Pl 103-182

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2057

Public Law 103-182
103d Congress
An Act
To implement the North American Free Trade Agreement.

Dec. 8, 1993
[H.R. 3450]

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled.
North American
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Free Trade
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
Agreement
(a) SHORT TITLE.—This Act may be cited as the •'North Amer- implementation

ican Free TVade Agreement Implementation Act".

Canada.

(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE
NORTH AMERICAN FREE TRADE AGREEMENT
Sec. 101. Approval and entry into force of the North American Free Trade Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Consultation and layover requirements for, and efTective date of, proclaimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and initial regulations.
Sec. 105. United States Section of the NAFTA Secretariat.
Sec. 106. Appointments to chapter 20 panel proceedings.
Sec. 107. Termination or suspension of Umted States-Canada Free-Trade Agreement.
Sec. 108. Congressional intent regarding future accessions.
Sec. 109. Effective dates; effect of termination of NAFTA status.
TITLE II—CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Drawback.
Sec. 204. Customs user fees.
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Sec. 205. Enforcement.
Sec. 206. Reliquidationof entries for NAFTA-origin goods.
Sec. 207. Country of origin marking of NAFTA goods.
Sec. 208. Protests against adve)[-se origin determinations.
Sec. 209. Exchange of information.
Sec. 210. Prohibition on drawback for television picture tubes.
Sec. 211. Monitoring of television and picture tube imports.
Sec. 212. Title VI amendments.
Sec. 213. Effective dates.
TITLE III—APPUCATION OF AGREEMENT TO SECTORS AND SERVICES
Subtitle A—Safeguards

Mexico.
Exports and
imports
19 USC 3301
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PART 1—REUEF FROM IMPORTS BENEFITING FROM THE AGREEMENT

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301. Definitions.
302. Commencing of action for relief.
303. International Trade Commission action on petition.
304. Provision of relief.
305. Termination of relief authority.

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107 STAT. 2058
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PUBLIC LAW 103-182—DEC. 8, 1993
306.
307.
308.
309.

Compensation authority.
Submission of petitions.
Special tariff provisions for Canadianfreshfruitsand vegetables.
Price-based snapback forfrozenconcentrated orange juice.
PART 2—REUEF FROM IMPORTS FROM ALL COUNTRIES

Sec. 311. NAFTA article impact in import relief cases under the Trade Act of 1974.
Sec. 312. Presidential action regarding NAFTA imports.
PART 3—GENERAL PROVISIONS

o

Sec. 315. Provisional relief.
Sec. 316. Monitoring.
Sec. 317. Procedures concerning the conduct of International Trade Commission investigations.
Sec. 318. Effective date.
Subtitle B—^Agriculture
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Sec. 321. Agriculture.
Subtitle C—^Intellectual Property
Sec. 331. Treatment of inventive activity.
' geographic indications,
pictures'in the public domam.
Sec. 335. Effective dates.
Subtitle D—^Temporary Entry of Business Persons
Sec. 341. Temporary entry.
Sec. 342. Effective date.
Subtitle E—Standards
PART 1—STANDARDS AND MEASURES

Sec. 351. Standards and sanitary and phytosanitary measures.
Sec. 352. Transportation.

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PART 2—AGRICULTURAL STANDARDS

Sec. 361. Agricultural technical and conforming amendments.
Subtitle F—Corporate Average Fuel Economy
Sec. 371. Corporate average fuel economy.
Subtitle G—Government Procurement
Sec. 381. Government procurement.
TITLE IV—DISPUTE SETTLEMENT IN ANTIDUMPING AND
COUNTERVAILING DUTY CASES
Subtitle A—Organizational, Administrative, and Procedural Provisions Regarding
the Implementation of Chapter 19 of the Agreement
Sec. 401. References in subtitle.
Sec. 402. Organizational and administrative provisions.
Sec. 403. Testimony and production of papers in extraordinary challenges.
Sec. 404. Requests for review of determinations by competent investigating authorities of NAFTA countries.
Sec. 406. Rules of procedure for panels and committees.
Sec. 406. Subsidy negotiations.
Sec. 407. Identification of industries facing subsidized imports.
Sec. 408. Treatment of amendments to antidumping ana countervailing duty law.
Subtitle B—Conforming Amendments and Provisions
Sec. 411. Judicial review in antidumping duty and countervailing duty cases.
Sec. 412. Conforming amendments to other provisions of the Tariff Act of 1930.
Sec. 413. Consequential amendment to Free-Trade Agreement Act of 1988.
Sec. 414. Conforming amendments to title 28, United States Code.
Sec. 415. Effect of termination of NAFTA country status.
Sec. 416. Effective date.
TITLE V—NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER
PROVISIONS
Subtitle A—^NAFTA Transitional A4justment Assistance Program
Sec. 501. Short title.

PUBLIC LAW 103-182—DEC. 8, 1993
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107 STAT. 2059

502. Establishment of NAFTA transitional a4justment assistance program.
503. Conforming amendments.
504. Authorization of appropriations.
505. Termination of transition program.
506. Effective date.
507. Treatment of self-employment assistance programs.
Subtitle B—^Provisions Relating to Performance Under the Agreement
511. Discriminatory taxes.
512. Review of the operation and effects of the agreement.
513. Actions affecting United States cultural industries.
514. Report on impact of NAFTA on motor vehicle exports to Mexico.
515. Center for the study of Western Hemispheric Trade.
516. Effective date.
Subtitle C—^Funding
PART 1—CUSTOMS USER FEES

Sec. 521. Fees for certain customs services.
PART 2—INTERI-^AL REVENUE CODE AMENDMENTS

Sec. 522. Authority to disclose cctrtain tax information to the United States customs
service.
Sec. 523. Use of electronic fund transfer system for collection of certain taxes.
Subtitle D—Implementation of NAFTA Supplemental Agreements
PART 1—AGREEMENTS RELATING TO LABOR AND ENVIRONMENT

Sec. 531. Agreement on labor cooperation.
Sec. 532. Agreement on environmental cooperation.
Sec. 533. Agreement on Border Environment Cooperation Commission.
PART 2—NORTH AMERICAN DEVELOPMENT BANK AND RELATED PROVISIONS.

Sec.
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541.
542.
543.
544.

Sec. 601.
Sec. 611.
Sec.
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612.
613.
614.
615.
616.
617.
618.
619.
620.
621.
622.
623.
624.

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631.
632.
633.
634.
635.
636.
637.
638.
639.
640.
641.

North American Development Bank.
Status, immunities, ana privileges.
Community adjustment and investment program.
Definition.
TITLE VI—(JUSTOMS MODERNIZATION
Reference.
Subtitle A—Improvements in Customs Enforcement
Penalties for violations of arrival, reporting, entry, and clearance requirements.
Failure to declare.
Customs testing laboratories; detention of merchandise.
Recordkeeping.
Examination of books and witnesses.
Judicial enforcement.
Review of protests.
Repeal of provision relating to reliquidation on accoimt of fraud.
Penalties relating to muniiests.
Unlawful unlading or transshipment.
Penalties for fraud, gross negligence, and negligence; prior disclosure.
Penalties for false drawback claims.
Interpretive rulings and decisions; public information.
Seizure authority.
Subtitle B—^National Customs Automation Program
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National Customs Automation Program.
Drawback and refunds.
Effective date of rates of duty.
Definitions.
Manifests.
Invoice contents.
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Entry of merchandise.
Appraisement and other procedures.
Voluntary reliquidations.
Appraisement regulations.
Limitation on liquidation.

107 STAT. 2060
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19 u s e 3301.

PUBLIC LAW 103-182—DEC. 8, 1993
642.
643.
644.
645.
646.
647.
648.
649.

Payment of duties and fees.
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Abandonment and dama^.
Customs officer's immimity.
Protests.
Refunds and errors.
Bonds and other security.
Customhouse brokers.
Conforming amendments.
Subtitle C—^Miscellaneous Amendments to the TarifiT Act of 1930
Sec. 651. Administrative exemptions.
Sec. 652. Report of arrival.
Sec. 653. Entry of vessels.
Sec. 654. Unlawful retiim of foreign vessel papers.
Sec. 655. Vessels not required to enter.
Sec. 656. Unlading.
Sec. 657. Declarations.
Sec. 658. General orders.
Sec. 659. Unclaimed merchandise.
Sec. 660. Destruction of merchandise.
Sec. 661. Proceeds of sale.
Sec. 662. Entry imder regulations.
Sec. 663. American trademarks.
Sec. 664. Simplified recordkeeping for merchandise transported by pipeline.
Sec. 665. Entry for warehouse.
Sec. 666. Cartage.
Sec. 667. Seizure.
Sec. 668. Limitation on actions.
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Sec. 669. Collection of fees on behalf of other agencies.
Sec. 670. Authority to settle claims.
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Sec. 671. Use of private collection agencies.
Subtitle D—^Miscellaneous Provisions and Consequential and Conforming
Amendments to Other Laws
Sec. 681. Amendments to the Harmonized Tariff Schedule.
Sec. 682. Customs personnel airport work shift regulation.
Sec. 683. Use of harbor maintenance trust funa amounts for administrative ex*
penses.
Sec. 684. Amendments to title 28, United States Code.
Sec. 685. Treasury forfeiture fund.
Sec. 686. Amendments to the Revised Statutes of the United States.
Sec. 687. Amendments to title 18, United States Code.
Sec. 688. Amendment to the Act to Prevent Pollution from Ships.
Sec. 689. Miscellaneous technical amendments.
Sec. 690. Repeal of obsolete provisions of law.
Sec. 691. Reports to Congress.
Sec. 692. Effective date.
SEC. 2. DEFINITIONS.

For purposes of this Act:
(1) AGREEMENT.—^The term "Agreement" means the North
American Free Trade Agreement approved by the Congress
under section 101(a).
(2) HTS.—The term "HTS" means the Harmonized Tariff
Schedule of the United States.
(3) MEXICO.—Any reference to Mexico shall be considered
to be a reference to the United Mexican States.
(4) NAFTA COUNTRY.—Except as provided in section 202,
the term "NAFTA country" means—
(A) Canada for such time as the Agreement is in force
with respect to, and the United States applies the Agreement to, Canada; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2061

(B) Mexico for such time as the Agreement is in force
with respect to, and the United States applies tiie Agree;
ment to, Mexico.
(5) INTERNATIONAL TRADE COMMISSION.—The term International Trade Commission" means the United States International Trade Commission.
(6) TRADE REPRESENTATIVE.—The term Trade Representative" means the United States Trade Representative.

TITLE I—APPROVAL OF, AND GENERAL
PROVISIONS RELATING TO, THE
NORTH AMERICAN FREE TRADE
AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE NORTH AMER- 19 USC 3311.
ICAN FREE TRADE AGREEMENT.
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE ACTION.—Pursuant to section 1103 of the Omnibus Trade

and Competitiveness Act of 1988 (19 U.S.C. 2903) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), the Congress
approves—
(1) the North American Free Trade Agreement entered
into on December 17, 1992, with the Governments of Canada
and Mexico and submitted to the Congress on November 4,
1993; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to the Congress
on November 4,1993.

(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.—

The President is authorized to exchange notes with the Grovemment
of Canada or Mexico providing for the entry into force, on or
after January 1, 1994, of the Agreement for the United Stetes
with respect to such country at such time as—
(1) the President—
(A) determines that such coimtry has implemented
the stetutory changes necessary to bring that country into
compliance with its obligations under the Agreement and
has made provision to implement the Uniform Regulations
provided for imder article 511 of the Agreement regarding
the interpretetion, application, and administration of the
rules of origin, and
(B) transmits a report to the House of Representetives Reports.
and the Senate setting forth the determination under
subparagraph (A) and including, in the case of Mexico,
a description of the specific measures taken by that country
to—
(i) bring its laws into conformity with the reqtiirements of the Schedule of Mexico in Annex 1904.15
of the Agreement, and
(ii) otherwise ensure the effective implementetion
of the binational panel review process under chapter
19 of the Agreement regarding final antidumping and
countervailing duty determinations; and

107 STAT. 2062

PUBLIC LAW 103-182—DEC. 8, 1993
(2) the Government of such country exchanges notes with
the United States providing for the entry into force of the
North American Agreement on Environmental Cooperation and
the North American Agreement on Labor Cooperation for that
country and the United States.

19 use 3312.

SEC. 102. RELATIONSHIP OF THE AGBEEMENT TO UNITED STATES
AND STATE LAW.
(a) RELATIONSHIP OP AGREEMENT TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CONFUCT.—No provi-

sion 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,
including any law regarding—
(i) the protection of human, animal, or plant life
or health,
(ii) the protection of the environment, or
,
(iii) motor carrier or worker safety; or
(B) to limit any authority conferred under any law
of the United States, including section 301 of the Trade
Act of 1974;
unless specifically provided for in this Act.
President.

(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.—
(1) FEDERAL-STATE CONSULTATION.—

(A) IN GENERAL.—^Upon the enactment of this Act, the
President shall, through the intergovernmental policy
advisory committees on trade established under section
306(cX2XA) of the Trade and Tariff Act of 1984, consult
with the States for the purpose of achieving conformity
of State laws and practices with the Agreement.
(B)

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FEDERAL-STATE

CONSULTATION

PROCESS.—The

Trade Representative shall establish within the Office of
the United States Trade Representative a Federal-State
consultation process for addressing issues relating to the
Agreement that directly relate to, or will potentially have
a direct impact on, the States. The Federal-State consultation process shall include procedures under which—
(i) the Trade Representative will assist the States
in identifying those State laws that may not conform
with the Agreement but may be maintained under
the Agreement by reason of being in effect before the
Agreement entered into force;
(ii) the States will be informed on a continuing
basis of matters under the Agreement that directly
relate to, or will potentially have a direct impact on,
the States;
(iii) the States will be provided opportunity to submit, on a continuing basis, to the Trade Representative
information and advice with respect to matters referred
to in clause (ii);
(iv) the Trade Representative will take into
account the information and advice receivedfiromthe
States under clause (iii) when formulating United

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2063

States positions regarding matters referred to in clause
(ii);ana
(v) the States will be involved (including involvement through the inclusion of appropriate representatives of the States) to the greatest extent practicable
at each stage of the development of United States
positions regarding matters referred to in clause (ii)
that will be addressed by committees, subcommittees,
or working igroups established imder the Agreement
or through dispute settlement processes provided for
under the Agreement.
The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Federal-State consultation process established
by this paragraph.

x

(2) LEGAL CHALI-ENGE.—NO State law, or the application

thereof, may be declared invalid as to any person or circumstance on the ground that the provision or appUcation
is inconsistent with the Agreement, except in an action brought
by the United States for the purpose of declaring such law
or application invalid.
(3) 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.

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(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-

EDIES.—^No person other than the United States—
(1) shall have any cause of action or defense under—
(A) the A^i^ement or by virtue of Congressional
approval thereof, or
(B) the North American Agreement on Environmental
Cooperation or the North American Agreement on Labor
Cooperation; or
(2) may challenge, in any action brought imder 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 groimd that such
action or inaction is inconsistent with the Agreement, the North
/^erican Agreement on Environmental Cooperation, or the
North American Agreement on Labor Cooperation.
SEC. 103. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND 19 USC 3313.
EFFECTIVE DATE OF, PROCLAIMED ACTIONS.
(a) CONSULTATION ANiD LAYOVER 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 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, and
(B) the International Trade Commission;
(2) the President has submitted a report to the Committee Reports.
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate that sets fortli—

107 STAT. 2064
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Federal

PUBLIC LAW 103-182—DEC. 8, 1993
(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 with the first
day on wmch 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.—Any

^^sister,
pubiica ion.

action proclaimed by the President under the authority of this
^^ ^y^^ .^ ^^^ subject to the consultation and layover requirements
under subsection (a) may not take effect before the 15th dav after
the date on which the text of the proclamation is published in
the Federal Register.

19 u s e 3314.

SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE AND INITIAL REGULATIONS.
(a) IMPLEMENTING ACTIONS.—After the date of the enactment

of this Act—
(1) the President may proclaim such actions; and
(2) other appropriate officers of the United States Government may issue such regulations;
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the date
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 of entry into force. The 15day restriction in section 103(b) 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 proposed in the statement
01 administrative action submitted under section 101(aX2) to implement the Agreement shall, to the maximum extent feasible, be
issued Mdthin 1 year after the date of entry into force of the
Agreement; except that interim or initial regulations to implement
those Uniform Regulations regarding rules of origin provided for
under article 511 of the Agreement shall be issued no later than
the date of entry into force of the Agreement. In the case of any
implementing action that takes effect on a date 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.
19_USC 3315.

SEC. 106. UNITED STATES SECTION OF THE NAFTA SECRETARIAT.
(a) ESTABUSHMENT OF THE UNITED STATES SECTION.—The

President is authorized to esteblish within any department or
agency of the United Stetes Government a United States Section
of the Secretariat esteblished imder chapter 20 of the Agreement.
The United Stetes Section, subject to the oversight of the interagency group esteblished under section 402, shall carry out ite
fmictions within the Secretariat to facilitete the operation of the
Agreement, including the operation of chapters 19 and 20 of the
Agreement and tlie work of the panels, extraordinary challenge
committees, special committees, and scientific review ooards con-

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2065

vened under those chapters. The United States Section 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 vear after fiscal year 1993 to
the department or agency within which the United States Section
is established the lesser of—
(1) such sums as may be necess€uy; or
(2) $2,000,000;
for the establishment and operations of the United States Section
and for the payment of 1:he United States share of the expenses
of binational panels and extraordinary challenge committees convened under chapter 19, and of the expenses incurred in dispute
settlement proceedings imder chapter 20, of the Agreement.
(c) REIMBURSEMENT OF CERTAIN EXPENSES.—If, in accordance
with Annex 2002.2 of the Agreement, the Canactian Section or
the Mexican Section of the Secretariat provides funds to the United
States Section during any fiscal year, as reimbursement for
expenses by the Canadian Section or uie Mexican Section in connection with settlement proceedings under chapter 19 or 20 of the
Agreement, the United States Section may retain and use such
fimds to carry out thefimctionsdescribed in subsection (a).
SEC. 106. APPOINTMENTS TO CHAPTER M PANEL PROCEEDINGS.

19 USC 3316.

(a) CONSULTATION.—The Trade Representative shall consult
with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate regarding
the selection and appointment of candidates for the rosters
described in article 2009 of the Agreement.
(b) SELECTION OF INDIVIDUALS WITH ENVIRONMENTAL EXPER-

TISE.—^The United States shall, to the maximum extent practicable,
encourage the selection of individuals who have expertise and
experience in environmential issues for service in panel proceedings
under chapter 20 of the Agreement to hear any challenge to a
United States or State environmental law.
SEC. 107. TERMINATION OR SUSPENSION OF UNITED STATES-CANADA
FREE-TRADE AGREEMENT.

Section 501(c) of the United States-Canada Free-Trade
Implementation Act of 1988 (19 U.S.C. 2112 note) is amended
to read as follows:
"(c) TERMINATION OR SUSPENSION OF AGREEMENT.—
"(1) TERMINATION OF AGREEMENT.—On the date

the Agreement ceases to be in force, the provisions of this Act (other
than this paragraph and section 410(b)), and the amendments
made by this Act, shall cease to have effect.
"(2) EFFECT OF AGREEMENT SUSPENSION.—An agreement
by the United States and Canada to suspend the operation
of the Agreement shall not be deemed to cause the Agreement
to ce€ise to be in force within tiie meaning of paragraph (1).
"(3) SUSPENSION RESULTING FROM NAFTA.—On the date the
United States and Canada agree to suspend the operation
of the Agreement by reason of the entry into force between
them of me North American Free Trade Agreement, the following provisions of this Act are suspended and shall remain
suspended until such time as the suspension of the Agreement
may be terminated:
"(A) Sections 204 (a) and (b) and 205(a).

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107 STAT. 2066

PUBLIC LAW 103-182—DEC. 8, 1993
"(B) Sections 302 and 304(f).
"(C) Sections 404, 409, and 4100)).".

19 u s e 3317.

SEC. 106. CONGBESSIONAL INTENT REGARDING FUTURE ACCESSIONa

(a) IN GENERAL.—Section 101(a) may not be construed as
conferring Congressional approval of the entry into force of the
Agreement for the United States with respect to countries other
than Canada and Mexico.
(b) FUTURE FREE TRADE AREA NEGOTIATIONS.—

(1) FINDINGS.—^The Congress makes the following findings:
(A) Efforts by the United States to obtain greater market opening through multilateral negotiations have not produced agreements that fully satisfy the trade negotiating
objectives of the United States.
(B) United States trade policy should provide for additional mechanisms with which to pursue greater market
access for United States exports of goods and services and
opportunities for export-related investment by United
~ States persons.
(C) Among the additional mechanisms should be a
system of bilateral and multilateral trade agreements that
provide greater market access for United Stetes exporte
and opportunities for export-related investment by United
Stetes persons.
(D) The system of trade agreemente can and should
be structured to be consistent with, and complementery
to, existing international obligations of the United Stetes
and ongoing multilateral efforte to open markete.
(2) REPORT ON SIGNIFICANT MARKET OPENING.—NO later
than May 1, 1994, and May 1, 1997, the Trade Representetive
shall submit to the President, and to the Committee on Finance
of the Senate and the Committee on Ways and Means of the
Hovise of Representetives (hereafter in this section referred
to as the "appropriate Congressional committees"), a report
which liste those foreign coimtries—
(A) thal^
(i) currently provide fair and equiteble market
access for United Stetes exporte of goods and services
and opportunities for export-related investment by
United Stetes persons, beyond what is required by
existing multilateral trade agreemente or obligations;
or
(ii) have made significant progress in opening their
markete to United Stetes exporte of goods and services
and export-related investment by United Stetes persons; and
(B) the further opening of whose markete has the greatest potential to increase United Stetes exporte of goods
and services and export-related investment by United
Stetes persons, either directly or through the esteblishment
of a beneficial precedent.
(3) PRESIDENTIAL DETERMINATION.—The President, on the
basis of the report submitted by the Trade Representetive
under paragraph (2), shall determine with which foreign country or countries, if any, the United Stetes should seek to negotiate a free trade area agreement or agreemente.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2067

(4) RECOMMENDATIONS ON FUTURE FREE TRADE AREA NEOO- President.
TIATIONS.—No later than July 1, 1994, and July 1, 1997, the Reports.
President shall submit to the appropriate Congressional
committees a written report that contains—
(A) recommendations for free trade area negotiations
with each foreign country selected under paragraph (3);
(B) with respect to each country selected, the specific
negotiating objectives that are necessary to meet the objectives of the United States under this section; and
(C) legislative proposals to ensure adequate consultation with the Congress and the private sector during tiie
negotiations, advance Congressional approval of the negotiations recommended by the President, and Congressional
approval of any trade agreement entered into by the President as a result of the negotiations.
(5) GENERAL NEGOTIATING OBJECTIVES.—The general negotiating objectives of the United States under this section are
to obtain—
(A) preferential treatment for United States goods;
(B) national treatment and, where appropriate, eqmvalent competitive opportunity for United States services and
foreign direct investment l^ United States persons;
(C) the elimination of barriers to trade in goods and
services by United States persons through standards, testing, labeling, and certification requirements;
(D) nondiscriminatory government procurement policies and practices with respect to United States goods
and services;
(E) the elimination of other barriers to market access
for United States goods and services, and the elimination
of barriers to foreign direct investment by United States
persons;
(F) the elimination of acts, poUcies, and practices which
deny fair and equitable market opportunities, including
foreign government toleration of anticompetitive business
ractices bv private firms or amon^ private firms that
ave the effect of restricting, on a basis that is inconsistent
with commercial considerations, purchasing by such firms
of United States goods and services;
(G) adequate and effective protection of intellectual
property rights of United States persons, and fair and
equitable market access for United States persons that
rely upon intellectual property protection;
(H) the elimination of foreign export and domestic subsidies that distort international trade in United States
goods and services or cause material ii\jury to United States
industries;
(I) the elimination of all export taxes;
(J) the elimination of acts, policies, and practices which
constitute export targeting; and
(K) monitoring and effective dispute settlement mechanisms to facilitate compliance with the matters described
in subparagraphs (A) through (J).

P

SEC. 109. EFFECTIVE DATES; EFFECT OF TERMINATION OF NAFTA 19 USC 3311
STATUS.
note.
(a) EFFECTIVE DATES.—

69-194 O - 94 - 5 : QL. 3 Part 3

107 STAT. 2068

PUBLIC LAW 103-182—DEC. 8, 1993

(1) IN GENERAL.—^This title (other than the amendment
made bv section 107) takes effect on the date of the enactment
of this Act.
(2) SECTION IO7 AMENDMENT.—The amendment made by
section 107 takes effect on the date the Agreement enters
into force between the United States and Cana(Ui.
(b) TERMINATION OF NAFTA STATUS.—During any period in
which a country ceases to be a NAFTA country, sections 101 through
106 shall cease to have effect with respect to such country.

TITLE II—CUSTOMS PROVISIONS
19 u s e 3331.

President.

SEC. 201. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.—
(1) PROCLAMATION AUTHORITY.—The President may

proclaim—
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment,
or
(C) such additional duties,
as the President determines to be necessary or appropriate
to carry out or apply articles 302, 305, 307, 308, and 703
and Annexes 302.2, 307.1, 308.1, 308.2, 300-B, 703.2, and
703.3 of the Agreement.
(2) EFFECT ON MEXICAN GSP STATUS.—Notwithstanding section 502(aX2) of the Trade Act of 1974 (19 U.S.C. 2462(aX2)),
the President shall terminate the designation of Mexico as
a beneficiary developing country for purposes of title V of
the Trade Act of 19*74 on the date of entry into force of the
Agreement between the United States and Mexico.
(b) OTHER TARIFF MODIFICATIONS.—

(1) IN GENERAL.—^Subject to paragraph (2) and the consultation and layover requirements of section 103(a), the President
may proclaim—
(A) such modifications or continuation of any duty,
(B) such modifications as the United States may agree
to with Mexico or Canada regcurding the staging of any
duty treatment set forth in Annex 302.2 of the Agreement,
(C) such continuation of duty-free or excise treatment,
or
(D) 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 or Mexico provided
for by the Agreement.
(2) SPECIAL RULE FOR ARTICLES WITH TARIFF PHASEOUT
PERIODS OF MORE THAN 10 YEARS.—The President may not

consider a request to accelerate the staging of duty reductions
for an article for which the United States tariff phaseout period
is more than 10 years if a request for acceleration with respect
to such article has been denied in the preceding 3 calendar
years.
(c) CONVERSION TO AD VALOREM RATES FOR CERTAIN TEX-

TILES.—^For purposes of subsections (a) and (b), with respect to
an article covered bv Annex 300-B of the Agreement imported
from Mexico for which the base rate in the Schedule of the United

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2069

States in Annex 300-B 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. RULES OF OBIGIN.
(a) ORIGINATING GOODS.—

(1) IN GENERAL.—^For purposes of implementing the tariff
treatment and quantitative restrictions provided for under the
Agreement, except as otherwise proviaed in this section, a
good originates in the territory of a NAFTA countnr if—
(A) ttte good is wholly obtained or produced entirely
in the territory of one or more of the NAFTA countries;
(BXi) each nonoriginating material used in the production oftiiegood—
(I) undergoes an applicable change in tariff classification set out in Annex 401 of the Agreement as
a result of production occurring entirely in the territory
of one or more of the NAFTA countries; or
(II) where no change in tariff classification is
required, the good otherwise satisfies the applicable
requirements of such Annex; and
(ii) the good satisfies all other applicable requirements
of this section;
(C) the good is produced entirely in the territory of
one or more of the NAFTA countries exclusivelyfiromoriginating materials; or
(D) except for a good provided for in chapters 61
through 63 of the HTS, the good is produced entirely in
the territory of one or more of the NAFTA countries, but
one or more of the nonoriginating materials, that are provided for as parts under the IirS and are used in the
production of the good, does not undergo a change in tariff
classification because—
(i) the good was imported into the territorv of
a NAFTA coimtry in an tmassembled or a disassembled
form but was classified as an assembled good piuisuant
to General Riile of Interpretation 2(a) of the HTS;
or
(iiXD the heading for the good provides for and
specifically describes both the good itself and its parts
and is not further subdivided into subheadings; or
(II) the subheading for the good provides for and
specifically describes both the good itself and its parts.
(2) SPECIAL RULES.—
(A) FOREIGN-TRADE ZONES.—Subparagraph (B) of para-

graph (1) shall not apply to a ^ood produced in a foreigntrade zone or subzone (estabhshed pursuant to the Act
of Jime 18, 1934, commonly known as the Foreign Trade
Zones Act) that is entered for consimiption in the customs
territory of the United States.
(B) REGIONAL VALUE-CONTENT REQUIREMENT.—For purposes of subparagraph (D) of paragraph (1), a good shall
be treated as originating in a NAFTA country if the
regional value-content of the good, determined in accordance Mdth subsection (b), is not less than 60 percent where
the transaction value method is used, or not less than

19 USC 3332.

107 STAT. 2070

PUBLIC LAW 103-182—DEC. 8, 1993
50 percent where the net cost method is used, and the
good satisfies all other applicable requirements of this section,
(b) REGIONAL VALUE-CONTENT.—

(1) IN GENERAL.—^Except as provided in paragraph (5), the
regional value-content of a good shall be calculated, at the
choice of the exporter or producer of the good, on the basis
of—
(A) the transaction value method described in paragraph (2); or
(B) the net cost method described in paragraph (3).
(2) TRANSACTION VALUE METHOD.—

(A) IN GENERAL.—^An exporter or producer may calculate the regional value-content of a good on the basis
of the following transaction value method:
TV-VNM

RVC -

TV

X

100

(B) DEFiNrnoNS.—For purposes of subparagraph (A):
(i) The term "RVC means the regional value-content, expressed as a percentage.
(ii) The term "TV means the transaction value
of the ^ood adjusted to a F.O.B. basis.
(iii) The term *'VNM" means the value of
nonoriginating materials used by the producer in the
production of the good.
(3) NET COST METHOD.—

(A) IN GENERAL.—An exporter or producer may calculate the regional value-content of a good on the basis
of the following net cost method:
RVC =

NC-VNM
NC

X

100

(B) DEFlNmONS.—^For purposes of subparagraph (A):
(i) The term **RVC** means the regional value-content, expressed as a percentage.
(ii) The term "NC means the net cost of the good,
(iii) The term "VNM" means the value of
nonoriginating materials used by the producer in the
production of the good.
(4) VALUE OF NONORIGINATING »fATERIALS USED IN ORIGINATING MATERIALS.—^Exce^t as provided in subsection (cXl),
and for a motor vehicle identined in subsection (cX2) or a
component identified in Annex 403.2 of the Agreement, the
value of nonoriginating materials used by the producer in the
production of a good shall not, for purposes of cfdculating the
regional value-content of the good under paragraph (2) or (3),
include the value of nonoriginating materials iised to produce
originating materials that are subsequently used in the production of the good.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2071

(5) N E T COST METHOD MUST BE USED IN CERTAIN CASES.—

An exporter or producer shall calculate the regional valuecontent of a good solely on the basis of the net cost method
described in paragraph (3), if—
(A) there is no transaction value for the good;
(B) the transaction value of the good is unacceptable
under Article 1 of the Customs Valuation Code;
(C) the gooil is sold by the producer to a related person
and the volume, by imits of quantity, of sales of identical
or similar goods to related persons during the six-month
period immediately preceding the month in which the good
IS sold exceeds 85 percent of the producer's total sales
of such goods during that period;
(D) the gooonent identified
in Annex 403.2 of the Agreement for use as original equipment
in the production of the motor vehicle, the value of
nonoriginating materials used by the producer in the production
of the good shall be the sum of—
(A) for each material used by the producer listed in
Annex 403.2 of the Agreement, whether or not produced
by the producer, at the choice of the producer and determined in accordance with subsection (b), either—
(i) the value of such material that is
nonoriginating, or
(ii) the value of nonoriginating materials used in
the production of such material; and
(B) the value of any other nonoriginating material
used by the producer that is not listedf in Annex 403.2
of the Agreemeint determined in accordance with subsection
(b).
(3) AVERAGING PERMITTED.—

107 STAT. 2074

PUBLIC LAW 103-182—DEC. 8, 1993
(A) IN GENERAL.—^For purposes of calculating the
regional value-content of a motor vehicle described in paragraph (1) or (2), the producer may average its calculation
over its fiscal year, using any of the categories described
in subparagraph (B), on the basis of either all motor
vehicles in the category or on the basis of only the motor
vehicles in the category that are exported to me territory
of one or more of the other NAFTA countries.
(B) CATEGORY DESCRIBED.—^A category is described in
this subparagraph if it is—
(i) the same model line of motor vehicles in the
same class of vehiclesproduced in the same plant
in the territory of a NAFTA country;
(ii) the same class of motor vehicles produced in
the same plant in the territory of a NAFTA country;
(iii) the same model line of motor vehicles produced
in the territory of a NAFTA country; or
(iv) if applicable, the basis set out in Annex 403.3
of the Agreement.
(4) ANNEX 403.1 AND ANNEX 403.2.—For purposes of calculating the regional value-content for any or all goods provided
for in a tariff provision listed in Annex 403.1 of the Agreement,
or a component or material identified in Annex 403.2 of the
Agreement, produced in the same plant, the producer of the
good may—
(A) average its calculation—
(i) over the fiscal year of the motor vehicle producer
to whom the good is sold;
(ii) over an^ quarter or month; or
(iii) over its fiscal year, if the good is sold as
an aftermarket part;
(B) calculate the average referred to in subparagraph
(A) separately for any or all goods sold to one or more
motor vehicle producers; or
(C) with respect to any calculation under this paragraph, make a separate calculation for goods that are
exported to the territory of one or more NAFTA countries.
(5) PHASE-IN OF REGIONAL VALUE-CONTENT REQUIREMENT.—

Notwithstanding Annex 401 of the Agreement, and except as
provided in paragraph (6), the regional value-content requirement shall b e ^
(A) for a producer's fiscal year beginning on the day
closest to January 1, 1998, and thereafter, 56 percent calculated under the net cost method, and for a producer's
fiscal year beginning on the day closest to January 1,
2002, and thereafter, 62.5 percent calculated under the
net cost method, for—
(i) a good that is a motor vehicle for the transport
of 15 or fewer persons provided for in subheading
8702.10.00 or 8702.90.00, or a motor vehicle provided
for in subheadings 8703.21 through 8703.90, or subheading 8704.21 or 8704.31; and
(ii) a good provided for in heading 8407 or 8408,
or subheading 8708.40, that is for use in a motor
vehicle identified in clause (i); and
(B) for a producer's fiscal year beginning on the dav
closest to January 1, 1998, and thereafter, 55 percent cal-

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2075

ciliated under the net cost method, and for a producer's
fiscal year beginning on the day closest to January 1,
2002, and thereafter, 60 percent calculated under the net
cost method, for—
(i) a good that is a motor vehicle provided for
in heading 8701, subheading 8704.10, 8704.22, 8704.23,
8704.32, or 8704.90, or heading 8705 or 8706, or a
motor vehicle for the transport of 16 or more persons
provided for in subheading 8702.10.00 or 8702.90.00;
(ii) a good provided for in heading 8407 or 8408,
or subheamng 8708.40 that is for use in a motor vehicle
identified in clause (i); and
(iii) except for a good identified in subparagraph
(AXii) or a good provided for in subheadings 8482.10
through 8482.80, or subheading 8483.20 or 8483.30,
a gocd identified in Annex 403.1 of the Agreement
that is subject to a regional value-content requirement
and is for use in a motor vehicle identified in subparagraph (AXi) or (BXi).
(6) NEW AND REFITTED PLANTS.—^The regional value-content
requirement for a motor vehicle identified in paragraph (1)
or (2) shall be—
(A) 50 percent for 5 years after the date on which
the first motor vehicle prototvpe is produced in a plant
by a motor vehicle assembler, if—
(i) it is a motor vehicle of a class, or marque,
or, except for a motor vehicle identified in paragraph
(2), size category and underbody, not previously produced by the motor vehicle assembler in the territory
of any of the NAFTA countries;
(ii) the plant consists of a new building in which
the motor venicle is assembled; and
(iii) the plant contains substantially all new
machinery that is used in the assembly oi the motor
vehicle; or
(B) 50 percent for 2 years aft«r the date on which
the firot motor vehicle prototype is produced at a plant
following a refit, if it is a motor vehicle of a class, or
marque, or, except for a motor vehicle identified in paragraph (2), size category and underbody, differentfiromthat
assembled by the motor vehicle assembler in the plant
before the rent.
(7) ELECTION FOR CERTAIN VEHICLES FROM CANADA.—In

the case of goods provided for in subheadings 8703.21 through
8703.90, or subheading 8704.21 or 8704.31, exportedfiromCanada directly to the United States, and entered on or afl«r
January 1, 1989, and before the date of entry into force of
the Agreement between the United States and Canada, an
importer may elect to use the rules of origin set out in this
section in lieu of the rules of origin contained in section 202
of the United States-Canada Free-Trade Agreement
Implementation Act of 1988 (19 U.S.C. 2112 note) and may
elect to use the method for calculating the value of
nonoriginating materials established in article 403(2) of the
Agreement in lieu of the method established in article 403(1)
of the A^^reement for purposes of determining eligibility for
preferential duty treatment under the United States-Canada

107 STAT. 2076

PUBLIC LAW 103-182—DEC. 8, 1993
Free-Trade Agreement. Any election under this paragraph shall
be made in writing to the Customs Service not later than
the date that is 180 days after the date of entry into force
of the Agreement between the United States and Canada. Any
such election may be made only if the liquidation of such
entry has not become final. For purposes of averaging the
calculation of regional value-content for the goods covered by
such entry, where the producer's 1989-1990 fiscal year b^an
after January 1, 1989, the producer may include the period
between January 1, 1989, and the beginning of its first fiscal
year after January 1, 1989, as part of fiscal year 1989-1990.
(d) ACCUMULATION.—
(1) DETERMINATION OF ORIGINATING GOOD.—For

purposes
of determining whether a good is an originating good, the
production of the good in the territory of one or more of the
NAFTA countries by one or more producers shall, at the choice
of the exporter or producer of the good, be considered to have
been performed in the territonr of any of the NAFTA countries
by that exporter or producer, it—
(A) all nonoriginating materials used in the production
of the good undergo an applicable tariff classification
change set out in Annex 401 of the Agreement;
(B) the good satisfies any applicable regional valuecontent requirement; and
(C) the good satisfies all other applicable reqiiirements
of this section.
The requirements of subparagraphs (A) and (B) must be satisfied entirely in the territory ot one or more of the NAFTA
countries.
(2) TREATMENT AS SINGLE PRODUCER.—For purposes of subsection G>X10), the production of a producer that chooses to
accumulate its production with that of other producers under
paragraph (1) snail be treated as the production of a single
producer.
(e) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.—

(1) IN GENERAL.—^Except as provided in paragraphs (3),
(4), (5), and (6), a good shall be considered to be an originating
good if—
(A) the value of all nonoriginating materials used in
the production of the good that do not undergo an
applicable change in tarin classification (set out in Annex
401 of the Agreement) is not more than 7 percent of the
transaction value of the good, acyusted to a F.O.B. basis,
or
(B) where the transaction value of the good is imacceptable under Article 1 of the Customs Valuation Code, the
value of all such nonoriginating materials is not more
than 7 percent of the total cost of the good,
provided that the good satisfies all other applicable requirements of this section and, if the good is subject to a regional
value-content requirement, the value of such nonoriginating
materials is taken into account in calculating the regional
value-content of the good.
(2)

GOODS NOT SUBJECT TO REGIONAL VALUE-CONTENT

REQUIREMENT.—^A good that is otherwise subject to a regional
value-content requirement shall not be required to satisfy such
requirement if—

