notice is required under this paragraph is not subject to judicial review. “(2) Request for consultation.— After receiving notice under paragraph (1), the Commission may request consultations with the administering authority regarding the inclusion. Upon the request of the Commission, the administering authority shall consult with the Commission and any such consultation shall be completed within 15 days after the date of the request. “(3) Commission advice.— If the Commission believes, after consultation under paragraph (2), that a significant injury issue is presented by the proposed inclusion, the Commission may provide written advice to the administering authority as to whether the inclusion would be inconsistent with the affirmative determination of the Commission on which the order or finding is based. If the Commission decides to provide such written advice, it shall promptly notify the administering authority of its intention to do so, and must provide such advice within 60 days after the date of notification under paragraph (1). For purposes of formulating its advice with respect to merchandise completed or assembled in the United States from parts or components produced in a foreign country, the Commission shall consider whether the inclusion of such parts or components taken as a whole would be inconsistent with its prior affirmative determination.”. (b) Conforming Amendment.— The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 780 the following: “Sec. 781. Prevention of circumvention of antidumping and countervailing duty orders.”. SEC. 1322. STEEL IMPORTS. Section 805 of the Trade and Tariff Act of 1984 (19 U.S.C. 2253, note) is amended by adding at the end thereof the following new subsection: “(d) (1) Any steel product that is manufactured in a country that is not party to a bilateral arrangement from steel which was melted and poured in a country that is party to a bilateral arrangement (hereafter in this subsection referred to as an ‘arrangement country’) may be treated for purposes of the quantitative restrictions and related terms under that arrangement as if it were a product of the arrangement country. “(2) The President may implement such procedures as may be necessary or appropriate to carry out the purpose of paragraph (1). “(3) The United States Trade Representative may, in a manner consistent with the purpose of any so-called ‘third country equity provision’ of an arrangement entered into under the President’s Steel Policy, take such actions as he deems necessary with respect to steel imports of any other country or countries so as to ensure the effectiveness of any portion of such arrangement.”. SEC. 1323. SHORT LIFE CYCLE PRODUCTS. (a) Establishment of Product Categories for Short Life Cycle Merchandise.— Subtitle B is amended by adding at the end thereof the following new section: “SEC. 739. ESTABLISHMENT OF PRODUCT CATEGORIES FOR SHORT LIFE CYCLE MERCHANDISE. “(a) Establishment of Product Categories.— “(1) Petitions.— “(A) In general.— An eligible domestic entity may file a petition with the Commission requesting that a product category be established with respect to short life cycle merchandise at any time after the merchandise becomes the subject of 2 or more affirmative dumping determinations. “(B) Contents.— A petition filed under subparagraph (A) shall— “(i) identify the short life cycle merchandise that is the subject of the affirmative dumping determinations, “(ii) specify the short life cycle merchandise that the petitioner seeks to have included in the same product category as the merchandise that is subject to the affirmative dumping determinations, “(iii) specify any short life cycle merchandise the petitioner particularly seeks to have excluded from the product category, “(iv) provide reasons for the inclusions and exclusions specified under clauses (ii) and (iii), and “(v) identify such merchandise in terms of the designations used in the Tariff Schedules of the United States. “(2) Determinations on sufficiency of petition.— Upon receiving a petition under paragraph (1), the Commission shall— “(A) request the administering authority to confirm promptly the affirmative determinations on which the petition is based, and “(B) upon receipt of such confirmation, determine whether the merchandise covered by the confirmed affirmative determinations is short life cycle merchandise and whether the petitioner is an eligible domestic entity. “(3) Notice; hearings.— If the determinations under paragraph (2)(B) are affirmative, the Commission shall— “(A) publish notice in the Federal Register that the petition has been received, and “(B) provide opportunity for the presentation of views regarding the establishment of the requested product category, including a public hearing if requested by any interested person. “(4) Determinations.— “(A) In general.— By no later than the date that is 90 days after the date on which a petition is filed under paragraph (1), the Commission shall determine the scope of the product category into which the short life cycle merchandise that is the subject of the affirmative dumping determinations identified in such petition shall be classified for purposes of this section. “(B) Modifications not requested by petition.— “(i) In general.— The Commission may, on its own initiative, make a determination modifying the scope of any product category established under subparagraph (A) at any time. “(ii) Notice and hearing.— Determinations may be made under clause (i) only after the Commission has— “(I) published in the Federal Register notice of the proposed modification, and “(II) provided interested parties an opportunity for a hearing, and a period for the submission of written comments, on the classification of merchandise into the product categories to be affected by such determination. “(C) Basis of determinations.— In making determinations under subparagraph (A) or (B), the Commission shall ensure that each product category consists of similar short life cycle merchandise which is produced by similar processes under similar circumstances and has similar uses. “(b) Definitions.— For purposes of this section— “(1) Eligible domestic entity.— The term ‘eligible domestic entity’ means a manufacturer or producer in the United States, or a certified union or recognized union or group of workers which is representative of an industry in the United States, that manufactures or produces short life cycle merchandise that is— “(A) like or directly competitive with other merchandise that is the subject of 2 or more affirmative dumping determinations, or “(B) is similar enough to such other merchandise as to be considered for inclusion with such merchandise in a product monitoring category established under this section. “(2) Affirmative dumping determination.— The term ‘affirmative dumping determination’ means— “(A) any affirmative final determination made by the administering authority under section 735(a) during the 8-year period preceding the filing of the petition under this section that results in the issuance of an antidumping duty order under section 736 which requires the deposit of estimated antidumping duties at a rate of not less than 15 percent ad valorem, or “(B) any affirmative preliminary determination that— “(i) is made by the administering authority under section 733(b) during the 8-year period preceding the filing of the petition under this section in the course of an investigation for which no final determination is made under section 735 by reason of a suspension of the investigation under section 734, and “(ii) includes a determination that the estimated average amount by which the foreign market value of the merchandise exceeds the United States price of the merchandise is not less than 15 percent ad valorem. “(3) Subject of affirmative dumping determination.— “(A) In general.— Short life cycle merchandise of a manufacturer shall be treated as being the subject of an affirmative dumping determination only if the administering authority— “(i) makes a separate determination of the amount by which the foreign market value of such merchandise of the manufacturer exceeds the United States price of such merchandise of the manufacturer, and “(ii) specifically identifies the manufacturer by name with such amount in the affirmative dumping determination or in an antidumping duty order issued as a result of the affirmative dumping determination. “(B) Exclusion.— Short life cycle merchandise of a manufacturer shall not be treated as being the subject of an affirmative dumping determination if— “(i) such merchandise of the manufacturer is part of a group of merchandise to which the administering authority assigns (in lieu of making separate determinations described in subparagraph (A)(i)(I) an amount determined to be the amount by which the foreign market value of the merchandise in such group exceeds the United States price of the merchandise in such group, and “(ii) the merchandise and the manufacturer are not specified by name in the affirmative dumping determination or in any antidumping duty order issued as a result of such affirmative dumping determination. “(4) Short life cycle merchandise.— The term ‘short life cycle merchandise’ means any product that the Commission determines is likely to become outmoded within 4 years, by reason of technological advances, after the product is commercially available. For purposes of this paragraph, the term ‘outmoded’ refers to a kind of style that is no longer state-of-the-art. “(c) Transitional Rules.— “(1) For purposes of this section and section 733(b)(1) (B) and (C), all affirmative dumping determinations described in subsection (b)(2)(A) that were made after December 31, 1980, and before the date of enactment of the Omnibus Trade and Competitiveness Act of 1988, and all affirmative dumping determinations described in subsection (b)(2)(B) that were made after December 31, 1984, and before the date of enactment of such Act, with respect to each category of short life cycle merchandise of the same manufacturer shall be treated as one affirmative dumping determination with respect to that category for that manufacturer which was made on the date on which the latest of such determinations was made. “(2) No affirmative dumping determination that— “(A) is described in subsection (b)(2)(A) and was made before January 1, 1981, or “(B) is described in subsection (b)(2)(B) and was made before January 1, 1985, may be taken into account under this section or section 733(b)(1) (B) and (C)”. (b) Expedited Dumping Investigations.— Section 733 (19 U.S.C. 1673) is amended as follows: (1) Paragraph (1) of subsection (b)(1) is amended to read as follows: “(1) Period of antidumping duty investigation.— “(A) In general.— Except as provided in subparagraph (B), within 160 days after the date on which a petition is filed under section 732(b), or an investigation is commenced under section 732(a), but not before an affirmative determination by the Commission under subsection (a) of this section, the administering authority shall make a determination, based upon the best information available to it at the time of the determination, of whether there is a reason-able basis to believe or suspect that the merchandise is being sold, or is likely to be sold, at less than fair value. If the determination of the administering authority under this subsection is affirmative, the determination shall include the estimated average amount by which the foreign market value exceeds the United States price. “(B) If certain short life cycle merchandise involved.— If a petition filed under section 732(b), or an investigation commenced under section 732(a), concerns short life cycle merchandise that is included in a product category established under section 739(a), subparagraph (A) shall be applied— “(i) by substituting ‘120 days’ for ‘160 days’ if manufacturers that are second offenders account for a significant proportion of the merchandise under investigation, and “(ii) by substituting ‘100 days’ for ‘160 days’ if manufacturers that are multiple offenders account for a significant proportion of the merchandise under investigation. “(C) Definitions of offenders.— For purposes of subparagraph (B)— “(i) The term ‘second offender’ means a manufacturer that is specified in 2 affirmative dumping determinations (within the meaning of section 739) as the manufacturer of short life cycle merchandise that is— “(I) specified in both such determinations, and “(II) within the scope of the product category referred to in subparagraph (B). “(ii) The term ‘multiple offender’ means a manufacturer that is specified in 3 or more affirmative dumping determinations (within the meaning of section 739) as the manufacturer of short life cycle merchandise that is— “(I) specified in each of such determinations, and “(II) within the scope of the product category referred to in subparagraph (B).”. (2) Paragraph (1) of subsection (c) is amended by inserting at the end thereof the following sentence: “No extension of a determination date may be made under this paragraph for any investigation in which a determination date provided for in subsection (b)(1)(B) applies unless the petitioner submits written notice to the administering authority of its consent to the extension.”. (3) Subsection (e)(1) is amended by adding at the end thereof the following flush sentence: “The administering authority shall be treated as having made an affirmative determination under subparagraph (A) in any investigation to which subsection (b)(1)(B) is applied.”. (c) Conforming Amendment.— The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 739 the following: “Sec. 739. Establishment of product categories for short life cycle merchandise.”. SEC. 1324. CRITICAL CIRCUMSTANCES. (a) Countervailing Duty Investigations.— (1) Section 702 (19 U.S.C. 1671a) is amended by adding at the end thereof the following new subsection: “(e) Information Regarding Critical Circumstances.— If, at any time after the initiation of an investigation under this subtitle, the administering authority finds a reasonable basis to suspect that the alleged subsidy is inconsistent with the Agreement, the administering authority may request the Commissioner of Customs to compile information on an expedited basis regarding entries of the class or kind of merchandise that is the subject of the investigation. Records. Upon receiving such request, the Commissioner of Customs shall collect information regarding the volume and value of entries of the class or kind of merchandise that is the subject of the investigation and shall transmit such information to the administering authority at such times as the administering authority shall direct (at least once every 30 days), until a final determination is made under section 705(a), the investigation is terminated, or the administering authority withdraws the request.”. (2) Paragraph (1) of section 703(e) (19 U.S.C. 1671b(e)(1)) is amended by inserting “(at any time after the initiation of the investigation under this subtitle)” after “promptly”. (3) Subparagraph (A) of section 705(b)(4) (19 U.S.C. 1671d(b)(4)(A)) is amended to read as follows: “(A) 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 retroactive imposition of a countervailing duty on the merchandise appears necessary to prevent recurrence of material injury that was caused by massive imports of the merchandise over a relatively short period of time and will be difficult to repair. “(ii) Prevention of recurrence.— For purposes of making its finding under clause (i), the Commission shall make an evaluation as to whether the effectiveness of the countervailing duty order would be materially impaired if such imposition did not occur. “(iii) Evaluation of effectiveness.— In making the evaluation under clause (ii), the Commission shall consider, among other factors it considers relevant— “(I) the condition of the domestic industry, “(II) whether massive imports of the merchandise over a relatively short period of time can be accounted for by efforts to avoid the potential imposition of countervailing duties, “(III) whether foreign economic conditions led to the massive imports of the merchandise, and “(IV) whether the impact of the massive imports of the merchandise is likely to continue for some period after issuance of the countervailing duty order under this subtitle.”. (b) Antidumping Duty Investigations.— (1) Section 732 (19 U.S.C. 1673a) is amended by adding at the end thereof the following new subsection: “(e) Information Regarding Critical Circumstances.— If, at any time after the initiation of an investigation under this subtitle, the administering authority finds a reasonable basis to suspect that— “(1) there is a history of dumping in the United States or elsewhere of the class or kind of the merchandise which is the subject of the investigation, or “(2) the person by whom, or for whose account, the merchandise was imported knew, or should have known, that the exporter was selling the merchandise which is the subject of the investigation at less than its fair value, the administering authority may request the Commissioner of Customs to compile information on an expedited basis regarding entries of the class or kind of merchandise that is the subject of the investigation. Upon receiving such request, the Commissioner of Customs shall collect information regarding the volume and value of entries of the class or kind of merchandise that is the subject of the investigation and shall transmit such information to the administering authority at such times as the administering authority shall direct (at least once every 30 days), until a final determination is made under section 735(a), the investigation is terminated, or the administering authority withdraws the request.”. (2) Paragraph (1) of section 733(e) (19 U.S.C. 1673b(e)(1)) is amended by inserting “(at any time after the initiation of the investigation under this subtitle)” after “promptly”. (3) Subparagraph (A) of section 735(b)(4) (19 U.S.C. 1673d(b)(4)(A)) is amended to read as follows: “(A) 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 retroactive imposition of antidumping duties on the merchandise appears necessary to prevent recurrence of material injury that was caused by massive imports of the merchandise over a relatively short period of time. “(ii) Prevention of recurrence.— For purposes of making its finding under clause (i), the Commission shall make an evaluation as to whether the effectiveness of the antidumping duty order would be materially impaired if such imposition did not occur. “(iii) Evaluation of effectiveness.— In making the evaluation under clause (ii), the Commission shall consider, among other factors it considers relevant— “(I) the condition of the domestic industry, “(II) whether massive imports of the merchandise in a relatively short period of time can be accounted for by efforts to avoid the potential imposition of antidumping duties, “(III) whether foreign economic conditions led to the massive imports of the merchandise, and “(IV) whether the impact of the massive imports of the merchandise is likely to continue for some period after issuance of the antidumping duty order under this subtitle.”. SEC. 1325. EXPEDITED REVIEW AUTHORITY. (a) In General.— Paragraph (1) of section 736(c) (19 U.S.C. 1673e(c)(1)) is amended to read as follows: “(1) Conditions for waiver of deposit of estimated duties.— The administering authority may permit, for not more than 90 days after the date of publication of an order under subsection (a), the posting of a bond or other security in lieu of the deposit of estimated antidumping duties required under subsection (a)(3) if— “(A) the investigation has not been designated as extraordinarily complicated by reason of— “(i) the number and complexity of the transactions to be investigated or adjustments to be considered, “(ii) the novelty of the issues presented, or “(iii) the number of firms whose activities must be investigated, “(B) the final determination in the investigation has not been postponed under section 735(a)(2)(A); “(C) on the basis of information presented to the administering authority by any manufacturer, producer, or ex-porter in such form and within such time as the administering authority may require, the administering authority is satisfied that a determination will be made, within 90 days after the date of publication of an order under subsection (a), of the foreign market value and the United States price for all merchandise of such manufacturer, producer, or exporter described in that order which was entered, or withdrawn from warehouse, for consumption on or after the date of publication of— “(i) an affirmative preliminary determination by the administering authority under section 733(b), or “(ii) if its determination under section 733(b) was negative, an affirmative final determination by the administering authority under section 735(a), and before the date of publication of the affirmative final determination by the Commission under section 735(b); “(D) the party described in subparagraph (C) provides credible evidence that the amount by which the foreign market value of the merchandise exceeds the United States price of the merchandise is significantly less than the amount of such excess specified in the antidumping duty order published under subsection (a); and “(E) the data concerning the foreign market value and the United States price apply to sales in the usual commercial quantities and in the ordinary course of trade and the number of such sales are sufficient to form an adequate basis for comparison.”. (b) Business Proprietary Information.— Subsection (c) of section 736 (19 U.S.C. 1673e(c)) is amended by adding at the end thereof the following new paragraph: “(4) Provision of business proprietary information; written comments.— Before determining whether to permit the posting of bond or other security under paragraph (1) in lieu of the deposit of estimated antidumping duties, the administering authority shall— “(A) make all business proprietary information supplied to the administering authority under paragraph (1) available under a protective order in accordance with section 777(c) to all interested parties described in subparagraph (C), (D), (E), (F), or (G) of section 771(9), and “(B) afford all interested parties an opportunity to file written comments on whether the posting of bond or other security under paragraph (1) in lieu of the deposit of estimated antidumping duties should be permitted. ’. SEC. 1326. PROCESSED AGRICULTURAL PRODUCTS. (a) Definition of Industry Producing Processed Agricultural Products.— Paragraph (4) of section 771 (19 U.S.C. 1677(4)) is amended by adding at the end thereof the following new subparagraph: “(E) Industry producing processed agricultural products.— “(i) In general.— Subject to clause (v), in an investigation involving a processed agricultural product produced from any raw agricultural product, the producers or growers of the raw agricultural product may be considered part of the industry producing the processed product if— “(I) the processed agricultural product is produced from the raw agricultural product through a single continuous line of production; and “(II) there is a substantial coincidence of economic interest between the producers or growers of the raw agricultural product and the processors of the processed agricultural product based upon relevant economic factors, which may, in the discretion of the Commission, include price, added market value, or other economic interrelationships (regardless of whether such coincidence of economic interest is based upon any legal relationship). “(ii) Processing.— For purposes of this subparagraph, the processed agricultural product shall be considered to be processed from a raw agricultural product through a single continuous line of production if— “(I) the raw agricultural product is substantially or completely devoted to the production of the processed agricultural product; and “(II) the processed agricultural product is produced substantially or completely from the raw product. “(iii) Relevant economic factors.— For purposes of clause (i)(II), in addition to such other factors it considers relevant to the question of coincidence of economic interest, the Commission shall— “(I) if price is taken into account, consider the degree of correlation between the price of the raw agricultural product and the price of the processed agricultural product; and “(II) if added market value is taken into account, consider whether the value of the raw agricultural product constitutes a significant percentage of the value of the processed agricultural product. “(iv) Raw agricultural product.— For purposes of this subparagraph, the term ‘raw agricultural product’ means any farm or fishery product. “(v) Termination of this subparagraph.— This subparagraph shall cease to have effect if the United States Trade Representative notifies the administering authority and the Commission that the application of this subparagraph is inconsistent with the international obligations of the United States.”. (b) Threat of Material Injury.— Section 771(7)(F) (19 U.S.C. 1677(7)(F)) is amended— (1) by striking out “and” at the end of subclause (VII); (2) by striking out the period at the end of subclause (VIII) and inserting “, and”; and (3) by adding at the end thereof the following: “(IX) 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).”. (c) Interested Parties.— Section 771(9) (19 U.S.C. 1677(9)) is amended— (1) by striking out “and” at the end of subparagraph (E); (2) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof “, and”; and (3) by adding at the end thereof the following new subparagraph: “(G) in any investigation under this title involving an industry engaged in producing a processed agricultural product, as defined in paragraph (4)(E), a coalition or trade association which is representative of either— “(i) processors, “(ii) processors and producers, or “(iii) processors and growers, but this subparagraph shall cease to have effect if the United States Trade Representative notifies the administering authority and the Commission that the application of this subparagraph is inconsistent with the international obligations of the United States.”. (d) Conforming Amendments.— (1) Title VII of the Tariff Act of 1930 is amended by striking out “subparagraph (C), (D), (E), or (F) of section 771(9)” each place it appears and inserting in lieu thereof “subparagraph (C), (D), (E), (F), or (G) of section 771(9)”. (2) Title VII of the Tariff Act of 1930 is amended by striking out “subparagraph (C), (D), (E), and (F) of section 771(9)” each place it appears and inserting in lieu thereof “subparagraph (C), (D), (E), (F), or (G) of section 771(9)”. (3) Subsection (a) of section 516 of the Tariff Act of 1930 (19 U.S.C. 1516(a)) is amended by adding at the end thereof the following new paragraph: “(3) Any producer of a raw agricultural product who is considered under section 771(4)(E) to be part of the industry producing a processed agricultural product of the same class or kind as the designated imported merchandise shall, for purposes of this section, be treated as an interested party producing such processed agricultural product.”. SEC. 1327. LEASES EQUIVALENT TO SALES. Section 771 (19 U.S.C. 1677) is amended by adding at the end thereof the following new paragraph: (19) Equivalency of leases to sales.— In determining whether a lease is equivalent to a sale for purposes of this title, the administering authority shall consider— “(A) the terms of the lease, “(B) commercial practice within the industry, “(C) the circumstances of the transaction, “(D) whether the product subject to the lease is integrated into the operations of the lessee or importer, “(E) whether in practice there is a likelihood that the lease will be continued or renewed for a significant period of time, and “(F) other relevant factors, including whether the lease transaction would permit avoidance of antidumping or countervailing duties.”. SEC. 1328. MATERIAL INJURY. Section 771(7) (19 U.S.C. 1677(7)) is amended— (1) by amending subparagraph (B) to read as follows: “(B) Volume and consequent impact.— In making determinations under sections 703(a), 705(b), 733(a), and 735(b), the Commission, in each case— “(i) shall consider— “(I) the volume of imports of the merchandise which is the subject of the investigation, “(II) the effect of imports of that merchandise on prices in the United States for like products, and “(III) the impact of imports of such merchandise on domestic producers of like products, but only in the context of production operations within the United States; and “(ii) may consider such other economic factors as are relevant to the determination regarding whether there is material injury by reason of imports. In the notification required under section 705(d) or 735(d), as the case may be, the Commission shall explain its analysis of each factor considered under clause (i), and identify each factor considered under clause (ii) and explain in full its relevance to the determination.”; and (2) by amending subparagraph (C)— (A) by amending the heading to read as follows: “(C) Evaluation of relevant factors.—”, (B) by striking out “price undercutting” in clause (ii) and inserting “price underselling”, and (C) by amending clause (iii) to read as follows: “(iii) Impact on affected domestic industry.— In examining the impact required to be considered under subparagraph (B)(iii), the Commission shall evaluate all relevant economic factors which have a bearing on the state of the industry in the United States, including, but not limited to— “(I) actual and potential decline in output, sales, market share, profits, productivity, return on investments, and utilization of capacity, “(II) factors affecting domestic prices, “(III) actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital, and investment, and “(IV) 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 like product. The Commission shall evaluate all relevant economic factors described in this clause within the context of the business cycle and conditions of competition that are distinctive to the affected industry.”. SEC. 1329. THREAT OF MATERIAL INJURY. Subparagraph (F) of section 771(7) (19 U.S.C. 1677(7)(F)) (as amended by section 1326) is further amended— (1) by striking out “and” at the end of clause (i)(VIII), (2) by striking out the period at the end of clause (i)(IX), (3) by adding at the end of clause (i) the following new subclause: “(X) 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 like product.”, and (4) by adding at the end thereof the following: “(iii) Effect of dumping in third-country markets.— “(I) In general.— In investigations under subtitle B, the Commission shall consider whether dumping in the markets of foreign countries (as evidenced by dumping findings or antidumping remedies in other GATT member markets against the same class or kind of merchandise manufactured or exported by the same party as under investigation) suggests a threat of material injury to the domestic industry. In the course of its investigation, the Commission shall request information from the foreign manufacturer, exporter, or United States importer concerning this issue. “(II) GATT member market.— For purposes of this clause, the term ‘GATT member market’ means the market of any country which is a signatory to The Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (relating to antidumping measures). “(III) European communities.— For purposes of this clause, the European Communities shall be treated as a foreign country.”. SEC. 1330. CUMULATION. (a) Threat of Injury.— Subparagraph (F) of section 771(7) (19 U.S.C. 1677(7)(F)) (as amended by section 1329) is further amended by adding at the end thereof the following new clause: “(iv) Cumulation.— To the extent practicable and subject to subparagraph (C)(v), for purposes of clause (i) (III) and (IV) the Commission may cumulatively assess the volume and price effects of imports from two or more countries if such imports— “(I) compete with each other, and with like products of the domestic industry, in the United States market, and “(II) are subject to any investigation under section 303,701, or 731.”. (b) Treatment of Negligible Imports.— Subparagraph (C) of section 771(7) (19 U.S.C. 1677(7)(0) is amended by adding at the end thereof the following new clause: “(v) Treatment of negligible imports.— The Commission is not required to apply clause (iv) or subparagraph (F)(iv) in any case in which the Commission determines that imports of the merchandise subject to investigation are negligible and have no discernable adverse impact on the domestic industry. For purposes of making such determination, the Commission shall evaluate all relevant economic factors regarding the imports, including, but not limited to, whether— “(I) the volume and market share of the imports are negligible, “(II) sales transactions involving the imports are isolated and sporadic, and “(III) the domestic market for the like product is price sensitive by reason of the nature of the product, so that a small quantity of imports can result in price suppression or depression. For purposes of this clause, the Commission may treat as negligible and having no discernable adverse impact on the domestic industry imports that are the product of any country that is a party to a free trade area agreement with the United States which entered into force and effect before January 1, 1987, if the Commission determines that the domestic industry is not being materially injured by reason of such imports.”. SEC. 1331. CERTIFICATION OF SUBMISSIONS. Section 776 (19 U.S.C. 1677e) is amended— (1) by redesignating subsections (a) and (b) as subsections (b) and (c), respectively, (2) by amending the heading to subsection (b) (as so redesignated) to read as follows: “(b) Verification.—”, and (3) by inserting before such subsection (b) the following: “(a) 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.”. SEC. 1332. ACCESS TO INFORMATION. Section 777 (19 U.S.C. 16770 is amended— (1) by amending subsection (b)(1)(B)(ii) to read as follows: “(ii) a statement to the administering authority or the Commission that the business proprietary informa-tion is of a type that should not be released under administrative protective order.”; (2) by amending subsection (c)(1)— (A) by amending subparagraph (A) to read as follows: “(A) In general.— Upon receipt of an application (before or after receipt of the information requested) which describes in general terms the information requested and sets forth the reasons for the request, the administering authority or the Commission shall make all business proprietary information presented to, or obtained by it, during a proceeding (except privileged information, classified information, and specific information of a type for which there is a clear and compelling need to withhold from disclosure) available to interested parties who are parties to the proceeding under a protective order described in subparagraph (B), regardless of when the information is submitted during a proceeding.”; and (B) by adding at the end thereof the following new subparagraphs: “(C) Time limitation on determinations.— The administering authority or the Commission, as the case may be, shall determine whether to make information available under this paragraph— “(i) not later than 14 days (7 days if the submission pertains to a proceeding under section 703(a) or 733(a)) after the date on which the information is submitted, or “(ii) if— “(I) the person that submitted the information raises objection to its release, or “(II) the information is unusually voluminous or complex, not later than 30 days (10 days if the submission pertains to a proceeding under section 703(a) or 733(a)) after the date on which the information is submitted. “(D) Availability after determination.— If the determination under subparagraph (C) is affirmative, then— “(i) the business proprietary information submitted to the administering authority or the Commission on or before the date of the determination shall be made available, subject to the terms and conditions of the protective order, on such date; and “(ii) the business proprietary information submitted to the administering authority or the Commission after the date of the determination shall be served as required by subsection (d). “(E) Failure to disclose.— If a person submitting information to the administering authority refuses to dis-close business proprietary information which the administering authority determines should be released under a protective order described in subparagraph (B), the administering authority shall return the information, and any nonconfidential summary thereof, to the person submitting the information and summary and shall not consider either.”; (3) by striking out “or the Commission denies a request for proprietary information submitted by the petitioner or an in-terested party in support of the petitioner concerning the domestic price or cost of production of the like product,” in subsection (c)(2); and (4) by adding at the end thereof the following new subsections: “(d) Service.— Any party submitting written information, including business proprietary information, to the administering authority or the Commission during a proceeding shall, at the same time, serve the information upon all interested parties who are parties to the proceeding, if the information is covered by a protective order. The administering authority or the Commission shall not accept any such information that is not accompanied by a certificate of service and a copy of the protective order version of the document containing the information. Business proprietary information shall only be served upon interested parties who are parties to the proceeding that are subject to protective order; however, a nonconfidential summary thereof shall be served upon all other interested parties who are parties to the proceeding. “(e) Timely Submissions.— Information shall be submitted to the administering authority or the Commission during the course of a proceeding on a timely basis and shall be subject to comment by other parties within such reasonable time as the administering authority or the Commission shall provide. If information is submitted without an adequate opportunity for other parties to comment thereon, the administering authority or the Commission may return the information to the party submitting it and not consider it.”. SEC. 1333. CORRECTION OF MINISTERIAL ERRORS. (a) Final Determinations.— Sections 705 and 735 (19 U.S.C. 167Id and 1673d) are each amended by adding at the end thereof the following new subsection: “(e) 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) Administrative Review.— Section 751 (19 U.S.C. 1675) is amended by adding at the end thereof the following new subsection: “(f) 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.”. SEC. 1334. DRAWBACK TREATMENT. (a) In General.— Section 779 (19 U.S.C. 1677h) is amended by striking out “shall be treated as any other customs duties.” and inserting “shall not be treated as being regular customs duties.”. (b) Conforming Amendments.— (1) The section heading for such section 779 is amended by striking out “DRAWBACKS” and inserting “DRAWBACK TREATMENT”. (2) The table of contents for title VII of the Tariff Act of 1930 is amended by striking out “Drawbacks.” in the entry for section 779 and inserting “Drawback treatment.”. SEC 1335. GOVERNMENTAL IMPORTATIONS. Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) (as amended by section 1316(b)) is amended by adding at the end thereof the following new paragraph: “(19) Application to governmental importations.— “(A) In general.— Except as otherwise provided by this paragraph, merchandise imported by, or for the use of, a department or agency of the United States Government (including merchandise provided for under schedule 8 of the Tariff Schedules of the United States) is subject to the imposition of countervailing duties or antidumping duties under this title or section 303. “(B) Exceptions.— Merchandise imported by, or for the use of, the Department of Defense shall not be subject to the imposition of countervailing or antidumping duties under this title if— “(i) the merchandise is acquired by, or for use of, such Department— “(I) from a country with which such Department had a Memorandum of Understanding which was in effect on January 1, 1988, and has continued to have a comparable agreement (including renewals) or superceding agreements, and “(II) in accordance with terms of the Memorandum of Understanding in effect at the time of importation, or “(ii) the merchandise has no substantial nonmilitary use.” SEC. 1336. STUDIES. (a) Study of Market Orientation of China.— The Secretary of Commerce, in consultation with the heads of other appropriate Federal agencies, shall undertake a study regarding the new market orientation of the People’s Republic of China. The study shall address, but not be limited to— (1) the effect of the new orientation on Chinese market policies and price structure, and the relationship between domestic Chinese prices and world prices; (2) the extent to which United States trade law practices can accommodate the increased market orientation of the Chinese economy; and (3) the possible need for changes in United States antidumping laws as they apply to foreign countries, such as China, which are in transition to a more market-oriented economy. Reports. The Secretary of Commerce shall submit to the Congress within 1 year after the date of the enactment of this Act a report on the study required under this subsection. (b) Subsidies Code Commitments.— Within 90 days after the date of the enactment of this Act, the United States Trade Representa-tive shall initiate a review of all bilateral subsidy commitments that have been entered into by foreign governments with the United States. The review shall include— (1) an evaluation of the extent to which the commitments have been complied with; (2) with respect to those commitments found under paragraph (1) not to have been complied with, an estimate regarding when compliance is likely; and (3) recommendations regarding how compliance can be improved. The United States Trade Representative shall complete the review Reports. required under this subsection and submit a report thereon to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate within 180 days after the date of the enactment of this Act. SEC. 1337. EFFECTIVE DATES. (a) In General.— Except as otherwise provided in this section, the amendments made by this part shall take effect on the date of enactment of this Act. (b) Investigations and Reviews After Enactment.— The amendments made by sections 1312, 1315, 1316, 1318, 1325, 1326, 1327, 1328, 1329, 1331, and 1332 shall only apply with respect to— (1) investigations initiated after the date of enactment of this Act, and (2) reviews initiated under section 736(c) or 751 of the Tariff Act of 1930 after the date of enactment of this Act. (c) Investigations After Enactment.— The amendments made by sections 1324 and 1330 shall only apply with respect to investigations initiated after the date of enactment of this Act. (d) Prevention of Circumvention of Duties; Drawback.