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NOTES:


Source

(Pub. L. 93–618, title I, § 102, Jan. 3, 1975, 88 Stat. 1982; Pub. L. 96–39, title XI, §§ 1101, 1106 (c)(1), July 26, 1979, 93 Stat. 307, 311; Pub. L. 98–573, title III, § 307(a), title IV, § 401(a)–(c)(1), Oct. 30, 1984, 98 Stat. 3012, 3013–3015; Pub. L. 99–47, § 8(b)(1), June 11, 1985, 99 Stat. 84; Pub. L. 99–514, title XVIII, § 1887(a)(1), Oct. 22, 1986, 100 Stat. 2923.)

References in Text

This chapter, referred to in subsec. (b)(1), was in the original “this Act”, meaning Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, as amended, 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.
Section 1402 of this title, referred to in subsec. (g)(1)(A), was repealed by Pub. L. 96–39.

Amendments

1986—Subsec. (b)(4)(B)(ii)(II). Pub. L. 99–514 substituted “subparagraph” for “subsection”.
1985—Subsec. (b)(3). Pub. L. 99–47 inserted “that provides for the elimination or reduction of any duty imposed by the United States” after “such other country”.
1984—Subsec. (b). Pub. L. 98–573, § 401(a), designated existing provisions as par. (1) and added pars. (2) to (4).
Subsec. (g)(1). Pub. L. 98–573, § 401(b), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (g)(3). Pub. L. 98–573, § 307(a), designated existing provisions as subpar. (A) and added subpar. (B).
1979—Subsec. (b). Pub. L. 96–39, § 1101, substituted “13-year period” for “5-year period”.
Subsec. (e)(2). Pub. L. 96–39, § 1106(c)(1), substituted “copy of the final legal text of such agreement” for “copy of such agreement”.

Effective Date of 1979 Amendment

Amendment of subsec. (b) of this section by section 1101 of Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an Effective Date note under section 2581 of this title.
Section 1106(c)(1) of Pub. L. 96–39 provided in part that the amendment of subsec. (e)(2) of this section by section 1106(c)(1) of Pub. L. 96–39 shall apply with respect to trade agreements submitted to the Congress under this section after July 26, 1979.

Protective Order Provisions Applicable With Respect to Countervailing and Antidumping Duty Investigations Involving Products of Canadian Origin

Pub. L. 101–382, title I, § 135(c), Aug. 20, 1990, 104 Stat. 652, provided that: “For purposes of section 404 of the United States-Canada Free-Trade Agreement Implementation Act of 1988 [Pub. L. 100–449, set out in a note below], the amendments made by subsection (b) [amending section 1677f of this title] also apply with respect to investigations under title VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] involving products of Canadian origin.”

United States-Jordan Free Trade Area Implementation

Pub. L. 107–43, Sept. 28, 2001, 115 Stat. 243, provided that:
“SECTION 1. SHORT TITLE.
“This Act may be cited as the ‘United States-Jordan Free Trade Area Implementation Act’.
“SEC. 2. PURPOSES.
“The purposes of this Act are—
“(1) to implement the agreement between the United States and Jordan establishing a free trade area;
“(2) to strengthen and develop the economic relations between the United States and Jordan for their mutual benefit; and
“(3) to establish free trade between the 2 nations through the removal of trade barriers.
“SEC. 3. DEFINITIONS.
“For purposes of this Act:
“(1) Agreement.—The term ‘Agreement’ means the Agreement between the United States of America and the Hashemite Kingdom of Jordan on the Establishment of a Free Trade Area, entered into on October 24, 2000.
“(2) HTS.—The term ‘HTS’ means the Harmonized Tariff Schedule of the United States.
“TITLE I—TARIFF MODIFICATIONS; RULES OF ORIGIN “SEC. 101. 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 article 2.1 of the Agreement and the schedule of duty reductions with respect to Jordan set out in Annex 2.1 of the Agreement.
“(b) Other Tariff Modifications.—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 maintain the general level of reciprocal and mutually advantageous concessions with respect to Jordan provided for by the Agreement. “SEC. 102. RULES OF ORIGIN.
“(a) In General.—
“(1) Eligible articles.—
“(A) In general.—The reduction or elimination of any duty imposed on any article by the United States provided for in the Agreement shall apply only if—
“(i) that article is imported directly from Jordan into the customs territory of the United States; and
“(ii) that article—
     “(I) is wholly the growth, product, or manufacture of Jordan; or      “(II) is a new or different article of commerce that has been grown, produced, or manufactured in Jordan and meets the requirements of subparagraph (B).
“(B) Requirements.—
“(i) General rule.—The requirements of this subparagraph are that with respect to an article described in subparagraph (A)(ii)(II), the sum of—
     “(I) the cost or value of the materials produced in Jordan, plus      “(II) the direct costs of processing operations performed in Jordan,  is not less than 35 percent of the appraised value of such article at the time it is entered.
“(ii) Materials produced in united states.—If the cost or value of materials produced in the customs territory of the United States is included with respect to an article to which this paragraph applies, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the percentage referred to in clause (i).
“(2) Exclusions.—No article may be considered to meet the requirements of paragraph (1)(A) by virtue of having merely undergone—
“(A) simple combining or packaging operations; or
“(B) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.
“(b) Direct Costs of Processing Operations.—
“(1) In general.—As used in this section, the term ‘direct costs of processing operations’ includes, but is not limited to—
“(A) all actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; and
“(B) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise.
“(2) Excluded costs.—The term ‘direct costs of processing operations’ does not include costs which are not directly attributable to the merchandise concerned, or are not costs of manufacturing the product, such as—
“(A) profit; and
“(B) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen’s salaries, commissions, or expenses.
“(c) Textile and Apparel Articles.—
“(1) In general.—A textile or apparel article imported directly from Jordan into the customs territory of the United States shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) only if—
“(A) the article is wholly obtained or produced in Jordan;
“(B) the article is a yarn, thread, twine, cordage, rope, cable, or braiding, and—
“(i) the constituent staple fibers are spun in Jordan, or
“(ii) the continuous filament is extruded in Jordan;
“(C) the article is a fabric, including a fabric classified under chapter 59 of the HTS, and the constituent fibers, filaments, or yarns are woven, knitted, needled, tufted, felted, entangled, or transformed by any other fabric-making process in Jordan; or
“(D) the article is any other textile or apparel article that is wholly assembled in Jordan from its component pieces.
“(2) Definition.—For purposes of paragraph (1), an article is ‘wholly obtained or produced in Jordan’ if it is wholly the growth, product, or manufacture of Jordan.
“(3) Special rules.—
“(A) Certain made-up articles, textile articles in the piece, and certain other textiles and textile articles.—Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (C) and (D) of this paragraph, subparagraph (A), (B), or (C) of paragraph (1), as appropriate, shall determine whether a good that is classified under one of the following headings or subheadings of the HTS shall be considered to meet the requirements of paragraph (1)(A) of subsection (a): 5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
“(B) Certain knit-to-shape textiles and textile articles.—Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (C) and (D) of this paragraph, a textile or apparel article which is knit-to-shape in Jordan shall be considered to meet the requirements of paragraph (1)(A) of subsection (a).
“(C) Certain dyed and printed textiles and textile articles.—Notwithstanding paragraph (1)(D), a good classified under heading 6117.10, 6213.00, 6214.00. 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for a good classified under any such heading as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton, shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the fabric in the good is both dyed and printed in Jordan, and such dyeing and printing is accompanied by 2 or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing.
“(D) Fabrics of silk, cotton, manmade fiber or vegetable fiber.—Notwithstanding paragraph (1)(C), a fabric classified under the HTS as of silk, cotton, man-made fiber, or vegetable fiber shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the fabric is both dyed and printed in Jordan, and such dyeing and printing is accompanied by 2 or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing.
“(4) Multicountry rule.—If the origin of a textile or apparel article cannot be determined under paragraph (1) or (3), then that article shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if—
“(A) the most important assembly or manufacturing process occurs in Jordan; or
“(B) if the applicability of paragraph (1)(A) of subsection (a) cannot be determined under subparagraph (A), the last important assembly or manufacturing occurs in Jordan.
“(d) Exclusion.—A good shall not be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the good—
“(1) is imported into Jordan, and, at the time of importation, would be classified under heading 0805 of the HTS; and
“(2) is processed in Jordan into a good classified under any of subheadings 2009.11 through 2009.30 of the HTS.
“(e) Regulations.—The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this section.
“TITLE II—RELIEF FROM IMPORTS

“Subtitle A—General Provisions

“SEC. 201. DEFINITIONS.
“As used in this title:
“(1) Commission.—The term ‘Commission’ means the United States International Trade Commission.
“(2) Jordanian article.—The term ‘Jordanian article’ means an article that qualifies for reduction or elimination of a duty under section 102.