PUBLIC LAW 103-182—DEC. 8, 1993

to—

107 STAT. 2077

(AXi) the value of all nonoriginating materials used
in the production of the good is not more than 7 percent
of the transaction value of the good, adjusted to a F.O.B.
basis; or
(ii) where the transaction value of the good is unacceptable under Article 1 of the Customs Valuation Code, the
value of all nonoriginating materials is not more than
7 percent of the total cost of the good; and
(B) the good satisfies all other applicable requirements
of this section.
(3) DAIRY PRODUCTS, ETC.—Paragraph (1) does not apply
(A) a nonoriginating material provided for in chapter
4 of the HTS or a dai^ preparation containing over 10
percent by weight of milk solids provided for in subheading
1901.90.30, 1901.90.40, or 1901.90.80 that is used in the
production of a good provided for in chapter 4 of the HTS;
(B) a nonoriginating material provided for in chapter
4 of the HTS or a dairy preparation containing over 10
percent by weight of milk solids provided for in subheading
1901.90.30, 1901.90.40, or 1901.90.80 that is used in the
production of—
(i) preparations for infants containing over 10 percent by weight of milk solids provided for in subheading
1901.10.00;
(ii) mixes and doughs, containing over 25 percent
by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20.00;
(iii) a dairy preparation containing over 10 percent
by weight of milk solids provided for in subheading
1901.90.30,1901.90.40, or 1901.90.80;
(iv) a good provided for in heading 2105 or subheading 2106.90.05, or preparations containing over
10 percent by weight of milk solids provided for in
subheading 2106.90.15, 2106.90.40, 2106.90.50, or
2106.90.65;
(v) a good provided for in subheading 2202.90.10
or 2202.90.20; or
(vi) animal feeds containing over 10 percent by
weight of milk solids provided for in subheading
2309.90.30;
(C) a nonoriginating material provided for in heading
0805 or subheadings 2009.11 through 2009.30 that is used
in the production of—
(i) a good provided for in subheadings 2009.11
through 2009.30, or subheading 2106.90.16, or concentrated fruit or vegetable juice of any single fruit
or vegetable, fortified with minerals or vitamins, provided for in subheading 2106.90.19; or
(ii) a good provided for in subheading 2202.90.30
or 2202.90.35, or fruit or vegetable juice of any single
fruit or vegetable, fortified with minerals or vitamins,
provided for in subheading 2202.90.36;
(D) a nonoriginating material provided for in chapter
9 of the HTS that is used in the production of instant
coffee, not flavored, provided for in subheading 2101.10.20;

107 STAT. 2078

PUBLIC LAW 103-182—DEC. 8, 1993
(E) a nonoriginating material provided for in chapter
15 of the HTS tnat is used in the production of a good
provided for in headings 1501 through 1508, or heading
1512,1514, or 1515;
(F) a nonoriginating material provided for in heading
1701 that is used in the production of a good provided
for in headings 1701 through 1703:
(G) a nonoriginating material provided for in chapter
17 of the HTS or heading 1805 tiiat is iised in the production of a good provided for in subheading 1806.10;
(H) a nonoriginating material i)rovided for in headings
2203 through 2208 that is used in the production of a
good provided for in headings 2207 through 2208;
(1) a nonoriginating material used in the production
of—
(i) a good provided for in subheading 7321.11.30;
(ii) a good provided for in subheading 8415.10,
subheadings 8415.81 through 8415.83, subheadings
8418.10 through 8418.21, subheadings 8418.29 through
8418.40, subheading 8421.12 or 8422.11, subheadings
8450.11 through 8450.20, or subheadings 8451.21
throii^h 8451.29;
(iii) trash compactors provided for in subheading
8479.89.60; or
(iv) a good provided for in subheading 8516.60.40;
and
(J) a printed circuit assembly that is a nonoriginating
material used in the production of a good where the
applicable change in tariff classification for the good, as
set out in Annex 401 of the Agreement, places restrictions
on the use of such nonoriginating material.
(4) CERTAIN FRUIT JUICES.—^Paragraph (1) does not apply
to a nonoriginating single juice ingredient provided for in heading 2009 that is u»ed in the production of—
(A) a good provided for in subheading 2009.90, or concentrated mixtures of fruit or vegetable juice, fortified with
minerals or vitamins, provided for in subheading
2106.90.19; or
(B) mixtures of fndt or vegetable juices, fortified with
minerals or vitamins, provided for in subheading
2202.90.39.
(5) GOODS PROVIDED FOR IN CHAPTERS i THROUGH 27 OF

THE HTS.—^Parajgraph (1) does not apply to a nonoriginating
material used in the production of a good provideof for in
chapters 1 through 27 of the HTS unless the nonoriginating
material is provided for in a different subheading than the
good for which origin is being determined under mis section.
(6) GOODS PROVIDED FOR IN CHAPTERS 50 THROUGH es OF

THE HTS.—^A good provided for in chapters 50 through 63 of
the HTS, that does not originate because certein fibers or
yams 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 Aimex 401 of the Agreement, shall be considered to be
a good that originates if the total weight of all such fibers
or yams in that component is not more than 7 percent of
the total weight of that component.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2079

(f) FUNGIBLE GOODS AND MATERIALS.—For purposes of determining whether a good is an originating good—
(1) if originating and nonoriginating fungible materials are
used in the production of the good, the determination of whether
the materials are originating need not be made through the
identification of any specific fimgible material, but may be
determined on the basis of any of the inventor]^ management
methods set out in regulations implementing tms section; and
(2) if originating and nonoriginating mngible goods are
commingled and exported in the same form, the determination
may be made on the basis of any of the inventory management
methods set out in regulations implementing this section.
(g) ACCESSORIES, SPARE PARTS, OR TOOLS.—

(1) IN GENERAL.—^Except as provided in paragraph (2),
accessories, spare parts, or tools delivered with the good that
form part of the good's standard accessories, spare parts, or
tools shall—
(A) be considered 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 an applicable change in tariff classification set
out in Annex 401 of the Agreement.
(2) CONDITIONS.—Paragraph (1) shall apply only if—
(A) the accessories, spare parts, or tools are not
invoiced sepcuratelyfit>mthe good;
(B) the quantities and value of the accessories, spare
parts, or tools are cvistomary for the good; and
(C) in any case in which the good is subject to a
regional value-content requirement, the value of the accessories, spare parts, or tools are taken into account as originating or nonoriginating materials, as the case may be,
in calculating the regional value-content of the good.
(h) INDIRECT MATERIALS.—^An indirect material shall be considered to be an originating material without regard to where it
is produced.
(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 vised in
tJie production of the good imdergo an applicable change in tariff
classification set out in Annex 401 of the Agreement. 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 MATERI/^LS AND CONTAINERS FOR SHIPMENT.—Pack-

ing materials and containers in which a good is packed for shipment
shall be disregarded—
(1) in determining whether the nonoriginating materials
used in the production of the good undergo an applicable change
in tariff classification set out in Annex 401 of the Agreement;
and
(2) in determining whether the good satisfies a regional
value-content requirement.
(k) TRANSSHIPMENT..—^A good shall not be considered to be
an originating good by reason of having undergone production that

107 STAT. 2080

'

PUBLIC LAW 103-182—DEC. 8, 1993

satisfies the requirements of subsection (a) if, subsequent to that
production, the good undergoes further production or any other
operation outside the territories of the NAFTA countries, other
than unloading, reloading, or any other operation necessary to
preserve it in g^ood condition ortotransport the good to the territory
of a NAFTA country.
(1) NONQUALIFYING OPERATIONS.—A good shall not be consideredtobe an originating good merely by reason of—
(1) mere dilution with water or another subst£uice that
does not materially alter the characteristics of the good; or
(2) any production or pricing practice with respect to which
it may be demonstrated, by a preponderance of evidence, that
the object wastocircumvent this section.
(m) INTERPRETATION AND APPLICATION,—For piirposes of this
section:
(1) The basis for anyterififclassification is the HTS.
(2) Except as otherwise expressly provided, 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) In applying subsection (aX4), the determination of
whether a heading or subheading under the HTS provides
for and specifically describes both a good and ite parts shall
be made on the basis of the nomenclature of the heading
or subheading, the rules of interpretetion, or notes of the HTS.
(4) In appljring the Customs Valuation Code—
(A) the principles of the Customs Valuation Code shall
apply to domestic transactions, with such modifications
as may be required by the circimistances, as would apply
to international transactions;
(B) the provisions of this section shall take precedence
over the Customs Valuation Code to the extent of any
difierence; and
(C) the definitions in subsection (o) shall take precedence over the definitions in the Customs Valuation Code
to the extent of any difference.
(5) All coste referred to in this section shall be recorded
and mainteined in accordance with the Generally Accepted
Accounting Principles applicable in theterritoryof the NAFTA
country in which the good is produced.
(n) ORIGIN OP AUTOMATIC DATA PROCESSING GOODS.—Notwith-

standing any other provision of this section, when the NAFTA
coimtries apply the most-favored-nation rate of duty described in
paragraph 1 of section A of Annex 308.1 of the Agreement to
a good provided for under the tariff provisions set out in Table
308.1.1 of such Annex, the good shall, upon importetion from a
NAFTA country, be deemed to originate in theterritoryof a NAFTA
country for purposes of this section.
(o) SPECIAL RULE FOR CERTAIN AGRICULTURAL PRODUCTS.—

Notwithstanding any other provision of this section, for purposes
of applying a rate of dutytoa good provided for in—
(1) heading 1202 that is exported from the territoiy of
Mexico, if the good is not wholly obteined in the territory
of Mexico,
(2) subheading 2008.11 that is exported from the territory
of Mexico, if any material provided for in heading 1202 used

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2081

in the production of that good is not wholly obtained in the
territory of Mexico, or
(3) subheading 1806.10.42 or 2106.90.12 that is exported
from the territory of Mexico, if any material provided for in
subheading 1701.99 used in the production of that good is
not a qualifying good,
such good shall be treated as a nonoriginating good and, for purposes of this subsection, the terms "qualifying good" and "wholly
obtained in the territory o r have the meaning given such terms
in paragraph 26 of section A of Annex 703.2 of the Agreement.
(p) DEFINITIONS.—For purposes of this section—
(1) CLASS OF MOTOR VEHiCLES.^The term "class of motor
vehicles" mesins any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90,
or heading 8705 or 8706, or motor vehicles designed for
the transport of 16 or more persons provided for in subheading 8702.10.00 or 8702.90.00.
(B) Motor vehicles provided for in subheading 8701.10,
or subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer
persons provided for in subheading 8702.10.00 or
8702.90.00, or motor vehicles provided for in subheading
8704.21 or 8704.31.
(D) Motor vehicles provided for in subheadings 8703.21
through 8703.90.
(2) CUSTOMS VALUATION CODE.—The term "Customs Valuation Code" means the Agreement on Implementation of Article
VII of the General Agreement on Tariffs and Trade, including
its interpretative notes.
(3) 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.
(4) FUNGIBLE (XX)DS AND FUNGIBLE MATERIALS.—The terms
"fungible goods" and "fungible materials" mean goods or materials that are interchangeable for commercial purposes and
whose properties are essentially identical.
(5)

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.—The

term "Grenerally Accepted Accoxmting Principles" means the
recognized consensus or substantial authoritative support in
the territory of a NAFTA country with respect to the recording
of revenues, expenses, costs, assets and liabilities, disclosure
of information, and preparation of financial statements. These
standards may be broad guidelines of general application as
well as detailed standards, practices, or procedures.
(6) GOODS WKLOLLY OBTAINED OR PRODUCED ENTIRELY IN
THE TERRITORY OF ONE OR MORE OF THE NAFTA COUNTRIES.—

The term "goods wholly obtained or mt)duced entirely in the
territory of one or more of the NAFTA countries" means—
(A) mineral goods extracted in the territory of one
or more of the NAFTA coimtries;
(B) vegetable goods harvested in the territory of one
or more of the NAFTA countries;
(C) live animals bom and raised in the territory of
one or more of the NAFTA coimtries;

107 STAT. 2082

PUBLIC LAW 103-182—DEC. 8, 1993
(D) goods obtained from hunting, trapping, or fishing
in the territory of one or more of tiie NAFTA countries;
(E) goods (such as fish, shellfish, and other marine
life) teJcen from the sea by vessels registered or recorded
with a NAFTA country andflvingits flag;
(F) goods produced on board factory ships from the
goods referred to in subparagraph (E), if such factory ships
are registered or recorded with that NAFTA country and
fly its flag;
(G) goods taken by a NAFTA country or a person
of a NAFTA country from the seabed or beneath the seabed
outside territorial waters, provided that a NAFTA country
has rights to exploit such seabed;
(H) goods taken from outer space, if the goods are
obtained by a NAFTA country or a person of a NAFTA
country and not processed in a country other than a NAFTA
country;
(I) waste and scrap derived from—
(i) production in the territory of one or more of
the NAFTA countries; or
(ii) used goods collected in the territory of one
or more of the NAFTA countries, if such goods are
fit only for the recovery of raw materials; and
(J) goods produced in the territory of one or more
of the NAFTA countries exclusively from goods referred
to in subparagraphs (A) through (I), or firom their derivatives, at any stage of production.
(7) IDENTICAL OR SIMILAR GOODS.—The term 'Hdentical or
similar goods" means "identical goods" and "similar goods",
respectively, as defined in the Customs Valuation Code.
(8) INDIRECT MATERIAL.—

(A) The term "indirect material" means a good—
(i) used in the production, testing, or inspection
of a good but not physically incorporated into the good,
or
(ii) used in the maintenance of buildings or the
operation of equipment associated with the production
of a good,
in the territory of one or more of the NAFTA coimtries.
(B) When used for a purpose described in subparagraph
(A), the following materials are among those considered
to be indirect materials:
(i) Fuel and energy.
(ii) Tools, dies, and molds.
(iii) Spare parts and materials used in the maintenance of equipment and buildings.
(iv) Lubricants, greases, compounding materials,
and other materials used in production or used to
operate equipment and buildings.
(v) Gloves, glasses, footwear, clothing, safety equipment, and supplies.
(vi) Equipment, devices, and supplies used for testing or inspecting the goods.
(vii) Catalysts and solvents.
(viii) Any other goods that are not incorporated
into the good, if the use of such goods in the production

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2083

of the good can reasonably be demonstrated to be a
part of that production.
(9) INTERMEDIATE MATERIAL.—The term "intermediate
material" means a material that is self-produced, used in the
production of a good, and designated pursuant to subsection
(bXlO).
(10) MARQUE.—^The term 'barque" means the trade name
used by a separate marketing division of a motor vehicle assembler.
(11) MATERIAL.—^The term "material" means a good that
is used in the production of another good and includes a part
or an ingredient.
(12) MODEL LINE.—^The term "model line" means a group
of motor vehicles having the same platform or model name.
(13) MOTOR VEHICLE ASSEMBLER.^The term "motor vehicle
assembler" means a producer of motor vehicles and any related
persons or joint ventures in which the producer participates.
(14) NAFTA COUNTRY.—The term "NAFTA country" means
the United States, Canada or Mexico for such time as the
Agreement is in force with respect to Canada or Mexico, and
the United States applies the Agreement to Canada or Mexico.
(15) NEW BUILDING.—The term "new building" means a
new construction, including at least the pouring or construction
of new foundation and floor, the erection of a new structure
and roof, and installation of new pliunbing, electrical, and other
utilities to house a complete vehicle assembly process.
(16) NET COST.—llie term "net cost" means total cost less
sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and nonallowable interest
costs that are included in the total cost.
(17) NET COST OF A GOOD.—The term "net cost of a good"
means the net cost that can be reasonably allocated to a good
using one of the methods set out in subsection (bX8).
(18) NONALLOWABLE INTEREST COSTS.—The term
"nonallowable interest costs" means interest costs incurred by
a producer as a result of an interest rate that exceeds the
applicable federal government interest rate for comparable
maturities by more than 700 basis points, determined pursuant
to regulations implementing this section.
(19) NONORIGINATING GOOD; NONORIGINATING MATERIAL.—

The term "nonoriginating good" or "nonoriginating material"
means a good or material that does not qualify as an originating
good or material under the rules of origin set out in this
section.
(20) ORIGINATING.—^The term "originating" means qualifying under the rules of origin set out in mis section.
(21) PRODUCER.—^The term "producer" means a person who
grows, mines, harvests, fishes, traps, hunts, manufactures,
processes, or assembles a good.
(22) PRODUCTION.—^Tlie term "production" means growing,
mining, harvesting, fishing, trapping, hunting, manufacturing,
processing, or assembling a good.
(23) REASONABLY ALLOCATE.—The term "reasonably allocate" means to apportion in a manner appropriate to the circumstances.

107 STAT. 2084
X

PUBLIC LAW 103-182—DEC. 8, 1993

(24) REFIT.—^The term "refit" means a plant closure, for
purposes of plant conversion or retooling, that lasts at least
3 months.
(25) RELATED PERSONS.—^The term "related persons" means
persons specified in any of the following subparagraphs:
(A) Persons who are officers or directors of one
another's businesses.
(B) Persons who are legally recognized partners in
business.
(C) Persons who are employer and employee.
(D) Persons one of whom owns, controls, or holds 25
percent or more of the outstanding voting stock or shares
,.
of the other.
(E) Persons if 25 percent or more of the outstanding
voting stock or shares of each of them is directly or
indirectly owned, controlled, or held by a third person.
(F) Persons one of whom is directly or indirectly controlled by the other.
(G) Persons who are directly or indirectly controlled
by a third person.
(H) Persons who are members of the same family.
For purposes of this paragraph, the term "members of the
same familjr" means natural or adoptive children, brothers,
sisters, parents, grandparents, or spouses.
(26) ROYALTIES.—^The term "royalties'* means payments of
any kind, including payments imder technical assistance or
similar agreements, made as consideration for the use or right
to use any copyright, literary, artistic, or scientific work, patent,
trademark, design, model, plan, secret formula, or process. It
does not include pajnnents under technical assistance or similar
agreements that can be related to specific services such as—
(A) personnel training, without regard to where performed; and
(B) if performed in the territory of one or more of
the NAFTA countries, engineering, tooling, die-setting, software design and similar computer services, or other services.
(27) SALES PROMOTION, MARKETING, AND AFTER-SALES SERV-

ICE COSTS.—^Tlie term "sales promotion, marketing, and aftersales service costs" means the costs related to sales promotion,
marketing, and afi^er-sales service for the following:
(A) Sales and marketing promotion, media advertising,
advertising and market research, promotional and demonstration materials, exhibits, sales conferences, trade
shows, conventions, banners, marketing displays, firee sam,,
pies, sales, marketing and afi^r-sales service literature
(product brochures, catalogs, technical literature, price
lists, service manuals, sales aid information), establishment
and protection of logos and trademarks, sponsorships,
wholesale and retail restocking charges, and entertainment.
(B) Sales and marketing incentives, consumer, retailer,
or wholesaler rebates, and merchandise incentives.
(C) Salaries and wages, sales commissions, bonuses,
benefits (such as medical, insurance, and pension), traveling and living expenses, and membership and professional
fees for sales promotion, marketing, and afi^r-sales service
personnel.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2085

(D) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers' employees, where such costs are identified
separately for sales promotion, marketing, and aft^r-sales
service or goods on the financial statements or cost accounts
oftheprocTucer.
(E) Product liability insurance.
(F) Office supplies for sales promotion, marketing, and
after-sales service of goods, where such costs are identified
separated for sales promotion, marketing, and afl^r-scdes
service of goods on the financial statement or cost accoimts
of the producer.
(G) Telephone, mail, and other communications, where
such costs are identified separately for sales promotion,
marketing, and afi^er-sales service of goods on the financial
statements or cost accounts of the producer.
(H) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers.
(I) Property insurance, taxes, utilities, and repair and
maintenance of sales promotion, marketing, and after-sales
service offices and distribution centers, where such costs
are identified separately for sales promotion, marketing,
and after-sales service of goods on the financial statement
or cost accounts of the producer.
(J) Pa3naients by the producer to other persons for
warranty repairs.
(28) SELF-PRODUCED MATERIAL.—The term "self-produced
material" means a material that is produced by the producer
of a good and used in the production of that jrood.
(29) SHIPPING AND PACKING COSTS.—The term "shipping
and packing costs" means the costs incurred in packmg a
good for shipment and shipping the good fi:^m the point of
direct shipment to the buyer, but does not include tne costs
of preparing and packagingthe good for retail sale.
(30) SIZE CATEGORY.—-The term "size category" means with
respect to a motor vehicle identified in subsection (cXlXA)—
(A) 85 cubic feet or less of passenger and luggage
interior volume;
(B) more than 85 cubic feet, but less than 100 cubic
feet, of passenger and luggage interior volume;
(C) at least 100 cubic feet, but not more than 110
cubic feet, of passenger and luggage interior volume;
(D) more than 110 cubic feet, but less than 120 cubic
feet, of passenger and luggage interior volume; and
(E) 120 cubic feet or more of passenger and luggage
interior volume.
(31) TERRITORY.—^The term "territory" means a territory
described in Annex 201.1 of the Agreement.
(32) TOTAL COST.—The term "total cost" means all product
costs, period costs, and other costs incurred in the territory
of one or more of the NAFTA countries.
(33) TRANSACTION VALUE.—Except as provided in subsection (cXD or (cX2XA), the term "transaction value" mecuis
the price actually paid or payable for a good or material with
respect to a transaction of the producer of the good, adjusted
in accordance with the principles of paragraphs 1, 3, and 4
of Article 8 of the Customs Valuation CcMde and determined

107 STAT. 2086

PUBLIC LAW 103-182—DEC. 8, 1993
without regard to whether the good or material is sold for
export.
(34) UNDERBODY.—The term "underbody" means the floor
pan of a motor vehicle.
(35) USED.—^The term 'Sised" means used or consumed
in the production of goods.
(q) PRESroENTIAL PROCLAMATION AUTHORITY.—

(1) IN GENERAL.—^The President is authorized to proclaim,
as a part of the HTS—
(A) the provisions set out in Appendix 6.A of Annex
300-B, Annex 401, Annex 403.1, Annex 403.2, and Annex
403.3, of the Agreement, and
(B) any additional subordinate category necessary to
cany out this title consistent with the Agreement.
(2) MODIFICATIONS.—Subject to the consultation and layover requirements of section 103, the President may proclaim—
(A) modifications to the provisions proclaimed under
the authority of paragraph (1)(A), other than the provisions
of paragraph A of Appendix 6 of Annex 300-B and section
XI of part B of Annex 401 of the Agreement; £ind
(B) a modified version of the definition of any term
set out in subsection (p) (and such modified version of
the definition shall supersede the version in subsection
(p)), but only if the modified version reflects solely those
^•yf modifications to the same term in article 415 of the Agreement that are agreed to by the NAFTA coimtries before
the 1st anniversary of the date of the enactment of this
Act.
(3) SPECIAL RULES FOR TEXTILES.—Notwithstanding the

I

19 u s e 3333.

provisions of paragraph (2XA), and subject to the consultation
and layover requirements of section 103, the President may
proclaim—
(A) modifications to the provisions proclaimed under
the authority of paragraph (IXA) as are necessaryto implement an agreement with one or more of the NAFTA coimtries pursuant to paragraph 2 of section 7 of Annex 300B of the Agreement, and
(B) before the 1st anniversary of the date of the enactment of this Act, modifications to correct any typographical,
clerical, or other nonsubstantive technical error regarding
the provisions of Appendix 6.A of Annex 300-B and section
XI of part B of Annex 401 of the Agreement.
SEC. 203. DRAWBACK.
(a) DEFINITION OF A GOOD SUBJECT TO

NAFTA DRAWBACK.—
For purposes of this Act and the amendments made by subsection
(b), the term "good subject to NAFTA drawback" means any
imported good other than the following:
(1) A good entered imder bond for transportation and exportation to a NAFTA coimtry.
(2) A good exported to a NAFTA coimtry in the same
condition as when imported into the United States. For purposes of this paragraph—
(A) processes such as testing, cleaning, repacking, or
inspecting a good, or preserving it in its same condition,
shall not be considered to change the condition of the
>K
good, and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2087

(B) except for a good referred to in paragraph 12 of
section A of Annex 703.2 of the Agreement that is exported
to Mexico, if a good described in the first sentence of
this paragraph is commingled with fungible goods and
exported in the same condition, the origin of the good
may be determined on the basis of the inventory methods
provided for in the regulations implementing this title.
(3) A good—
(A) that is—
(i) deemed to be exported from the United States,
(ii) used as a material in the production of another
good that is deemed to be exported to a NAFTA country, or
(iii) substituted for by a good of the same kind
and quality that is used as a material in the production
of another good that is deemed to be exported to a
NAFTA country, and
(B) that is delivered—
(i) to a duty-free shop,
(ii) for ship's stores or supplies for ships or aircraft,
or
(iii) for use in a project undertaken jointly by
the United States and a NAFTA coimtry and destined
to become the property of the United States.
(4) A good exported to a NAFTA country for which a
refund of customs duties is granted by reason of—
(A) the failure of the good to conform to sample or
specification, or
(B) the shipment of the good without the consent of
the consignee.
(5) A good that qualifies under the rules of origin set
out in section 202 that is—
(A) exported to a NAFTA country,
(B) used as a material in the production of another
good that is exported to a NAFTA country, or
(C) substituted for by a good of tike same kind and
quality that is used as a material in the production of
another good that is exported to a NAFTA country.
(6) A g(>od provided for in subheading 1701.11.02 of the
HTS that is—
(A) used as a material, or
(B) substituted for by a good of the same kind and
quality that is used as a material,
in the production of a good provided for in existing Canadian
tariff item 1701.99.00 or existmg Mexican tariff item 1701.99.01
or 1701.99.99 (relating to refined sugar).
(7) A citrus product that is exported to Canada.
(8) A good used as a material, or substituted for by a
good of the same kind and quality that is used as a material,
in the production of—
(A) apparel, or
(B) a good provided for in subheading 6307.90.99
(insofar as it relates to furniture moving pads), 5811.00.20,
or 5811.00.30 of the HTS,
that is exported to Canada and that is subject to Canada's
most-favored-nation rate of duty upon importation into Canada.

107 STAT. 2088

PUBLIC LAW 103-182—DEC. 8, 1993

Where in paragraph (6) a good referred to by an item is described
in parentheses following the item, the description is provided for
purposes of reference only.
(b) CONSEQUENTIAL AMENDMENTS WITH DELAYED EFFECJT.—
(1) BONDED MANUFACTURING WAREHOUSES.—The last para-

graph of section 311 of the Tariff Act of 1930 (19 U.S.C. 1311)
18 amended to read as follows:
'^o article manufactured in a bonded warehousefrommaterials
that are goods subject to NAFTA drawback, as defined in section
203(a) of the North American Free Trade Agreement Implementation Act, may be withdrawn frt)m warehouse for exportation to
a NAFTA countiy, as defined in section 2(4) of that Act, without
assessment of a duty on the materials in their condition and quantity, and at their weight, at the time of importation into the United
States. The duty shcdl be paid before the 61st dav after the date
of exportation, except that upon the presentation, before such 6l8t
day, of satisfactory evidence of the amount of any customs duties
aid to the NAFTA country on the article, the customs duty may
e waived or reduced (subject to section 508(bX2XB)) in an amount
that does not exceed the lesser of—
"(1) Uie total amount of customs duties paid or owed on
the materials on importation into the United States, or
"(2) the total amount of customs duties paid on the article
to the NAFTA country.
If Canada ceases to be a NAFTA country and the suspension
of the operation of the United States-Canada Free-Trade Agreement
thereafter terminates, no article manufactured in a bonded warehouse, except to the extent that such article is made from an
article that is a drawback eUgible good under section 204(a) of
the United States-Canada Free-Trade Agreement Implementation
Act of 1988, may be withdrawnfromsuch warehouse for exportation
to Canada during the period such Agreement is in operation without
payment of a duty on such imported merchandise in its condition,
and at the rate of duty in effect, at the time of importation.".

K

(2) BONDED SMELTING AND REFINING WAREHOUSES.—Section

312 of the Tariff Act of 1930 (19 U.S.C. 1312) is amended—
(A) in paragraphs (1) and (4) of subsection (b), by
striking out the parenthetical matter and the final **, o^
and by adding at the end the following:
"; except that in the case of a withdrawal for exportation
of such a product to a NAFTA country, as defined in section
2(4) of the North American Free Trade Agreement Implementation Act, if any of the imported metal-bearing materials are
goods subject to NAFTA drawback, as defined in section 203(a)
of that Act, the duties on the materials shall be paid, and
the charges against the bond canceled, before the 61st day
after the date of exportation; but upon the presentation, before
such 61st day, of satisfactory evidence of the amount of any
customs duties paid to the NAFTA country on the product,
the duties on the materials may be waived or reduced (subject
to section 508(bX2XB)) in an amount that does not exceed
the lesser of—
"(A) the total amount of customs duties owed on the
materials on importation into the United States, or
"(B) the total amount of customs duties paid to the
NAFTA coimtiy on the product, or^;

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2089

(B) by adding at the end of subsection (b) the following
new flush sentence.
I f Canada ceases to be a NAFTA country and the suspension
of the operation of the United States-Canada Free-Trade Agreement
thereafter terminates, no charges against such bond may be canceled in whole or part upon an exportation to Canada under paragraph (1) or (4) during u e period such Agreement is in operation
except to the extent that the metal-bearing materials were of
Canadian origin as determined in accordance with section 202 of
the United States-Canada Free-Trade Agreement Implementation
Act of 1988."; and
(C) in subsection (d) by striking out the parenthetical
matter and by inserting before the period tne following:
"; except that in the case of a withdrawal for exportation to a
NAFTA country, as defined in section 2(4) of the North American
Free Trade Agreement Implementation Act, if anv of the imported
metal-bearing materials are goods subject to NAFTA drawback,
as defined in section 203(a) of that Act, charges against the bond
shall be paid before the 61st day afi«r the date of exportation;
but upon the presentation, before such 61st day, of satisfactory
evidence of the amount of any customs duties paid to the NAFTA
country on the jmroduct, the bond shall be credited (subject to
section 508(bX2)OB)) in an amount not to exceed the lesser of—
"(1) the total amount of customs duties paid or owed on
the materials on importation into the United States, or
"(2) the total amount of customs duties paid to the NAFTA
country on the product.
If Canada ceases to be a NAFTA country and the suspension
of the operation of the United States-Canada Free-Trade Agreement
thereafter terminates, no bond shall be credited under this subsection with respect to an exportation of a product to Canada
during the period such .Agreement is in operation except to the
extent that the product is a drawback eligible good under section
204(a) of the United States-Canada Free-Trade Agreement
Implementation Act of 1988".
(3) DRAWBACK.—-Subsections (n) and (o) of section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313 (n) and (o)) are amended
toreadas follows:
"(nXD For purposes of this subsection and subsection (o)—
"(A) the term 'NAFTA Act' means the North American
Free Trade Agreemenit Implementation Act;
"(B) the terms 'N.AFTA countr/ and 'good subject to NAFTA
drawback' have the isame respective mecmings mat are given
such terms in sections 2(4) and 203(a) of the NAFTA Act;
and
"(C) arefund,waiver, or reduction of duty under paragraph
(2) of this subsection or paragraph (1) of subsection (o) is
subject to section 508(bX2XB).
"(2) For pur[>oses of subsections (a), (b), (f), (h), (p), and (q),
if an article mat is exported to a NAFTA country is a good subject
to NAFTA drawback, no customs duties on the good may be
refunded, waived, or reduced in an amount that exc^ds the lesser
of—
"(A) the total amount of customs duties paid or owed on
the good on importation into the United States, or
"(B) the total amount of customs duties paid on the good
to the NAFTA country.

107 STAT. 2090

^

PUBLIC LAW 103-182—DEC. 8, 1993

"(3) If Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, then for purposes of subsections (a),
(b), (f), (h), 0'X2)> <^^ (Q)' ^h® shipment to Canada during the
period such Agreement is in operation of an article made from
or substituted for, as appropriate, a drawback eligible good imder
section 204(a) of the Umted States-Canada Free-Trade Implementation Act of 1988 does not constitute an exportation.
"(oXD For purposes of subsection (g), if-—
"(A) a vessel is built for the account and ownership of
a resident of a NAFTA coimtry or the government of a NAFTA
country, and
"(B) imported materials that are used in the construction
and equipment of the vessel are goods subject to NAFTA drawback,
the amount of customs duties refunded, waived, or reduced on
such materials may not exceed the lesser of the total amount
of customs duties paid or owed on the materials on importation
into the United States or the total amoimt of customs duties paid
on the vessel to the NAFTA country.
"(2) If Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade A^:'eement thereafter terminates, then for purposes of subsection (g),
vessels built for Canadian account and ownership, or for the Government of Canada, may not be considered to be built for any foreign
account and ownership, or for the government of any foreign country, except to the extent that the materials in such vessels are
drawback eUgible goods under section 204(a) of the United StatesCanada Free-Trade Implementation Act of 1988.".
(4) MANIPULATION IN WAREHOUSE.—Section 562 of the Tariff Act of 1930 (19 U.S.C. 1562) is amended—
(A) in the second sentence by striking out 'Vithout
payment of duties—^" and inserting a dash;
(B) by striking out paragraphs (1), (2), and (3) and
inserting the following:
"(1) without payment of duties for exportation to a NAFTA
country, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, if the merchandise is
of a kind described in any of paragraphs (1) through (8) of
section 203(a) of that Act;
"(2) for exportation to a NAFTA country if the merchandise
consists of goods subject to NAFTA drawback, as defined in
section 203(a) of that Act, except that—
"(A) the merchandise may not be Mdthdrawn from warehouse without assessment of a duty on the merchandise
in its condition and quantity, and at its weight, at tiie
time of withdrawal from the warehouse with auca additions
to or deductions from the final appraised value as may
be necessary by reason of change in condition, and
"(B) duty shall be paid on the merchandise before
the 61st day after the date of exportation, but upon the
presentation, before such 61st day, of satisfactory evidence
of the amount of any customs duties paid to the NAFTA
countnr on the merchandise, the customs duty may be
waived or reduced (subject to section 508(bX2XB)) in an
amount that does not exceed the lesser of—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2091

"(i) the total amount of customs duties paid or
owed on the merchandise on importation into the
United States, or
"(ii) the total amount of customs duties paid on
the merchandise to the NAFTA country;
"(3) without payment of duties for exportation to any foreign country other than to a NAFTA country or to Canada
when exports to that country are subject to paragraph (4);
"(4) without payment of duties for exportation to Canada
(if that country ceases to be a NAFTA coimtry and the suspension of the operation of the United States-Canada Free-Trade
Agreement thereafter terminates), but the exemption from the
payment of duties under this paragraph applies only in the
case of an exportation during the period such Agreement is
in operation of^merchandise that—
"(A) is only cleaned, sorted, or repacked in a bonded
warehouse, or
"(B) is a drawback eligible good under section 204(a)
of the United States-Canada Free-Trade Agreement
Implementation Act of 1988; and
"(5) without payment of duties for shipment to the Virgin
Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, Johnston Island or the island of Guam."; and
(B) in the third sentence by striking out "paragraph
(1) of the preceding sentence" and inserting "paragraph
(4) of the preceding sentence".
(5) FOREIGN TRAIDE ZONES.—Section 3(a) of the Act of June
18, 1934 (commonly knovm as the "Foreign Trade Zones Act";
19 U.S.C. 81c(a)) is amended—
(A) in the last proviso—
(i) by inserting after That" the following: ", if
Canada ceases to be a NAFTA country and the suspension of the oi>eration of the United States-Canada FreeTrade Agreement thereafter terminates,"; and
(ii) by striking out "on or after January 1, 1994,
or such later date as may be proclaimed by the President under section 204(bX2XB) of such Act of 1988,"
and inserting "during the period such Agreement is
in operation"; and
(B) by inserting before such lastproviso the following
new proviso: "; Provided, further. That no merchandise
that consists of goods subject to NAFTA drawback, as
defined in section 203(a) of the North American Free Trade
Agreement Implementation Act, that is manufactured or
otirierwise changed in condition shall be exported to a
NAFTA country, as defined in section 2(4) of that Act,
without an asseissment of a duty on the merchandise in
its condition and quantity, and at its weight, at the time
of its exportation (or if the privilege in the first proviso
to this subsection was requested, an assessment of a duty
on the merchandise in its condition and quantity, and
at its weight, at the time of its admission into the zone)
and the payment of the assessed duty before the 61st
day after the date of exportation of the article, except
that upon the presentation, before such 6l8t day, of satisfactory evidence of the amount of any customs duties paid
or owed to the NAFTA country on the article, the customs

107 STAT. 2092

PUBLIC LAW 103-182—DEC. 8, 1993
duty may be waived or reduced (subject to section
508(bX2XB) of the TarifT Act of 1930) in an amount that
does not exceed the lesser of (1) the total amoimt of customs
duties paid or owed on the merchandise on importation
into the United States, or (2) the total amount or customs
duties paid on tlie article to the NAFTA country:".
(c) CONSEQUENTIAL AMENDMENT WITH IMMEDIATE EFFECT.—

Section 313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is
amended—
(1) by striking out If in paragraph (2) and inserting
"Subjecttopari^aph (4), if; and
(2) \^ addmg at the end the following new paragraph:
"(4) Efifective upon the entry into force of the North American Free Trade Agreement, the exportation to a NAFTA country, as defined in section 2(4) of the North American Free
Trade Agreement Implementotion Act, of merchandise that is
fungible with and substituted for imported merchandise, other
than merchandise described in paragraphs (1) through (8) of
section 203(a) of that Act, shall not constitute an exportation
for purposes of paragraph (2).".
(d) ELIMINATION OF DRAWBACK FOR SECTION 22 FEES.—Not-

withstanding any other provision of law, the Secretary of the Treasury may not, on condition of export, remnd or reduce a fee applied
pursuant to section 22 of the A^cultural Acijustment Act (7 U.S.C.
624) with respect to goods included under subsection (a) that are
exported to—
(1) Canada after December 31, 1995, for so long as it
is a NAFTA coimtry; or
(2) Mexico after December 31, 2000, for so long as it is
a NAFTA country.
(e) INAPPUCABILITY TO COUNTERVAILING AND ANTIDUMPING

^

DUTIES.—^Nothing in this section or the amendments made by it
shall be considered to authorize the refund, waiver, or reduction
of coimtervailing duties or antidiunping duties imposed on an
imported good.
SEC. 204. CUSTOBIS USER FEES.

