[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4759 Enrolled Bill (ENR)]
H.R.4759
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To implement the United States-Australia Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``United States-
Australia Free Trade Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Disclosure of incorrect information.
Sec. 206. Enforcement relating to trade in textile and apparel goods.
Sec. 207. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Business confidential information.
Subtitle C--Cases Under Title II of the Trade Act of 1974
Sec. 331. Findings and action on goods from Australia.
TITLE IV--PROCUREMENT
Sec. 401. Eligible products.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement between
the United States and Australia, entered into under the authority
of section 2103(b) of the Bipartisan Trade Promotion Authority Act
of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between the
United States and Australia for their mutual benefit;
(3) to establish free trade between the 2 nations through the
reduction and elimination of barriers to trade in goods and
services and to investment; and
(4) to lay the foundation for further cooperation to expand and
enhance the benefits of such Agreement.
SEC. 3. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the United States-
Australia Free Trade Agreement approved by Congress under section
101(a)(1).
(2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule
of the United States.
(3) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974
(19 U.S.C. 2191), Congress approves--
(1) the United States-Australia Free Trade Agreement entered
into on May 18, 2004, with the Government of Australia and
submitted to Congress on July 6, 2004; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on July 6,
2004.
(b) Conditions for Entry Into Force of the Agreement.--At such time
as the President determines that Australia has taken measures necessary
to bring it into compliance with those provisions of the Agreement that
are to take effect on the date on which the Agreement enters into
force, the President is authorized to exchange notes with the
Government of Australia providing for the entry into force, on or after
January 1, 2005, of the Agreement with respect to the United States.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
(a) Relationship of Agreement to United States Law.--
(1) United states law to prevail in conflict.--No provision of
the Agreement, nor the application of any such provision to any
person or circumstance, which is inconsistent with any law of the
United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States, or
(B) to limit any authority conferred under any law of the
United States,
unless specifically provided for in this Act.
(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application thereof,
may be declared invalid as to any person or circumstance on the
ground that the provision or application is inconsistent with the
Agreement, except in an action brought by the United States for the
purpose of declaring such law or application invalid.
(2) Definition of state law.--For purposes of this subsection,
the term ``State law'' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of
insurance.
(c) Effect of Agreement With Respect to Private Remedies.--No
person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provision of
law, any action or inaction by any department, agency, or other
instrumentality of the United States, any State, or any political
subdivision of a State, on the ground that such action or inaction
is inconsistent with the Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND
INITIAL REGULATIONS.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the enactment of
this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act, or
amendment made by this Act, that takes effect on the date the
Agreement enters into force is appropriately implemented on such
date, but no such proclamation or regulation may have an effective
date earlier than the date on which the Agreement enters into
force.
(2) Effective date of certain proclaimed actions.--Any action
proclaimed by the President under the authority of this Act that is
not subject to the consultation and layover provisions under
section 104, may not take effect before the 15th day after the date
on which the text of the proclamation is published in the Federal
Register.
(3) Waiver of 15-day restriction.--The 15-day restriction in
paragraph (2) on the taking effect of proclaimed actions is waived
to the extent that the application of such restriction would
prevent the taking effect on the date the Agreement enters into
force of any action proclaimed under this section.
(b) Initial Regulations.--Initial regulations necessary or
appropriate to carry out the actions required by or authorized under
this Act or proposed in the statement of administrative action
submitted under section 101(a)(2) to implement the Agreement shall, to
the maximum extent feasible, be issued within 1 year after the date on
which the Agreement enters into force. In the case of any implementing
action that takes effect on a date after the date on which the
Agreement enters into force, initial regulations to carry out that
action shall, to the maximum extent feasible, be issued within 1 year
after such effective date.
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE
OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation of an
action by the President by proclamation is subject to the consultation
and layover requirements of this section, such action may be proclaimed
only if--
(1) the President has obtained advice regarding the proposed
action from--
(A) the appropriate advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
(B) the United States International Trade Commission;
(2) the President has submitted a report to the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives that sets forth--
(A) the action proposed to be proclaimed and the reasons
therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first day on
which the requirements set forth in paragraphs (1) and (2) have
been met has expired; and
(4) the President has consulted with such Committees regarding
the proposed action during the period referred to in paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) Establishment or Designation of Office.--The President is
authorized to establish or designate within the Department of Commerce
an office that shall be responsible for providing administrative
assistance to panels established under chapter 21 of the Agreement. The
office may not be considered to be an agency for purposes of section
552 of title 5, United States Code.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year after fiscal year 2004 to the
Department of Commerce such sums as may be necessary for the
establishment and operations of the office under subsection (a) and for
the payment of the United States share of the expenses of panels
established under chapter 21 of the Agreement.
SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) Effective Dates.--Except as provided in subsection (b), the
provisions of this Act and the amendments made by this Act take effect
on the date on which the Agreement enters into force.
(b) Exceptions.--Sections 1 through 3 and this title take effect on
the date of the enactment of this Act.
(c) Termination of the Agreement.--On the date on which the
Agreement terminates, the provisionsof this Act (other than this
subsection) and the amendments made by this Act shall cease to be
effective.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) Tariff Modifications Provided for in the Agreement.--The
President may proclaim--
(1) such modifications or continuation of any duty,
(2) such continuation of duty-free or excise treatment, or
(3) such additional duties,
as the President determines to be necessary or appropriate to carry out
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B of the Agreement.
(b) Other Tariff Modifications.--Subject to the consultation and
layover provisions of section 104, the President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to with
Australia regarding the staging of any duty treatment set forth in
Annex 2-B of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,
as the President determines to be necessary or appropriate to maintain
the general level of reciprocal and mutually advantageous concessions
with respect to Australia provided for by the Agreement.
(c) Conversion to Ad Valorem Rates.--For purposes of subsections
(a) and (b), with respect to any good for which the base rate in the
Schedule of the United States to Annex 2-B of the Agreement is a
specific or compound rate of duty, the President may substitute for the
base rate an ad valorem rate that the President determines to be
equivalent to the base rate.
SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
(a) General Provisions.--
(1) Applicability of subsection.--This subsection applies to
additional duties assessed under subsections (b), (c), and (d).
(2) Applicable ntr (mfn) rate of duty.--For purposes of
subsections (b), (c), and (d), the term ``applicable NTR (MFN) rate
of duty'' means, with respect to a safeguard good, a rate of duty
that is the lesser of--
(A) the column 1 general rate of duty that would have been
imposed under the HTS on the same safeguard good entered,
without a claim for preferential treatment, at the time the
additional duty is imposed under subsection (b), (c), or (d),
as the case may be; or
(B) the column 1 general rate of duty that would have been
imposed under the HTS on the same safeguard good entered,
without a claim for preferential treatment, on December 31,
2004.
(3) Schedule rate of duty.--For purposes of subsections (b) and
(c), the term ``schedule rate of duty'' means, with respect to a
safeguard good, the rate of duty for that good set out in the
Schedule of the United States to Annex 2-B of the Agreement.
(4) Safeguard good.--In this subsection, the term ``safeguard
good'' means--
(A) a horticulture safeguard good described subsection
(b)(1)(B); or
(B) a beef safeguard good described in subsection (c)(1) or
subsection (d)(1)(A).