“Subtitle B—Relief From Imports Benefiting From The Agreement

“SEC. 211. 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 shall transmit 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.—
“(1) In general.—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, a Jordanian 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 Jordanian article alone 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.
“(2) Causation.—For purposes of this subtitle, a Jordanian article is being imported into the United States in increased quantities as a result of the reduction or elimination of a duty provided for under the Agreement if the reduction or elimination is a cause that contributes significantly to the increase in imports. Such cause need not be equal to or greater than any other cause.
“(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).
“(d) Articles Exempt From Investigation.—No investigation may be initiated under this section with respect to any Jordanian article if import relief has been provided under this subtitle with respect to that article.
“SEC. 212. COMMISSION ACTION ON PETITION.
“(a) Determination.—By no later than 120 days (180 days if critical circumstances have been alleged) after the date on which an investigation is initiated under section 211 (b) with respect to a petition, the Commission shall make the determination required under that section.
“(b) 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, the Commission shall find, and recommend to the President in the report required under subsection (c), 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 213 (c).
“(c) Report to President.—No 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 shall include—
“(1) a statement of the basis for the determination;
“(2) dissenting and separate views; and
“(3) any finding made under subsection (b) regarding import relief.
“(d) Public Notice.—Upon submitting a report to the President under subsection (c), 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.
“(e) 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)) 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).
“SEC. 213. PROVISION OF RELIEF.
“(a) In General.—No later than the date that is 30 days after the date on which the President receives the report of the Commission containing an affirmative determination of the Commission under section 212 (a), the President shall provide relief from imports of the article that is the subject of such determination to the extent that the President determines necessary to prevent or remedy the injury found by the Commission and to facilitate the efforts of the domestic industry to make a positive adjustment to import competition, unless the President determines that the provision of such relief is not in the national economic interest of the United States or, in extraordinary circumstances, that the provision of such relief would cause serious harm to the national security of the United States.
“(b) National Economic Interest.—The President may determine under subsection (a) that providing import relief is not in the national economic interest of the United States only if the President finds that taking such action would have an adverse impact on the United States economy clearly greater than the benefits of taking such action.
“(c) Nature of Relief.—The import relief (including provisional relief) that the President is authorized to provide under this subtitle with respect to imports of an article is—
“(1) the suspension of any further reduction provided for under the United States Schedule to Annex 2.1 of the Agreement in the duty imposed on that article;
“(2) an increase in the rate of duty imposed on such 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; or
“(3) in the case of a duty applied on a seasonal basis to that article, an increase in the rate of duty imposed on the article to a level that does not exceed the column 1 general rate of duty imposed under the HTS on the article for the corresponding season occurring immediately before the date on which the Agreement enters into force.
“(d) Period of Relief.—The import relief that the President is authorized to provide under this section may not exceed 4 years.
“(e) Rate After Termination of Import Relief.—When import relief under this subtitle 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 termination occurs shall be the rate that, according to the United States Schedule to Annex 2.1 of the Agreement for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the import relief action under section 211; and
“(2) the tariff treatment for that article after December 31 of the year in which termination occurs shall be, at the discretion of the President, either—
“(A) the rate of duty conforming to the applicable rate set out in the United States Schedule to Annex 2.1; 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 United States Schedule to Annex 2.1 for the elimination of the tariff.
“SEC. 214. TERMINATION OF RELIEF AUTHORITY.
“(a) General Rule.—Except as provided in subsection (b), no import relief may be provided under this subtitle after the date that is 15 years after the date on which the Agreement enters into force.
“(b) Exception.—Import relief may be provided under this subtitle in the case of a Jordanian article after the date on which such relief would, but for this subsection, terminate under subsection (a), but only if the Government of Jordan consents to such provision.
“SEC. 215. 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 213 shall be treated as action taken under chapter 1 of title II of such Act [19 U.S.C. 2251 et seq.].
“SEC. 216. SUBMISSION OF PETITIONS.
“A petition for import relief may be submitted to the Commission under—
“(1) this subtitle;
“(2) chapter 1 of title II of the Trade Act of 1974 [19 U.S.C. 2251 et seq.]; or
“(3) under both this subtitle and such chapter 1 at the same time, in which case the Commission shall consider such petitions jointly.

“Subtitle C—Cases Under Title II of The Trade Act of 1974

“SEC. 221. FINDINGS AND ACTION ON JORDANIAN IMPORTS.
“(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 [19 U.S.C. 1330 (d)]), 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 Jordan are a substantial cause of serious injury or threat thereof.
“(b) Presidential Action Regarding Jordanian 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 Jordan are a substantial cause of the serious injury found by the Commission and, if such determination is in the negative, may exclude from such action imports from Jordan.
“SEC. 222. TECHNICAL AMENDMENT.
[Amended section 2252 of this title.]
“TITLE III—TEMPORARY ENTRY “SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS.
“Upon the basis of reciprocity secured by the Agreement, an alien who is a national of Jordan (and any spouse or child (as defined in section 101(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1101 (b)(1)) of the alien, if accompanying or following to join the alien) shall be considered as entitled to enter the United States under and in pursuance of the provisions of the Agreement as a nonimmigrant described in section 101(a)(15)(E) of the Immigration and Nationality Act (8 U.S.C. 1101 (a)(15)(E)), if the entry is solely for a purpose described in clause (i) or (ii) of such section and the alien is otherwise admissible to the United States as such a nonimmigrant.
“TITLE IV—GENERAL PROVISIONS “SEC. 401. 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, that is inconsistent with any law of the United States shall have effect.
“(2) Construction.—Nothing in this Act shall be construed—
“(A) to amend or modify any law of the United States; 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
“(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. 402. AUTHORIZATION OF APPROPRIATIONS.
“There are authorized to be appropriated for each fiscal year after fiscal year 2001 to the Department of Commerce not more than $100,000 for the payment of the United States share of the expenses incurred in dispute settlement proceedings under article 17 of the Agreement.
“SEC. 403. IMPLEMENTING REGULATIONS.
“After the date of enactment of this Act [Sept. 28, 2001]—
“(1) the President may proclaim such actions; and
“(2) other appropriate officers of the United States 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 the Agreement enters into force. “SEC. 404. 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 the Agreement enters into force [Dec. 17, 2001].
“(b) Exceptions.—Sections 1 through 3 and this title take effect on the date of the enactment of this Act [Sept. 28, 2001].
“(c) Termination of the Agreement.—On the date on which the Agreement ceases to be in force, the provisions of this Act (other than this subsection) and the amendments made by this Act, shall cease to be effective.”
[The Harmonized Tariff Schedule of the United States is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.]