Paragraph (10) of section 13031(b) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(bX10)) is amended
to read as follows:
"(lOXA) The fee charged under subsection (a) (9) or (10) with
respect to goods of Canaouan origin (as determined under section
202 of the United Stetes-Canada Free-Trade Agreement) when the
United Stetes-Canada Free-Trade Agreement is in force shall be
in accordance with section 403 of that Agreement.
"(B) For goods qualifying under the rules of origin set out
in section 202 of the North American Free Trade Agreement
Implementotion Act, the fee under subsection (a) (9) or (10)—
"(i) may not be charged with respect to goods that qualify
to be marked as ^oods of Canada pursuant to Annex 311
of the North American Free Trade Agreement, for such time
as Canada is a NAFTA country, as defined in section 2(4)
of such Implementotion Act; and
"(ii) may not be increased after December 31, 1993, and
may not be charged after June 29, 1999, with respect to goods
that qualify to he marked as goods of Mexico pursuant to
such Annex 311, for such time as Mexico is a NAFTA country.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2093

Any service for which an exemption from such fee is provided
by reason of tiiis paragraph may not be funded with money contained in the Customs User Fee Account.".
SEC. 206. ENFORCEMENT.
(a) RECORDKEEPING REQUIREMENTS.—Section 508 of the Tariff

Act of 1930 (19 U.S.C. 1508) is amended as follows:
(1) Subsection (b) is amended to read as follows:
"(b) EXPORTATIONS TC) FREE TRADE COUNTRIES.—
"(1) DEFiNrnoNS,.—As used in this subsection—
"(A) The term 'associated records' means, in regard
to an exported good imder paragraph (2), records associated
with—
"(i) the purchase of, cost of, value of, and pasrment
for, the good;
"(ii) the purchase of, cost of, value of, and payment
for, all material, including indirect materials, used in
the production of the good; and
"(iii) the production of the good.
For purposes of this subparagraph, the terms 'indirect
material, 'material', 'preferential tariff treatment', 'used',
and 'value' have the respective meanings given them in
articles 415 and 514 of the North American Free Trade
Agreement.
"(B) The term *NAFTA Certificate of Origin' means
the certification, established under article 501 of the North
American Free Trade Agreement, that a good qualifies
as an originating good under such Agreement.
"(2) EXPORTS TO NAFTA COUNTRIES.—

"(A) IN GENERAL.—Ai^ person who completes and signs
a NAFTA Certificate of Origin for a good for which preferential treatment under the North /^erican Free TVade
Agreement is claimed shall make, keep, and render for
examination and inspection all records relating to the origin
of the good (including the Certificate or copies thereof)
and the associated records.
"(B) CLAIMS FOR CERTAIN WAIVERS, REDUCTIONS, OR
REFUNDS OF DUTIES OR FOR CREDIT AGAINST BONDS.—

"(i) IN GENERAL.—^Any person that claims with
respect to an article—
"(1) a waiver or reduction of duty under the
last pareigraph of section 311, section 312(b) (1)
or (4), section 562(2), or the last proviso to section
3(a) of the Foreign TVade Zones Act;
"(11) a credit against a bond under section
312(d); or
"(III) a refund, waiver, or reduction of duty
under section 313 (nX2) or (oXD;
must disclose to the Customs Service the information
described in clause (ii).
"(ii) INFORMATION REQUIRED.—Within 30 days
after making a claim described in clause (i) with
respect to. an article, the person making the claim
must disclose to the Customs Service whether that
person has prepared, or has knowledge that another
person has prepared, a NAFTA Certificate of Origin

107 STAT. 2094

PUBLIC LAW 103-182—DEC. 8, 1993

for the article. If after such 30-day period the person
making the claim either—
"(I) prepares a NAFTA Certificate of Origin
for the article; or
"(11) learns of the existence of such a Certificateforthe article;
that person, within 30 days after the occurrence
descrioed in subclause (I) or (II), must disclose the
occurrence to the Customs Service.
"(iii) ACTION ON CLAIM.—If the Customs Service
determines that a NAFTA Certificate of Origin has
been prepared with respect to an article for which
a claim described in clause (i) is made, the Customs
Service may make such ac^'ustments regarding the previous customs treatment of the article as may be warranted.
"(3) EXPORTS UNDER THE CANADIAN AGREEMENT.—Any person who exports, or who knowingly causes to be exported,
any merchandise to Canada during such time as the United
States-Canada Free-Trade Agreement is in force with respect
to, and the United States applies that Agreement to, Canada
shall make, keep, and render for examination and inspection
such records (including certifications of origin or copies tnereof)
which pertain to the exportations.".
(2) Subsection (c) is amended to read as follows:
"(c) PERIOD OF TIME.—^The records required by subsections (a)
and (b) shall be kept for such periods of time as the Secretary
shall prescribe; except that—
"(1) no period of time for the retention of the records
required under subsection (a) or (bX3) may exceed 5 years
firom the date of entry or exportation, as appropriate;
"(2) the period of time for the retention of the records
required under subsection (bX2) shall be at least 5 years firom
the date of signature of the NAFTA Certificate of (Origin; and
"(3) records for any drawback claim shall be kept until
the 3rd anniversary of the date of payment of the claim.".
(3) Subsection (e) is amended to read as follows:
"(e) SUBSECTION (b) PENALTIES.—
"(1) RELATING TO NAFTA EXPORTS.—Any

person who fails
to retain records required by paragraph (2) of subsection (b)
or the regulations issued to implement that paragraph shall
be liable for—
"(A) a civil penalty not to exceed $10,000; or
"(B) the general recordkeeping penalty that applies
under the customs laws;
whichever penalty is higher.
"(2) RELATING TO CANADIAN AGREEMENT EXPORTS.—Anv

person who fails to retain the records required by paragraph
(3) of subsection (b) or the regulations issued to implement
that paragraph shall be liable ror a civil penalty not to exceed
$10,000.".
(b) CONFORMING AMENDMENT.—Section 509(aX2XAXii) of the
Tariff Act of 1930 (19 U.S.C. 1509(aX2XAXii)) is amended to read
as follows:
"(ii) exported merchandise, or knowingly caused
merchandise to be exported, to a NAFTA country (as
defined in section 2(4) of the North American Free

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2095

Trade Agreement Implementation Act) or to Canada
during such time as the United States-Canada FreeTrade Agreement is in force with respect to, and the
United States applies that Agreement to, Canada,".
(c) DISCLOSURE OF INCORRECT INFORMATION.—Section 592

of

the Tariff Act of 1930 (19 U.S.C. 1592) is amended—
(1) in subsection (c)—
(A) by redesignating paragraph (5) as paragraph (6);
and
(B) by inserting after paragraph (4) the following new
paragraph:
'(5) PRIOR DISCLOSURE REGARDING NAFTA CLAIMS.—An

importer shall not be subject to penalties under subsection
(a) for making an incorrect claim lor preferential t€uiff treatment under section 202 of the North American Free Trade
Agreement Implementation Act if the importer—
"(A) has reason to believe that the NAFTA Certificate
of Origin (as defined in section 508(bXl)) on which the
claim was based contains incorrect information; and
"(B) in accordance with regulations issued by the Secretary, voluntarily and promptly makes a corrected declaration and pays any duties owing. ; and
(2) by addmg at the end the following new subsection:
"(f) FALSE CERTIFICATIONS REGARDING EXPORTS TO NAFTA
COUNTRIES.—

"(1) IN GENERAL.—Subject to paragraph (3), it is unlawful Fraud.
for any person to certify falsely, by nraud, gross negligence,
or negligence, in a NAFTA Certificate of Ongin (as defined
in section 508(bXl)) that a good to be exported to a NAFTA
country (as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act) qualifies under the rules
of origin set out in section 202 of that Act.
"(2) APPUCABLE PROVISIONS.—The procedures and penalties of this section that applv to a violation of subsedion
(a) also apply to a violation or paragraph (1), except tiiat—
"(A) subsection (d) does not apply, and
"(B) subsection (cX5) applies only if the person voluntarily and promptly provides, to all persons to whom the
person provided the NAFTA Certificate of Origin, written
notice of the falsity of the Certificate.
"(3) EXCEPTION.—A person may not be considered to have
violated paragraph (1) if—
(A) the information was correct at the time it was
provided in a NAFTA Certificate of Origin but was later
rendered incorrect due to a change in circumstances; and
"(B) the person voluntarily and promptly provides written notice of the change to all persons to whom the person
provided the Certificate of Origin.".

SEC. 206. REUQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS.

Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520)
is amended b^ adding at the end the following new subsection:
"(d) Notwithstanding the fact that a valicT protest was not Regulations.
filed, the Customs Service may, in accordance with regulations
prescribed by the Secretary, reliquidate an entry to refund any
excess duties pcdd on a good qualifying under the rules of origin
set out in section 202 of the North American Free Trade Agreement

107 STAT. 2096

PUBLIC LAW 103-182—DEC. 8, 1993

Implementation Act for which no claim for preferential tariff treatment was made at the time of importation if the importer, within
1 year after the date of importation, files, in accordance with
those regulations, a claim that includes—
"(1) a written declaration that the good qualified under
those rules at the time of importation;
"(2) copies of all applicable NAFTA Certificates of Origin
(as defined in section 508(bXl)); and
"(3) such other documentation relating to the importation
of the goods as the Customs Service may require.".
SEC. 207. COUNTRY OF ORIGIN BiARKING OF NAFTA GOODS.
(a) AMENDMENTS TO TARIFF ACT OF 1930.—Section

304 of the
Tariff" Act of 1930 (19 U.S.C. 1304) is amended—
(1) in subsection (cXl)> by striking "or engraving" and
inserting "engraving, or continuous paint stenciling";
(2) in subsection (cX2)—
(A) by striking "four" and inserting "five"; and
(B) by striking "such as paint stenciling^;
(3) in subsection (e), by striking "or engraving" and inserting "engraving, or an equally permanent method of marking";
(4) by redesignating subsection (h) as subsection (i); and
(5) by inserting after subsection (g) the following new subsection:
"(h) TREATMENT OF (JOODS OF A NAFTA COUNTRY.—
"(1) APPLICATION OF SECTION.—^In appl3ring this section to
an article that qualifies as a good of a NAFTA country (as
defined in section 2(4) of the North American Free Trade Agreement Implementation Act) under the regulations issued by
the Secretary to implement Annex 311 of the North American
Free Trade Agreement—
"(A) the exemption imder subsection (aX3XH) shall
be applied by substituting 'reasonably know* for 'necessarily
know*;
"(B) the Secretary shall exempt the good from the
requirements for marking under subsection (a) if the good—
"(i) is an original work of art, or
"(ii) is provided for under subheading 6904.10,
heading 8541, or heading 8542 of the Harmonized Tariff Schedule of the United States; and
"(C) subsection (b) does not apply to the usual container
of any good described in subsection (aX3) (E) or (I) or
subparagraph (B) (i) or (ii) of this paragraph.
"(2) PETITION RIGHTS OF NAFTA EXPORTERS AND PRODUCERS
REGARDING MARKING DETERMINATIONS.—

"(A) DEFINITIONS.—^For purposes of this paragraph:
"(i) The term 'adverse marking decision' means
a determination by the Customs Service which an
exporter or producer of merchandise believes to be
contrary to Annex 311 of the North American Free
Trade Agreement.
"(ii) A person may not be treated as the exporter
or producer of merchandise regarding which an adverse
marking decision was made unless such person—
"(I) if claiming to be the exporter, is located
in a NAFTA country and is required to maintain

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2097

records in that country regarding exportations to
NAFTA countries; or
"(11) if claiming to be the producer, grows,
mines, harvests, fishes, traps, hunts, manufactures, processes, or assembles such merchandise
in a NAFTA country.
"(B) INTERVENTION OR PETITION REGARDING ADVERSE

MARKING DECISIONS.—If the Customs Service m£dces an
adverse marking decision regarding any merchandise, the
Customs Service shall, upon written request by the exporter
or producer of the merchandise, provide to the exporter
or producer a statement of the basis for the decision. If
the exporter or producer beUeves that the decision is not
correct, it may intervene in any protest proceeding initiated
by the importer of the merchandise. If the importer does
not file a protest with regard to the decision, the exporter
or producer may file a petition with the Customs Service
setting forth—
"(i) a description of the merchandise; and
"(ii) the basis for its claim that the merchandise
should be marked as a good of a NAFTA country.
"(C) EFFECT OF DETERMINATION REGARDING DECISION.—

If, after receipt and consideration of a petition filed by
an exporter or producer imder subparagraph (B), the Customs Service determines that the adverse marking
decision—
"(i) is not correct, the Customs Service shall notify
the petitioner of the determination and all merchandise
entered, or withdrawn from warehouse for consumption, more than 30 days after the date that notice
of the determination imder this clause is published
in the weekly Custom Bulletin shall be marked in
conformity with the determination; or
"(ii) is correct, the Customs Service shall notify
the petitioner that the petition is denied.
"(D) JUDICIAL REVIEW.—For purposes of judicial review,
the denial of a petition imder subparagraph (CXii) shall
be treated as if it were a denial of a petition of an interested
party under section 516 regarding an issue arising under
any of the preceding provisions of uiis section.",
(b) COORDINATION WITH 1988 ACT REGARDING CERTAIN ARTI- 19 use i304
CLES.—^Articles that qualify as goods of a NAFTA country under "°^regulations issued by the Secretary in accordance with Aimex 311
of the Agreement are exempt from the marking requirements
promulgated by the Secretary of the Treasury under section 1907(c)
of the Omnibus Trade and Competitiveness Act of 1988 (Public
Law 100-418), but are subject to the requirements of section 304
of the Tariflr Act of 1930 (19 U.S.C. 1304).
SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS.

Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is
amended—
(1) in subsection (cXD by inserting ", or with respect to
a determination of origin imder section 202 of the North American Free Trade Agreement Implementation Act," after "with
respect to any one category of merchandise" in the fourth
sentence;

107 STAT. 2098

PUBLIC LAW 103-182—DEC. 8, 1993
(2) in subsection (cX2)—
(A) by striking out "or^ at the end of subparagraph
(D);
(B) by redesignating subparagraph (E) as subparagraph (F);
(C) by inserting after subparagraph (D) the following
new subparagraph:
"(E) with respect to a determination of origin under
section 202 of the North American Free Trade Agreement
Implementation Act, any exporter or producer of the merchandise subject to that determination, if the exporter or
producer completed and signed a NAFTA Certificate of
Origin covering the merchandise; or^; and
(D) by striking "clauses (A) through (D)" in subparagraph (F) (as redesignated by subparagraph (B)), and
inserting "clauses (A) through (E)"; and
(3) by adding at the end the following new subsections:
"(e) ADVANCE NOTICE OF CERTAIN DETERMINATIONS.—Except

as provided in subsection (f), an exporter or producer referred
to in subsection (cX2XE) shall be provided notice in advance of
an adverse determination of origin under section 202 of the North
American Free Trade Agreement Implementation Act. The Secretary may, by regulations, prescribe the time period in which
such advance notice shall be issued and authorize the Customs
Service to provide in the notice the entry number and any other
entry information considered necessary to allow the exporter or
producer to exercise the rights provided by this section.
"(f) DENIAL OF PREFERENTIAL TREATMENT.—If the Customs
Service finds indications of a pattern of conduct by an exporter
or producer of false or unsupported representations that goods
qualify under the rules of origin set out in section 202 of the
North American Free Trade Agreement Implementation Act—
"(1) the Customs. Service, in accordance with regulations
issued by the Sedretary, may deny preferential tariff treatment
to entries of identical goods exported or produced by that person; and
"(2) the advance notice requirement in subsection (e) shall
not apply to that person;
until the person establishes to the satisfaction of the Customs
Service that its representations are in conformity with section 202.".
SEC. 209. EXCHANGE OF INFORMATION.

Section 628 of the Tariff Act of 1930 (19 U.S.C. 1628)
is amended by adding at the end the following new subsection:
"(c) The Secretary may authorize the Customs Service to
exchange information with any government agency of a NAFTA
country, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, if the Secretary—
"(1) reasonably believes the exchange of information is
necessary to implement chapter 3, 4, or 5 of the North American
Free Trade Agreement, and
"(2) obtains assurancesfiromsuch country that the information will be held in confidence and used only for governmental
purposes.".

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2099

SEC. 210. PROHramON ON DRAWBACS FOR TBLBVI8ION PICTURE
TUBE&

19 USC 3334.

Notwithstanding anv other provision of law, no customs duties
may be refunded, waived, or reduced on color cathode-ray television
picture tubes, including video monitor cathode-ray tubes (provided
for in subheading 8540.11.00 of the HTS), that are nonoriginating
goods under section 202(pX19). and are^
(A) exported to a NAFTA country;
(B) used as a material in the production of other goods
that are exported to a NAFTA country; or
(C) substituted for by goods of the same kind and quaUty
used as a material in the production of other goods that are
exported to a NAFTA country.
SEC. 211. MONITORING OF TELEVISION AND PICTURE TUBE IMPORTS. 19 USC 3835.

(a) MONITORING.—^Bciginning on the date the Agreement enters
into force with respect to the United States, the United States
Customs Service shall, for a period of 5 years, monitor imports
into the United States of articles described in subheading 8528.10
of the HTS from NAFTA countries and shall take action to exercise
all rights of the United States under chapter 5 of the Agreement
with respect to such imi)orts. The United States Customs Service
shall take appropriate action under chapter 5 of the Agreement
with respect to such imports, including verifications to ensure that
the rules of origin under the Agreement are fully complied with
and that the duty drawback obligations contained in article 303
and Annex 303.8 of the Agreement are fully implemented and
duties are correctly assessed.
(b) REPORT TO TRADE REPRESENTATIVE.—The United States
Customs Service shall make the results of the monitoring and
verification required by subsection (a) available to the President
and the Trade Representative. If, based on such information, the
President has reason to believe that articles described in subheading
8540.11 of the HTS, intended for ultimate consumption in the
United States, are entering the territory of a NAFTA country
inconsistent with the provisions of the Agreement, or have been
undervalued in a manner that may raise concerns under United
States trade laws, thie President shall promptly take such action
as may be appropriate under all relevant provisions of the Agreement, including article 317 and chapter 20, and under applicable
United States trade statutes;
SEC. 212. TITLE VIABIENDMENTS.

19 USC 58c note.

Any amendment in this title to a law that is also amended
imder title VI shall be made after the title VI amendment is
executed.
SEC. 213. EFFECTIVE DATEa
(a) PROVISIONS EFFECTIVE ON DATE OF ENACTMENT.—Section

212 and this section take effect on the date of the enactment
of this Act.
(b) PROVISIONS EFFECTIVE WHEN AGREEMENT ENTERS INTO

FORCE.—Section 201, section 202, section 203 (a), (d), and (e),
section 210 and section 211, the amendment made by section 203(c),
and the amendments made by sections 204 through 209 take effect
on the date the Agreement enters into force with respect to the
United States.

69-194 O - 94 - 6 : QL. 3 Part 3

19 USC 3331

107 STAT. 2100

PUBLIC LAW 103-182—DEC. 8, 1993

(c) PROVISIONS WITH DELAYED EFFECTIVE DATES.—The amendments made b^ section 203(b) apply—
(1) with respect to exports from the United States to
Canada—
(A) on January 1, 1996, if Canada is a NAFTA country
on that date, and
(B) after such date for so long as Canada continues
to be a NAFTA country; and
(2) with respect to exports from the United States to
Mexico—
(A) on January 1, 2001, if Mexico is a NAFTA coimtry
on that date; and
(B) after such date for so long as Mexico continues
to be a NAFTA country.

TITLE in—APPLICATION OF AGREEMENT TO SECTORS AND SERVICES
Subtitle A—Safeguards
PART 1->R£LIEF FROM IMPORTS BENEFITING
FROM THE AGREEMENT
19 u s e 3351.

SEC. 301. DEFINITIONS.

19 use 3352.

As used in this part:
(1) CANADIAN ARTICLE.—The term "Canadian article"
means an article that—
(A) is an originating good under chapter 4 of the Agreement; and
(B) qualifies under the Agreement to be marked as
a good of Canada.
(2) MEXICAN ARTICLE.—The term 'Mexican article" means
an article that—
(A) is an originating good under chapter 4 of the Agreement; and
(B) qualifies under the Agreement to be marked as
a good of Mexico.
SEC. 302. COMMENCING OF ACnON FOR RELIEF.
(a) FILING OF PETITION.-

(1) IN GENERAL.—A petition requesting action under this
part for the purpose of ac^usting to the obligations of the
United States under the Agreement may be tiled with the
International Trade Commission by an entity, including a trade
association, firm, certified or recognized union, or group of
workers, that is representative of an industry. The International Trade Commission shall transmit a copy of any petition
filed imder this subsection to the Trade Representative.
(2) I^OVISIONAL 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.
(3) CRITICAL CIRCUMSTANCES.—An allegation that critical
circumstances exist must be included in the petition or made

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2101

on or before the 90th day after the date on which the investigation is initiated under subsection (b).
(b) INVESTIGATION AND DETERMINATION.—Upon the

filing

of

a petition under subsection (a), the International Trade Commission, unless subsection (d) applies, shedl promptly initiate an investigation to determine whether, as a result or the reduction or
elimination of a duty pro^/ided for under the Agreement, a Canadian
cuticle or a Mexican article, as the case may he, is being imported
into the United States in such increased (quantities (in absolute
terms) and under such conditions so that imports of the article,
alone, constitute a substantial cause of—
(1) serious iiyury; or
(2) except in the case of a Canadian article, a threat of
serious ii^jury;
to the domestic industry producing an article that is like, or directly
competitive with, the imported article.
(c) APPLICABLE PROVISIONS.—The provisions of—

(1) para^aphs (IXB), (3) (except subparagraph (A)), and
(4) of subsection (b);
(2) subsection (c); and
(3) subsection (d),
of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply
with respect to any investigation initiated under subsection (b).
(d) ARTICLES EXEMFF FROM INVESTIGATION.—NO investigation
may be initiated under this section with respect to—
(1) any Canadian article or Mexican article if import relief
has been provided under this part with respect to that article;
or
(2) any textile or apparel article set out in Appendix 1.1
of Annex 300-B of the Agreement.
SEC. 303. INTERNATIONAL TRADE COMMISSION ACTION ON PETTnON. 19 USC 3353.
(a) DETERMiNATiON.~By no later than 120 days after the date
on which an investigation is initiated imder section 302(b) with
respect to a petition, the International Trade Commission shall—
(1) make the determination required imder that section;
and
(2) if the determination referred to in paragraph (1) is
affirmative and an allegation regarding critical circumstances
was made under section 302(a), make a determination regarding that allegation.
(b) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-

TION AFFIRMATIVE.—^If the determination made by the International
Trade Commission under subsection (a) with respect to imports
of an article is affirmative, the International Trade Commission
shall find, and recommend to the President in the report required
under subsection (c), the amoimt of import relief that is necessary
to remedy or, except in the case of imports of a Canadian article,
prevent the irgury foimd by the International Trade Commission
m the determination. The import relief recommended bv the International Trade Commission under this subsection shall be limited
to that described in section 304(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 respcKst to an investigation, the International
Trade Commission shall submit to the President a report that
shall include—

107 STAT. 2102

Federal
Register,
publication.

19 u s e 3354.
President.

PUBLIC LAW 103-182—DEC. 8, 1993

(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 International Trade Commission shall
promptly make public such report (with the exception of information
which the International Trade 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 part, 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. 304. 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 International Trade Commission containing an affirmative determination
of the International Trade Commission imder section 303(a), 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, except
in the case of imports of a Canadian article, prevent the ii^jury
found by the International Trade Commission.
(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.—^The import relief (including provisional
relief) that the President is authorized to provide undfer this part
is as follows:
(1) In the case of imports of a Canadian article—
(A) the suspension of any further reduction provided
for under Annex 401.2 of the United States-Canada FreeTrade 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
on like articles on December 31,1988; or
(C) in the case of a duty applied on a seasonal basis
to such article, an increase in the rate of dutv imposed
on the article to a level that does not exceed tne column
1 general rate of duty imposed on the article for the corresponding season occurring immediately before January
1,1989.
(2) In the case of imports of a Mexican article—
(A) the suspension of any further reduction provided
for under the United States Schedule to Annex 302.2 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—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2103

(i) the column 1 general rate of duty imposed under
the HTS on like articles at the time me 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; or
(C) in the case of a duty applied on a seasonal basis
to such article, an increase in tne rate of dutv 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 immediately occurring
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 3 years,
except that, if a Canadian article or Mexican article which is the
subject of the action—
(1) is provided for in an item for which the transition
period of tariff elimination set out in the United States Schedule
to Annex 302.2 of the Agreement is greater than 10 years;
and
(2) the President determines that the affected industry
has undertaken adjustment and requires an extension of the
period of the import relief;
the President, after obtaining the advice of the International Trade
Commission, may extend the period of the import relief for not
more than 1 year, if the duty applied during the initial period
of the relief is substantially reduced at the beginning of the extension period.
(e) RATE ON MEXICAI^ ARTICLES AFTER TERMINATION OF IMPORT

RELIEF.—^When import :relief under this part is terminated with
respect to a Mexican 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, accoraing to the United States
Schedule to Annex 302.2 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 imder section 302;
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 / ^ n e x 302.2;
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 302.2
for the elimination of the tariff.
SEC. SOS. TERMINATION OF RELIEF AUTHORITY.

(a) GENERAL RULE.—Except as provided in subsection (b), no
import relief may be pro\ided under this part—
(1) in the case of a Canadian article, after December 31,
1998; or
(2) in the case of a Mexican article, after the date that
is 10 years after the date on which the Agreement enters
into force;

19 USC 3355.

107 STAT. 2104

PUBLIC LAW 103-182—DEC. 8, 1993

unless the article against which the action is taken is an item
for which the transition period for tariff elimination set out in
the United States Schedule to Annex 302.2 of the Agreement is
greater than 10 years, in which case the period during which
relief may be granted shall be the period of staged tariff elimination
for that article.
(b) EXCEPTION.—^Import reUef may be provided under this part
in the case of a Canadian article or Mexican article after the
date on which such relief would, but for this subsection, terminate
imder subsection (a), but only if the Government of Canada or
Mexico, as the case may be, consents to such provision.
19 u s e 3356.

SEC. 306. 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 304 shall be treated as action taken imder chapter 1 of
title II of such Act.
19 u s e 3357.

SEC. 307. SUBMISSION OF PETITIONS.

A petition for import relief may be submitted to the International Trade Commission under—
(1) this part;
(2) chapter 1 of title II of the Trade Act of 1974; or
(3) under both this part and such chapter 1 at the same
time, in which case the International Trade Commission shall
consider such petitions jointly.
SEC. 308. SPECIAL TARIFF PROVISIONS FOR CANADIAN FRESH
FRUITS AND VEGETABLEa

Federal
publication

^

/

(a) IN GENERAL.—Section 301(a) of the United States-Canada
Free-Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112
note) is amended—
(1) in paragraph (1), by striking ''promptlv^ in the flush
sentence at the end thereof and inserting "immeoiatelV',
(2) by redesignating paragraphs (z) through (9) as paragraphs (3) through (10), respectivelv,
(3) by insertmg after paragrapn (1) the following new paragraph:
«(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.",
(4) in paragraph (5), as redesignated by paragraph (2),
by striking '^paragraph (3)" and inserting "paragraph (4)", and
(5) by amenmng paragraph (9), as reaesignated by paragraph (2), to read as foUows:
"(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 Commis-

PUBLIC TAW 103-182—DEC. 8, 1993

107 STAT. 2105

sioner of Ciistoms at such time and in such manner as
the Commissioner requires.",
(b) EFFECTIVE DATE.—^The amendments made by subsection 19 use 2112
(a) take effect on the date of the enactment of this Act.
^°^^SEC. 300. PRICE-BASED SNAPBACK FOR FROZEN CONCENTRATED 19 USC 3358.
ORANGE JUICE.
(a) TRIGGER PRICE DETERMINATION.—

(1) IN GENERAL.—^The Secretary shall determine—
(A) each pciriod of 5 consecutive business days in which
the daily price for frozen concentrated orange juice is less
than the trigger price; and
(B) for each period determined under subparagraph
(A), the first period occurring thereafter of 5 consecutive
business days in which the daily price for frozen concentrated orange juice is greater than the trigger price.
(2) NOTICE OF DETERMINATIONS.—The Secretary shall Federal
immediately notify the Commissioner of Customs and publish ^®^|
f^J^?^
publication.
notice in the Federal Register of any determination under paragraph (1), and the date of such publication shall be the determination date for that determination.
(b) IMPORTS OF MEXICAN ARTICLES.—Whenever after any determination date for a determination under subsection (aXlXA), the
quantity of Mexican articles of frozen concentrated orange juice
that is entered exceeds—
(1) 264,978,000 liters (single strength equivalent) in any
of calendar years 1994 through 2002; or
(2) 340,560,000 liters (single strength equivalent) in any
of calendar years 2003 through 2007;
the rate of duty on Mexican articles of frozen concentrated orange
juice that are entered after the date on which the applicable limitetion in paragraph (1) or (2) is reached and before the determination
date for the related de1:ermination under subsection (aXlXB) shall
be the rate of duty specified in subsection (c).
(c) RATE OF DUTY.—^The rate of duty specified for purposes
of subsection (b) for articles entered on any day is the rate in
the HTS that is the lower of—
(1) the column 1-General rate of duty in effect for such
articles on July 1,1991; or
(2) the colimuii l--iGeneral rate of duty in effect on that
day.
(d) DEFINITIONS.—For purposes of this section—
(1) The term "daily price" means the daily closing price
of the New York Cotton Exchange, or any successor as determined by the Secretary, for the closest month in which contracts
for frozen concentrated orange juice are being traded on tiie
Exchange.
(2) The term 'business da3r" means a day in which contracts
for fh)zen concentrated orange juice are l>eing traded on the
New York Cotton Exchange, or any successor as determined
by the Secretary.
(3) The term "entered" means entered or withdrawn from
warehouse for consvunption, in the customs territory of the
United States.
(4) The term "frozen concentrated orange juice" means
aUproducts classifiable under subheading 2009.11.00 of the

107 STAT. 2106

PUBLIC LAW 103-182—DEC. 8, 1993
(5) The term "Secretary" means the Secretary of Agriculture.
(6) The term "trigger price" means the average daily closing
price of the New York Cotton Exchange, or any successor as
determined by the Secretary, for the corresponding month during the previous 5-year period, excluding the year with the
highest average price for the corresponding month and the
year with the lowest average price for the corresponding month.

PART 2—RELIEF FROM IMPORTS FROM ALL
COUNTRIES
19 u s e 3371.

SEC. 311. NAFTA ARTICLE DKPACT IN IMPORT RELIEF CASES UNDER
THE TRADE ACT OF 1974.

(a) IN GENERAL.—^If, in any investigation initiated under chapter 1 of title II of the Trade Act of 1974, the International Trade
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 International Trade Commission shall also find (and
report to the President at the time such injury determination is
submitted to the President) whether—
(1) imports of the articlefi*oma NAFTA country, considered
individually, account for a substantial share of total imports;
and
(2) imports of the article from a NAFTA coimtry, considered
individually or, in exceptional circiunstances, imports from
NAFTA countries considered collectively, contribute importently to the serious ii^jiuy, or threat thereof, caused by imports.
(b) FACTORS.—

(1) SUBSTANTLU. IMPORT SHARE.—In determining whether
imports from a NAFTA country, considered individually,
account for a substantial share of total imports, such imports
normally shall not be considered to account for a substantial
share of total imports if that country is not among the top
5 suppliers of the article subject to the investigation, measured
in terms of import share during the most recent 3-year period.
(2) APPUCATION OF "CONTRIBUTE IMPORTANTLY" STAND-

ARD.—^In determining whether imports from a NAFTA country
or countries contribute importently to the serious ii\jury, or
threat thereof, the International Trade Commission shall consider such factors as the change in the import share of the
N.^TA country or coimtries, and the level and change in
the level of imports of such coimtry or countries. In applying
the preceding sentence, imports from a NAFTA coimtry or
countries normally shall not be considered to contribute importently to serious ii^ury, or the threat thereof, if the growth
rate of importe from such coimtry or coimtries during the
period in which an ii\jurious increase in importe occurred is
appreciably lower than the growth rate of totel importe fix)m
all sources over the same period.
(c) DEFINITION.—^For purposes of this section and section 312(a),
the term ''contribute importantly" refers to an importent cause,
but not necessarily the most importent cause.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2107

SEC. 312. PRESIDENTIAL ACTION REGABDING NAFTA IMPORTS.

(a) IN GENERAL.—^In determining whether to take action under
chapter 1 of title II of the Trade Act of 1974 with respect to
imports from a NAFTA country, the President shall determine
whether—
(1) imports from such country, considered individually,
accoimt for a substantial share of total imports; or
(2) importsfroma NAFTA coimtry, considered individually,
or in exceptional circumstances importsfrt)mNAFTA countries
considered collectively, contribute import£uitly to the serious
ii^jiiry, or threat thereof, found by the International Trade
Commission.
(b) EXCLUSION OF NAFTA 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 excludefrt)msuch action
imports from a NAFTA country if the President makes a negative
determination under subsection (a) (1) or (2) with respect to imports
frt)m such country.
(c) ACTION AFTER EXCLUSION OF NAFTA COUNTRY IMPORTS.—
(1) IN GENERAL.—If the President, under subsection (b),
excludes imports from a NAFTA country or countries from
action under chapter 1 of title II of the Trade Act of 1974
but thereafter determines that a surge in imports from that
coimtry or countries is undermining the effectiveness of the
action—
(A) the President mav take appropriate action under
such chapter 1 to include those imports in the action;
and
(B) any entity that is representative of an industry
for which such action is being taken may request the
International Trade Commission to conduct an investigation of the surge in such imports.
(2) INVESTIGATIOJM.—^Upon receiving a request under paragraph (IXB), the International Trade Commission shall conduct
an investigation to determine whether a surge in such imports
imdermines the effectiveness of the action. The International
Trade Commission shall submit the findings of its investigation
to the President no later than 30 days after the request is
received by the International Trade Commission.
(3) DEFINITION.—^For purposes of this subsection, the term
"surge" means a significant increase in imports over the trend
for a recent representative base period.
(d) CONDITION APPUCABLE TO QUANTITATIVE RESTRICTIONS.—

Any action taken under this section proclaiming a quantitative
restriction shall permit the importation of a quantity or value
of the £ui;icle which is not less than the quantity or value of
such article imported into the United States during the most recent
period that is representative of imports of such article, with allowance for reasonable growth.

PART 3—GENERAL PROVISIONS
SEC 315. PROVISIONAL RELIEF.

Section 202(d) of the Trade Act of 1974 (19 U.S.C. 2252(d))
is amended—
(1) in paragraph (IXA) by inserting "or citrus product"
after "agricultural product" each place it appears;

19 USC 3372.

107 STAT. 2108

PUBLIC LAW 103-182—DEC. 8, 1993
(2) in the text of paragraph (IXC) that appears before
subclauses (I) and (II)—
(A) by inserting "or citrus product" after "agricultural
product" each place it appears, and
(B) by inserting "or citrus product" after "perishable
product";
(3) by redesignating subparagraphs (A) and (B) of paragraph (5) as subparagraphs (B) andf (C); and
(4) bv inserting a new subparagraph (A) in paragraph
(5) to read as follows:
"(A) The term 'citrus product' means any processed
oranges or grapefruit, or any orange or grapefniit juice,
including concentrate.".

19 u s e 3381.

Termination

19 u s e 3382.

19 use 2252.

19 u s e 3351

SEC. 318. MONITORING.

For purposes of expediting an investigation concerning provisional relief under this subtiue or section 202 of the Trade Act
of 1974 regarding—
(1) fresh or chilled tomatoes provided for in subheading
0702.00.00 of the HTS; and
(2) fresh or chilled peppers, other than chili peppers provided for in subheading 0709.60.00 of the HTS;
the International Trade (Jommission, until January 1, 2009, shall
monitor imports of such goods as if proper requests for such monitoring had been made under subsection 202(d)(lXCXi) of such section
202. At the request of the International Trade Commission, the
Secretary of A^culture and the Commissioner of Customs shall
provide to the International Trade Commission information relevant
to the monitoring carried out under this section.
SEC. 317. PROCEDUBES CONCERNING THE CONDUCT OF INTERp
NATIONAL TRADE COMMISSION INVESTIGATIONS.
(a) PROCEDURES AND RULES.—The International Trade Commis-

sion shall adopt such procedures and rules and regulations as
are necessary to bring its procedures into conformity with chapter
8 of the Agreement.
(b) CONFORMING AMENDMENT.—Section 202(a) of the Trade Act
of 1974 is amended by adding at the end thereof the following:
"(8) The procedures concerning the release of confidential
business information set forth in section 332(g) of the Tariff
Act of 1930 shall apply with respect to information received
by the Commission in the course of investigations conducted
under this chapter and part 1 of title III of the North American
Free Trade Agreement Implementetion Act.".
SEC. 318. EFFECTIVE DATE.

Except as provided in section 308(b), the provisions of this
subtitle take effect on the date the Agreement enters into force
with respect to the United Stetes.

Subtitle B—Agriculture
19 u s e 3391.

SEC. 321. AGRICULTURE.
(a) MEAT IMPORT ACT OF

1979.—The Meat Import Act of 1979
(19 U.S.C. 2253 note) is amended—
(1) in subsection (b)—
(A) by striking the last sentence in paragraph (2),

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2109

(B) by redesignating paragraph (3) as paragraph (4)
and inserting after paragraph (2) the following new paragraph:
(3) The term 'meat articles' does not include any article
described in para^aph (2) that—
"(A) origmates in a NAFTA country (as determined
in accordance witii section 202 of the NAFTA Act), or
"(B) originates in Canada (as determined in accordance
with section 202 of the United States-Canada Free-Trade
Agreement Implementation Act of 1988) during such time
as the United States-Canada Free-Trade Agreement is in
force with respect to, and the United States applies such
Agreement to, Canada."; and
(C) by inserting after paragraph (4) (as redesignated
by subparagraph (B) of this paragraph) the following new
para^aphs:
(5) The term *NAFTA Act' means the North American
Free Trade Agreement Implementation Act.
"(6) The term 'NAFTA country* has the meaning given
such term in section 2(4) of the NAFTA Act.";
(2) in subsection (fKD, by striking the end period and
inserting ", except that the IVesident may exclude any such
article originating in a NAFTA country (as determined in
accordance with section 202 of the NAFTA Act) or, if paragraph
(3XB) applies, any such article originating in Canada as determined in accordance with such paragraph (3XB)."; and
(3) in subsection (i), by inserting and Mexico" after "Canada" each place it appears.
(b) SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT.—

(1) IN GENERAL.—^The President may, piu'suant to article
309 and Annex 703.2 of the Agreement, exempt from any quantitative limitation or fee imposed pursuant to section 22 of
the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with
amendments by the Agricultural Marketing Agreement Act of
1937, any article which originates in Mexico, if Mexico is a
NAFTA coimtry.
(2) QUAUFICATION OF ARTICLES.—The determination of
whether an article originates in Mexico shall be made in accordance with section 202, except that operations performed in,
or materials obtained from, any country other than the United
States or Mexico sha11 be treated as if performed in or obtained
from a country other than a NAFTA country.
(c) TARIFF RATE QUOTAS.—In implementing the tariff rate
uotas set out in the United States Schedule to Annex 302.2 of
tie Agreement, the President shall take such action as may be
necessary to ensure that imports of agricultural goods do not disrupt
the orderly marketing of commodities in the United States.

a

(d) PEANUTS.—
(1) EFFECT OF THE AGREEMENT.—

(A) IN GENERAL.—^Nothing in the Agreement or this
Act reduces or eliminates—
(i) any penalty required under section 358e(d) of
the Agricultural A4justment Act of 1938 (7 U.S.C.
1359a(d)); or
(ii) any requirement imder Marketing Agreement
No. 146, Regulating the Quality of Domestically Produced Pecuiuts, on peanuts in the domestic market,

107 STAT. 2110

PUBLIC LAW 103-182—DEC. 8, 1993
pursuant to section 108B(f) of the Agricultural Act
of 1949 (7 U.S.C. 1445c-^(f)).
(B) REENTRY OF EXPORTED PEANUTS.—Paragraph (6)

of section 358e(d) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359a(dX6)) is amended to read as follows:
"(6) REENTRY OF EXPORTED PEANUTS.—

"(A) PENALTY.—If any additional peanuts exported by
a handler are reentered into the United States in commercial quantities as determined by the Secretary, the importer
of the peanuts shall be subiect to a penalty at a rate
equal to 140 percent of the loan level for quota peanuts
on the quantity of peanuts reentered.
"(B) RECORDS.—Each person, firm, or handler who
imports peanuts into the United States shall maintain
such records and docimients as are required by the Secretanr to ensure compliance with this subsection. .
(2) CONSULTATIONS ON IMPORTS.—It is the sense of Congress that the United States should request consultations in
the Working Group on Emergency Action, established in the
Understanding Between the Parties to the North American
Free Trade Agreement Concerning Chapter Eight—^Emergency
Action, if imports of peanuts exceed the in-quota quantity under
a tarifT rate quota set out in the United States Schedule to
Annex 302.2 of the Agreement concerning whether—
(A) the increased imports of peanuts constitute a
substantial cause of, or contribute importantly to, serious
ii\jury, or threat of serious injury, to the domestic peanut
industry; and
(B) recourse under Chapter Eight of the Agreement
or Article XIX of the General Agreement on Tariffs and
Trade is appropriate.
(e) FRESH FRUITS, VEGETABLES, AND CUT FLOWERS.—

Public
information.