(5) Exceptions.--No additional duty shall be assessed on a good
under subsection (b), (c), or (d) if, at the time of entry, the
good is subject to import relief under--
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
(6) Termination.--The assessment of an additional duty on a
good under subsection (b) or (c), whichever is applicable, shall
cease to apply to that good on the date on which duty-free
treatment must be provided to that good under the Schedule of the
United States to Annex 2-B of the Agreement.
(7) Notice.--Not later than 60 days after the date on which the
Secretary of the Treasury assesses an additional duty on a good
under subsection (b), (c), or (d), the Secretary shall notify the
Government of Australia in writing of such action and shall provide
to that Government data supporting the assessment of the additional
duty.
(b) Additional Duties on Horticulture Safeguard Goods.--
(1) Definitions.--In this subsection:
(A) F.O.B.--The term ``F.O.B.'' means free on board,
regardless of the mode of transportation, at the point of
direct shipment by the seller to the buyer.
(B) Horticulture safeguard good.--The term ``horticulture
safeguard good'' means a good--
(i) that qualifies as an originating good under section
203;
(ii) that is included in the United States Horticulture
Safeguard List set forth in Annex 3-A of the Agreement; and
(iii) for which a claim for preferential treatment
under the Agreement has been made.
(C) Unit import price.--The ``unit import price'' of a good
means the price of the good determined on the basis of the
F.O.B. import price of the good, expressed in either dollars
per kilogram or dollars per liter, whichever unit of measure is
indicated for the good in the United States Horticulture
Safeguard List set forth in Annex 3-A of the Agreement.
(D) Trigger price.--The ``trigger price'' for a good is the
trigger price indicated for that good in the United States
Horticulture Safeguard List set forth in Annex 3-A of the
Agreement or any amendment thereto.
(2) Additional duties.--In addition to any duty proclaimed
under subsection (a) or (b) of section 201, and subject to
subsection (a) of this section, the Secretary of the Treasury shall
assess a duty on a horticulture safeguard good, in the amount
determined under paragraph (3), if the Secretary determines that
the unit import price of the good when it enters the United States
is less than the trigger price for that good.
(3) Calculation of additional duty.--The additional duty
assessed under this subsection on a horticulture safeguard good
shall be an amount determined in accordance with the following
table:
If the excess of the The additional duty is an amount equal to:
trigger price over the
unit import price is:
Not more than 10 percent of 0.
the trigger price.........
More than 10 percent but 30 percent of the excess of the applicable NTR (MFN) rate
not more than 40 percent of duty over the schedule rate of duty.
of the trigger price......
More than 40 percent but 50 percent of such excess.
not more than 60 percent
of the trigger price......
More than 60 percent but 70 percent of such excess.
not more than 75 percent
of the trigger price......
More than 75 percent of the 100 percent of such excess.
trigger price.............
(c) Additional Duties on Beef Safeguard Goods Based on Quantity of
Imports.--
(1) Definition.--In this subsection, the term ``beef safeguard
good'' means a good--
(A) that qualifies as an originating good under section
203;
(B) that is listed in paragraph 3 of Annex I of the General
Notes to the Schedule of the United States to Annex 2-B of the
Agreement; and
(C) for which a claim for preferential treatment under the
Agreement has been made.
(2) Additional duties.--In addition to any duty proclaimed
under subsection (a) or (b) of section 201, and subject to
subsection (a) of this section and paragraphs (4) and (5) of this
subsection, the Secretary of the Treasury shall assess a duty, in
the amount determined under paragraph (3), on a beef safeguard good
imported into the United States in a calendar year if the Secretary
determines that, prior to such importation, the total volume of
beef safeguard goods imported into the United States in that
calendar year is equal to or greater than 110 percent of the volume
set out for beef safeguard goods in the corresponding year in the
table contained in paragraph 3(a) of Annex I of the General Notes
to the Schedule of the United States to Annex 2-B of the Agreement.
For purposes of this subsection, the years 1 through 19 set out in
the table contained in paragraph 3(a) of such Annex I correspond to
the calendar years 2005 through 2023.
(3) Calculation of additional duty.--The additional duty on a
beef safeguard good under this subsection shall be an amount equal
to 75 percent of the excess of the applicable NTR (MFN) rate of
duty over the schedule rate of duty.
(4) Waiver.--
(A) In general.--The United States Trade Representative is
authorized to waive the application of this subsection, if the
Trade Representative determines that extraordinary market
conditions demonstrate that the waiver would be in the national
interest of the United States, after the requirements of
subparagraph (B) are met.
(B) Notice and consultations.--Promptly after receiving a
request for a waiver of this subsection, the Trade
Representative shall notify the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate, and may make the determination provided for in
subparagraph (A) only after consulting with--
(i) appropriate private sector advisory committees
established under section 135 of the Trade Act of 1974 (19
U.S.C. 2155); and
(ii) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate
regarding--
(I) the reasons supporting the determination to
grant the waiver; and
(II) the proposed scope and duration of the waiver.
(C) Notification of the secretary of the treasury and
publication.--Upon granting a waiver under this paragraph,
the Trade Representative shall promptly notify the
Secretary of the Treasury of the period in which the waiver
will be in effect, and shall publish notice of the waiver
in the Federal Register.
(5) Effective dates.--This subsection takes effect on January
1, 2013, and shall not be effective after December 31, 2022.
(d) Additional Duties on Beef Safeguard Goods Based on Price.--
(1) Definitions.--In this subsection:
(A) Beef safeguard good.--The term ``beef safeguard good''
means a good--
(i) that qualifies as an originating good under section
203;
(ii) that is classified under subheading 0201.10.50,
0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, or
0202.30.80 of the HTS; and
(iii) for which a claim for preferential treatment
under the Agreement has been made.
(B) Calendar quarter.--
(i) In general.--The term ``calendar quarter'' means
any 3-month period beginning on January 1, April 1, July 1,
or October 1 of a calendar year.
(ii) First calendar quarter.--The term ``first calendar
quarter'' means the calendar quarter beginning on January
1.
(iii) Second calendar quarter.--The term ``second
calendar quarter'' means the calendar quarter beginning on
April 1.
(iv) Third calendar quarter.--The term ``third calendar
quarter'' means the calendar quarter beginning on July 1.
(v) Fourth calendar quarter.--The term ``fourth
calendar quarter'' means the calendar quarter beginning on
October 1.
(C) Monthly average index price.--The term ``monthly
average index price'' means the simple average, as determined
by the Secretary of Agriculture, for a calendar month of the
daily average index prices for Wholesale Boxed Beef Cut-Out
Value Select 1-3 Central U.S. 600-750 lbs., or its equivalent,
as such simple average is reported by the Agricultural
Marketing Service of the Department of Agriculture in Report
LM-XB459 or any equivalent report.
(D) 24-month trigger price.--The term ``24-month trigger
price'' means, with respect to any calendar month, the average
of the monthly average index prices for the 24 preceding
calendar months, multiplied by 0.935.