— The provisions of section 781 of the Tariff Act of 1930, as added by section 1321(a), and the amendments made by section 1334 shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of enactment of this Act. (e) Governmental Importations; Steel.— The amendments made by sections 1321(b) and 1335 shall apply with respect to entries, and withdrawals from warehouse for consumption, that are liquidated on or after the date of enactment of this Act. (f) Fictitious Markets.— The amendment made by section 1319 shall only apply with respect to— (1) reviews initiated under section 736(c) or 751 of the Tariff Act of 1930 after the date of enactment of this Act, and (2) reviews initiated under such sections— (A) which are pending on the date of enactment of this Act, and (B) in which a request for revocation is pending on the date of enactment of this Act. PART 3— PROTECTION OF INTELLECTUAL PROPERTY RIGHTS SEC. 1341. CONGRESSIONAL FINDINGS AND PURPOSES. (a) Findings.— The Congress finds that— (1) United States persons that rely on protection of intellectual property rights are among the most advanced and competitive in the world; and (2) the existing protection under section 337 of the Tariff Act of 1930 against unfair trade practices is cumbersome and costly and has not provided United States owners of intellectual property rights with adequate protection against foreign companies violating such rights. (b) Purpose.— The purpose of this part is to amend section 337 of the Tariff Act of 1930 to make it a more effective remedy for the protection of United States intellectual property rights. SEC. 1342. PROTECTION UNDER THE TARIFF ACT OF 1930. (a) In General.— Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended as follows: (1) Subsection (a) is amended to read as follows: “(a) (1) Subject to paragraph (2), the following are unlawful, and when found by the Commission to exist shall be dealt with, in addition to any other provision of law, as provided in this section: “(A) Unfair methods of competition and unfair acts in the importation of articles (other than articles provided for in subparagraphs (B), (C), and (D)) into the United States, or in the sale of such articles by the owner, importer, or consignee, the threat or effect of which is— “(i) to destroy or substantially injure an industry in the United States; “(ii) to prevent the establishment of such an industry; or “(iii) to restrain or monopolize trade and commerce in the United States. “(B) The importation into the United States, the sale for importation, or the sale within the United States after importation by the owner, importer, or consignee, of articles that— “(i) infringe a valid and enforceable United States patent or a valid and enforceable United States copyright registered under title 17, United States Code; or “(ii) are made, produced, processed, or mined under, or by means of, a process covered by the claims of a valid and enforceable United States patent. “(C) The importation into the United States, the sale for importation, or the sale within the United States after importation by the owner, importer, or consignee, of articles that infringe a valid and enforceable United States trademark registered under the Trademark Act of 1946. “(D) The importation into the United States, the sale for importation, or the sale within the United States after importation by the owner, importer, or consignee, of a semiconductor chip product in a manner that constitutes infringement of a mask work registered under chapter 9 of title 17, United States Code. “(2) Subparagraphs (B), (C), and (D) of paragraph (1) apply only if an industry in the United States, relating to the articles protected by the patent, copyright, trademark, or mask work concerned, exists or is in the process of being established. “(3) For purposes of paragraph (2), an industry in the United States shall be considered to exist if there is in the United States, with respect to the articles protected by the patent, copyright, trademark, or mask work concerned— “(A) significant investment in plant and equipment; “(B) significant employment of labor or capital; or “(C) substantial investment in its exploitation, including engineering, research and development, or licensing. “(4) For the purposes of this section, the phrase ‘owner, importer, or consignee’ includes any agent of the owner, importer, or consignee.”. (2) Subsection (c) is amended by inserting before the period in the first sentence the following: “, except that the Commission may, by issuing a consent order or on the basis of a settlement agreement, terminate any such investigation, in whole or in part, without making such a determination”. (3) Subsection (e) is amended— (A) by striking out “If” in the first sentence and inserting “(1) If”; and (B) by adding at the end thereof the following new paragraphs: “(2) A complainant may petition the Commission for the issuance of an order under this subsection. The Commission shall make a determination with regard to such petition by no later than the 90th day after the date on which the Commission’s notice of investigation is published in the Federal Register. The Commission may extend the 90-day period for an additional 60 days in a case it designates as a more complicated case. The Commission shall publish in the Federal Register, publication. Federal Register its reasons why it designated the case as being more complicated. The Commission may require the complainant to post a bond as a prerequisite to the issuance of an order under this subsection. “(3) The Commission may grant preliminary relief under this subsection or subsection (f) to the same extent as preliminary injunctions and temporary restraining orders may be granted under the Federal Rules of Civil Procedure.”. (4) Subsection (f) is amended— (A) by striking out “In lieu of” in paragraph (1) and inserting “In addition to, or in lieu of,”; and (B) by striking out “$10,000 or” in paragraph (2) and inserting “$100,000 or twice”. (5) Such section is further amended— (A) by redesignating subsections (g), (h), (i), and (j) as subsections (j), (k), (1), and (m), respectively; and (B) by inserting after subsection (f) the following new subsections: “(g) (1) If— “(A) a complaint is filed against a person under this section; “(B) the complaint and a notice of investigation are served on the person; “(C) the person fails to respond to the complaint and notice or otherwise fails to appear to answer the complaint and notice; “(D) the person fails to show good cause why the person should not be found in default; and “(E) the complainant seeks relief limited solely to that person; the Commission shall presume the facts alleged in the complaint to be true and shall, upon request, issue an exclusion from entry or a cease and desist order, or both, limited to that person unless, after considering the effect of such exclusion or order upon the public health and welfare, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, and United States consumers, the Commission finds that such exclusion or order should not be issued. “(2) In addition to the authority of the Commission to issue a general exclusion from entry of articles when a respondent appears to contest an investigation concerning a violation of the provisions of this section, a general exclusion from entry of articles, regardless of the source or importer of the articles, may be issued if— “(A) no person appears to contest an investigation concerning a violation of the provisions of this section, and “(B) such a violation is established by substantial, reliable, and probative evidence. “(h) The Commission may by rule prescribe sanctions for abuse of discovery and abuse of process to the extent authorized by Rule 11 and Rule 37 of the Federal Rules of Civil Procedure. “(i) Forfeiture.— “(1) In addition to taking action under subsection (d), the Commission may issue an order providing that any article imported in violation of the provisions of this section be seized and forfeited to the United States if— “(A) the owner, importer, or consignee of the article previously attempted to import the article into the United States; “(B) the article was previously denied entry into the United States by reason of an order issued under subsection (d); and “(C) upon such previous denial of entry, the Secretary of the Treasury provided the owner, importer, or consignee of the article written notice of— “(i) such order, and “(ii) the seizure and forfeiture that would result from any further attempt to import the article into the United States. “(2) The Commission shall notify the Secretary of the Treasury of any order issued under this subsection and, upon receipt of such notice, the Secretary of the Treasury shall enforce such order in accordance with the provisions of this section. “(3) Upon the attempted entry of articles subject to an order issued under this subsection, the Secretary of the Treasury shall immediately notify all ports of entry of the attempted importation and shall identify the persons notified under paragraph (1)(C). “(4) The Secretary of the Treasury shall provide— “(A) the written notice described in paragraph (1)(C) to the owner, importer, or consignee of any article that is denied entry into the United States by reason of an order issued under subsection (d); and “(B) a copy of such written notice to the Commission.”. (6) Subsection (k) (as redesignated by paragraph (5)(B) of this section) is amended— (A) by inserting “(1)” before the first sentence; and (B) by adding at the end the following: “(2) If any person who has previously been found by the Commission to be in violation of this section petitions the Commission for a determination that the petitioner is no longer in violation of this section or for a modification or rescission of an exclusion from entry or order under subsection (d), (e), (f), (g), or (i)— “(A) the burden of proof in any proceeding before the Commission regarding such petition shall be on the petitioner; and “(B) relief may be granted by the Commission with respect to such petition— “(i) on the basis of new evidence or evidence that could not have been presented at the prior proceeding, or “(ii) on grounds which would permit relief from a judgment or order under the Federal Rules of Civil Procedure.”. (7) Subsection (1) (as redesignated by paragraph (5)(B) of this section) is amended— (A) by striking out “claims of United States letters patent” in the first sentence and inserting “a proceeding involving a patent, copyright, or mask work under subsection (a)(1)”; and (B) by striking out “a patent owner” in the second sentence and inserting “an owner of the patent, copyright, or mask work”. (8) Such section is further amended by adding at the end the following: “(n) (1) Information submitted to the Commission or exchanged Classified information. among the parties in connection with proceedings under this section which is properly designated as confidential pursuant to Commission rules may not be disclosed (except under a protective order issued under regulations of the Commission which authorizes limited disclosure of such information) to any person (other than a person described in paragraph (2)) without the consent of the person submitting it. “(2) Notwithstanding the prohibition contained in paragraph (1), information referred to in that paragraph may be disclosed to— “(A) an officer or employee of the Commission who is directly concerned with carrying out the investigation in connection with which the information is submitted, “(B) an officer or employee of the United States Government who is directly involved in the review under subsection (h), or “(C) an officer or employee of the United States Customs Service who is directly involved in administering an exclusion from entry under this section resulting from the investigation in connection with which the information is submitted.”. (b) Technical Amendments.— Section 337 (as amended by subsection (a)) is further amended— (1) by amending subsection (b)— (A) by striking out “Department of Health, Education, and Welfare” in paragraph (2) and inserting “Department of Health and Human Services”; and (B) by striking out “Secretary of the Treasury” in paragraph (3) and inserting “Secretary of Commerce”; (2) by amending subsection (c)— (A) by striking out “or (f)” and inserting “(f), or (g)”, and (B) by striking out “and (f)” and inserting “(f), and (g)”; (3) by striking out “or (f)” each place it appears in subsection (j) and inserting “(f), (g), or (i)”; (4) by striking out “(g)” in subsection (k) and inserting “(j)”; and (5) by striking out “or (f)” in subsection (1) and inserting “(f), (g), or (i)”. (c) Conforming Amendment.— The Act entitled “An Act to limit the importation of products made, produced, processed, or mined under process covered by unexpired valid United States patents, and for other purposes”, approved July 2, 1940 (54 Stat. 724, 19 U.S.C. 1337a), is repealed. (d) Effective Date.— (1) (A) Subject to subparagraph (B), the amendments made by this section shall take effect on the date of the enactment of this Act. (B) The United States International Trade Commission is not required to apply the provision in section 337(e)(2) of the Tariff Act of 1930 (as amended by subsection (a)(3) of this section) relating to the posting of bonds until the earlier of— (i) the 90th day after such date of enactment; or (ii) the day on which the Commission issues interim regulations setting forth the procedures relating to such posting. (2) Notwithstanding any provision of section 337 of the Tariff Act of 1930, the United States International Trade Commission may extend, by not more than 90 days, the period within which the Commission is required to make a determination in an investigation conducted under such section 337 if— (A) the Commission would, but for this paragraph, be required to make such determination before the 180th day after the date of enactment of this Act; and (B) the Commission finds that the investigation is complicated. PART 4— TELECOMMUNICATIONS TRADE SEC. 1371. SHORT TITLE. This part may be cited as the “Telecommunications Trade Act of 1988”. SEC. 1372. FINDINGS AND PURPOSES. (a) Findings.— The Congress finds that— (1) rapid growth in the world market for telecommunications products and services is likely to continue for several decades; (2) the United States can improve prospects for— (A) the growth of— (i) United States exports of telecommunications products and services, and (ii) export-related employment and consumer services in the United States, and (B) the continuance of the technological leadership of the United States, by undertaking a program to achieve an open world market for trade in telecommunications products, services, and investment; (3) most foreign markets for telecommunications products, services, and investment are characterized by extensive government intervention (including restrictive import practices and discriminatory procurement practices) which adversely affect United States exports of telecommunications products and services and United States investment in telecommunications; (4) the open nature of the United States telecommunications market, accruing from the liberalization and restructuring of such market, has contributed, and will continue to contribute, to an increase in imports of telecommunications products and a growing imbalance in competitive opportunities for trade in telecommunications; (5) unless this imbalance is corrected through the achievement of mutually advantageous market opportunities for trade in telecommunications products and services between the United States and foreign countries, the United States should avoid granting continued open access to the telecommunications products and services of such foreign countries in the United States market; and (6) the unique business conditions in the worldwide market for telecommunications products and services caused by the combination of deregulation and divestiture in the United States, which represents a unilateral liberalization of United States trade with the rest of the world, and continuing government intervention in the domestic industries of many other countries create a need to make an exception in the case of telecommunications products and services that should not necessarily be a precedent for legislating specific sectoral priorities in combating the closed markets or unfair foreign trade practices of other countries. (b) Purposes.— The purposes of this part are— (1) to foster the economic and technological growth of, and employment in, the United States telecommunications industry; (2) to secure a high quality telecommunications network for the benefit of the people of the United States; (3) to develop an international consensus in favor of open trade and competition in telecommunications products and services; (4) to ensure that countries which have made commitments to open telecommunications trade fully abide by those commitments; and (5) to achieve a more open world trading system for telecommunications products and services through negotiation and provision of mutually advantageous market opportunities for United States telecommunications exporters and their subsidiaries in those markets in which barriers exist to free international trade. SEC. 1373. DEFINITIONS. For purposes of this part— (1) The term “Trade Representative” means the United States Trade Representative. (2) The term “telecommunications product” means— (A) any paging devices provided for under item 685.65 of such Schedules, and (B) any article classified under any of the following item numbers of such Schedules: 684.57 684.67 685.28 685.39 684.58 684.80 685.30 685.48 684.59 685.16 685.31 688.17 684.65 685.24 685.33 688.41 684.66 685.25 685.34 707.90. SEC. 1374. INVESTIGATION OF FOREIGN TELECOMMUNICATIONS TRADE BARRIERS. (a) In General.— The Trade Representative shall conduct an investigation to identify priority foreign countries. Such investiga- Termination date. tion shall be concluded by no later than the date that is 5 months after the date of enactment of this Act. (b) Factors To Be Taken Into Account.— In identifying priority foreign countries under subsection (a), the Trade Representative shall take into account, among other relevant factors— (1) the nature and significance of the acts, policies, and practices that deny mutually advantageous market opportunities to telecommunications products and services of United States firms; (2) the economic benefits (actual and potential) accruing to foreign firms from open access to the United States market; (3) the potential size of the market of a foreign country for telecommunications products and services of United States firms; (4) the potential to increase United States exports of telecommunications products and services, either directly or through the establishment of a beneficial precedent; and (5) measurable progress being made to eliminate the objectionable acts, policies, or practices. (c) Revocations and Additional Identifications.— (1) The Trade Representative may at any time, after taking into account the factors described in subsection (b)— (A) revoke the identification of any priority foreign country that was made under this section, or (B) identify any foreign country as a priority foreign country under this section, if information available to the Trade Representative indicates that such action is appropriate. (2) The Trade Representative shall include in the semiannual report submitted to the Congress under section 309(3) of the Trade Act of 1974 a detailed explanation of the reasons for the revocation under paragraph (1) of this subsection of any identification of any foreign country as a priority foreign country. (d) Report to Congress.— By no later than the date that is 30 days after the date on which the investigation conducted under subsection (a) is completed, the United States Trade Representative shall submit a report on the investigation to the President and to appropriate committees of the Congress. SEC. 1375. NEGOTIATIONS IN RESPONSE TO INVESTIGATION. (a) In General.— Upon— (1) the date that is 30 days after the date on which any foreign country is identified in the investigation conducted under section 1374(a) as a priority foreign country, and (2) the date on which any foreign country is identified under section 1374(c)(1)(B) as a priority foreign country, the President shall enter into negotiations with such priority foreign country for the purpose of entering into a bilateral or multilateral trade agreement under part 1 of subtitle A which meets the specific negotiating objectives established by the President under subsection (b) for such priority foreign country. (b) Establishment of Specific Negotiating Objectives for Each Foreign Priority Country.— (1) The President shall establish such relevant specific negotiating objectives on a country-by-country basis as are necessary to meet the general negotiating objectives of the United States under this section. (2) (A) The President may refine or modify specific negotiating objectives for particular negotiations in order to respond to circumstances arising during the negotiating period, including— (i) changed practices by the priority foreign country, (ii) tangible substantive developments in multilateral negotiations, (iii) changes in competitive positions, technological developments, or (iv) other relevant factors. (B) By no later than the date that is 30 days after the date on which the President makes any modifications or refinements to specific negotiating objectives under subparagraph (A), the President shall submit to appropriate committees of the Congress a statement describing such modifications or refinements and the reasons for such modifications or refinements. (c) General Negotiating Objectives.— The general negotiating objectives of the United States under this section are— (1) to obtain multilateral or bilateral agreements (or the modification of existing agreements) that provide mutually advantageous market opportunities for trade in telecommunications products and services between the United States and foreign countries; (2) to correct the imbalances in market opportunities accruing from reductions in barriers to the access of telecommunications products and services of foreign firms to the United States market; and (3) to facilitate the increase in United States exports of telecommunications products and services to a level of exports that reflects the competitiveness of the United States telecommunications industry. (d) Specific Negotiating Objectives.— The specific negotiating objectives of the United States under this section regarding telecommunications products and services are to obtain— (1) national treatment for telecommunications products and services that are provided by United States firms; (2) most-favored-nation treatment for such products and services; (3) nondiscriminatory procurement policies with respect to such products and services and the inclusion under the Agreement on Government Procurement of the procurement (by sale or lease by government-owned or controlled entities) of all telecommunications products and services; (4) the reduction or elimination of customs duties on telecommunications products; (5) the elimination of subsidies, violations of intellectual property rights, and other unfair trade practices that distort international trade in telecommunications products and services; (6) the elimination of investment barriers that restrict the establishment of foreign-owned business entities which market such products and services; (7) assurances that any requirement for the registration of telecommunications products, which are to be located on customer premises, for the purposes of— (A) attachment to a telecommunications network in a foreign country, and (B) the marketing of the products in a foreign country, be limited to the certification by the manufacturer that the products meet the standards established by the foreign country for preventing harm to the network or network personnel; (8) transparency of, and open participation in, the standards-setting processes used in foreign countries with respect to telecommunications products; (9) the ability to have telecommunications products, which are to be located on customer premises, approved and registered by type, and, if appropriate, the establishment of procedures be-tween the United States and foreign countries for the mutual recognition of type approvals; (10) access to the basic telecommunications network in foreign countries on reasonable and nondiscriminatory terms and conditions (including nondiscriminatory prices) for the provision of value-added services by United States suppliers; (11) the nondiscriminatory procurement of telecommunications products and services by foreign entities that provide local exchange telecommunications services which are owned, controlled, or, if appropriate, regulated by foreign governments; and (12) monitoring and effective dispute settlement mechanisms to facilitate compliance with matters referred to in the preceding paragraphs of this subsection. SEC. 1376. ACTIONS TO BE TAKEN IF NO AGREEMENT OBTAINED. (a) In General.— (1) If the President is unable, before the close of the negotiating period, to enter into an agreement under subtitle A with any priority foreign country identified under section 1374 which achieves the general negotiating objectives described in section 1375(b) as defined by the specific objectives established by the President for that country, the President shall take whatever actions authorized under subsection (b) that are appropriate and most likely to achieve such general negotiating objectives. (2) In taking actions under paragraph (1), the President shall first take those actions which most directly affect trade in telecommunications products and services with the priority foreign country referred to in paragraph (1), unless the President determines that actions against other economic sectors would be more effective in achieving the general negotiating objectives referred to in paragraph (1). (b) Actions Authorized.— (1) The President is authorized to take any of the following actions under subsection (a) with respect to any priority foreign country: (A) termination, withdrawal, or suspension of any portion of any trade agreement entered into with such country under— (i) the Trade Act of 1974, (ii) section 201 of the Trade Expansion Act of 1962, or (iii) section 350 of the Tariff Act of 1930, with respect to any duty or import restriction imposed by the United States on any telecommunications product; (B) actions described in section 301 of the Trade Act of 1974; (C) prohibition of purchases by the Federal Government of telecommunications products of such country; (D) increases in domestic preferences under title III of the Act of March 3, 1933 (41 U.S.C. 10a, et seq.) for purchases by the Federal Government of telecommunications products of such country; (E) suspension of any waiver of domestic preferences under title III of the Act of March 3, 1933 (41 U.S.C. 10a, et seq.) which may have been extended to such country pursuant to the Trade Agreements Act of 1979 with respect to telecommunications products or any other products; (F) issuance of orders to appropriate officers and employees of the Federal Government to deny Federal funds or Federal credits for purchases of the telecommunications products of such country; and (G) suspension, in whole or in part, of benefits accorded articles of such country under title V of the Trade Act of 1974 (19 U.S.C. 2461, et seq.). (2) Notwithstanding section 125 of the Trade Act of 1974 and any other provision of law, if any portion of a trade agreement described in paragraph (1)(A) is terminated, withdrawn, or suspended under paragraph (1) with respect to any duty imposed by the United States on the products of a foreign country, the rate of such duty that shall apply to such products entered, or withdrawn from warehouse for consumption, after the date on which such termination, withdrawal, or suspension takes effect shall be a rate determined by the President. (c) Negotiating Period.— (1) For purposes of this section, the term “negotiating period” means— (A) with respect to a priority foreign country identified in the investigation conducted under section 1374(a), the 18-month period beginning on the date of the enactment of this Act, and (B) with respect to any foreign country identified as a priority foreign country after the conclusion of such investigation, the 1-year period beginning on the date on which such identification is made. (2) (A) The negotiating period with respect to a priority foreign country may be extended for not more than two 1-year periods. (B) By no later than the date that is 15 days after the date on which the President extends the negotiating period with respect to any priority foreign country, the President shall submit to appropriate committees of the Congress a report on the status of negotiations with such country that includes— (i) a finding by the President that substantial progress is being made in negotiations with such country, and (ii) a statement detailing the reasons why an extension of such negotiating period is necessary. (d) Modification and Termination Authority.— The President may modify or terminate any action taken under subsection (a) if, after taking into consideration the factors described in section 1374(b), the President determines that changed circumstances war-rant such modification or termination. (e) Report.— The President shall promptly inform the appropriate committees of the Congress of any action taken under subsection (a) or of the modification or termination of any such action under subsection (d). SEC. 1377. REVIEW OF TRADE AGREEMENT IMPLEMENTATION BY TRADE REPRESENTATIVE. (a) In General.— (1) In conducting the annual analysis under section 181(a) of the Trade Act of 1974 (19 U.S.C. 2241), the Trade Representative shall review the operation and effectiveness of— (A) each trade agreement negotiated by reason of this part that is in force with respect to the United States; and (B) every other trade agreement regarding telecommunications products or services that is in force with respect to the United States. (2) In each review conducted under paragraph (1), the Trade Representative shall determine whether any act, policy, or practice of the foreign country that has entered into the agreement described in paragraph (1)— (A) is not in compliance with the terms of such agreement, or (B) otherwise denies, within the context of the terms of such agreement, to telecommunications products and services of United States firms mutually advantageous market opportunities in that foreign country. (b) Review Factors.— (1) In conducting reviews under subsection (a), the Trade Representative shall consider any evidence of actual patterns of trade (including United States exports to a foreign country of telecommunications products and services, including sales and services related to those products) that do not reflect patterns of trade which would reasonably be anticipated to flow from the concessions or commitments of such country based on the international competitive position and export potential of such products and services. . (2) The Trade Representative shall consult with the United States International Trade Commission with regard to the actual patterns of trade described in paragraph (1). (c) Action in Response to Affirmative Determination.— (1) Any affirmative determination made by the Trade Representative under subsection (a)(2) with respect to any act, policy, or practice of a foreign country shall, for purposes of chapter 1 of title III of the Trade Act of 1974, be treated as an affirmative determination under section 304(a)(1)(A) of such Act that such act, policy, or practice violates a trade agreement. (2) In taking actions under section 301 by reason of paragraph (1), the Trade Representative shall first take those actions which most directly affect trade in telecommunications products and services with the priority foreign country referred to in paragraph (1), unless the Trade Representative determines that actions against other economic sectors would be more effective in achieving compliance by the foreign country with the trade agreement that is the subject of the affirmative determination made under subsection (a)(2). SEC. 1378. COMPENSATION AUTHORITY. If— (1) the President has taken action under section 1376(a) with respect to any foreign country, and (2) such action is found to be inconsistent with the international obligations of the United States, including the General Agreement on Tariffs and Trade, the President may enter into trade agreements with such foreign country for the purpose of granting new concessions as compensation for such action in order to maintain the general level of reciprocal and mutually advantageous concessions. SEC. 1379. CONSULTATIONS. (a) Advice From Departments and Agencies.— Prior to taking President of U.S. 19 USC 3108. any action under this part, the President shall seek information and advice from the interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872). (b) Advice From the Private Sector.— Before— (1) the Trade Representative concludes the investigation conducted under section 1374(a) or takes action under section 1374(c), (2) the President establishes specific negotiating objectives under section 1375(b) with respect to any foreign country, or (3) the President takes action under section 1376, the Trade Representative shall provide an opportunity for the presentation of views by any interested party with respect to such investigation, objectives, or action, including appropriate commit-tees established pursuant to section 135 of the Trade Act of 1974 (19 U.S.C. 2155). (c) Consultations With Congress and Official Advisors.— For purposes of conducting negotiations under section 1375(a), the Trade Representative shall keep appropriate committees of the Congress, as well as appropriate committees established pursuant to section 135 of the Trade Act of 1974, currently informed with respect to— (1) the negotiating priorities and objectives for each priority foreign country; (2) the assessment of negotiating prospects, both bilateral and multilateral; and (3) any United States concessions which might be included in negotiations to achieve the objectives described in subsections (c) and (d) of section 1375. (d) Modification of Specific Negotiating Objectives.— Before President of U.S. the President takes any action under section 1375(b)(2)(A) to refine or modify specific negotiating objectives, the President shall consult with the Congress and with members of the industry, and representatives of labor, affected by the proposed refinement or modification. SEC. 1380. SUBMISSION OF DATA; ACTION TO ENSURE COMPLIANCE. (a) Submission of Data.— The Federal Communications Commission (hereafter in this section referred to as the “Commission”) shall periodically submit to appropriate committees of the House of Representatives and of the Senate any data collected and otherwise made public under Report No. DC–1105, “Information Reporting Requirements Established for Common Carriers”, adopted February 25, 1988, relating to FCC Docket No. 86–494, adopted December 23, 1987. (b) Action to Ensure Compliance.— (1) (A) Any product of a foreign country that is subject to registration or approval by the Commission may be entered only if— (i) such product conforms with all applicable rules and regulations of the Commission, and (ii) the information which is required on Federal Communications Commission Form 740 on the date of enactment of this Act is provided to the appropriate customs officer at the time of such entry in such form and manner as the Secretary of the Treasury may prescribe. (B) For purposes of this paragraph, the term “entered” means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States. (2) The Commission, the Secretary of Commerce, and the Trade Representative shall provide such assistance in the enforcement of paragraph (1) as the Secretary of the Treasury may request. (3) The Secretary of the Treasury shall compile the information collected under paragraph (1)(A)(ii) into a summary and shall annually submit such summary to the Congress until the authority to negotiate trade agreements under part 1 of subtitle Public information. A expires. Such information shall also be made available to the public. SEC. 1381. STUDY ON TELECOMMUNICATIONS COMPETITIVENESS IN THE UNITED STATES. (a) In General.— The Secretary of Commerce, in consultation with the Federal Communications Commission and the United States Trade Representative, shall conduct a study of the competitiveness of the United States telecommunications industry and the effects of foreign telecommunications policies and practices on such industry in order to assist the Congress and the President in deter-mining what actions might be necessary to preserve the competitiveness of the United States telecommunications industry. (b) Public Comment.— The Secretary of Commerce may, as appropriate, provide notice and reasonable opportunity for public comment as part of the study conducted under subsection (a). (c) Report.— The Secretary of Commerce shall, by no later than the date that is 1 year after the date of enactment of this Act, submit to the Congress and the President a report on the findings and recommendations reached by the Secretary of Commerce as a result of the study conducted under subsection (a). Such report shall be referred to the appropriate committees of the House of Representatives and of the Senate. SEC. 1382. INTERNATIONAL OBLIGATIONS. Nothing in this part may be construed to require actions inconsistent with the international obligations of the United States, including the General Agreement on Tariffs and Trade. Subtitle D— Adjustment to Import Competition PART 1— POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS SEC. 1401. POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS. (a) In General.— Chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251–2253) is amended to read as follows: “CHAPTER 1— POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS “SEC. 201. ACTION TO FACILITATE POSITIVE ADJUSTMENT TO IMPORT COMPETITION. “(a) Presidential Action.— If the United States International Trade Commission (hereinafter referred to in this chapter as the ‘Commission’) determines under section 202(b) that an article is being imported into the United States in such increased quantities as to be 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, the President, in accordance with this chapter, shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. “(b) Positive Adjustment to Import Competition.— “(1) For purposes of this chapter, a positive adjustment to import competition occurs when— “(A) the domestic industry— “(i) is able to compete successfully with imports after actions taken under section 204 terminate, or “(ii) the domestic industry experiences an orderly transfer of resources to other productive pursuits; and “(B) dislocated workers in the industry experience an orderly transition to productive pursuits. “(2) The domestic industry may be considered to have made a positive adjustment to import competition even though the industry is not of the same size and composition as the industry at the time the investigation was initiated under section 202(b). “SEC. 202. INVESTIGATIONS. DETERMINATIONS, AND RECOMMENDATIONS BY COMMISSION. “(a) Petitions and Adjustment Plans.— “(1) A petition requesting action under this chapter for the purpose of facilitating positive adjustment to import competition may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of an industry. “(2) A petition under paragraph (1)— “(A) shall include a statement describing the specific purposes for which action is being sought, which may include facilitating the orderly transfer of resources to more productive pursuits, enhancing competitiveness, or other means of aqjustment to new conditions of competition; and “(B) may— “(i) subject to subsection (d)(1)(C)(i), request provisional relief under subsection (d)(1); or “(ii) request, or at any time before the 150th day after the date of filing be amended to request, provisional relief under subsection (d)(2). “(3) Whenever a petition is filed under paragraph (1), the Commission shall promptly transmit copies of the petition to the Office of the United States Trade Representative and other Federal agencies directly concerned. “(4) A petitioner under paragraph (1) may submit to the Commission and the United States Trade Representative (here-after in this chapter referred to as the ‘Trade Representative’), either with the petition, or at any time within 120 days after the date of filing of the petition, a plan to facilitate positive adjustment to import competition. “(5) (A) Before submitting an adjustment plan under paragraph (4), the petitioner and other entities referred to in paragraph (1) that wish to participate may consult with the Trade Representative and the officers and employees of any Federal agency that is considered appropriate by the Trade Representative, for purposes of evaluating the adequacy of the proposals being considered for inclusion in the plan in relation to specific actions that may be taken under this chapter. “(B) A request for any consultation under subparagraph (A) must be made to the Trade Representative. Upon receiving such a request, the Trade Representative shall confer with the petitioner and provide such assistance, including publication of appropriate notice in the Federal Register, as may be practicable in obtaining other participants in the consultation. No consultation may occur under subparagraph (A) unless the Trade Representative, or his delegate, is in attendance. “(6) (A) In the course of any investigation under subsection (b), the Commission shall seek information (on a confidential basis, to the extent appropriate) on actions being taken, or planned-to be taken, or both, by firms and workers in the industry to make a positive adjustment to import competition. “(B) Regardless whether an adjustment plan is submitted under paragraph (4) by the petitioner, if the Commission makes an affirmative determination under subsection (b), any— “(i) firm in the domestic industry; “(ii) certified or recognized union or group of workers in the domestic industry; “(iii) State or local community; “(iv) trade association representing the domestic industry; or “(v) any other person or group of persons, may, individually, submit to the Commission commitments regarding actions such persons and entities intend to take to facilitate positive adjustment to import competition. “(7) Nothing in paragraphs (5) and (6) may be construed to provide immunity under the antitrust laws. “(b) Investigations and Determinations by Commission.