(1) IN GENERAL.—^The Secretary of Agriculture shall collect
and compile the information specified imder paragraph (3),
if reasonably available, ftoza appropriate Federal departments
and agencies and the relevant counterpart ministries of the
Grovemment of Mexico.
(2) DESIGNATION OF AN OFFICE.—The Secretary of Agriculture shall designate an office within the United States
Denartment of Agriculture to be responsible for maintaining
ana disseminating, in a timely manner, the data accumulated
for verifying citrus, finiit, vegetable, and cut flower trade
between the United States and Mexico. The information shall
be made available to the public and the NAFTA Agriculture
Committee Working Groups.
(3) INFORMATION COLLECTED.—The information to be collected, if reasonably available, includes—
(A) monthly firesh firuit, firesh vegetable, firesh citrus,
and processed citrus product import and export data;
(B) montlily citrus juice production and export data;
(C) data on inspections of shipments of citrus, vegetables, and cut flowers entering the United States fi'om Mexico; and
(D) in the case of firuits, vegetables, and cut flowers
entering the United States from Mexico, data regarding—
(i) planted and harvested acreage; and
(ii) wholesale prices, quality, and grades.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2111

(f) END-USE CERTIFICATES.—

(1) IN GENERAI^.—^The Secretary of Agriculture (referred
to in this subsection as the "Secretary") shall implement, in
coordination with the Commissioner of Customs, a program
requiring that end-use certificates be included in the documentation covering the entry into, or the withdrawal from
a warehouse for consumption in, the customs territory of the
United States—
(A) of any wheat that is a product of any foreign
country or instrumentality that requires, as of the effective
date of this subsection, end-use certificates for imports
of wheat that is a product of the United States (referred
to in this subsection as 'United States-produced wheat");
and
(B) of any barley that is a product of any foreign
coimtry or instnmientality that requires, as of the effective
date of this subsection, end-use certificates for imports
of barley that is a product of the United States (referred
to in this subsection as 'United States-produced barlejr").
(2) REGULATIONS.—^The Secretary shall prescribe by regulation such requirements regarding the information to be included
in end-use certificates as may be necessary and appropriate
to carry out this subsection.
(3) PRODUCER PROTECTION DETERMINATION.—At any time
after the effective date of the requirements established under
paragraph (1), the Secretary may, subject to paragraph (5),
suspend the requirements when making a determination, after
consultation with domestic producers, that the program implemented under this subsection has directly resulted in—
(A) the reduction of income to the United States
producers of agricultural commodities; or
(B) the reduction of the competitiveness of United
States agricultural commodities in the world export markets.
(4) SUSPENSION OF REQUIREMENTS.—

(A) WHEAT.—If a foreign country or instrumentality
that requires end-use certificates for imports of United
States-produced wheat as of the effective date of the
requirement under paragraph (IXA) eliminates the requirement, the Secretary shall suspend the requirement imder
paragraph (IXA) beginning 30 calendar days after suspension by the foreign country or instrumentality.
(B) BARLE\\—If a foreign country or instrumentality
that requires end-use certificates for imports of United
States-producedi barley as of the effective date of the
requirement imder paragraph (IXB) eliminates the requirement, the Secretary shall suspend the requirement under
paragraph (IXB) beginning 30 calendar days after suspension by the foreign country or instnmientality.
(5) REPORT TO CONGRESS.—The Secretary shall not suspend
the requirements established under paragraph (1) under circumstances identified in paragraph (3) before the Secretary
submits a report to Congress detailing the determination made
under paragraph (3) and the reasons for making the determination.
(6) COMPLIANCE.—It shall be a violation of section 1001
of title 18, United States Code, for a person to engage in

107 STAT. 2112

PUBLIC LAW 103-182—DEC. 8, 1993

fraud or knowingly violate this subsection or a regulation
implementing this subsection.
(7) EFFECTIVE DATE.—^This subsection shall become effective on the date that is 120 days after the date of enactment
of this Act.
(g) AGRICULTURAL FELLOWSHIP PROGRAM.—Section 1542(d) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (Public
Law 101-624; 7 U.S.C. 5622 note) is amended by adding at the
end the following new paragraph:
"(3) AGRICULTURAL FELLOWSHIPS FOR NAFTA COUNTRIES.—

"(A) IN GENERAL.—The Secretary shall grant fellowships to individuals from countries that are parties to the
North American Free Trade Agreement (referred to in this
aragraph as 'NAFTA') to study agriculture in the United
tates, and to individuals in the United States to study
agriculture in other NAFTA countries.
"(B) PURPOSE.—^The purpose of fellowships granted
under this paragraph is—
"(i) to allow the recipients to expand their knowledge and underst€uiding of agricultural systems and
practices in other NAFTA countries;
"(ii) to facilitate the improvement of agricultural
systems in NAFTA coimtries; and
"(iii) to establish and expand agricultural trade
linkages between the United States and other NAFTA
countries.
**(C) EUGIBLE RECIPIENTS.—The Secretary may provide
fellowships under this paragraph to agricultural producers
and consultants, government officials, and other individuals
from the private and public sectors.
"(D) ACCEPTANCE OF GIFTS.—The Secretary may accept
money, funds, property, and services of every kind by gift,
devise, bequest, grant, or otherwise, and may in any manner, dispose of all of the holdings and use the receipts
generated from the disposition to carry out this paragraph.
Receipts under this paragraph shall remain available until
expended.

P

"(E)

AUTHORIZATION OF APPROPRIATION.—There

are

authorized to be appropriated such sums as are necessary
to carry out this paragraph.",
(h) ASSISTANCE FOR AFFECTED FARMWORKERS.—

(1) IN GENERAL.—Subject to paragraph (3), if at any time
the Secretary of Agriculture determines that the implementation of the Agreement has caused low-income migrant or seasonal farmworkers to lose income, the Secretary may make
available grants, not to exceed $20,000,000 for any fiscal year,
to public agencies or private organizations with t£uc-exempt
status under section 501(cX3) of the Internal Revenue Code
of 1986, that have experience in providing emergencv services
to low-income migrant or seasonal farmworkers. Emergency
services to be provided with assistance received under tiiis
subsection may include such types of assistance as the Secretary determines to be necessary and appropriate.
(2) DEFINITION.—^As used in this subsection, the term "lowincome migrant or seasonal farmworker" shall have the same
meaning as provided in section 2281(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (42 U.S.C. 5177a(b)).

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2113

(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $20,000,000 for each fiscal year to
carry out this subsection.
(i) BIENNIAL REPORT ON EFFECTS OF THE AGREEMENT ON AMERICAN AGRICULTURE.—

(1) IN GENERAL.—^The Secretary of Agriculture shall prepare a biennial report on the effects of the A^eement on
United States producers of agricultural commodities and on
rural conmiunities located in the United States.
(2) CONTENTS OF REPORT.—^The report required under this
subsection shall include—
(A) an assessment of the effects of implementing the
Agreement on the various agricultural commodities affected
by the Agreement, on a commodity-by-commodity basis;
(B) an assessment of the efiTects of implementing the
Agreement on investments made in United States agriculture and on rural commimities located in the United
States;
(C) an assessment of the effects of implementing the
Agreement on employment in United States agriculture,
including any gains or losses of jobs in businesses directly
or indirectly related to United States agriculture; and
(D) such other information and data as the Secretary
determines appropriate.
(3) SUBMISSION OF REPORT.—The Secretary shall furnish
the report required under this subsection to the Committee
on Agriculture, Nutrition, and Forestry of the Senate and to
the Committee on Agriculture of the House of Representatives.
The report shall be due every 2 years and shall be submitted
by March 1 of the year in which the report is due. The first
report shall be due by March 1, 1997, and the final report
shall be due by March 1, 2011.

Subtitle C—Intellectual Property
SEC. 331. TREATMENT OF INVENTIVE ACTIVITY.

Section 104 of title 35, United States Code, is amended to
read as follows:
"§ 104. Invention made abroad
''(a) IN GENERAL.—In proceedings in the Patent and Trademark
Office, in the courts, and before any other competent authority,
an applicant for a patent, or a patentee, may not establish a
date of invention by reference to knowledge or use thereof, or
other activity with respect thereto, in a foreign country other than
a NAFTA country, except as provided in sections 119 and 365
of this title. Where an invention was made by a person, civil
or military, while domiciled in the United States or a NAFTA
country and serving in any other country in connection with operations by or on behalf of the United States or a NAFTA country,
the person shall be entitled to the same rights of priority in the
United States with respect to such invention as if such invention
had been made in the United States or a NAFTA coimtry. To
the extent that any information in a NAFTA country concerning
knowledge, use, or other activity relevant to proving or disproving
a date of invention has not been made available for use in a

107 STAT. 2114

PUBLIC LAW 103-182—DEC. 8, 1993

proceeding in the Office, a coiurt, or any other competent authority
to the same extent as such information could be made available
in the United States, the Commissioner, court, or such other authority shall draw appropriate inferences, or take other action permitted
by statute, rule, or regulation, in favor of the party that requested
the information in the proceeding.
"(b) DEFINITION.—As used in this section, the term *NAFTA
country* has the meaning given that term in section 2(4) of the
North American Free Trade Agreement Implementation Act.".
SEC. 332. RENTAL RIGHTS IN SOUND RECORDINGS.

Section 4 of the Record Rental Amendment of 1984 (17 U.S.C.
109 note) is amended by striking out subsection (c).
SEC. 333. NONREGISTRABILnY
OF MISLEADING
GEOGRAPHIC
INDICATIONS.
(a) MARKS NOT REGISTRABLE ON THE PRINCIPAL REGISTER.—

Section 2 of the Act entitled "An Act to provide for the registration
and protection of trademarks used in commerce, to carry out the
provisions of certain international conventions, and for other purposes", approved July 5, 1946, commonly referred to as the Trademark Act of 1946 (15 U.S.C. 1052(e)), is amended—
(1) by amending subsection (e) to read as follows:
"(e) Consists of a mark which (1) when used on or in connection
with the goods of the applicant is merely descriptive or deceptivelv
misdescriptive of them, (2) when used on or in connection vatn
the goods of the applicant is primarily geographically descriptive
of them, except as indications of regional origin may l>e registrable
under section 4, (3) when used on or in connection with the goods
of the applicant is primarily geographically deceptively
misdescriptive of them, or (4) is primarily merely a surname. ;
and
(2) in subsection (f)—
(A) by striking out "and (d)" and inserting "(d), and
(eXS)"; and
(B) by adding at the end the following new sentence:
"Nothing in this section shall prevent the registration of
a mark which, when used on or in connection with the
goods of the applicant, is primarily geographically deceptively misdescriptive of them, and which became distinctive
of the applicant's goods in commerce before the date of
the enactment of the North American Free Trade Agreement Implementation Act.".
(b) SUPPLEMENTAL REGISTER.—Section 23(a) of the Trademark
Act of 1946 (15 U.S.C. 1091(a)) is amended—
(1) by striking out "and (d)" and inserting "(d), and (eX3)";
and
(2) by adding at the end the following new sentence: "Nothing in this section shall prevent the registration on the supplemental register of a mark, capable of distinguishing the
applicant's goods or services and not registrable on the principal
register under this Act, that is declared to be unregistrable
under section 2(eX3), if such mark has been in lawful use
in commerce by the owner thereof, on or in connection with
any goods or services, since before the date of the enactment
of the North American Free Trade Agreement Implementation
Act.".

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2115

SEC. 334. MOTION PICTURES IN THE PUBUC DOMAIN.

(a) IN GENERAL.—Chapter 1 of title 17, United States Code,
is amended by inserting after section 104 the following new section:
**§ 104A. Copjrright in certain motion pictures
"(a) RESTORATION OF COPYRIGHT.—Subject to subsections (b)
and(c)—
''(1) any motion picture that is first fixed or published
in the territory of a NAFTA country as defined in section
2(4) of the Nortii American Free Trade Agreement Implementation Act to which Annex 1705.7 of the North American Free
Trade Agreement applies, and
"(2) any work included in such motion picture that is first
fixed in or pubUshed with such motion picture,
that entered the public domain in the United States because it
was first published on or after January 1, 1978, and before March
1, 1989, Mrithout the notice required by section 401, 402, or 403
of this title, the absence of which has not been excused by the
operation of section 405 of this title, as such sections were in
eCTect during that period, shall have copyright protection under
this title for the remainder of the term of copyright protection
to which it would have been entitled in the United States had
it been published with such notice.
"(b) EFFECTIVE DATE OF PROTECTION.—^The protection provided
under subsection (a) shall become effective, with respect to any
motion picture or work included in such motion picture meeting
the criteria of that subsection, 1 year after the date on which
the North American Free; Trade Agreement enters into force with
respect to, and the United States applies the Agreement to, the
country in whose territory the motion picture was first fixed or
published if, before the end of that 1-year period, the copyright
owner in the motion picture or work files with the Copyright Office
a statement of intent to have copyright protection restored under
subsection (a). The Copyright Office shall publish in the Federal Federal
Register promptly after that effective date a list of motion pictures, ^nhliv^tir
and works included in such motion pictures, for which protection publication.
is provided under subsection (a).
"(c) USE OF PREVIOUSLY OWNED COPIES.—A national or domiciliary of the United States who, before the date Of the enactment
of the North American Free Trade Agreement Implementation Act,
made or acquired copies of a motion picture, or other work included
in such motion picture, that is subject to protection under subsection
(a), may sell or distribute such copies or continue to perform publicly
such motion picture and other work without liability for such sale,
distribution, or performance, for a period of 1 year after the date
on which the Ust of motion pictures, and works included in such
motion pictures, that are subject to protection under subsection
(a) is published in the Federal Register under subsection (b).".
(b) CONFORMING AMENDMENT.—The table of sections at the
beginning of chapter 1 of title 17, United States Code, is amended
by inserting after the item relating to section 104 the following
new item:
"lOiA. Copyright in certain motion pictiires.".

107 STAT. 2116
15 u s e 1052
note.

PUBLIC LAW 103-182—DEC. 8, 1993

SEC. 385. EFFECTIVE DATES.

(a) IN GENERAL.—Subject to subsections (b) and (c), the amendments made by this subtitle take effect on the date the Agreement
enters into force with respect to the United States.
(b) SECTION 331.—^Ilie amendments made by section 331 shall
apply to all patent applications that are filed on or after the date
or the enactment of this Act: Provided, That an applicant for a
patent, or a patentee, may not establish a date or mvention by
reference to knowledge or use thereof, or other activity with respect
thereto, in a NAFTA country, except as provided in sections 119
and 365 of title 35, United States Code, that is earlier than the
date of the enactment of this Act.
(c) SECTION 333.—^The amendments made by section 333 shall
apply only to trademark applications filed on or after the date
or the enactment of this Act.

Subtitle D—^Temporary Entry of Business
Persons
Aliens.
19 u s e 3401.

SEC. 341. TEMPORARY ENTRY.

(a) NONIMMIGRANT TRADERS AND INVESTORS.—Upon a basis
of reciprocity secured by the Agreement, an alien who is a citizen
of Canada or Mexico, and the spouse and children of any such
alien if accompanying or following to join such alien, 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(aX15XE) of such Act (8 U.S.C. 1101(aX15XE)) if entering
solely for a purpose specified in Section B of Annex 1603 of the
Agreement, but only if any such purpose shall have been specified
in such Annex on the date of entry into force of the Agreement.
For purposes of this section, the term "citizen of Mexico" means
"citizen as defined in Annex 1608 of the Agreement.
(b) NONIMMIGRANT PROFESSIONALS AND ANNUAL NUMERICAL

Regulations.

LIMIT.—Section 214 of the Immigration and Nationality Act (8
U.S.C. 1184) is amended by redesignating subsection (e) as paragraph (1) of subsection (e) and adding after such paragraph (1),
as redesignated, the following new paragraphs:
"(2) An alien who is a citizen of Canada or Mexico, and the
spouse and children of any such alien if accompanying or following
to ioin such alien, who seeks to enter the United States under
and pursuant to the provisions of Section D of Annex 1603 of
the North American Free Trade Agreement (in this subsection
referred to as 'NAFTA') to engage in business activities at a professional level as provided for in such Annex, may be admitted for
such purpose under regulations of the Attorney General promulated after consultation with the Secretaries of State and Labor,
'or purposes of this Act, including the issuance of entry documents
and the application of subsection (b), such alien shall be treated
as if seeking classification, or classifiable, as a nonimmigrant under
section 101(aX15). The admission of an alien who is a citizen
of Mexico shall be subject to paragraphs (3), (4), and (5). For
purposes of this paragraph and paragraphs (3), (4), and (5), the
term 'citizen of Mexico' means 'citizen' as defined in Annex 1608
of NAFTA

f

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2117

"(3) The Attorney General shall establish an annual numerical
limit on admissions under paragraph (2) of aliens who are citizens
of Mexico, as set forth in Appendix 1603.D.4 of Annex 1603 of
the NAFTA Subject to paragraph (4), the annual numerical limit—
"(A) beginning with the second year that NAFTA is in
force, may be increased in accordance with the provisions of
paragraph 5(a) of Section D of such Annex, and
^B) shall cease to apply as provided for in paragraph
3 of such Appendix.
"(4) The annual numerical limit referred to in paragraph (3)
may be increased or shall cease to apply (other than by operation
of paragraph 3 of such Appendix) only if—
"(A) the President has obtained advice regarding the proposed action from the appropriate advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C.
2155);
"(B) the President has submitted a report to the Committee Reports.
on the Judiciary of the Senate and the Committee on the
Judiciary of the House of Representatives that sets forth—
"(i) the action proposed to be taken and the reasons
therefor, and
"(ii) the advice obtained under subparagraph (A);
"(C) a period of at least 60 calendar days that begins
on the first day on which the President has met the requirements of subparagraphs (A) and (B) with respect to such action
has expired; and
"(D) the President has consulted with such committees
regarding the proposed action during the period referred to
in subparagraph (C).
"(5) During the period that the provisions of Appendix 1603.D.4 Regulations.
of Annex 1603 of tne NAFTA apply, the entry of an alien who
is a citizen of Mexico under and pursuant to the provisions of
Section D of Annex 1603 of NAFTA shall be subject to the attestation requirement of section 212(m), in the case of a registered
nurse, or the application requirement of section 212(n), in the
case of all other professions set out in Ai)pendix 1603.D.1 of Annex
1603 of NAFTA, and the petition requirement of subsection (c),
to the extent and in the manner prescribed in regulations promulgated by the Secretary of Labor, with respect to sections 212(m)
and 212(n), and the Attorney General, with respect to subsection
(c).".
(c) LABOR DISPUTES.—Section 214 of the Immigration and

Nationality Act (8 U.S.C. 1184) is amended by adding at the end
the following new subsection:
"(p Notwithstanding any other provision of this Act, an alien Regulations.
who IS a citizen of Canada or Mexico who seeks to enter the
United States under and pursuant to the provisions of Section
B, Section C, or Section D of Annex 1603 of the North American
Free Trade Agreement, shall not be classified as a nonimmigrant
under such provisions if there is in progress a strike or lockout
in the course of a labor dispute in the occupational classification
at the place or intended place of employment, unless such alien
establishes, pursuant to regulations promulgated by the Attorney
General, that the alien's entry will not affect adversely the settlement of the strike or lockout or the employment of any person
who is involved in the strike or lockout. Notice of a determination
under this subsection shall be given as may be required by para-

107 STAT. 2118

PUBLIC LAW 103-182—DEC. 8, 1993

graph 3 of article 1603 of such Agreement. For purposes of this
subsection, the term 'citizen of Mexico' means 'citizen' as defined
in Annex 1608 of such Agreement.".
19 u s e 3401
note.

SEC. 342. EFFECTIVE DATE.

The provisions of this subtitle take effect on the date the
Agreement enters into force with respect to the United States.

Subtitle E—Standards
PART 1—STANDARDS AND MEASURES
SEC. 351. STANDARDS AND SANITARY AND PHYTOSANTTARY MEASURES.

(a) IN GENERAL.—Title IV of the Trade Agreements Act of
1979 (19 U.S.C. 2531 et seq.) is amended by inserting at the
end the following new subtitle:

^Subtitle E—Standards and Measures
Under the North American Free Trade
Agreement
**CHAPTER 1—SANITARY AND PHYTOSANTTARY
MEASURES
19 u s e 2575.

'^EC. 461. GENERAL.

*T^othing in this chapter may be construed—
"(1) to prohibit a Federal agency or State agency from
engaging in activity related to sanitary or phytosanitary measures to protect human, animal, or plant life or health; or
"(2) to limit the authority of a Federal agency or State
agency to determine the level of protection of human, animal,
or plant life or health the agency considers appropriate.
19 u s e 2575a.

•«EC. 462. INQUIRY POINT.

"The standards information center maintained under section
414 shall, in addition to the functions specified therein, make available to the public relevant documents, at such reasonable fees
as the Secretary of Commerce may prescribe, and information
regarding—
(1) any sanitary or phytosanitary measure of general
application, including any control or inspection procedure or
approval procedure proposed, adopted, or maintained by a Federal or State agency;
**(2) the proceaures of a Federal or State agency for risk
assessment, and factors the agency considers in conducting
the assessment and in establishing the levels of protection
that the agency considers appropriate;
"(3) the membership and participation of the Federal
Government and State governments in international and
regional sanitary and phytossuiitary organizations and systems,
and in bilateral and multilateral arrangements regarding sanitary and phytosanitary measures, and the provisions of those
systems and arrangements; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2119

"(4) the location of notices of the type required under article
719 of the NAFTA, or where the information contained in
such notices can be obtained.
"SEC. 463. CHAPTER DEFINITIONS.

'Notwithstanding section 451, for purposes of this chapter—
''(I) ANIMAL.—^The term 'animal' includes fish, bees, and
wild faiuia.
**(2) APPROVAL PROCEDURE.—The term 'approval procedure'
means any registration, notification, or other mandatory
administrative procedure for—
"(A) approving the use of an additive for a stated
purpose or under stated conditions, or
"(B) establishing a tolerance for a stated purpose or
under stated conditions for a contaminant,
in a food, beverage, or feedstuff prior to permitting the use
of the additive or the marketing of a food, beverage, or feedstuff
containing the additive or contaminant.
"(3) CONTAMINANT.—^The term 'contamin£int' includes pesticide and veterinary drug residues and extraneous matter.
"(4) CONTROL OR INSPECTION PROCEDURE.—The term 'control or inspection procedure' means any procedure used, directly
or indirectly, to determine that a sanitary or phytosanitary
measure is fulfilled, including sampling, testing, inspection,
evaluation, verification, monitoring, auditing, assurance of
conformity, accreditation, registration, certification, or other
procedure involving the physical examination of a good, of
the packaging of a good, or of^the equipment or facilities directly
related to production, marketing, or use of a good, but does
not mean an approval procedure.
"(5) PLANT.—^The term 'plant' includes wild flora.
"(6) RISK ASSESSMENT.—^The term 'risk assessment' means

an evaluation of—
"(A) the potential for the introduction, establishment
or spread of a pest or disease and associated biological
and economic consequences; or
"(B) the potential for adverse effects on himian or
animal life or health arising from the presence of an additive, contaminant, toxin or disease-causing organism in
a food, beverage, or feedstuff.
"(7) SANITARY OR PHYTOSANITARY MEASURE.—

"(A) IN GENERAL.—^The term 'sanitary or phytosanitary
measure' means a measure to—
"(i) protect animal or plant life or health in the
United States from risks arising from the introduction,
establishment, or spread of a pest or disease;
"(ii) protect human or animal life or health in
the United States from risks arising from the presence
of an additive, contaminant, toxin, or disease-causing
organism in a food, beverage, or feedstuff;
"(iii) protect human life or health in the United
States fh}m risks arising from a disease-causing organism or pest carried by an animal or plant, or a product
thereof; or
"(iv) prevent or limit other damage in the United
States arising from the introduction, establishment,
or spread of a pest.

19 USC 2575b.

^

107 STAT. 2120

PUBLIC LAW 103-182—DEC. 8, 1993
"(B) FORM.—^The form of a sanitary or phytosanitary
measure includes—
"(i) end product criteria;
"(ii) a product-related processing or production
method;
"(iii) a testing, inspection, certification, or approval
procedure;
"(iv) a relevant statistical method;
"(v) a sampling procedure;
"(vi) a method of risk assessment;
"(vii) a packaging and labeling requirement
directly related to food safety; and
"(viii) a quarantine treatment, such as a relevant
requirement associated with the transportation of animals or plants or with material necessary for their
survival during trcmsportation.
ort carcasses or meat
or meat products referrea to in subsection (a) have complied
with requirements that are at least eoual to all inspection
and building construction standards and all other provisions
of this Act and regulations issued under this Act.";
(5) in paragraphs (3) through (7) (as redesignated by paragraph (3)), by striking "the" the first place it appears in each
paragraph and inserting The";
(6) m paragraphs (3) through (5) (as so redesignated), by
striking the semicolon at the end of each paragraph and inserting a period; and
(7) in paragraph (6) (as so redesignated), by striking
''; and" at the end and inserting a period.
(g) PEANUT BUTTER AND PEANUT PASTE.—

(1) IN GENERAL.—Except as provided in paragraph (2), all
peanut butter and peanut paste m the United States domestic
market shall be processedfirompeanuts that meet the quality
standards established for peanuts under Marketing Agreement
No. 146.
(2) IMPORTS.—^Peanut butter and peanut paste imported
into the United States shall comply mth paragraph (1) or
with sanitary measures that achieve at least the same level
of sanitary protection.
(h) ANIMAL HEALTH BIOCONTAINMENT FACILITY.—
(1) GRANT FOR CONSTRUCTION.—The Secretary

of Agriculture shall make a grant to a land grant college or university
described in paragraph (2) for the construction of a facility
at the college or university for the conduct of research in
animal health, disease-transmitting insects, and toxic chemicals
that requires the use of biocontainment facilities and equipment. Tne facility to be constructed with the grant shall be
known as the "Southwest Regional Animal Health
Biocontainment Facility".
(2) GRANT RECIPIENT DESCRIBED.—TO be eligible for the
grant under paragraph (1), a land grant college or university
must be—
(A) located in a State a4jacent to the international
border with Mexico; and
(B) determined by the Secretary of Agriculture to have
an established program in animal health research and
education and to have a collaborative relationship with
one or more colleges of veterinary medicine or universities
located in Mexico.
(3) AcTivmES OF THE FACILITY.—^The facility constructed
using the grant made under paragraph (1) shall be used for
conducting the following activities:
(A) The bioconteinment facility shall offer the ability
to organize multidisciplinary international teams working
on basic and applied resecu^h on diagnostic method development and disease control strategies, including development of vaccines.

107 STAT. 2126

PUBLIC LAW 103-182—DEC. 8, 1993
(B) The biocontainment facility shall support research
that will improve Uie scientific basis for regidatory activities, decreasing the need for new regulatory programs and
enhancing international trade.
(C) Tlie biocontainment facility shall allow academic
institutions, governmental agencies, and the private sector
to conduct research in basic and applied research biology^,
epidemiology, pathogenesis, host response, and diagnostic
methods, on disease agents that threaten the livestock
industries of the United States and Mexico.
(D) The biocontainment facility mav be used to support
research involving food safety, toxicology, environmental
pollutants, radioisotopes, recombinant microorganisms, and
selected naturally resistant or transgenic animals.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are author-

ized to be appropriated for each fiscal year such sums as
are necessary to carry out this subsection,
(i) REPORTS ON INSPECTION OF IMPORTED MEAT, POULTRY,
OTHER FOODS, ANIMALS, AND PLANTS.—

Reports.

(1) DEFINITIONS.—As used in this subsection:
(A) IMPORTS.—^The term "Hmports" means any meat,
poultry, other food, animal, or plant that is imported into
the United States in commercially significant quantities.
(B) SECRETARY.—The term "Secretary" means the Secretary of Agriculture.
(2) IN GENERAL.—In consultation with representatives of
other appropriate agencies, the Secretary shall prepare an
annual report on the impact of the Agreement on the inspection
of imports.
(3) CONTENTS OF REPORTS.—^The report required under this
subsection shall, to the maximum extent practicable, include
a description of—
(A) the quantity or, with respect to the Customs Service, the number of shipments, of imports from a NAFTA
country that are inspected at the borders of the United
States with Canada and Mexico during the prior year;
(B) any change in the level or types of mspections
of imports in each NAFTA country during the prior year;
(C) in any case in which the Secretary has determined
that the inspection system of another NAFTA country is
ty
equivalent to the inspection system of the United States,
the reasons supporting the determination of the Secretary;
(D) the incidence of violations of inspection requirements by imports from NAFTA countries auring the prior
year—
(i) at the borders of the United States with Mexico
or Canada; or
(ii) at the last point of inspection in a NAFTA
country prior to shipment to the United States if the
br J*
agency accepts inspection in that country;
s
(E) the incidence of violations of inspection requirements of imports to the United States from Mexico or
Canada prior to the implementation of the Agreement;
(F) any additional cost associated with maintaining
an adequate inspection system of imports as a result of
the implementation of the Agreement;
(G) any incidence of transshipment of imports—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2127

(i) that originate in a country other than a NAFTA
country;
(ii) that are shipped to the United States through
a NAFTA country during the prior year; and
(iii) that are incorrectly represented by the
importer to qualify for preferential treatment under
the Agreement;
(H) the quantity and results of any monitoring by
the United States of equivalent inspection systems of
imports in other NAFTA countries during the prior year;
(I) the use by other NAFTA countries of sanitary and
hytosanitary measures (as defined in the Agreement) to
mit exports of United States meat, poultry, other foods,
animals, and plants to the countries during the prior year;
and
(J) any other information the Secretary determines
to be appropriate.
(4) FREQUENCY OF REPORTS.—The Secretary shall submit—
(A) the initial report required imder this subsection
not later than January 31,1995; and
(B) an annual report required under this subsection
not later than 1 year after the date of the submission
of the initial report and the end of each 1-year period
thereafter through calendar year 2004.
(5) REPORT TO CONGRESS.—The Secretary shall prepare
and submit the report required under this subsection to the
Committee on Agriculture of the Hoiise of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.

E

Subtitle F—Corporate Average Fuel
Economy
SEC. 371. CORPORATE AVERAGE FUEL ECONOMY.

(a) IN GENERAL.—Section 503(bX2) of the Motor Vehicle
Information and Cost Savings Act (15 U.S.C. 2003(bX2)) is amended
by adding at the end the following new subparagraph:
''(GXi) In accordance with the schedule set out in clause
(ii), an automobile shall be considered domestically manufactured in a model year if at least 75 percent of the cost to
the manufacturer of the automobile is attributable to value
added in the United States, Canada, or Mexico, unless the
assembly of the automobile is completed in Canada or Mexico
and the automobile is not imported into the United States
prior to the expiration of 30 days following the end of that
model year.
"(ii) Clause (i) shall applv to all automobiles manufactured
by a manufactiurer and sold in the United States, wherever
assembled, in accordance with the following schedule:
"(I) With respect to a manufacturer that initiated the
assembly of automobiles in Mexico before model year 1992,
the manufacturer may elect, at any time between January
1, 1997, and January 1, 2004, to have clause (i) apply
to all automobiles it manufactures, beginning with the
model year commencing after the date of such election.

Motor vehicles.

107 STAT. 2128

PUBLIC LAW 103-182—DEC. 8, 1993

''(II) With respect to a manufacturer initiating the
assembly of automobiles in Mexico after model year 1991,
clause (i) shall apply to all automobiles it manufactures,
beginning with the model year commencing after January
1, 1994, or the model year commencing after the date
that the manufacturer initiates the assembly of automobiles in Mexico, whichever is later.
"(Ill) With respect to a manufacturer not described
by subclause (I) or (II) assembling automobiles in the
United States or Canada but not in Mexico, the manufacturer may elect, at any time between January 1, 1997,
and January 1, 2004, to have clause (i) apply to all automobiles it manufactures, beginning with the model year
commencing after the date of such election, except that
if such manufacturer initiates the assembly of automobiles
in Mexico before making such election, this subclause shall
not apply and the manufacturer shall be subject to clause
(II).
"(TV) With respect to a manufacturer not assembling
automobiles in the United States, Canada, or Mexico,
clause (i) shall apply to all automobiles it manufactures,
beginning with the model year commencing after January
1,1994.
"(V) With respect to a manufacturer authorized to
make an election under subclause (I) or (III) which has
not made that election within the specified period, clause
(i) shall apply to all automobiles it manufactures, beginning
with the model year commencing after January 1, 2004.
"(iii) The Secretary shall prescribe reasonable procedures
for elections under this subparagraph, and the EPA Administrator may prescribe rules for purposes of carrying out this
subparagrapn.".
(b) CONFORMING AMENDMENTS.—The first sentence of section
503(b)(2XE) of the Motor Vehicle Information and Cost Savings
Act (15 U.S.C. 2003(bX2XE)) is amended—
(1) by striking "An" and inserting "Except as provided
in subparagraph (G), an", and
(2) in the last sentence, bv striking "this subparagraph"
and inserting "this subparagrapn and subparagraph (G)".

Subtitle G—Government Procurement
SEC. 381. GOVERNMENT PROCUREMENT.

(a) IN GENERAL.—Section 301 of the Trade Agreements Act
of 1979 (19 U.S.C. 2511) is amended—
(1) in subsection (a) by striking "The President" and inserting "Subject to subsection (f) of this section, the President";
(2) by inserting "or the North American Free Trade Agreement" after "the Agreement" in paragraph (1) of subsection
(b); and
(3) by adding at the end the following new subsections:
"(e) PROCUREMENT PROCEDURES BY CERTAIN FEDERAL AGEN-

CIES.—^Notwithstanding any other provision of law, the President
may direct any agency of the United States listed in Annex 1001.1a2 of the Nortn .Ajnencan Free Trade Agreement to procure eligible

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2129

products in compliance with the procedural provisions of chapter
10 of such Agreement.
"(f)

SMALL BUSINESS AND MINORITY PREFERENCES.—The

authority of the President under subsection (a) of this section to
waive any law, regulation, procedure, or practice regarding Government procurement does not authorize the waiver of any small
business or minority preference.".
(b) RECIPROCAL CoMPErmvE PROCUREMENT PRACTICES.—Section 302(a) of such Act (19 U.S.C. 2512(a)) is amended by striking
"would otherwise be eligible products" in paragraph (1) and inserting "are products covered under the Agreement for procurement
by the Umted States".
(c) DEFINITION OF EUGIBLE PRODUCT.—Section 308(4XA) of
such Act (19 U.S.C. 2518(4XA)) is amended to read as follows:
"(A) IN GENERAL.—^The term 'eligible product' means,
with respect to any foreign coimtry or instrumentality that
"(i) a party to the Agreement, a product or service
of that country or instrumentality which is covered
under the Agreement for procurement by the United
States; or
"(ii) a party to the North American Free Trade
Agreement, a product or service of that county or
instrumentality which is covered under the ^forth
American Free Trade Agreement for procurement by
the United States.".
(d) CONFORMING AMENDMENTS.—Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903 note) is amended bv inserting
", Mexico, or Canada" after "the United States" each place it
appears.
(e) EFFECTIVE DATE.—The provisions of this subtitle take effect 19 use 2511
on the date the Agreement enters into force with respect to the ^°^United States.

TITLE IV—DISPUTE SETTLEMENT IN
ANTIDUMPING AND COUNTERVAILING DUTY CASES
Subtitle A—Organizational, Administrative, and Procedural Provisions Regarding the Implementation of Chapter 19 of
the Agreement
SEC. 401. REFEBENCES IN SUBTITLE.

19 USC 3431.

Any reference in this subtitle to an Annex, chapter, or article
shall be considered to be a reference to the respective Annex,
chapter, or article of the Agreement.
SEC. 402. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONa
(a) CRITERIA FOR SELECTION OF INDIVIDUALS TO SERVE ON
PANELS AND COMMITTEES.—

(1) IN GENERAL.—^The selection of individuals under this
section for—

19 USC 3432.

107 STAT. 2130

PUBLIC LAW 103-182—DEC. 8, 1993
(A) placement on lists prepared b^ the interagency
groupunder subsection (cX2XB) (i) and (ii);
(B) placement on prelixoinary candidate lists under
subsection (cX3XA);
(C) placement on final candidate lists under subsection
(cX4XA);
(D) placement by the Trade Representative on the rosters described in paragraph 1 of Annex 1901.2 and paragraph 1 of Annex 1904.13; and
(E) appointment by tJie Trade Representative for service on the panels and committees convened under chapter
19;
shall be made on the basis of the criteria provided in paragraph
1 of Annex 1901.2 and paragraph 1 of Annex 1904.13 and
shall be made without regard to political affiliation.
(2) ADDITIONAL CRITERIA FOR ROSTER PLACEMENTS AND
APPOINTMENTS UNDER PARAGRAPH 1 OF ANNEX 1901.2.—RosterS

described in paragraph 1 of Annex 1901.2 shall include, to
the fullest extent practicable, judges and former judges who
meet the criteria referred to in para^aph (1). The Trade Representative shall, subject to subsection (b), appoint judges to
binational panels convened under chapter 19, extraordinary
challenge committees convened under chapter 19, and special
committees established under £urticle 1905, where such judges
offer and are available to serve and such service is authorized
by the chief judge of the court on which they sit.
(b) SELECTION OF CERTAIN JUDGES TO SERVE ON PANELS AND
COMMITTEES.—

(1) APPLICABILITY.—^This subsection applies only with
respect to the selection of individuals for oinational panels
convened under chapter 19, extraordinary challenge committees
convened under chapter 19, and special committees established
under article 1905, who are judges of courts created under
article III of the Constitution of the United States.
(2) CONSULTATION WITH CHIEF JUDGES.—The Trade Representative shall consult, from time to time, with the chief
judges of the Federal judicial circuits reganting the interest
in, and availability for, participation in binational panels,
extraordinary challenge committees, and special committees,
of judges within their respective circuits. If the chief judge
of a Federal judicial circuit determines that it is appropriate
for one or more judges within that circuit to be included on
a roster described in subsection (aXlXD), the chief judge shall
identify all such judges for the Chief Justice of the United
States who may, upon his or her approval, submit the names
of such judges to the Trade Representative. The Trade Representative shall include the names of such judges on the
roster.
(3) SUBMISSION OF USTS TO CONGRESS.—The Trade Representative shall submit to the Committee on the Judiciary
and the Committee on Ways and Means of the House of Representatives and to the Committee on Finance and the Committee on tihe Judiciary of the Senate a list of all judges included
on a roster under paragraph (2). Such Ust shiul be submitted
at the same time as tne final candidate lists are submitted
under subsection (cX4XA) and the final forms of amendments
are submitted under subsection (cX4XCXiv).

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2131

(4) APPOINTMENT OF JUDGES TO PANELS OR COMMITTEES.—

At such time as the Trade Representative proposes to appoint
a judge described in paragraph (1) to a bmational panel, an
extraordinary challenge committee, or a special committee, the
Trade Representative shall consult with that judge in order
to ascertain whether the judge is available for such appointment,
(c) SELECTION OF OTHER CANDIDATES.—

(1) APPLICABILITY.—^This subsection applies only with
respect to the selection of individuals for oinational panels
convened under chapter 19, extraordinary challenge committees
convened under chapter 19, and special committees established
imder article 1905, other than those individuals to whom subsection (b) applies.
(2) INTERAGENCY GROUP.—

(A) ESTABUSHMENT.—There is established within the
interagency organization established under section 242 of
the Trade Expansion Act of 1962 (19 U.S.C. 1872) an
interagency group which shall—
(i) be chaired by the Trade Representative; and
(ii) consist of such officers (or the designees
thereof) of the United States Government as the Trade
Representative considers appropriate.
(B) FUNCTIONS.—^The interagency group established
under subparagraph (A) shall, in a manner consistent with
chapter 1 £ ^
(i) propare by January 3 of each calendar year—
(I) a list of individuals who are qualined to
serve as members of binational panels convened
under chapter 19; and
(II) a list of individuals who are qualified to
serve on extraordinaiy challenge committees convened under chapter 19 and special committees
established under article 1905;
(ii) if the Trade Representative makes a request
under paragraph (4XCXi) with respect to a final candidate list during any calendar year, prepare by July
1 of such calendar year a list of those individuals
who are qualified to be added to that final candidate
list;
(iii) exercise oversight of the administration of the
United States Section that is authorized to be established under section 105; and
(iv) make recommendations to the Trade Representative regarding the convening of extraordinary
challenge committees and special conmiittees under
chapter 19.
(3) PRELIMINARY CANDIDATE USTS.—

(A) IN GENERAL.—The Trade Representative shall
select individuals from the respective lists prepared by
the interagency group under paragraph (2XB)(i) for placement on—
(i) a preliminary candidate list of individuals
eligible to serve as members of binational panels under
Annex 1901.2; and
(ii) a preliminary candidate list of individuals
eligible for selection as members of extraordinary chal-

69-194 O - 94 - 7 : QL. 3 Part 3

107 STAT. 2132

PUBLIC LAW 103-182—DEC. 8, 1993
lenge committees under Amiex 1904.13 and special
committees under article 1905.
(B) SUBMISSION OF USTS TO CONGRESSIONAL COMMIT-

••;

TEES.—

(i) IN GENERAL.—No later than January 3 of each
calendar year, the Trade Representative shall submit
to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives (hereafter in this section referred to as
the "appropriate Congressional Committees") the
reliminary candidate lists of those individuals selected
y the Trade Representative imder subparagraph (A)
to be candidates eligible to serve on panels or committees convened pursuant to chapter 19 during the 1year period beginning on April 1 of such calendar
year.
(ii) ADDITIONAL INFORMATION.—At the time the
candidate lists are submitted under clause (i), the
Trade Representative shall submit for each individual
on the list a statement of professional Qualifications.
(C) CONSULTATION.—Upon submission oi the preliminary candidate lists under subparagraph (B) to the appropriate Congressional Committees, the Trade Representative
shall consult with such Committees with regard to the
individuals included on the preliminary candidate lists.
(D) REVISION OF LISTS.—The Trade Representative may
add and delete individuals from the preliminary candidate
lists submitted under subpara^aph (B) after consultation
with the appropriate Congressional Committees regarding
the additions and deletions. The Trade Representative shall
provide to the appropriate Congressional Committees written notice of any addition or deletion of an individual
from the preliminary candidate lists, along with the
information described in subparagraph (BXii) with respect
to any proposed addition.