(2) Additional duties.--In addition to any duty proclaimed
under subsection (a) or (b) of section 201, and subject to
subsection (a) of this section and paragraphs (4) through (6) of
this subsection, the Secretary of the Treasury shall assess a duty,
in the amount determined under paragraph (3), on a beef safeguard
good imported into the United States if--
(A)(i) the good is imported in the first calendar quarter,
second calendar quarter, or third calendar quarter of a
calendar year; and
(ii) the monthly average index price, in any 2 calendar
months of the preceding calendar quarter, is less than the 24-
month trigger price; or
(B)(i) the good is imported in the fourth calendar quarter
of a calendar year; and
(ii)(I) the monthly average index price, in any 2 calendar
months of the preceding calendar quarter, is less than the 24-
month trigger price; or
(II) the monthly average index price, in any of the 4
calendar months preceding January 1 of the succeeding calendar
year, is less than the 24-month trigger price.
(3) Calculation of additional duty.--The additional duty on a
beef safeguard good under this subsection shall be an amount equal
to 65 percent of the applicable NTR (MFN) rate of duty for that
good.
(4) Limitation.--An additional duty shall be assessed under
this subsection on a beef safeguard good imported into the United
States in a calendar year only if, prior to the importation of that
good, the total quantity of beef safeguard goods imported into the
United States in that calendar year is equal to or greater than the
sum of--
(A) the quantity of goods of Australia eligible to enter
the United States in that year specified in Additional United
States Note 3 to Chapter 2 of the HTS; and
(B)(i) in 2023, 70,420 metric tons; or
(ii) in 2024, and in each year thereafter, a quantity that
is 0.6 percent greater than the quantity provided for in the
preceding year under this subparagraph.
(5) Waiver.--
(A) In general.--The United States Trade Representative is
authorized to waive the application of this subsection, if the
Trade Representative determines that extraordinary market
conditions demonstrate that the waiver would be in the national
interest of the United States, after the requirements of
subparagraph (B) are met.
(B) Notice and consultations.--Promptly after receiving a
request for a waiver of this subsection, the Trade
Representative shall notify the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate, and may make the determination provided for in
subparagraph (A) only after consulting with--
(i) appropriate private sector advisory committees
established under section 135 of the Trade Act of 1974 (19
U.S.C. 2155); and
(ii) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate
regarding--
(I) the reasons supporting the determination to
grant the waiver; and
(II) the proposed scope and duration of the waiver.
(C) Notification of the secretary of the treasury and
publication.--Upon granting a waiver under this paragraph,
the Trade Representative shall promptly notify the
Secretary of the Treasury of the period in which the waiver
will be in effect, and shall publish notice of the waiver
in the Federal Register.
(6) Effective date.--This subsection takes effect on January 1,
2023.
SEC. 203. RULES OF ORIGIN.
(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a heading or subheading, such reference shall be a
reference to a heading or subheading of the HTS.
(3) Cost or value.--Any cost or value referred to in this
section shall be recorded and maintained in accordance with the
generally accepted accounting principles applicable in the
territory of the country in which the good is produced (whether
Australia or the United States).
(b) Originating Goods.--For purposes of this Act and for purposes
of implementing the preferential treatment provided for under the
Agreement, a good is an originating good if--
(1) the good is a good wholly obtained or produced entirely in
the territory of Australia, the United States, or both;
(2) the good--
(A) is produced entirely in the territory of Australia, the
United States, or both, and--
(i) each of the nonoriginating materials used in the
production of the good undergoes an applicable change in
tariff classification specified in Annex 4-A or Annex 5-A
of the Agreement;
(ii) the good otherwise satisfies any applicable
regional value-content requirement referred to in Annex 5-A
of the Agreement; or
(iii) the good meets any other requirements specified
in Annex 4-A or Annex 5-A of the Agreement; and
(B) the good satisfies all other applicable requirements of
this section;
(3) the good is produced entirely in the territory of
Australia, the United States, or both, exclusively from materials
described in paragraph (1) or (2); or
(4) the good otherwise qualifies as an originating good under
this section.
(c) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) and (3),
a good that does not undergo a change in tariff classification
pursuant to Annex 5-A of the Agreement is an originating good if--
(A) the value of all nonoriginating materials that--
(i) are used in the production of the good, and
(ii) do not undergo the required change in tariff
classification,
does not exceed 10 percent of the adjusted value of the good;
(B) the good meets all other applicable requirements of
this section; and
(C) the value of such nonoriginating materials is included
in the value of nonoriginating materials for any applicable
regional value-content requirement for the good.
(2) Exceptions.--Paragraph (1) does not apply to the following:
(A) A nonoriginating material provided for in chapter 4 of
the HTS or in subheading 1901.90 that is used in the production
of agood provided for in chapter 4 of the HTS.
(B) A nonoriginating material provided for in chapter 4 of
the HTS or in subheading 1901.90 that is used in the production
of a good provided for in subheading 1901.10, 1901.20, or
1901.90, heading 2105, or subheading 2106.90, 2202.90, or
2309.90.
(C) A nonoriginating material provided for in heading 0805
or any of subheadings 2009.11 through 2009.39 that is used in
the production of a good provided for in any of subheadings
2009.11 through 2009.39, or in subheading 2106.90 or 2202.90.
(D) A nonoriginating material provided for in chapter 15 of
the HTS that is used in the production of a good provided for
in any of headings 1501.00.00 through 1508, or in heading 1512,
1514, or 1515.
(E) A nonoriginating material provided for in heading 1701
that is used in the production of a good provided for in any of
headings 1701 through 1703.
(F) A nonoriginating material provided for in chapter 17 of
the HTS or heading 1805.00.00 that is used in the production of
a good provided for in subheading 1806.10.
(G) A nonoriginating material provided for in any of
headings 2203 through 2208 that is used in the production of a
good provided for in heading 2207 or 2208.
(H) A nonoriginating material used in the production of a
good provided for in any of chapters 1 through 21 of the HTS
unless the nonoriginating material is provided for in a
different subheading than the good for which origin is being
determined under this section.
(3) Textile and apparel goods.--
(A) In general.--Except as provided in subparagraph (B), a
textile or apparel good that is not an originating good because
certain fibers or yarns used in the production of the component
of the good that determines the tariff classification of the
good do not undergo an applicable change in tariff
classification set out in Annex 4-A of the Agreement shall be
considered to be an originating good if the total weight of all
such fibers or yarns in that component is not more than 7
percent of the total weight of that component.
(B) Certain textile or apparel goods.--A textile or apparel
good containing elastomeric yarns in the component of the good
that determines the tariff classification of the good shall be
considered to be an originating good only if such yarns are
wholly formed in the territory of Australia or the United
States.
(C) Yarn, fabric, or fiber.--For purposes of this
paragraph, in the case of a textile or apparel good that is a
yarn, fabric, or group of fibers, the term ``component of the
good that determines the tariff classification of the good''
means all of the fibers in the yarn, fabric, or group of
fibers.
(d) Accumulation.--
(1) Originating materials used in production of goods of other
country.--Originating materials from the territory of Australia or
the United States that are used in the production of a good in the
territory of the other country shall be considered to originate in
the territory of the other country.
(2) Multiple procedures.--A good that is produced in the
territory of Australia, the United States, or both, by 1 or more
producers, is an originating good if the good satisfies the
requirements of subsection (b) and all other applicable
requirements of this section.
(e) Regional Value-Content.--
(1) In general.--For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 5-A of the
Agreement, except for goods to which paragraph (4) applies, shall
be calculated by the importer, exporter, or producer of the good,
on the basis of the build-down method described in paragraph (2) or
the build-up method described in paragraph (3).