— “(1) (A) Upon the filing of a petition under subsection (b), the request of the President or the Trade Representative, the resolution of either the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate, or on its own motion, the Commission shall promptly make an investigation to determine whether an article is being imported into the United States in such increased quantities as to be 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. “(B) For purposes of this section, the term ‘substantial cause’ means a cause which is important and not less than any other cause. “(2) (A) Except as provided in subparagraph (B), the Commission shall make the determination under paragraph (1) within 120 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case may be. “(B) If before the 100th day after a petition is filed under subsection (a)(1) the Commission determines that the investigation is extraordinarily complicated, the Commission shall make the determination under paragraph (1) within 150 days after the date referred to in subparagraph (A). “(3) (A) If the Commission makes an affirmative determination under paragraph (1) and the petitioner alleges the existence of critical circumstances, the Commission shall make a determination regarding such allegation— “(i) on or before the 120th day after the day on which the petition was filed, if such allegation was included in the petition on or before the 90th day after such filing date; or “(ii) on or before the date the report required under subsection (f) regarding the determination is submitted to the President, if such allegation was included in the petition after the 90th day, and on or before the 150th day, sifter such filing date. “(B) For purposes of this paragraph and subsection (d)(2), critical circumstances exist if a substantial increase in imports (either actual or relative to domestic production) over a relatively short period of time has led to circumstances in which a delay in taking action under this chapter would cause harm that would significantly impair the effectiveness of such action. “(4) In the course of any proceeding under this subsection, the Commission shall, after reasonable notice, hold public hearings and 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), and to be heard at such hearings. “(c) Factors Applied in Making Determinations.— “(1) In making determinations under subsection (b), the Commission shall take into account all economic factors which it considers relevant, including (but not limited to)— “(A) with respect to serious injury— “(i) the significant idling of productive facilities in the domestic industry, “(ii) the inability of a significant number of firms to carry out domestic production operations at a reason-able level of profit, and “(iii) significant unemployment or underemployment Employment and unemployment. within the domestic industry; “(B) with respect to threat of serious iiyury— “(i) a decline in sales or market share, a higher and growing inventory (whether maintained by domestic producers, importers, wholesalers, or retailers), and a downward trend in production, profits, wages, or employment (or increasing underemployment) in the domestic industry, “(ii) the extent to which firms in the domestic industry are unable to generate adequate capital to finance the modernization of their domestic plants and equipment, or are unable to maintain existing levels of expenditures for research and development, “(iii) the extent to which the United States market is the focal point for the diversion of exports of the article concerned by reason of restraints on exports of such article to, or on imports of such article into, third country markets; and “(C) with respect to substantial cause, an increase in imports (either actual or relative to domestic production) and a decline in the proportion of the domestic market supplied by domestic producers. “(2) In making determinations under subsection (b), the Commission shall— “(A) consider the condition of the domestic industry over the course of the relevant business cycle, but may not aggregate the causes of declining demand associated with a recession or economic downturn in the United States economy into a single cause of serious injury or threat of injury; and “(B) examine factors other than imports which may be a cause of serious injury, or threat of serious injury, to the domestic industry. The Commission shall include the results of its examination under subparagraph (B) in the report submitted by the Commission to the President under subsection (e). “(3) The presence or absence of any factor which the Commission is required to evaluate in subparagraphs (A) and (B) of paragraph (1) is not necessarily dispositive of whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry. “(4) For purposes of subsection (b), in determining the domes-tic industry producing an article like or directly competitive with an imported article, the Commission— “(A) to the extent information is available, shall, in the case of a domestic producer which also imports, treat as part of such domestic industry only its domestic production; “(B) may, in the case of a domestic producer which produces more than one article, treat as part of such domes-tic industry only that portion or subdivision of the producer which produces the like or directly competitive article; and “(C) may, in the case of one or more domestic producers which produce a like or directly competitive article in a major geographic area of the United States and whose production facilities in such area for such article constitute a substantial portion of the domestic industry in the United States and primarily serve the market in such area, and where the imports are concentrated in such area, treat as such domestic industry only that segment of the production located in such area. “(5) In the course of any proceeding under this subsection, the Commission shall investigate any factor which in its judgment may be contributing to increased imports of the article under investigation. Whenever in the course of its investigation the Commission has reason to believe that the increased imports are attributable in part to circumstances which come within the purview of subtitles A and B of title VII or section 337 of the Tariff Act of 1930, or other remedial provisions of law, the Commission shall promptly notify the appropriate agency so that such action may be taken as is otherwise authorized by such provisions of law. “(6) For purposes of this subsection: “(A) The term ‘domestic industry’ includes producers located in the United States insular possession. “(B) The term ‘significant idling of productive facilities’ includes the closing of plants or the underutilization of production capacity. “(d) Provisional Relief.— “(1) (A) An entity representing a domestic industry that produces Agriculture and agricultural commodities. a perishable agricultural product that is like or directly competitive with an imported perishable agricultural product may file a request with the Trade Representative for the monitoring of imports of that product under subparagraph (B). Within 21 days after receiving the request, the Trade Representative shall determine if— “(i) the imported product is a perishable agricultural product; and “(ii) there is a reasonable indication that such product is being imported into the United States in such increased quantities as to be, or likely to be, a substantial cause of serious injury, or the threat thereof, to such domestic industry. “(B) If the determinations under subparagraph (A) (i) and (ii) are affirmative, the Trade Representative shall request, under section 332(g) of the Tariff Act of 1930, the Commission to monitor and investigate the imports concerned for a period not to exceed 2 years. The monitoring and investigation may include the collection and analysis of information that would expedite an investigation under subsection (b). “(C) If a petition filed under subsection (a)— “(i) alleges injury from imports of a perishable agricultural product that has been, on the date the allegation is included in the petition, subject to monitoring by the Commission under paragraph (2) for not less than 90 days; and “(ii) requests that provisional relief be provided under this subsection with respect to such imports; the Commission shall, not later than the 21st day after the day on which the request was filed, make a determination, on the basis of available information, whether increased imports (either actual or relative to domestic production) of the perishable agricultural product are a substantial cause of serious injury, or the threat thereof, to the domestic industry producing a like or directly competitive perishable product, and whether either— “(I) the serious injury is likely to be difficult to repair by reason of perishability of the like or directly competitive agricultural product; or “(II) the serious injury cannot be timely prevented through investigation under subsection (b) and action under section 203. “(D) At the request of the Commission, the Secretary of Agriculture shall promptly provide to the Commission any relevant information that the Department of Agriculture may have for purposes of making determinations and findings under this subsection. “(E) Whenever the Commission makes an affirmative preliminary determination under subparagraph (C), the Commission shall find the amount or extent of provisional relief that is necessary to prevent or remedy the serious injury or threat thereof. 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 or threat thereof. “(F) The Commission shall immediately report to the President its determination under subparagraph (C) and, if the determination is affirmative, the finding under subparagraph (E). “(G) Within 7 days after receiving a report from the Commission under subparagraph (F) containing an affirmative determination, the President, if he considers provisional relief to be warranted and after taking into account the finding of the Commission under subparagraph (E), shall proclaim such provisional relief that the President considers necessary to prevent or remedy the serious injury or threat thereof. “(2) (A) The Commission shall, at the same time it makes an affirmative determination under subsection (b)(3)(A) regarding the existence of critical circumstances, find the amount or extent of provisional relief that is appropriate to address such Reports. critical circumstances. The Commission shall immediately report to the President each such affirmative determination and finding. “(B) After receiving a report from the Commission under subparagraph (A), the President shall, within 7 days after the day on which the report is received and after taking into account the finding of the Commission under subparagraph (A), proclaim such provisional relief, if any, that the President considers appropriate to address the critical circumstances. “(3) If provisional relief is proclaimed under paragraph (1)(G) or (2)(B) in the form of an increase, or the imposition of, a duty, the President shall order the suspension of liquidation of all imported articles subject to the affirmative determination under paragraph (1)(C) or subsection (b)(1), as the case may be, that are entered, or withdrawn from warehouse for consumption, on or after the date of the determination. “(4) (A) Any provisional relief implemented under this subsection with respect to an imported article shall terminate on the day on which— “(i) if such relief was proclaimed under paragraph (1)(G), the Commission makes a negative determination under section 203(a) regarding injury or the threat thereof by imports of such article; “(ii) action described in section 203(a)(3) (A) or (C) takes effect under section 203 with respect to such article; “(iii) a decision by the President not to take any action under section 203(a) with respect to such article becomes final; or “(iv) whenever the President determines that, because of changed circumstances, such relief is no longer warranted. “(B) Any suspension of liquidation ordered under paragraph (3) with respect to an imported article shall terminate on the day on which provisional relief is terminated under subparagraph (A) with respect to the article. “(C) If an increase in, or the imposition of, a duty that is proclaimed under section 203 on an imported article is different from a duty increase or imposition that was proclaimed for such an article under this section, then the entry of any such article for which liquidation was suspended under paragraph (3) shall be liquidated at whichever of such rates of duty is lower. “(D) If provisional relief in the form of an increase in, or the imposition of, a duty is proclaimed under this section with respect to an imported article and neither a duty increase nor a duty imposition is proclaimed under section 203 regarding such article, the entry of any such article for which liquidation was suspended under paragraph (3) may be liquidated at the rate of duty that applied before provisional relief was provided. “(5) For purposes of this subsection: “(A) A perishable agricultural product is any agricultural article, including livestock, regarding which the Trade Representative considers action under this section to be appropriate after taking into account— “(i) whether the article has— “(I) a short shelf life, “(II) a short growing season, or “(III) a short marketing period, “(ii) whether the article is treated as a perishable product under any other Federal law or regulation; and “(iii) any other factor considered appropriate by the Trade Representative. The presence or absence of any factor which the Trade Representative is required to take into account under clause (i), (ii), or (iii) is not necessarily dispositive of whether an article is a perishable agricultural product. “(B) The term ‘provisional relief means— “(i) any increase in, or imposition of, any duty; “(ii) any modification or imposition of any quantitative restriction on the importation of an article into the United States; or “(iii) any combination of actions under clauses (i) and (ii). “(e) Commission Recommendations.— “(1) If the Commission makes an affirmative determination under subsection (b)(1), the Commission shall also recommend the action that would address the serious injury, or threat thereof, to the domestic industry and be most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition. “(2) The Commission is authorized to recommend under paragraph (1)— “(A) an increase in, or the imposition of, any duty on the imported article; “(B) a tariff-rate quota on the article; “(C) a modification or imposition of any quantitative restriction on the importation of the article into the United States; “(D) one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; or “(E) any combination of the actions described in subparagraphs (A) through (D). “(3) The Commission shall specify the type, amount, and duration of the action recommended by it under paragraph (1). • The limitations set forth in section 203(e) are applicable to the action recommended by the Commission. “(4) In addition to the recommendation made under paragraph (1), the Commission may also recommend that the President— “(A) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat; or “(B) implement any other action authorized under law that is likely to facilitate positive adjustment to import competition. “(5) For purposes of making its recommendation under this subsection, the Commission shall— “(A) after reasonable notice, hold a public hearing at which all interested parties shall be provided an opportunity to present testimony and evidence; and “(B) take into account— “(i) the form and amount of action described in paragraph (2) (A), (B), and (C) that would prevent or remedy the injury of threat thereof, “(ii) the objectives and actions specified in the adjustment plan, if any, submitted under subsection (a)(4), “(iii) any individual commitment that was submitted to the Commission under subsection (a)(6), “(iv) any information available to the Commission concerning the conditions of competition in domestic and world markets, and likely developments affecting such conditions during the period for which action is being requested, and “(v) whether international negotiations may be constructive to address the injury or threat thereof or to facilitate adjustment. “(6) Only those members of the Commission who agreed to the affirmative determination under subsection (b) are eligible to vote on the recommendation required to be made under paragraph (1) or that may be made under paragraph (3). Members of the Commission who did not agree to the affirmative determination may submit, in the report required under subsection (f), separate views regarding what action, if any, should be taken under section 203. “(f) Report by Commission.— “(1) The Commission shall submit to the President a report on each investigation undertaken under subsection (b). The report shall be submitted at the earliest practicable time, but not later than 180 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case may be. “(2) The Commission shall include in the report required under paragraph (1) the following: “(A) The determination made under subsection (b) and an explanation of the basis for the determination. “(B) If the determination under subsection (b) is affirmative, the recommendations for action made under subsection (e) and an explanation of the basis for each recommendation. “(C) Any dissenting or separate views by members of the Commission regarding the determination and any recommendation referred to in subparagraphs (A) and (B). “(D) The findings required to be included in the report under subsection (c)(2). “(E) A copy of the adjustment plan, if any, submitted under section 201(b)(4). “(F) Commitments submitted, and information obtained, by the Commission regarding steps that firms and workers in the domestic industry are taking, or plan to take, to facilitate positive adjustment to import competition. “(G) A description of— “(i) the short- and long-term effects that implementation of the action recommended under subection (e) is likely to have on the petitioning domestic industry, on other domestic industries, and on consumers, and “(ii) the short- and long-term effects of not taking the recommended action on the petitioning domestic industry, its workers and the communities where production facilities of such industry is located, and on other domestic industries. “(3) The Commission, after submitting a report to the President Public information. Federal Register, publication. under paragraph (1), shall promptly make it available to the public (with the exception of the confidential information obtained under section 202(a)(6)(B) and any other information which the Commission determines to be confidential) and cause a summary thereof to be published in the Federal Register. “(g) Expedited Consideration of Adjustment Assistance Petitions.— If the Commission makes an affirmative determination under subsection (b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. After receiving such notification— “(1) the Secretary of Labor shall give expedited consideration to petitions by workers in the domestic industry for certification for eligibility to apply for adjustment assistance under chapter 2; and “(2) the Secretary of Commerce shall give expedited consideration to petitions by firms in the domestic industry for certification of eligibility to apply for adjustment assistance under chapter 3. “(h) Limitations on Investigations.— “(1) Except for good cause determined by the Commission to exist, no investigation for the purposes of this section shall be made with respect to the same subject matter as a previous investigation under this chapter, unless 1 year has elapsed since the Commission made its report to the President of the results of such previous investigation. “(2) If an article was the subject of an investigation under this section that resulted in any action described in section 203(a)(3) (A), (B), (C), or (E) being taken under section 203, no other investigation under this chapter may be initiated with respect to such article while such action is in effect or during the period beginning on the date on which such action terminates that is equal in duration to the period during which such action was in effect. “SEC. 203. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY. “(a) In General.— “(1) (A) After receiving a report under section 202(f) containing an affirmative finding regarding serious injury, or the threat thereof, to a domestic industry, the President shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. “(B) The action taken by the President under subparagraph (A) shall be to such extent, and for such duration, subject to subsection (e)(1), that the President determines to be appropriate and feasible under such subparagraph. “(C) The interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962 shall, with respect to each affirmative determination reported under section 202(f), make a recommendation to the President as to what action the President should take under subparagraph (A). “(2) In determining what action to take under paragraph (1), the President shall take into account— “(A) the recommendation and report of the Commission; “(B) the extent to which workers and firms in the domes-tic industry are— “(i) benefitting from adjustment assistance and other manpower programs, and “(ii) engaged in worker retraining efforts; “(C) the efforts being made, or to be implemented, by the domestic industry (including the efforts included in any adjustment plan or commitment submitted to the Commission under section 201(b)) to make a positive adjustment to import competition; “(D) the probable effectiveness of the actions authorized under paragraph (3) to facilitate positive adjustment to import competition; “(E) the short- and long-term economic and social costs of the actions authorized under paragraph (3) relative to their short- and long-term economic and social benefits and other considerations relative to the position of the domestic industry in the United States economy; “(F) other factors related to the national economic interest of the United States, including, but not limited to— “(i) the economic and social costs which would be incurred by taxpayers, communities, and workers if import relief were not provided under this chapter, “(ii) the effect of the implementation of actions under this section on consumers and on competition in domestic markets for articles, and “(iii) the impact on United States industries and firms as a result of international obligations regarding compensation; “(G) the extent to which there is diversion of foreign exports to the United States market by reason of foreign restraints; “(H) the potential for circumvention of any action taken under this section; “(I) the national security interests of the United States; Defense and national security. and “(J) the factors required to be considered by the Commission under section 202(e)(5). “(3) The President may, for purposes of taking action under paragraph (1)— “(A) proclaim an increase in, or the imposition of, any duty on the imported article; “(B) proclaim a tariff-rate quota on the article; “(C) proclaim a modification or imposition of any quantitative restriction on the importation of the article into the United States; “(D) implement one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; “(E) negotiate, conclude, and carry out orderly marketing agreements with foreign countries limiting the export from foreign countries and the import into the United States of such article; “(F) proclaim procedures necessary to allocate among importers by the auction of import licenses quantities of the article that are permitted to be imported into the United States; “(G) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat thereof; “(H) submit to Congress legislative proposals to facilitate the efforts of the domestic industry to make a positive adjustment to import competition; “(I) take any other action which may be taken by the President under the authority of law and which the President considers appropriate and feasible for purposes of paragraph (1); and “(J) take any combination of actions listed in subparagraphs (A) through (I). “(4) The President shall take action under paragraph (1) within 60 days after receiving a report from the Commission containing an affirmative determination under section 202(b)(1) (or a determination under such section which he considers to be an affirmative determination by reason of section 330(d) of the Tariff Act of 1930); except that 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. “(5) The President may, within 15 days after the date on which he receives a report from the Commission containing an affirmative determination under section 202(b)(1), request additional Reports. information from the Commission. The Commission shall, as soon as practicable but in no event more than 30 days after the date on which it receives the President’s request, furnish additional information with respect to the industry in a supplemental report “(b) Reports to Congress.— “(1) On the day the President takes action under subsection (a)(1), the President shall transmit to Congress a document describing the action and the reasons for taking the action. If the action taken by the President differs from the action required to be recommended by the Commission under section 202(e)(1), the President shall state in detail the reasons for the difference. “(2) On the day on which the President decides that there is no appropriate and feasible action to take under subsection (a)(1) with respect to a domestic industry, the President shall transmit to Congress a document that sets forth in detail the reasons for the decision. “(3) On the day on which the President takes any action under subsection (a)(1) that is not reported under paragraph (1), the President shall transmit to Congress a document setting forth the action being taken and the reasons therefor. “(c) Implementation of Action Recommended by Commission.— If the President reports under subsection (b)(1) or (2) that— “(1) the action taken under subsection (a)(1) differs from the action recommended by the Commission under section 202(e)(1); or “(2) no action will be taken under subsection (a)(1) with respect to the domestic industry; Effective date. the action recommended by the Commission shall take effect (as provided in subsection (c)(2)) upon the enactment of a joint resolution described in section 152(a)(1)(A) within the 90-day period beginning on the date on which the document referred to in subsection (b)(1) or (2) is transmitted to the Congress. “(d) Time for Taking Effect of Certain Relief.— “(1) Except as provided in paragraph (2), any action described in subsection (a)(3)(A), (B), or (C), that is taken under subsection (a)(1) shall take effect within 15 days after the day on which the President proclaims the action, unless the President announces, on the date he decides to take such action, his intention to negotiate one or more orderly marketing agreements in which case the action under subsection (a)(3)(A), (B), or (C) shall be proclaimed and take effect within 90 days after the date of such decision. “(2) If the contingency set forth in subsection (c) occurs, the President shall, within 30 days after the date of the enactment of the joint resolution referred to in such subsection, proclaim the action recommended by the Commission under section 202(e)(1). “(e) Limitations on Actions.— “(1) (A) The duration of the period in which action taken under this section may be in effect shall not exceed 8 years. “(B) If the initial effective period for action taken under this section is less than 8 years, the President may extend the effective period once, but the aggregate of the initial period and the extension may not exceed 8 years. “(2) Action may be taken under subsection (a)(1)(A), (B), or (C) or under section 202(d)(2)(B) only to the extent the cumulative impact of such action does not exceed the amount necessary to prevent or remedy the serious injury or threat thereof. “(3) No action may be taken under this section which would increase a rate of duty to (or impose a rate) which is more than 50 percent ad valorem above the rate (if any) existing at the time the action is taken. “(4) Any action taken under this section proclaiming a quantitative restriction shall permit the importation of a quantity or value of the article whicn is not less than the quantity or value of such article imported into the United States during the most recent period that is representative of imports of such article. “(5) To the extent feasible, an effective period of more than 3 years for an action described in subsection (a)(3)(A), (B), or (Q shall be phased down during the period in which the action is taken, with the first reduction taking effect no later than the close of the day which is 3 years after the day on which such action first takes effect. “(6) (A) The suspension, pursuant to any action taken under this section of— “(i) item 806.30 or 807.00 of the Tariff Schedules of the United States with respect to an article; and “(ii) the designation of any article as an eligible article for purposes of title V; shall be treated as an increase in duty. “(B) No proclamation providing for a suspension referred to in subparagraph (A) with respect to any article may be made by the President, nor may any such suspension be recommended by the Commission under section 203(c), unless the Commission, in addition to making an affirmative determination under section 202(b)(1), determines in the course of its investigation under section 203(a) that the serious injury, or threat thereof, substantially caused by imports to the domestic industry producing a like or directly competitive article results from, as the case may be— “(A) the application of item 806.30 or item 807.00; or “(B) the designation of the article as an eligible article for the purposes of title V. “(f) Orderly Marketing and Other Agreements.— “(1) If the President takes action under this section other than the implemention of orderly marketing agreements, the President may, after such action takes effect, negotiate orderly marketing agreements with foreign countries, and may, after such agreements take effect, suspend or terminate, in whole or in part, any action previously taken. “(2) If an orderly marketing agreement implemented under subsection (a) is not effective, the President may, consistent with the limitations contained in subsection (e), take additional action under subsection (a). “(g) Regulations.— “(1) The President shall by regulation provide for the efficient and fair administration of all actions taken for the purpose of providing import relief under this chapter. “(2) In order to carry out an orderly marketing or other international agreement concluded under this chapter, the President may prescribe regulations governing the entry or withdrawal from warehouse of articles covered by such agreement. In addition, in order to carry out any orderly marketing agreement concluded under this chapter with one or more countries accounting for a major part of United States imports of the article covered by such agreements, including imports into a major geographic area of the United States, the President may issue regulations governing the entry or withdrawal from warehouse of like articles which are the product of countries not parties to such agreement. “(3) Regulations prescribed under this subsection shall, to the extent practicable and consistent with efficient and fair administration, insure against inequitable sharing of imports by a relatively small number of the larger importers. “SEC. 204. MONITORING. MODIFICATION, AND TERMINATION OF ACTION. “(a) Monitoring.— “(1) So long as any action taken under section 203 remains in effect, the Commission shall monitor developments with respect to the domestic industry, including the progress and specific efforts made by workers and firms in the domestic industry to make apositive adjustment to import competition. “(2) 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— “(A) the 2ndanniversary of the day on which the action under section 203 first took effect; and “(B) the last day of each 2-year period occurring after the 2-year period referred to in subparagraph (A). “(3) In the course of preparing each report under paragraph (2), the Commission shall hold a hearing at which interested persons shall be given a reasonable opportunity to be present, to produce evidence, and to be heard. “(4) Upon request of the President, the Commission shall advise the President of its judgment as to the probable economic effect on the industry concerned of any extension, reduction, modification, or termination of the action taken under section 203 which is under consideration. “(b) Reduction, Modification, and Termination of Action.— “(1) Action taken under section 203 may be reduced, modified, or terminated by the President (but not before the President receives the report required under subsection (a)(2)(A)) if the President— “(A) after taking into account any report or advice submitted by the Commission under subsection (a) and after seeking the advice of the Secretary of Commerce and the Secretary of Labor, determines, on the basis that either— “(i) the domestic industry has not made adequate efforts to make a positive adjustment to import competition, or “(ii) the effectiveness of the action taken under section 203 has been impaired by changed economic circumstances, that changed circumstances warrant such reduction, or termination; or “(B) determines, after a majority of the representatives of the domestic industry submits to the President a petition requesting such reduction, modification, or termination on such basis, that the domestic industry has made a positive adjustment to import competition. “(2) Notwithstanding paragraph (1), the President is authorized President of U.S. to take such additional action under section 203 as may be necessary to eliminate any circumvention of any action previously taken under such section. “(d) Evaluation of Effectiveness of Action.— “(1) After any action taken under section 203 has terminated, the Commission shall evaluate the effectiveness of the actions in facilitating positive adjustment by the domestic industry to import competition, consistent with the reasons set out by the President in the report submitted to the Congress under section 203(b). “(2) During the course of the evaluation conducted under paragraph (1), the Commission shall, after reasonable public notice, hold a hearing on the effectiveness of the action. All interested persons shall have the opportunity to attend such hearing and to present evidence or testimony at such hearing. “(3) A report on the evaluation made under paragraph (1) and Reports. the hearings held under paragraph (2) shall be submitted by the Commission to the President and to the Congress by no later than the 180th day after the day on which the actions taken under section 203 terminated. “(e) Other Provisions.— “(1) Action by the President under this chapter may be taken without regard to the provisions of section 126(a) of this Act but only after consideration of the relation of such actions to the international obligations of the United States. “(2) If the Commission treats as the domestic industry production President of U.S. located in a major geographic area of the United States under section 202(c)(4)(C), then the President shall take into account the geographic concentration of domestic production and of imports in that area in taking any action authorized under paragraph (1).”. (b) Conforming Amendments.— (1) Trade act of 1974.— The Trade Act of 1974 is amended as follows: (A) section 123(b)(4) is amended by striking out “import 19 USC 2133. relief under section 203(h).” and inserting “action under sections 203(e) and 204.”. (B) Sections 224 and 264 (19 U.S.C. 2274 and 2354) are each amended— (i) by striking out “201” in subsection (a) and inserting “202”; (ii) by striking out “201” in subsection (b) and inserting “202(f)”; and such section 264 is amended by striking out “201(b)” in subsection (c) and inserting “202(b)”. (2) Caribbean basin economic recovery act.— Section 213 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is amended— (A) by striking out “proclaimed pursuant to section 203” in subsection (e)(1) and inserting “provided under chapter 1 of title II”; (B) by striking out “201(d)(1)” in subsection (e)(2) and inserting “202(f)”; (C) by striking out “(a) and (c) of section 203” in subsection (e)(3) and inserting “section 203”; (D) by amending subsection (e)(4)— (i) by striking out “made under subsections (a) and (c) of section 203” and inserting “taken under section 203”; (ii) by striking out “201(b)” the first place it appears and inserting “202(b)”; and (iii) by striking out “section 201(b) of such Act” and inserting “such section”; (E) by amending subsection (e)(5)— (i) by striking out “proclamation issued pursuant to section 203” in subparagraph (A) and inserting “action taken under section 203”; and (ii) by amending subparagraph (B)— (I) by striking out “to import relief” and inserting “to any such action”, (II) by striking out “such import relief” and inserting “such action”, and (III) by striking out “subsections (h) and (i) of section 203” and inserting “section 203”; (F) by amending subsection (f)(4)— (i) by amending subparagraph (A) by striking out “proclamation of import relief pursuant to section 202(a)(1)” and inserting “taking of action under section 203”, and (ii) by amending subparagraph (B) to read as follows: “(B) on the day a determination by the President not to take action under section 203 of such Act not to take action becomes final,”. (3) Trade and tariff act of 1984.— (A) Title IV of the Tariff and Trade Act of 1984 is amended— (i) by amending section 403— (I) by striking out “section 201(d)(1)” in subsection (b) and inserting “section 202(f)”, (II) by striking out “subsections (a) and (c) of” in subsections (c) and (d), (III) by striking out “201(b)” in subsection (d) and inserting “202(b)”, and (IV) by striking out “subsections (h) and (i) of section 203” in subsection (e)(2) and inserting “sections 203 and 204”; and (ii) by amending section 404— (I) by striking out “section 201” in subsection (a) and inserting “section 202(a)”, (II) by striking out “proclamation of import relief under section 202(a)(1)” in subsection (d)(1) and inserting “taking of action under section 203”, and (III) by amending subsection (d)(2) to read as follows: “(2) on the day a determination of the President under section 203 of such Act not to take action becomes final;”. (4) Tariff act of 1930.— Section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) is amended— (A) by amending paragraph (1) by striking out “201” and inserting “202”; (B) by amending paragraph (2)— (i) by striking out “201” the first place it appears and inserting “202(h)”, (iii) by striking out “201(d)(1)” and inserting “202(e)(1)”, (iv) by striking out “sections 202 and 203” each place it appears and inserting “section 203”, and (v) by striking out “203(b)” in subparagraph (B) and inserting “204(a)”; and (C) by striking out “203(c)(1)” in paragraph (4) and inserting “203(a)”. (5) Table of contents.— The entry for such chapter 1 in the table of contents to the Trade Act of 1974 is amended to read as follows: “Chapter 1— Positive Adjustment by Industries Injured by Imports “Sec. 201. Action to facilitate positive adjustment to import competition. “Sec. 202. Investigations, determinations, and recommendations by Commission. “Sec. 203. Action by President after determination of import injury. “Sec. 204. Monitoring, modification, and termination of action.”. (c) Effective Date.— The amendments made by subsections (a) 19 USC 2251 note. and (b) shall take effect on the date of the enactment of this Act and shall apply with respect to investigations initiated under chapter 1 of title II of the Trade Act of 1974 on or after that date. Any petition filed under section 201 of such chapter before such date of enactment, and with respect to which the United States International Trade Commission did not make a finding before such date with respect to serious injury or the threat thereof, may be withdrawn and refiled, without prejudice, by the petitioner under section 202(a) of such chapter (as amended by this section). PART 2— MARKET DISRUPTION SEC. 1411. MARKET DISRUPTION. (a) In General.— Section 406 of the Trade Act of 1974 (19 U.S.C. 2436) is amended as follows— (1) Subsection (b) is amended to read as follows: “(b) With respect to any affirmative determination of the Commission under subsection (a)— “(1) such determination shall be treated as an affirmative determination made under section 201(b) of this Act (as in effect on the day before the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988); and “(2) sections 202 and 203 of this Act (as in effect on the day before the date of the enactment of such Act of 1988), rather than the provisions of chapter 1 of title II of this Act as amended by section 1401 of such Act of 1988, shall apply with respect to the taking of subsequent action, if any, by the President in response to such affirmative determination; except that— “(A) the President may take action under such sections 202 and 203 only with respect to imports from the country or countries involved of tne article with respect to which the affirmative determination was made; and “(B) if such action consists of, or includes, an orderly marketing agreement, such agreement shall be entered into within 60 days after the import relief determination date.”. (2) Subsection (c) is amended by inserting “referred to in subsection (b)” after “sections 202 and 203”. (3) Subsection (e)(2) is amended— (A) by inserting “(A)” after “(2)”; and (B) by inserting at the end thereof the following new subparagraphs: “(B) For purposes of subparagraph (A): “(i) Imports of an article shall be considered to be increasing rapidly if there has been a significant in-crease in such imports (either actual or relative to domestic production) during a recent period of time. “(ii) The term ‘significant cause’ refers to a cause which contributes significantly to the material injury of the domestic industry, but need not be equal to or greater than any other cause. “(C) The Commission, in determining whether market disruption exists, shall consider, among other factors— “(i) the volume of imports of the merchandise which is the subject of the investigation; “(ii) the effect of imports of the merchandise on prices in the United States for like or directly competitive articles; “(iii) the impact of imports of such merchandise on domestic producers of like or directly competitive articles; and “(iv) evidence of disruptive pricing practices, or other efforts to unfairly manage trade patterns.”. (b) Conforming Amendments Required By Amendment of Chapter 1 of Title II of the Trade Act of 1974.— Such section 406 is further amended— (1) by striking out “201(a)(1)” in subsection (a)(1) and subsection (d) and inserting “202(a)”; and (2) by striking out “subsections (a)(2), (b)(3), and (c) of section 201” in subsection (a)(2) and inserting “subsections (a)(3), (b)(4), and (c)(4) of section 202”. (c) Effective Date.— The amendments made by subsections (a) and (b) apply with respect to investigations initiated under section 406(a) of the Trade Act of 1974 on or after the date of the enactment of this Act. PART 3— TRADE ADJUSTMENT ASSISTANCE SEC. 1421. ELIGIBILITY OF WORKERS AND FIRMS FOR TRADE ADJUSTMENT ASSISTANCE. (a) Oil and Natural Gas Industry.