E

^

(4) FINAL CANDIDATE USTS.—
(A) SUBMISSION OF USTS TO CONGRESSIONAL COMMIT-

^

TEES.—No later than March 31 of each calendar year,
the Trade Representative shall submit to the appropriate
Congressional Committees the final candidate lists of those
individuals selected by the Trade Representative to be candidates eligible to serve on panels and committees convened
under chapter 19 during the 1-year period beginning on
April 1 of such calendar year. An individual may be
included on a final candidate list onlv if such individual
was included in the preliminary candidate list or if written
notice of the addition of such individual to the preliminary
candidate list was submitted to the appropriate Congressional Committees at least 15 days before the date on
which that final candidate list is submitted to such
Committees under this subparagraph.
(B) FINALITY OF LISTS.—^Except as provided in subparagraph (C), no additions may be made to the final canoidate
lists after the final candidate lists are submitted to the
appropriate Congressional Committees under subp£u:agraph (A).
(C) AMENDMENT OF USTS.—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2133

(i) IN GENERAL.—^If, after the Trade Representative
has submitted the final candidate lists to the appropriate Congressional Committees under subparagraph
(A) for a calendar year and before July 1 of such
calendar ;^ear, the Trade Representative determines
that additional individuals need to be added to a final
candidate list, the Trade Representative shall—
(I) request the interagency group established
under paragraph (2XA) to prepare a list of individuals who are qualified to be added to such candidate list;
(II) select individuals from the list prepared
Iw^ the interagency ^roup under paragraph
(2XBXii) to be included m a proposed amencunent
to such final candidate list; and
(III) by no later than July 1 of such calendar
year, submit to the appropriate Congressional
Committees the proposed amendments to such
final candidate hst developed by the Trade Representative under subclause (II), along with the
information described in paragraph (SXBXii)(ii) CONSULTATION WITH CONGRESSIONAL COMMIT-

TEES.—^Upon submission of a proposed amendment
under clause (iXIII) to the appropriate Congressional
Committees, the TVade Representative shaU consult
with the appropriate Congressional Committees with
regard to the individuals included in the proposed
amendment.
(iii) ADJUSTMENT OF PROPOSED AMENDMENT.—The

Trade Representative may add and delete individuals
firom any proposed amendment submitted under clause
(iXIII) alter consulting with the appropriate Congressional Committees with regard to the additions and
deletions. The Trade Representative shall provide to
the appropriate Congressional Committees written
notice of any addition or deletion of an individual firom
the proposed amendment.
(iv) FINAL AMENDMENT.—

(I) IN GENERAL.—If the Trade Representative
submits imder clause (iXIII) in any calendar year
a proposed amendment to a final candidate list,
the IVade Representative shall, no later than
September 30 of such calendar year, submit to
the appropriate Congressional Committees the
final form of such amendment. On October 1 of
such calendar year, such amendment shall take
effect and, subject to subclause (II), the individuals
included in the final form of such amendment shall
be added to the final candidate list.
(II) INCLUSION OF INDIVIDUALS.—An individual
may be included in the final form of an amendment
submitted under subclause (I) only if such individual was included in the proposed form of such
amendment or if written notice of the addition
of such individual to the proposed form of such
amendment was submitted to the appropriate
Congressional Committees at least 15 days before

107 STAT. 2134

PUBLIC LAW 103-182—DEC. 8, 1993
the date on which the final form of such amendment is submitted to such Committees under
subclause (I).
(III) EuGiBiLrry FOR SERVICE.—Individuals
added to a final candidate list under subclause
(I) shall be eUgible to serve on panels or committees convened under chapter 19 during the 6month period beginning on October 1 of the calendar year in which such addition occurs.
(IV) FINALITY OF AMENDMENT.—NO additions
may be made to the final form of an amendment
described in subclause (I) after the fined form of
such amendment is submitted to the appropriate
Congressional Committees under subclause (I).
(5) TREATMENT OF RESPONSES.—^For purposes of applying
section 1001 of title 18, United States Code, the written or
oral responses of individuals to inquiries of the interagency
group established under paragraph (2XA) or of the Trade Representative regarding their personal and professional qualifications, and financial and other relevant interests, that bear
on their suitability for the placements and appointments
described in subsection (aXl)> shall be treated as matters within
the jurisdiction of an agency of the United States,
(d) SELECTION AND APPOINTMENT.—
(1) AUTHORITY OF TRADE REPRESENTATIVE.—The Trade

Representative is the only officer of the United States Grovemment
authorized to act on behalf of the United States Government
in making any selection or appointment of an individual to—
(A) the rosters described in paragraph 1 of Annex
1901.2 and paragraph 1 of Annex 1904.13; or
(B) the panels or committees convened under chapter
19;
., that is to be made solely or jointly by the United States Government under the terms of the Agreement.
(2)

RESTRICTIONS ON SELECTION AND APPOINTMENT.—

Except as provided in paragraph (3)—
(A) the Trade Representative may—
(i) select an individual for placement on the rosters
described in paragraph 1 of Annex 1901.2 and paragraph 1 of Annex 1904.13 during the 1-year period
beginning on April 1 of any calendar year;
(ii) appoint an individual to serve as one of those
members of any panel or committee convened under
chapter 19 during such 1-year period who, under the
terms of the Agreement, are to be appointed solely
by the United States (Government; or
(iii) act to make a joint appointment with the
Grovemment of a NAFTA country, under the terms
of the Agreement, of any individual who is a citizen
or national of the United States to serve as any other
member of such a panel or committee;
only if such individual is on the appropriate final candidate
list that was submitted to the appropriate Congressional
Committees under subsection (cX4XA) during such calendar
year or on such list as it may be amended under subsection
(c)(4XC)(ivXI), or on the list submitted under subsection

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2135

01>X3) to the Congressional Committees referred to in such
subsection; and
(B) no individual may—
(i) be (selected by the United States Government
for placement on the rosters described in paragraph
1 of Annex 1901.2 and paragraph 1 of Annex 1904.13;
or
(ii) be appointed solely or jointly by the United
States Government to serve as a member of a panel
or committ(ie convened under chapter 19;
during the 1-year period beginning on April 1 of any calendar year for wldch the Trade Representative has not
met the requirements of subsection (a), and of subsection
(b) or (c) (as the case may be).
(3) EXCEPTIONS.—Notwithstanding subsection (cX3) (other
than subparagraph (B)), (cX4), or paragraph (2XA) of this subsection, individuals included on the preliminary candidate lists
submitted to the appropriate Congressional Conmiittees under
subsection (cX3XB) may—
(A) be selected by the Trade Representative for placement on the rosters described in paragraph 1 of Annex
1901.2 and paragraph 1 of Annex 1904.13 during the 3month period beginning on the date on which the Agreement enters into force with respect to the United States;
and
(B) be appointed solely or jointly by the Trade Representative under the terms of the A^:«ement to serve
as members of panels or committees that are convened
under chapter 19 during such 3-month period.
(e) TRANSITION.—^If the A^eement enters into force between
the United Stetes and a NAFTA country after January 3, 1994,
the provisions of subsection (c) shall be apphed with respect to
the OEdendar year in which such entering intororceoccurs—
(1) by substituting 'ilie date that is 30 days after the
date on which the Agreement enters into force with respect
to the United Stetes" for "January 3 of each calendar year"
in subsections (cX2XBXi) and (cX3XBXi); and
(2) by substituting *Vie date that is 3 months after the
date on which the .^n*eement enters into force with respect
to the United Stetes for '^arch 31 of each calendar year"
in subsection (cX4XA).
(f) IMMUNITY.—^With the exception of acte described in section
777(fK3) of the Tariff Act of 1930 (19 U.S.C. 1677f(0(3)), individuals
serving on panels or committees convened pursuant to chapter
19, and individuals designated to assist the individuals serving
on such panels or committees, shall be immune from suit and
legal process relating to acte performed by such individuals in
their official capacity and withm the scope of their functions as
such paneliste or committee members or assistante to such paneliste
or committee members.
(g) REGULATIONS.—^The administering authority under title VII
of the Tariff Act of 1930, the International Trade Commission,
and the Trade Representotive may promulgate such regulations
as are necessary or appropriate to carry out actions in order to
implement their respective responsibilities under chapter 19. Initial
regulations to carry out such functions shall be issued before the

107 STAT. 2136

PUBLIC LAW 103-182—DEC. 8, 1993

date on which the Agreement enters into force with respect to
the United States.
(h) REPORT TO CONGRESS.—At such time as the final candidate
lists are submitted under subsection (cX4XA) and the final forms
of amendments are submitted under subsection (cX4XCXiv), the
Trade Representative shall submit to the Committee on the
Judiciary and the Committee on Ways and Means of the House
of Representatives, and to the Committee on Finance and tlie
Committee on the Judiciary of the Senate, a report regarding the
efforts made to secure the participation of judges and former judges
on binational panels, extraordinary challenge committees, and special committees established under chapter 19.
Courts.
19 u s e 3433.

SEC. 403. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAOR'
DINARY CHALLENGES.
(a) AUTHORITY OF EXTRAORDINARY CHALLENGE COMMITTEE TO
OBTAIN INFORMATION.—If an extraordinary challenge committee

(hereafter in this section referred to as the "committee") is convened
under paragraph 13 of article 1904, and the allegations before
the committee include a matter referred to in paragraph 13(aXi)
of article 1904, for the purposes of carrying out its functions and
duties under Annex 1904.13, the committee—
(1) shall have access to, and the right to copy, any document, paper, or record pertinent to the subject matter under
consideration, in the possession of any individual, partnership,
corporation, association, organization, or other entity;
(2) may simimon witnesses, take testimony, and administer
oaths;
(3) may require any individual, partnership, corporation,
association, organization, or other entity to produce documents,
books, or records relating to the matter in question; and
(4) may require any individual, partnership, corporation,
association, organization, or other entity to furnish in writing,
in such detail and in such form as the committee may prescribe,
information in its possession pertaining to the matter.
Any member of the committee may sign subpoenas, and members
of the committee, when authorized by the committee, may administer oaths and affirmations, examine witnesses, take testimony,
and receive evidence.
(b) WITNESSES AND EVIDENCE.—The attendance of witnesses
who are authorized to be summoned, and the production of documentary evidence authorized to be ordered, under subsection (a)
may be required from any place in the United States at any designated place of hearing. In the case of disobedience to a subpoena
authorized under subsection (a), the committee may request the
Attorney General of the United States to invoke the aid of any
district or territorial court of the United States in requiring the
attendance and testimony of witnesses and the production of documentary evidence. Such court, within the jurisdiction of which
such inquiry is carried on, may, in case of contumacy or refusal
to obey a subpoena issued to any individual, partnership, corporation, association, organization, or other entity, issue an order requiring such individual or entity to appear before the committee, or
to produce dociunentary evidence if so ordered or to give evidence
concerning the matter in question. Any failure to obey such order
of the comt may be punished by such court as a contempt thereof.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2137

(c) MANDAMUS.—Any court referred to in subsection (b) shall
have jurisdiction to issue writs of mandamus commanding compliance with the provisions of this section or any order of the committee
made in pursuance thereof.
(d) DEPOSITIONS.—The committee may order testimony to be
taken by deposition at any stage of the committee review. Such
deposition may be taken before an^ person designated b^ the
committee and having ^)Ower to admmister oaths. Such testimony
shall be reduced to writing by the person taking the deposition,
or under the direction of such person, and shall then be subscribed
by the deponent. Any individual, partnership, corporation, association, organization, or other entity may be compelled to appear
and be deposed and to produce documentary evidence in the sarae
manner as witnesses may be compelled to appear and testify and
produce documentary e^adence before the committee, as provided
m this section.
SEC. 404. REQUESTS FOR REVIEW OF DETERMINATIONS BY COM- 19 USC 3434.
PETENT INVESTIGATING AUTHORITIES OF NAFTA COUNTRIES.

(a) DEFINITIONS.—As used in this section:
(1)

COMPETENir

INVESTIGATING

AUTHORITY.—The

term

"competent investigating authoritjr" means the competent investigatmg authority, as defined in article 1911, of a NAFTA
country.
(2) UNITED STATES SECRETARY.—The term "United States
Secretary" means that officer of the United States referred
to in article 1908.
(b) REQUESTS FOR REVIEW BY THE UNITED STATES.—In the

case of a final determination of a competent investigating authority,
requests by the United States for binational panel review of such
determination under article 1904 shall be made by the United
States Secretary.
(c) REQUESTS FOR REVIEW BY A PERSON.—In the case of a
final determination of a competent investigating authority, a person,
within the meaning of paragraph 5 of article 1904, may request
a binational panel review of such determination bv filing such
a request with the United States Secretary within the time limit
provided for in paragraph 4 of article 1904. The receipt of such
request by the United States Secretary shall be deemed to be
a request for binational panel review within the meaning of article
1904. The request for such panel review shall be without prejudice
to any challenge before a binational panel of the basis for a particular request for review.
(d) SERVICE OF REQUEST FOR REVIEW.—Whenever binational
panel review of a final determination made by a competent investigating authority is requested under this section, the United States
Secretary shall serve a copy of the request on all persons who
would ouierwise be entitled imder the law of the importing coimtry
to commence proceedings for judicial review of the determination.
SEC. 40S. RULES OF PROCEDURE FOR PANELS AND COMMTTTEEa
(a) RULES OF PROCEDURE FOR BINATIONAL PANELS.—The

administering authority shall prescribe rules, negotiated in accordance with paragraph 14 of article 1904, governing, with respect
to binational panel reviews—
(1) requests for such reviews, complaints, other pleadings,
and other papers;

19 USC 3435.

107 STAT. 2138

PUBLIC LAW 103-182—DEC. 8, 1993
(2) the amendment, filing, and service of such pleadings
and papers;
(3) the joinder, suspension, and termination of such
reviews; and
(4) other appropriate procedural matters.
(b) RULES OF PROCEDURE FOR EXTRAORDINARY CHALLENGE

COMMITTEES.—^The administering authority shall prescribe rules,
negotiated in accordance with paragraph 2 of Annex 1904.13,
governing the procedures for reviews by extraordinary challenge
committees.
(c) RULES OF PROCEDURE FOR SAFEGUARDING THE PANEL
REVIEW SYSTEM.—^The administering authority shall prescribe

Federal
wil^^tion

rules, negotiated in accordance with Annex 1905.6, governing the
procedures for special committees described in such Annex.
(d) PUBLICATION OF RULES.—The rules prescribed under subsections (a), (b), and (c) shall be published in the Federal Register.
(e) ADMINISTERING AUTHORITY.—As used in this section, the
term "administering authority^ h£is the meaning given such term
in section 771(1) of the Tariff Act of 1930 (19 U.S.C. 1677(1)).

19 u s e 3436.

SEC. 408. SUBSIDY NEGOTIATIONS.

In the case of any trade a^ement which may be entered
into by the President with a NAFTA country, the negotiating objectives of the United States with respect to subsidies shall incluoe—
(1) achievement of increased discipline on domestic subsidies provided by a foreign government, including—
(A) the provision of capital, loans, or loan guarantees
on terms inconsistent with commercial considerations;
(B) the provision of goods or services at preferential
rates;
(C) the granting of funds or forgiveness of debt to
cover operating losses sustained by a specific industry;
and
(D) the assiunption of any costs or expenses of manufacture, production, or distribution;
(2) achievement of increased discipline on export subsidies
provided by a foreign government, particularly with respect
to agricultiiral products; and
(3) maintenance of effective remedies against subsidized
imports, including, where appropriate, countervailing duties.
19 u s e 3487.

SEC. 407. IDENTIFICATION OF INDUSTRIES
IMPORTS.

FACING

SUBSIDIZED

(a) PETITIONS.—Any entity, including a trade association, firm,
certified or recognized union, or group of workers, that is representative of a United States industry and has reason to believe—
(1) that—
(A) as a result of implementation of provisions of the
Agreement, the industry is likely to face increased competition from subsidized imports, from a NAFTA country, with
which it directly competes; or
(B) the industry is likely to face increased competition
from subsidized imports with which it directly competes
firom any other coimtry designated by the President, following consultations with the Congress, as benefiting from
a reduction of tariffs or other trade barriers under a trade
agreement that enters into force with respect to the United
States after January 1,1994; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2139

(2) that the industry is likely to experience a deterioration
of its competitive position before more effective rules and disciplines relating to the use of government subsidies have been
developed with respect to the country concerned;
may file with the Trade Representative a petition that such industry
be identified under this section.
(b) IDENTIFICATION OF INDUSTRY.—Within 90 days afl^r receipt
of a petition under subsection (a), the Trade Representative, in
consultation with the Secretanr of Commerce, shall decide whether
to identify the industry on the basis that there is a reasonable
likelihood that the industiy may face both the subsidization
described in subsection (aXl) and the deterioration described in
subsection (aX2).
(c) ACTION AFTER IDENTIFICATION.—At the request of an entity
that is representative of an industry identified under subsection
(b), the Trade Representotive shall—
(1) compile and make available to the industry information
imder section 308 of the Trade Act of 1974;
(2) recommend to the President that an investigation by
the International Trade Commission be requested imder section
332 of the Tariff Act of 1930; or
(3) take actions described in both paragraphs (1) and (2).
The industry may request the Trade Representative to take appropriate action to update (as often as annually) any information
obtained under paragraph (1) or (2), or both, as the case may
be, imtil an agreement on more effective rules and disciplines
relating to government subsidies is reached between the United
States and the NAFTA coimtries.
(d) INITIATION OF ACJTION UNDER OTHER LAW.—

(1) IN GENERAin—The Trade Representative and the Secretary of Commerce shall review information obtained under
subsection (c) and consult with the industry identified under
subsection (b) with a view to deciding whether any action
is appropriate—
(A) under section 301 of the Trade Act of 1974, including the initiation of an investigation under section 302(c)
of that Act (in the case of tiiie Trade Representative); or
(B) under subtitle A of title VII of the Tariff Act of
1930, including the initiation of an investigation under
section 702(a) of that Act (in the case of tne Secretary
of Commerce).
(2) CRITERIA FOR INITIATION.—In determining whether to
initiate any investigation under section 301 of the Trade Act
of 1974 or any other trade law, other than title VII of the
Tariff Act of 1930, the Trade Representative, after consultation
with the Secretary of Commerce—
(A) shall S€iek the advice of the advisory committees
established under section 135 of the Trade Act of 1974;
(B) shall consult with the Committee on Finance of
the Senate and the Committee on Ways and Means of
the House of Representatives;
(C) shall coordinate with the interagency organization
estabhshed under section 242 of the Trade Expansion Act
of 1962; and
(D) may ask the President to request advice from the
International Trade Conunission.

107 STAT. 2140

PUBLIC LAW 103-182—DEC. 8, 1993

(3) TITLE in ACTIONS.—^In the event an investigation is
initiated under section 302(c) of the Trade Act of 1974 as
a result of a review under this subsection and the Trade Representative, following such investigation (including any
applicable dispute settlement proceedings under the Agreement
or any other trade agreement), determines to take action under
section 301(a) of such Act, the Trade Representative shall give
'
preference to actions that most directly affect the products
that benefit from governmental subsidies and were the subject
of the investigation, unless there are no significant imports
of such products or the Trade Representative otherwise determines that application of the action to other products would
be more effective.
(e) EFFECT OF DECISIONS.—Any decision, whether positive or
negative, or any action by the Trade Representative or the Secretary
of Commerce under this section shall not in any way—
(1) prejudice the right of any industry to file a petition
under any trade law;
(2) prejudice, affect, or substitute for, any proceeding, investigation, determination, or action by the Secretary of Conunerce,
the International Trade Commission, or the Trade Representative pursuant to such a petition, or
(3) prejudice, affect, substitute for, or obviate any proceeding, investigation, or determination under section 301 of the
Trade Act of 1974, title VII of the Tariff Act of 1930, or
any other trade law.
(f) STANDING.—^Nothing in this section may be construed to
alter in any manner the requirements in effect before the date
of the enactment of this Act for standing under any law of the
United States or to add any additional requirements for standing
under any law of the United States.
19 USE 3438.

SEC. 406. TREATMENT OF AMENDMENTS TO ANTIDUMPING AND
COUNTERVAILING DUTY LAW.

Any amendment enacted after the Agreement enters into force
with respect to the United States that is made to—
(1) section 303 or title VII of the Tariff Act of 1930, or
any successor statute, or
(2) anv other statute which—
(A) provides for judicial review of final determinations
imder such section, title, or successor statute, or
(B) indicates the standard of review to be applied,
shall apply to goods from a NAFTA country only to the extent
specified in the amendment.

Subtitle B—Conforming Amendments and
Provisions
SEC. 411. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTER*
VAILING DUTY CASES.

Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is
amended as follows:
(1) Subsection (aX5) (relating to time limits for commencing
review) is amended to read as follows:
"(5) TIME UMITS IN CASES INVOLVING MERCHANDISE FROM

FREE TRADE AREA COUNTRIES.—^Notwithstanding any other

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2141

provision of this subsection, in the case of a determination
to which the provisions of subsection (g) apply, an action under
this subsection may not be conmienced, and the time limits
for commencing an action under this subsection shall not begin
to run, until the day specified in whichever of the following
subparagraphs appUes:
"(A) For a determination described in paragraph (IXB) Federal
Register,
or clause (i), (ii) or (iii) of paragraph (2XB), me 31st day publication.
after the date on which notice of the determination is
published in the Federal Re^ster.
"(B) For a determination described in clause (vi) of
paragraph (2>(B), the 31st day after the date on which
the government of the relevant FTA country receives notice
of the determination.
"(C) For a determination with respect to which
binational panel review has commenced in accordance with
subsection (gX8), the day after the date as of which—
"(i) the binational panel has dismissed binational
panel review of the determination for lack of jurisdiction, and
"(ii) any interested party seeking review of the
determination under paragraph (1), (2), or (3) of this
subsection has provided timely notice under subsection
(gX3XB).
If such an interested party files a sxunmons and complaint
imder this subsection after dismissal by the binational
panel, and if a request for an extraordinary challenge
committee is made with respect to the decision by the
binational panel to dismiss—
"(1) iudicial review under this subsection shall be
stayed during consideration by the committee of the
request, and
"(II) the United States Court of International
Trade shall dismiss the action if the committee vacates
or remands the binational panel decision to dismiss.
"(D) For a determination for which review by the Federal
United States Court of International Trade is provided Register,
publication.
for—
"(i) under subsection (gX12XB), the day after the
date of publication in the Federal Register of notice
that article 1904 of the NAFTA has been suspended,
or
"(ii) under subsection (gX12XD), the day after the
date that notice of settlement is published in the Federal Register.".
(2) Subsection (bX3) (relating to the standards of review)
is amended—
(A) by inserting "NAFTA OR" after "DECISIONS BY" in
the heading; and
(B) by inserting "of the NAFTA or" after "article 1904".
(3) Subsection (f) (relating to definitions) is amended—
(A) by amending paragraphs (6) and (7) to read as
follows:
"(6) UNITED STATES SECRETARY.—The term ^United States
Secretary* means—
"(A) the secretary for the United States Section referred
to in article 1908 of the NAFTA, and

107 STAT. 2142

PUBLIC LAW 103-182—DEC. 8, 1993
"(B) the secretary of the United States Section provided
for in article 1909 of the Agreement.
"(7) RELEVANT FTA SECRETARY.—The term 'relevant FTA
Secretary* means the Secretary—
"(A) referred to in article 1908 of the NAFTA, or
"(B) provided for in paragraph 5 of article 1909 of
the Agreement,
of the relevant FTA country.*; and
(B) by adding at the end the following new paragraphs:
"(8) NAFTA—The term 'NAFTA' means the North American Free Trade Agreement.
"(9) RELEVANT FTA COUNTRY.—The term 'relevant FTA
countrsr* means the free trade area country to which an antidimiping or countervailing duty proceeding pertains.
"(10) FREE TRADE AREA COUNTRY.—The term 'free trade
area country* means the following:
"(A) Canada for such time as the NAFTA is in force
with respect to, and the United States applies the NAFTA
to, Canada.
"(B) Mexico for such time as the NAFTA is in force
with respect to, and the United States applies the NAFTA
to, Mexico.
"(C) Canada for such time as—
"(i) it is not a free trade area coimtry under
subparagraph (A); and
"(ii) the Agreement is in force with respect to,
and Uie United States applies the Agreement to, Canada.".
(4) Subsection (g) (relating to review of coimtervailing and
antidumping duty determinations) is amended as follows:
(A) The subsection heading is amended by striking
out "CANADIAN MERCHANDISE" and inserting "FREE TRADE
AREA COUNTRY MERCHANDISE".

(B) Paragraph (1) is amended by striking out
"Canadian merchandise" and inserting "free trade area
country merchandise".
(C) Paragraph (2) is amended by inserting "of the
NAFTA or" after "article 1904".
(D) Paragraph (3XA) is amended—
(i) by striking out "nor Canada" and inserting "nor
the relevant FTA country" in each of clauses (i) and
(ii);
(ii) by inserting "of the NAFTA or" before "of the
Agreement" in each of clauses (i) and (iii);
(iii) by striking out "or" at the end of clause (iii);
(iv) by amending clause (iv)—
(I) by striking out "under paragraph (2XA)";
••} .

T
I .

and

(II) by striking out the period and inserting
a comma; and
(v) by adding at the end of subparagraph (A) the
following:
"(v) a determination as to which binational panel
review has terminated pursuant to paragraph 12 of
article 1905 of the NAFTA, or

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2143

'^vi) a determination as to which extraordinary
challenge committee review has terminated pursuant
to paragraph 12 of article 1905 of the NAFTA .
(E) The first and second sentences of paragraph (3XB)
are amended to read as follows: "A determination described
in subparagraph (AXi) or (iv) is reviewable under subsection
(a) onl^ if the party seeking to commence review has i>rovided timely notice of its intent to commence such review
to—
"(i) the United States Secretary and the relevant
FTA Secretary;
"(ii) all interested parties who were parties to the
proceeding in connection with which the matter arises;
and
"(iii) the administering authority or the Commission, as appropriate.
Such notice is timely provided if the notice is delivered
no later than the date that is 20 days after the date
described in subparagraph (A) or (B) of subsection (aX5)
that is applicable to such determination, except that, if
the time tor n^questing binational panel review is suspended under paragraph (SXAXii) of this subsection, any
imexpired time for providing notice of intent to commence
judicial review shaul, during the pendency of any such
suspension, also be suspended.".
(F) Paragraph (4XA) is amended—
(i) in the first sentence—
(I) by inserting ''the North American Free
Trade A^*eement Implementation Act implementing the binational dis^te settlement system under
chapter 19 of the NAFTA, or" after "or amendment
made by,";
(II) by inserting a comma before "violates";
(III) by inserting "only" after "may be
brought"; and
(IV) bv inserting ", which shall have jiuisdiction of such action" after "Circuit"; and
(ii) by striking the last sentence.
(G) Paragraph (5) is amended—
(i) by inserting "of the NAFTA or" after "article
1904" in each of subparagraphs (A), (B), and (CXi);
(ii) by striking out ", the Canadian Secretaiy,"
in subparagraph (CXii) and inserting ", the relevant
FTA Secretary,"; and
(iii) by inserting "of the NAFTA or" after "chapter
19" in subparagraph (CXiii).
(H) Paragraph (6) is amended by inserting "of the
NAFTA or" after ''article 1904".
(I) Paragraph (7) is amended—
(i) by inserting "OF THE NAFTA OR THE AGREEMENT"
before the period in the paragraph heading;
(ii) by striking out "IN GENERAL.—" in the heading
to subparagraph (A) and inserting "AcnoN UPON
REMAND.—"; and

(iii) by inserting "the NAFTA or" before "the Agreement" in subparagraph (A).
(J) Paragraph (8)(A) is amended—

107 STAT. 2144

PUBLIC LAW 103-182—DEC. 8, 1993
(i) by inserting. '\i) GENERAL RULE.—" before "An
(ii) by inserting "of the NAFTA or^ after "article
1904(4r;
(iii) by indenting the text so as to align it with
new clause (ii) (as added by clause (iv) of this subparagraph); and
(iv) W adding at the end the following new clause:
"(ii) SUSPENSION OF TIME TO REQUEST BINATIONAL

PANEL REVIEW UNDER THE NAFTA.—Notwithstanding
clause (i), the time for requesting binational panel
review shall be suspended during the pendency of any
stay of binational panel review that is issued pursuant
to paragraph 11(a) of article 1905 of the NAFTA".
(K) Paragraph (SXBXii) is amended by striking out
"Canadian Secretaxy,** and inserting "relevant FTA Secretary,".
(L) Paragraph (8XC) is amended by striking out "under
article 1904 of the Agreement of a determination" and
inserting "of a determination under article 1904 of the
NAFTA or the Agreement".
(M) Paragraph (9) is amended by inserting "of the
NAFTA or" after'chapter 19".
(N) Paragraph (10) is amended by striking out "Government of Canada and all that follows thereafter and inserting "Government of the relevant FTA country received
notice of the determination under paragraph 4 of article
1904 of the NAFTA or the Agreement.".
(O) The following new paragraphs are added at the
end:
"(11)

SUSPENSION AND TERMINATION OF SUSPENSION OF

ARTICLE 1904 O F THE N A F T A . —

"(A) SUSPENSION OF ARTICLE 1904.—If a Special committee established under article 1905 of the NAFTA issues
an afi&rmative finding, the Trade Representative may, in
accordance with para^aph 8(a) or 9, as appropriate, of
article 1905 of the NAFTA, suspend the operation of article
1904 of the NAFTA
"(B) TERMINATION OF SUSPENSION OF ARTICLE I904.—

If a special committee is reconvened and makes an affirmative determination described in paragraph 10(b) of article
1905 of the NAFTA, any suspension of the operation of
article 1904 of the NAFTA shall terminate.
Federal
^SiStion

P

^ ^ ^-

"(12) JUDICIAL REVIEW UPON TERMINATION OF BINATIONAL
PANEL OR COMMITTEE REVIEW UNDER THE NAFTA.—
"(A) NOTICE OF SUSPENSION OR TERMINATION OF
SUSPENSION OF ARTICLE 1904.—

««(i) Upon notification by the Trade Representative
or the Government of a country described in subsection
(fXlO) (A) or (B) that the operation of article 1904
of the NAFTA has been suspended in accordance with
para^aph 8(a) or 9 of article 1905 of the NAFTA,
the United States Secretary shall publish in the Federal Register a notice of suspension of article 1904
of the NAFTA
"(ii) Upon notification by the Trade Representative
or the (jk)vemment of a country described in subsection

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2145

(fXlO) (A) or (B) that the suspension of the operation
of article 1£K)4 of the NAFTA is terminated in accordance with paragraph 10 of article 1906 of the NAFTA,
the United States Secretary shall publish in the Federal Register a notice of termination of suspension
of article 1904 of the NAFTA
"(B) TRANSFER OF FINAL DETERMINATIONS FOR JUDICIAL

REVIEW UPON SUSPENSION OF ARTICLE 1904.—If the operation of article 1904 of the NAFTA is suspended in accordance with paragraph 8(a) or 9 of article 1905 of the
NAFTA—
"(i) upm the request of an authorized person
described m subparagraph (C), any final determination
that is the subject of a binational panel review or
an extraordinary chedlenge committee review shall be
transferred to the United States Court of International
Trade (in accordance with rules issued by the Court)
for review under subsection (a); or
"(ii) in a case in which—
"(I) a binational panel review was completed
fewer than 30 days before the suspension, and
"(11) extraordinary challenge committee review
has not been requested,
upon the request of an authorized person described
in subparagraph (C) which is made within 60 days
after the osmpletion of the binational panel review,
the final determination that was the subject of the
binational panel review shall be transferred to the
United States Court of International Trade (in accordance with rules issued by the Court) for review under
subsection (a).
"(C) PERSONS AUTHORIZED TO REQUEST TRANSFER OF
FINAL DETERMINATIONS FOR JUDICIAL REVIEW.—A request

that a final determination be transferred to the Court
of International Trade under subparagraph (B) may be
made by—
"(i) if the United States made an allegation under
paragraph 1 of article 1905 of the NAFTA and the
operation of article 1904 of Uie NAFTA was suspended
pursuant to paragraph 8(a) of article 1905 of the
NAFTA—
"(I) the government of the relevant country
described in subsection (fKlO) (A) or (B),
"(11) an interested party that was a party to
the panel or committee review, or
"(III) an interested party that was a party
to the proceeding in connection with which panel
review was requested, but only if the time period
for filing notices of appearance in the panel review
has not expired, or
"(ii) if a country described in subsection (fXlO)
(A) or (B) made an allegation under paragraph 1 of
article 1905 of the NAFTA and the operation of article
1904 of the NAFTA was suspended pursuant to paragraph 9 of article 1905 of the NAFTA—
"(I) the government of that country,

107 STAT. 2146

PUBLIC LAW 103-182—DEC. 8, 1993
"(11) an interested party that is a person of
that country and that was a party to the panel
or committee review, or
"(III) an interested party that is a person of
that country and that was a party to the proceeding in connection with whic»i panel review was
requested, but only if the time period for filing
notices of appearance in the panel review has not
expired.
"(DXi) TRANSFER FOR JUDICIAL REVIEW UPON SETTLEMENT.—^If the Trade Representative achieves a settlement
with the government of a country described in subsection
(fKlO) (A) or (B) pursuant to paragraph 7 of article 1905
of the NAFTA, and referral for judicial review is among
the terms of such settlement, any final determination that
is the subject of a binational panel review or an extraordinary challenge committee review shall, upon a request
described in clause (ii), be transferred to the United States
Court of International Trade (in accordance with rules
issued by the Court) for review under subsection (a).
"(ii) A request referred to in clause (i) is a request
made by—
"(I) the country referred to in clause (i),
"(II) an interested party that was a party to the
panel or committee review, or
"(III) an interested party that was a party to the
proceeding in connection with which panel review was
requested, but only if the time for filing notices of
appearance in the panel review has not expired.".

SEC. 412. CONFORMING ABfENDMENTS TO OTHER PROVISIONS OF
THE TARIFF ACT OF IftSO.
(a) REGULATIONS FOR APPRAISEMENT AND CLASSIFICATION;
FINALITY AND DECISION.—Sections 502(b) and 514(b) of the Tariff

Act of 1930 (19 U.S.C. 1502(b) and 1514(b)) are each amended
by inserting "the North American Free Trade Agreement or" before
"the United States-Canada Free-Trade Agreement".
(b) DEFINITION.—Section 771 of the Tariff Act of 1930

(19

U.S.C. 1677) is amended—
(1) by redesignating as paragraph (21) (and placing in
numerical sequence) the second paragraph that is designated
as paragraph (18) (relating to the demiition of the United
States-Canada Agreement) in such section; and
(2) by inserting after paragraph (21) (as redesignated by
paragrapn (1) of this subsection) the following new paragraph:
^(22) NAFTA.—The term 'NAFTA' means the North American Free Trade Agreement.".
(c) DISCLOSURE OF PROPRIETARY INFORMATION IN TITLE VII

PROCEEDINGS.—Section 777(0 of the Tariff Act of 1930 (19 U.S.C.
1677f(f)) is amended—
(1) by inserting "THE NORTH AMERICAN FREE TRADE AGREEMENT OR" before "THE UNITED STATES-CANADA AGREEMENT"
in the heading;
(2) by inserting "the NAFTA or" before "the United StatesCanada Agreement" each place it appears in paragraph (IXA);
(3) in the second sentence of paragraph (1)(A)—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2147

(A) by inserting "or extraordinary challenge committee"
after 'Ibinational panel"; and
(B) by insertmg ''or committee" afl«r 'i^he panel";
(4) in paragraph (IXB)—
(A) by inserting "the NAFTA or" before "the Agreement" in clauses (iii) and (iv); and
(B) by striking out "Government of Canada designated
by an authorized agency of Canada" in clause (iv) and
inserting "Government of a free trade area country (as
defined m section 516A(fX10)) designated by an authorized
agency of such coimtry";
(5) in paragraph (2) by inserting ", including any extraordinary challenge," after "binational panel proceeding";
(6) in paragraph (3)—
(A) by inserting "or extraordinary challenge committee"
aft«r "binational panel", and
(B) by inserting "the NAFTA or" before "the United
States-Canada .Agreement";
(7) by striking out "agency of Canada" in each of paragraphs (3) and (4) and inserting "agency of a free trade area
country (as defined in section 516A(fK10))"; and
(8) in the first sentence of paragraph (4) by inserting ",
except a judge appointed to a binational panel or an extraordinary challenge committee under section 402(b) of the North
American Free Trade Agreement Implementation Act," after
"Any person".
SEC. 413. CONSEQUENTIAL AMENDMENT TO FREE-TRADE AGREEMENT ACT OF 1»88.

Section 41(Ka) of thie United States-Canada Free-Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is amended
by adding at the end the following new sentence: "In calculating
the 7-year period referred to in paragraph (1), any time during
which Canada is a NAFTA coimtry (as defined in section 2(4)
of the North American Free Trade Agreement Implementation Act)
shall be disregarded.".
SEC. 414. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES
CODE.
(a) COURT OF INTEIRNATIONAL TRADE.—Chapter 95 of title 28,

United States Code, is amended—
(1) in section 1581(i) bv inserting "the North American
Free Trade Agreement or" before "the United States-Canada
Free-Trade Agreement";
(2) in section 1584—
(A) by amending the section heading to read as follows:
**§ 1584. Civil actions under the North American Free Trade
Agreement or the United States-Canada FreeTrade Agreement"; and
(B) by strildng out "777(d)" and inserting "777(f)"; and
(3) in the table of contents for such chapter by amending
the entry for section 1584 to read as follows:
"1584. Civil actions under the North American Free Trade Agreement or the United
States-Canada Free-Trade Agreement.".
(b) PARTICULAR PROCEEDINGS.—Sections 2201(a) and 2643(cX5)

of title 28, United States Code, are each amended by striking

107 STAT. 2148

PUBLIC LAW 103-182—DEC. 8, 1993

out "Canadian merchandise," and inserting "merchandise of a free
trade area country (as defined in section 516A(fX10) of the Tariff
Act of 1930),".
19 u s e 3451.

SEC. 415. EFFECT OF TERMINATION OF NAFTA COUNTRY STATUa

(a) IN GENERAL.—^Except as provided in subsection 0>), on the
date on which a country ceases to be a NAFTA coimtry, the provisions of this title (other than this section) and the amendments
made by this title shall cease to have effect with respect to that
coimtry.
(b) TRANSITION PROVISIONS.—
(1) PROCEEDINGS REGARDING PROTECTIVE ORDERS AND

UNDERTAKINGS.—^If on the date on which a country ceases to
be a NAFTA coimtry an investigation or enforcement proceeding
concerning the violation of a protective order issued under
section 777(f) of the Tariff Act of 1930 (as amended by this
subtitle) or an undertaking of the (jovemment of that country
is pending, the investigation or proceeding shall continue, and
sanctions may continue to be imposed, in accordance with the
provisions of such section 777(f).
(2) BINATIONAL PANEL AND EXTRAORDINARY CHALLENGE

COMMITTEE REVIEWS.—If on the date on which a country ceases
to be a NAFTA country—
(A) a binational panel review under article 1904 of
the Agreement is pending, or has been requested; or
:. ?
(B) an extraordinary challenge committee review under
article 1904 of the Agreement is pending, or has been
requested;
with respect to a determination which involves a class or kind
of merchandise and to which section 516A(gX2) of the Tariff
Act of 1930 applies, such determination shall be reviewable
under section 516A(a) of the Tariff Act of 1930. In the case
of a determination to which the provisions of this paragraph
apply, the time limits for commencing an action under 516A(a)
of the Tariff Act of 1930 shall not begin to run until the
date on which the Agreement ceases to be in force with respect
to that country.
19 u s e 3431

SEC. 416. EFFECTIVE DATE.

The provisions of this title and the amendments made by this
title take effect on the date the Agreement enters into force with
respect to the United States, but shall not apply—
(1) to any final determination described in paragraph (IXB),
or (2XB) (i), (ii), or (iii), of section 516A(a) of the Tariff Act
of 1930 notice of which is published in the Federal Register
before such date, or to a determination described in paragraph
(2XBXvi) of section 516A(a) of such Act notice of which is
received by the Government of Canada or Mexico before such
date; or
(2) to any binational panel review under the United StatesCanada Free-Trade Agreement, or any extraordinary challenge
arising out of any such review, that was commenced before
such date.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2149

TITLE V—NAITA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER
PROVISIONS
Subtitle A—NAFTA Transitional
Adjustment Assistance Program
SEC. 501. SHORT TITLE.

NAFTA Worker
Security Act.

19 USC 2101

This subtitle may be cited as the **NAFTA Worker Security
Act".
SEC. 502. ESTABUSHMENT OF NAFTA TRANSITIONAL ADJUSTMENT
ASSISTANCE PROGRAM.

Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C.
2271 et seq.) is amended by adding at the end the following new
subchapter:
''Subchapter D—^NAFTA Transitional A4iustment Assistance
Program
'^EC. 250. ESTABUSHMENT OF TRANSITIONAL PROGRAM.
"(a) GROUP ELIGIBILITY REQUIREMENTS.—
"(1) CRITERIA.—A group of workers (including

workers in
any agricultural fiim or subdivision of an agricultural firm)
shall be certified as eligible to apply for adjustment assistance
under this subchapter pursuant to a petition filed under subsection (b) if the Secretary determines mat a significant number
or proportion of Uie workers in such workers' nrm or an appropriate subdivision of the firm have become totally or partially
separated, or are threatened to become totally or partially
separated, and either—
"(A) that—
"(i) the sales or production, or both, of such firm
or subdivision have decreased absolutely,
"(ii) imports from Mexico or Canada of articles
like or dircictly competitive with articles produced by
such firm or subdivision have increased, and
"(iii) the increase in imports under clause (ii)
contributed importantly to such workers' separation
or threat of separation and to the decline in tne sales
or production of such firm or subdivision; or
"(B) that there has been a shift in production by such
workers' firm or subdivision to Mexico or Canada of articles
like or directly competitive with articles which are produced
by the firm or subdivision.
"(2) DEFiNrnoN OF CONTRIBUTED IMPORTANTLY.—^The term
'contributed importantly*, as used in paragraph (IXAXiii),
means a cause which is important but not necess£urily more
important Uian any other cause.
"(3) REGULATIONS.—^The Secretary shall issue regulations
relating to the application of the criteria described in paragraph
(1) in making preliminary findings under subsection (b) and
determinations under subsection (c).
"(b) PRELIMINARY FINDINGS AND BASIC ASSISTANCE.—

19 USC 2331.

107 STAT. 2150

':

PUBLIC LAW 103-182—DEC. 8, 1993
"(1) FILING OF PETITIONS.—A petition for certification of
eligibility to applv for adjustment assistance under this subchapter may be filed by a group of workers (including workers
in any agrictdtural firm or suboivision of an agricultural firm)
or by their certified or recognized union or other duly autiiorized
representative with the (^vemor of the State in which such
workers'firmor subdivision thereof is located.
"(2) FINDINGS AND ASSISTANCE.—Upon receipt of a petition
imder paragraph (1), the Governor shall—
"(A) notify the Secretary that the Governor has
received the i)etition;
**(B) within 10 days afl«r receiving the petition—
"(i) make a preliminanr finding as to whether the
petition meets the criteria described in subsection (aXD
(and for purposes of this clause the criteria described
under subparagraph (AXiii) of such subsection shall
be disregarded), and
"(ii) transmit the petition, together with a statement of the finding under clause (i) and reasons therefor, to the Secretary for action under subsection (c);
>.?
and
"(C) if t h e preliminary finding under subparagraph
(BXi) i s affirmative, ensure that rapid response and basic
readjustment services authorized under other Federal law
are made available to the workers.
"(c) REVIEW O F PETITIONS B Y SECRETARY; CERTIFICATIONS.—

*(1) I N GENERAL.—The Secretaiy, within 3 0 days afl»r
receiving a petition luider subsection (b), shall determine
whether the petition meets the criteria described i n subsection
(aXl). Upon a determination that the petition meets such criteria, t h e Secretary shall issue to workers covered by the petition a certification of eligibility to apply for assistance described
in subsection (d).
"(2) D E N I A L OF CERTIFICATION.—Upon denial of certification
with respect to a petition imder paragraph (1), t h e Secretary
shall review t h e petition i n accordance with t h e requirements
of subchapter A to determine if the workers m a y b e certified
under such subchapter.
"(d) COMPREHENSIVE ASSISTANCE.—Workers covered by certification issued by the Secretary under subsection (c) shall be provided, in t h e same manner and to t h e same extent a s workers
covered under a certification under subchapter A, t h e following:
"(1) Employment services described in section 235.
"(2) Training described in section 236, except that notwithstanding the provisions of section 236(aX2XA), tne total amount
of payments for training under this subchapter for a n y fiscal
year shall not exceed $30,000,000.
"(3) Trade r e a ^ u s t m e n t allowances described in sections
231 through 234, except that—
'^(A) t h e provisions of sections 231(aX5XC) and 231(c),
'i ..
authorizing uie payment of trade readjustment allowances
upon a finding that it is not feasible or appropriate to
approve a training program for a worker, snail not be
applicable to pa3rment of such allow£inces under this subchapter; and
"(B) notwithstanding t h e provisions of section 233(b),
in order for a worker to qualify for trade readjustment

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2151

allowances under this subchapter, the worker shall be
enrolled in a training program approved by the Secretary
under section 236(a) by the later of—
"(i) the last day of the 16th week of such worker's
initial unemployment compensation benefit period, or
'Xii) the last day of the 6th week after the week
in which the Secretary issues a certification covering
such worker.
In cases of extenuating circumstances relating to enrollment
in a training program, the Secretary may extend the time
for enrollmentrora period not to exceed 30 days.
"(4) Job search allowances described in section 237.
"(5) Relocation allowances described in section 238.
"(e) ADMINISTRATION.—^The provisions of subchapter C shall
apply to the administration of the program under this subchapter
in the same manner and to the same extent as such provisions
apply to the administration of the program under subchapters A
and B, except tiiat the agreement between the Secretarv and the
States described in section 239 shall specify the procedures that
will be used to carry out the certification process under subsection
(c) and the procedures for providing relevant data by the Secretary
to assist the States in making preliminaryfindingsunder subsection
(b).".
SEC. 503. CONFORMING AMENDMENTS.

(a) REFERENCES.—Sections 221(a), 222(a), and 223(a) of the
Trade Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) are
each amended by striking out "assistance under this chaptei^ and
inserting "assistance under this subchapter".
(b) BENEFIT INFORMATION.—Section 225(b) of the Trade Act
of 1974 (19 U.S.C. 2275(b)) is amended by inserting "or subchapter
D" after "subchapter A" esich place it appears.
(c) NONDUPUCATION OF ASSISTANCE.—Subchapter C of chapter
2 of title n of the Trade Act of 1974 is amended by adding at
the end the following new section:
'^EC. 249A. NONDUPUCATION OF ASSISTANCE.

"No worker may receive assistance relating to a separation
pursuant to certifications under both subchapters A and D of this
chapter.**.
(d) JUDICIAL REVIEW.—Section 284(a) of the Trade Act of 1974
(19 U.S.C. 2395(a)) is amended by inserting "or section 250(c)'*
afi^r "section 223**.
(e) TABLE OF CONTENTS.—The table of contents for chapter
2 of title II of the Trade Act of 1974 is amended—
(1) by inserting afi«r the item relating to section 249 the
following new item:
"Sec. 249A. Nonduplication of assistance.";

and
(2) by adding at the end thereof the following new items:
"SUBCHAPTER D—NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM

"Sec. 250. Establishment of transitional program.".
SEC. 604. AUTHORIZATION OF APPROPRIATIONa

Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is
amended—

19 USC 2322.

107 STAT. 2152

PUBLIC LAW 103-182—DEC. 8, 1993

(1) by striking "There" and inserting "(a) IN GENERAL.—
There",
(2) by inserting ", other than subchapter D" after "chapter",
and
(3) by adding at the end the following new subsection:
"(b) SUBCHAPTER D.—^There are authorized to be appropriated
to the Department of Labor, for each of fiscal years 1994, 1995,
1996, 1997, and 1998, such sums as may be necessary to carry
out the purposes of subchapter D of this chapter.".
SEC. 806. TERMINATION OF TRANSITION PROGRAM.

Subsection (c) of section 285 of the Trade Act of 1974 (19
U.S.C. 2271 preceding note) is amended—
(1) by striking "No" and inserting "(1) Except as provided
in paragraph (2), no"; and
(2) by adding at the end the following new paragraph:
"(2XA) Except as provided in subparagraph (B), no assistance,
vouchers, allowances, or other payments may be provided under
subchapter D of chapter 2 after me day that is the earlier of-—
"(i) September 30,1998, or
"(ii) tiie date on which legislation, establishing a program
providing dislocated workers with comprehensive assistance
substantially similar to the assistance provided by such subchapter D, becomes effective.
"(B) Notwithstanding subparagraph (A), if, on or before the
day described in subparagraph (A), a worker—
"(i) is certified as eligible to apply for assistance, under
subchapter D of chapter 2: and
"(ii) is otherwise eligible to receive assistance in accordance
with section 250,
such worker shall continue to be eligible to receive such assistance
for anv week for which the worker meets the eligibility requirements
of such section.".
19 u s e 2331

SEC. 506. EFFECTIVE DATE.

(a) IN GENERAL.—^The amendments made by sections 501, 502,
503, 504, and 505 shall take effect on the date the Agreement
enters into force with respect to the United States.
(b) COVERED WORKERS.—
(1) GENERAL RULE.—^Except as provided in paragraph (2),

no worker shall be certified as eligible to receive assistance
under subchapter D of chapter 2 of title II of the Trade Act
of 1974 (as added 1^ this subtitle) whose last total or partial
separation from a firm (or appropriate subdivision of a firm)
occurred before such date of entry into force.
(2) REACHBACK.—^Notwithstanding paragraph (1), any
worker—
(A) whose last total or partial separation from a firm
(or appropriate subdivision of afirm)occurs—
(i) after the date of the enactment of this Act,
and
(ii) before such date of entry into force, and
(B) who would otherwise be eligible to receive assistance under subchapter D of chapter 2 of title II of the
Trade Act of 1974,
shall be eligible to receive such assistance in the same manner
as if such separation occurred on or after such date of entry
into force.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2153

SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PROGRABIS.
(a) GENERAL RULE.—Section 3306 of the Internal Revenue Code

of 1986 is amended by adding at the end the following new sub- 26 use 3306.
section:
**(t) SELF-EMPLOYMENT ASSISTANCE PROGRAM.—For the purposes of this chapter, the term 'self-employment assistance program'
means a program under which—
(1) individuals who meet the requirements described in
paragraph (3) are eligible to receive an allowance in lieu of
regular imemployment compensation under the State law for
the purpose of assisting such individuals in establishing a
business and becoming self-employed;
"(2) the allowance payable to individuals pursuant to paragraph (1) is payable in the same amoimt, at the same interval,
on the same terms, and subject to the same conditions, as
regular imemplo3rment compensation under the State law,
except that—
"(A) State requirements relating to availability for
work, active search for work, and reniscd to accept work
are not applicable to such individuals;
"(B) State requirements relating to disqualifying
income are not applicable to income earned from selfemployment by such individuals; and
"(C) such individuals are considered to be unemployed
for the purposes of Federal and State laws applicable to
unemployment compensation,
as long as such individuals meet the requirements applicable
imder this subsection;
"(3) individuals ma^ receive the allowance described in
paragraph (1) if such individuals—
"(A) are eligible to receive regular unemployment compensation under the State law, or would be eligible to
receive such compensation except for the requirements
described in subparagraph (A) or (B) of paragraph (2);
"(B) are identified pursuant to a State worker profiling
system as individuals likely to exhaust regular unemployment compensation; and
"(C) are participating in self-employment assistance
activities which—
"(i) include entrepreneurial training, business
counseling, and technical assistcuice; and
"(ii) are approved by the State agency; and
"(D) are actively engaged on a fiill-time basis in activities (which may include training) relating to the establishment of a business and becoming self-employed;
"(4) the aggregate number of individuals receiving the
allowance under the program does not at any time exceed
5 percent of the number of individuals receiving regular
unemployment compensation under the State law at such time;
"(5) the program does not result in any cost to the
Unemployment TYust Fund (established by section 904(a) of
the Social Security Act) in excess of the cost that would be
incurred by such State and charged to such Fund if the State
had not participated iin such program; and
"(6) the program meets such other requirements as the
Secretary of Labor determines to be appropriate.".

107 STAT. 2154
26 use 3304.

26 use 3306.

26 use 3306
^°^-

26 use 3306
note.

26 use 3306
"°*®-

PUBLIC LAW 103-182—DEC. 8, 1993
(b) CONFORMING AMENDMENTS.—

(1) Section 3304(aX4) of such Code is amended—
(A) in subparagraph (D), by striking "; and" and inserting a semicolon;
(B) in subparagraph (E), by striking the semicolon
and inserting "; and , and
(C) by adding at the end the folloMong new subparagraph:
"(F) amounts may be withdrawn for the payment of
allowances under a self-employment assistance program
(as defined in section 3306(t));''.
(2) Section 3306(f) of such Code is amended—
(A) in paragraph (3), by striking "; and" and inserting
a semicolon;
(B) in paragraph (4), by striking the period and inserting **; and"; and
(C) by adding at the end the following new paragraph:
"(5) amounts may be withdrawn for the payment of allowances under a self-employment assistance program (as defined
in subsection (t)).".
(3) Section 303(aX5) of the Social Security Act (42 U.S.C.
503(aX5)) is amended by striking "; and" and inserting ": Provided further, That amoimts mav oe withdrawn for the pajrment
of allowances under a self-employment assistance program (as
defined in section 3306(t) of the Internal Revenue Code of
1986); and".
(c) STATE REPORTS.—Any State operating a self-employment
program authorized by the Secretary of Labor under this section
shall report annually to the Secretary on the number of individuals
who participate in the self-employment assistance program, the
number of individuals who are able to develop and sustain
businesses, the operating costs of the program, compliance with
program requirements, and any other r^evant aspects of program
operations requested by the Secretary.
(d) REPORT TO CONGRESS.—Not later than 4 years after the
^ ^ Qf ^Q enactment of this Act, the Secretary of Labor shall
submit a report to the Congress with respect to the operation
of the program authorized under this section. Such report shall
be based on the reports receivedfi:t>mthe States pursuant to subsection (c) and include such other information as the Secretary
of Labor determines is appropriate.
(e) EFFECTIVE DATE; SUNSET.—
(1)

E F F E C T I V E DATE.—^The

provisions of this section a n d

the amendments made by this section shall take effect on
the date of the enactment of this Act.
(2) SUNSET.—^The authority provided bv this section, and
the amendments made by this section, shall terminate 5 years
after the date of the enactment of this Act.

Subtitle B—^Provisions Relating to
Performance Under the Agreement
19 u s e 3461.

SEC. 511. DISCIUMINATORY TAXES.

It is the sense of the Congress that when a State, province,
or otiier governmental entity of a NAFTA country discriminatorily
enforces sales or otiier taxes so as to afford protection to domestic

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2155

production or domestic service providers, such enforcement is in
violation of the terms of the Agreement. When such discriminatory
enforcement adversely affects United States producers of goods
or United States service providers, the Trade Representative should
pursue all appropriate remedies to obtain removal of such discriminatory enforcement, including invocation of the provisions of the
Agreement.
SEC. 512. BEVIEW OF THE OPERATION AND EFFECTS OF THE AGREEMENT.

19 USC 3462.

(a) STUDY.—By not later than July 1, 1997, the President President.
shall provide to the Congress a comprehensive study on the operation and effects of the Agreement. The study shall include an
assessment of the following factors:
(1) The net effect of the Agreement on the economy of
the United States, including with respect to the United States
gross national product, employment, balance of trade, and current account balance.
(2) The industries (including agricultural industries) in the
United States that have significantly increased exports to Mexico or Canada as a result of the Agreement, or in which imports
into the United States from Mexico or Canada have increased
sipuficantly as a result of the Agreement, and the extent
or any change in the wages, employment, or productivity in
each such industry as a result of the Agreement.
(3) The extent to which investment in new or existing
production or other operations in the United States has been
redirected to Mexico as a result of the Agreement, and the
effect on United States employment of such redirection.
(4) The extent of any increase in investment, including
foreign direct investment and increased investment by United
States investors, in new or existing production or other operations in the United States as a result of the Agreement,
and the effect on United States employment of such investment.
(5) The extent to which the Agreement has contributed
to—
(A) improvement in real wages and working conditions
in Mexico,
(B) effective enforcement of labor and environmental
laws in Mexico, and
(C) the reduction or abatement of pollution in the
region of the United States-Mexico border.
(b) SCOPE.—^In assessing the factors Usted in subsection (a),
to the extent possible, the study shall distinguish between the
consequences oi the Agreement and events that likely would have
occurred without the Agreement. In addition, the study shall evaluate the efiTects of the Agreement relative to aggregate economic
changes and, to the extent possible, relative to the effects of other
factors, including—
(1) international competition,
(2) reductions in defense spending,
(3) the shift from traditional manufacturing to knowledge
and information based economic activity, and
(4) the Federal debt burden.
(c) RECOMMENDATIONS OF THE PRESIDENT.—The study shall
include any appropriate recommendations by the President with
respect to the operation and effects of the Agreement, including

107 STAT. 2156

President.

PUBLIC LAW 103-182—DEC. 8, 1993

recommendations with respect to the specific factors listed in subsection (a).
(d) RECOMMENDATIONS OP CERTAIN COMMITTEES.—The President shall provide the study to the Committee on Ways and Means
of the House of Representatives and the Committeie on Finance
of the Senate and any other committee that has jurisdiction over
any provision of United States law that was either enacted or
amended by the North American Free Trade Agreement
Implementation Act. Each such committee may hold hearings and
make recommendations to the President with respect to the operation and effects of the Agreement.
SEC. 513. ACTIONS AFFECTING UNITED STATES CULTURAL INDUSTRIES.
Section 182 of the Trade Act of 1974 (19 U.S.C. 2242)
is amended by adding at the end the following new subsection:
"(f) SPECIAL RULE FOR ACTIONS AFFECTING UNITED STATES
CULTURAL INDUSTRIES.—

"(1) IN GENERAL.—By no later than the date that is 30
days after the date on which the annual report is submitted
to Congressional committees under section 181(b), the Trade
Representative shall identify any act, policy, or practice of
Canada which—
"(A) affects cultural industries,
"(B) is adopted or expanded after December 17, 1992,
and
"(C) is actionable under article 2106 of the North American Free Trade Agreement.
"(2) SPECIAL RULES FOR IDENTIFICATIONS.—For purposes
of section 302(bX2XA), an act, poliQr, or practice identified
under this subsection shall be treated as an act, policy, or
practice that is the basis for identification of a country under
subsection (aX2), unless the United States has already taken
action pursuant to article 2106 of the North American Free
Trade Agreement in response to such act, policy, or practice.
In deciding whether to identify an act, policy, or practice under
paragraph (1), the Trade Representative shall—
"(A) consult with and take into account the views of
representatives of the relevant domestic industries, appropriate committees established pursuant to section 135, and
appropriate officers of the Federal Government, and
"(B) take into account the information from such
sources as may be available to the Trade Representative
and such information as may be submitted to the IVade
Representative by interested persons, including information
contained in reports submitted under section 181(b).
"(3) CULTURAL INDUSTRIES.—For purposes of this subsection, the term 'cultural industries' means persons engaged
in any of the following activities:
"(A) The publication, distribution, or sale of books,
magazines, periodicals, or newspapers in print or machine
readable form but not including the sole activity of printing
or t>pesetting any of the foregomg.
(B) The production, distribution, sale, or exhibition
offilmor video recordings.
"(C) The production, distribution, sale, or exhibition
of audio or video music recordings.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2157

"(D) The publication, distribution, or sale of music
in print or machine readable form.
"(E) Radio communications in which the transmissions
are intended for direct reception by the general public,
and all radio, television, and cable broadcasting undertakings and all satellite programming and broadcast network
services.".
SEC. S14. REPORT ON IMPACT OF NAFTA ON MOTOR VEHICLE
EXPORTS TO MEXICO.

(a) FINDINGS.—^The Congress makes the following findings:
(1) Trade in motor vehicles and motor vehicle parts is
one of the most restricted areas of trade between the United
States and Mexico.
(2) The elimination of Mexico's restrictive barriers to trade
in motor vehicles and motor vehicle parts over a 10-year period
under the Agreement should increase substantially United
States exports of sucli products to Mexico.
(3) The Department of Commerce estimates that the Agreement provides the opportunity to increase United States exports
of motor vehicles and motor vehicle parts by $1,000,000,000
during the first year of the Agreement's implementation with
the potential for additional increases over the 10-year transition
period.
(4) The United States automotive industry has estimated
that United States exports of motor vehicles to Mexico should
increase to more than 60,000 units during the first year of
the Agreement's implementation, which is substantially above
the ciirrent level of 4,000 units.
(b) TRADE REPRESENTATIVE REPORT.—NO later than July 1,
1995, and annually thereafter through 1999, the Trade Representative shall submit a report to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives on how effective the provisions of the Agreement
are with respect to increasing United States exports of motor
vehicles and motor vehicle parts to Mexico. Each report shall identify and determine the following:
(1) The patterns of trade in motor vehicles and motor
vehicle parts between the United States and Mexico during
the preceding 12-month period.
(2) The level of tariff and nontariff barriers that were
in force during the preceding 12-month period.
(3) The amount by which United States exports of motor
vehicles and motor vehicle parts to Mexico have increased
from the preceding 12-month period as a result of the elimination of Mexican tariff and nontariff bsuriers imder the Agreement.
(4) Whether any such increase in United States exports
meets the levels of new export opportunities anticipated imder
the Agreement.
(5) If the anticipated levels of new United States export
opportimities are not reached, what actions the Trade Representative is prepared to take to realize the benefits anticipated under the Agreement, including possible initiation of
additional negotiations with Mexico for the purpose of seeking
modifications of the i^eement.

19 USC 3463.

107 STAT. 2158

PUBLIC LAW 103-182—DEC. 8, 1993

SEC. 515. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.
(a) AMENDMENT TO THE CBL—The Caribbean Basin Economic

Recovery Act (19 U.S.C. 2701 et se^.) is amended by inserting
after section 218 the following new section:
Texas.
19 u s e 2707.

<«£€. 219. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC
TRADE.

Grants.

««(a) ESTABUSHMENT.—The Commissioner of Customs, after consultation with appropriate officials in the State of Texas, is authorized and directed to make grants to an institution (or a consortium
of such institutions) to assist such institution in planning, establishing, and operating a Center for the Study of Western Hemispheric
Trade (hereafter in this section referred to as the 'Center*). The
Commissioner of Customs shall make the first grant not later
than December 1, 1994, and the Center shall be established not
later than February 1,1995.
"(b) SCOPE OF THE CENTER.—^The Center shall be a year-round
program operated by an institution located in the State of Texas
(or a consortium of such institutions), the purpose of which is
to promote and study trade between and among Western Hemisphere coimtries. The Center shall conduct activities designed to
examine—
"(1) the impact of the NAFTA on the economies in, and
trade within, the Western Hemisphere,
"(2) the negotiation of any future free trade agreements,
including possible accessions to the NAFTA; and
"(3) adjusting teriffs, reducing nontariff barriers, improving
relations among customs officials, and promoting economic relations among countries in the Western Hemisphere.
"(c) CONSULTATION; SELECTION CRITERIA.—The Commissioner
of Customs shall consult with appropriate officials of the Stete
of Texas and private sector authorities with respect to selecting,
planning, and esteblishing the Center. In selecting the appropriate
institution, the Commissioner of Customs shall give consideration
to—
"(1) the institution's ability to carry out the programs and
activities described in this section; and
"(2) any resources the institution can provide the Center
in addition to Federal funds provided under this program.
"(d) PROGRAMS AND ACTIYITIES.-The Center shall conduct the
following activities:
"(1) Provide forums for international discussion and debate
for representatives from countries in the Western Hemisphere
regarding issues which affect trade and other economic relations
within the hemisphere, including the impact of the NAFTA
on individual economies and the desirability and feasibility
of possible accessions to the NAFTA by such countries.
"(2) Conduct studies and research projects on subjecte
which affect Western Hemisphere trade, including teriffs, customs, regional and national economics, business development
and finance, production and personnel management, manufacturing, agriculture, engineering, transportetion, immigration,
telecommunications, medicine, science, urban studies, border
demographics, social anthropology, and population.
"(3) Publish materials, disseminate information, and conduct seminars and conferences to support and educate representetives from countries in the Western Hemisphere who

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2159

seek to do business with or invest in other Western Hemisphere
countries.
"(4) Provide grants, fellowships, endowed chairs, and financial assistance to outstanding scholars and authorities from
Western Hemisphere countries.
"(5) Provide grantfi, fellowships, and other financial assistance to qualified gradviate students, from Western Hemisphere
countries, to study at the Center.
"(6) Implement academic exchange programs and other
cooperative research and instructional agreements with the
complementary North/South Center at the University of Miami
at Coral Gables.
"(e) DEFINITIONS.—^For purposes of this section—
"(1) NAFTA.—The term *NAFTA' means the North American
Free Trade Agreement..
"(2) WESTERN HEMISPHERE COUNTRIES.—The terms Westem Hemisphere countries', 'countries in the Western Hemisphere', and 'Western Hemisphere' mean Canada, the United
States, Mexico, countries located in South America, beneficiary
countries (as defined by section 212), the Commonwealth of
Puerto Rico, and the United States Virgin Islands.
"(f) FEES FOR SEMINARS AND PUBUCATIONS.—Notwithstanding

any other provision of law, a grant made under this section may
provide that the Center may charge a reasonable fee for attendance
at seminars and conferences and for copies of publications, studies,
reports, and other documents the Center publishes. The Center
may waive such fees in any case in which it determines imposing
a fee would impose a financial hardship and the purposes of the
Center would be served by gremting such a waiver.
"(g) DURATION OF GRANT.—^The Commissioner of Customs is
directed to make grants to any institution or institutions selected
as the Center for fiscal years 1994,1995,1996, and 1997.
"(h) REPORT.—^The Commissioner of Customs shall, no later
th£ui July 1, 1994, and annually thereafter for years for which
grants are made, submit a written report to the Committee on
Finance of the Senate and the Committee on Ways and Means
of the House of Representatives. The first report shall include—
"(1) a statement identifying the institution or institutions
selected as the Center,
"(2) the reasons for selecting the institution or institutions
as the Center, and
"(3) the plan of such institution or institutions for operating
the Center.
Each subsequent report shall include information with respect to
the operations of the Center, the collaboration of the Center with,
and dissemination of information to, Grovemment policymakers and
the business community with respect to the study of Western Hemispheric trade by the Cent<3r, and the plan and efforts of the Center
to continue operations after grants under this section have expired.".
(b) AUTHORIZATION OI' APPROPRIATIONS.—^There are authorized i9 use 270?
to be appropriated $10,000,000 for fiscal year 1994, and such sums ^°^as may be necessary in the 3 succeeding fiscal years to carry
out the purposes of section 219 of the Caribbean Basin Economic
Recovery Act (as added by subsection (a)).

107 STAT. 2160
19 u s e 3461

PUBLIC LAW 103-182—DEC. 8, 1993

SEC. 516. EFFECTIVE DATE.

(a) IN GENERAL.—^Except as provided in subsection Ot>), the
provisions of this subtitle shall take effect on the date the Agreement enters into force with respect to the United States.
(b) EXCEPTION.—Section 515 shall take effect on the date of
the enactment of this Act.

Subtitle C—Funding
PART 1—CUSTOMS USER FEES
SEC. S21. FEES FOR CERTAIN CUSTOMS SERVICES.

(a) IN GENERAL.—Section 13031 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended—
(1) by amending paragraph (5) of subsection (a) to read
as follows*
"(5XA) For fiscal years 1994, 1995, 1996, and 1997, for
the arrival of each passenger aboard a commercial vessel or
commercial aircraft from outside the customs territory of the
United States, $6.50.
"(B) For fiscal year 1998 and each fiscal year thereafter,
for the arrival of each jpassenger aboard a commercial vessel
or commercial aircraft from a place outside the United States
(other than a place referred to in subsection (bXlXA) of this
section), $5."
(2) by adding at the end of paragraph (1) of subsection
(b), the folloMring flush sentence:
"Subparagraph (A) shall not apply to fiscal years 1994, 1995,
1996, and 1997.",
(3) in subsection (f)—
(A) in paragraph (1), by striking "except" and all that
follows through the end period and inserting: "except—
"(A) the portion of such fees that is required under
paragraph (3) for the direct reimbursement of appropriations, and
"(B) the portion of such fees that is determined by
the Secretary to be excess fees under paragraph (5).",
(B) in paragraph (3XA), by striking the first parenthetical and inserting "(other than the fees under subsection
(a) (9) and (10) and the excess fees determined by the
Secretary under paragraph (5))",
(C) in paragraph (4), by striking "under subsection
(a)" and inserting under subsection (a) (other than the
excess fees determined by the Secretary imder paragraph
(5))",and
(D) by adding at the end thereof the following new
paragraph:
^(5) At the close of each of fiscal years 1994, 1995, 1996,
and 1997, the Secretary of the Treasury shall determine the
amount of the fees collected under paragraph (5XA) of subsection (a) for that fiscal year that exceeds the amount of
such fees that would have been collected for such fiscal year
if the fees that were in effect on the day before the effective
date of this paragraph applied to such fiscal year. The amount
of the excess fees determined under the preceding sentence
shall be deposited in the Customs User Fee Accoimt and shall

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2161

be available for reimbursement of inspectional costs (including
passenger processing costs) not otherwise reimbursed imder
this section, and shall be available only to the extent provided
in appropriations Acts.", and
(4) in paragraph (3) of subsection (j), by striking "September
30,1998" and inserting "September 30, 2003".
(b) EFFECTIVE DATE.—^The amendments made by this section 19 use 58c note.
shall take effect on the date the Agreement enters into force with
respect to the United States.

PART 2—INTERNAL REVENUE CODE
AMENDMENTS
SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO
THE UNITED STATES CUSTOMS SERVICE.

(a) IN GENERAL.—Subsection (1) of section 6103 of the Internal
Revenue Code of 1986 (relating to confidentiality and disclosure 26USC6103.
of returns and return information) is amended by adding at the
end thereof the following new paragraph:
"(14)

DISCLOSURE OF RETURN INFORMATION TO UNITED

STATES CUSTOMS SERVICE.—^The Secretary may, upon written
request from the Commissioner of the United States Customs
Service, disclose to olTicers and employees of the Department
of the Treasiiry such return information with respect to taxes
imposed by chapters 1 and 6 as the Secret£uy may prescribe
by regulations, solely for the purpose of, and only to the extent
necessary in—
"(A) ascertaining the correctness of any entry in audits
as provided for in section 509 of the Tariff Act of 1930
(19 U.S.C. 1509), or
"(B) other actions to recover any loss of revenue, or
to collect duties, taxes, and fees, determined to be due
and owing pursuant to such audits."
(b) CONFORMING AMIINDMENTS,—Paragraphs (3XA) and (4) of

section 6103(p) of such Code are each amended by striking "or
(13)" each place it appears and inserting "(13), or (14)".
(c) EFFECTIVE D A T E . —

26 u s e 6io3

(1) IN GENERAL.—^The amendments made by this section "°*®shall take effect on the date the Agreement enters into force
with respect to the United States.
(2) REGULATIONS—Not later than 90 days after the date
of the enactment of this Act, the Secretary of the Treasury
or his delegate shall issue temporary regulations to carry out
section 6103(1X14) of the Internal Revenue Code of 1986, as
added by this section.
S E C . 523. U S E O F ELECTRONIC FUND TRANSFER SYSTEM FOR
COLLECTION OF CERTAIN TAXES.
(a) GENERAL RULE.—Section 6302 of the Internal Revenue Code

of 1986 (relating to mode or time of collection) is amendec^ by 26 use 6302.
redesignating subsection ([h) as subsection (i) and by inserting after
subsection (g) the following new subsection:
"(h) USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR COLLECTION OF CERTAIN TAXES.—
"(1) ESTABUSHMENT OF SYSTEM.—

"(A) IN GENERAL.—^The Secretary shall prescribe such Regulations.
regulations as may be necessary for the development and

107 STAT. 2162

PUBLIC LAW 103-182—DEC. 8, 1993
implementation of an electronic fund transfer system which
is required to be used for the collection of depository taxes.
Such system shall be designed in such manner as may
be necessary to ensure that such taxes are credited to
the general account of the Treasury on the date on which
such taxes would otherwise have been required to be deposited under the Federal tax deposit system.
"(B) EXEMPTIONS.—The regulations prescribed under
subparagraph (A) may contain such exemptions as the
Secretary may deem appropriate.
"(2) PHASE-IN REQUIREMENTS.—

"(A) IN GENERAL.—^Except as provided in subparagraph
(B), the regulations referred to in paragraph (1)—
"(i) shall contain appropriate procediires to assure
that an orderly conversion from the Federal tax deposit
system to the electronic fund transfer system is accomplished, and
"(ii) may provide for a phase-in of such electronic
fund transfer system by classes of taxpayers based
on the aggregate undeposited taxes of such taxpayers
at the close of specified periods and any other factors
the Secretary may deem appropriate.
**(B) PHASE-IN REQUIREMENTS.—The phase-in of the
electronic fund transfer system shall be designed in such
manner as may be necessary to ensure that—
"(i) during each fiscal year beginning after September 30, 1993, at least the applicable required percentage of the total depository taxes imposed by chapters
21, 22, and 24 shall be collected by means of electronic
fund transfer, and
"(ii) during each fiscal year beginning after
September 30, 1993, at least the applicable required
percentage of the total other depository taxes shall
be collected by means of electronic fund transfer.
"(C) APPUCABLE REQUIRED PERCENTAGE.—

"(i) In the case of the depository taxes imposed
by chapters 21, 22, and 24, the applicable required
percentage is—
"(I) 3 percent forfiscalyear 1994,
"(ID 16.9 percent forfiscalyear 1995,
"(III) 20.1 percent for fiscal year 1996,
"(IV) 58.3 percent for fiscal years 1997 and
1998, and
"(V) 94 percent for fiscal year 1999 and all
'
fiscal
years thereafter.
"(ii) In the case of other depository taxes, the
applicable required percentage is—
"(I) 3 percent forfiscalyear 1994,
"(II) 20 percent forfiscalyear 1995,
"(III) 30 percent forfiscalyear 1996,
"(IV) 60 percent forfiscalyears 1997 and 1998,
and
"(V) 94 percent for fiscal year 1999 and all
fiscal years thereafter.
"(3) DEFINITIONS.—^For purposes of this subsection—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2163

"(A) DEPOSITORY TAX.—The term 'depository tax* means
any tax if ihe S^nretary is authorized to require deposits
of such tax.
"(B) ELECTRONIC FUNP TRANSFER.—The term 'electronic fund transfer* means any transfer of funds, other
than a transaction originated by check, draft, or similar
paper instrument, which is initiated through an electronic
terminal, telephonic instrument, or computer or magnetic
tape so as to order, instruct, or authorize a financial institution or other financial intermediary to debit or credit an
account.
**(4) COORDINATION WITH OTHER ELECTRONIC FUND TRANSFER REQUIREMENTS.—
"(A) COORDINATION WITH CERTAIN EXCISE TAXES.—In

determining whether the requirements of subparagraph
(B) of para^aph (2) are met, taxes re<][uired to be paid
by electromc mnd transfer imder sections 5061(e) and
5703(b) shall be disregarded.
"(B) ADDITIONAL REQUIREMENT.—Under regulations,
any tax retquired to be paid bv electronic fund transfer
under section 5061(e) or 5703(b) shall be paid in such
a manner as to ensure that the requirements of the second
sentence of paragraph (IXA) of this subsection are satisfied.",

(b) EFFECTIVE DATE.—
26 use 6302
(1) IN GENERAL.—^The amendments made by this section "°*®
shall take effect on the date the Agreement enters into force
with respect to the United Stetes.
(2) REGULATIONS.—Not later than 210 days after the date
of enactment of this Act, the Secretary of the Treasury or
his delegate shall prescribetemporaryregulations imder section
6302(h) of the Internal Revenue Code of 1986 (as added by
this section).

Subtitle D—Implementation of NAFTA
Supplemental Agreements
PART 1—AGREEMENTS RELATING TO LABOR
AND ENVIRONMENT
SEC. 531. AGREEMENT ON LABOR COOPERATION.

19 USC 3471.

(a) COMMISSION FOR LABOR COOPERATION.—

(1) MEMBERSHIP.—The United States is authorized to
participate in the Commission for Labor Cooperation in accordance with the North American Agreement on Labor Cooperation.
(2) CONTRIBUTIONS TO BUDGET.—^There are authorized to Appropriations
be appropriated to the President (or such agency as the Presi- authorization.
dent may designate) $2,000,000 for each of fiscal years 1994
and 1995 for United Stetes contributions to the annual budget
of the Commission for Labor Cooperation pursuant to Article
47 of the North American Agreement on Labor Coop|eration.
Funds authorized to be appropriated for such contributions
bv this paragraph are in addition to any funds otherwise available for such contributions. Funds authorized to be appropriated

-194 O - 94 - 8 : QL. 3 Part 3

107 STAT. 2164

PUBLIC LAW 103-182—DEC. 8, 1993
by this paragraph are authorized to be made available until
expended.
(b) DEFINITIONS.—As used in this section—
(1) the term "Commission for Labor Cooperation" means
the commission established by Part Three of uie North American Agreement on Labor Cooperation; and
(2) the term '?^orth American Agreement on Labor
Cooperation" means the North American Agreement on Labor
Cooperation Between the Government of the United States
of America, the Government of Canada, and the Government
of the United Mexican States (signed at Mexico City, Washington, and Ottawa on September 8,9,12, and 14,1993).

19 u s e 3472.

Appropriations
authorization.

19 u s e 3473.

SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION.
(a) COMMISSION FOR ENVIRONMENTAL COOPERATION.—

(1) MEMBERSHIP.—The United States is authorized to
participate in the Commission for Environmental Cooperation
m accordance with the North American Agreement on Environmental Cooperation.
(2) CONTRIBUTIONS TO BUDGET.—There are authorized to
jj^ appropriated to the President (or such agency as the President may designate) $5,000,000 for each of fiscal years 1994
and 1995 for United States contributions to the annual budget
of the Commission for Environmental Cooperation pursuant
to Article 43 of the North American Agreement on Environmental Cooperation. Funds authorized to be appropriated for
such contributions by this paragraph are in addition to any
fimds otherwise available for such contributions. Funds authorized to be appropriated by this paragraph are authorized to
be made available until expended.
(b) DEFINITIONS.—^As used in this section—
(1) the term "Commission for Environmental Cooperation"
means the commission established by Part Three of the North
American Agreement on Environmental Cooperation; and
(2) the term "North American Agreement on Environmental
Cooperation" means the North American Agreement on
Environmental Cooperation Between the Government of the
United States of America, the Government of Canada, and
the Government of the United Mexican States (signed at Mexico
City, Washington, and Ottawa on September 8, 9, 12, and
14,1993).
SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION
COMMISSION.
(a) BORDER ENVIRONMENT COOPERATION COMMISSION.—

(1) MEMBERSHIP.—The United States is authorized to
participate in the Border Environment Cooperation Commission
m accordance with the Border Environment Cooperation Agreement.

Appropriations

authorization.

(2) CONTRIBUTIONS TO THE COMMISSION BUDGET.—There

j^jg authorized to be appropriated to the President (or such
agency as the President may designate) $5,000,000 for fiscal
year 1994 and each fiscal year thereafter for United States
contributions to the budget of the Border Environment Cooperation Commission pursuant to section 7 of Article III of Chapter
I of the Border Environment Cooperation A^eement. Funds
authorized to be appropriated for such contributions bjr this
paragraph are in addition to any funds otherwise available

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2165

for such contributions. Funds authorized to be appropriated
by this paragraph are authorized to be made available imtil
expended.
(b) CIVIL ACTIONS INVOLVING THE COMMISSION.—For the purpose of any civil action which may be brought within the United
States by or against the Border Environment Cooperation Commission in accordance with the Border Environment Cooperation Agreement (including an action brought to enforce an arbitral award
against the Commission), the Commission shall be deemed to be
an inhabitant of the Federal judicial district in which its principal
office within the United States, or its agent appointed for the
purpose of accepting service or notice of service, is located. Any
such action to which the Commission is a party shall be deemed
to arise under the laws of the United States, and the district
courts of the United States (including the courts enumerated in
section 460 of title 28, United States Code) shall have original
jurisdiction of any such action. When the Commission is a defendant
in any action in a State court, it may at any time before trial
remove the action into the appropriate district court of the United
States by following the procedure for removal provided in section
1446 of title 28, United States Code.
(c) DEFINITIONS.—^As used in this section—
(1) the term "Border Environment Cooperation Agreement"
means the November 1993 Agreement Between the Government
of the United States of America and the Government of the
United Mexican States Concerning the Establishment of a Border Environment Cooperation Commission and a North American Development Bamc;
(2) the terms "Border Environment Cooperation Commission" and "Commission" mean the commission established
pursuant to Chapter I of the Border Environment Cooperation
Agreement; and
(3) the term "United States" means the United States,
its territories and possessions, and the Commonwealth of
Puerto Rico.