(2) Build-down method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-down method:
av-vnm
rvc = -------- <greek-e> 100
av
(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-
content of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of
the good.
(iii) VNM.--The term ``VNM'' means the value of
nonoriginating materials that are acquired and used by the
producer in the production of the good, but does not
include the value of a material that is self-produced.
(3) Build-up method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-up method:
vom
rvc = -------- <greek-e> 100
av
(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-
content of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of
the good.
(iii) VOM.--The term ``VOM'' means the value of
originating materials that are acquired or self-produced,
and used by the producer in the production of the good.
(4) Special rule for certain automotive goods.--
(A) In general.--For purposes of subsection (b)(2), the
regional value-content of an automotive good referred to in
Annex 5-A of the Agreement shall be calculated by the importer,
exporter, or producer of the good, on the basis of the
following net cost method:
nc-vnm
rvc = -------- <greek-e> 100
nc
(B) Definitions.--In subparagraph (A):
(i) Automotive good.--The term ``automotive good''
means a good provided for in any of subheadings 8407.31
through 8407.34, subheading 8408.20, heading 8409, or in
any of headings 8701 through 8708.
(ii) RVC.--The term ``RVC'' means the regional value-
content of the automotive good, expressed as a percentage.
(iii) NC.--The term ``NC'' means the net cost of the
automotive good.
(iv) VNM.--The term ``VNM'' means the value of
nonoriginating materials that are acquired and used by the
producer in the production of the automotive good, but does
not include the value of a material that is self-produced.
(C) Motor vehicles.--
(i) Basis of calculation.--For purposes of determining
the regional value-content under subparagraph (A) for an
automotive good that is a motor vehicle provided for in any
of headings 8701 through 8705, an importer, exporter, or
producer may average the amounts calculated under the
formula contained in subparagraph (A), over the producer's
fiscal year--
(I) with respect to all motor vehicles in any one
of the categories described in clause (ii); or
(II) with respect to all motor vehicles in any such
category that are exported to the territory of the
United States or Australia.
(ii) Categories.--A category is described in this
clause if it--
(I) is the same model line of motor vehicles, is in
the same class of vehicles, and is produced in the same
plant in the territory of Australia or the United
States, as the good described in clause (i) for which
regional value-content is being calculated;
(II) is the same class of motor vehicles, and is
produced in the same plant in the territory of
Australia or the United States, as the good described
in clause (i) for which regional value-content is being
calculated; or
(III) is the same model line of motor vehicles
produced in either the territory of Australia or the
United States, as the good described in clause (i) for
which regional value-content is being calculated.
(D) Other automotive goods.--For purposes of determining
the regional value-content under subparagraph (A) for
automotive goods provided for in any of subheadings 8407.31
through 8407.34, in subheading 8408.20, or in heading 8409,
8706, 8707, or8708, that are produced in the same plant, an
importer, exporter, or producer may--
(i) average the amounts calculated under the formula
contained in subparagraph (A) over--
(I) the fiscal year of the motor vehicle producer
to whom the automotive goods are sold,
(II) any quarter or month, or
(III) its own fiscal year,
if the goods were produced during the fiscal year, quarter,
or month that is the basis for the calculation;
(ii) determine the average referred to in clause (i)
separately for such goods sold to one or more motor vehicle
producers; or
(iii) make a separate determination under clause (i) or
(ii) for automotive goods that are exported to the
territory of the United States or Australia.
(E) Calculating net cost.--Consistent with the provisions
regarding allocation of costs set out in generally accepted
accounting principles, the net cost of the automotive good
under subparagraph (B) shall be calculated by--
(i) calculating the total cost incurred with respect to
all goods produced by the producer of the automotive good,
subtracting any sales promotion, marketing and after-sales
service costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the total
cost of all such goods, and then reasonably allocating the
resulting net cost of those goods to the automotive good;
(ii) calculating the total cost incurred with respect
to all goods produced by that producer, reasonably
allocating the total cost to the automotive good, and then
subtracting any sales promotion, marketing and after-sales
service costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the
portion of the total cost allocated to the automotive good;
or
(iii) reasonably allocating each cost that forms part
of the total cost incurred with respect to the automotive
good so that the aggregate of these costs does not include
any sales promotion, marketing and after-sales service
costs, royalties, shipping and packing costs, or
nonallowable interest costs.
(f) Value of Materials.--
(1) In general.--For the purpose of calculating the regional
value-content of a good under subsection (e), and for purposes of
applying the de minimis rules under subsection (c), the value of a
material is--
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material;
(B) in the case of a material acquired in the territory in
which the good is produced, the value, determined in accordance
with Articles 1 through 8, article 15, and the corresponding
interpretive notes of the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade 1994
referred to in section 101(d)(8) of the Uruguay Round
Agreements Act, as set forth in regulations promulgated by the
Secretary of the Treasury providing for the application of such
Articles in the absence of an importation; or
(C) in the case of a material that is self-produced, the
sum of--
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit equivalent to the profit
added in the normal course of trade.
(2) Further adjustments to the value of materials.--
(A) Originating material.--The following expenses, if not
included in the value of an originating material calculated
under paragraph (1), may be added to the value of the
originating material:
(i) The costs of freight, insurance, packing, and all
other costs incurred in transporting the material within or
between the territory of Australia, the United States, or
both, to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Australia, the United
States, or both, other than duties or taxes that are
waived, refunded, refundable, or otherwiserecoverable,
including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the
use of the material in the production of the good, less the
value of renewable scrap or byproducts.
(B) Nonoriginating material.--The following expenses, if
included in the value of a nonoriginating material calculated
under paragraph (1), may be deducted from the value of the
nonoriginating material:
(i) The costs of freight, insurance, packing, and all
other costs incurred in transporting the material within or
between the territory of Australia, the United States, or
both, to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Australia, the United
States, or both, other than duties or taxes that are
waived, refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the
use of the material in the production of the good, less the
value of renewable scrap or byproducts.
(iv) The cost of processing incurred in the territory
of Australia, the United States, or both, in the production
of the nonoriginating material.
(v) The cost of originating materials used in the
production of the nonoriginating material in the territory
of Australia, the United States, or both.
(g) Accessories, Spare Parts, or Tools.--
(1) In general.--Subject to paragraph (2), accessories, spare
parts, or tools delivered with a good that form part of the good's
standard accessories, spare parts, or tools shall--
(A) be treated as originating goods if the good is an
originating good; and
(B) be disregarded in determining whether all the
nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set out
in Annex 5-A of the Agreement.
(2) Conditions.--Paragraph (1) shall apply only if--
(A) the accessories, spare parts, or tools are not invoiced
separately from the good;
(B) the quantities and value of the accessories, spare
parts, or tools are customary for the good; and
(C) if the good is subject to a regional value-content
requirement, the value of the accessories, spare parts, or
tools is taken into account as originating or nonoriginating
materials, as the case may be, in calculating the regional
value-content of the good.
(h) Fungible Goods and Materials.--
(1) In general.--
(A) Claim for preferential treatment.--A person claiming
that a fungible good or fungible material is an originating
good may base the claim either on the physical segregation of
the fungible good or fungible material or by using an inventory
management method with respect to the fungible good or fungible
material.