United States-Canada Free-Trade Agreement Implementation

Pub. L. 100–449, Sept. 28, 1988, 102 Stat. 1851, as amended by Pub. L. 101–207, § 1(b), Dec. 7, 1989, 103 Stat. 1833; Pub. L. 101–382, title I, §§ 103(b), 134 (b), Aug. 20, 1990, 104 Stat. 635, 651; Pub. L. 103–182, title I, § 107, title III, § 308(a), title IV, § 413, Dec. 8, 1993, 107 Stat. 2065, 2104, 2147; Pub. L. 104–66, title I, § 1021(d), Dec. 21, 1995, 109 Stat. 712; Pub. L. 105–206, title V, § 5003(b)(3), July 22, 1998, 112 Stat. 789, provided that:
“SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
“(a) Short Title.—This Act [enacting section 1584 of Title 28, Judiciary and Judicial Procedure, amending sections 58c, 81c, 1305, 1306, 1311, 1312, 1313, 1502, 1508, 1514, 1516a, 1562, 1677, 1677f, and 2518 of this title, sections 150bb, 150cc, 154, 156, 624, 1582, and 2803 of Title 7, Agriculture, section 1184 of Title 8, Aliens and Nationality, section 24 of Title 12, Banks and Banking, section 152 of Title 21, Food and Drugs, sections 1581, 2201, and 2643 of Title 28, section 2201 of Title 42, The Public Health and Welfare, section 2406 of the Appendix to Title 50, War and National Defense, enacting provisions set out as notes below, and amending provisions set out as a note under section 2253 of this title] may be cited as the ‘United States-Canada Free-Trade Agreement Implementation Act of 1988’.
“(b) Table of Contents.—[Omitted.]
“SEC. 2. PURPOSES.
“The purposes of this Act are—
“(1) to approve and implement the Free-Trade Agreement between the United States and Canada negotiated under the authority of section 102 of the Trade Act of 1974 [19 U.S.C. 2112];
“(2) to strengthen and develop economic relations between the United States and Canada for their mutual benefit;
“(3) to establish a free-trade area between the two 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.
“TITLE I—APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREEMENT AND RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW “SEC. 101. APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREEMENT.
“(a) Approval of Agreement and Statement of Administrative Action.—Pursuant to sections 102 and 151 of the Trade Act of 1974 (19 U.S.C. 2112 and 2191), the Congress approves—
“(1) the United States-Canada Free-Trade Agreement (hereinafter in this Act referred to as the ‘Agreement’) entered into on January 2, 1988, and submitted to the Congress on July 25, 1988;
“(2) the letters exchanged between the Governments of the United States and Canada—
“(A) dated January 2, 1988, relating to negotiations regarding articles 301 (Rules of Origin) and 401 (Tariff Elimination) of the Agreement, and
“(B) dated January 2, 1988, relating to negotiations regarding article 2008 (Plywood Standards) of the Agreement; and
“(3) the statement of administrative action proposed to implement the Agreement that was submitted to the Congress on July 25, 1988.
“(b) Conditions for Entry Into Force of the Agreement.—At such time as the President determines that Canada has taken measures necessary to comply with the obligations of the Agreement, the President is authorized to exchange notes with the Government of Canada providing for the entry into force, on or after January 1, 1989, of the Agreement with respect to the United States.
“(c) Report on Canadian Practices.—Within 60 days after the date of the enactment of this Act [Sept. 28, 1988] (but not later than December 15, 1988), the United States Trade Representative shall submit to the Congress a report identifying, to the maximum extent practicable, major current Canadian practices (and the legal authority for such practices) that, in the opinion of the United States Trade Representative—
“(1) are not in conformity with the Agreement; and
“(2) require a change of Canadian law, regulation, policy, or practice to enable Canada to conform with its international obligations under the Agreement.
“SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW.
“(a) United States Laws To Prevail in Conflict.—No provision of the Agreement, nor the application of any such provision to any person or circumstance, which is in conflict with any law of the United States shall have effect.
“(b) Relationship of Agreement to State and Local Law.—
“(1) The provisions of the Agreement prevail over—
“(A) any conflicting State law; and
“(B) any conflicting application of any State law to any person or circumstance;
to the extent of the conflict.
“(2) Upon the enactment of this Act, the President shall, in accordance with section 306(c)(2)(A) of the Trade and Tariff Act of 1984 (19 U.S.C. 2114c), initiate consultations with the State governments on the implementation of the obligations of the United States under the Agreement. Such consultations shall be held—
“(A) through the intergovernmental policy advisory committees on trade established under such section for the purpose of achieving conformity of State laws and practices with the Agreement; and
“(B) with the individual States as necessary to deal with particular questions that may arise.
“(3) The United States may bring an action challenging any provision of State law, or the application thereof to any person or circumstance, on the ground that the provision or application is inconsistent with the Agreement.
“(4) 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 shall—
“(1) have any cause of action or defense under the Agreement or by virtue of congressional approval thereof, or
“(2) 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.
“(d) Initial Implementing Regulations.—Initial regulations necessary or appropriate to carry out the actions proposed in the statement of administrative action submitted under section 101 (a)(3) to implement the Agreement shall, to the maximum extent feasible, be issued within 1 year after the date of entry into force of the Agreement [Jan. 1, 1989]. In the case of any implementing action that takes effect after the date of entry into force of the Agreement, initial regulations to carry out that action shall, to the maximum extent feasible, be issued within 1 year after such effective date.
“(e) Changes in Statutes To Implement a Requirement, Amendment, or Recommendation.—The provisions of section 3(c) of the Trade Agreements Act of 1979 (19 U.S.C. 2504 (c)) shall apply as if the Agreement were an agreement approved under section 2(a) of that Act [19 U.S.C. 2503 (a)] whenever the President determines that it is necessary or appropriate to amend, repeal, or enact a statute of the United States in order to implement any requirement of, amendment to, or recommendation, finding or opinion under, the Agreement; but such provisions shall not apply to any bill to implement any such requirement, amendment, recommendation, finding, or opinion that is submitted to the Congress after the close of the 30th month after the month in which the Agreement enters into force [January 1989].
“SEC. 103. CONSULTATION AND LAY-OVER REQUIREMENTS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS.
“(a) Consultation and Lay-Over Requirements.—If a provision of this Act provides that the implementation of an action by the President by proclamation is subject to the consultation and lay-over 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 Ways and Means of the House of Representatives and the Committee on Finance of the Senate that sets forth—
“(A) the action proposed to be proclaimed and the reasons therefor, and
“(B) the advice obtained under paragraph (1);
“(3) a period of at least 60 calendar days that begins on the first day on which the President has met the requirements of paragraphs (1) and (2) with respect to such action has expired; and
“(4) the President has consulted with such Committees regarding the proposed action during the period referred to in paragraph (3).
“(b) Effective Date of Certain Proclaimed Actions.—No action proclaimed by the President under the authority of this Act, if such action is not subject to the consultation and lay-over requirements under subsection (a), may take effect before the 15th day after the date on which the text of the proclamation is published in the Federal Register.
“SEC. 104. HARMONIZED SYSTEM.
“(a) Definition.—As used in this Act, the term ‘Harmonized System’ means the nomenclature system established under 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) as implemented under United States law.
“(b) Interim Application of TSUS.—The following apply if the International Convention, and the protocol thereto, referred to in subsection (a) are not implemented under United States law before the Agreement enters into force:
“(1) The President, subject to subsection (c), shall proclaim such modifications to the Tariff Schedules of the United States (19 U.S.C. 1202) as may be necessary to give effect, until such time as such Convention and protocol are so implemented, to the rules of origin, schedule of rate reductions, and other provisions that would, but for the absence of such implementation, be proclaimed under the authority of this Act to, or in terms of, the Harmonized System to implement the obligations of the United States under the Agreement.
“(2) Until such time as such Convention and protocol are so implemented, any reference in this Act to the nomenclature of such Convention and protocol shall be treated as a reference to the corresponding nomenclature of the Tariff Schedules of the United States as modified under paragraph (1).
“(c) Restrictions.—
“(1) No modification described in subsection (b)(1) that is to take effect concurrently with the entry into force of the Agreement may be proclaimed unless the text of the modification is published in the Federal Register at least 30 days before the date of entry into force [Jan. 1, 1989].