— (1) (A) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (i) by striking out “For purposes of paragraph (3), the term contributed importantly means a cause which is important, but not necessarily more important than any other cause.”, (ii) by striking out “The Secretary” and inserting in lieu thereof “(a) The Secretary”, and (iii) by adding at the end thereof the following new subsection: “(b) For purposes of subsection (a)(3)— “(1) The term ‘contributed importantly’ means a cause which is important but not necessarily more important than any other cause. “(2) (A) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas. “(B) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.”. (B) Notwithstanding section 223(b) of the Trade Act of 1974, or 19 USC 2272 note. any other provision of law, any certification made under sub-chapter A of chapter 2 of title II of such Act which— (i) is made with respect to a petition filed before the date that is 90 days after the date of enactment of this Act, and (ii) would not have been made if the amendments made by subparagraph (A) had not been enacted into law, shall apply to any worker whose most recent total or partial separation from the firm, or appropriate subdivision of the firm, described in section 222(a) of such Act occurs after September 30, 1985. (2) Subsection (c) of section 251 of the Trade Act of 1974 (19 U.S.C. 2341(c)) is amended to read as follows: “(c) (1) The Secretary shall certify a firm (including any agricultural firm) as eligible to apply for adjustment assistance under this chapter if the Secretary determines— “(A) that a significant number or proportion of the workers in such firm have become totally or partially separated, or are threatened to become totally or partially separated, “(B) that— “(i) sales or production, or both, of such firm have decreased absolutely, or “(ii) sales or production, or both, of an article that accounted for not less than 25 percent of the total production or sales of the firm during the 12-month period preceding the most recent 12-month period for which data are available have decreased absolutely, and “(C) increases of imports of articles like or directly competitive with articles which are produced by such firm contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production. “(2) For purposes of paragraph (1)(C)— “(A) The term ‘contributed importantly’ means a cause which is important but not necessarily more important than any other cause. “(B) (i) Any firm which engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas. “(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.”. (b) Application to All Industries.— (1) Paragraph (3) of section 222(a) of the Trade Act of 1974 (19 U.S.C. 2272(a)(3)) is amended to read as follows: “(3) increases of imports of articles like or directly competitive with articles— “(A) which are produced by such workers’ firm or appropriate subdivision thereof, or “(B) for which such workers’ firm, or appropriate subdivision thereof, provides essential goods or essential services, contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.”. (2) Subparagraph (C) of section 251(c)(1) of the Trade Act of 1974 (19 U.S.C. 2341(c)(1)(C)) is amended to read as follows: “(C) increases of imports of articles like or directly competitive with articles— “(i) which are produced by such firm, or “(ii) for which such firm provides essential goods or essential services, contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.”. SEC. 1422. NOTICE TO WORKERS OF BENEFITS UNDER TRADE ADJUSTMENT ASSISTANCE PROGRAM. Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended— (1) by striking out “The Secretary” in the first sentence and inserting in lieu thereof “(a) The Secretary”, and (2) by adding at the end thereof the following new subsection: “(b) (1) The Secretary shall provide written notice through the mail of the benefits available under this chapter to each worker whom the Secretary has reason to believe is covered by a certification made under subchapter A of this chapter— “(A) at the time such certification is made, if the worker was partially or totally separated from the adversely affected employment before such certification, or “(B) at the time of the total or partial separation of the worker from the adversely affected employment, if subparagraph (A) does not apply. “(2) The Secretary shall publish notice of the benefits available under this chapter to workers covered by each certification made under subchapter A in newspapers of general circulation in the areas in which such workers reside.”. SEC. 1423. CASH ASSISTANCE FOR WORKERS. (a) Participation in Training Program Required.— (1) Paragraph (5) of section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(a)(5)) is amended to read as follows: “(5) Such worker— “(A) is enrolled in a training program approved by the Secretary under section 236(a), “(B) has, after the date on which the worker became totally separated, or partially separated, from the adversely affected employment, completed a training program approved by the Secretary under section 236(a), or “(C) has received a written statement certified under subsection (c)(1) after the date described in subparagraph (B).”. (2) Subsection (b) of section 231 of the Trade Act of 1974 (19 U.S.C. 2291(b)) is amended to read as follows: “(b) (1) If— “(A) the Secretary determines that— “(i) the adversely affected worker— “(I) has failed to begin participation in the training program the enrollment in which meets the requirement of subsection (a)(5), or “(II) has ceased to participate in such training program before completing such training program, and “(ii) there is no justifiable cause for such failure or cessation, or “(B) the certification made with respect to such worker under subsection (c)(1) is revoked under subsection (c)(2), no trade readjustment allowance may be paid to the adversely affected worker under this part for the week in which such failure, cessation, or revocation occurred, or any succeeding week, until the adversely affected worker begins or resumes participation in a training program approved under section 236(a). “(2) The provisions of subsection (a)(5) and paragraph (1) shall not apply with respect to any week of unemployment which begins— “(A) after the date that is 60 days after the date on which the petition that results in the certification that covers the worker is filed under section 221, and “(B) before the first week following the week in which such certification is made under subchapter (A).”. (3) Subsection (c) of section 231 of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended to read as follows: “(c) (1) (A) If the Secretary finds that it is not feasible or appropriate to approve a training program for a worker under section 236(a), the Secretary shall submit to such worker a written statement certifying such finding. “(B) If a State or State agency has an agreement with the Secretary State and local governments. Contracts. under section 239 and the State or State agency finds that it is not feasible or appropriate to approve a training program for a worker pursuant to the requirements of section 236(a), the State or State agency shall— “(i) submit to such worker a written statement certifying such finding, and “(ii) submit to the Secretary a written statement certifying such finding and the reasons for such finding. “(2) (A) If, after submitting to a worker a written statement certified under paragraph (1)(A), the Secretary finds that it is feasible or appropriate to approve a training program for such worker under section 236(a), the Secretary shall submit to such worker a written statement that revokes the certification made under paragraph (1)(A) with respect to such worker. “(B) If, after submitting to a worker a written statement certified under paragraph (1)(B), a State or State agency finds that it is feasible or appropriate to approve a training program for such worker pursuant to the requirements of section 236(a), the State or State agency shall submit to such worker, and to the Secretary, a written statement that revokes the certification made under paragraph (1)(B) with respect to such worker. “(3) The Secretary shall submit to the Finance Committee of the Reports. Senate and to the Ways and Means Committee of the House of Representatives an annual report on the number of workers who received certifications under paragraph (1) during the preceding year and the number of certifications made under paragraph (1) that were revoked during the preceding year.”. (4) Paragraph (3) of section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)(3)) is amended to read as follows: “(3) will make any certifications required under section 231(c)(2), and”. (b) Weekly Amounts of Readjustment Allowances.— Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) by striking out “, including on-the-job training,” in subsection (b), and (2) by striking out “under section 231(c) or 236(c)” in subsection (c) and inserting in lieu thereof “under section 231(b)”. (c) Limitations.— Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) by striking out “is approved” in subsection (a)(3)(B) and inserting in lieu thereof “begins”, (2) by striking out “engaged in such training and has not been determined under section 236(c) to be failing to make satisfactory progress in the training” in subsection (a)(3) and inserting in lieu thereof “participating in such training”, and (3) by adding at the end thereof the following new subsection: “(f) For purposes of this chapter, a worker shall be treated as participating in training during any week which is part of a break in training that does not exceed 14 days if— “(1) the worker was participating in a training program approved under section 236(a) before the beginning of such break in training, and “(2) the break is provided under such training program.”. (d) Supplemental Wage Allowance Demonstration Projects.— (1) Subchapter C of chapter 2 of title II of the Trade Act of 1974 is amended by inserting after section 245 the following new section: “SEC. 246. SUPPLEMENTAL WAGE ALLOWANCE DEMONSTRATION PROJECTS. “(a) The Secretary shall establish and carry out one or more demonstration projects during fiscal years 1989 and 1990 for the purpose of— “(1) determining the attractiveness of a supplemental wage allowance to various categories of workers eligible for assistance under this chapter, based on the amount and duration of the supplement; “(2) determining the effectiveness of a supplemental wage allowance as an option under this chapter in facilitating the readjustment of adversely affected workers; and “(3) determining whether a supplemental wage allowance should be made an option under the Trade Adjustment Assistance program for all fiscal years. “(b) (1) For purposes of this section, the term ‘supplemental wage allowance’ means a payment that is made to an adversely affected worker who— “(A) accepts full-time employment at an average weekly wage that is less than the average weekly wage of the worker in the adversely affected employment, “(B) prior to such acceptance, is eligible for trade readjustment allowances under part I of subchapter B, and “(C) voluntarily elects to receive such payment in lieu of any trade readjustment allowances that the worker would otherwise be eligible to receive with respect to the period covered by the certification made under subchapter A that applies to such worker. “(2) A supplemental wage allowance shall be provided under any demonstration project established under subsection (a) to a worker described in paragraph (1) for each week during which the worker performs services in the full-time employment referred to in paragraph (1)(A) in an amount that does not exceed the lesser of— “(A) the amount of the trade readjustment allowance that the worker would have been eligible to receive for any week under part 1 of subchapter B if the worker had not accepted the full-time employment and had not made the election described in paragraph (1)(C), or “(B) the excess of— “(i) an amount equal to 80 percent of the average weekly wage of the worker in the adversely affected employment, over “(ii) the average weekly wage in the full-time employment. “(3) (A) Supplemental wage allowances shall not be provided under any demonstration project established under subsection (a) for more than 52 weeks. “(B) The total amount of supplemental wage allowances that may be paid to any worker under any demonstration project established under subsection (a) with respect to the period covered by the certification applicable to such worker shall not exceed an amount that is equal to the excess of— “(i) the amount of the limitation imposed under section 233(a)(1) with respect to such worker for such period, over “(ii) the amount of the trade readjustment allowances paid under part I of subchapter B to such worker for such period. “(c) The Secretary shall provide for an evaluation of demonstration projects conducted under this section to determine at least the following: “(1) the extent to which different age groups of eligible recipients utilize the supplemental wage allowance; “(2) the effect of the amount and duration of the supple-mental wage allowance on the utilization of the allowance; “(3) the extent to which the supplemental wage allowance affects the demand for training and the appropriateness thereof; “(4) the extent to which the supplemental wage allowance facilitates the readjustment of workers who would not otherwise utilize benefits provided under this chapter; “(5) the extent to which the allowance affects the cost of carrying out the provisions of this chapter; and “(6) the effectiveness of the supplemental wage allowance as an option under this chapter in facilitating the readjustment of adversely affected workers. “(d) By no later than the date that is 3 years after the date of Reports. enactment of the Omnibus Trade and Competitiveness Act of 1988, the Secretary shall transmit to the Congress a report that includes— “(1) an evaluation of the projects authorized under this section that is conducted in accordance with subsection (c), and “(2) a recommendation as to whether the supplemental wage allowance should be available on a permanent basis as an option for some or all workers eligible for assistance under this chapter. (2) For purposes of funding the demonstration projects established under section 246(a) of the Trade Act of 1974, as added by paragraph (1) of this subsection— (A) the supplemental wage allowances payable under such projects shall be considered to be trade readjustment allowances payable under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974, and (B) the costs of administering such projects by the States shall be considered to be costs of administering such part I. (3) The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 245 the following new item: “Sec. 246. Supplemental wage allowance demonstration projects.”. SEC 1424. JOB TRAINING FOR WORKERS. (a) In General.— Subsection (a) of section 236 of the Trade Act of 1974 (19 U.S.C. 2296(a)) is amended— (1) by striking out “is available” in paragraph (1)(D) and inserting in lieu thereof “is reasonably available”, (2) by striking out “, and” at the end of subparagraph (D) of paragraph (1), (3) by adding “and” at the end of subparagraph (E) of paragraph (1), (4) by inserting after subparagraph (E) of paragraph (1) the following new subparagraph: “(F) such training is suitable for the worker and available at a reasonable cost,”, (5) by striking out “(to the extent appropriated funds are available)” in the first sentence of paragraph (1), (6) by inserting “(subject to the limitations imposed by this section)” after “costs of such training” in the second sentence of paragraph (1), (7) by inserting “directly or through a voucher system” after “by the Secretary” in the second sentence of paragraph (1), (8) by striking out “and” at the end of subparagraph (C) of paragraph (4), (9) by redesignating subparagraph (D) of paragraph (4) as subparagraph (F) of paragraph (4), (10) by inserting after subparagraph (C) of paragraph (4) the following new subparagraphs: “(D) any program of remedial education, “(E) any training program (other than a training program described in paragraph (7)) for which all, or any portion, of the costs of training the worker are paid— “(i) under any Federal or State program other than this chapter, or “(ii) from any source other than this section, and”, (11) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (12) by inserting after paragraph (1) the following new paragraph: “(2) (A) The total amount of payments that may be made under paragraph (1) for any fiscal year shall not exceed $80,000,000. “(B) If, during any fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved under this section will exceed the amount of the limitation imposed under subparagraph (A), the Secretary shall decide how the portion of such limitation that has not been expended at the time of such estimate is to be apportioned among the States for the remainder of such fiscal year.”, and (13) by adding at the end of subsection (a) the following new paragraphs: “(6) (A) The Secretary is not required under paragraph (1) to pay the costs of any training approved under paragraph (1) to the extent that such costs are paid— “(i) under any Federal or State program other than this chapter, or “(ii) from any source other than this section. “(B) Before approving any training to which subparagraph (A) Contracts. may apply, the Secretary may require that the adversely affected worker enter into an agreement with the Secretary under which the Secretary will not be required to pay under this section the portion of the costs of such training that the worker has reason to believe will be paid under the program, or by the source, described in subparagraph (A) or (B) of paragraph (1). “(7) The Secretary shall not approve a training program if— “(A) all or a portion of the costs of such training program are paid under any nongovernmental plan or program, “(B) the adversely affected worker has a right to obtain training or funds for training under such plan or program, and “(C) such plan or program requires the worker to reimburse the plan or program from funds provided under this chapter, or from wages paid under such training program, for any portion of the costs of such training program paid under the plan or program. “(8) The Secretary may approve training for any adversely affected worker who is a member of a group certified under subchapter A at any time after the date on which the group is certified under subchapter A, without regard to whether such worker has exhausted all rights to any unemployment insurance to which the worker is entitled. “(9) The Secretary shall prescribe regulations which set forth Regulations. the criteria under each of the subparagraphs of paragraph (1) that will be used as the basis for making determinations under paragraph (1).”. (b) Delayed Increase in Limitation.— Paragraph (2) of section 236(a) of the Trade Act of 1974, as added by subsection (a)(12) of this section, is amended by striking out “$80,000,000” in subparagraph (A) and inserting in lieu thereof “$120,000,000”. (c) On-the-Job Training.— Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) by striking out that portion of subsection (d) that precedes paragraph (1) and inserting in lieu thereof the following: “(a) The Secretary shall pay the costs of any on-the-job training of an adversely affected worker that is approved under subsection (a)(1) in equal monthly installments, but the Secretary may pay such costs, notwithstanding any other provision of this section, only if—”, (2) by striking out subsection (c), and (3) by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. (d) Agreements With the States.— (1) (A) Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended by striking out “cooperating State agencies” and inserting in lieu thereof “the States”. (B) Subsection (e) of section 239 of the Trade Act of 1974 (19 U.S.C. 2311(e)) is amended to read as follows: “(e) Any agreement entered into under this section shall provide for the coordination of the administration of the provisions for employment services, training, and supplemental assistance under sections 235 and 236 of this Act and under title III of the Job Training Partnership Act upon such terms and conditions as are established by the Secretary in consultation with the States and set forth in such agreement. Any agency of the State jointly administering such provisions under such agreement shall be considered to be a cooperating State agency for purposes of this chapter.”. (2) Subsection (f) of section 239 of the Trade Act of 1974 (19 U.S.C. 2311(f)) is amended to read as follows: “(f) Each cooperating State agency shall, in carrying out subsection (a)(2)— “(1) advise each worker who applies for unemployment insurance of the benefits under this chapter and the procedures and deadlines for applying for such benefits, “(2) facilitate the early filing of petitions under section 221 for any workers that the agency considers are likely to be eligible for benefits under this chapter, “(3) advise each adversely affected worker to apply for training under section 236(a) before, or at the same time, the worker applies for trade readjustment allowances under part I of sub-chapter B, and “(4) as soon as practicable, interview the adversely affected worker regarding suitable training opportunities available to the worker under section 236 and review such opportunities with the worker.”. SEC. 1425. LIMITATION ON PERIOD IN WHICH TRADE READJUSTMENT ALLOWANCES MAY BE PAID. (a) In General.— Paragraph (2) of section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)(2)) is amended to read as follows: “(2) A trade readjustment allowance shall not be paid for any week occurring after the close of the 104-week period that begins with the first week following the week in which the adversely affected worker was most recently totally separated from adversely affected employment— “(A) within the period which is described in section 231(a)(1), and “(B) with respect to which the worker meets the requirements of section 231(a)(2).”. (b) Waiver of Certain Time Limitations.— (1) The provisions of subsections (a)(2) and (b) of section 233 of the Trade Act of 1974 shall not apply with respect to any worker who became totally separated from adversely affected employment (within the meaning of section 247 of such Act) during the period that began on August 13, 1981, and ended on April 7, 1986. (2) (A) Any worker who is otherwise eligible for payment of a trade readjustment allowance under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 by reason of paragraph (1) of this subsection may receive payments of such allowance only if such worker— (i) is enrolled in a training program approved by the Secretary under section 236(a) of such Act, and (ii) has been unemployed continuously since the date on which the worker became totally separated from the adversely affected employment, not taking into account seasonal employment, odd jobs, or part-time, temporary employment. (B) If the Secretary of Labor determines that— (i) a worker— (I) has failed to begin participation in the training program the enrollment in which meets the requirement of subparagraph (A), or (II) has ceased to participate in such training program before completing such training program, and (ii) there is no justifiable cause for such failure or cessation, no trade readjustment allowance may be paid to the worker under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 for the week in which such failure or cessation occurred, or any succeeding week, until the worker begins or resumes participation in a training program approved under section 236(a) of such Act. SEC 1426. AUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) Extension of Sunset.— Subsection (b) of section 285 of the Trade Act of 1974 (19 U.S.C. 2271, preceding note) is amended to read as follows: “(b) No assistance, vouchers, allowances, or other payments may be provided under chapter 2, no technical assistance may be provided under chapter 3, and no duty shall be imposed under section 287, after September 30, 1993.”. (b) Authorization of Appropriations.— (1) Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended by striking out “1986, 1987, 1988, 1989, 1990, and 1991” and inserting in lieu thereof “1988, 1989, 1990, 1991, 1992, and 1993”. (2) Subsection (b) of section 256 of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking out “1986, 1987, 1988, 1989, 1990, and 1991” and inserting in lieu thereof “1988, 1989, 1990, 1991, 1992, and 1993”. (c) Special Rule.— In addition to amounts appropriated for payments under sections 236, 237, and 238 of the Trade Act of 1974 (19 U.S.C. 2296) for fiscal year 1988, such amounts as may be necessary for payments under such sections— (1) after the date of enactment of this Act, and (2) before October 1, 1988, are hereby appropriated and shall be charged to the appropriation for payments under such sections for fiscal year 1989. SEC. 1427. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. (a) In General.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391, et seq.) is amended by inserting after section 285 the following new section: “SEC. 286. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. “(a) There is hereby established within the Treasury of the United States a trust fund to be known as the Trade Adjustment Assistance Trust Fund (hereinafter in this section referred to as the ‘Trust Fund’), consisting of such amounts as may be transferred or credited to the Trust Fund as provided in this section or appropriated to the Trust Fund under subsection (e). “(b) (1) The Secretary of the Treasury shall transfer to the Trust Fund out of the general fund of the Treasury of the United States amounts determined by the Secretary of the Treasury to be equivalent to the amounts received into such general fund that are attributable to the duty imposed by section 287. “(2) The amounts which are required to be transferred under paragraph (1) shall be transferred at least quarterly from the general fund of the Treasury of the United States to the Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in paragraph (1) that are received into the Treasury. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of, or less than, the amounts required to be transferred. “(c) (1) The Secretary of the Treasury shall be the trustee of the Trust Fund, and shall submit an annual report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the financial condition and the results of the operations of the Trust Fund during the fiscal year preceding the fiscal year in which such report is submitted and on the expected condition and operations of the Trust Fund during the fiscal year in which such report is submitted and the 5 fiscal years succeeding such fiscal year. Such report shall be printed as a House document of the session of the Congress to which the report is made. “(2) (A) The Secretary of the Treasury shall invest such portion of the Trust Fund as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States. For such purpose, such obligations may be acquired— “(i) on original issue at the issue price, or “(ii) by purchase of outstanding obligations at the market price. “(B) Any obligation acquired by the Trust Fund may be sold by the Secretary of the Treasury at the market price. “(C) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund. “(d) (1) Amounts in the Trust Fund shall be available— “(A) for the payment of drawbacks and refunds of the duty imposed by section 287 that are allowable under any other provision of Federal law, “(B) as provided in appropriation Acts— “(i) for expenditures that are required to carry out the provisions of chapters 2 and 3, including administrative costs, and “(ii) for payments required under subsection (e)(2). “(2) None of the amounts in the Trust Fund shall be available for the payment of loans guaranteed under chapter 3 or for any other expenses relating to financial assistance provided under chapter 3. “(3) (A) If the total amount of funds expended in any fiscal year to carry out chapters 2 and 3 (including administrative costs) exceeds an amount equal to 0.15 percent of the total value of all articles upon which a duty was imposed by section 287 during the preceding 1-year period, the Secretary of Labor and the Secretary of Commerce (in consultation with the Secretary of the Treasury) shall, notwithstanding any provision of chapter 2 or 3, make a pro rata reduction in— “(i) the amounts of the trade readjustment allowances that are paid under part I of subchapter B of chapter 2, and “(ii) the assistance provided under chapter 3, to ensure (based on estimates of the amount of funds that will be necessary to carry out chapters 2 and 3, and of the amount of revenue that will be raised by section 287, during the remainder of such fiscal year and for the fiscal year succeeding such fiscal year) that all workers and firms eligible for assistance under chapter 2 or 3 receive some assistance under chapter 2 or 3 and that the expenditures made in providing such assistance during the remainder of such fiscal year and the fiscal year succeeding such fiscal year do not exceed the amount of funds available in the Trust Fund to pay for such expenditures. “(B) No reduction may be made under this paragraph in the amount of any trade readjustment allowance payable under part I of subchapter B of chapter 2 to any worker who received such trade readjustment allowance under such part for the week preceding the first week for which such reduction is otherwise being made under this paragraph. “(C) If a pro rata reduction made under subparagraph (A) is in effect at the close of a fiscal year, the Secretary of Labor and the Secretary of Commerce, in consultation with the Secretary of the Treasury, may adjust or modify such reduction at the beginning of the fiscal year succeeding such fiscal year, based on estimates of the amount of funds that will be necessary to carry out chapters 2 and 3, and of the amount of revenue that will be raised by section 287, during that succeeding fiscal year. “(D) Any pro rata reduction made under subparagraph (A), and any pro rata reduction adjusted or modified under subparagraph (C), shall cease to apply after the week in which— “(i) a 1-year period ends during which the total amount of funds that would have been expended to carry out chapters 2 and 3, including administrative costs, if such reduction were not in effect did not exceed an amount equal to 0.15 percent of the total value of all articles upon which a duty was imposed during such 1-year period, or “(ii) the Secretary of Labor and the Secretary of Commerce, in consultation with the Secretary of the Treasury, determine that the amount of funds available in the Trust Fund are sufficient to carry out chapters 2 and 3 without such reduction. “(e) (1) (A) There are authorized to be appropriated to the Trust Appropriation authorization. Fund, as repayable advances, such sums as may from time to time be necessary to make the expenditures described in subsection (d)(1)(B). “(B) Any advance appropriated to the Trust Fund under the authority of subparagraph (A) may be paid to the Trust Fund only to the extent that the total amount of advances paid during the fiscal year to the Trust Fund from any appropriation authorized under subparagraph (A) that are outstanding after such advance is paid to the Trust Fund does not exceed the lesser of— “(i) the excess of— “(I) the total amount of funds that the Secretary of the Treasury (in consultation with the Secretary of Labor and the Secretary of Commerce) estimates will be necessary for the payments and expenditures described in subparagraphs (A) and (B) of subsection (d)(1) for such fiscal year, over “(II) the total amount of funds that the Secretary of the Treasury estimates will be available in the Trust Fund during the fiscal year (determined without regard to any advances made under this subsection during such fiscal year), or “(ii) the excess of— “(I) an amount equal to 0.15 percent of the total value of all articles upon which the Secretary of the Treasury estimates a duty will be imposed by section 287 during such fiscal year, over “(II) the amount described in clause (i)(II). “(2) Advances made to the Trust Fund from appropriations authorized under paragraph (1)(A) shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury of the United States when the Secretary of the Treasury determines that sufficient funds are available in the Trust Fund for such purposes. “(3) Interest on advances made from appropriations authorized under paragraph (1)(A) shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding.”. (b) Conforming Amendment.— The table of contents for the Trade Act of 1974 is amended by inserting, after the item relating to section 285, the following new items: “Sec. 286. Trade Adjustment Trust Fund. “Sec. 287. Imposition of additional fee.”. SEC. 1428. IMPOSITION OF SMALL UNIFORM FEE ON ALL IMPORTS. (a) Negotiations.— (1) The President shall— (A) undertake negotiations necessary to achieve changes in the General Agreement on Tariffs and Trade that would allow any country to impose a small uniform fee of not more than 0.15 percent on all imports to such country for the purpose of using the revenue from such fee to fund programs which directly assist adjustment to import competition, and (B) undertake negotiations with any foreign country that has entered into a free trade agreement with the United States under subtitle A or under section 102 of the Trade Act of 1974 to obtain the consent of such country to the imposition of such a fee by the United States. (2) In the report that is submitted under section 163 of the Trade Act of 1974 for 1989 and 1990, the President shall include a statement on the progress of negotiations conducted under paragraph (1). (3) (A) On the first day after the date of enactment of this Act Federal Register, publication. on which the General Agreement on Tariffs and Trade allows any country to impose a fee described in paragraph (1), the President shall submit to the Congress, and publish in the Federal Register, a written statement certifying such allowance. (B) On the first day after the date of enactment of this Act on which any foreign country described in paragraph (1)(B) consents to the imposition of such a fee by the United States, the President shall submit to the Congress, and publish in the Federal Register, a written statement certifying such consent. (4) If— (A) the President does not submit to the Congress the written statement described in paragraph (3)(A) before the date that is 2 years after the date of enactment of this Act, and (B) the President determines on such date that the fee imposed by the amendment made by subsection (b) is not in the national economic interest, the President shall submit to the Congress, and publish in Federal Register, publication. the Federal Register, written notice of such determination on such date. (5) (A) Any disapproval resolution that is introduced in the Senate or House of Representatives within the 90-day period beginning on the date that is 2 years after the date of enactment of this Act shall, for purposes of section 152 of the Trade Act of 1974 (19 U.S.C. 2192), be treated as a joint resolution described in section 152(a)(1)(A) of such Act. (B) For purposes of this part, the term “disapproval resolution” means a joint resolution of the two Houses of the Congress, the matter after the resolving clause of which is as follows: “That the Congress disapproves of the determination made by the President under section 1428(a)(4)(A) of the Omnibus Trade and Competitiveness Act of 1988.”. (b) Imposition of Fee.— Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391, et seq.), as amended by the preceding section of this Act, is further amended by adding at the end thereof the following new section: “SEC. 287. IMPOSITION OF ADDITIONAL FEE. “(a) In addition to any other fee imposed by law, there is hereby imposed a fee on all articles entered, or withdrawn from warehouse, for consumption in the customs territory of the United States during any fiscal year. “(b) (1) The rate of the fee imposed by subsection (a) shall be a uniform ad valorem rate proclaimed by the President that is equal to the lesser of— “(A) 0.15 percent, or “(B) the percentage that is sufficient to provide the funding necessary to— “(i) carry out the provisions of chapters 2 and 3, and “(ii) repay any advances made under section 286(e). “(2) The President shall issue a proclamation setting forth the President of U.S. rate of the fee imposed by subsection (a) by no later than the date that is 15 days before the first date on which a fee is imposed under subsection (a). “(3) (A) For each fiscal year succeeding the first fiscal year in President of U.S. which a fee is imposed under subsection (a), the President shall issue a proclamation adjusting the rate of the fee imposed by subsection (a) during such fiscal year to the ad valorem rate that meets the requirements of paragraph (1) for such fiscal year. “(B) Any proclamation issued under subparagraph (A) for a fiscal year shall be issued at least 30 days before the beginning of such fiscal year. “(c) (1) Except as otherwise provided in this subsection, duty-free treatment provided with respect to any article under any other provision of law shall not prevent the imposition of a fee with respect to such article by subsection (a). “(2) No fee shall be imposed by subsection (a) with respect to— “(A) any article (other than an article provided for in item 870.40, 870.45, 870.50, 870.55, or 870.60 of the Tariff Schedules of the United States) that is treated as duty-free under schedule 8 of the Tariff Schedules of the United States, or “(B) any article which has a value of less than $1,000.”. SEC. 1429. STUDY OF CERTIFICATION METHODS. (a) In General.— The Secretary of Labor, in consultation with the Secretary of Commerce, shall conduct a study of the methods (including, but not limited to, industry-wide certification) that could be used to expedite the certification of workers under subchapter A of chapter 2 of title II of the Trade Act of 1974. (b) Report.— By no later than the date that is 6 months after the date of enactment of this Act, the Secretary of Labor shall submit to the Congress a report on the study conducted under subsection (a). The report shall include the recommendations of the Secretary of Labor regarding the methods that are the subject of the study conducted under subsection (a). SEC. 1430. EFFECTIVE DATES. (a) In General.— Except as otherwise provided by this section, the amendments made by this part shall take effect on the date of enactment of this Act. (b) Additional Fee.— (1) Except as otherwise provided in this subsection, the amendment made by section 1428(b) shall apply (if at all) to any article entered, or withdrawn from warehouse for consumption, after the date that is 30 days after the earlier of— (A) the date on which the President submits to the Congress the written statement described in section 1428(a)(3)(A), (B) the date that is 2 years after the date of enactment of this Act, or (C) the date of the enactment of a disapproval resolution that passes both Houses of the Congress within the 90-day period beginning on the date that is 2 years after the date of enactment of this Act. (2) If the President determines on the date that is 2 years after the date of enactment of this Act that the fee imposed by the amendment made by section 1428(b) is not in the national economic interest, subparagraph (B) of paragraph (1) shall not be taken into account in applying the provisions of paragraph (1). (3) The amendment made by section 1428(b) shall apply (if at all) to the products of any foreign country described in section 1428(a)(1)(B) that are entered, or withdrawn from warehouse for consumption, after the later of— (A) the first date on which the fee imposed by such amendment applies with respect to products of foreign countries that are not described in section 1428(a)(1)(B), or (B) the date on which the President submits to the Congress the written statement described in section 1428(a)(3)(B) certifying the consent of such foreign country to the imposition of the fee. (c) Trust Fund.— The amendments made by section 1427 shall take effect on the first date on which the amendment made by section 1428(b) applies with respect to any articles. (d) Eligibility of Workers and Firms.— The amendments made by sections 1421(b) and 1424(b) shall take effect on the date that is 1 year after the first date on which the amendment made by section 1428(b) applies with respect to any articles. (e) Notification Requirements.— The amendments made by section 1422 shall take effect on the date that is 30 days after the date of enactment of this Act. (f) Training Requirement.— The amendments made by subsections (a), (b)(2), and (c)(2) of section 1423 and by paragraphs (2) and (3) of section 1424(c) shall take effect on the date that is 90 days after the date of enactment of this Act. (g) Limitation on Period for Which Trade Readjustment Allowances May Be Made.— The amendment made by section 1425(a) shall not apply to with respect to any total separation of a worker from adversely affected employment (within the meaning of section 247 of such Act) that occurs before the date of enactment of this Act if the application of such amendment with respect to such total separation would reduce the period for which such worker would (but for such amendment) be allowed to receive trade readjustment allowances under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974. Subtitle E— National Security SEC. 1501. IMPORTS THAT THREATEN NATIONAL SECURITY. (a) In General.— Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862) is amended— (1) by striking out “subsection (b)” each place it appears in subsection (e) and inserting in lieu thereof “subsection (c)”, (2) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively, and (3) by striking out subsection (b) and inserting in lieu thereof the following new subsections: “(b) (1) (A) Upon request of the head of any department or agency, upon application of an interested party, or upon his own motion, the Secretary of Commerce (hereafter in this section referred to as the ‘Secretary’) shall immediately initiate an appropriate investigation to determine the effects on the national security of imports of the article which is the subject of such request, application, or motion. “(B) The Secretary shall immediately provide notice to the Secretary of Defense of any investigation initiated under this section. “(2) (A) In the course of any investigation conducted under this subsection, the Secretary shall— “(i) consult with the Secretary of Defense regarding the methodological and policy questions raised in any investigation initiated under paragraph (1), “(ii) seek information and advice from, and consult with, appropriate officers of the United States, and “(iii) if it is appropriate and after reasonable notice, hold public hearings or otherwise afford interested parties an opportunity to present information and advice relevant to such investigation. “(B) Upon the request of the Secretary, the Secretary of Defense shall provide the Secretary an assessment of the defense requirements of any article that is the subject of an investigation conducted under this section. “(3) (A) By no later than the date that is 270 days after the date on which an investigation is initiated under paragraph (1) with respect to any article, the Secretary shall submit to the President a report on the findings of such investigation with respect to the effect of the importation of such article in such quantities or under such circumstances upon the national security and, based on such findings, the recommendations of the Secretary for action or inaction under this section. If the Secretary finds that such article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the Secretary shall so advise the President in such report. “(B) Any portion of the report submitted by the Secretary under subparagraph (A) which does not contain classified information or proprietary information shall be published in the Federal Register. “(4) The Secretary shall prescribe such procedural regulations as may be necessary to carry out the provisions of this subsection. “(c) (1) (A) Within 90 days after receiving a report submitted under subsection (b)(3)(A) in which the Secretary finds that an article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the President shall— “(i) determine whether the President concurs with the finding of the Secretary, and “(ii) if the President concurs, determine the nature and duration of the action that, in the judgment of the President, must be taken to adjust the imports of the article and its derivatives so that such imports will not threaten to impair the national security. “(B) If the President determines under subparagraph (A) to take action to adjust imports of an article and its derivatives, the President shall implement that action by no later than the date that is 15 days after the day on which the President determines to take action under subparagraph (A). “(2) By no later than the date that is 30 days after the date on which the President makes any determinations under paragraph (1), the President shall submit to the Congress a written statement of the reasons why the President has decided to take action, or refused to take action, under paragraph (1). Such statement shall be included in the report published under subsection (e). “(3) (A) If— “(i) the action taken by the President under paragraph (1) is the negotiation of an agreement which limits or restricts the importation into, or the exportation to, the United States of the article that threatens to impair national security, and “(ii) either— “(I) no such agreement is entered into before the date that is 180 days after the date on which the President makes the determination under paragraph (1)(A) to take such action, or “(II) such an agreement that has been entered into is not being carried out or is ineffective in eliminating the threat to the national security posed by imports of such article, the President shall take such other actions as the President deems necessary to adjust the imports of such article so that such imports will not threaten to impair the national security. The President Federal Register, publication. shall publish in the Federal Register notice of any additional actions being taken under this section by reason of this subparagraph “(B) If— “(i) clauses (i) and (ii) of subparagraph (A) apply, and “(ii) the President determines not to take any additional actions under this subsection, the President shall publish in the Federal Register such determination and the reasons on which such determination is based.”. (b) Reports.— (1) Subsection (e) of section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862), as redesignated by subsection (a)(2), is amended to read as follows: “(d) (1) Upon the disposition of each request, application, or motion Federal Register, publication. President of U.S. under subsection (b), the Secretary shall submit to the Congress, and publish in the Federal Register, a report on such disposition. “(2) The President shall submit to the Congress an annual report on the operation of the provisions of this section.”. (2) Section 127 (c) of the Trade Act of 1974 (19 U.S.C. 1863) is repealed. (c) Enforcement of Machine Tool Import Arrangements.— (1) The Secretary of Commerce is authorized to request the Secretary of the Treasury to carry out such actions as may be necessary or appropriate to ensure the attainment of the objectives of the machine tool decision of the President on May 20, 1986, and to enforce any quantitative limitation, restriction, or other terms contained in related bilateral arrangements. Such actions may include, but are not limited to, requirements that valid export licenses or other documentation issued by a foreign government be presented as a condition for the entry into the United States of assembled and unassembled machine tool products. (2) For purposes of this subsection, the term “related bilateral arrangement’ means any arrangement, agreement, or under-standing entered into or undertaken, or previously entered into or undertaken, by the United States and any foreign country or customs union containing such quantitative limitations, restrictions, or other terms relating to the importation into, or exportation to, the United States of categories of assembled and unassembled machine tool products as may be necessary to implement such machine tool decision of May 20, 1986. (d) Application of Amendments.— (1) Except as otherwise provided under this subsection, the amendments made by this section shall apply with respect to investigations initiated under section 232(b) of the Trade Expansion Act of 1962 on or after the date of enactment of this Act. (2) The provisions of subsection (c) of section 232 of the Trade Expansion Act of 1962, as amended by this section, shall apply with respect to any report submitted by the Secretary of Commerce to the President under section 232(b) of such Act after the date of enactment of this Act. (3) By no later than the date that is 90 days after the date of enactment of this Act, the President shall make the determinations described in section 232(c)(1)(A) of the Trade Expansion Act of 1962, as amended by this section, with respect to any report— (A) which was submitted by the Secretary of Commerce to the President under section 232(b) of such Act before the date of enactment of this Act, and (B) with respect to which no action has been taken by the President before the date of enactment of this Act. Subtitle F— Trade Agencies; Advice, Consultation, and Reporting Regarding Trade Matters PART 1— FUNCTIONS AND ORGANIZATION OF TRADE AGENCIES Subpart A— Office of the United States Trade Representative SEC. 1601. FUNCTIONS. (a) In General.— Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended— (1) by amending paragraph (1) to read as follows: “(c) (1) The United States Trade Representative shall— “(A) have primary responsibility for developing, and for coordinating the implementation of, United States international trade policy, including commodity matters, and, to the extent they are related to international trade policy, direct investment matters; “(B) serve as the principal advisor to the President on international trade policy and shall advise the President on the impact of other policies of the United States Government on international trade; “(C) have lead responsibility for the conduct of, and shall be the chief representative of the United States for, international trade negotiations, including commodity and direct investment negotiations, in which the United States participates; “(D) issue and coordinate policy guidance to departments and agencies on basic issues of policy and interpretation arising in the exercise of international trade functions, to the extent necessary to assure the coordination of international trade policy and consistent with any other law; “(E) act as the principal spokesman of the President on international trade; “(F) report directly to the President and the Congress regarding, and be responsible to the President and the Congress for the administration of, trade agreements programs; “(G) advise the President and Congress with respect to non-tariff barriers to international trade, international commodity agreements, and other matters which are related to the trade agreements programs; “(H) be responsible for making reports to Congress with respect to matters referred to in subparagraphs (C) and (F); “(I) be chairman of the interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962, and shall consult with and be advised by such organization in the performance of his functions; and “(J) in addition to those functions that are delegated to the United States Trade Representative as of the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988, be responsible for such other functions as the President may direct.”; (2) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (3) by inserting after paragraph (1) the following: “(2) It is the sense of Congress that the United States Trade Representative should— “(A) be the senior representative on any body that the President may establish for the purpose of providing to the President advice on overall economic policies in which international trade matters predominate; and “(B) be included as a participant in all economic summit and other international meetings at which international trade is a major topic.”. (b) Unfair Trade Practices.— Such section 141 is further 19 USC 2171. amended— (1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and (2) by inserting after subsection (c) the following new subsection: “(d) (1) In carrying out subsection (c) with respect to unfair trade practices, the United States Trade Representative shall— “(A) coordinate the application of interagency resources to specific unfair trade practice cases; “(B) identify, and refer to the appropriate Federal department or agency for consideration with respect to action, each act, policy, or practice referred to in the report required under section 181(b), or otherwise known to the United States Trade Representative on the basis of other available information, that may be an unfair trade practice that either— “(i) is considered to be inconsistent with the provisions of any trade agreement and has a significant adverse impact on United States commerce, or “(ii) has a significant adverse impact on domestic firms or industries that are either too small or financially weak to initiate proceedings under the trade laws; “(C) identify practices having a significant adverse impact on United States commerce that the attainment of United States negotiating objectives would eliminate; and “(D) identify, on a biennial basis, those United States Government policies and practices that, if engaged in by a foreign government, might constitute unfair trade practices under United States law. “(2) For purposes of carrying out paragraph (1), the United States Trade Representative shall be assisted by an interagency unfair trade practices advisory committee composed of the Trade Representative, who shall chair the committee, and senior representatives of the following agencies, appointed by the respective heads of those agencies: “(A) The Bureau of Economics and Business Affairs of the Department of State. “(B) The United States and Foreign Commercial Services of the Department of Commerce. “(C) The International Trade Administration (other than the United States and Foreign Commercial Service) of the Department of Commerce. “(D) The Foreign Agricultural Service of the Department of Agriculture. The United States Trade Representative may also request the advice of the United States International Trade Commission regarding the carrying out of paragraph (1). “(3) For purposes of this subsection, the term ‘unfair trade practice’ means any act, policy, or practice that— “(A) may be a subsidy with respect to which countervailing duties may be imposed under subtitle A of title VII; “(B) may result in the sale or likely sale of foreign merchandise with respect to which antidumping duties may be imposed under subtitle B of title VII; “(C) may be either an unfair method of competition, or an unfair act in the importation of articles into the United States, that is unlawful under section 337; or “(D) may be an act, policy, or practice of a kind with respect to which action may be taken under title HI of the Trade Act of 1974.”. Subpart B— United States International Trade Commission SEC 1611. SERVICE ON COMMISSION FOR PURPOSES OF DETERMINING ELIGIBILITY FOR DESIGNATION AS CHAIRMAN. Section 330(c)(A)(i) of the Tariff Act of 1930 (19 U.S.C. 1330(c)(A)(i)) is amended by striking out “most recently appointed to” and inserting “with the shortest period of service on”. SEC. 1612. TREATMENT OF COMMISSION UNDER PAPERWORK REDUCTION ACT. Section 330 of the Tariff Act of 1930 (19 U.S.C. 1330) is amended by adding at the end thereof the following new subsection: “(f) The Commission shall be considered to be an independent regulatory agency for purposes of chapter 35 of title 44, United States Code.’. SEC 1613. TREATMENT OF CONFIDENTIAL INFORMATION BY COMMISSION. The first sentence of section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) is amended by striking out “, and shall report to Congress” and inserting “. However, the Commission may not release information which the Commission considers to be confidential business information unless the party submitting the confidential business information had notice, at the time of submission, that such information would be released by the Commission, or such party subsequently consents to the release of the information. The Reports. Commission shall report to Congress.”. SEC. 1614. TRADE REMEDY ASSISTANCE OFFICE. Section 339 of the Tariff Act of 1930 (19 U.S.C. 1339) is amended— (1) by amending subsection (a)— (A) by striking out “a Trade” and inserting “a separate office to be known as the Trade”, and (B) by striking out “, upon request, concerning—” and inserting “upon request and shall, to the extent feasible, provide assistance and advice to interested parties concerning” and (2) by amending subsection (b) to read as follows: “(b) The Trade Remedy Assistance Office, in coordination with each agency responsible for administering a trade law, shall provide technical and legal assistance and advice to eligible small businesses to enable them— “(1) to prepare and file petitions and applications (other than those which, in the opinion of the Office, are frivolous); and “(2) to seek to obtain the remedies and benefits available under the trade laws, including any administrative review or administrative appeal thereunder.”. Subpart C— Interagency Trade Organization SEC. 1621. FUNCTIONS AND ORGANIZATION. (a) In General.— Section 242 of the Trade Expansion Act of 1962 (19 U.S.C. 1872) is amended as follows: (1) Subsection (a) is amended to read as follows: “(a) (1) The President shall establish an interagency organization. President of U.S. “(2) The functions of the organization are— “(A) to assist, and make recommendations to, the President in carrying out the functions vested in him by the trade laws and to advise the United States Trade Representative (hereinafter in this section referred to as the ‘Trade Representative’) in carrying out the functions set forth in section 141 of the Trade Act of 1974; “(B) to assist the President, and advise the Trade Representative, with respect to the development and implementation of the international trade policy objectives of the United States; and “(C) to advise the President and the Trade Representative with respect to the relationship between the international trade policy objectives of the United States and other major policy areas which may significantly affect the overall international trade policy and trade competitiveness of the United States. “(3) The interagency organization shall be composed of the following: “(A) The Trade Representative, who shall be chairperson. “(B) The Secretary of Commerce. “(C) The Secretary of State. “(D) The Secretary of the Treasury. “(E) The Secretary of Agriculture. “(F) The Secretary of Labor. The Trade Representative may invite representatives from other agencies, as appropriate, to attend particular meetings if subject matters of specific functional interest to such agencies are under consideration. It shall meet at such times and with respect to such matters as the President or the Chairman shall direct.”. (2) Subsection (b) is amended by adding at the end thereof the following: “In carrying out its functions under this subsection, the organization shall take into account the advice of the congressional advisers and private sector advisory committees, as well as that of any committee or other body established to advise the department, agency, or office which a member of the organization heads.”. (b) Sense of Congress.— It is the sense of Congress that the interagency organization established under subsection (a) should be the principal interagency forum within the executive branch on international trade policy matters. PART 2— ADVICE AND CONSULTATION REGARDING TRADE POLICY, NEGOTIATIONS, AND AGREEMENTS SEC. 1631. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC SECTORS RELATING TO TRADE POLICY AND AGREEMENTS. Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended to read as follows: ‘SEC. 135. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC SECTORS. “(a) In General.— “(1) The President shall seek information and advice from representative elements of the private sector and the non-Federal governmental sector with respect to— “(A) negotiating objectives and bargaining positions before entering into a trade agreement under this title or section 1102 of the Omnibus Trade and Competitiveness Act of 1988; “(B) the operation of any trade agreement once entered into; and “(C) other matters arising in connection with the development, implementation, and administration of the trade policy of the United States, including those matters referred to in Reorganization Plan Number 3 of 1979 and Executive Order Numbered 12188, and the priorities for actions thereunder. To the maximum extent feasible, such information and advice on negotiating objectives shall be sought and considered before the commencement of negotiations. “(2) The President shall consult with representative elements of the private sector and the non-Federal governmental sector on the overall current trade policy of the United States. The consultations shall include, but are not limited to, the following elements of such policy: “(A) The principal multilateral and bilateral trade negotiating objectives and the progress being made toward their achievement. “(B) The implementation, operation, and effectiveness of recently concluded multilateral and bilateral trade agreements and resolution of trade disputes. “(C) The actions taken under the trade laws of the United States and the effectiveness of such actions in achieving trade policy objectives. “(D) Important developments in other areas of trade for which there must be developed a proper policy response. “(3) The President shall take the advice received through consultation under paragraph (2) into account in determining the importance which should be placed on each major objective and negotiating position that should be adopted in order to achieve the overall trade policy of the United States. “(b) Advisory Committee for Trade Policy and Negotiations.— “(1) The President shall establish an Advisory Committee for Trade Policy and Negotiations to provide overall policy advice on matters referred to in subsection (a). The committee shall be composed of not more than 45 individuals and shall include representatives of non-Federal governments, labor, industry, agriculture, small business, service industries, retailers, and consumer interests. The committee shall be broadly representative of the key sectors and groups of the economy, particularly with respect to those sectors and groups which are affected by trade. Members of the committee shall be recommended by the United States Trade Representative and appointed by the President for a term of 2 years. An individual may be reappointed to committee for any number of terms. Appointments to the Committee shall be made without regard to political affiliation. “(2) The committee shall meet as needed at the call of the United States Trade Representative or at the call of two-thirds of the members of the committee. The chairman of the commit-tee shall be elected by the committee from among its members. “(3) The United States Trade Representative shall make available to the committee such staff, information, personnel, and administrative services and assistance as it may reasonably require to carry out its activities. “(c) General Policy, Sectoral, or Functional Advisory Committees.— “(1) The President may establish individual general policy advisory committees for industry, labor, agriculture, services, investment, defense, and other interests, as appropriate, to provide general policy advice on matters referred to in subsection (a). Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, service, investment, defense, and other interests, respectively, including small business interests, and shall be organized by the United States Trade Representative and the Secretaries of Commerce, Defense, Labor, Agriculture, the Treasury, or other executive departments, as appropriate. The members of such committees shall be appointed by the United States Trade Representative in consultation with such Secretaries. “(2) The President shall establish such sectoral or functional President of U.S. advisory committees as may be appropriate. Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, or service interests (including small business interests) in the sector or functional areas concerned. In organizing such committees, the United States Trade Representative and the Secretaries of Commerce, Labor, Agriculture, the Treasury, or other executive departments, as appropriate, shall— “(A) consult with interested private organizations; and “(B) take into account such factors as— “(i) patterns of actual and potential competition be-tween United States industry and agriculture and foreign enterprise in international trade, “(ii) the character of the nontariff barriers and other distortions affecting such competition, “(iii) the necessity for reasonable limits on the number of such advisory committees, “(iv) the necessity that each committee be reasonably limited in size, and “(v) in the case of each sectoral committee, that the product lines covered by each committee be reasonably related. “(3) The President— “(A) may, if necessary, establish policy advisory commit-tees representing non-Federal governmental interests to provide policy advice— “(i) on matters referred to in subsection (a), and “(ii) with respect to implementation of trade agreements, and “(B) shall include as members of committees established under subparagraph (A) representatives of non-Federal governmental interests if he finds such inclusion appropriate after consultation by the United States Trade Representative with such representatives. “(4) Appointments to each committee established under paragraph (1), (2), or (3) shall be made without regard to political affiliation. “(d) Policy, Technical, and Other Advice and Information.— Committees established under subsection (c) shall meet at the call of the United States Trade Representative and the Secretaries of Agriculture, Commerce, Labor, Defense, or other executive departments, as appropriate, to provide policy advice, technical advice and information, and advice on other factors relevant to the matters referred to in subsection (a). “(e) Meeting of Advisory Committees at Conclusion of Negotiations.— “(1) The Advisory Committee for Trade Policy and Negotiations, each appropriate policy advisory committee, and each sectoral or functional advisory committee, if the sector or area which such committee represents is affected, shall meet at the conclusion of negotiations for each trade agreement entered into under section 1102 of the Omnibus Trade and Competitiveness Act of 1988, to provide to the President, to Congress, and to the United States Trade Representative a report on such agreement. Each report that applies to a trade agreement entered into under section 1102 of the Omnibus Trade and Competitiveness Act of 1988 shall be provided under the preceding sentence not later than the date on which the President notifies the Congress under section 1103(a)(1)(A) of such Act of 1988 of his intention to enter into that agreement. “(2) The report of the Advisory Committee for Trade Policy and Negotiations and each appropriate policy advisory committee shall include an advisory opinion as to whether and to what extent the agreement promotes the economic interests of the United States and achieves the applicable overall and principal negotiating objectives set forth in section 1101 of the Omnibus Trade and Competitiveness Act of 1988, as appropriate. “(3) The report of the appropriate sectoral or functional committee under paragraph (1) shall include an advisory opinion as to whether the agreement provides for equity and reciprocity within the sector or within the functional area. “(f) Application of Federal Advisory Committee Act.— The provisions of the Federal Advisory Committee Act apply— “(1) to the Advisory Committee for Trade Policy and Negotiations established under subsection (b); and “(2) to all other advisory committees which may be established under subsection (c); except that the meetings of advisory committees established under subsections (b) and (c) shall be exempt from the requirements of subsections (a) and (b) of sections 10 and 11 of the Federal Advisory Committee Act (relating to open meetings, public notice, public participation, and public availability of documents), whenever and to the extent it is determined by the President or his designee that such meetings will be concerned with matters the disclosure of which would seriously compromise the development by the United States Government of trade policy, priorities, negotiating objectives or bargaining positions with respect to matters referred to in subsection (a), and that meetings may be called of such special task forces, plenary meetings of chairmen, or other such groups made up of members of the committees established under subsections (b) and (c). “(g) Trade Secrets and Confidential Information.— “(1) Trade secrets and commercial or financial information which is privileged or confidential, and which is submitted in confidence by the private sector or non-Federal government to officers or employees of the United States in connection with trade negotiations, may be disclosed upon request to— “(A) officers and employees of the United States designated by the United States Trade Representative; “(B) members of the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate who are designated as official advisers under section 161(a)(1) or are designated by the chairmen of either such committee under section 161(b)(3)(A) and staff members of either such committee designated by the chair-men under section 161(b)(3)(A); and “(C) members of any committee of the House or Senate or any joint committee of Congress who are designated as advisers under section 161(a)(2) or designated by the chairman of such committee under section 161(b)(3)(B) and staff members of such committee designated under section 161(b)(3)(B), but disclosure may be made under this subparagraph only with respect to trade secrets or commercial or financial information that is relevant to trade policy matters or negotiations that are within the legislative jurisdiction of such committee; for use in connection with matters referred to in subsection (a). “(2) Information other than that described in paragraph (1), and advice submitted in confidence by the private sector or non-Federal government to officers or employees of the United States, to the Advisory Committee for Trade Policy and Negotiations, or to any advisory committee established under subsec-tion (c), in connection with matters referred to in subsection (a), may be disclosed upon request to— “(A) the individuals described in paragraph (1); and “(B) the appropriate advisory committee established under this section. “(3) Information submitted in confidence by officers or employees of the United States to the Advisory Committee for Trade Policy and Negotiations, or to any advisory committee established under subsection (c), may be disclosed in accordance with rules issued by the United States Trade Representative and the Secretaries of Commerce, Labor, Defense, Agriculture, or other executive departments, as appropriate, after consultation with the relevant advisory committees established under subsection (c). Such rules shall define the categories of information which require restricted or confidential handling by such committee considering the extent to which public disclosure of such information can reasonably be expected to prejudice the development of trade policy, priorities, or United States negotiating objectives. Such rules shall, to the maximum extent feasible, permit meaningful consultations by advisory commit-tee members with persons affected by matters referred to in subsection (a). “(h) Advisory Committee Support.— The United States Trade Representative, and the Secretaries of Commerce, Labor, Defense, Agriculture, the Treasury, or other executive departments, as appropriate, shall provide such staff, information, personnel, and administrative services and assistance to advisory committees established under subsection (c) as such committees may reasonably require to carry out their activities. “(i) Consultation With Advisory Committees; Procedures; Nonacceptance of Committee Advice or Recommendations.— It shall be the responsibility of the United States Trade Representative, in conjunction with the Secretaries of Commerce, Labor, Agriculture, the Treasury, or other executive departments, as appropriate, to adopt procedures for consultation with and obtaining information and advice from the advisory committees established under subsection (c) on a continuing and timely basis. Such consultation shall include the provision of information to each advisory committee as to— “(1) significant issues and developments; and “(2) overall negotiating objectives and positions of the United States and other parties; with respect to matters referred to in subsection (a). The United States Trade Representative shall not be bound by the advice or recommendations of such advisory committees, but shall inform the advisory committees of significant departures from such advice or recommendations made. In addition, in the course of consultations with the Congress under this title, information on the advice and information provided by advisory committees shall be made available to congressional advisers. “(j) Private Organizations or Groups.— In addition to any advisory committee established under this section, the President shall provide adequate, timely and continuing opportunity for the submission on an informal basis (and, if such information is submitted under the provisions of subsection (g), on a confidential basis) by private organizations or groups, representing government, labor, industry, agriculture, small business, service industries, consumer interests, and others, of statistics, data and other trade information, as well as policy recommendations, pertinent to any matter referred to in subsection (a). “(k) Scope of Participation by Members of Advisory Committees.— Nothing contained in this section shall be construed to authorize or permit any individual to participate directly in any negotiation of any matters referred to in subsection (a). To the maximum extent practicable, the members of the committees established under subsections (b) and (c), and other appropriate parties, shall be informed and consulted before and during any such negotiations. They may be designated as advisors to a negotiating delegation, and may be permitted to participate in international meetings to the extent the head of the United States delegation deems appropriate. However, they may not speak or negotiate for the United States. “(l) Advisory Committees Established by Department of Agriculture.— The provisions of title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any advisory committee established under subsection (c). “(m) Non-Federal Government Defined.— As used in this section, the term ‘non-Federal government’ means— “(1) any State, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof; or “(2) any agency or instrumentality of any entity described in paragraph (1).”. SEC. 1632. CONGRESSIONAL LIAISON REGARDING TRADE POLICY AND AGREEMENTS. Section 161 of the Trade Act of 1974 (19 U.S.C. 2211) is amended to read as follows: “SEC 161. CONGRESSIONAL ADVISERS FOR TRADE POLICY AND NEGOTIATIONS. “(a) Selection.— “(1) At the beginning of each regular session of Congress, the Speaker of the House of Representatives, upon the recommendation of the chairman of the Committee on Ways and Means, shall select 5 members (not more than 3 of whom are members of the same political party) of such committee, and the President pro tempore of the Senate, upon the recommendation of the chairman of the Committee on Finance, shall select 5 members (not more than 3 of whom are members of the same political party) of such committee, who shall be designated congressional advisers on trade policy and negotiations. They shall provide advice on the development of trade policy and priorities for the implementation thereof. They shall also be accredited by the United States Trade Representative on behalf of the President as official advisers to the United States delegations to international conferences, meetings, and negotiating sessions relating to trade agreements. “(2) (A) In addition to the advisers designated under paragraph (1) from the Committee on Ways and Means and the Committee on Finance— “(i) the Speaker of the House may select additional members of the House, for designation as congressional advisers regarding specific trade policy matters or negotiations, from any other committee of the House or joint committee of Congress that has jurisdiction over legislation likely to be affected by such matters or negotiations; and “(ii) the President pro tempore of the Senate may select additional members of the Senate, for designation as congressional advisers regarding specific trade policy matters or negotiations, from any other committee of the Senate or joint committee of Congress that has jurisdiction over legislation likely to be affected by such matters or negotiations. Members of the House and Senate selected as congressional advisers under this subparagraph shall be accredited by the United States Trade Representative. “(B) Before designating any member under subparagraph (A), the Speaker or the President pro tempore shall consult with— “(i) the chairman and ranking member of the Committee on Ways and Means or the Committee on Finance, as appropriate; and “(ii) the chairman and ranking minority member of the committee from which the member will be selected. “(C) Not more than 3 members (not more than 2 of whom are members of the same political party) may be selected under this paragraph as advisers from any committee of Congress. “(b) Briefing.— “(1) The United States Trade Representative shall keep each official adviser designated under subsection (a)(1) currently in-formed on matters affecting the trade policy of the United States and, with respect to possible agreements, negotiating objectives, the status of negotiations in progress, and the nature of any changes in domestic law or the administration thereof which may be recommended to Congress to carry out any trade agreement or any requirement of, amendment to, or recommendation under, such agreement. “(2) The United States Trade Representative shall keep each official adviser designated under subsection (a)(2) currently in-formed regarding the trade policy matters and negotiations with respect to which the adviser is designated. “(3) (A) The chairmen of the Committee on Ways and Means and the Committee on Finance may designate members (in addition to the official advisers under subsection (a)(1)) and staff members of their respective committees who shall have access to the information provided to official advisers under paragraph (1). “(B) The Chairman of any committee of the House or Senate or any joint committee of Congress from which official advisers are selected under subsection (a)(2) may designate other members of such committee, and staff members of such committee, who shall have access to the information provided to official advisers under paragraph (2). “(c) Committee Consultation.— The United States Trade Representative shall consult on a continuing basis with the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the other appropriate committees of the House and Senate on the development, implementation, and administration of overall trade policy of the United States. Such consultations shall include, but are not limited to, the following elements of such policy: “(1) The principal multilateral and bilateral negotiating objectives and the progress being made toward their achievement. “(2) The implementation, administration, and effectiveness of recently concluded multilateral and bilateral trade agreements and resolution of trade disputes. “(3) The actions taken, and proposed to be taken, under the trade laws of the United States and the effectiveness, or anticipated effectiveness, of such actions in achieving trade policy objectives. “(4) The important developments and issues in other areas of trade for which there must be developed proper policy response. When necessary, meetings shall be held with each Committee in executive session to review matters under negotiation.”. PART 3— ANNUAL REPORTS AND NATIONAL TRADE POLICY AGENDA SEC. 1641. REPORTS AND AGENDA. Section 163 of the Trade Act of 1974 (19 U.S.C. 2213) is amended to read as follows: “SEC. 163. REPORTS. “(a) Annual Report on Trade Agreements Program and National Trade Policy Agenda.— “(1) The President shall submit to the Congress during each President of U.S. calendar year (but not later than March 1 of that year) a report on— “(A) the operation of the trade agreements program, and the provision of import relief and adjustment assistance to workers and firms, under this Act during the preceding calendar year; and “(B) the national trade policy agenda for the year in which the report is submitted. “(2) The report shall include, with respect to the matters referred to in paragraph (1)(A), information regarding— “(A) new trade negotiations; “(B) changes made in duties and nontariff barriers and other distortions of trade of the United States; “(C) reciprocal concessions obtained; “(D) changes in trade agreements (including the incorporation therein of actions taken for import relief and compensation provided therefor); “(E) the extension or withdrawal of nondiscriminatory treatment by the United States with respect to the products of foreign countries; “(F) the extension, modification, withdrawal, suspension, or limitation of preferential treatment to exports of developing countries; “(G) the results of actions to obtain the removal of foreign trade restrictions (including discriminatory restrictions) against United States exports and the removal of foreign practices which discriminate against United States service industries (including transportation and tourism) and investment; “(H) the measures being taken to seek the removal of other significant foreign import restrictions; “(I) each of the referrals made under section 141(d)(1)(B) and any action taken with respect to such referral; “(J) other information relating to the trade agreements program and to the agreements entered into thereunder; and “(K) the number of applications filed for adjustment assistance for workers and firms, the number of such applications which were approved, and the extent to which adjustment assistance has been provided under such approved applications. “(3) (A) The national trade policy agenda required under paragraph (1)(B) for the year in which a report is submitted shall be in the form of a statement of— “(i) the trade policy objectives and priorities of the United States for the year, and the reasons therefor; “(ii) the actions proposed, or anticipated, to be under-taken during the year to achieve such objectives and priorities, including, but not limited to, actions authorized under the trade laws and negotiations with foreign countries; “(iii) any proposed legislation necessary or appropriate to achieve any of such objectives or priorities; and “(iv) the progress that was made during the preceding year in achieving the trade policy objectives and priorities included in the statement provided for that year under this paragraph. “(B) The President may separately submit any information referred to in subparagraph (A) to the Congress in confidence if the President considers confidentiality appropriate. “(C) Before submitting the national trade policy agenda for any year, the President shall seek advice from the appropriate advisory committees established under section 135 and shall consult with the appropriate committees of the Congress. “(D) The United States Trade Representative (hereafter referred to in this section as the ‘Trade Representative’) and other appropriate officials of the United States Government shall consult periodically with the appropriate committees of the Congress regarding the annual objectives and priorities set forth in each national trade policy agenda with respect to— “(i) the status and results of the actions that have been undertaken to achieve the objectives and priorities; and “(ii) any development which may require, or result in, changes to any of such objectives or priorities. “(b) Annual Trade Projection Report.— “(1) In order for the Congress to be informed of the impact of foreign trade barriers and macroeconomic factors on the balance of trade of the United States, the Trade Representative and the Secretary of the Treasury shall jointly prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives (hereafter referred to in this subsection as the ‘Committees’) on or before March 1 of each year a report which consists of— “(A) a review and analysis of— “(i) the merchandise balance of trade, “(ii) the goods and services balance of trade, “(iii) the balance on the current account, “(iv) the external debt position, “(v) the exchange rates, “(vi) the economic growth rates, “(vii) the deficit or surplus in the fiscal budget, and “(viii) the impact on United States trade of market barriers and other unfair practices, of countries that are major trading partners of the United States, including, as appropriate, groupings of such countries; “(B) projections for each of the economic factors described in subparagraph (A) (except those described in clauses (v) and (viii)) for each of the countries and groups of countries referred to in subparagraph (A) for the year in which the report is submitted and for the succeeding year; and “(C) conclusions and recommendations, based upon the projections referred to in subparagraph (B), for policy changes, including trade policy, exchange rate policy, fiscal policy, and other policies that should be implemented to improve the outlook. “(2) To the extent that subjects referred to in paragraph (1) (A), (B), or (C) are covered in the national trade policy agenda required under subsection (a)(1)(B) or in other reports required by this Act or other law, the Trade Representative and the Secretary of the Treasury may, as appropriate, draw on the information, analysis, and conclusions, if any, in those reports for the purposes of preparing the report required by this subsection. “(3) The Trade Representative and the Secretary of the Treasury shall consult with the Chairman of the Board of Governors of the Federal Reserve System in the preparation of each report required under this subsection. “(4) The Trade Representative and the Secretary of the Treasury may separately submit any information, analysis, or conclusion referred to in paragraph (1) to the Committees in confidence if the Trade Representative and the Secretary consider confidentiality appropriate. “(5) After submission of each report required under paragraph (1), the Trade Representative and the Secretary of the Treasury shall consult with each of the Committees with respect to the report. “(c) ITC Reports.