PART 2—NORTH AMERICAN DEVELOPMENT
BANK AND RELATED PROVISIONS
SEC. 641. NORTH AMERICAN DEVELOPMENT BANK
(a) ACCEPTANCE OF MEMBERSHIP.—The President

is herebv
authorized to accept membership for the United States in the North
American Development Bank (hereafter in this part referred to
as the "Bank") provided for in Chapter II of the Border Environment
Cooperation Agreement (hereafter in this part referred to as the
"Cooperation AgreetaenV).
(b) SUBSCRIPTION OF STOCK.—
(1) SUBSCRIPTION AUTHORITY.—

(A) IN GENERAL.—^The Secretary of the Treasury may
subscribe on behalf of the United States up to 150,000
shares of the capital stock of the Bank.
(B) EFFE(3TIVENESS OF SUBSCRIPTION.—Except as provided in paragraph (3), any such subscription shall be
effective only to such extent or in such amounts as are
provided in advance in appropriations Acts.
(2) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—

For payment by the Secretary of the Treasury of the subscrip-

22 USC 290m.

107 STAT. 2166
K

PUBLIC LAW 103-182—DEC. 8, 1993
tion of the United States for shares described in paragraph
(1), there are authorized to be appropriated $1,500,000,000
($225,000,000 of which may be used for paid-in capital and
$1,275,000,000 of which may be used for callable capital) without fiscal year Umitation.
(3) FUNDING; LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS.—

(A) FUNDING.—^For fiscal year 1995, the Secretary of
the Treasury shall pay to the Bank out of any sums in
the Treasury not otnerwise appropriated the sum of
$56,250,000 for the paid-in portion of the United States
share of the capital stock of tne Bank, 10 percent of which
may be transferred by the Bank to the President pursuant
to section 543 to pay for the cost of direct £ind guaranteed
Federal loans.
(B) LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS.—

For fiscal year 1995, the Secretary of the Treasury shall
subscribe to the callable capital portion of the United States
share of the capital stock of the Bank in an amount not
to exceed $318,750,000.
(4) DISPOSITION OP NET INCOME DISTRIBUTED BY THE FACIL-

ITY.—Any payment made to the United States by the Bank
as a distribution of net income shall be covered into the Treasury as a miscellaneous receipt.
(c) COMPENSATION OF BOARD MEMBERS.—NO person shall be
entitled to receive any salary or other compensationfi:t)mthe Bank
or the United States for services as a Board member.
(d) APPLICABILITY OF BRETTON WOODS AGREEMENTS ACT.—

The provisions of section 4 of the Bretton Woods Agreements Act
shall apply with respect to the Bank to the same extent as with
respect to the International Bank for Reconstruction and Development and the International Monetary Fund.
(e) RESTRICTIONS.—^Unless authorized by law, neither the President nor any person or agency shall, on behalf of the United
States—
(1) subscribe to additional shares of stock of the Bank;
(2) vote for or agree to any amendment of the Cooperation
Agreement which increases the obligations of the United States,
or which changes the purpose or functions of the Bank; or
(3) make a loan or provide other financing to the Bank.
(f) FEDERAL RESERVE BANKS AS DEPOSITORIES.—Any Federal
Reserve bank that is requested to do so by the Bank shall act
as its depository^ or as its fiscal agent, and the Board of Grovemors
of the Federal Reserve System shall supervise and direct the carrying out of these fiinctions by the Federal Reserve banks.
(g) JURISDICTION OF UNITED STATES COURTS AND ENFORCEMENT

OF ARBITRAL AWARDS.—For the purpose of any civil action which
may be brought within the United States, its territories or possessions, or the Commonwealth of Puerto Rico, by or against the
Bank in accordance with the Cooperation Agreement, including
an action brought to enforce an arbitral award against the Bank,
the Bank shaU be deemed to be an inhabitant of the Federal
judicial district in which its principal office within the United
States or its agency appointed for the purpose of accepting service
or notice of service is located, and any such action to which the
Bank shall be a party shall be deemed to arise under the laws
of the United States, and the district courts of the United States,

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2167

including the courts enmnerated in section 460 of title 28, United
States Code, shall have original jurisdiction of any such action.
When the Bank is a defendant in any action in a State court,
it may at any time before trial remove the action into the appropriate district court of the United States by following the proceaure
for removal provided in section 1446 of title 28, United States
Code.
(h) ExEMPnoN FROM SECURITIES LAWS FOR CERTAIN SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED.—
(1) EXEMPTIONS FROM LIMITATIONS AND RESTRICTIONS ON
THE POWER OF NATIONAL BANKING ASSOCIATIONS TO DEAL IN
AND UNDERWRITE IN^/ESTMENT SECURITIES OF THE BANK.—The

seventh sentence of the seventh undesignated paragraph of
section 5136 of the Revised Statutes of the United States (12
U.S.C. 24), is amended by inserting "the North American Development Bank," after "Inter-American Development Bank,".
(2) EXEMPTION FROM SECURITIES LAWS FOR CERTAIN SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED.—^Any securities

issued by the Bank (including any guarantee by the Bank,
whether or not limited in scope) in connection with the raising
of funds for inclusion in the Bank's capital resources as defined
in Section 4 of Article II of Chapter II of the Cooperation
Agreement, and any securities guaranteed by the Bank as
to both the principal and interest to which tne commitment
in Section 3(d) of Article II of Chapter II of the Cooperation
Agreement is exprcissly applicable, shall be deemea to be
exempted securities within the meaning of section 3(aX2) of
the Securities Act of 1933 (15 U.S.C. 77c), and section 3(aX12)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c). The Reports.
Bank shall file with the Securities and Exchange Commission
such annual and other reports with regard to such securities
as the Commission shall determine to be appropriate in view
of the special character of the Bank and its operations and
necessary in the public interest or for the protection of investors.
(3) AUTHORITY OP SECURITIES AND EXCHANGE COMMISSION

TO SUSPEND EXEMPTION; REPORTS TO THE CONGRESS.—The Securities and Exchemge Commission, acting in consultetion with
the National Advisory Council on International Monetery and
Financial Problems, is authorized to suspend the provisions
of paragraph (2) at any time as to any or all securities issued
or guaranteed by the Bank during the period of such suspension. The Commission shall include in ite annual reports to
Congress such infoirmation as it shall deem advisable with
regard to the operations and effect of this subsection and in
connection therewith shall include any views submitted for
such purpose by any association of dealers registered with
the Commission.
SEC. 542. STATUS, IMMUNITIES, AND PRIVILEGES.

22 u s e 290m-l.

Article VIII of Chapter II of the Cooperation Agreement shall
have full force and effect in the United Stetes, its territories and
possessions, and the Commonwealth of Puerto Rico, upon entry
into force of the Cooperation Agreement.
SEC. S4S. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM.

(a) THE PRESIDENT.—(1) The President may enter into an agreement with the Bank that facilitotes implementetion by the Presi-

22 u s e 290m-2.

107 STAT. 2168

I

President.

President.

PUBLIC LAW 103-182—DEC. 8, 1993

dent of a prc^gram for community adjustment and investment in
support of the Agreement piu^uant to chapter 11 of the Cooperation
Agreement (hereafter in this sectioii referred to as the "community
adyjustment and investment program").
(2) The President may receive firom the Bank 10 percent of
the paid-in capital actually paid to the Bank by the United States
for the President to carry out, without furtner appropriations,
through Federal agencies and their loan and loan guarantee programs, the conmiunity a4ju8tment and investment program, pursuant to an agreement oetween the President and the Bank.
(3) The President may select one or more Federal agencies
that make loans or guarantee the repasnment of loans to assist
in canying out the community adjustment and investment program,
and may transfer the funds received from the Bank to sudi agency
or agencies for the purpose of assisting in carrying out the community adjustment ana investment program.
(4XA) Each Federal agency selected by the President to assist
in carrying out the community ac^'ustment and investment program
shall use the funds transferred to it by the President from the
Bank to pay for the costs of direct and guaranteed loans, as defined
in section 502 of the Congressional Budget Act of 1974, and, as
appropriate, other costs associated with such loans, aU subject
to the restrictions and limitations that apply to such agenc^s existing loan or loan guarantee program.
(B) Fimds transferred to an agency under subparagraph (A)
shall be in addition to the amount of funds authorized m any
appropriations Act to be expended by that agency for its loan
or loan guarantee program.
(5) The President shall—
(A) establish guidelines for the loans and loan gu£u*antees
to be made under the community a4justment and investment
program;
(B) endorse the grants made by the Bank for the community
a4justment and investment program, as provided in Article
I, section 1(b), and Article III, section 11(a), of Chapter II
of the Cooperation Agreement; and
(C) endorse any loans or guarantees made by the Bank
for the community adjustment and investment program, as
provided in Article I, section 1(b), and Article III, section 6
(a) and (c) of Chapter II of the Cooperation Agreement.
(b) ADVISORY COMMITTEE.—

(1) EsTABUSHMENT.—The President shall establish an
advisory committee to be known as the Community Adjustment
and Investment Program Advisory Committee (in this section
referred to as the "Advisory Committee") in accordance with
the provisions of the Federal Advisory Committee Act.
(2) MEMBERSHIP.—

(A) IN GENERAL.—^The Advisory Committee shall consist of 9 members of the public, appointed by the President,
who, collectively, represent—
(i) community groups whose constituencies include
low-income families;
(ii) any scientific, professional, business, nonprofit,
or public interest organization or association which
is neither affiliated with, nor under the direction of,
a government;
(iii) for-profit business interests; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2169

(iv) other appropriate entities with relevant expertise.
(B) REPRESENTATION.—^Each of the categories described
in clauses (i) through (iv) of subparagraph (A) shall be
represented by no fewer than 1 and no more than 3 members of the Advisory Committee.
(3) FUNCTION.—It shall be the function of the Advisory
Committee—
(A) to provide advice to the President regarding the
implementation of the commimity adjustment and investment program, including advice on the guidelines to be
established by the Presicfent for the loans and loan guarantees to be made pursusmt to subsection (aX4), advice on
identifying the needs for adjustment assistance and investment in support of the goals and objectives of the Agreement, taking into account economic and geographic considerations, and advice on such other matters as may be
requested by the President; and
(B) to review on a regular basis the operation of the
commimity adjustment and investment program and provide the President with the conclusions of its review.
(4) TERMS OF MEMBERS.—

(A) IN GENERAL.—Each member of the Advisory
Committee shall serve at the pleasure of the President.
(B) CHAlRPERSON.^The President shall appoint a
chairperson from among the members of the Advisory
Committee.
(C) MEETINGS.—^The Advisory Committee shall meet
at least annually and at such other times as requested
by the President or the chairperson. A msgority of the
members of the Advisory Committee shall constitute a
quorum.
(D) REIMBIFRSEMENT FOR EXPENSES.—The members of
the Advisory Committee may receive reimbursement for
travel, per diem, and other necessary expenses incurred
in the performance of their duties, in accordance with
the Federal Advisory Committee Act.
(E) STAFF AND FACILITIES.—The Advisory Committee
may utilize the facilities and services of employees of any
Federal agency without cost to the Advisory Committee,
and any such agency is authorized to provide services as
requested by the Committee.
(c) OMBUDSMAN.—^llie President shall appoint an ombudsman
to provide the public with an opportunity to participate in the
carrying out of the community adjustment and investment program.
(1) FUNCTION.—It shall be the fimction of the ombudsman—
(A) to establish procedures for receiving comments from
the general public on the operation of the community
adjustment and investment program, to receive such comments, and to provide the President with summaries of
the public comments; and
(B) to perform an independent inspection and programmatic audit of the operation of the community adjustment and investment program and to provide the President
with the conclusions of its investigation and audit.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the President, or such agency as

107 STAT. 2170

^
22 u s e 290m-3.

PUBLIC LAW 103-182—DEC. 8, 1993

the President may designate, $25,000 for fiscal year 1995 and
for each fiscal year there£ifter, for the costs of the ombudsman.
(d) REPORTING REQUIREMENT.—The President shall submit to
the appropriate congressional committees an annual report on the
commimity adjustment and investment program (if any) that is
carried out pursuant to this section. Each report shall state the
amount of the lo£ui8 made or guaranteed during the 12-month
period ending on the day before the date of the report.
SEC. 644. DEFINITION.

For purposes of this part, the term "Border Environment
Cooperation Agreement" (referred to in this part as the "Cooperation
Agreement") means the November 1993 Agreement Between the
(jrovemment of the United States of America and the Government
of the United Mexican States Concerning the Establishment of
a Border Environment Cooperation Commission and a North American Development Bank.

TITLE VI—CUSTOMS MODERNIZATION
SEC. 601. REFERENCE.

Whenever in subtitle A, B, or C an amendment or repeal
is expressed in terms of an amendment to, or repeal of, a part,
section, subsection, or other provision, the reference shall be considered to be made a part, section, subsection, or other provision
of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.).

Subtitle A—^Improvements in Customs
Enforcement
SEC. 611. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING,
ENTRY, AND CLEARANCE REQUIREMENTS.

Section 436 (19 U.S.C. 1436) is amended—
(1) by amending subsection (a)—
(A) by striHng out "433" in paragraph (1) and inserting
"431, 433, or 434 of this Act or section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91)",
(B) by amending paragraph (2) to read as follows:
"(2) to present or transmit, electronically or otherwise,
any forged, altered, or false document, paper, information, data
or manifest to the (IJustoms Service under section 431(e), 433(d),
or 434 of this Act or section 4197 of the Revised Statutes
of the United States (46 U.S.C. App. 91) without revealing
the facts; or", and
(C) by amending paragraph (3) to read as follows:
"(3) to fail to make entry or to obtain clearance as required
by section 434 or 644 of this Act, section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91), or section
1109 of the Federal Aviation Act of 1958 (49 U.S.C. App.
1509); or"; and
(2) by striking out "AND ENTRY" in the section heading
and inserting "ENTRY, AND CLEARANCE".
SEC. 612. FAILURE TO DECLARE.

Section 497(a) (19 U.S.C. 1497(a)) is amended—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2171

(1) by inserting "or transmitted" after "made" in paragraph
(IXA); and
(2) by amending paragraph (2XA) to read as follows:
(A) if the article is a controlled substance, either $500
or an amount equal to 1,000 percent of the value of the
article, whichever amount is greater; and".
SEC. 613. CUSTOMS TESTING LABORATORIES: DETENTION OF MEIU
CHANDISE.

(a) AMENDMENT.—-Section 499 (19 U.S.C. 1499) is amended
to read as follows:
«SEC. 499. EXAMINATION OF MERCHANDISE.
"(a) ENTRY EXAMINATION.—

"(1) IN GENERAL.—Imported merchandise that is required
by law or regulation to be inspected, examined, or appraised
shall not be delivered from customs custody (except under
such bond or other security as may be prescribed by the Secretary to assure compliance with all applicable laws, regulations, and instructions which the Secretary or the Customs
Service is authonzed to enforce) imtil the merchandise has
been inspected, appraised, or examined and is reported by
the Customs Service to have been truly and correctly invoiced
and found to comply with the requirements of the laws of
the United States.
"(2) EXAMINATION.—The Customs Service—
"(A) shall designate the packages or quantities of merchandise covered by any invoice or entry which are to
be opened and examined for the purpose of appraisement
or otnerwise;
"(B) shall order such packages or quantities to be sent
to such place as is designated by the Secretary by regulation for such purpose;
"(C) may require such additional packages or quantities
as the SecretJiry considers necessary for such purpose; and
"(D) shall inspect a svifdcient number of shipments,
and shall examine a sufficient number of entries, to ensure
compliance with the laws enforced by the Customs Service.
"(3) UNSPECIFIED ARTICLES.—If any package contains any
article not specified in the invoice or entry and, in the opinion
of the Customs Service, the article was omitted from the invoice
or entry—
"(A) with fraudulent intent on the part of the seller,
shipper, owner, agent, importer of record, or entry filer,
the contents of the entire package in which such article
is found shall be subject to seizure; or
"(B) without fraudulent intent, the value of the article
shall be added to the entry and the duties, fees, and taxes
thereon paid accordingly.
"(4) DEFICIENCY.—If a deficiency is found in quantity,
weight, or measure in the examination of any package, the
person finding the deficiency shall make a report thereof to
the Customs Ser/ice. The Customs Service shall make allowance for the deficiency in the liquidation of duties.
"(5) iNFORMA'noN REQUIRED FOR RELEASE.—If an examination is conducted, any information required for release shall
be provided, either electronically or in paper form, to the Customs Service at the port of examination. The absence of such

107 STAT. 2172

PUBLIC LAW 103-182—DEC. 8, 1993
infonnation does not limit the authority of the Customs Service
to conduct an examination.
"(b) TESTING LABORATORIES.—
"(1) ACCREDITATION OF PRIVATE TESTING LABORATORIES.—

Regulations.

The Customs Service shall establish and implement a procedure, under regulations promulgated by the Secretary, for
accrediting private laboratories within the United States which
may be used to perform tests (that would otherwise be performed by Customs Service laboratories) to establish the
characteristics, quantities, or composition of imported merchandise. Such regulations—
"(A) shall establish the conditions required for the laboratories to receive and maintain accreditation for purposes
of this subsection;
"(B) shall establish the conditions regarding the
suspension and revocation of accreditation, which may
include the imposition of a monetaiy penalty not to exceed
$100,000 and such penalty is in addition to the recovery,
from a ganger or laboratory accredited under paragraph
(1), of any loss of revenue that may have occurred, but
the Customs Service—
"(i) may seek to recover lost revenue only in cases
where the ganger or laboratory intentionally falsified
the analysis or gauging report in collusion with the
importer; and
"(ii) shall neither assess penalties nor seek to
recover lost revenue because of a good faith difference
of professional opinion; and
"(C) may provide for the imposition of a reasonable
charge for accreditation and periodic reaccreditation.
The collection of any charge for accreditation and
reaccreditation under this section is not prohibited by section
13031(eX6) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(eX6)).
"(2) APPEAL OF ADVERSE ACCREDITATION DECISIONS.—A laboratory appl3dng for accreditation, or that is accredited, under
this section may contest any decision or order of the Customs
Service denjring, suspending, or revoking accreditation, or
imposing a monetary penalty, by commencing an action in
accordance with chapter 169 of title 28, United States Code,
in the Court of International Trade within 60 days after issuance of the decision or order.
"(3)

TESTING

BY

ACCREDITED

LABORATORIES.—When

requested by an importer of record of merchandise, the Customs
Service shadl authorize the release to the importer of a representative sample of the merchandise for testing, at the
expense of the importer, by a laboratory accredited under paragraph (1). The testing results from a laboratory accredited
under paragraph (1) that are submitted by an importer of
record with respect to merchandise in an entry shall, in the
absence of testing results obtained from a Customs Service
laboratory, be accepted by the Customs Service if the importer
of record certifies that the sample tested was taken from the
merchandise in the entiy. Nothing in this subsection shall
be construed to limit in any way or preclude the authority
of the Customs Service to test or analyze any sample or merchandise independently.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2173

"(4) AVAILABIUTY OF TESTING PROCEDURE, METHODOLOGIES,
AND INFORMATION.—^Testing procedxires and methodologies used
by the Customs Service, and information resulting from any
testing conducted by the Customs Service, shall be made available as follows:
"(A) Testing procedures and methodologies shall be
made available upon request to any person imless the
procedures or methodologies are—
"(i) proprietary to the holder of a copjndght or
patent related to such procedures or methodologies,
or
"(ii) developed by the Customs Service for enforcement purposes.
"(B) Information resulting from testing shall be made
available upon request to the importer of record and any
agent thereof unless the information reveals information
which is—
"(i) proprietary to the holder of a copyright or
patent; or
"(ii) developed by the Customs Service for enforcement pur{>oses.
**(5) MISCELLANEOUS PROVISIONS.—For purposes of this
subsection—
"(A) any reference to a private laboratory includes a
reference to a private ganger; and
''(B) accreditation of private laboratories extends only
to the performance of functions by such laboratories that
are within the scope of those responsibilities for determinations of the elements relating to admissibility, quantity,
composition, or characteristics of imported merchandise
that are vested in, or delegated to, the Customs Service.
"(c) DETENTIONS.—^Except in the case of merchandise with
respect to which the determination of admissibility is vested in
an agency other than the Customs Service, the following apply:
"(1) IN GENERAL.—^Within the 5-day period (excluding weekends and holidays) following the date on which merchandise
is presented for customs examination, the Customs Service
shall decide whether to release or detain the merchandise.
Merchandise which is not released within such 5-day period
shall be considered to be detained merchandise.
"(2) NOTICE OF DETENTION.—The Customs Service shall
issue a notice to the importer or other party having an interest
in detained merchandise no later than 5 days, excluding weekends and hoUdays, after the decision to detain the merchandise
is made. The notice shall advise the importer or other interested
party of—
"(A) the initiation of the detention;
"(B) the specific reason for the detention;
"(C) the anticipated length of the detention;
"(D) the nature of the tests or inquiries to be conducted;
and
"(E) the nature of any information which, if supplied
to the Customs Service, may accelerate the disposition
of the detention.
"(3) TESTING RESULTS.—^Upon request by the importer or
other party having an interest in detained merchandise, the
Customs Service shall provide the party with copies of the

107 STAT. 2174

PUBLIC LAW 103-182—DEC. 8, 1993
results of any testing conducted by the Customs Service on
the mercheuidise and a description of the testing procedures
and methodologies (unless such procedures or methodologies
are proprietary to the holder of a copyright or patent or were
developed by the Customs Service for enforcement purposes).
The results and test description shall be in sufficient detail
to permit the duplication and analysis of the testing and the
results.
"(4) SEIZURE AND FORFEITURE.—If otherwise provided by
law, detained merchandise may be seized and forfeited.
**(5) EFFECT OF FAILURE TO MAKE DETERMINATION.—

19 use 1499
note.

**(A) The failure by the Customs Service to make a
final determination with respect to the admissibility of
detained merchandise within 30 days after the merchandise
has been presented for customs examination, or such longer
period if specifically authorized by law, shall be treated
as a decision of the Customs Service to exclude the merchandise for purposes of section 514(aX4).
"(B) For purposes of section 1581 of title 28, United
States Code, a protest against the decision to exclude the
merchandise which has not been allowed or denied in whole
or in part before the 30th day after the day on which
the protest was filed shall be treated as having been denied
on such 30th day.
"(C) Notwithstanding section 2639 of title 28, United
States Code, once an action respecting a detention is commenced, unless the Customs Service establishes bv a
preponderance of the evidence that an admissibility decision has not been reached for good cause, the court shall
grant the appropriate relief which may include, but is
not limited to, an order to cancel the detention and release
the merchandise.".
(b) EXISTING LABORATORIES.—Accreditation under section
499(b) of the Tariff Act of 1930 (as added by subsection (a)) is
not required for any private laboratory (including any ganger) that
was accredited or approved by the Customs Service as of the day
before the date of the enactment of this Act; but any such laboratory
is subject to reaccreditation imder the provisions of such section
and the regulations promulgated thereunder.
SEC. 614. RECORDKEEPING.

Section 608 (19 U.S.C. 1508) is amended—
(1) by amending subsection (a) to read as follows:
"(a) REQUIREMENTS.—Any—

Claims.

*(1) owner, importer, consignee, importer of record, entry
filer, or other party who—
"(A) imports merchandise into the customs territory
of the United States, files a drawback claim, or transports
or stores merchandise carried or held under bond, or
"(B) knowingly causes the importation or transportation or storage of merchandise carried or held under
bond into or from the customs territory of the United
States;
"(2) agent of any party described in paragraph (1); or
"(3) person whose activities require the filing of a declaration or entry, or both;

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2175

shall make, keep, and render for examination and inspection records
(which for purposes of iMs section include, but are not limited
to, statements, declarations, documents and electronically generated
or machine readable data) which—
"(A) pertain to any such activity, or to the information
contained in the records required by this Act in connection
with any such activity; and
"(B) are normall}^ kept in the ordinary covirse of business.";
and
(2) by amending subsection (c) to read as follows:
**(c) PERIOD OF TIME.—The records required by subsections (a) Claims.
and (b) shall be kept for such period of time, not to exceed 5
years from the date of entry or exportation, as appropriate, as
the Secretary shall prescribe; except that records for any drawback
claim shall be kept until the 3rd anniversary of the date of payment
of the claim.**.
SEC. 61S. EXAMINATION OF BOOKS AND WITNESSES.

Section 509 (19 U.S.C. 1509) is amended as follows:
(1) Subsection (a) is amended—
(A) by striking out "and taxes" wherever it appears
and inserting ", iees and taxes";
(B) by amending paragraph (1) to read as follows:
"(1) examine, or cause to be examined, upon reasonable
notice, any record (which for purposes of this section, includes,
but is not limited to, any statement, declaration, document,
or electronically generated or machine readable data) described
in the notice with reasonable specificity, which may be relevant
to such investigation or inquiry, except that—
"(A) if such record is required by law or regulation
for the entry of the merchandise (whether or not Uie Customs Service reciuired its presentation at the time of entry)
it shall be provided to the Customs Service within a reasonable time after demand for its production is made, taking
into consideration the number, type, and age of the item
demanded; and
"(B) if a person of whom demand is made under
subparagraph (A) fails to comply with the demand, the
person may be subject to penalty imder subsection (g);";
(C) by amending that part of paragraph (2) that precedes subparagraph (D) to read as follows:
"(2) summon, upon reasonable notice—
"(A) the person who—
"(i) imported, or knowingly caused to be imported,
merchandise into the customs territory of the United
Stetes,
"(ii) exported merchandise, or knowingly caused
merchandise to be exported, to Canada,
"(iii) transported or stored merchandise that was
or is carried or held imder customs bond, or knowingly
caused such transportetion or storage, or
"(iv) filed a declaration, entry, or drawback claim
with the Customs Service;
"(B) any officer, employee, or agent of any person
described in subparagraph (A);

107 STAT. 2176

PUBLIC LAW 103-182—DEC. 8, 1993
"(C) any person having possession, custody or care
of records relating to the importation or other activity
described in subparagraph (A); or"; and
(D) by striking out the comma at the end of subparagraph (D) and inserting a semicolon.
(2) Subsections (b) and (c) are redesignated as subsections
(c) and (d), respectively.
(3) The following new subsection is inserted after subsection
(a):
"(b) REGULATORY AUDIT PROCEDURES.—

Reports.

"(1) In conducting a regulatory audit under this section
(which does not include a quantity verification for a customs
bonded warehouse or general purpose foreign trade zone), the
Customs Service auditor shall provide the person being audited,
in advance of the audit, with a reasonable estimate of the
time to be required for the audit. If in the course of an audit
it becomes apparent that additional time will be required, the
Customs Service auditor shall immediately provide a fiuther
estimate of such additional time.
"(2) Before commencing an audit, the Customs Service auditor shall inform the party to be audited of his right to an
entry conference at which time the purpose will be explained
and an estimated termination date set. Upon completion of
on-site audit activities, the Customs Service auditor shall schedule a closing conference to explain the preliminary results
of the audit.
"(3) Except as provided in paragraph (5), if the estimated
or actual termination date for an audit passes without the
Customs Service auditor providing a closing conference to
explain the results of the audit, the person being audited may
petition in writing for such a conference to the appropriate
regional commissioner, who, upon receipt of such a request,
shall provide for such a conference to be held within 15 days
after the date of receipt.
"(4) Except as provided in paragraph (5), the Customs
Service auditor shall complete the formal written audit report
within 90 days following the closing conference unless the
appropriate regional commissioner provides written notice to
the person being audited of the reason for any delay and
the anticipated completion date. After application of any exemption contained in section 552 of title 5, United States Code,
a copy of the formal written audit report shall be sent to
the person audited no later than 30 days following completion
of the report.
"(5) Paragraphs (3) and (4) shall not apply after the Customs Service commences a formal investigation with respect
to the issue involved.".
(4) Subsection (d) (as redesignated by paragraph (2)) is
amended—
(A) by striking out "statements, declarations, or documents" in paragraph (IXA) and inserting "those";
(B) by inserting ", unless such customhouse broker
is the importer of record on an entry" after "broker" in
paragraph (IXCXi);
(C) by striking out "import" in each of paragraphs
(2XB)and(4XB);

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2177

(D) by inserting "described in section 508" after "transactions" in each of paragraphs (2XB) and (4XB); and
(E) by inserting **, fees," after "duties" in paragraph
(4XA).
(5) The following new subsections are added at the end
thereof:
"(e) LIST OF RECORDS AND INFORMATION.—The Customs Service
shall identify and publisjti a list of the records or entry information
that is required to be maintained and produced under subsection
(aXlXA).
"(f) RECORDKEEPING COMPLIANCE PROGRAM,—

"(1) IN GENERAL.^After consultation with the importing Regulations.
commimity, the Customs Service shall by regulation establish
a recordkeeping compliance program which the parties listed
in section 508(a) may participate in after being certified by
the Customs Service; under paragraph (2). Participation in the
recordkeeping compliance program by recordkeepers is voluntary.
"(2) CERTIFICATION.—^A recordkeeper may be certified as
a participant in the recordkeeping compliance program after
meeting the general recordkeeping requirements established
under the program or after negotiating an alternative program
suited to the needs of the recordkeeper and the Customs Service. Certification requirements shall take into account the size
and nature of the im];)orting business and the volume of imports.
In order to be certified, the recordkeeper miist be able to
demonstrate that it—
"(A) understands the legal requirements for recordkeeping, including the nature of the records required to
be maintained and produced and the time periods involved;
"(B) has in place procedures to explain the recordkeeping reqmrements to those employees who are involved
in the preparation, maintenance, and production of
required records;
"(C) has in place procedures regarding the preparation
and maintenance of required records, and the production
of such records to the Customs Service;
"(D) has designated a dependable individual or individuals to be responsible for recordkeeping compliance under
the pro-am and whose duties include maintaining familiarity with the recordkeeping requirements of the Customs
Service;
"(E) has a record maintenance procedure approved by
the Customs Slervice for original records, or, if approved
by the Customs Service, for alternative records or recordkeeping formats other than the original records; and
"(F) has procedures for notifving the Customs Service
of occurrences of variances to, and violations of, the requirements of the recordkeeping compliance program or the
negotiated alternative programs, and for taking corrective
action when notified by the Customs Service of violations
or problems regarding such program.
"(g) PENALTIES,—

"(1) DEFINITION.—^For purposes of this subsection, the term
'information' means any record, statement, declaration, document, or electronically stored or transmitted information or
data referred to in subsection (aXlXA).

107 STAT. 2178

PUBLIC LAW 103-182—DEC. 8, 1993
"(2) EFFECTS OF FAILURE TO COMPLY WITH DEMAND.—Except

^

as provided in paragraph (4), if a person fails to comply with
a lawful demand for information under subsection (aXlXA)
the following provisions apply:
"(A) If the failure to comply is a result of the willful
feulure of the person to maintain, store, or retrieve the
demanded information, such person shall be subject to
a penalty, for each release of merchandise, not to exceed
$100,000, or an amount equal to 75 percent of the appraised
value of the merchandise, whichever amount is less.
''(B) If the failure to comply is a result of the negligence
of the person in maintaining, storing, or retrieving the
demanded information, such person shall be subject to
a penalty, for each release of merchandise, not to exceed
$10,000, or an amount equal to 40 percent of the appraised
value of the merchandise, whichever amoimt is less.
"(C) In addition to any penalty imposed under subparagraph (A) or (B) regeirding demanded information, if such
information related to the eligibility of merchandise for
a column 1 special rate of duty under title I, the entry
of such merchandise—
"(i) if imliquidated, shall be liquidated at the
applicable colimm 1 general rate of duty; or
"(ii) if liquidated within the 2-year period preceding the date of the demand, shall be reUquidated,
notwithstanding the time limitation in section 514 or
520, at the applicable column 1 general rate of duty;
except that any liquidation or reliquidation under clause
(i) or (ii) shall be at the applicable column 2 rate of duty
if the Customs Service demonstrates that the merchandise
should be dutiable at such rate.
"(3) AVOIDANCE OF PENALTY.—^No penalty may be assessed
under this subsection if the person can show—
"(A) that the loss of the demanded information was
the result of an act of God or other natural casualty or
disaster beyond the fault of such person or an agent of
the person;
"(B) on the basis of other evidence satisfactory to the
Customs Service, that the demand was substantially complied with; or
"(C) the information demanded was presented to and
retained by the Customs Service at the time of entry or
submitted in response to an earlier demand.
"(4) PENALTIES NOT EXCLUSIVE.—Any penalty imposed
under this subsection shall be in addition to any other penalty
provided by law except for—
"(A) a penalty imposed under section 592 for a material
omission of the demanded information, or
"(B) disciplinary action taken under section 641.
"(5) REMISSION OR MITIGATION.—A penalty imposed under
this section may be remitted or mitigated under section 618.
"(6) CUSTOMS SUMMONS.—^Nothing in this subsection shall
limit or preclude the Customs Service from issuing, or seeking
the enforcement of, a customs summons.
"(7) ALTERNATIVES TO PENALTIES.—

"(A) IN GENERAL.—^When a recordkeeper who—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2179

"(i) has been certified as a participant in the
recordkeeping compliance program under subsection
(f);and
"(ii) is generally in compliance with the appropriate proc(3dures and reouirements of the program;
does not produise a demanded record or information for
a specific release or provide the information by acceptable
alternative means, tne Customs Service, in the absence
of willfulness or repeated violations, shall issue a written
notice of the violation to the recordkeeper in lieu of a
monetary penalty. Repeated violations by the recordkeeper
may result in the issuance of penalties and removal of
certification under the program until corrective action,
satisfactory to the Customs Service, is taken.
"(B) CONTEfJTS OF NOTICE.—^A notice of violation issued
under subparagi*aph (A) shall—
"(i) state that the recordkeeper has violated the
recordkeeping requirements;
"(ii) indicate the record or information which was
demanded; and
"(iii) warn the recordkeeper that future failures
to produce demanded records or information may result
in the imposition of monetary penalties.
"(C) RESPONSE TO NOTICE.—^within a resisonable time
after receiving ¥nritten notice vmder subparagraph (A), the
recordkeeper shall notify the Customs Service of the steps
it has taken to prevent a recurrence of the violation.
"(D) REGULATIONS.—The Secretary shall promulgate
regulations to implement this paragraph. Such regulations
may specify the time periods for compliance with a demand
for information and provide guidelines which define
repeated violations for purposes of this paragraph. Any
penalty issued for a recordkeeping violation shall take into
account the degree of compliance compared to the total
number of importations, the nature of the demanded
records and the recordkeeper's cooperation.".
SEC. 616. JUDICIAL ENFORCEMENT.
The second sentence of section 510(a) (19 U.S.C. 151(Ka)) is
amended by inserting "and such court may assess a monetary
penalt3r** after "as a contempt thereoP.
SEC. 617. REVIEW OF PROI^STS.
Section 515 (19 U.S.C. 1515) is amended by inserting at the
end the following new sulssections:
"(c) If a protesting party believes that an application for further
review was erroneously or improperly denied or was denied without
authority for such action, it may nle with the Commissioner of
Customs a written request that the denial of the application for
further review be set aside. Such request must be filed within
60 days after the date of the notice of the denial. The Commissioner
of Customs may review such request and, based solely on the
information before the Customs Service at the time the application
for further review was denied, may set aside the denial of the
application for further review and void the denial of protest, if
appropriate. If the Commissioner of Customs fails to act within
60 days after the date of the request, the request shall be considered
denied. All denials of protests are effective irom the date of original

107 STAT. 2180

PUBLIC LAW 103-182—DEC. 8, 1993

denial for purposes of section 2636 of title 28, United States Code.
If an action is commenced in the Court of International Trade
that arises out of a protest or an application for further review,
all administrative action pertaining to such protest or application
shall terminate and any administrative action taken subsequent
to the commencement of the action is null and void.
"(d) If a protest is timely and properly filed, but is denied
contrary to proper instructions, the Customs Service may on its
own initiative, or pursuant to a written request by the protesting
party filed with tne appropriate district director within 90 days
after the date of the protest denial, void the denial of the protest.".
SEC. 618. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON
ACCOUNT OF FRAUD.

Section 521 (19 U.S.C. 1521) is repealed.
SEC. 619. PENALTIES RELATING TO MANIFESTS.

Section 584 (19 U.S.C. 1584) is amended—
(1) by amending subsection (a)—
(A) by striking out "appropriate customs officer" wherever it appears and inserting "Customs Service",
(B) by striking out "officer demanding the same" in
paragraph (1) and inserting "officer (whether of the Customs Service or the Coast Guard) demanding the same",
and
(C) by inserting "(electronically or otherwise)" after
"submission" in the last sentence of paragraph (1); and
(2) by amending subsection (b)—
(A) by striking out "the appropriate customs officer",
"he" (except in paragraph (IXF)), and "such officer" wherever thev appear and inserting "the Customs Service",
(B) by striking out "written" wherever it appears (other
than paragraph (IXF)),
(C) by inserting "or electronically transmit" after
"issue" wherever it appears, and
(D) by striking out "his intention" in the first sentence
of paragraph (1) and inserting "intent".
SEC. 620. UNLAWFUL UNLADING OR TRANSSmPMENT.

Section 586 (19 U.S.C. 1586) is amended—
(1) by inserting ", or of a hovering vessel which has received
or delivered merchandise while outside the territorial sea,"
after "from a foreign port or place" wherever it appears; and
(2) by amending subsection (f)—
(A) by striking out "the appropriate customs officer
of the" and "the appropriate customs officer within the"
and inserting "the Customs Service at the"; and
(B) by striking out "the appropriate customs officer
is" and inserting "the Customs Service is".
SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGUGENCE; PRIOR DISCLOSURE.

Section 592 (19 U.S.C. 1592) is amended—
(1) by inserting "or electronically transmitted data or
information" after "document" in subsection (aXlXAXi);
(2) by inserting "The mere nonintentional repetition by
an electronic system of an initial clerical error does not con-

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2181

stitute a pattern of negligent conduct." at the end of subsection
(aX2);
(3) by amending subsection G))—
(A) by amending the first sentence of paragraph
(IXA)(i) by striking out "the appropriate customs officer"
and inserting "the Customs Service",
(ii) by striking out "he" and inserting "it", and
(iii) by striking out "his" and inserting "its", and
(B) by amending paragraph (2)—
(i) by striking out "the appropriate customs officer"
wherever it appears and inserting "the Customs Service",
(ii) by striking out "such officer" wherever it
appears and inserting "the Customs Service", and
(iii) by striking out "he" wherever it appears and
inserting "it";
(4) by amending subsection (cX4)—
(A) by striking "time of disclosure or within thirty
days, or such longer period as the appropriate customs
officer may provide, after notice by the appropriate customs
officer of his" in subparagraph (AXi) and by striking out
"time of disclosure in 30 days, or such longer period as
the appropriate! customs officer may provide, after notice
by the appropriate customs officer of his" in subparagraph
(B), and inserting in each place "time of disclosure, or
within 30 days (or such longer period as the Customs
Service may provide) after notice by the Customs Service
of its"; and
(B) by inserting after the last sentence the following:
"For purposes of uiis section, a formal investigation of
a violation is considered to be commenced with regard
to the disclosing party and the disclosed information on
the date recorded in writing by the Customs Service as
the date on which facts and circumstances were discovered
or information was received which caused the Customs
Service to believe that a possibility of a violation of subsection (a) existed."; and
(5) by amending subsection (d)—
(A) by striking out "the appropriate customs officer^
and inserting "the Customs Service",
(B) by striking out "duties" wherever it appears and
inserting "duties, taxes, or fees", and
(C) by inserting ", TAXES OR FEES" after "DUTIES"
in the sideheading.
SEC. 622. PENALTIES FOR FALSE DRAWBACK CLAIMS.