“(2) All modifications proclaimed under the authority of subsection (b)(1) after the Agreement enters into force with respect to the United States are subject to the consultation and lay-over requirements of section 103 (a).
“SEC. 105. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE.
“Subject to section 103 or 104 (c), as appropriate, and any other applicable restriction or limitation in this Act on the proclaiming of actions or the issuing of regulations to carry out this Act or any amendment made by this Act, after the date of the enactment of this Act [Sept. 28, 1988]—
“(1) the President may proclaim such actions; and
“(2) other appropriate officers of the United States Government may issue such regulations;
as may be necessary to ensure that any provision of this Act, or amendment made by this Act, that takes effect on the date the Agreement enters into force [Jan. 1, 1989] is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date of entry into force. “TITLE II—TARIFF MODIFICATIONS, RULES OF ORIGIN, USER FEES, DRAWBACK, ENFORCEMENT, AND OTHER CUSTOMS PROVISIONS “SEC. 201. TARIFF MODIFICATIONS.
“(a) Tariff Modifications Specified in the Agreement.—The President may proclaim—
“(1) such modifications or continuance of any existing duty;
“(2) such continuance of existing duty-free or excise treatment; or
“(3) such additional duties;
as the President determines to be necessary or appropriate to carry out article 401 of the Agreement and the schedule of duty reductions with respect to Canada set forth in Annexes 401.2 and 401.7 to the Agreement, as approved under section 101 (a)(1). For purposes of proclaiming necessary modifications under such Annex 401.2, any article covered under subheading 9813.00.05 (contained in the United States Schedule in such Annex) shall, unless such article is a drawback eligible good under section 204 (a), be treated as being subject to any otherwise applicable customs duty if the article, or merchandise incorporating such article, is exported to Canada.
“(b) Other Tariff Modifications.—Subject to the consultation and lay-over requirements of section 103 (a), the President may proclaim—
“(1) such modifications as the United States and Canada may agree to regarding the staging of any duty treatment set forth in Annexes 401.2 and 401.7 of the Agreement;
“(2) such modifications or continuance of any existing duty;
“(3) such continuance of existing 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 Canada provided for by the Agreement.
“(c) Modifications Affecting Plywood.—
“(1) The Congress encourages the President to facilitate the preparation, and the implementation with Canada, of common performance standards for the use of softwood plywood and other structural panels in construction applications in the United States and Canada.
“(2) The President shall report to the Congress on the incorporation of common plywood performance standards into building codes in the United States and Canada and may implement the provisions of article 2008 of the Agreement when he determines that the necessary conditions have been met.
“(3) Any tariff reduction undertaken pursuant to paragraph (2) shall be in equal annual increments ending January 1, 1998, unless those reductions commence after January 1, 1991.
“SEC. 202. RULES OF ORIGIN.
“(a) In General.—
“(1) For purposes of implementing the tariff treatment contemplated under the Agreement, goods originate in the territory of a Party if—
“(A) they are wholly obtained or produced in the territory of either Party or both Parties; or
“(B) they—
“(i) have been transformed in the territory of either Party or both Parties so as to be subject to a change in tariff classification as described in the Annex rules or to such other requirements as the Annex rules may provide when no change in tariff classifications occurs, and
“(ii) meet the other conditions set out in the Annex.
“(2) A good shall not be considered to originate in the territory of a party [Party] under paragraph (1)(B) merely by virtue of having undergone—
“(A) simple packaging or, except as expressly provided by the Annex rules, combining operations;
“(B) mere dilution with water or another substance that does not materially alter the characteristics of the good; or
“(C) any process or work in respect of which it is established, or in respect of which the facts as ascertained clearly justify the presumption, that the sole object was to circumvent the provisions of chapter 3 of the Agreement.
“(3) Accessories, spare parts, or tools delivered with any piece of equipment, machinery, apparatus, or vehicle that form part of its standard equipment shall be treated as having the same origin as that equipment, machinery, apparatus, or vehicle if the quantities and values of such accessories, spare parts, or tools are customary for the equipment, machinery, apparatus, or vehicle.
“(b) Transshipment.—Goods exported from the territory of one Party originate in the territory of that Party only if—
“(1) the goods meet the applicable requirements of subsection (a) and are shipped to the territory of the other Party without having entered the commerce of any third country;
“(2) the goods, if shipped through the territory of a third country, do not undergo any operation other than unloading, reloading, or any operation necessary to transport them to the territory of the other Party or to preserve them in good condition; and
“(3) the documents related to the exportation and shipment of the goods from the territory of a Party show the territory of the other Party as their final destination.
“(c) Interpretation.—In interpreting this section, the following apply:
“(1) Whenever the processing or assembly of goods in the territory of either Party or both Parties results in one of the changes in tariff classification described in the Annex rules, such goods shall be considered to have been transformed in the territory of that Party and shall be treated as goods originating in the territory of that Party if—
“(A) such processing or assembly occurs entirely within the territory of either Party or both Parties; and
“(B) such goods have not subsequently undergone any processing or assembly outside the territories of the Parties that improves the goods in condition or advances them in value.
“(2) Whenever the assembly of goods in the territory of a Party fails to result in a change of tariff classification because either—
“(A) the goods were imported into the territory of the Party in an unassembled or a disassembled form and were classified as unassembled or disassembled goods pursuant to General Rule of Interpretation 2(a) of the Harmonized System; or
“(B) the tariff subheading for the goods provides for both the goods themselves and their parts;
such goods shall not be treated as goods originating in the territory of a Party.
“(3) Notwithstanding paragraph (2), goods described in that paragraph shall be considered to have been transformed in the territory of a Party and be treated as goods originating in the territory of the Party if—
“(A) the value of materials originating in the territory of either Party or both Parties used or consumed in the production of the goods plus the direct cost of assembling the goods in the territory of either Party or both Parties constitute not less than 50 percent of the value of the goods when exported to the territory of the other Party; and
“(B) the goods have not subsequent to assembly undergone processing or further assembly in a third country and they meet the requirements of subsection (b).
“(4) The provisions of paragraph (3) shall not apply to goods of chapters 61–63 of the Harmonized System.
“(5) In making the determination required by paragraph (3)(A) and in making the same or a similar determination when required by the Annex rules, where materials originating in the territory of either Party or both Parties and materials obtained or produced in a third country are used or consumed together in the production of goods in the territory of a Party, the value of materials originating in the territory of either Party or both Parties may be treated as such only to the extent that it is directly attributable to the goods under consideration.
“(6) In applying the Annex rules, a specific rule shall take precedence over a more general rule.
“(d) Annex Rules.—
“(1) The President is authorized to proclaim, as a part of the Harmonized System, the rules set forth under the heading ‘Rules’ in Annex 301.2 of the Agreement. For purposes of carrying out this paragraph—
“(A) the phrase ‘headings 2207–2209’ in paragraph 7 of section IV of such Annex 301.2 shall be treated as a reference to headings 2203–2209; and
“(B) the phrase ‘any other heading’ in paragraph 11 of section XV in such Annex 301.2 shall be treated as a reference to any other heading of chapter 74 of the Harmonized System.
“(2) Subject to the consultation and lay-over requirements of section 103, the President is authorized to proclaim such modifications to the rules as may from time-to-time be agreed to by the United States and Canada.
“(e) Automotive Products.—
“(1) The President is authorized to proclaim such modifications to the definition of Canadian articles (relating to the administration of the Automotive Products Trade Act of 1965 [19 U.S.C. 2001 et seq.]) in the general notes of the Harmonized System as may be necessary to conform that definition with chapter 3 of the Agreement.
“(2) For purposes of administering the value requirement (as defined in section 304 (c)(3)) with respect to vehicles, the Secretary of the Treasury shall prescribe regulations governing the averaging of the value content of vehicles of the same class, or of sister vehicles, assembled in the same plant as an alternative to the calculation of the value content of each vehicle.