— The United States International Trade Commission shall submit to the Congress, at least once a year, a factual report on the operation of the trade agreements program.”. Subtitle G— Tariff Provisions PART 1— AMENDMENTS TO THE TARIFF SCHEDULES OF THE UNITED STATES SEC. 1701. REFERENCE. Whenever in this part an amendment or repeal is expressed in terms of an amendment to, or repeal of, a schedule, headnote, item, the Appendix, or other provision, the reference shall be considered to be made to a schedule, headnote, item, the Appendix, or other provision of the Tariff Schedules of the United States. Subpart A— Permanent Changes in Tariff Treatment SEC. 1711. BROADWOVEN FABRICS OF MAN-MADE FIBERS. (a) In General.— Subpart E of part 3 of schedule 3 is amended by striking out item 338.50 and inserting the following new items with the article description for item 338.60 having the same degree of indentation as the article description for item 338.40: “  338.60 Containing 85% or more by weight of continuous man-made fibers 17% ad val. 8.5% ad val. (I) 81% ad val. Other:  ” 338.70 Weighing not more than 5 oz. per square yard 17% ad val. 8.5% ad val. (I) 81% ad val.  ” 338.80 Other 17% ad val. 8.5% ad val. (I) 81% ad val.  ” (b) Staged Rate Reduction.— Any staged rate reduction of a rate of duty set forth in item 338.50 of the Tariff Schedules of the United States (as in effect before the date of enactment of this Act) that was proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rates of duty set forth in items 338.60, 338.70, and 338.80 of such Schedules. SEC. 1712. NAPHTHA AND MOTOR FUEL BLENDING STOCKS. Part 10 of schedule 4 is amended— (1) by amending headnote 1 by inserting “motor fuel blending stocks,” immediately after “except”; (2) by amending headnote 2— (A) by striking out “and” at the end of subdivision (a); (B) by striking out the period at the end of subdivision (b) and inserting “; and”; and (C) by adding at the end thereof the following: “(c) ‘Motor fuel blending stock’ (item 475.27) means any product (except naphthas provided for in item 475.35) derived primarily from petroleum, shale oil, or natural gas, whether or not containing additives, to be used for direct blending in the manufacture of motor fuel.”; (3) by inserting in numerical sequence the following new item with an article description having the same degree of indentation as the article description for item 475.30: “  475.27 Motor fuel blending stocks 1.25¢ per gal. 2.5¢ per gal.  ”, (4) by amending 475.30 by striking out “fuel)” and inserting “fuel or motor fuel blending stocks)”; and (5) by amending 475.35 by striking out “fuel)” and inserting in lieu thereof “fuel or motor fuel blending stocks)”. SEC. 1713. WATCHES AND WATCH COMPONENTS. Headnote 4 of subpart E of part 2 of schedule 7 is amended to read as follows: “4. Special Marking Requirements: Any movement or case provided for in this subpart, whether imported separately or attached to any article provided for in this subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, stamping, or mold-marking (either indented or raised), as specified below: “(a) Watch movements shall be marked on one or more of the bridges or top plates to show— “(i) the name of the country of manufacture; “(ii) the name of the manufacturer or purchaser; and “(iii) in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. “(b) Clock movements shall be marked on the most visible part of the front or back plate to show— “(i) the name of the country of manufacture; “(ii) the name of the manufacturer or purchaser; and “(iii) the number of jewels, if any. “(c) Watch cases shall be marked on the inside or outside of the back case to show— “(i) the name of the country of manufacture; and “(ii) the name of the manufacturer or purchaser. “(d) Clock cases provided for in this subpart shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture.”. SEC. 1714. SLABS OF IRON OR STEEL. Headnote 3(c) to subpart B of part 2 of schedule 6 is amended by striking out “and not over 6 inches”. SEC 1715. CERTAIN WORK GLOVES. (a) Headnote 5(a) to schedule 3 is amended by striking out “(except subpart A)” and inserting in lieu thereof “(except subparts A and O”. (b) Headnote 1 to subpart C of part 1 of schedule 7 of the Tariff Schedules of the United States is amended— (1) by striking out “and” at the end of subdivision (b), (2) by striking out the period at the end of subdivision (c) and inserting in lieu thereof “, and”, and (3) by adding after subdivision (c) the following new subdivision: “(d) gloves which are— “(i) other than gloves with fourchettes, and “(ii) constructed of a textile fabric coated, filled, impregnated, or laminated, in whole or in part, with rubber or plastics and cut-and-sewn, shall be regarded as gloves of textile materials.”. SEC. 1716. DUTY-FREE IMPORTATION OF HATTER’S FUR. (a) In General.— Subpart D of part 15 of schedule 1 is amended— (1) by striking out “use, and carroted furskins” in item 186.20 and inserting in lieu thereof “use”, (2) by striking out “15% ad val.” in item 186.20 and inserting in lieu thereof “Free”, (3) by striking out “Free (A,E) 4.8% ad val. (I)” in item 186.20, and (4) by inserting after item 186.20 the following new item with the article description having the same degree of indentation as the article description in item 186.20: “  186.22 Carroted fur-skins 15% ad. val. Free (A.E) 4.8% ad val. (I) 35% ad val.  ”, (b) Staged Rate Reduction.— Any staged rate reduction of a rate of duty set forth in item 186.20 of the Tariff Schedules of the United States that was proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rate of duty set forth in item 186.22 of such Schedules. SEC. 1717. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS. Item 709.15 is amended by inserting “other than extracorporeal shock wave lithotripters,” before “and”. SEC. 1718. SALTED AND DRIED PLUMS. (a) In General.— Subpart B of part 9 of schedule 1 is amended by striking out item 149.28 and inserting in lieu thereof the following items with the article descriptions having the same degree of indentation as the article description in item 149.26: “  149.27 Soaked in brine and dried 2¢ per lb. Free (E.I) 2¢ per lb. 149.29 Otherwise prepared or preserved 17.5% ad val. Free (E) 5.6% ad val. (I) 35% ad val.  ” (b) Staged Rate Reduction.— Any staged rate reduction of a rate of duty set forth in item 149.28 of the Tariff Schedules of the United States that was proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rates of duty set forth in items 149.27 and 149.29 of such Schedules. SEC. 1719. TELEVISION APPARATUS AND PARTS. (a) Permanent Treatment.— The headnotes to part 5 of schedule 6 are amended— (1) by striking out “assembled,” in subparagraph (a) of head-note 3 and inserting in lieu thereof “assembled in its cabinet,”; (2) by redesignating headnotes 4, 5, and 6 as headnotes 5, 6, and 7, respectively; and (3) by inserting after headnote 3 the following new headnote: “4. Picture tubes imported in combination with, or incorporated into, other articles are to be classified in items 687.35 through 687.44, inclusive, unless they are— “(i) incorporated into complete television receivers, as defined in headnote 3; “(ii) incorporated into fully assembled units such as word processors, ADP terminals, or similar articles; “(iii) put up in kits containing all the parts necessary for assembly into complete television receivers, as defined in head-note 3; or “(iv) put up in kits containing all the parts necessary for assembly into fully assembled units such as word processors, ADP terminals, or similar articles.”. (b) Temporary Treatment.— (1) Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.16 Television picture tubes, color, having a video display diagonal of less than 12 inches (provided for in item 687.35, part 5, schedule 6) Free No change On or before 12/31/90  ”, (2) Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.19 Television picture tubes, color, having a video display diagonal of 30 inches and over (provided for in item 687.35, part 5, schedule 6) Free No change On or before 9/30/88  ”, SEC. 1720. CASEIN. (a) Human Food and Animal Feed Use.— Subpart D of part 4 of schedule 1 is amended by adding at the end thereof the following new items with the superior heading having the same degree of indentation as the article description in item 118.45: “  Casein, caseinates, and dried milk: 118.50 Casein Free Free 118.55 Dried milk (described in items 115.45, 115.50, 115.55, and 118.05) which contains not over 5.5 percent by weight of butterfat and which is mixed with other ingredients, including but not limited to sugar, if such mixtures contain over 16 percent milk solids by weight, are capable of being further processed or mixed with similar or other ingredients and are not prepared for marketing to the retail consumers in the identical form and package in which imported 1.3¢ per lb. Free (A,E,I) 5.5¢ per lb. 118.60 Other 0.2¢ per lb. Free (A.E,I) 5.5¢ per lb.  ”, (b) Industrial Use.— Subpart B of part 13 of schedule 4 is amended by striking out items 493.12, 493.14, and 493.17 and the superior heading thereto. SEC. 1721. TARIFF TREATMENT OF CERTAIN TYPES OF PLYWOOD. Headnote 1 of part 3 of schedule 2 is amended— (1) in paragraph (b) by inserting immediately before the semi-colon at the end thereof the following: “or any edge of which has been tongued, grooved, lapped, or otherwise worked”; (2) in paragraph (c) by inserting immediately before the semi-colon at the end thereof the following: “or any edge of which has been tongued, grooved, lapped, or otherwise worked”; and (3) in paragraph (e) by inserting before “chiefly” the following: “other than plywood, wooaveneer panels, or cellular panels,”. SEC. 1722. IMPORTATION OF FURSKINS. Headnote 4 to subpart B of part 5 of schedule 1 is repealed. SEC. 1723. GRAPEFRUIT. Subpart A of part 12 of schedule 1 is amended— (1) by inserting after item 165.29 the following new items with a superior heading having the same degree of indentation as item 165.25: “  Grapefruit: 165.31 Not concentrated and not made from a juice having a degree of concentration of 1.5 or more (as determined before correction to the nearest 0.5 degree) 20¢ per gal. Free (E) 70¢ per gal. 165.34 Other 35¢ per gal. Free (E) 70¢ per gal.  ”; and (2) by redesignating items 165.32 and 165.36 as items 165.37 and 165.38, respectively. SEC. 1724. SILICONE RESINS AND MATERIALS. Part 4 of schedule 4 is amended— (1) by amending subpart A— (A) by striking out “provided for in part 1C” in headnote 1 and inserting “, other than silicones, provided for in part 1”, and (B) by amending headnote 2 to read as follows: “2. (a) For purposes of this subpart, the term ‘synthetic plastics materials’— “(i) embraces products formed by the condensation, polymerization, or copolymerization of organic chemicals and to which an antioxidant, color, dispersing agent, emulsifier, extender, filler, pesticide, plasticizer, or stabilizer may have been added; and “(ii) includes silicones (including fluids, resins, elastomers, and copolymers) whether or not such materials are solid in the finished articles. “(b) The products referred to in subdivision (a) contain as an essential ingredient an organic substance of high molecular weight; and, except as provided in subdivision (a)(ii), are capable, at some stage during processing into finished articles, of being molded or shaped by flow and are solid in the finished article. The term includes, but is not limited to, such products derived from esters of acrylic or methacrylic acid; vinyl acetate, vinyl chloride resins, polyvinyl alcohol, acetals, butyral, formal resins, polyvinyl ether and ester resins, and polyvinylidene chloride resins; urea and amino resins; polyethylene, polypropylene, and other polyalkene resins; 102 STAT. 1279 siloxanes, silicones, and other organosilicon resins; alkyd, acrylonitrile, allyl, and formaldehyde resins, and cellulosic plastics materials. These synthetic plastics materials may be in solid, semi-solid, or liquid condition such as flakes, powders, pellets, granules, solutions, emulsions, and other basic crude forms not further processed.”, (C) by inserting after item 445.54 the following new item with the article description having the same degree of indentation as the article description for item 445.54: “  445.55 Silicone resins and materials 3% ad val. Free (A.E,I) 25% ad val.  ”, and (D) by redesignating item 445.56 as item 445.60; and (2) by amending headnote 2 to subpart B by adding at the end thereof the following: “(c) For purposes of the Tariff Schedules, the term ‘rubber’ does not include silicones.”. Subpart B— Temporary Changes in Tariff Treatment SEC. 1731. COLOR COUPLERS AND COUPLER INTERMEDIATES. Subpart B of part 1 of the Appendix is amended— (1) by inserting “, but excluding 6,7-dihydroxy–2-naphthalene sulfonic acid sodium salt provided for in item 403.57,” after “schedule 4” and before tne parenthesis in item 907.10; and (2) by striking out “9/30/85” in each of items 907.10 and 907.12 and inserting in lieu thereof “12/31/90”. SEC. 1732. POTASSIUM 4-SULFOBENZOATE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.26 p-Sulfobenzoic acid, potassium salt (provided for in item 404.28. part 1B. schedule 4) Free No change On or before 12/31/90  ”, SEC. 1733. 2,2’-OXAMIDOBIS[ETHYL–3-(3,5-DI-TERT-BUTYL-4-HYDROXYPHENYL)PROPIONATE]. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: “  907.09 2.2‘-Oxamidobis-[ethyl–343,5-ditertbutyl–4-hydroxy phenyl)propionate] (provided for in item 405.34, part 1B. schedule 4) Free No change On or before 12/31/90  ”, SEC. 1734. 2.4-DICHLORO–5-SULFAMOYLBENZOIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.48 2,4-Dichloro–5-sulfamoylbenzoic acid (provided for in item 406.56, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1735. DERIVATIVES OF N-[4-(2-HYDROX-3-PHENOXYPROPOXY)-PHENYL]ACETAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.11 Mixtures containing derivatives of N-{4-(2-hydroxy-3-phenoxypropoxy (phenyl) acetamide (provided for in item 407.19, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1736. CERTAIN KNITWEAR FABRICATED IN GUAM. (a) In General.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  905.45 Sweaters that— (i) do not contain foreign materials in excess of the percentage of total value limitation contained in general headnote 3(a), and (ii) are assembled in Guam, exclusively by United States citizens, nationals, or resident aliens, by joining together (by completely sewing, looping, linking, or other means of attaching) at least 5 otherwise completed major knit-to- component parts of foreign origin, if entered before the aggregate quantity of such sweaters that is entered during any 12-month period after October 31, 1985, exceeds the duty-free quantity for that period Free On or before 10/31/92  ” (b) Duty-Free Quantity.— The headnotes to subpart B of part 1 of the Appendix are amended by adding at the end thereof the following new headnote: “3. For purposes of item 905.45, the term ‘duty-free quantity’ means— “(a) for the 12-month period ending October 31, 1986, 161,600 dozen; and “(b) for any 12-month period thereafter, an amount equal to 101 percent of the duty-free quantity for the preceding 12-month period.”. SEC. 1737. 3,5-DINITRO-O-TOLUAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.42 3,5-Dinitro-o-toluamide (provided for in item 411.95, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1738. SECONDARYBUTYL CHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.55 Secondary-butyl chloride (provided for in item 429.47, part 2D. schedule 4) Free No change On or before 12/31/90  ”, SEC. 1739. CERTAIN NONBENZENOID VINYL ACETATE-VINYL CHLORIDE-ETHYLENE TERPOLYMERS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: “  907.83 Nonbenzenoid vinyl acetate-vinyl chloride-ethylene terpolymers, containing by weight less than 50 percent derivatives of vinyl acetate (provided for in item 445.48, part 4A. schedule 4) Free No change On or before 12/31/90  ”, SEC. 1740. DUTY-FREE ENTRY OF PERSONAL EFFECTS AND EQUIPMENT OF PARTICIPANTS AND OFFICIALS INVOLVED IN THE 10TH PAN AMERICAN GAMES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  915.20 Personal effects of aliens who are participants in or officials of the Tenth Pan American Games, or who are accredited members of delegations thereto, or who are members of the immediate families of any of the foregoing persons, or who are their servants; equipment for use in connection with such games; and other related articles as prescribed in regulations issued by the Secretary of the Treasury Free No change On or before 9/30/87  ”, SEC. 1741. CARDING AND SPINNING MACHINES. (a) In General.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.03 Carding and spinning machines specially designed for wool, other than machines specially designed for the manufacture of combed wool (worsted) yarns (provided for in item 670.04, part 4E, schedule 6) Free No change On or before 12/81/90  ”, (b) Parts.— The headnote to subpart E of part 4 of schedule 6 is amended by striking out “item 912.04” each place it appears and inserting in lieu thereof “item 912.03 or 912.04”. SEC. 1742. DICOFOL AND CERTAIN MIXTURES. (a) Dicofol.— Item 907.15 of the Appendix is amended to read as follows: “  907.15 l.l-Bis(4-chlorophenyl)- 2,2,2- trichloroethanol (dicofol) (provided for in item 408.28, part 1C, schedule 4) Free No change On or before 12/31/90  ”, (b) Mixtures of Dicofol and Application Adjuvants.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: “  907.27 Mixtures of 1.1-bis(4- chlorophenyl)- 2,2,2- trichloroethanol (dicofol) and application adjuvants (provided for in item 408.36, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1743. SILK YARN. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  905.25 Yams of silk (provided for in item 308.51, part 1D, schedule 3) Free No change On or before 12/31/90  ”, SEC. 1744. TERFENADONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.48 1-(41.1-Dimethylethyl)- phenyl M- (hydroxydiphenylmethyl- lpiperidinyl)-lbutanone (provided for in item 406.42, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1745. FLUAZIFOPPBUTYL. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.49 Butyl 2-(4-(5-trifluoromethyl- 2-pryidinyloxy)- phenoxy}- propanoate (provided for in item 408.23, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 174fi. PARTS OF INDIRECT PROCESS ELECTROSTATIC COPYING MACHINES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.18 Parts, not including photoreceptors or assemblies containing photoreceptors, of indirect process electrostatic copying machines, which machines reproduce the original image onto the copy material by electrostatic transference to and from an intermediate (provided for in item 676.56, part 4G, schedule 6) Free No change On or before 12/31/90  ”, SEC. 1747. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS IMPORTED BY NONPROFIT INSTITUTIONS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.24 Extracorporeal shock wave lithotripters imported by nonprofit hospitals and research or educational institutions (provided for in item 709.17, part 2B, schedule 7) Free No change On or before 12/31/87  ”, SEC. 1748. TRANSPARENT PLASTIC SHEETING. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  915.10 Transparent plastic sheeting containing 30% or more of lead, by weight (provided for in item 774.58, part 12D, schedule 7) Free No change On or before 12/31/90  ”, SEC. 1749. DOLL WIG YARNS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  905.30 Grouped filaments and yarns, not textured, in continuous form, colored, of nylon or modacrylic, whether or not curled of not less than 20 denier per filament, to be used in the manufacture of wigs for dolls (provided for in item 309.32 and 309.33, part IE, schedule 3, or item 389.62, part 7B, schedule 3) Free No change On or before 12/31/90  ”, SEC. 1750. 1-(3-SULFOPROPYL) PYRIDINIUM HYDROXIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: “  907.97 1-(3-Sulfopropyl)-pyridinium hydroxide (provided for in item 406.42, part IB, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1751. POLYVINYLBENZYLTRIMETHYLAMMONIUM CHLORIDE (CHOLESTYRAMINE RESIN USP). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.30 Crow-linked polyvinyl-benzyl trimethylammonium chloride (cholestyramine resin USP) (provided for in item 412.71, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1752. METHYLENE BLUE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.81 3,7-Bia/dimethylaminolphenazathionium chloride (methylene blue) (provided for in item 409.74, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1753. 3-AMINO–3-METHYL–1-BUTYNE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.53 3-Amino-3-methyl-1-butyne (provided for in item 425.52, part 2D, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1754. DICYCLOHEXYLBENZOTHIAZYLSULFENAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.45 Dicyclohexylben-zothiazyl-sulfenamide (provided for in item 406.39, part IB, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1755. D–6-METHOXYaMETHYL–2-NAPHTHALENEACETIC ACID AND ITS SODIUM SALT. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.39 d-6-Methoxyomethyl–2-naphthaleneacetic acid and its sodium salt (provided for in item 412.22, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC 1756. SUSPENSION OF DUTIES ON JACQUARD CARDS AND JACQUARD HEADS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.46 Jacquard cards and jacquard heads for power-driven weaving machines, and parts thereof (provided for in items 670.56 and 670.74, respectively, part 4E, schedule 6) Free No change On or before 12/31/90  ”, SEC. 1757. 2,2-BIS(4-CYANATOPHENYL). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.44 2,2-Bis(4-cyanatophenyl) (provided for in item 405.76, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1758. PHENYLMETHYLAMINOPYRAZOLE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.47 Aminomethyl-phenylpyrazole (Phenylmethylaminopyrazole) (provided for in item 406.36, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1759. BENZETHONIUM CHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.52 Benzethonium-chloride (provided for in item 408.32, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1760. MANEB, ZINEB, MANCOZEB, AND MET1RAM. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.60 Maneb, zineb, mancozeb, and metiram (provided for in item 432.15, part 2E. schedule 4) Free No change On or before 12/31/90  ”, SEC. 1761. METALDEHYDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.56 Metaldehyde (provided for in item 427.58, part 2D, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1762. PARALDEHYDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.57 Paraldehyde. USP grade (provided for in item 439 50, part 3C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1763. CYCLOSPORINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: “  907.78 Cyclosporine (provided for in item 439.30, part 3C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1764. TEMPORARY REDUCTION OF DUTIES ON GLASS INNERS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  909.35 Glass inners designed for vacuum flasks or for other vacuum vessels (provided for in items 545.31, 545.34, 545.35, and 545.37, part 3C, schedule 5) 9% ad val. 3.6% ad val. (I) 55% ad val. On or before 12/31/90 Free (A.E)  ” SEC. 1765. BENZENOID DYE INTERMEDIATES. Subpart B of part 1 of the Appendix is amended by inserting ii numerical sequence the following items: “  907.84 p-Toluenesulfonyl-chloride (provided for in item 403.05, part IB, schedule 4) Free No change On or before 12/31/90 907.85 6-Hydroxy–2- naphthalenesulfonic acid; 6-Hydroxy–2- naphthalenesulfonic acid, sodium salt; 6-Hydroxy–2- napthalenesulfonic acid, potassium salt; and 6-Hydroxy–2- napthalenesulfonic acid, ammonium salt (provided for in item 403.57, part IB, schedule 4) Free No change On or before 12/31/90 907.86 2,6-Dichlorobenzaldehyde (provided for in item 403.81 part IB, schedule 4) Free No change On or before 12/31/90 907.87 8-Amino-l- naphthalenesulfonic acid and its salts (provided for in item 404.52, part 1B, schedule 4) Free No change On or before 12/31/90 907.88 5-Amino-2-(paminoanilino) benzenesulfonic acid (provided for in item 404.84, part 1B, schedule 4) Free No change On or before 12/31/90 907.89 1-Amino-2,4- dibro mo-an th raquinone; and a,a,a-Trifluoro-o-toluidine (provided for in item 404.88, part 1B, schedule 4) Free No change On or before 12/31/90 907.90 1-Am in o-8-hydroxy- 3.6- naphthalenedisulfonic acid; 4-Amino-5- hydroxy-2,7- naphthalenedisulfonic acid, monoeodium salt (H acid, monoeodium salt); and 2-Amino-5- nitrophenol (provided for in item 404.92, part 1B, schedule 4) Free No change On or before 12/31/90 907.91 1-Amino-4-bromo- 2- anthraquinonesulfonic acid (Bromamine acid); 1-Amino-4-bromo- 2-anthraquinoneeulfonic acid (Bromamine acid), sodium salt; 6-Amino-4- hydroxy- 2-naphthalenesulfonic acid (Gamma acid); 3,3’-Dimethoxybenzidine (o-Dianisidine);, 3,3’-Dimethoxybenzidine dihydrochloride (o-Dianisidine dihydrochloride); and 4-Methoxyaniline- 2-«ulfonic acid (provided for in item 405.07, part 1B, schedule 4) Free No change On or before 12/31/90 907.92 N-(7-Hydroxylnaphthyl)- acetamide (provided for in item 405.28, part 1B, schedule 4) Free No change On or before 12/31/90 907.93 N, N-Bis(2-cyanoethyl)- aniline (provided for in item 405.60, part 1B, schedule 4) Free No change On or before 12/31/90 907.94 648-Methyl-5-oxo-1- pyrazolyl)-l, 3- naphthalenedisulfonic acid (AminoJpyrazolone) (CAS No. 7277–87–4); and 3-Methyl-l- phenyl- 5-pyrazolone (Methylphenylpyrazolone) (provided for in item 406.36, part IB, schedule 4) Free No change On or before 12/31/90 907.95 2-Amino-N-ethylbenzenesulfonanilide (provided for in item 406.49. part IB, schedule 4) Free No change On or before 12/31/90 907.96 m-Sulfaminopyrazolone m-Sulfamidophenylmethylpyrazolone) (provided for in item 406.56, part 1B. schedule 4) Free No change On or before 12/31/90  ” SEC. 1766. TUNGSTEN ORE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  911.96 Tungsten ore (provided for in item 60L54, part 1, schedule 6) Free No change On or before 12/31/90  ”, SEC. 1767. CHLOR AMINO BASE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.07 4-Chloro–2,5-dimethoxy aniline (CAS No. 6358–64–1) (provided for in item 405.01, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1768. NITRO SULFON B. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.01 2-{(3-Nitrophenyl)-fiulfonyl}- ethanol (CAS No. 41687–30–3) (provided for in item 406.00, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1769. 4-CHLORO–2-NITRO ANILINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: “  908.02 4-Chloro–2-nitroaniline (CAS No. 89–63–4) (provided for in item 404.88, part 1B, achedule 4) Free No change On or before 12/31/90  ”, SEC. 1770. AMINO SULFON BR. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.03 3-(4’-aminobenzamido) phenylbetahydro xyethyl sulfone (CAS No. 20241–68–3) (provided for in item 406.00, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1771. ACET QUINONE BASE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.04 2,5-Dimethoxyacetanilide (CAS No. 3467–59–2) (provided for in item 405.34, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1772. DIAMINO PHENETOLE SULFATE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.05 3.4-Diamino phenetole dihydrogen sulfate (CAS No. 85137-09–3) (provided for in item 405.09, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1773. CERTAIN MIXTURES OF CROSS-LINKED SODIUM POLY ACRYLATE POLYMERS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: “  907.72 Mixtures of two or more organic compounds containing one or more cross-linked sodium polyacrylate polymers (provided for in item 430.20, part 2D, schedule 4) Free No change On or before 10/31/87  ”, SEC. 1774. N-ETHYL-OTOLUENESULFONAMIDE AND N-ETHYL-PTOLUENESULFONAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.07 N-Ethyl-o-toluene-sulfonamide, and 908.07 N-Ethyl-p-toluene- sulfonamide (provided for in item 409.34, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1775. SETHOXYDIM. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.36 Mixtures of 2-{1-(ethoxyimino)(butyl}-5-(2- (ethylthio}-propyl)-3-hydroxy-2-cyclohexen-1-one (sethoxydim) and application adjuvants (provided for in item 407.19, part 1B, or item 430.20. part 2D of schedule 4) Free No change On or before 12/31/90  ”, SEC. 1776. 3-ETHYLAMINOPCRESOL. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.34 3-Ethylaminopcresol (provided for in item 404.96, part IB, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1777. ROSACHLOR1DE LUMPS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.11 l-Amino-2chloro-4- hydroxyanthra quinone (provided for in item 405.07. part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1778. C-AMINES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.59 2-Amino-5-chloro-4-methyl-benzenesulfonic acid; and 2-amino-5-chloro- 4-ethylbenzenesulfonic acid (provided for in item 404.88 and 404.90, respectively, part 1B, sched- ule 4) Free No change On or before 12/31/90  ”, SEC. 1779. DIAMINO 1MID SP. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  906.60 4,11-DiaminolHnaphth(2,3-f]isoindole-1.3.5, 10(2H)- tetrone (CAS No. 128–81–4) (provided for in item 406.42, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1780. CERTAIN STUFFED TOY FIGURES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.32 Stuffed or filled toy figures of animate objects (except dolls), not having a spring mechanism and not exceeding 25 inches in either length, width, or height (provided for in items 737.30 and 737.40, part 5E, schedule 7) Free No change On or before 12/31/90  ”, SEC. 1781. KITCHENWARE OF TRANSPARENT. NONGLAZED GLASS CERAMICS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  909.15 Kitchenware of glass-ceramics, nonglazed, greater than 75 percent by volume crystalline, containing lithium aluminosilicate, having a linear coefficient of expansion not exceeding 10x10-7 per Kelvin within a temperature range of 0° C to 300° C. transparent, haze-free, exhibiting transmittance® of infrared radiations in excess of 75 percent at a wavelength of 2.5 microns when measured on a sample 3 mm. in thickness, and containing beta-quartz solid solution as the predominant crystal phase (provided for in item 534.97, part 2C. schedule 5) Free No change On or before 12/31/90  ”, SEC. 1782. HOSIERY KNITTING MACHINES AND NEEDLES. (a) In General.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: “  912.28 Needles for knitting machines (provided for in items 670.58 and 670.62, part 4E, schedule 6) Free No change On or before 12/31/90 “  912.29 Hosiery knitting machines, single cylinder fine gauge and all double cylinder (provided for in items 670.16 and 670.18. part 4E, schedule 6) Free No change On or before 12/31/90  ”, (b) Repeal.— Items 912.08 and 912.09 are repealed. SEC. 1783. CERTAIN BICYCLE PARTS. (a) Bicycle Tires and Tubes.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.01 Bicycle tires and tubes and rim strips, the foregoing of rubber or plastics (provided for in item 732.42, part 5C, schedule 7, and items 772.48 and 772.57, part 12C. schedule 7) Free No change On or before 12/31/90  ”, (b) Generator Lighting Sets.— Item 912.05 of the Appendix is amended by striking out “6/30/86” and inserting in lieu thereof “12/31/90”. (c) Bicycle Chains.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.06 Bicycle chains (provided for in items 652.13 and 652.15, part 3F, schedule 6) Free No change On or before 12/31/90  ”, (d) Other Bicycle Parts.— Item 912.10 of the Appendix is amended— (1) by inserting “front and rear derailleurs, shift levers, cables and casings for derailleurs,” immediately after “drum brakes,”, (2) by striking out “multiple free wheel sprockets” and inserting in lieu thereof “free wheel sprockets”, (3) by inserting “and” after “frame lugs,”, (4) by striking out “, including cable or inner wire for caliper brakes and casing therefor, whether or not cut to length, and parts of bicycles consisting of sets of steel tubing cut to exact length and each set having the number of tubes needed for the assembly (with other parts) into the frame and fork of one bicycle”, and (5) by striking out “6/30/86” and inserting in lieu thereof “12/31/90”. (e) Caliper Brake Cable or Inner Wire and Casing.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.12 Cable or inner wire for caliper brakes and casing therefor, whether or not cut to length (provided for in items 642.08, 642.11,642.14, 642.16, 642.18, 642.19, 642.23, and 657.25, parts 3B and 3G, schedule 6, and items 771.55 and 772.65, parts 12B and 12C, schedule 7) Free No change On or before 12/31/90  ”, (f) Exception to Customs Exemption Applicable to Foreign Trade Zones.— Section 3(h) of the Act of June 18, 1934 (commonly known as the Foreign Trade Zones Act, 19 U.S.C. 81c(b)), is amended by striking out “June 30, 1986” and inserting in lieu thereof “January 1, 1991”. SEC. 1784. UDIMETHYL–3.5-DIPHENYLPYRAZOLIUM METHYL SULFATE (DIFENZOQUAT METHYL SULFATE). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.24 1,2-Dimethyl-3,5-diphenylpyrazolium methyl sulfate (difenzoquat methyl sulfate) (provided for in item 408.19, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1785. TRIALLATE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.64 S-(2,3,3*-trichlorallyl)-diisopropyl-thiocarbamate (provided for in item 425.36, par 2D), schedule 4) Free No change On or before 12/31/90  ”, SEC. 1786. m-NITRO-p-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.56 m-Nitro-paniadine (provided for in item 405.09, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1787. DINOCAP AND MIXTURES OF DINOCAP AND MANCOZEB. (a) Dinocap and Application Adjuvants.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: “  907.98 Dinocap (provided for in item 408.16 part 1C, schedule 4) Free No change On or before 12/31/90 907.99 Mixtures of dinocap and application adjuvants (provided for in item 408.38, part 1C, schedule 4) Free No change On or before 12/31/90  ”, (b) Mixtures of Dinocap and Mancozeb.— Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.28 Mixtures of mancozeb and dinocap (provided for in item 408.38, part 1C, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1788. m-NITRO-O-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.28 m-Nitro-o-anisidine (provided for in item 405.07, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1789. p-NITRO-O-TOLUIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence to the following new item: “  907.37 p-Nitro-o-toluidine (provided for in item 404.88, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1790. PHENYLCARBETHOXYPYRAZOLONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.31 Phenylcarbethoxy-pyrazolone (provided for in item 406.39, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1791. p-NITRO-O-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.14 p-Nitro-o-anisidine (provided for in item 405.07, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1792. CARBODIIMIDES. (a) Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.70 Bis(o-tolyl) carbodiimide; 2,2’,6,6’-Tetrakisopropyl-diphenyl carbodiimide; Poly(nitrilomethanetetraaryl-nitrilo[2,4,6-tris(1-methylethyl)-1,3-phenylene], 2,6-bis(1-methylethyl)phenyl)-omega-[[[2,6-bis(1-methylethyl)phenyl]amino)methylene]amino]; and Benezene, 2,4-diisocyanato-1,3,5-tris(1-methylethyl)-homopolymer (provided for in item 405.53, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1793. TRIETHYLENE GLYCOL DICHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.73 Triethylene glycol dichloride (provided for in item 428.47, part 2D, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1794. MIXTURES OF 5-CHLORO-2-METHYL-4-ISOTHIAZOLIN-3-ONE, 2-METHYL-4-ISOTHIAZOLIN-3-ONE, MAGNESIUM CHLORIDE, STABILIZERS AND APPLICATION ADJUVANTS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.16 Mixtures of 5-chloro-2-methyl-4-isothiazolin-3-one, 2-methyl-4-isothiazolin-3-one, magnesium chloride, stabilizers and application adjuvants (provided for in item 432.28, part 2E, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1795. 2-NOCTYL-4-ISOTHIAZOLIN-3-ONE, AND ON MIXTURES OF 2-NOCTYL-4-ISOTHIAZOLIN-3-ONE AND APPLICATION ADJUVANTS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.17 2-n-Octyl-4-isothiazolin-3-one, and mixtures of 2-n-octyl-4-isothiazolin-3-one and application adjuvants (provided in items 425.52 and 430.20, part 2D, schedule 4 Free No change On or before 12/31/90  ”, SEC. 1796. WEAVING MACHINES FOR FABRICS IN EXCESS OF 16 FEET WIDTH. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  912.48 Power-driven weaving machines for weaving fabrics more than sixteen feet in width, and parts thereof (provided for in item 670.14 and 670.74, part 4E, schedule 6) Free No change On or before 12/31/90  ”, SEC. 1797. BARBITURIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.50 Barbituric acid (provided for in item 437.36, part 3B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1798. 3-METHYL-5-PYRAZOLONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  907.46 3-Methyl-5-pyrazolone (provided for in item 425.52, part 2D, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1799. 3-METHYL-l-(PTOLYL)-2-PYRAZOLIN-5-ONE (PTOLYL METHYL PYRAZOLONE). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.15 3-Methyl-1-(p-tolyl)-2-pyrazolin-5-one (p-Tolyl methyl pyrazolone) (provided for in item 406.36, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1800. CERTAIN OFFSET PRINTING PRESSES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  911.93 Offset printing presses of the sheet-fed type weighing 3,500 pounds or more (provided for in item 668.21, part 4D, schedule 6) Free No change On or before 12/31/90  ”, SEC. 1801. FROZEN CRANBERRIES. Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States is amended by inserting in numerical sequence the following item: “  903.63 Cranberries, frozen (provided for in item 146.71, part 9B, schedule 1) Free No change On or before 12/31/90  ”, SEC. 1802. m-HYDROXYBENZOIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: “  908.18 m-Hydroxybenzoic acid (provided for in item 404.40, part 1B, schedule 4) Free No change On or before 12/31/90  ”, SEC. 1803. CERTAIN BENZENOID CHEMICALS. Subpart B of part 1 of the Appendix is amended— (1) by inserting in numerical sequence the following new item: “  908.32 N1,N4,N4-Tris(2-hydroxyethyl)-2-nitro-1,4-phenylenediamine; N1,N4-Dimethyl-N1-(2-hydroxyethyl)-3-nitro-1,4-phenylenediamine; N1,N4-Dimethyl-N1-(2,3-dihydroxypropyl)-3-nitro-1,4-phenylenediamine; and N1-(2-Hydroxyethyl)-3-nitro-1,4-phenylenediamine (provided for in item 405.90, part 1B, schedule 4) Free No change On or before 12/1/90  ” (2) by inserting in numerical sequence the following new item: “  908.33 N1-(2-Hydroxyethyl)-2-nitro-1,4-phenylenediamine (provided for in item 405.07, part 1B, schedule 4) Free No change On or before 12/1/90  ”, and (3) by inserting in numerical sequence the following new item: “  908.34 2-Nitro-5-(2,3-dihydroxypropoxy)-N-methylaniline; 2-Nitro-5-(2-hydroxyethoxy)-N-methylaniline; 4-(2-Hydroxyethylamino)-3-nitrophenol; 4-(2-Hydroxyethoxy)-1,3-phenylenediamine dihydrochloride; and 3-Methoxy-4-(2-hydroxyethylamino)nitrobenzene (provided for in item 405.09, part 1B, schedule 4) Free No change On or before 12/1/90  ” SEC. 1804. EXTENSION OF CERTAIN SUSPENSION PROVISIONS. (a) Provisions That Expired Before 1987.— Each of the following items are amended by striking out the date in the effective date column and inserting in lieu thereof “12/31/90”: (1) Item 903.65 (relating to cantaloupes). (2) Items 905.10 and 905.11 (relating to certain wools). (3) Items 906.10 and 906.12 (relating to needlecraft display models). (4) Item 907.01 (relating to triphenyl phosphate). (5) Item 907.14 (relating to isomeric mixtures of ethylbiphenyl). (6) Item 907.17 (relating to sulfapyridine). (7) Item 911.25 (relating to synthetic rutile). (8) Item 911.95 (relating to certain clock radios). (9) Item 912.07 (relating to machines designed for heat-set, stretch texturing of continuous man-made fibers). (10) Item 912.20 (relating to certain small toys). (11) Items 912.30, 912.34, and 912.36 (relating to stuffed dolls, certain toy figures, and skins thereof). (12) Item 912.45 (relating to umbrella frames). (13) Item 903.60 (relating to mixtures of mashed or macerated hot red peppers and salt). (b) Provisions Expiring In 1987 or Later.— Each of the following items is amended by striking out the date in the effective date column and inserting in lieu thereof “12/31/90”: (1) Items 903.70 and 903.80 (relating to crude feathers and down). (2) Item 905.50 (relating to surgical gowns). (3) Item 906.50 (relating to diphenylguanidine and diorthotolylguanidine). (4) Item 906.57 (relating to mtoluic acid). (5) Item 907.13 (relating to menthol feedstocks). (6) Item 907.19 (relating to sulfathiazole). (7) Item 907.21 (relating to flecainide acetate). (8) Item 907.23 (relating to o-Benzyl-pchlorophenol). (9) Item 907.31 (relating to BNaphthol). (10) Item 907.32 (relating to 3,3-Diaminobenzidine). (11) Item 907.33 (relating to acetylsulfaguanidine). (12) Item 907.34 (relating to 6-Amino-l-naphtho-l-3-sulfonic acid). (13) Item 907.35 (relating to 2-(4-Aminophenyl)-6-methylbenzothiazole-7-sulfonic acid). (14) Item 907.36 (relating to sulfamethazine). (15) Item 907.37 (relating to sulfaguanidine). (16) Item 907.38 (relating to sulfaquinoxaline and sulfanilamide). (17) Item 907.63 (relating to nicotine resins). (18) Item 907.79 (relating to irondextran complex). (19) Item 909.01 (relating to natural graphite). (20) Item 912.04 (relating to certain narrow weaving ma-chines). (21) Item 912.11 (relating to certain lace-braiding machines). (22) Item 905.40 (relating to certain hovercraft skirts). (23) Item 906.52 (relating to 5-chloro-2-methyl-4-isothiazolin-3- one, 2-methyl-4-isothiazolin-3-one, magnesium chloride and magnesium nitrate). (c) Technical Amendments.