(B) Inventory management method.--In this subsection, the
term ``inventory management method'' means--
(i) averaging;
(ii) ``last-in, first-out'';
(iii) ``first-in, first-out''; or
(iv) any other method--
(I) recognized in the generally accepted accounting
principles of the country in which the production is
performed (whether Australia or the United States); or
(II) otherwise accepted by that country.
(2) Election of inventory method.--A person selecting an
inventory management method under paragraph (1) for a particular
fungible good or fungible material shall continue to use that
method for that fungible good or fungible material throughout the
fiscal year of that person.
(i) Packaging Materials and Containers for Retail Sale.--Packaging
materials and containers in which a good is packaged for retail sale,
if classified with the good, shall be disregarded in determining
whether all the nonoriginating materials used in the production of the
good undergo the applicable change in tariff classification set out in
Annex 4-A or Annex 5-A of the Agreement, and, if the good is subject to
a regional value-content requirement, the value of such packaging
materials and containers shall be taken into account as originating or
nonoriginating materials, as the case may be, in calculating the
regional value-content of the good.
(j) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether--
(1) the nonoriginating materials used in the production of a
good undergo the applicable change in tariff classification set out
in Annex 4-A or Annex 5-A of the Agreement; and
(2) the good satisfies a regional value-content requirement.
(k) Indirect Materials.--An indirect material shall be treated as
an originating material without regard to where it is produced, and its
value shall be the cost registered in the accounting records of the
producer of the good.
(l) Third Country Operations.--A good that has undergone production
necessary to qualify as an originating good under subsection (b) shall
not be considered to be an originating good if, subsequent to that
production, the good undergoes further production or any other
operation outside the territory of Australia or the United States,
other than unloading, reloading, or any other operation necessary to
preserve the good in good condition or to transport the good to the
territory of Australia or the United States.
(m) Textile and Apparel Goods Classifiable as Goods Put Up in
Sets.--Notwithstanding the rules set forth in Annex 4-A of the
Agreement, textile or apparel goods classifiable as goods put up in
sets for retail sale as provided for in General Rule of Interpretation
3 of the HTS shall not be considered to be originating goods unless
each of the goods in the set is an originating good or the total value
of the nonoriginating goods in the set does not exceed 10 percent of
the value of the set determined for purposes of assessing customs
duties.
(n) Definitions.--In this section:
(1) Adjusted value.--The term ``adjusted value'' means the
value determined under Articles 1 through 8, Article 15, and the
corresponding interpretive notes of the Agreement on Implementation
of Article VII of the General Agreement on Tariffs and Trade 1994
referred to in section 101(d)(8) of the Uruguay Round Agreements
Act, adjusted to exclude any costs, charges, or expenses incurred
fortransportation, insurance, and related services incident to the
international shipment of the good from the country of exportation to
the place of importation.
(2) Class of motor vehicles.--The term ``class of motor
vehicles'' means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705
or 8706, or motor vehicles for the transport of 16 or more
persons provided for in subheading 8702.10 or 8702.90.
(B) Motor vehicles provided for in subheading 8701.10 or
any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer persons
provided for in subheading 8702.10 or 8702.90, or motor
vehicles provided for in subheading 8704.21 or 8704.31.
(D) Motor vehicles provided for in any of subheadings
8703.21 through 8703.90.
(3) Fungible good or fungible material.--The term ``fungible
good'' or ``fungible material'' means a good or material, as the
case may be, that is interchangeable with another good or material
for commercial purposes and the properties of which are essentially
identical to such other good or material.
(4) Generally accepted accounting principles.--The term
``generally accepted accounting principles'' means the recognized
consensus or substantial authoritative support in the territory of
Australia or the United States, as the case may be, with respect to
the recording of revenues, expenses, costs, assets, and
liabilities, the disclosure of information, and the preparation of
financial statements. These standards may encompass broad
guidelines of general application as well as detailed standards,
practices, and procedures.
(5) Good wholly obtained or produced entirely in the territory
of Australia, the United States, or both.--The term ``good wholly
obtained or produced entirely in the territory of Australia, the
United States, or both'' means--
(A) a mineral good extracted in the territory of Australia,
the United States, or both;
(B) a vegetable good, as such goods are provided for in the
HTS, harvested in the territory of Australia, the United
States, or both;
(C) a live animal born and raised in the territory of
Australia, the United States, or both;
(D) a good obtained from hunting, trapping, fishing, or
aquaculture conducted in the territory of Australia, the United
States, or both;
(E) a good (fish, shellfish, and other marine life) taken
from the sea by vessels registered or recorded with Australia
or the United States and flying the flag of that country;
(F) a good produced exclusively from products referred to
in subparagraph (E) on board factory ships registered or
recorded with Australia or the United States and flying the
flag of that country;
(G) a good taken by Australia or the United States or a
person of Australia or the United States from the seabed or
beneath the seabed outside territorial waters, if Australia or
the United States has rights to exploit such seabed;
(H) a good taken from outer space, if such good is obtained
by Australia or the United States or a person of Australia or
the United States and not processed in the territory of a
country other than Australia or the United States;
(I) waste and scrap derived from--
(i) production in the territory of Australia, the
United States, or both; or
(ii) used goods collected in the territory of
Australia, the United States, or both, if such goods are
fit only for the recovery of raw materials;
(J) a recovered good derived in the territory of Australia
or the United States from goods that have passed their life
expectancy, or are no longer usable due to defects, and
utilized in the territory of that country in the production of
remanufactured goods; or
(K) a good produced in the territory of Australia, the
United States, or both, exclusively--
(i) from goods referred to in any of subparagraphs (A)
through (I), or
(ii) from the derivatives of goods referred to in
clause (i),
at any stage of production.
(6) Indirect material.--The term ``indirect material'' means a
good used in the production, testing, or inspection of a good but
not physically incorporated into the good, or a good used in the
maintenance of buildings or the operation of equipment associated
with the production of a good, including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance of
equipment or buildings;
(D) lubricants, greases, compounding materials, and other
materials used in production or used to operate equipment or
buildings;
(E) gloves, glasses, footwear, clothing, safety equipment,
and supplies;
(F) equipment, devices, and supplies used for testing or
inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into the good
but the use of which in the production of the good can
reasonably be demonstrated to be a part of that production.
(7) Material.--The term ``material'' means a good that is used
in the production of another good.
(8) Material that is self-produced.--The term ``material that
is self-produced'' means an originating material that is produced
by a producer of a good and used in the production of that good.
(9) Model line.--The term ``model line'' means a group of motor
vehicles having the same platform or model name.
(10) Nonallowable interest costs.--The term ``nonallowable
interest costs'' means interest costs incurred by a producer that
exceed 700 basis points above the applicable official interest rate
for comparable maturities of the country (whether Australia or the
United States).
(11) Nonoriginating material.--The term ``nonoriginating
material'' means a material that does not qualify as originating
under this section.
(12) Preferential treatment.--The term ``preferential
treatment'' means the customs duty rate, and the treatment under
article 2.12 of the Agreement, that are applicable to an
originating good pursuant to the Agreement.
(13) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of Australia
or the United States.
(14) Production.--The term ``production'' means growing,
raising, mining, harvesting, fishing, trapping, hunting,
manufacturing, processing, assembling, or disassembling a good.
(15) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner that would be appropriate under
generally accepted accounting principles.