“(f) Definitions.—For purposes of this section:
“(1) The term ‘Annex’ means—
“(A) the interpretative guidelines set forth in subsection (c); and
“(B) the Annex rules.
“(2) The term ‘Annex rules’ means the rules proclaimed under subsection (d).
“(3) The term ‘direct cost of processing or direct cost of assembling’ means the costs directly incurred in, or that can reasonably be allocated to, the production of goods, including—
“(A) the cost of all labor, including benefits and on-the-job training, labor provided in connection with supervision, quality control, shipping, receiving, storage, packaging, management at the location of the process or assembly, and other like labor, whether provided by employees or independent contractors;
“(B) the cost of inspecting and testing the goods;
“(C) the cost of energy, fuel, dies, molds, tooling, and the depreciation and maintenance of machinery and equipment, without regard to whether they originate within the territory of a Party;
“(D) development, design, and engineering costs;
“(E) rent, mortgage interest, depreciation on buildings, property insurance premiums, maintenance, taxes and the cost of utilities for real property used in the production of goods; and
“(F) royalty, licensing, or other like payments for the right to the goods;
but not including—
“(i) costs relating to the general expense of doing business, such as the cost of providing executive, financial, sales, advertising, marketing, accounting and legal services, and insurance;
“(ii) brokerage charges relating to the importation and exportation of goods;
“(iii) the costs for telephone, mail, and other means of communication;
“(iv) packing costs for exporting the goods;
“(v) royalty payments related to a licensing agreement to distribute or sell the goods;
“(vi) rent, mortgage interest, depreciation on buildings, property insurance premiums, maintenance, taxes, and the cost of utilities for real property used by personnel charged with administrative functions; or
“(vii) profit on the goods.
“(4) The term ‘goods wholly obtained or produced in the territory of either Party or both Parties’ means—
“(A) mineral goods extracted in the territory of either Party or both Parties;
“(B) goods harvested in the territory of either Party or both Parties;
“(C) live animals born and raised in the territory of either Party or both Parties;
“(D) goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag;
“(E) goods produced on board factory ships from the goods referred to in subparagraph (D) provided such factory ships are registered or recorded with that Party and fly its flag;
“(F) goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that Party has rights to exploit such seabed;
“(G) goods taken from space, provided they are obtained by a Party or a person of a Party and not processed in a third country;
“(H) waste and scrap derived from manufacturing operations and used goods, provided they were collected in the territory of either Party or both Parties and are fit only for the recovery of raw materials; and
“(I) goods produced in the territory of either Party or both Parties exclusively from goods referred to in subparagraphs (A) to (H) inclusive or from their derivatives, at any stage of production.
“(5) The term ‘materials’ means goods, other than those included as part of the direct cost of processing or assembling, used or consumed in the production of other goods.
“(6) The term ‘Party’ means Canada or the United States.
“(7) The term ‘territory’ means—
“(A) with respect to Canada, the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic laws, Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and
“(B) with respect to the United States—
“(i) the customs territory of the United States, which includes the fifty States, the District of Columbia and the Commonwealth of Puerto Rico,
“(ii) the foreign trade zones located in the United States, and the Commonwealth of Puerto Rico, and
“(iii) any area beyond the territorial seas of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the seabed and subsoil and their natural resources.
“(8) The term ‘third country’ means any country other than Canada or the United States or any territory not a part of the territory of either.
“(9) The term ‘value of materials originating in the territory of either Party or both Parties’ means the aggregate of—
“(A) the price paid by the producer of an exported good for materials originating in the territory of either Party or both Parties or for materials imported from a third country used or consumed in the production of such originating materials; and
“(B) when not included in that price, the following costs related thereto—
“(i) freight, insurance, packing, and all other costs incurred in transporting any of the materials referred to in subparagraph (A) to the location of the producer;
“(ii) duties, taxes, and brokerage fees on such materials paid in the territory of either Party or both Parties;
“(iii) the cost of waste or spoilage resulting from the use or consumption of such materials, less the value of renewable scrap or byproduct; and
“(iv) the value of goods and services relating to such materials determined in accordance with subparagraph 1(b) of article 8 of the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade.
“(10) The term ‘value of the goods when exported to the territory of the other Party’ means the aggregate of—
“(A) the price paid by the producer for all materials, whether or not the materials originate in either Party or both Parties, and, when not included in the price paid for the materials, the costs related to—
“(i) freight, insurance, packing, and all other costs incurred in transporting all materials to the location of the producer;
“(ii) duties, taxes, and brokerage fees on all materials paid in the territory of either Party or both Parties;
“(iii) the cost of waste or spoilage resulting from the use or consumption of such materials, less the value of renewable scrap or byproduct; and
“(iv) the value of goods and services relating to all materials determined in accordance with subparagraph 1(b) of article 8 of the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade; and
“(B) the direct cost of processing or the direct cost of assembling the goods.
“(g) Special Provision Regarding Application of Rules of Origin to Certain Apparel.—The Secretary of Commerce is authorized to issue regulations governing the exportation to Canada of apparel products that are cut, or knit to shape, and sewn, or otherwise assembled, in either Party from fabric produced or obtained in a third country for the purpose of establishing which exports of such products shall be permitted to claim preferential tariff treatment under the rules of origin of the Agreement, to the extent that the Agreement provides for quantitative limits on the availability of preferential tariff treatment for such products.
“SEC. 203. CUSTOMS USER FEES.
[Amended section 58c of this title.]
“SEC. 204. DRAWBACK.
“(a) Definition.—For purposes of this section, the term ‘drawback eligible goods’ means—
“(1) goods provided for under paragraph 8 of article 404 of the Agreement;
“(2) goods provided for under paragraphs 4 and 5 of such article; and
“(3) goods other than those referred to in paragraphs (1) and (2) that the United States and Canada agree are not subject to paragraphs 1, 2, and 3 of such article.
No drawback may be paid with respect to countervailing duties or antidumping duties imposed on drawback eligible goods.
“(b) Implementation of Article 404.—The President is authorized—
“(1) to proclaim the identity, in accordance with the nomenclature of the Harmonized System, of goods referred to in subsection (a)(1); and
“(2) subject to the consultation and lay-over requirements of section 103 (a), to proclaim—
“(A) the identity, in accordance with the nomenclature of the Harmonized System, of goods referred to in subsection (a)(3); and
“(B) a delay in the taking effect of article 404 of the Agreement to a date later than January 1, 1994, with respect to any merchandise if the United States and Canada agree to the delay under paragraph 7 of such article.
“(c) Consequential Amendments.—
“(1) Bonded manufacturing warehouses.—[Amended section 1311 of this title.]
“(2) Bonded smelting and refining warehouses.—[Amended section 1312 of this title.]
“(3) Drawback.—[Amended section 1313 of this title.]
“(4) Manipulation in warehouse.—[Amended section 1562 of this title.]
“(5) Foreign trade zones.—[Amended section 81c of this title.]
“SEC. 205. ENFORCEMENT.
“(a) Certifications of Origin.—
“(1) Any person that certifies in writing that goods exported to Canada meet the rules of origin under section 202 of the United States-Canada Free-Trade Agreement Implementation Act of 1988 [section 202 of this note] shall provide, upon request by any customs official, a copy of that certification.
“(2) Any person that fails to provide a copy of a certification requested under paragraph (1) shall be liable to the United States for a civil penalty not to exceed $10,000.
“(3) Any person that certifies falsely that goods exported to Canada meet the rules of origin under such section 202 shall be liable to the United States for the same civil penalties provided under section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) for a violation of section 592(a) of such Act by fraud, gross negligence, or negligence, as the case may be. The procedures and provisions of section 592 of such Act that are applicable to a violation under section 592(a) of such Act shall apply with respect to such false certification.
“(b) Housekeeping Requirements.—[Amended section 1508 of this title.]
“SEC. 206. EXEMPTION FROM LOTTERY TICKET EMBARGO
[Amended section 1305 of this title.]