— (1) Item 906.10 is amended— (A) by striking out “365.78” and inserting in lieu thereof “365.66”, (B) by striking out “365.86” and inserting in lieu thereof “365.89”, (C) by striking out “367.34” and inserting in lieu thereof “367.32”, (D) by striking out “367.60” and inserting in lieu thereof “367.63”, (E) by striking out “386.13” and inserting in lieu thereof “386.12”, and (F) by striking out “386.50” and inserting in lieu thereof “386.53”. (2) Item 906.12 is amended by striking out “383.03, 383.08, 383.20, and 383.50” and inserting in lieu thereof “384.04, 384.09, 384.22, and 384.52”. (3) Item 907.14 is amended by striking out “407.16” and inserting in lieu thereof “407.19”. (4) Item 912.45 is amended by striking out “751.20” and inserting in lieu thereof “751.21”. (5) Item 907.21 is amended by striking out “412.12” and inserting in lieu thereof “412.11”. Subpart C— Effective Dates SEC 1831. EFFECTIVE DATES. (a) In General.— Except as otherwise provided in this section, the amendments made by this part shall apply with respect to articles entered, or withdrawn from warehouse for consumption, after September 30, 1988. (b) Retroactive Application for Certain Liquidations and Liquidations.— (1) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the appropriate customs officer after September 30, 1988, and before April 1, 1989, any entry— (A) which was made after the applicable date and before October 1, 1988, and (B) with respect to which there would have been no duty or a lesser duty if any amendment made by— (i) section 1716, 1717, 1719(b)(2), 1731, 1736, 1740, 1742(a), 1747, or 1773, (ii) subsection (a), (b), (d), or (e) of section 1783, or (iii) section 1804 (other than section 1804(a)(7) and paragraphs (2) and (10) of section 1804(b)), applied to such entry, shall be liquidated or reliquidated as though such amendment applied to such entry. (2) For purposes of this section— (A) The term “applicable date” means— (i) if the amendment described in paragraph (1)(B) is made by section 1717 or 1747, December 31, 1982, (ii) if such amendment is made by section 1804(a)(1), May 15, 1985, (iii) if such amendment is made by paragraph (2), (3), (5), or (13) of section 1804(a), June 30, 1985, (iv) if such amendment is made by section 1773, July 1, 1985, (v) if such amendment is made by section 1731, 1742(a), or 1804(a)(4), September 30, 1985, (vi) if such amendment is made by section 1736, October 31, 1985, (vii) if such amendment is made by section 1716 or by paragraph (6), (9), or (11) of section 1804(a), December 31, 1985, (viii) if such amendment is made by section 1740, May 31, 1986, (ix) if such amendment is made by subsection (b), (d), or (e) of section 1783, June 30, 1986, (x) if such amendment is made by paragraph (8), (10), or (12) of section 1804(a), December 31, 1986, (xi) if such amendment is made by section 1783(a) or 1804(b) (other than by paragraph (2) or (10) of section 1804(b)), December 31, 1987, or (xii) if such amendment is made by section 1719(b)(2), the date that is 15 days after the date of enactment of this Act (B) The term “entry” includes any withdrawal from ware-house. (c) Hosiery Knitting Machines and Needles.— Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the appropriate customs officer after September 30, 1988, and before April 1, 1989— (1) any entry of an article described in item 912.08 of the Tariff Schedules of the United States (as in effect on September 30, 1985) that was made— (A) after September 30, 1985, and (B) before the date that is 15 days after the date of enactment of this Act, shall be liquidated or reliquidated as though such entry had been made on September 30, 1985; and (2) any entry of an article described in item 912.09 of such Schedules (as in effect on June 30, 1985) that was made— (A) after June 30, 1985, and (B) before the date that is 15 days after the date of enactment of this Act, shall be liquidated or reliquidated as though such entry had been made on June 30, 1985. PART II— MISCELLANEOUS PROVISIONS SEC. 1841. CERTAIN STRUCTURES AND PARTS USED IN THE W.M. KECK OBSERVATORY PROJECT, MAUNA KEA, HA WAIL The Secretary of the Treasury is authorized and directed to admit free of duty after September 30, 1988, the following articles for the use of the California Association for Research in Astronomy in the construction of the optical telescope for the W.M. Keck Observatory Project, Mauna Kea, Hawaii: (1) The telescope structure. (2) The observatory domes, produced by Brittain Steel, Ltd., of Vancouver, British Columbia, Canada. (3) The primary mirror blanks, produced by the Schott Glass-works, Frankfurt, Federal Republic of Germany. If the liquidation of the entry of any such article has become final before October 1, 1988, the entry shall, notwithstanding any other provision of law, be reliquidated on October 1, 1988, in accordance with the provisions of this section and the appropriate refund of duty made at the time of such reliquidation. SEC 1842. RELIQUIDATION OF CERTAIN ENTRIES AND REFUND OF ANTI-DUMPING DUTIES. (a) In General.— Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law, the entries listed in subsection (b) shall be reliquidated on October 1, 1988, without liability of the importer of record for antidumping duties, and if any such duty has been paid, either through liquidation or compromise under sedion 617 of the Tariff Ad of 1930 (19 U.S.C. 1617), refund thereof shall be made on October 1, 1988. (b) Specific Entries.— The entries referred to in subsedion (a) are as follows: Entry Number. Date of Entry. 144549 March 26, 1976 150297 April 27, 1976 152729 May 11, 1976 156068 May 26, 1976 161653 June 23, 1976 Entry Number. Date of Entry. 168759 July 30, 1976 173393 August 25, 1976 175173 September 3, 1976 178811 September 23, 1976 108842 November 18, 1976 113000 December 9, 1976 115229 December 21, 1976 120070 January 17, 1977 120908 January 20, 1977 121403 January 24, 1977 130005 March 10, 1977. SEC 1843. RELIQUIDATION OF CERTAIN TUBULAR TIN PRODUCTS. Notwithstanding any provision of the Tariff Act of 1930 or any other provision of the law to the contrary, the Secretary of the Treasury shall reliquidate on or after October 1, 1988, as free of duty under item 911.12 of the Appendix to the Tariff Schedules of the United States, as in effect at the time of entry, the entries numbered 00329493 (dated March 16, 1979), 00329494 (dated March 13, 1979), 00329495 (dated March 28, 1979), and 00330003 (dated March 21, 1979), made at New York, and covering tubular tin products, if a certificate of actual use (remelt certificate) for the articles covered by the four entries is submitted to the United States Customs Service at the port of entry after September 30, 1988, and before April 1, 1989. SEC. 1844. CERTAIN EXTRACORPOREAL SHOCK WAVE LITHOTRIPTER IMPORTED FOR USE IN HAWAII. Notwithstanding any other provision of law— (1) the entry, or withdrawal from warehouse, for consumption in October 1986 of any extracorporeal shock wave lithotripter exclusively for use in the State of Hawaii shall be free of duty and, upon a request filed with the appropriate customs officer after September 30, 1988, and before April 1, 1989, shall be reliquidated in accordance with the provisions of this section, and (2) the appropriate refund of any duties paid on such entry or withdrawal shall be made after September 30, 1988. SEC. 1845. EXTENSION OF THE FILING PERIOD FOR RELIQUIDATION OF CERTAIN ENTRIES. Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the customs officer concerned after September 30, 1988, and before April 1, 1989, the entry of any article described in item 687.70 of the Tariff Schedules of the United States which was made on or after March 1, 1985, and before November 6, 1986, shall be liquidated or reliquidated as though such entry had been made on November 6, 1986. Subtitle H— Miscellaneous Customs, Trade, and Other Provisions PART 1— CUSTOMS PROVISIONS SEC. 1901. ENFORCEMENT OF THE RESTRICTIONS AGAINST IMPORTED PORNOGRAPHY. (a) In General.— Section 305 of the Tariff Act of 1930 (19 U.S.C. 1305) is amended as follows: (1) The second paragraph of subsection (a) is designated as subsection (b) and the following side heading, appropriately indented, is inserted before “Upon” at the beginning of the paragraph: “(b) Enforcement Procedures.—”. (2) The second sentence of subsection (b) (as redesignated by paragraph (1)) is amended to read as follows: “Upon the seizure of such book or matter, such customs officer shall transmit information thereof to the United States attorney of the district in which is situated either— “(1) the office at which such seizure took place; or “(2) the place to which such book or matter is addressed; and the United States attorney shall institute proceedings in the district court for the forfeiture, confiscation, and destruction of the book or matter seized.”. (3) The following new subsections are added at the end thereof: “(c) Notwithstanding the provisions of subsections (a) and (b), whenever a customs officer discovers any obscene material after such material has been imported or brought into the United States, or attempted to be imported or brought into the United States, he may refer the matter to the United States attorney for the institution of forfeiture proceedings under this section. Such proceedings shall begin no more than 30 days after the time the material is seized; except that no seizure or forfeiture shall be invalidated for delay if the claimant is responsible for extending the action beyond the allowable time limits or if proceedings are postponed pending the consideration of constitutional issues. “(d) Upon motion of the United States, a court shall stay such civil forfeiture proceedings commenced under this section pending the completion of any related criminal matter.”. (b) Effective Date.— The amendments made by subsection (a) apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act. SEC. 1902. TARE ON CRUDE OIL AND PETROLEUM PRODUCTS. (a) In General.— Section 507 of the Tariff Act of 1930 (19 U.S.C. 1507) is amended— (1) by striking out “The Secretary” and inserting in lieu thereof “(a) In General.—The Secretary”, (2) by striking out “in no case shall there be” and inserting in lieu thereof “(except as otherwise provided in this section) there shall not be”, and (3) by adding at the end thereof the following new subsection: “(b) Crude Oil and Petroleum Products.— In ascertaining tare on imports of crude oil, and on imports of petroleum products, allowance shall be made for all detectable moisture and impurities present in, or upon, the imported crude oil or petroleum products.”. (b) Effective Date.— The amendment made by this sedion shall 19 USC 1507 note. apply with reaped to articles entered, or withdrawn from warehouse for consumption, after October 1, 1987. SEC. 1903. ELIGIBLE ARTICLES UNDER THE GENERALIZED SYSTEM OF PREFERENCES. Section 503(c)(1)(B) of the Trade Ad of 1974 (19 U.S.C. 2463(c)(1)(B)) is amended to read as follows: “(B) watches, except those watches entered after June 30, 1989, that the President specifically determines, after public notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions,”. SEC 1904. CUSTOMS BOND CANCELLATION STANDARDS. Sedion 623(c) of the Tariff Ad of 1930 (19 U.S.C. 1623(c)) is amended by adding at the end thereof the following new sentence: “In order to assure uniform, reasonable, and equitable decisions, the Secretary of the Treasury shall publish guidelines establishing standards for setting the terms and conditions for cancellation of bonds or charges thereunder.”. SEC 1905. CUSTOMS SERVICES AT PONTIAC/OAKLAND, MICHIGAN, AIRPORT. Sedion 236 of the Trade and Tariff Ad of 1984 (19 U.S.C. 586) is 19 USC 58b. amended— (1) by striking out “and” at the end of subsedion (a)(1); (2) by redesignating paragraph (2) of subsection (a) as paragraph (3); (3) by inserting after paragraph (1) of subsedion (a) the following new paragraph: “(2) the airport located at Pontiac/Oakland, Michigan, and”; and (4) by striking out “20” in subsection (c). SEC. 1906. SENSE OF CONGRESS REQUESTING THE PRESIDENT TO INSTRUCT THE SECRETARY OF THE TREASURY TO ENFORCE SECTION 307 OF THE TARIFF ACT OF 1930 WITHOUT DELAY. (a) Congressional Findings.— The Congress finds that— (1) its February 1983 report to the Congress on forced labor in the Union of Soviet Socialist Republics, the Department of State confirmed that Soviet forced labor is used “to produce large amounts of primary and manufactured goods for both domestic and Western export markets”, and that such labor is used as an integral part of Soviet national economy; (2) the Central Intelligence Agency has compiled a list of over three dozen products made by Soviet forced labor and imported by the United States, and that items on the September 27, 1983 list include chemicals, gold, uranium, aluminum, wood products and glassware; (3) the International Commission on Human Rights has concluded that the Soviet Union “continues the deplorable practice of forced labor in manufacturing and construction projects” and that prisoners “are forced to work under conditions of extreme hardship including malnutrition, inadequate shelter and clothing, and severe discipline”; (4) the Congress is on record as opposing forced labor, having enacted a prohibition (in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307)) on the importation of goods made with such labor and having passed in the Ninety-eighth Congress by unanimous vote a resolution calling such practices morally reprehensible and calling upon the President to express to the Soviet Union the opposition of the United States to such policies; (5) the prohibition enacted by the Congress declares that “goods, wares, articles, and merchandise mined, produced or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof is hereby prohibited”; (6) there is ample knowledge of the Soviet forced labor system to require enforcement of the prohibition contained in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307); and (7) the delay in enforcing the law brings into question the commitment of the United States to protest the inhumane treatment of prisoners in the Soviet Gulag, an estimated ten thousand of whom are political and religious prisoners according to the Department of State. (b) Sense of Congress.— It is the sense of the Congress that the President should express to the Soviet Union in the firmest possible terms the strong moral opposition of the United States to the slave labor policies of the Soviet Union by every means possible, including refusing to permit the importation into the United States of any products made in whole or in part by such labor. (c) Presidential Action.— The President is hereby requested to instruct the Secretary of the Treasury to enforce section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) without delay. SEC. 1907. IMPORT MARKING PROVISIONS. (a) Increase in Penalty for Violations of Country-of-Origin Marking Requirements.— (1) Section 304(h) of the Tariff Act of 1930 (19 U.S.C. 1304(h)) is amended to read as follows: “(h) Penalties.— Any person who, with intent to conceal the information given thereby or contained therein, defaces, destroys, removes, alters, covers, obscures, or obliterates any mark required under the provisions of this Act shall— “(1) upon conviction for the first violation of this subsection, be fined not more than $100,000, or imprisoned for not more than 1 year, or both; and “(2) upon conviction for the second or any subsequent violation of this subsection, be fined not more than $250,000, or imprisoned for not more than 1 year, or both.”. (2) (A) The amendment made by paragraph (1) applies with respect to acts committed on or after the date of the enactment of this Act. (B) The conviction of a person under section 304(h) of the Tariff Act of 1930 for an act committed before the date of the enactment of this Act shall be disregarded for purposes of applying paragraph (2) of such subsection (as added by the amendment made by paragraph (1) of this subsection. (b) Marking of Containers of Imported Mushrooms.— Imported preserved mushrooms shall not be considered to be in compliance with section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) or any other law relating to the marking of imported articles unless the containers thereof indicate in English the country in which the mushrooms were grown. (c) Native-American Style Jewelry and Native-American Style Arts and Crafts.— By no later than the date that is 1 year after the date of enactment of this Act, the Secretary of the Treasury shall prescribe and implement regulations under section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) which require, to the greatest extent possible, that all Native-American style jewelry and Native-American style arts and crafts that are imported into the United States have the English name of the country of origin of such jewelry or arts and crafts indelibly marked in a conspicuous place on such jewelry or arts and crafts by a permanent method of marking. SEC. 1908. DUTY-FREE SALES ENTERPRISES. (a) Findings.— The Congress finds that— (1) duty-free sales enterprises play a significant role in attracting international passengers to the United States and thereby their operations favorably affect our balance of payments; (2) concession fees derived from the operations of authorized duty-free sales enterprises constitute an important source of revenue for the State, local and other governmental authorities that collect such fees; (3) there is inadequate statutory and regulatory recognition of, and guidelines for the operation of, duty-free sales enterprises; and (4) there is a need to encourage uniformity and consistency of regulation of duty-free sales enterprises. (b) In General.— Section 555(b) of the Tariff Act of 1930 (19 U.S.C. 1555(b)) is amended to read as follows: “(b) Duty-Free Sales Enterprises.— “(1) Duty-free sales enterprises may sell and deliver for export from the customs territory duty-free merchandise in accordance with this subsection and such regulations as the Secretary may prescribe to carry out this subsection. “(2) A duty-free sales enterprise may be located anywhere within— “(A) the same port of entry, as established under section 1 of the Act of August 24, 1912 (37 Stat. 434), from which a purchaser of duty-free merchandise departs the customs territory; or “(B) 25 statute miles from the exit point through which the purchaser of duty-free merchandise will depart the customs territory. “(3) Each duty-free sales enterprise— “(A) shall establish procedures to provide reasonable assurance that duty-free merchandise sold by the enterprise will be exported from the customs territory; “(B) if the duty-free sales enterprise is an airport store, shall establish and enforce, in accordance with such regulations as the Secretary may prescribe, restrictions on the sale of duty-free merchandise to any one individual to personal use quantities; “(C) shall display in prominent places within its place of business notices which state clearly that any duty-free merchandise purchased from the enterprise— “(i) has not been subject to any Federal duty or tax, “(ii) if brought back into the customs territory, must be declared and is subject to Federal duty and tax, and “(iii) is subject to the customs laws and regulation of any foreign country to which it is taken; “(D) shall not be required to mark or otherwise place a distinguishing identifier on individual items of merchandise to indicate that the items were sold by a duty-free sales enterprise, unless the Secretary finds a pattern in which such items are being brought back into the customs territory without declaration; “(E) may unpack merchandise into saleable units after it has been entered for warehouse and placed in a duty-free sales enterprise, without requirement of further permits; and “(F) shall deliver duty-free merchandise— “(i) in the case of a duty-free sales enterprise that is an airport store— “(I) to the purchaser (or a family member or companion traveling with the purchaser) in an area that is within the airport and to which access to passengers is restricted to those departing from the customs territory; “(II) to the purchaser (or a family member or companion traveling with the purchaser) at the exit point of a specific departing flight; “(III) by placing the merchandise within the aircraft on which the purchaser will depart for carriage as passenger baggage; or “(IV) if the duty-free sales enterprise has made a good faith effort to effect delivery for exportation through one of the methods described in subclause (I), (II), or (III) but is unable to do so, by any other reasonable method to effect delivery; or “(ii) in the case of a duty-free sales enterprise that is a border store— “(I) at a merchandise storage location at or beyond the exit point; or “(II) at any location approved by the Secretary before the date of enactment of the Omnibus Trade Act of 1987. “(4) If a State or local or other governmental authority, incident to its jurisdiction over any airport, seaport, or other exit point facility, requires that a concession or other form of approval be obtained from that authority with respect to the operation of a duty-free sales enterprise under which merchandise is delivered to or through such facility for exportation, merchandise incident to such operation may not be withdrawn from a bonded warehouse and transferred to or through such facility unless the operator of the duty-free sales enterprise demonstrates to the Secretary that the concession or approval required for the enterprise has been obtained. “(5) This subsection does not prohibit a duty-free sales enterprise from offering for sale and delivering to, or on behalf of, individuals departing from the customs territory merchandise other than duty-free merchandise, except that such other merchandise may not be stored in a bonded warehouse facility other than a bonded facility used for retail sales. “(6) Merchandise that is purchased in a duty-free sales enterprise is not eligible for exemption from duty under subpart A of part 2 of schedule 8 of the Tariff Schedules of the United States if such merchandise is brought back to the customs territory. “(7) The Secretary shall by regulation establish a separate Regulations. class of bonded warehouses for duty-free sales enterprises. Regulations issued to carry out this paragraph shall take into account the unique characteristics of the different types of duty-free sales enterprises. “(8) For purposes of this subsection— “(A) The term ‘airport store’ means a duty-free sales enterprise which delivers merchandise to, or on behalf of, individuals departing from the customs territory from an international airport located within the customs territory. “(B) The term ‘border store’ means a duty-free sales enterprise which delivers merchandise to, or on behalf of, individuals departing from the customs territory through a land or water border by a means of conveyance other than an aircraft. “(C) The term ‘customs territory’ means the customs territory of the United States and foreign trade zones. “(D) The term ‘duty-free sales enterprise’ means a person that sells, for use outside the customs territory, duty-free merchandise that is delivered from a bonded warehouse to an airport or other exit point for exportation by, or on behalf of, individuals departing from the customs territory. “(E) The term ‘duty-free merchandise’ means merchandise sold by a duty-free sales enterprise on which neither Federal duty nor Federal tax has been assessed pending exportation from the customs territory. “(F) The term ‘exit point’ means the area in close proximity to an actual exit for departing from the customs territory, including the gate holding area in the case of an airport, but only if there is reasonable assurance that duty-free merchandise delivered in the gate holding area will be exported from the customs territory. “(G) The term ‘personal use quantities’ means quantities that are only suitable for uses other than resale, and includes reasonable quantities for household or family consumption as well as for gifts to others.”. (c) Effective Date.— The amendment made by this section shall 19 USC 1555 note. take effect on the date that is 15 days after the date of enactment of this Act. SEC. 1909. CARIBBEAN BASIN INITIATIVE. (a) Findings.— The Congress finds that— (1) Caribbean and Central American countries historically have had close economic, political, and cultural ties to the United States; (2) promoting economic and political stability in the Carib-bean and Central America is in the national security interests of the United States; (3) the economic and political stability of the nations of the Caribbean and Central America can be stengthened significantly by the attraction of foreign and domestic investment specifically devoted to employment generation; and (4) the diversification of the economies and expansion of exports, particularly those of a non-traditional nature, of the nations of the Caribbean and Central America is linked directly to fair access to the markets of the United States. (b) Intent of the Congress.— The Congress hereby expresses its intention to ensure that— (1) the trade elements of the Caribbean Basin Initiative be strengthened in a manner consistent with the promotion of economic and political stability in the Caribbean and Central America; (2) to the extent that Congress imposes changes that are intended to improve the competitive environment for United States industry and workers, such changes do not unduly affect the unilateral duty-free trade system available to the beneficiary countries designated under the Caribbean Basin Economic Recovery Act; and (3) generic changes in the trade laws of the United States do not discriminate against imports from designated beneficiary countries in relation to imports from other United States trading partners. (c) Withdrawal or Suspension of Duty-Free Treatment to Specific Articles.— Subsection (e) of section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(e)) is amended to read as follows: “(e) (1) The President may, after the requirements of subsection (a)(2) and paragraph (2) have been met— “(A) withdraw or suspend the designation of any country as a beneficiary country, or “(B) withdraw, suspend, or limit the application of duty-free treatment under this subtitle to any article of any country, if, after such designation, the President determines that as a result of changed circumstances such country would be barred from designation as a beneficiary country under subsection (b). “(2) (A) The President shall publish in the Federal Register notice of the action the President proposes to take under paragraph (1) at least 30 days prior to taking such action. “(B) The United States Trade Representative shall, within the 30-day period beginning on the date on which the President publishes under subparagraph (A) notice of proposed action— “(i) accept written comments from the public regarding such proposed action, “(ii) hold a public hearing on such proposed action, and “(iii) publish in the Federal Register— “(I) notice of the time and place of such hearing prior to the hearing, and “(II) the time and place at which such written comments will be accepted.”. SEC. 1910. ETHYL ALCOHOL AND MIXTURES FOR FUEL USE. (a) In General.— Subsection (b) of section 423 of the Tax Reform Act of 1986 (19 U.S.C. 2703, note) is amended— (1) by striking out “and 1988” in paragraphs (1) and (2) and inserting in lieu thereof “, 1988, and 1989”, (2) by striking out “an insular possession of the United States or” in paragraph (1)(A), (3) by striking out “January 1, 1986, or” in paragraph (1)(A) and inserting in lieu thereof “July 1, 1987,”, (4) by inserting “or an insular possession of the United States” after “beneficiary country” in paragraph (1)(B)(ii)(II), (5) by striking out the period at the end of paragraph (1)(B) and inserting in lieu thereof “, or”, (6) by inserting the following new subparagraph after subparagraph (B) of paragraph (1): “(C) a distillation facility operated by a corporation which, before the date of enactment of the Omnibus Trade Act of 1987— “(i) has completed engineering and design of a full-scale Virgin Islands. fermentation facility in the United States Virgin Islands, and “(ii) has obtained authorization from authorities of the United States Virgin Islands to operate a full-scale fermentation facility. , and (7) by striking out “or (B)” in paragraph (2) and inserting in lieu thereof “, (B), or (C)”. (b) Studies.— (1) The United States International Trade Commission and the Comptroller General of the United States shall each immediately undertake a study regarding whether the definition of indigenous ethyl alcohol or mixtures thereof used in applying section 423 of the Tax Reform Act of 1986 is consistent with, and will contribute to the achievement of, the stated policy of Congress to encourage the economic development of the beneficiary countries under the Caribbean Basin Economic Recovery Act and the insular possessions of the United States through the maximum utilization of the natural resources of those countries and possessions. Each study shall specifically include— (A) an assessment regarding whether the indigenous product percentage requirements set forth in subsection (c)(2)(B) of such section 423 are economically feasible for ethyl alcohol producers; and (B) if the assessment under subparagraph (A) is negative, recommended modifications to the indigenous product percentage requirements that— (i) will ensure meaningful production and employment in the region, (ii) will discourage pass-through operations, and (iii) will not result in harm to producers of ethyl alcohol, or mixtures thereof, in the United States; and (C) an assessment of the effects of imports of ethyl alcohol, and mixtures thereof, from such beneficiary countries and possessions on producers of ethyl alcohol, and mixtures thereof, in the United States. (2) The United States International Trade Commission and the Comptroller General of the United States shall each submit a report containing the findings and conclusions of the study carried out under this subsection to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate before the 180th day after the date of the enactment of this Act. SEC. 1911. ENFORCEMENT OF RESTRICTIONS ON IMPORTS FROM CUBA. The United States Trade Representative shall request that all relevant agencies prepare appropriate recommendations for improving the enforcement of restrictions on the importation of articles from Cuba. Such recommendations should include, but not be limited to, appropriate measures to prevent indirect shipments or other Reports. means of circumvention. The United States Trade Representative shall, after considering such recommendations, report to the Congress, within 90 days after the date of enactment of this Act, on any administrative measures or proposed legislation which the United States Trade Representative considers necessary and appropriate to enforce restrictions on imports from Cuba. SEC. 1912. CUSTOMS FORFEITURE FUND. Section 613A of the Tariff Act of 1930 (19 U.S.C. 1613b) is amended— (1) by striking out “beginning on the date of the enactment of this section, and ending on September 30, 1987,” in subsection (c) and inserting in lieu thereof “described in subsection (a) for which the fund is available to the United States Customs Service,”, and (2) by striking out “private citizens” in subsection (a)(iii) and inserting in lieu thereof “private persons”. PART 2— MISCELLANEOUS TRADE PROVISIONS SEC. 1931. TRADE STATISTICS. (a) Reporting of Import Statistics.— Subsection (e) of section 301 of title 13, United States Code, is amended by striking out the last sentence thereof. (b) Volumetric Index.— (1) The Director of the Census, in consultation with the Director of the Bureau of Economic Analysis and the Commissioner of Labor Statistics, shall conduct a study to determine the feasibility of developing, and of publishing, an index that measures the real volume of merchandise trade on a monthly basis, which would be reported simultaneously with the balance of merchandise trade for the United States. (2) The Director of the Census shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the study conducted under paragraph (1) by no later than the date that is one year after the date of enactment of this Act. SEC. 1932. ADJUSTMENT OF TRADE STATISTICS FOR INFLATION AND DEFLATION. Subsection (e) of section 301 of title 13, United States Code, is amended by adding at the end thereof the following new sentence: “The information required to be reported under this subsection shall be reported in a form that is adjusted for economic inflation or deflation (on a constant dollar basis consistent with the reporting of the National Income and Product Accounts), and in a form that is not so adjusted.”. SEC. 1933. COAL EXPORTS TO JAPAN. It is the sense of the Congress that— (1) the objectives of the November 1983 Joint Policy Statement on Energy Cooperation, as it relates to United States exports of coal to Japan, have not been achieved; (2) the President should seek to establish reciprocity with Japan with respect to metallurgical coal exports and steel product imports and should encourage increased purchases by Japan of United States steam coal; (3) the President should direct the United States Trade Representative, in negotiating a Steel Trade Arrangement with Japan, to take into consideration, consistent with the President’s steel program, the amount of coal that Japan purchases from the United States in determining the level of steel, semi-finished steel and fabricated structured steel products that can be imported into the United States; and (4) the President should report to the Congress by November 1, 1988 regarding the results of the outcome of any negotiation undertaken in response to this section. SEC. 1934. PURCHASES OF UNITED STATES-MADE AUTOMOTIVE PARTS BY JAPAN. (a) Findings.— The Congress finds that— (1) the United States merchandise trade deficit reached the unprecedented level of $170,000,000,000 in 1986; (2) the United States trade deficit with Japan, which reached $59,000,000,000 in 1986, accounted for approximately one-third of the total deficit; (3) approximately one-half of the United States trade deficit with Japan was in motor vehicles and equipment; (4) while Japanese automobile firms based in Japan produced 7,800,000 passenger cars in 1986 and exported 2,300,000 cars to the United States, United States exports of auto parts to Japan were only about $300,000,000 in 1986; (5) United States automotive parts producers meet increasingly rigorous requirements for quality, just-in-time supply, and competitive pricing in the United States market; and (6) the market-oriented sector specific (MOSS) talks on auto parts are aimed at overcoming substantial market access barriers and increasing the access of United States auto parts producers to the original and replacement parts market rep-resented by Japanese automobiles produced in Japan, the United States, and third countries. (b) Sense of Congress.— The Congress— (1) strongly supports efforts being made by United States negotiators to expand significantly the opportunities for United States automotive parts producers to supply original and replacement parts for Japanese automobiles, wherever those automobiles may be produced; and (2) determines that success of the MOSS talks will be measured by a significant increase in sales by United States auto parts companies to Japanese vehicle companies and the initiation of long-term sourcing relationships between such companies. (c) Report on Outcome.— The United States Trade Representative and the Secretary of Commerce shall report to Congress at the conclusion of the MOSS talks on the outcome of the talks and on any agreements reached with Japan with respect to purchases by Japanese firms of United States automotive parts. SEC. 1935. EFFECT OF IMPORTS ON CRUDE OIL PRODUCTION AND REFINING CAPACITY IN THE UNITED STATES. The Secretary of Energy shall send to the Secretary of Commerce the results of the study conducted under section 3102 of the Omnibus Reports. Budget Reconciliation Act of 1986. Within 180 days of the receipt of the results of such study, the Secretary of Commerce shall report to the President and the Congress recommendations for actions which may be appropriate to address any impact of imports of crude oil and petroleum products on domestic crude oil exploration and production and the domestic petroleum refining capacity. SEC. 1935. STUDY OF TRADE BARRIERS ESTABLISHED BY AUTO PRODUCING COUNTRIES TO AUTO IMPORTS AND THE IMPACT ON THE UNITED STATES MARKET. (a) Study.— The United States Trade Representative shall conduct a study of formal and informal barriers which auto producing countries have established toward automobile imports and the impact of such barriers on diverting automobile imports into the United States. The study shall consider the impact of such barriers on automobile imports into the United States in the presence of, and in the absence of, voluntary restraint agreements between the United States and Japan. (b) Report.— The United States Trade Representative shall include the findings of the study conducted under subsection (a) in the first report that is submitted under section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241) after the date of enactment of this Act SEC. 1937. LAMB MEAT IMPORTS. Within 15 days after the date of the enactment of this Act, the United States International Trade Commission, pursuant to section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)), shall monitor and investigate for a period of 2 years the importation into the United States of articles provided for in item 106.30 of the Tariff Schedules of the United States (19 U.S.C. 1202) (relating to fresh, chilled, and frozen lamb meat). For purposes of any request made under subsection (d) of section 202 of the Trade Act of 1974 (as amended by section 1401 of this Act) within such 2-year period for provisional relief with respect to imports of such articles, the monitoring and investigation required under this section shall be treated as having been requested by the United States Trade Representative under paragraph (1)(B) of such subsection. PART 3— OTHER PROVISIONS SEC 1941. WINDFALL PROFIT TAX REPEAL. (a) In General.— Chapter 45 of the Internal Revenue Code of 1986 is repealed. (b) Conforming Amendments.— (1) Sections 6050C, 6076, 6232, 6429, 6430, and 7241 of the Internal Revenue Code of 1986 are repealed. (2) (A) Subsection (a) of section 164 of such Code is amended by striking paragraph (4) and redesignating the subsequent paragraphs as paragraphs (4) and (5), respectively. (B) The following provisions of such Code are each amended by striking “44, or 45” each place it appears and inserting “or 44”: (i) section 6211(a), (ii) section 6211(b)(2), (iii) section 6212(a), (iv) section 6213(a), (v) section 6213(g), (vi) section 6214(c), (vii) section 6214(d), (viii) section 6161(b)(1), (ix) section 6344(a)(1), and (x) section 7422(e). (C) Subsection (a) of section 6211 of such Code is amended by striking “44, and 45” and inserting “and 44”. (D) Subsection (b) of section 6211 of such Code is amended by striking paragraphs (5) and (6). (E) Paragraph (1) of section 6212(b) of such Code is amended— (i) by striking “chapter 44, or chapter 45” and inserting “or chapter 44”, and (ii) by striking “chapter 44, chapter 45, and this chapter” and inserting “chapter 44, and this chapter”. (F) Paragraph (1) of section 6212(c) of such Code is amended— (i) by striking “of chapter 42 tax” and inserting “or of chapter 42 tax”, and (ii) by striking “, or of chapter 45 tax for the same taxable period”. (G) Subsection (e) of section 6302 of such Code is amended— (i) by striking “(1) For” and inserting “For”, and (ii) by striking paragraph (2). (H) Section 6501 of such Code is amended by striking the subsection relating to special rules for windfall profit tax. (I) Section 6511 of such Code is amended by striking subsection (h) and redesignating subsection (i) as subsection (h). (J) Subsection (a) of section 6512 of such Code is amended— (i) by striking “of tax imposed by chapter 41” and inserting “or of tax imposed by chapter 41”, and (ii) by striking “, or of tax imposed by chapter 45 for the same taxable period”. (K) Paragraph (1) of section 6512(b) of such Code is amended— (i) by striking “of tax imposed by chapter 41” and inserting “or of tax imposed by chapter 41”, and (ii) by striking “, or of tax imposed by chapter 45 for the same taxable period”. (L) Section 6611 of such Code is amended by striking subsection (h) and redesignating subsections (i) and (j) as subsections (h) and (i), respectively. (M) Subsection (d) of section 6724 of such Code is amended— (i) by striking clause (i) in paragraph (1)(B) and re-designating clauses (ii) through (x) as clauses (i) through (ix), respectively, and (ii) by striking subparagraphs (A) and (K) of paragraph (2) and redesignating subparagraphs (B), (C), (D), (E), (F), (G), (H), (I), (J), (L), (M), (N), (O), (P), (Q), (R), (S), and (T) as subparagraphs (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), (Q), and (R), respectively. (N) Subsection (a) of section 6862 of such Code is amended by striking “44, and 45” and inserting “and 44”. (O) Section 7512 of such Code is amended— (i) by striking “, by chapter 33, or by section 4986” in subsections (a) and (b) and inserting “or chapter 33”, and (ii) by striking “, chapter 33, or section 4986” in subsections (b) and (c) and inserting “or chapter 33”. (3) (A) The table of contents of subtitle D of such Code is amended by striking the item relating to chapter 45. (B) The table of contents of subpart B of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6050C. (C) The table of contents of part V of such subchapter is amended by striking the item relating to section 6076. (D) The table of contents of subchapter C of chapter 63 of such Code is amended by striking the item relating to section 6232. (E) The table of contents of subchapter B of chapter 65 of such Code is amended by striking the items relating to sections 6429 and 6430. (F) The table of contents of part II of subchapter A of chapter 75 of such Code is amended by striking the item relating to section 7241. (4) (A) Section 280D of such Code is repealed. (B) The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 280D. (5) Paragraph (4) of section 291(b) of such Code is amended to read as follows: “(4) Integrated oil company defined.— For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer of crude oil to whom subsection (c) of section 613A does not apply by reason of paragraph (2) or (4) of section 613A(d).” (6) (A) Paragraph (3) of section 6654(f) of such Code is amended to read as follows: “(3) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages).” (B) Subparagraph (B) of section 6655(g)(1) of such Code is amended to read as follows: “(B) the credits against tax provided by part IV of subchapter A of chapter 1.” (7) Subparagraph (A) of section 193(b)(3) of such Code is amended by striking “section 4996(b)(8)9C)” and inserting “section 4996(b)(8)(C) as in effect before its repeal”. (c) Effective Date.— The amendments made by this section shall apply to crude oil removed from the premises on or after the date of the enactment of this Act.