(16) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that result from--
(A) the complete disassembly of goods which have passed
their life expectancy, or are no longer usable due to defects,
into individual parts; and
(B) the cleaning, inspecting, or testing, or other
processing that is necessary for improvement to sound working
condition of such individual parts.
(17) Remanufactured good.--The term ``remanufactured good''
means an industrial good that is assembled in the territory of
Australia or the United States, that is classified under chapter
84, 85, or 87 of the HTS or heading 9026, 9031, or 9032, other than
a good classified under heading 8418 or 8516 or any of headings
8701 through 8706, and that--
(A) is entirely or partially comprised of recovered goods;
(B) has a similar life expectancy to, and meets the same
performance standards as, a like good that is new; and
(C) enjoys a factory warranty similar to a like good that
is new.
(18) Total cost.--The term ``total cost'' means all product
costs, period costs, and other costs for a good incurred in the
territory of Australia, the United States, or both.
(19) Used.--The term ``used'' means used or consumed in the
production of goods.
(o) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim, as
part of the HTS--
(A) the provisions set out in Annex 4-A and Annex 5-A of
the Agreement; and
(B) any additional subordinate category necessary to carry
out this title consistent with the Agreement.
(2) Modifications.--
(A) In general.--Subject to the consultation and layover
provisions of section 104, the President may proclaim
modifications to the provisions proclaimed under the authority
of paragraph (1)(A), other than provisions of chapters 50
through 63 of the HTS, as included in Annex 4-A of the
Agreement.
(B) Additional proclamations.--Notwithstanding subparagraph
(A), and subject to the consultation and layover provisions of
section 104, the President may proclaim--
(i) modifications to the provisions proclaimed under
the authority of paragraph (1)(A) as are necessary to
implement an agreement with Australia pursuant to article
4.2.5 of the Agreement; and
(ii) before the end of the 1-year period beginning on
the date of the enactment of this Act, modifications to
correct any typographical, clerical, or other
nonsubstantive technical error regarding the provisions of
chapters 50 through 63 of the HTS, as included in Annex 4-A
of the Agreement.
SEC. 204. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph
(13) the following:
``(14) No fee may be charged under subsection (a) (9) or (10) with
respect to goods that qualify as originating goods under section 203 of
the United States-Australia Free Trade AgreementImplementation Act. Any
service for which an exemption from such fee is provided by reason of
this paragraph may not be funded with money contained in the Customs
User Fee Account.''.
SEC. 205. DISCLOSURE OF INCORRECT INFORMATION.
Section 592(c) of the Tariff Act of 1930 (19 U.S.C. 1592(c)) is
amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following new
paragraph:
``(8) Prior disclosure regarding claims under the united
states-australia free trade agreement.--
``(A) In general.--An importer shall not be subject to
penalties under subsection (a) for making an incorrect claim
that a good qualifies as an originating good under section 203
of the United States-Australia Free Trade Agreement
Implementation Act if the importer, in accordance with
regulations issued by the Secretary of the Treasury,
voluntarily and promptly makes a corrected declaration and pays
any duties owing.
``(B) Time periods for making corrections.--In the
regulations referred to in subparagraph (A), the Secretary of
the Treasury is authorized to prescribe time periods for making
a corrected declaration and paying duties owing under
subparagraph (A), if such periods are not shorter than 1 year
following the date on which the importer makes the incorrect
claim.''.
SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND APPAREL GOODS.
(a) Action During Verification.--
(1) In general.--If the Secretary of the Treasury requests the
Government of Australia to conduct a verification pursuant to
article 4.3 of the Agreement for purposes of making a determination
under paragraph (2), the President may direct the Secretary to take
appropriate action described in subsection (b) while the
verification is being conducted.
(2) Determination.--A determination under this paragraph is a
determination--
(A) that an exporter or producer in Australia is complying
with applicable customs laws, regulations, procedures,
requirements, or practices affecting trade in textile or
apparel goods; or
(B) that a claim that a textile or apparel good exported or
produced by such exporter or producer--
(i) qualifies as an originating good under section 203
of this Act; or
(ii) is a good of Australia,
is accurate.
(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of liquidation of the entry of any textile or
apparel good exported or produced by the person that is the subject
of a verification under subsection (a)(1) regarding compliance
described in subsection (a)(2)(A), in a case in which the request
for verification was based on a reasonable suspicion of unlawful
activity related to such goods; and
(2) suspension of liquidation of the entry of a textile or
apparel good for which a claim has been made that is the subject of
a verification under subsection (a)(1) regarding a claim described
in subsection (a)(2)(B).
(c) Action When Information is Insufficient.--If the Secretary of
the Treasury determines that the information obtained within 12 months
after making a request for a verification under subsection (a)(1) is
insufficient to make a determination under subsection (a)(2), the
President may direct the Secretary to take appropriate action described
in subsection (d) until such time as the Secretary receives information
sufficient to make a determination under subsection (a)(2) or until
such earlier date as the President may direct.
(d) Appropriate Action Described.--Appropriate action referred to
in subsection (c) includes--
(1) publication of the name and address of the person that is
the subject of the verification;
(2) denial of preferential tariff treatment under the Agreement
to--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection (a)(2)(A);
or
(B) a textile or apparel good for which a claim has been
made that is the subject of a verification under subsection
(a)(1) regarding a claim described in subsection (a)(2)(B); and
(3) denial of entry into the United States of--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection (a)(2)(A);
or
(B) a textile or apparel good for which a claim has been
made that is the subject of a verification under subsection
(a)(1) regarding a claim described in subsection (a)(2)(B).
SEC. 207. REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations as
may be necessary to carry out--
(1) subsections (a) through (n) of section 203 and section 204;
(2) amendments to existing law made by the sections referred to
in paragraph (1); and
(3) proclamations issued under section 203(o).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
As used in this title:
(1) Australian article.--The term ``Australian article'' means
an article that qualifies as an originating good under section
203(b) of this Act.
(2) Australian textile or apparel article.--The term
``Australian textile or apparel article'' means an article--
(A) that is listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)); and
(B) that is an Australian article.
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.
Subtitle A--Relief From Imports Benefiting From the Agreement
SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) Filing of Petition.--
(1) In general.--A petition requesting action under this
subtitle for the purpose of adjusting to the obligations of the
United States under the Agreement may be filed with the Commission
by an entity, including a trade association, firm, certified or
recognized union, or group of workers, that is representative of an
industry. The Commission shalltransmit a copy of any petition filed
under this subsection to the United States Trade Representative.
(2) Provisional relief.--An entity filing a petition under this
subsection may request that provisional relief be provided as if
the petition had been filed under section 202(a) of the Trade Act
of 1974 (19 U.S.C. 2252(a)).
(3) Critical circumstances.--Any allegation that critical
circumstances exist shall be included in the petition.
(b) Investigation and Determination.--Upon the filing of a petition
under subsection (a), the Commission, unless subsection (d) applies,
shall promptly initiate an investigation to determine whether, as a
result of the reduction or elimination of a duty provided for under the
Agreement, an Australian article is being imported into the United
States in such increased quantities, in absolute terms or relative to
domestic production, and under such conditions that imports of the
Australian article constitute a substantial cause of serious injury or
threat thereof to the domestic industry producing an article that is
like, or directly competitive with, the imported article.
(c) Applicable Provisions.--The following provisions of section 202
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any
investigation initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (d).