“SEC. 207. PRODUCTION-BASED DUTY REMISSION PROGRAMS WITH RESPECT TO AUTOMOTIVE PRODUCTS.
“(a) USTR Study.—The United States Trade Representative shall—
“(1) undertake a study to determine whether any of the production-based duty remission programs of Canada with respect to automotive products is either—
“(A) inconsistent with the provisions of, or otherwise denies the benefits to the United States under, the General Agreement on Tariffs and Trade, or
“(B) being implemented inconsistently with the obligations under article 1002 of the Agreement not—
“(i) to expand the extent or the application, or
“(ii) to extend the duration,
  of such programs; and
“(2) determine whether to initiate an investigation under section 302 of the Trade Act of 1974 [19 U.S.C. 2412] with respect to any of such production-based duty remission programs.
“(b) Report and Monitoring.—
“(1) The United States Trade Representative shall submit a report to Congress no later than June 30, 1989 (or no later than September 30, 1989, if the Trade Representative considers an extension to be necessary) containing—
“(A) the results of the study under subsection (a)(1), as well as a description of the basis used for measuring and verifying compliance with the obligations referred to in subsection (a)(1)(B); and
“(B) any determination made under subsection (a)(2) and the reasons therefor.
“(2) Notwithstanding the submission of the report under paragraph (1), the Trade Representative shall continue to monitor the degree of compliance with the obligations referred to in subsection (a)(1)(B).
“TITLE III—APPLICATION OF AGREEMENT TO SECTORS AND SERVICES “SEC. 301. AGRICULTURE.
“(a) Special Tariff Provisions for Fresh Fruits and Vegetables.—
“(1) The Secretary of Agriculture (hereafter in this section referred to as the ‘Secretary’) may recommend to the President the imposition of a temporary duty on any Canadian fresh fruit or vegetable entered into the United States if the Secretary determines that both of the following conditions exist at the time that imposition of the duty is recommended:
“(A) For each of 5 consecutive working days the import price of the Canadian fresh fruit or vegetable is below 90 percent of the corresponding 5-year average monthly import price for such fruit or vegetable.
“(B) The planted acreage in the United States for the like fresh fruit or vegetable is no higher than the average planted acreage over the preceding 5 years, excluding the years with the highest and lowest acreage. For the purposes of applying this subparagraph, any acreage increase attributed directly to a reduction in the acreage that was planted to wine grapes as of October 4, 1987, shall be excluded.
Whenever the Secretary makes a determination that the conditions referred to in subparagraphs (A) and (B) regarding any Canadian fresh fruit or vegetable exist, the Secretary shall immediately submit for publication in the Federal Register notice of the determination.
“(2) No later than 6 days after publication in the Federal Register of the notice described in paragraph (1), the Secretary shall decide whether to recommend the imposition of a temporary duty to the President, and if the Secretary decides to make such a recommendation, the recommendation shall be forwarded immediately to the President.
“(3) In determining whether to recommend the imposition of a temporary duty to the President under paragraph (1), the Secretary shall consider whether the conditions in subparagraphs (A) and (B) of such paragraph have led to a distortion in trade between the United States and Canada of the fresh fruit or vegetable and, if so, whether the imposition of the duty is appropriate, including consideration of whether it would significantly correct this distortion.
“(4) Not later than 7 days after receipt of a recommendation of the Secretary under paragraph (1), the President, after taking into account the national economic interests of the United States, shall determine whether to impose a temporary duty on the Canadian fresh fruit or vegetable concerned. If the determination is affirmative, the President shall proclaim the imposition and the rate of the temporary duty, but such duty shall not apply to the entry of articles that were in transit to the United States on the first day on which the temporary duty is in effect.
“(5) A temporary duty imposed under paragraph (4) shall cease to apply with respect to articles that are entered on or after the earlier of—
“(A) the day following the last of 5 consecutive working days with respect to which the Secretary determines that the point of shipment price in Canada for the Canadian fruit or vegetable concerned exceeds 90 percent of the corresponding 5-year average monthly import price; or
“(B) the 180th day after the date on which the temporary duty first took effect.
“(6) No temporary duty may be imposed under this subsection on a Canadian fresh fruit or vegetable during such time as import relief is provided with respect to such fresh fruit or vegetable under chapter 1 of title II of the Trade Act of 1974 [19 U.S.C. 2251 et seq.].
“(7) For purposes of this subsection:
“(A) The term ‘Canadian fresh fruit or vegetable’ means any article originating in Canada (as determined in accordance with section 202) and classified within any of the following headings of the Harmonized System:
“(i) 07.01 (relating to potatoes, fresh or chilled);
“(ii) 07.02 (relating to tomatoes, fresh or chilled);
“(iii) 07.03 (relating to onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled);
“(iv) 07.04 (relating to cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled);
“(v) 07.05 (relating to lettuce (lactuca sativa) and chicory (cichorium spp.), fresh or chilled);
“(vi) 07.06 (relating to carrots, salad beets or beetroot, salsify, celeriac, radishes and similar edible roots (excluding turnips), fresh or chilled);
“(vii) 07.07 (relating to cucumbers and gherkins, fresh or chilled);
“(viii) 07.08 (relating to leguminous vegetables, shelled or unshelled, fresh or chilled);
“(ix) 07.09 (relating to other vegetables (excluding truffles), fresh or chilled);
“(x) 08.06.10 (relating to grapes, fresh);
“(xi) 08.08.20 (relating to pears and quinces, fresh);
“(xii) 08.09 (relating to apricots, cherries, peaches (including nectarines), plums and sloes, fresh); and
“(xiii) 08.10 (relating to other fruit (excluding cranberries and blueberries), fresh).
“(B) The term ‘corresponding 5-year average monthly import price’ for a particular day means the average import price of a Canadian fresh fruit or vegetable, for the calendar month in which that day occurs, for that month in each of the preceding 5 years, excluding the years with the highest and lowest monthly averages.
“(C) The term ‘import price’ has the meaning given such term in article 711 of the Agreement.
“(D) The rate of a temporary duty imposed under this subsection with respect to a Canadian fresh fruit or vegetable means a rate that, including the rate of any other duty in effect for such fruit or vegetable, does not exceed the lesser of—
“(i) the duty that was in effect for the fresh fruit or vegetable before January 1, 1989, under column one of the Tariff Schedules of the United States for the applicable season in which the temporary duty is applied; or
“(ii) the duty in effect for the fresh fruit or vegetable under column one of such Schedules, or column 1 (General) of the Harmonized System, at the time the temporary duty is applied.
“(8)(A) The Secretary shall, to the extent practicable, administer the provisions of this subsection to the 8-digit level of classification under the Harmonized System.
“(B) The Secretary may issue such regulations as may be necessary to implement the provisions of this subsection.
“(9) For purposes of assisting the Secretary in carrying out this subsection—
“(A) the Commissioner of Customs and the Director of the Bureau of Census shall cooperate in providing the Secretary with timely information and data relating to the importation of Canadian fresh fruits and vegetables, and
“(B) importers shall report such information relating to Canadian fresh fruits and vegetables to the Commissioner of Customs at such time and in such manner as the Commissioner requires.
“(10) The authority to impose temporary duties under this subsection expires on the 20th anniversary of the date on which the Agreement enters into force.
“(b) Meat Import Act of 1979.—[Amended section 2 of Pub. L. 88–482, set out as a note under section 2253 of this title.]
“(c) Agricultural Adjustment Act.—[Amended section 624 of Title 7, Agriculture.]
“(d) Importation of Animal Vaccines.—[Amended section 152 of Title 21, Food and Drugs.]
“(e) Importation of Seeds.—[Amended section 1582 of Title 7, Agriculture.]
“(f) Plant and Animal Health Regulations.—
“(1) [Amended section 150bb of Title 7.]
“(2) [Amended section 150cc of Title 7.]
“(3) [Amended sections 154 and 156 of Title 7.]
“(4) [Amended section 2803 of Title 7.]
“(5) [Amended section 1306 of this title.]
“SEC. 302. RELIEF FROM IMPORTS.
“(a) Relief From Imports of Canadian Articles.—
“(1) A petition requesting action under this section for the purpose of adjusting to the obligations of the United States under the Agreement may be filed with the United States International Trade Commission (hereafter in this section referred to as the ‘Commission’) by an entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of an industry. The Commission shall transmit a copy of any petition filed under this paragraph to the United States Trade Representative.