    Effective date note
    Amendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as an Effective Date note under section 3001 of this title.

1 of 3 references resolved to an enrolled provision · 2 partial

Editorial Notes

References in Text

The Harmonized Tariff Schedule of the United States, referred to in text, is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 93–618, , 88 Stat. 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see References in Text note set out under section 2101 of this title and Tables.

Amendments

1988—Pub. L. 100–418 substituted “Harmonized Tariff Schedule of the United States” for “Tariff Schedules of the United States” and inserted “removal,” after “including”.

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–418 effective , and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as an Effective Date note under section 3001 of this title.

Executive Documents

Delegation of Functions

Authority of President under this section to embody rectifications, technical or conforming changes, or similar modifications in the Harmonized Tariff Schedule delegated to the United States Trade Representative by par. (4) of Proc. No. 6969, , 62 F.R. 4417.

Proc. No. 6914. To Modify the Allocation of Tariff-Rate Quotas for Certain Cheeses

Proc. No. 6914, , 61 F.R. 45851, provided:

1. On , Austria, Finland, and Sweden acceded to the European Communities (EC), and the EC customs union of 12 member countries (“EC-12”) was enlarged to a customs union of 15 member countries (“EC-15”). At that time, the EC-12, Austria, Finland, and Sweden withdrew their tariff schedules under the World Trade Organization and applied the common external tariff of the EC-12 to imports into the EC-15. The United States and the EC then entered into negotiations under Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade 1994 to compensate the United States for the resulting increase in some tariffs on U.S. exports to Austria, Finland, and Sweden.

2. On , the United States and the EC signed an agreement concluding the negotiations on compensation. To recognize the membership of Austria, Finland, and Sweden in the EC-15, the tariff-rate quota (TRQ) allocations for cheeses from these countries will become part of the total TRQ allocations for cheeses from the EC-15, but will be reserved for use by these countries through 1997.

3. Section 404(d)(3) of the Uruguay Round Agreements Act (URAA) (19 U.S.C. 3601(d)(3)) authorizes the President to allocate the in-quota quantity of a tariff-rate quota for any agricultural product among supplying countries or customs areas and to modify any allocation as the President determines appropriate. Pursuant to section 404(d)(3) of the URAA, I have determined that it is appropriate to modify the TRQ allocations for cheeses by providing that the TRQ allocations for cheeses from Austria, Finland, and Sweden will become part of the total TRQ allocations for cheeses from the EC-15, but will be reserved for use by these countries through 1997.

4. Section 604 of the Trade Act of 1974, as amended (“Trade Act”) (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTS) the substance of the relevant provisions of that Act, and of other Acts affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction. The modification of the TRQ allocations for cheeses is such an action.

5. In paragraph (3) of Proclamation 6763 of , I delegated my authority under section 404(d)(3) of the Trade Act [probably means section 404(d)(3) of the URAA, 19 U.S.C. 3601(d)(3)] to the United States Trade Representative (USTR). I have determined that it is appropriate to authorize the USTR to exercise my authority under section 604 of the Trade Act [19 U.S.C. 2483] to embody in the HTS the substance of any action taken by the USTR under section 404(d)(3) of the URAA.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 301 of title 3, United States Code, section 404(d)(3) of the URAA, and section 604 of the Trade Act do proclaim that:

(1) Additional U.S. notes to chapter 4 of the HTS are modified as specified in the Annex to this proclamation.

(2) The USTR is authorized to exercise my authority under section 604 of the Trade Act [19 U.S.C. 2483] to embody in the HTS the substance of any actions taken by USTR under section 404(d)(3) of the URAA [19 U.S.C. 3601(d)(3)].

(3) Any provisions of previous proclamations and Executive orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.

(4) This proclamation is effective on the date of signature of this proclamation, and the modifications to the HTS made by the Annex to this proclamation shall be effective on the dates that are specified in that Annex.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of August, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.

William J. Clinton.

Annex

The Annex of Proclamation 6914, which amended the Harmonized Tariff Schedule of the United States, is not set out under this section because the Harmonized Tariff Schedule is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

Credits

1975–1988 · 2 acts
  1. 1975Pub. L. 93–618, title VI, § 604, , 88 Stat. 2073
  2. 1988Pub. L. 100–418, title I, §§ 1213(a), 1214(j)(4), , 102 Stat. 1155, 1158.
Show as published

(Pub. L. 93–618, title VI, § 604, , 88 Stat. 2073; Pub. L. 100–418, title I, §§ 1213(a), 1214(j)(4), , 102 Stat. 1155, 1158.)

Parsed from the official OLRC USLM XML in data/usc_all/usc19.xml · release point 119-108 · OLRC build 2026-09-09

USLM identifier /us/usc/t19/s2483