(4) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation may be
initiated under this section with respect to any Australian article if,
after the date on which the Agreement enters into force, import relief
has been provided with respect to that Australian article under this
subtitle.
SEC. 312. COMMISSION ACTION ON PETITION.
(a) Determination.--Not later than 120 days (180 days if critical
circumstances have been alleged) after the date on which an
investigation is initiated under section 311(b) with respect to a
petition, the Commission shall make the determination required under
that section.
(b) Applicable Provisions.--For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
applied with respect to determinations and findings made under this
section as if such determinations and findings were made under section
202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) Additional Finding and Recommendation if Determination
Affirmative.--If the determination made by the Commission under
subsection (a) with respect to imports of an article is affirmative, or
if the President may consider a determination of the Commission to be
an affirmative determination as provided for under paragraph (1) of
section 330(d) of the Tariff Act of 1930) (19 U.S.C. 1330(d)), the
Commission shall find, and recommend to the President in the report
required under subsection (d), the amount of import relief that is
necessary to remedy or prevent the injury found by the Commission in
the determination and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition. The
import relief recommended by the Commission under this subsection shall
be limited to that described in section 313(c). Only those members of
the Commission who voted in the affirmative under subsection (a) are
eligible to vote on the proposed action to remedy or prevent the injury
found by the Commission. Members of the Commission who did not vote in
the affirmative may submit, in the report required under subsection
(d), separate views regarding what action, if any, should be taken to
remedy or prevent the injury.
(d) Report to President.--Not later than the date that is 30 days
after the date on which a determination is made under subsection (a)
with respect to an investigation, the Commission shall submit to the
President a report that includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is affirmative,
any findings and recommendations for import relief made under
subsection (c) and an explanation of the basis for each
recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation referred
to in paragraphs (1) and (2).
(e) Public Notice.--Upon submitting a report to the President under
subsection (d), the Commission shall promptly make public such report
(with the exception of information which the Commission determines to
be confidential) and shall cause a summary thereof to be published in
the Federal Register.
SEC. 313. PROVISION OF RELIEF.
(a) In General.--Not later than the date that is 30 days after the
date on which the President receives the report of the Commission in
which the Commission's determination under section 312(a) is
affirmative, or which contains a determination under section 312(a)
that the President considers to be affirmative under paragraph (1) of
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
President, subject to subsection (b), shall provide relief from imports
of the article that is the subject of such determination to the extent
that the President determines necessary to remedy or prevent the injury
found by the Commission and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition.
(b) Exception.--The President is not required to provide import
relief under this section if the President determines that the
provision of the import relief will not provide greater economic and
social benefits than costs.
(c) Nature of Relief.--
(1) In general.--The import relief (including provisional
relief) that the President is authorized to provide under this
section with respect to imports of an article is as follows:
(A) The suspension of any further reduction provided for
under Annex 2-B of the Agreement in the duty imposed on such
article.
(B) An increase in the rate of duty imposed on such article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the
HTS on like articles at the time the import relief is
provided; or
(ii) the column 1 general rate of duty imposed under
the HTS on like articles on the day before the date on
which the Agreement enters into force.
(C) In the case of a duty applied on a seasonal basis to
such article, an increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the
HTS on like articles for the immediately preceding
corresponding season; or
(ii) the column 1 general rate of duty imposed under
the HTS on like articles on the day before the date on
which the Agreement enters into force.
(2) Progressive liberalization.--If the period for which import
relief is provided under this section is greater than 1 year, the
President shall provide for the progressive liberalization
(described in article 9.2.7 of the Agreement) of such relief at
regular intervals during the period in which the relief is in
effect.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import relief
that the President provides under this section may not be in effect
for more than 2 years.
(2) Extension.--
(A) In general.--Subject to subparagraph (C), the
President, after receiving an affirmative determination from
the Commission under subparagraph (B), may extend the effective
period of any import relief provided under this section if the
President determines that--
(i) the import relief continues to be necessary to
remedy or prevent serious injury and to facilitate
adjustment by the domestic industry to import competition;
and
(ii) there is evidence that the industry is making a
positive adjustment to import competition.
(B) Action by commission.--(i) Upon a petition on behalf of
the industry concerned that is filed with the Commission not
earlier than the date which is 9 months, and not later than the
date which is 6 months, before the date any action taken under
subsection (a) is to terminate, the Commission shall conduct an
investigation to determine whether action under this section
continues to be necessary to remedy or prevent serious injury
and whether there is evidence that the industry is making a
positive adjustment to import competition.
(ii) The Commission shall publish notice of the
commencement of any proceeding under this subparagraph in the
Federal Register and shall, within a reasonable time
thereafter, hold a public hearing at which the Commission shall
afford interested parties and consumers an opportunity to be
present, to present evidence, and to respond to the
presentations of other parties and consumers, and otherwise to
be heard.
(iii) The Commission shall transmit to the President a
report on its investigation and determination under this
subparagraph not later than 60 days before the action under
subsection (a) is to terminate, unless the President specifies
a different date.
(C) Period of import relief.--Any import relief provided
under this section, including any extensions thereof, may not,
in the aggregate, be in effect for more than 4 years.
(e) Rate After Termination of Import Relief.--When import relief
under this section is terminated with respect to an article--
(1) the rate of duty on that article after such termination and
on or before December 31 of the year in which such termination
occurs shall be the rate that, according to the Schedule of the
United States to Annex 2-B of the Agreement for the staged
elimination of the tariff, would have been in effect 1 year after
the provision of relief under subsection (a); and
(2) the rate of duty for that article after December 31 of the
year in which termination occurs shall be, at the discretion of the
President, either--
(A) the applicable NTR (MFN) rate of duty for that article
set out in the Schedule of the United States to Annex 2-B of
the Agreement; or
(B) the rate of duty resulting from the elimination of the
tariff in equal annual stages ending on the date set out in the
Schedule of the United States to Annex 2-B of the Agreement for
the elimination of the tariff.
(f) Articles Exempt From Relief.--No import relief may be provided
under this section on any article that--
(1) is subject to--
(A) import relief under subtitle B; or
(B) an assessment of additional duty under subsection (b),
(c), or (d) of section 202; or
(2) has been subject to import relief under this subtitle after
the date on which the Agreement enters into force.
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) General Rule.--Subject to subsection (b), no import relief may
be provided under this subtitle after the date that is 10 years after
the date on which the Agreement enters into force.
(b) Exception.--If an article for which relief is provided under
this subtitle is an article for which the period for tariff
elimination, set out in the Schedule of the United States to Annex 2-B
of the Agreement, is greater than10 years, no relief under this
subtitle may be provided for that article after the date on which such
period ends.
(c) Presidential Determination.--Import relief may be provided
under this subtitle in the case of an Australian article after the date
on which such relief would, but for this subsection, terminate under
subsection (a) or (b), if the President determines that Australia has
consented to such relief.
SEC. 315. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
2133), any import relief provided by the President under section 313
shall be treated as action taken under chapter 1 of title II of such
Act.
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8))
is amended in the first sentence--
(1) by striking ``and''; and
(2) by inserting before the period at the end ``, and title III
of the United States-Australia Free Trade Agreement Implementation
Act''.