“(2)(A) Upon the filing of a petition under paragraph (1), the Commission shall promptly initiate an investigation to determine whether, as a result of a reduction or elimination of a duty provided for under the United States-Canada Free-Trade Agreement, an article originating in Canada is being imported into the United States in such increased quantities, in absolute terms, and under such conditions, so that imports of such Canadian article, alone, constitute a substantial cause of serious injury to the domestic industry producing an article like, or directly competitive with, the imported article.
“(B) The provisions of—
“(i) paragraphs (2), (3), (4), (6), and (7) of subsection (b), other than paragraph (2)(B), and
“(ii) subsection (c),
of section 201 of the Trade Act of 1974 (19 U.S.C. 2251), as in effect on June 1, 1988, shall apply with respect to any investigation initiated under subparagraph (A).
“(C) By no later than the date that is 120 days after the date on which an investigation is initiated under subparagraph (A), the Commission shall make a determination under subparagraph (A) with respect to such investigation.
“(D) If the determination made by the Commission under subparagraph (A) with respect to imports of an article is affirmative, the Commission shall find and recommend to the President the amount of import relief that is necessary to remedy the injury found by the Commission in such affirmative determination, which shall be limited to that set forth in paragraph (3)(C).
“(E)(i) By no later than the date that is 30 days after the date on which a determination is made under subparagraph (A) with respect to an investigation, the Commission shall submit to the President a report on the determination and the basis for the determination. The report shall include any dissenting or separate views and a transcript of the hearings and any briefs which were submitted to the Commission in the course of the investigation initiated under subparagraph (A).
“(ii) Any finding made under subparagraph (D) shall be included in the report submitted to the President under clause (i).
“(F) Upon submitting a report to the President under subparagraph (E), 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.
“(G) For purposes of this subsection—
“(i) The provisions of paragraphs (1), (2), and (3) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330 (d)) shall be applied with respect to determinations and findings made under this paragraph as if such determinations and findings were made under section 201 of the Trade Act of 1974 (19 U.S.C. 2251).
“(ii) The determination of whether an article originates in Canada shall be made in accordance with section 202 (including any proclamations issued under section 202).
“(3)(A) By no later than the date that is 30 days after the date on which the President receives the report of the Commission containing an affirmative determination made by the Commission under paragraph (2)(A), the President shall provide relief from imports of the article originating in Canada that is the subject of such determination to the extent that, and for such time (not to exceed 3 years) as the President determines to be necessary to remedy the injury found by the Commission.
“(B) The President is not required to provide import relief by reason of this paragraph if the President determines that the provision of such import relief is not in the national economic interest.
“(C) The import relief that the President is authorized to provide by reason of this paragraph with respect to an article originating in Canada is limited to—
“(i) the suspension of any further reductions provided for under the Agreement in the duty imposed on such article originating in Canada,
“(ii) an increase in the rate of duty imposed on such article originating in Canada to a level that does not exceed the lesser of—
“(I) the general subcolumn of the column 1 rate of duty set forth in the Harmonized Tariff Schedule of the United States that is imposed by the United States on such article from any other foreign country at the time such import relief is provided, or
“(II) the general subcolumn of the column 1 rate of duty set forth in the Harmonized Tariff Schedule of the United States that is imposed by the United States on such article from any other foreign country on the day before the date on which the Agreement enters into force [Jan. 1, 1989], or
“(iii) in the case of a duty applied on a seasonal basis to such article originating in Canada, an increase in the rate of duty imposed on such article originating in Canada to a level that does not exceed the general subcolumn of the column 1 rate of duty set forth in the Harmonized Tariff Schedule of the United States imposed by the United States on such article originating in Canada for the corresponding season immediately prior to the date on which the Agreement enters into force.
“(4)(A) No investigation may be initiated under paragraph (2)(A) with respect to any article for which import relief has been provided under this subsection.
“(B) No import relief may be provided under this subsection after the date that is 10 years after the date on which the Agreement enters into force [Jan. 1, 1989].
“(5) For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any import relief provided by the President under paragraph (3) shall be treated as action taken under chapter I [1] of title II of such Act [19 U.S.C. 2251 et seq.].
“(b) Relief From Imports From All Countries.—
“(1)(A) 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 is treated as an affirmative determination under such chapter by reason of section 330(d) of the Tariff Act of 1930 [19 U.S.C. 1330 (d)]) 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, the Commission shall also find (and report to the President at the time such injury determination is submitted to the President), whether imports from Canada of the article that is the subject of such investigation are substantial and are contributing importantly to such injury or threat thereof.
“(B)(i) In determining under subparagraph (A) whether imports of an article from Canada are substantial, the Commission shall not normally consider imports from Canada in the range of 5 to 10 percent or less of total imports of such article to be substantial.
“(ii) For purposes of this paragraph, the term ‘contributing importantly’ means an important cause, but not necessarily the most important cause, of the serious injury or threat thereof caused by imports.
“(2)(A) In determining whether to take action under chapter 1 of title II of the Trade Act of 1974 with respect to imports from Canada, the President shall determine whether imports from Canada of such article are substantial and contributing importantly to the serious injury or threat of serious injury found by the Commission.
“(B) 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 exclude from such action imports from Canada if the President has made a negative determination under subparagraph (A) regarding imports from Canada.
“(3)(A) If, under paragraph (2)(B), the President excludes imports from Canada from action taken under chapter 1 of title II of the Trade Act of 1974, the President may, if the President thereafter determines that a surge in imports from Canada of the article that is the subject of the action is undermining the effectiveness of the action, take appropriate action under such chapter with respect to such imports from Canada to include such imports in such action.
“(B)(i) If, under paragraph (2)(B), the President excludes imports from Canada from action taken under chapter 1 of title II of the Trade Act of 1974, any entity, including a trade association, firm, certified or recognized union, or group of workers, that is representative of an industry for which such action is being taken under such chapter may request the Commission to conduct an investigation of imports from Canada of the article that is the subject of such action.
“(ii) Upon receiving a request under clause (i), the Commission shall conduct an investigation to determine whether a surge in imports from Canada of the article that is the subject of action being taken under chapter 1 of title II of the Trade Act of 1974 undermines the effectiveness of such action. The Commission shall submit the findings of such investigation to the President by no later than the date that is 30 days after the date on which such request is received by the Commission.
“(C) For purposes of this paragraph, the term ‘surge’ means a significant increase in imports over the trend for a reasonable, recent base period for which data are available.
“(c) Any entity that is representative of an industry may submit a petition for relief under subsection (a), under chapter 1 of title II of the Trade Act of 1974, or under both subsection (a) and such chapter at the same time. If petitions are submitted by such an entity under subsection (a) and such chapter at the same time, the Commission shall consider such petitions jointly.
“SEC. 303. ACTS IDENTIFIED IN NATIONAL TRADE ESTIMATES.
“With respect to any act, policy, or practice of Canada that is identified in the annual report submitted under section 181 of the Trade Act of 1974 (19 U.S.C. 2241), the United States Trade Representative shall include—
“(1) information with respect to the action taken regarding such act, policy, or practice, including but not limited to—
“(A) any action under section 301 of the Trade Act of 1974 [19 U.S.C. 2411] (including resolution through appropriate dispute settlement procedures),
“(B) any action under section 307 of the Trade and Tariff Act of 1984 [section 307 of Pub. L. 98–573, enacting section 2114d of this title and amending this section], and
“(C) negotiations or consultations, whether on a bilateral or multilateral basis; or
“(2) the reasons that no action was taken regarding such act, policy, or practice.
“SEC. 304. NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL REPORTS.
“(a) In General.—
“(1) The President is authorized to enter into negotiations with the Government of Canada for the purpose of concluding an agreement (including an agreement amending the Agreement) or agreements to—
“(A) liberalize trade in services in accordance with article 1405 of the Agreement;
“(B) liberalize investment rules;
“(C) improve the protection of intellectual property rights;
“(D) increase the value requirement applied for purposes of determining whether an automotive product is treated as originating in Canada or the United States; and
“(E) liberalize government procurement practices, particularly with regard to telecommunications.
“(2) As an exercise of the foreign relations powers of the President under the Constitution, the President will enter into immediate consultations with the Government of Canada to obtain the exclusion from the transport rates established under Canada’s Western Grain Transportation Act of agricultural goods that originate in Canada and are shipped via east coast ports for consumption in the United States.
“(b) Negotiating Objectives Regarding Services, Investment, and Intellectual Property Rights.—
“(1) The objectives of the United States in negotiations conducted under subsection (a)(1)(A) to liberalize trade in services include—
“(A) with respect to developing services sectors not covered in the Agreement, the elimination of those tariff, nontariff, and subsidy trade distortions that have potential to affect significant bilateral trade;
“(B) the elimination or reduction of measures grandfathered by the Agreement that deny or restrict national treatment in the provision of services;
“(C) the elimination of local presence requirements; and
“(D) the liberalization of government procurement of services.
In conducting such negotiations, the President shall consult with the services advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155).
“(2) The objectives of the United States in any negotiations conducted under subsection (a)(1)(B) to liberalize investment rules include—
“(A) the elimination of direct investment screening;
“(B) the extension of the principles of the Agreement to energy and cultural industries, to the extent such industries are not currently covered by the Agreement;
“(C) the elimination of technology transfer requirements and other performance requirements not currently barred by the Agreement; and
“(D) the subjection of all investment disputes to dispute resolution under chapter 18 of the Agreement.
In conducting such negotiations, the President shall consult with persons representing diverse interests in the United States in investment.
“(3) The objectives of the United States in any negotiations conducted under subsection (a)(1)(C) to improve the protection of intellectual property rights include—
“(A) the recognition and adequate protection of intellectual property, including copyrights, patents, process patents, trademarks, mask works, and trade secrets; and
“(B) the establishment of dispute resolution procedures and binational enforcement of intellectual property standards.
In conducting such negotiations, the President shall consult with persons representing diverse interests in the United States in intellectual property.
“(c) Negotiating Objectives Regarding Automotive Products.—
“(1) In conducting negotiations under subsection (a)(1)(D) regarding the value requirement for automotive products, the President shall seek to conclude an agreement by no later than January 1, 1990, to increase the value requirement from 50 percent to at least 60 percent.
“(2) The President is authorized, through January 1, 1999, to proclaim any agreed increase in the value requirement.
“(3) As used in this section, the term ‘value requirement’ means the minimum percentage of the value of an automotive product that must be accounted for by the value of the materials in the product that originated in the United States or Canada, or both, plus the direct cost of processing or assembly performed in the United States or Canada, or both, with respect to the product.
“(d) Negotiation of Limitation on Potato Trade.—
“(1) During the 5-year period beginning on the date of enactment of this Act [Sept. 28, 1988], the President is authorized to enter into negotiations with Canada for the purpose of obtaining an agreement to limit the exportation and importation of all potatoes between the United States and Canada, including seed potatoes, fresh, chilled or frozen potatoes, dried, desiccated or dehydrated potatoes, and potatoes otherwise prepared or preserved. Any agreement negotiated under this subsection shall provide for an annual limitation divided equally into each half of the year.
“(2) For the purpose of conducting negotiations under paragraph (1), the Secretary of Agriculture and the United States Trade Representative shall consult with representatives of the potato producing industry, including the Ad Hoc Potato Advisory Group and the United States/Canada Horticultural Industry Advisory Committee, to solicit their views on negotiations with Canada for reciprocal quantitative limits on the potato trade.
“(3) The President is authorized to direct the Secretary of the Treasury to—
“(A) carry out such actions as may be necessary or appropriate to ensure the attainment of the objectives of any agreement that is entered into under this section; and
“(B) enforce any quantitative limitation, restriction, and other terms contained in the agreement.
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 any article that is subject to the agreement.
“(4) The provisions of section 1204 of the Agriculture and Food Act of 1981 (7 U.S.C. 1736j) and the last sentence of section 812 of the Agricultural Act of 1970 (7 U.S.C. 612c–3) shall not apply in the case of actions taken pursuant to this subsection.
“(e) Canadian Controls on Fish.—
“(1) Within 30 days of the application by Canada of export controls on unprocessed fish under statutes exempted from the Agreement under article 1203, or the application of landing requirements for fish caught in Canadian waters, the President shall take appropriate action to enforce United States rights under the General Agreement on Tariffs and Trade that are retained in article 1205 of the Agreement.
“(2) In enforcing the United States rights referred to in paragraph (1), the President has discretion to—
“(A) bring a challenge to the offending Canadian practices before the GATT;
“(B) retaliate against such offending practices;
“(C) seek resolution directly with Canada;
“(D) refer the matter for dispute resolution to the Canada-United States Trade Commission; or
“(E) take other action that the President considers appropriate to enforce such United States rights.
“(f) Biennial Report.—The President shall submit to the Congress, at the close of each biennial period occurring after the date on which the Agreement enters into force [Jan. 1, 1989], a report regarding—
“(1) the status of the negotiations regarding agreements that the President is authorized to enter into with Canada under this section;
“(2) the effectiveness and operation of any agreement entered into under section 304 that is in force with respect to the United States;
“(3) the effectiveness of operation of the Agreement generally; and
“(4) the actions taken by the United States and Canada to implement further the objectives of the Agreement.
“SEC. 305. ENERGY.
“(a) Alaskan Oil.—[Amended section 2406 of the Appendix to Title 50, War and National Defense.]
“(b) Uranium.—[Amended section 2201 of Title 42, The Public Health and Welfare.]
“SEC. 306. LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT UNDER TRADE AGREEMENTS ACT OF 1979 IN THE CASE OF CERTAIN CANADIAN PRODUCTS.
[Amended section 2518 of this title.]
“SEC. 307. TEMPORARY ENTRY FOR BUSINESS PERSONS.
“(a) Nonimmigrant Traders and Investors.—Upon a basis of reciprocity secured by the United States-Canada Free-Trade Agreement, a citizen of Canada, and the spouse and children of any such citizen if accompanying or following to join such citizen, may, if otherwise eligible for a visa and if otherwise admissible into the United States under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), be considered to be classifiable as a nonimmigrant under section 101(a)(15)(E) of such Act (8 U.S.C. 1101 (a)(15)(E)) if entering solely for a purpose specified in Annex 1502.1 (United States of America), Part B—Traders and Investors, of such Agreement, but only if any such purpose shall have been specified in such Annex as of the date of entry into force of such Agreement [Jan. 1, 1989].
“(b) Nonimmigrant Professionals.—[Amended section 1184 of Title 8, Aliens and Nationality.]
“SEC. 308. AMENDMENT TO SECTION 5136 OF THE REVISED STATUTES.
[Amended section 24 of Title 12, Banks and Banking.]
“SEC. 309. STEEL PRODUCTS.
“Nothing in this Act shall preclude any discussion or negotiation between the United States and Canada in order to conclude voluntary restraint agreements or mutually agreed quantitative restrictions on the volume of steel products entering the United States from Canada.
“TITLE IV—BINATIONAL PANEL DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY CASES. “SEC. 401. AMENDMENTS TO SECTION 516A OF THE TARIFF ACT OF 1930.
[Amended section 1516a of this title.]
“SEC. 402. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
“(a) Jurisdiction of Court of International Trade.—[Amended section 1581 of Title 28, Judiciary and Judicial Procedure.]
“(b) Relief in Court of International Trade.—[Amended section 2643 of Title 28.]
“(c) Declaratory Judgments.—[Amended section 2201 of Title 28.]
“(d) Actions Under the Agreement.—[Enacted section 1584 of Title 28.]
“SEC. 403. CONFORMING AMENDMENTS TO THE TARIFF ACT OF 1930.
[Amended sections 1502, 151