Subtitle B--Textile and Apparel Safeguard Measures
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
(a) In General.--A request under this subtitle for the purpose of
adjusting to the obligations of the United States under the Agreement
may be filed with the President by an interested party. Upon the filing
of a request, the President shall review the request to determine, from
information presented in the request, whether to commence consideration
of the request.
(b) Allegation of Critical Circumstances.--An interested party
filing a request under this section may--
(1) allege that critical circumstances exist such that delay in
the provision of relief would cause damage that would be difficult
to repair; and
(2) based on such allegation, request that relief be provided
on a provisional basis.
(c) Publication of Request.--If the President determines that the
request under subsection (a) provides the information necessary for the
request to be considered, the President shall cause to be published in
the Federal Register a notice of commencement of consideration of the
request, and notice seeking public comments regarding the request. The
notice shall include a summary of the request and the dates by which
comments and rebuttals must be received.
SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
(a) Determination.--
(1) In general.--If a positive determination is made under
section 321(c), the President shall determine whether, as a result
of the reduction or elimination of a duty under the Agreement, an
Australian textile or apparel article is being imported into the
United States in such increased quantities, in absolute terms or
relative to the domestic market for that article, and under such
conditions as to cause serious damage, or actual threat thereof, to
a domestic industry producing an article that is like, or directly
competitive with, the imported article.
(2) Serious damage.--In making a determination under paragraph
(1), the President--
(A) shall examine the effect of increased imports on the
domestic industry, as reflected in changes in such relevant
economic factors as output, productivity, utilization of
capacity, inventories, market share, exports, wages,
employment, domestic prices, profits, and investment, none of
which is necessarily decisive; and
(B) shall not consider changes in technology or consumer
preference as factors supporting a determination of serious
damage or actual threat thereof.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of the
article that is the subject of such determination, as described in
paragraph (2), to the extent that the President determines
necessary to remedy or prevent the serious damage and to facilitate
adjustment by the domestic industry to import competition.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to imports
of an article is an increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of--
(A) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided; or
(B) the column 1 general rate of duty imposed under the HTS
on like articles on the day before the date on which the
Agreement enters into force.
(c) Critical Circumstances.--
(1) Presidential determination.--When a request filed under
section 321(a) contains an allegation of critical circumstances and
a request for provisional relief under section 321(b), the
President shall, not later than 60 days after the request is filed,
determine, on the basis of available information, whether--
(A) there is clear evidence that--
(i) imports from Australia have increased as the result
of the reduction or elimination of a customs duty under the
Agreement; and
(ii) such imports are causing serious damage, or actual
threat thereof, to the domestic industry producing an
article like or directly competitive with the imported
article; and
(B) delay in taking action under this subtitle would cause
damage to that industry that would be difficult to repair.
(2) Extent of provisional relief.--If the determinations under
subparagraphs (A) and (B) of paragraph (1) are affirmative, the
President shall determine the extent of provisional relief that is
necessary to remedy or prevent the serious damage. The nature of
the provisional relief available shall be the relief described in
subsection (b)(2). Within 30 days after making affirmative
determinations under subparagraphs (A) and (B) of paragraph (1),
the President, if the President considers provisional relief tobe
warranted, shall provide, for a period not to exceed 200 days, such
provisional relief that the President considers necessary to remedy or
prevent the serious damage.
(3) Suspension of liquidation.--If provisional relief is
provided under paragraph (2), the President shall order the
suspension of liquidation of all imported articles subject to the
affirmative determinations under subparagraphs (A) and (B) of
paragraph (1) that are entered, or withdrawn from warehouse for
consumption, on or after the date of the determinations.
(4) Termination of provisional relief.--
(A) In general.--Any provisional relief implemented under
this subsection with respect to an imported article shall
terminate on the day on which--
(i) the President makes a negative determination under
subsection (a) regarding serious damage or actual threat
thereof by imports of such article;
(ii) action described in subsection (b) takes effect
with respect to such article;
(iii) a decision by the President not to take any
action under subsection (b) with respect to such article
becomes final; or
(iv) the President determines that, because of changed
circumstances, such relief is no longer warranted.
(B) Suspension of liquidation.--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) Rates of duty.--If an increase in, or the imposition
of, a duty that is provided under subsection (b) on an imported
article is different from a duty increase or imposition that
was provided for such an article under this subsection, 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) Rate of duty if provisional relief.--If provisional
relief is provided under this subsection with respect to an
imported article and neither a duty increase nor a duty
imposition is provided under subsection (b) for such article,
the entry of any such article for which liquidation was
suspended under paragraph (3) shall be liquidated at the rate
of duty that applied before the provisional relief was
provided.
SEC. 323. PERIOD OF RELIEF.
(a) In General.--Subject to subsection (b), the import relief that
the President provides under subsections (b) and (c) of section 322 may
not, in the aggregate, be in effect for more than 2 years.
(b) Extension.--
(1) In general.--Subject to paragraph (2), the President may
extend the effective period of any import relief provided under
this subtitle for a period of not more than 2 years, if the
President determines that--
(A) the import relief continues to be necessary to remedy
or prevent serious damage and to facilitate adjustment by the
domestic industry to import competition; and
(B) there is evidence that the industry is making a
positive adjustment to import competition.
(2) Limitation.--Any relief provided under this subtitle,
including any extensions thereof, may not, in the aggregate, be in
effect for more than 4 years.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle
with respect to any article if--
(1) import relief previously has been provided under this
subtitle with respect to that article; or
(2) the article is subject to import relief under--
(A) subtitle A; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
When import relief under this subtitle is terminated with respect
to an article, the rate of duty on that article shall be the rate that
would have been in effect, but for the provision of such relief, on the
date the relief terminates.
SEC. 326. TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle with respect
to any article after the date that is 10 years after the date on which
duties on the article are eliminated pursuant to the Agreement.
SEC. 327. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
2133), any import relief provided by the President under this subtitle
shall be treated as action taken under chapter 1 of title II of such
Act.
SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.
The President may not release information which is submitted in a
proceeding under this subtitle and which the President 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, or such party
subsequently consents to the release of the information. To the extent
a party submits confidential business information to the President in a
proceeding under this subtitle, the party also shall submit a
nonconfidential version of the information, in which the confidential
business information is summarized or, if necessary, deleted.
Subtitle C--Cases Under Title II of the Trade Act of 1974
SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUSTRALIA.
(a) Effect of Imports.--If, in any investigation initiated under
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et
seq.), the Commission makes an affirmative determination (or a
determination which the President may treat as an affirmative
determination under such chapter by reason of section 330(d) of the
Tariff Act of 1930), the Commission shall also find (and report to the
President at the time such injury determination is submitted to the
President) whether imports of the article from Australia are a
substantial cause of serious injury or threat thereof.
(b) Presidential Determination Regarding Australian Imports.--In
determining the nature and extent of action to be taken under chapter 1
of title II of the Trade Act of 1974, the President shall determine
whether imports from Australia are a substantial cause of the serious
injury or threat thereof found by the Commission and, if such
determination is in the negative, may exclude from such action imports
from Australia.
TITLE IV--PROCUREMENT
SEC. 401. ELIGIBLE PRODUCTS.
Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C.
2518(4)(A)) is amended--
(1) by striking ``or'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) a party to a free trade agreement that entered
into force with respect to the United States after December
31, 2003, and before January 2, 2005, a product or service
of that country or instrumentality which is covered under
the free trade agreement for procurement by the United
States.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.