(a) AMENDMENT.—Part V of title IV is amended by inserting
after section 593 the following new section:
'^EC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.
"(a) PROHIBITION.—
"(1) GENERAL RULE.—^No person, by fraud, or

negligence—
"(A) may seek, induce or affect, or attempt to seek,
induce, or affect, the pajnoient or credit to that person
or others of any drawback claim by means of—

19 USC 1593a.

107 STAT. 2182

PUBLIC LAW 103-182—DEC. 8, 1993
**(i) any document, written or oral statement, or
electronically transmitted data or information, or act
which is material and false, or
"(ii) any omission which is material; or
"(B) may aid or abet any other person to violate
subparagraph (A).
"(2) EXCEPTION.—Clerical errors or mistakes of fact are
not violations of paragraph (1) unless they are part of a pattern
of negligent conduct. The mere nonintentional repetition by
an electronic system of an initial clerical error does not constitute a pattern of negligent conduct.
**(b) PROCEDURES.—
"(1) PREPENALTY NOTICE.—

"(A) IN GENERAL.—If the Customs Service has reasonable cause to believe that there has been a violation of
subsection (a) and determines that further proceedings are
warranted, the Customs Service shall issue to the person
concerned a written notice of intent to issue a claim for
a monetary penalty. Such notice shall—
"(i) identify the drawback claim;
"(ii) set forth the details relating to the seeking,
inducing, or affecting, or the attempted seeking, inducing, or £iffecting, or the aiding or procuring of, the
drawback claim;
**(iii) specify all laws and regulations allegedly violated;
"(iv) disclose all the material facts which establish
the alleged violation;
**(v) state whether the alleged violation occurred
as a result of fraud or negligence;
"(vi) state the estimated actual or potential loss
of revenue due to the drawback claim, and, taking
into accoimt all circumstences, the amount of the proposed monetery penalty; and
"(vii) inform such person that he shall have a
reasonable opportunity to make representations, both
oral and written, as to why a claim for a monetorv
penalty should not be issued in the amount steted.
*(B) EXCEPTIONS.—The Customs Service may not issue
a prepenalty notice if the amount of the penalty in the
penalty claim issued under paragraph (2) is $1,000 or
less. In such cases, the Ciistoms Service may proceed
directly with a penalty claim.
"(U) PRIOR APPROVAL.—^No prepenalty notice in which
the alleged violation occurred as a result of fraud shall
be issued without the prior approval of Customs Headquarters.
(2) PENALTY CLAIM.—^After considering representetions, if
any, made by the person concerned pursuant to the notice
issued under paragraph (1), the Customs Service shall determine whether any violation of subsection (a), as alleged in
the notice, has occurred. If the Customs Service determines
that there was no violation, the Customs Service shall promptly
issue a written stetement of the determination to the person
to whom the notice was sent. If the Customs Service determines
that there was a violation. Customs shall issue a written penalty claim to such person. The written penalty claim shall

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2183

specify all changes in the information provided under clauses
(i) through (vii) of paragraph (IXA). Such person shall have
a reasonable opportunity imder section 618 to make representations, both oral £md written, seeking remission or mitigation
of the monetary penalty. At the conclusion of any proceeding
under section 618, the Customs Service shall provide to the
person concerned a written statement which sets forth the
final determination, and the findings of fact and conclusions
of law on which such determination is based.
"(c) MAXIMUM PENALTIES.—

"(1) FRAUD.—^A fraudulent violation of subsection (a) of
this section is pimishable by a civil penalty in an amoimt
not to exceed 3 times the actual or potential loss of revenue.
"(2) NEGLIGENCE.—

"(A) IN GENERAL.—A negligent violation of subsection
(a) is pimishable by a civil penalty in an amount not
to exceed 20 percent of the actual or potential loss of
revenue for the 1st violation.
"(B) REPETITIVE VIOLATIONS.—If the Customs Service
determines that a repeat negligent violation occurs relating
to the same issue, the penalty amount for the 2d violation
shall be in an amount not to exceed 50 percent of the
total actu£d or potential loss of revenue. The penalty
amount for each succeeding repetitive negligent violation
shall be in an amount not to exceed the actual or potential
loss of revenue. If the same party commits a nonrepetitive
violation, that violation shall be subject to a penalty not
to exceed 20 percent of the actual or potential loss of
revenue.
"(3) PRIOR DISCLOSURE.—

"(A) IN GENERAL.—Subject to subparagraph (B), if the
person concerned discloses the circumstances of a violation
of subsection (a) before, or without knowledge of the
commencement of, a formal investigation of such violation,
the monetary penalty assessed under this subsection may
not exceed—
"(i) if the violation resulted from fraud, an amount
equal to the actual or potential revenue of which the
United States is or may be deprived as a result of
overpajnment of the claim; or
"(ii) if the violation resulted from negligence, an
amount equal to the interest computed on the basis
of the prevailing rate of interest applied under section
6621 of the Internal Revenue Code of 1986 on the
amount of actual revenue of which the United States
is or may be deprived during the period that—
"(I) l)egins on the date of the overpayment
of the claim; and
"(II) ends on the date on which the person
concerned tenders the amount of the overpayment.
"(B) CONDITION AFFECTING PENALTY LIMITATIONS.—The

limitations in subparagraph (A) on the amount of the monetary penalty to be assessed under subsection (c) apply
only if the person concerned tenders the amount of the
overpayment made on the claim at the time of disclosure,
or within 30 days (or such longer period as the Customs

107 STAT. 2184

PUBLIC LAW 103-182—DEC. 8, 1993

Service may provide), after notice by the Customs Service
of its calculation of the amount of the overpayment.
"(C) BURDEN OF PROOF.—^The person asserting lack
of knowledge of the commencement of a formal investigation has the burden of proof in establishing such lack
of knowledge.
"(4) COMMENCEMENT OF INVESTIGATION.—For purposes of
this section, a formal investigation of a violation is considered
to be commenced with regard to the disclosing party and the
disclosed information on the date recorded in writing by the
Customs Service as the date on which facts and circumstances
were discovered or information was received which caused the
Customs Service to believe that a possibility of a violation
of subsection (a) existed.
"(5) EXCLUSIYITY.—Penalty cledms imder this section shall
be the exclusive civil remedy for any drawback related violation
of subsection (a).
"(d) DEPRIVATION OF LAWFUL REVENUE.—Notwithstanding section 514, if the United States has been deprived of lawful duties
and taxes resulting from a violation of subsection (a), the Customs
Service shall require that such duties and taxes be restored whether
or not a moneta^ penalty is assessed.
**(e) DRAWBACK COMPLIANCE PROGRAM.—

"(1) IN GENERAL.—^After consultation with the drawback
trade community, the Customs Service shall establish a drawback compliance program in which claimants and other parties
in interest may participate after being certified by the Customs
Service imder paragraph (2). Participation in the drawback
compliance program is volimtary.
"(2) CERTIFICATION.—A party may be certified as a participant in the drawback compliance program after meeting the
general requirements established under the program or after
negotiating an alternative program suited to the needs of the
party and the Customs Service. Certification requirements shall
take into account the size and nature of the party's drawback
program and the volume of claims. In order to be certified,
the participant must be able to demonstrate that it—
"(A) understands the legal requirements for filing
claims, including the nature of the records required to
be maintained and produced and the time periods involved;
"(B) has in place procedures to explain the Customs
Service requirements to those employees that are involved
in the preparation of claims, and the maintenance and
production of required records;
"(C) h£U3 in place procedures regarding the preparation
of claims and maintenance of required records, and the
production of such records to the Customs Service;
"(D) has designated a dependable individual or individuals to be responsible for compliance under the program
and whose duties include maintaining familiarity with the
drawback requirements of the Customs Service;
"(E) has a record maintenance procedure approved by
the Customs Service for original records, or, if approved
by the Customs Service, for alternate records or recordkeeping formats other than the original records; and
"(F) has procedures for notiMng the Customs Service
of variances to, and violations of, the requirements of the

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2185

drawback compliance program or any negotiated alternative programs, and for taking corrective action when
notified by the Customs Service for violations or problems
regarding such program,
"(f) ALTERNATIVES TO PENALTIES.—

"(1) IN GENERAL.—When a party t h a t ^
"(A) has been certified as a participant in the drawback
compliance program under subsection (e); and
"(B) is generally in compliance with the appropriate
procedures and requirements of the program;
commits a violation of subsection (a), the Customs Service,
shall, in the absence of firaud or repeated violations, and in
lieu of a monetaiy penalty, issue a written notice of the violation
to the party. Repeatisd violations by a party may result in
the issuance of penalties and removal of certification under
the program until corrective action, satisfactory to the Customs
Service, is taken.
**(2) CONTENTS OF NOTICE.—^A notice of violation issued

under paragraph (1) shall—
''(A) state that the party has violated subsection (a);
"(B) explain the nature of the violation; and
**(C) warn the party that fixture violations of subsection
(a) may result in the imposition of monetary penalties.
"(3) RESPONSE TO NOTICE.—Within a reasonable time aft«r
receiving written notice imder paragraph (1), the party shall
notify the Customs Service of the steps it has taken to prevent
a recurrence of the violation.
"(g) REPETITIVE VIOLATIONS.—

"(1) A party who has been issued a written notice under
subsection (fXl) and subsequently commits a repeat negligent
violation involving the same issue is subject to the following
monetary penalties:
"(A) 2 D VIOLATION.—^An amount not to exceed 20 percent of the loss of revenue.
"(B) 3RD VIOLATION.—An amount not to exceed 50 percent of the loss of revenue.
"(C) 4TH AND SUBSEQUENT VIOLATIONS.—An amoimt

not to exceed 100 percent of the loss of revenue.
"(2) If a party that has been certified as a participant
in the drawback compliance program under subsection (e) commits an alleged violation which was not repetitive, the party
shall be issued a 'warning letter*, and, for any subsequent
violation, shall be subject to the same maximum penalty
amounts stated in paragraph (1).
"(h) REGULATION.—^The Secretary shall promulgate regulations
and guidelines to implement this section. Such regulations shall
specify that for piirposes of subsection (g), a repeat negligent violation involving the same issue shall be treated as a repetitive violation for a maximum period of 3 years.
"(i) COURT OF INTERNATIONAL TRADE PROCEEDINGS.—Notwith-

st£inding any other provision of law, in any proceeding commenced
by the United States in the Court of International Trade for the
recovery of any monetarj^ penalty claimed under this section—
"(1) all issues, including the amount of the penalty, shall
be tried de novo;

107 STAT. 2186

19 u s e 1593a
note.

PUBLIC LAW 103-182—DEC. 8, 1993

"(2) if the monetary penalty is based on fraud, the United
States shall have the burden of proof to estabUsh the alleged
violation by clear and convincing evidence; and
"(3) if the monetary penalty is based on negligence, the
United States shall have the burden of proof to establish the
act or omission constituting the violation, and the alleged violator shall have the burden of providing evidence that the act
or omission did not occur as a result of negligence.",
(b) EFFECTIVE DATE.—^The amendment made by subsection (a)
applies to drawback claims filed on and after the nationwide operational implementation of an automated drawback selectivity program by the Customs Service. The Customs Service shall publish
notice of this date in the Customs Bulletin.
SEC. 623. DfTERPRETIVE RULINGS AND DECISIONS: PUBUC INFORMATION.

Section 625 (19 U.S.C. 1625) is amended to read as follows:
'^EC. 625. INTERPRETIVE RULINGS
INFORMATION.

Regulations.

Effective date.

AND

DECISIONS;

PUBUC

"(a) PUBLICATION.—Within 90 days after the date of issuance
of any interpretive ruling (including any ruling letter, or internal
advice memorandimi) or protest review decision under this chapter
with respect to any customs transaction, the Secretary shall have
such ruling or decision published in the Customs Bulletin or shall
otherwise make such ruling or decision available for public inspection.
**(b) APPEALS.—^A person may appeal an adverse interpretive
ruling and any interpretation of any regulation prescribed to implement such ruling to a higher level of authority within the Customs
Service for de novo review. Upon a reasonable showing of business
necessity, any such appeal shall be considered and decided no
later than 60 days following the date on which the appeal is
filed. The Secretary shall issue regulations to implement this subsection.
"(c) MODIFICATION AND REVOCATION.—A proposed interpretive
ruling or decision which would—
"(1) modify (other than to correct a clerical error) or revoke
a prior interpretive ruling or decision which has been in effect
for at least 60 days; or
"(2) have the effect of modifying the treatment previously
accorded by the Customs Service to substantially identical
transactions;
shall be published in the Customs Bulletin. The Secretary shall
give interested parties an opportunity to submit, during not less
than the 30-day period after the date of such publication, comments
on the correctness of the proposed ruling or decision. After consideration of any comments received, the Secretary shall publish a
final ruling or decision in the Customs Bulletin within 30 days
after the closing of the comment period. The final ruling or decision
shall become effective 60 days after the date of its publication.
"(d) PUBLICATION OF CUSTOMS DECISIONS THAT LIMIT COURT

DECISIONS.—A decision that proposes to limit the application of
a court decision shall be publisned in the Customs Bulletin together
with notice of opportunity for public comment thereon prior to
a final decision.
"(e) PUBLIC INFORMATION.—^The Secretary may make available
in writing or through electronic media, in an efficient, comprehen-

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2187

sive and timely manner, all information, including directives, memoranda, electronic messages and telexes which contain instructions,
requirements, methods or advice necessary for importers and
exporters to comply with the Customs laws and regulations. All
information whicn may be made available pursuant to this subsection shall be subject to any exemption from disclosure provided
by section 552 of title 5, United States Code.".
SEC. 624. SEIZURE AUTHORTTY.

Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as follows:
''(c) Merchandise which is introduced or attempted to be introduced into the United States contrary to law shall be treated
as follows:
"(1) The merchandise shall be seized and forfeited if it—
"(A) is stolen, smuggled, or clandestinely imported or
introduced;
"(B) is a controlled substance, as defined in the Controlled Substances Act (21 U.S.C. 801 et seq.), and is not
imported in accordance with applicable law; or
"(C) is a contraband article, as defined in section 1
of the Act of August 9,1939 (49 U.S.C. App. 781).
"(2) The merchandise may be seized and forfeited if—
**(A) its importation or entry is subject to any restriction
or prohibition which is imposed by law relating to health,
safety, or consiirvation and the merchandise is not in
compliance with the applicable rule, regulation, or statute;
"(B) its importation or entry requires a license, permit
or other author! zation of an agency of the United States
Government and the merchsuidise is not accompanied by
such license, permit, or authorization;
"(C) it is merchandise or packaging in which copjrright,
trademark, or trade name protection violations are involved
(including, but not limitea to, violations of section 42, 43,
or 45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125,
or 1127), section 506 or 509 of title 17, United States
Code, or section 2318 or 2320 of title 18, United States
Code);
"(D) it is trade dress merchandise involved in the violation of a court order citing section 43 of such Act of July
5,1946(15U.S.C. 1125);
"(E) it is merchandise which is marked intentionally
in violation of section 304; or
"(F) it is merchandise for which the importer has
received written notices that previous importations of identical merchandise from the same supplier were found to
have been marke d in violation of section 304.
"(3) If the importation or entry of the merchandise is subject
to quantitative restrictions requiring a visa, permit, license,
or other similar document, or stamp from the United States
Government or from a foreign government or issuing authority
pursuant to a bilateral or multilateral agreement, the merchandise shall be subject to detention in accordance with section
499 unless the appropriate visa, license, permit, or similar
document or stamp is presented to the Customs Service; but
if the visa, permit, license, or similar document or stamp which
is presented in connection with the importation or entry of

107 STAT. 2188

PUBLIC LAW 103-182—DEC. 8, 1993
the merchandise is counterfeit, the merchandise may be seized
and forfeited.
"(4) If the merchandise is imported or introduced contrary
to a provision of law which governs the classification or value
of merchandise and there are no issues as to the admissibility
of the merchandise into the United States, it shall not be
seized except in accordance with section 592.
"(5) In any case where the seizure and forfeiture of merchandise are required or authorized by this section, the Secretary may—
**(A) remit the forfeiture under section 618, or
"(B) permit the exportation of the merchandise, imless
its release would adversely affect health, safety, or conservation or be in contravention of a bilateral or multilateral agreement or treaty.".

Subtitle B—^National Customs Automation
Program
SEC. 631. NATIONAL CUSTOMS AUTOMATION PROGRAM.

Part I of title IV is amended—
(1) by striking out

i9uscprec

**PART I—DEFrNTTIONS

14U1.

and inserting

"PART I—DEFINITIONS AND NATIONAL
CUSTOMS AUTOMATION PROGRAM
"Subpart A—^Definitions";
and
(2) by inserting after section 402 the following:

"Subpart B—^National Customs Automation
Program
19 use 1411.

"SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.
"(a) ESTABUSHMENT.—The Secretary shall establish the
National Customs Automation Program (hereinafter in this subpart
referred to as the Trogram') which shall be an automated and
electronic system for processing commercial importations and shall
include the following existing and planned components:
"(1) Existing components:
"(A) The electronic entry of merchandise.
"(B) The electronic entry summary of required information.
**(C) The electronic transmission of invoice information.
"(D) The electronic transmission of manifest information.
"(E) Electronic pajrments of duties, fees, and taxes.
"(F) The electronic status of liquidation and reliquidation.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2189

"(G) The electronic selection of high risk entries for
examination (cargo selectivity and entry summary selectivity).
"(2) Planned components:
"(A) The electronic filing and status of protests.
"(B) The electronic filing (including remote filing under
section 414) of entry information with the Customs Service
at any location.
"(C) The electronic filing of import activity summary
statements and reconciliation.
"(D) The electronic filing of bonds.
"(E) The electronic pencuty process.
"(F) The electronic filing of drawback claims, records,
or entries.
"(G) Any other component initiated by the Customs
Service to carry out the goals of this subpart,
"(b) PARTICIPATION IN PROGRAM.—The Secretary shall by regu- Regulations.
lation prescribe the eligibility criteria for participation in the Program. Participation in the Program is voluntary.
"SEC. 412. PROGBAM GOALS.

19 USC 1412.

T h e goals of the Program are to ensure that all regulations
and rulings that are administered or enforced by the Customs
Service are administered and enforced in a manner that—
"(1) is imiform and consistent;
"(2) is as minimally intrusive upon the normal flow of
business activity as practicable; and
"(3) improves cc»mpliance.
<«EC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.
"(a) OVERALL PROGRAM PLAN.—

"(1) IN GENERAL.—Before the 180th day after the date
of the enactment of this Act, the Secretary shall develop and
transmit to the Committees an overall plan for the Program.
The overall Program plan shall set forth—
"(A) a general description of the ultimate configuration
of the Program;
"(B) a description of each of the existing components
of the Program listed in section 411(aXl); and
"(C) estimates regarding the stages on which planned
components of the Program listed in section 411(a)(2) will
be brought on-line.
"(2) ADDITIONAL INFORMATION.—In addition to the information required under paragraph (1), the overall Program plan
shall include a statement regarding—
"(A) the extent to which the existing components of
the Ptogram currently meet, and the planned components
will meet, the Program goals set forth in section 412;
and
"(B) the efliects that the existing components are currently having, £ind the effects that the planned components
will likely have, on—
(i) importers, brokers, and other users of the Program, and
"(ii) Customs Service occupations, operations, processes, and systems.
"(b) IMPLEMENTATION PLAN, TESTING, AND EVALUATION.—

19 USC 1413.

107 STAT. 2190

PUBLIC LAW 103-182—DEC. 8, 1993
"(1) IMPLEMENTATION PLAN.—For each of the planned
components of the Program listed in section 411(aX2), the Secretary shall—
"(A) develop an implementation plan;
"(B) test the component in order to assess its viability;
"(C) evaluate the component in order to assess its
contribution toward achieving the program ^oals; and
"(D) transmit to the Committees the implementation
plan, the testing results, and an evaluation report.
In developing an implementation plan under subparagraph (A)
and evaluating components under subparagraph (C), the Secretary shall publish a request for comments in the Customs
Bulletin and shall consult with the trade commimit^, including
importers, brokers, shippers, and other affected parties.
"(2) IMPLEMENTATION.—

"(A) The Secretary may implement on a permanent
basis any Program component referred to in paragraph
(1) on or after the date which is 30 days after paragraph
dXD) is complied with.
"(B) For purposes of subparagraph (A), the 30 days
shall be computed by excluding—
"(i) the days either House is not in session because
of an adjournment of more than 3 days to a day certain
or an ac(}oumment of the Congress sine die, and
"(ii) any Saturday and Sunday, not excluded under
*• •
clause (i), when either House is not in session.
"(3) EVALUATION AND REPORT.^The Secretary shall—
**(A) develop a user satisfaction sxirvey of parties
participating in the Program;
"(b) evaluate the results of the user satisfaction survey
on a biennial basis (fiscal years) and transmit a report
J
to the Committees on the evaluation by no later than
the 90th day after the close of each 2d fiscal year;
"(C) with respect to the existing Program component
listed in section 411(aXlXG) transmit to the Committees—
"(i) a written evaluation of such component before
the 180th day after the date of the enactment of this
section and before the implementation of tiie planned
Program components listed in section 411(aX2) (B) and
'
-'
(C),and
'
"(ii) a report on such component for each of the
3 full fiscal years occurring after the date of the enactment of this section, which report shall be transmitted
f
not later than the 90th day after the close of each
such year; and
"(D) not later than the 90th day after the close of
'
fiscal year 1994, and annually thereafter through fiscal
year 2000, transmit to the Committees a written evaluation
with respect to the implementation and effect on users
of each oi the planned Program components listed in section
411(aX2).
In carrying out the provisions of this paragraph, the Secretary
shall publish requests for comments in the Customs Bulletin
and shall consult with the trade community, including importers, brokers, shippers, and other affected parties.
"(c) • COMMITTEES.—^For purposes of this section, the term
'Committees' means the Committee on Ways and Means of the

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2191

House of Representatives and the Committee on Finance of the
Senate.
"SEC. 414. REMOTE LOCATION FILING.
"(a) CORE ENTRY INFORMATION.—

"(1) IN GENERAL.—^A Program participant may file electronically an entiy of merchandise with the Customs Service from
a location other than the district designated in the entry for
examination (hereafter in this section referred to as a 'remote
location') if—
"(A) the Customs Service is satisfied that the participant has the capabilities referred to in paragraph (2XA)
regarding such method of filing; £md
"(B) the participant elects to file from the remote location.
"(2) REQUIREMENirS.-

"(A) IN GENERAL.—In order to qualify for filing from
a remote location, a Program participant must have the
capability to provide, on an entry-by-entry basis, for the
following:
"(i) The electronic entry of merchandise,
"(ii) The electronic entry summary of reqmred
information.
"(iii) The electronic transmission of invoice
information (when required by the Customs Service),
"(iv) The electronic pa3mient of duties, fees, and
taxes.
"(v) Such other electronic capabilities within the
existing or planned components of the Program as
the Secretary shall by regulation require.
"(B) RESTRICTION ON EXEMPTION FROM REQUIRE-

MENTS.—^The Customs Service may not permit any exemption or waiver from the requirements established by this
section for participation in remote entry filing.
"(S) CONDITIONS ON FILING UNDER THIS SECTION.—The Secretary may prohibit a Program participant from participating
in remote location filing, and may remove a Program participant
from participation in remote location filing, if the participant—
"(i) fails to meet all the compliance requirements and
operational standards of remote location filing; or
"(ii) fails to eidhere to all applicable laws and regulations.
"(4) ALTERNATIVE FILING.—^Any Program participant that
is eligible to file entrjt information electronically from a remote
location but chooses not to do so in the case of £my entry
must file any paper documentation for the entry at the designated location referred to in subsection (d).
**(b) ADDITIONAL ENTRY INFORMATION.—

"(1) IN GENERAL.—^A Program participant that is eligible
under subsection (a) to file entiy information from a remote
location may, if the Customs Service is satisfied that the participant meets the requirements imder paragraph (2), also electronically file from the remote location additional information
that is required by the Customs Service to be presented before
the acceptance of entity summary information and at t^e time
of acceptance of entry summsiry information.

19 USC 1414.

107 STAT. 2192

PUBLIC LAW 103-182—DEC. 8, 1993
"(2) REQUIREMENTS.—The Secretaiy shall publish, and
periodically update, a list of those capabilities within the existing and planned components of the Program that a Program
participant must have for purposes of this subsection.
"(3) FlUNG OF ADDITIONAL INFORMATION.—
"(A) I F INFORMATION ELECTRONICALLY ACCEPTABLE.—

A Program participant that is eligible under paragraph
(1) to file additionsd information from a remote location
shall electronically file all such information that the Customs Service can accept electronically.
"(B) ALTERNATIVE FILING.—If the Customs Service cannot accept additional information electronically, the Program participant shall file the paper documentation with
respect to the information at the appropriate filing location.
"(C) APPROPRIATE LOCATION.—^For purposes of subparagraph (B), the 'appropriate location* is—
"(i) before January 1, 1999, a designated location;
and
"(ii) afl«r December 31,1998—
"(I) if the paper documentation is required
for release, a designated location; or
"(11) if the paper documentation is not required
'—
for release, a remote location designated by the
Customs Service or a designated location.
"(D) OTHER.—A Program participant that is eligible
imder paragraph (1) to file additional information electronically from a remote location but chooses not to do so
must file the paper docimientation with respect to the
information at a designated location.
"(c) POST-ENTRY SUMMARY INFORMATION.—A Program participant that is eligible to file electronically entry information under
subsection (a) and additional information under subsection (b) from
a remote location may file at any remote location designated by
the Customs Service any information required by the Customs
Service after entry summary.
"(d) DEFINITIONS.—As used in this section:
"(1) The term 'designated location' means a customs ofilce
located in the customs district designated by the entry filer
for purposes of customs examination of the merchandise.
"(2) The term *Program participant' means, with respect
to an entry of merchandise, any party entitled to make the
entry under section 484(aX2XB).''.
SEC. 632. DRAWBACK AND REFUNDS.

(a) AMENDMENTS.—Section 313 (19 U.S.C. 1313) is amended
as follows:
(1) Subsection (a) is amended—
(A) by inserting "or destruction under customs supervision" after "Upon the exportation";
(B) by inserting "provided that those articles have not
been used prior to such exportation or destruction," after
"manufactured or produced in the United States with the
use of imported merchandise,";
(C) by inserting "or destruction" after "refunded upon
the exportation"; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2193

(D) by striking out "wheat imported after ninety days
after the date of me enactment of this Act" and inserting
"imported wheat".
(2) Subsection (b) is amended—
(A) by striking out "duty-free or domestic merchandise"
and inserting "any other merchandise (whether imported
or domestic)";
(B) by inserting ", or destruction under customs supervision," after "there shall be allowed upon the exportation";
(C) by inserting "or destroyed" after "notwithstanding
the fact that none of the imported merchandise may actually have been used in the manufacture or production of
the exported";
(D) by inserting ", but only if those articles have not
been used prior to such exportation or destruction" after
"an amount of drawback equal to that which would have
been allowable had the merchandise used therein been
imported"; and
(E) by inserting "or destruction imder customs supervision" after "but the total amoimt of drawback allowed
upon the exportation".
(3) Subsection (c) is amended to read as follows:
"(c) MERCHANDISE NOT CONFORMING TO SAMPLE OR SPECIFICA-

TIONS.—^Upon the exportatiion, or destruction imder the supervision
of the Customs Service, of merchandise—
"(1) not conforming to sample or specifications, shipped
without the consent of the consignee, or determined to be
defective as of the time of importation;
"(2) upon which the duties have been paid;
"(3) which has been entered or withdrawn for consumption;
and
"(4) which, within 3 years after release from the custody
of the Customs Service, has been returned to the custody of
the Customs Service for exportation or destruction under the
supervision of the Customs Service;
the full amoimt of the duties paid upon such merchandise, less
1 percent, shall be refunded as drawback.".
(4) Subsection (j) is amended to read as follows:
"(j) UNUSED MERCHANDISE DRAWBACK.—

"(1) If imported merchandise, on which was paid any duty,
tax, or fee imposed imder Federal law because of its
importation—
"(A) is, before the close of the 3-year period beginning
on the date of importation—
"(i) exported, or
"(ii) destroyed under customs supervision; and
"(B) is not used within the United States before such
exportation or destruction;
then upon such exportation or destruction 99 percent of the
amount of each duty, tax, or fee so paid shall be refunded
as drawback. The exporter (or destroyer) has the right to claim
drawback under this paragraph, but may endorse such right
to the importer or any intermediate party.
"(2) If there is, with respect to imported merchandise on
which was paid any duty, tsix, or fee imposed under Federal
law because of its importation, any other merchandise (whether
imported or domestic), that—

107 STAT. 2194

PUBLIC LAW 103-182—DEC. 8, 1993
"(A) is commercially interchangeable with such
imported merchandise;
"(B) is, before the close of the 3-year period beginning
on the date of importation of the imported mercheindise,
either exported or destroyed under customs supervision;
and
"(C) before such exportation or destruction—
"(i) is not used Mrithin the United States, and
"(ii) is in the possession of, including ownership
while in bailment, in leased facilities, in transit to,
or in any other manner under the operational control
of, the party claiming drawback imder this paragraph,
if that party—
"(I) is the importer of the imported merchandise, or
"(II) received from the person who imported
and paid any duty due on the imported merchandise a certificate of delivery transferring to the
party the imported merchandise, commercially
interchangeable merchandise, or any combination
of imported and commercially interchangeable
merchandise (and any such transferred merchandise, regardless of its origin, will be treated as
the imported merchandise and any retained merchandise will be treated as domestic merchandise);
then upon the exportation or destruction of such other
merchandise the amount of each such duty, tax, and fee
paid regarding the imported merchandise shall be refunded
as drawback, but in no case mav the total drawback on
the imported merchandise, whether available under this
paragraph or any other provision of law or any combination
thereof, exceed 99 percent of that duty, tax, or fee.
**(3) The performing of any operation or combination of
operations (including, but not limited to, testing, cleaning,
repacking, inspecting, sorting, refurbishing, freezing, blending,
repairing, reworking, cutting, slitting, adjusting, replacing
components, relabelmg, disassembling, ana unpacking), not
amounting to manufacture or production for drawback purposes
under the preceding provisions of this section on—
"(A) the imported merchandise itself in cases to which
paragraph (1) applies, or
"(B) the commercially interchangeable merchandise in
cases to which paragraph (2) applies,
shall not be treated as a use of that merchandise for purposes
of applying paragraph (IXB) or (2X0).".
(5) Subsection (1) is amended by striking out "the fixing
of a time limit within which drawback entries or entries for
refund under any of the provisions of this section or section
309(b) shall be filed and completed," and inserting "the authority for the electronic submission of drawback entries".
(6) Subsection (p) is amended to read as follows:
"(p) SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.—

"(1) IN GENERAL.—^Notwithstanding any other provision of
this section, if—
"(A) an article (hereafter referred to in this subsection
as the 'exported article') of the same kind and quality
as a qualified article is exported;
••

C

•

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2195

"(B) the requirements set forth in paragraph (2) are
met; and
"(C) a drawback claim is filed regarding the exported
article;
the amoimt of the duties paid on, or attributable to, such
qualified article shall be refimded as drawback to the drawback
claimant.
"(2) REQUIREMENTS.—^The requirements referred to in paragraph (1) are as follows:
"(A) The exporter of the exported article—
"(i) manufactured or produced the qualified article
in a quantity equal to or greater than the quantity
of the exported article,
"(ii) purchased or exchanged, directly or indirectly,
the qualified article from a manufacturer or producer
described in subsection (a) or (b) in a quantity equal
to or greater than the quantity of the exported article,
"(iii) imported the qualified article in a quantity
equal to or greater than the quantity of the exported
article, or
"(iv) purchased or exchanged, directly or indirectly,
an imported qualified article from an importer in a
quantity equal to or greater than the quantity of the
exported article.
"(B) In the C£U3e of the requirement described in
subparagraph (AXii), the manufacturer or producer produced the qualified article in a quantity equal to or greater
than the quantity of the exported article.
"(C) In the case of the requirement of subparagraph
(AXi) or (AXii), the exported article is exported during
the period that the qualified article described in subparagraph (AXi) or (AXii) (whichever is applicable) is manufactured or produced, or within 180 days after the close of
such period.
"(D) In the case of the requirement of subparagraph
(AXi) or (AXii), the specific petroleimi refinery or production
facUity which made the qualified article concerned is identified.
"(E) In the case of the requirement of subparagraph
(AXiii) or (AXiv), the exported article is exported within
180 days after the date of entry of an imported qualified
article described in subparagraph (AXiii) or (AXiv) (whichever is appUcable).
"(F) Except as otherwise specifically provided in this
subsection, the drawback claimant complies with all
requirements of this section, including providing certificates which esteblish the drawback eligibility of articles
for which drawback is claimed.
"(G) The manufacturer, producer, importer, exporter,
and drawback claimant of the qualified article and the
exported article maintain all records required by regulation.
"(3) DEFINITION OF QUALIFIED ARTICLE, ETC.—For purposes
of this subsection—
"(A) The term 'qualified article' means an article—
*(i) described in—

69-194 O - 94 - 9 : QL. 3 Part 3

107 STAT. 2196

PUBLIC LAW 103-182—DEC. 8, 1993

. .

"(I) headings 2707, 2708, 2710, 2711, 2712,
2713, 2714, 2715, 2901, and 2902 of the Harmonized Tariff Schedule of the United States, or
"(ID headings 3901 through 3914 of such
Schedule (as such headings apply to liquids,
pastes, powders, granules, and flakes), and
(ii) which is—
"(I) manufactured or produced as described
in subsection (a) or (b) from crude petroleimi or
a petroleum derivative, or
"(II) imported duty-paid.
'
"(B) An exportea article is of the same kind and quality
as the qualified article for which it is substituted under
this subsection if it is a product that is commercially interchangeable with or referred to under the same eignt-digit
classification of the Harmonized Tariff Schedule of the
United States as the qualified article.
"(C) The term 'drawback claimant' means the exporter
of the exported article or the refiner, producer, or importer
of such article. Any person eligible to file a drawback
claim under this subparagraph may designate another person to file such cledm.
"(4) LIMITATION ON DRAWBACK.—The amount of drawback
payable under this subsection shall not exceed the amount
of drawback that would be attributable to the article—
"(A) manufactured or produced under subsection (a)
or (b) by the manufacturer or producer described in clause
(i) or (ii) of paragraph (2XA), or
"(B) imported under clause (iii) or (iv) of paragraph
(2XA).''.
(7) The following new subsections are inserted after subsection (p):
"(q) PACKAGING MATERIAL.—^Packaging material, when used
on or for articles or merchandise exported or destroyed under subsection (a), (b), (c), or (j), shall be eligible under such subsection
for refund, as drawback, of 99 percent of any duty, tax, or fee
imposed under Federal law on tne importation of such material,
"(r) FILING DRAWBACK CLAIMS.—

"(1) A drawback entry and all documents necessary to
complete a drawback claim, including those issued by the Customs Service, shall be filed or applied for, as applicable, within
3 years after the date of exportation or destruction of the
articles on which drawback is claimed, except that any landing
certificate required by regulation shall be filed within the time
limit prescribed in such regulation. Claims not completed within
the 3-year period shall be considered abandoned. No extension
will be gr£uited unless it is established that the Customs Service
was responsible for the untimely filing.
"(2) A drawback entry for refund filed pursuant to any
subsection of this section shall be deemed filed pursuant to
any other subsection of this section should it be determined
that drawback is not allowable under the entry as originally
filed but is allowable under such other subsection,
"(s) DESIGNATION OF MERCHANDISE BY SUCCESSOR.—

"(1) For purposes of subsection (b), a drawback successor
may designate imported merchandise used by the predecessor
before the date of succession as the basis for drawback on

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2197

articles manufactured by the drawback successor after the date
of succession.
"(2) For purposes of subsection (jX2), a drawback successor
may designate—
"(A) imported merchandise which the predecessor,
before tiie date of succession, imported; or
"(B) imported merchandise, commercially^ interchangeable merchandise, or any combination of imported and
commercially interchangeable merchandise for which the
successor received, before the date of succession, from the
person who imported and paid any duty due on the
imported merchandise a certificate of delivery transferring
to the successor such merchandise;
as the basis for drawback on merchandise possessed by the
drawback successor afler the date of succession.
"(3) For purposes of this subsection, the term 'drawback
successor* means an entity to which another entity (in this
subsection referred to as the 'predecessor*) has transferred by
written agreement, merger, or corporate resolution—
"(A) all or substantially all of the rights, privileges,
immunities, powers, duties, and liabilities of the predecessor; or
"(B) the assets and other business interests of a division, plant, or other business unit of such predecessor,
but only if in such transfer the value of the transferred
realty, personalty, and intangibles (other than drawback
rights, inchoate or otherwise) exceeds the value of all transferred drawback rights, inchoate or otherwise.
"(4) No drawback shall be paid under this subsection until
either the predecessor or the drawback successor (who shall
also certifyr that it has the predecessor's records) certifies that—
"(A) the transferred merchandise was not and will
not be claimed by the predecessor, and
"(B) the predecessor did not and will not issue any
certificate to any other person that would enable that person to cltdm drawback,
"(t) DRAWBACK CERTIFICATES.—^Any person who issues a certificate which would enable another person to claim drawback shall
be subject to the recordkeeping provisions of this chapter, with
the retention period beginning on the date that such certificate
is issued.
"(u) EuGiBiuTY OF ENTERED OR WITHDRAWN MERCHANDISE.—
Imported merchandise that has not been regularly entered or withdrawn for consumption shall not satisfy any requirement for use,
exportation, or destruction imder this section.
"(v) MULTIPLE DRAWBACK CLAIMS.—Merchandise that is
exported or destroyed to satisfy any claim for drawback shall not
be the basis of any other claim for drawback; except that appropriate
credit and deductions for claims covering components or ingredients
of such merchandise shall be made in computing drawback payments.".
(b) APPUCATION OF AMENDMENT TO FINISHED PETROLEUM

^

I9USCI313

DERIVATIVES.—Notwithstanding section 514 of the Tariff Act of »o*e
1930 (19 U.S.C. 1514) or anv other provision of law, the amendment
made by paragraph (6) of subsection (a) shall apply t o ^
(1) claims filed or liquidated on or after January 1, 1988,
and

107 STAT. 2198

Regulations.

PUBLIC LAW 103-182—DEC. 8, 1993

(2) claims that are unliquidated, under protest, or in litigation on the date of the enactment of tiiis Act.
SEC. 633. EFFECTIVE DATE OF RATES OF DUTY.
Section 315 (19 U.S.C. 1315) is amended—
(1) by Striking out "appropriate customs officer in the form
and manner prescribed by r^ulations of the Secretary of the
Treasury," in the first sentence of subsection (a) and inserting
"Customs Service by written, electronic or such other means
as the Secretary by regulation shall prescribe,";
(2) by striking out "ciistoms custodjr" in the first sentence
of subsection (b) and inserting "custody of the Customs Service";
and
}
(3) by striking out "paragraph 813" in subsection (c) and
inserting "chapter 98 of the Harmonized Tariff Schedule of
the United States".
SEC. 634. DEFINITIONS.

Section 401 (19 U.S.C. 1401) is amended—
(1) by amending subsection (k) to read as follows:
"(k) The term *hovering vessel* means—
"(1) any vessel which is found or kept off the coast of
the United States within or without the customs waters, if,
from the history, conduct, character, or location of the vessel,
it is reasonable to believe that such vessel is being used or
may be used to introduce or promote or facilitate the introduction or attempted introduction of merchandise into the United
States in violation of the laws of the United States; and
"(2) any vessel which has visited a vessel described in
paragraph (1)."; and
(2) by inserting at the end thereof the foUoMang new subsections:
"(n) The term 'electronic transmission' means the transfer of
data or information through an authorized electronic data intercheinge system consisting of, but not limited to, computer modems
and computer networks.
"(o) The term 'electronic entry* means the electronic transmission to the Customs Service of—
"(1) entry information required for the entry of merchandise, and
"(2) entry summary information required for the classification and appraisement of the merchandise, the verification
of statistical information, and the determination of compliance
with applicable law.
"(p) The term 'electronic data interchange system* means any
estabhshed mechanism approved by the Commissioner of Customs
through which information can be transferred electronically.
"^) The term 'National Customs Automation Program' means
the program established imder section 411.
"(r) The term 'import activity summary statement* refers to
data or information transmitted electronically to the Customs Service, in accordance with such regulations as the Secretary prescribes,
at the end of a specified period of time which enables the Customs
Service to assess properly the duties, taxes and fees on merchandise
imported during that period, collect accurate statistics and determine whether any other applicable requirement of law (other than
a requirement relating to release fi:t>m customs custody) is met.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2199

"(s) The term Reconciliation' means an electronic process, initiated at tiie request of an importer, under which the elements
of an entry, other than those elements related to the admissibility
of the merchandise, that are undetermined at the time of entry
summary are provided to the Customs Service at a later time.
A reconciliation is treated as an entry for purposes of liquidation,
reliquidation, and protest.".
SEC. 635. MANIFESTS.

Section 431 (19 U.S.C. 1431) is amended—
(1) hy amending subsections (a) and (b) to read as follows:
**(a) IN GENERAL.—^^Every vessel required to make entry under
section 434 or obtain clearance under section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91) shall have a
manifest that complies with the requirements prescribed imder
subsection (d).
**(b) PRODUCTION OF MANIFEST.—^Any manifest required by the
Customs Service shall Ibe signed, produced, delivered or electronically transmitted by the master or person in charge of the vessel,
aircraft, or vehicle, or by any other authorized agent of the owner
or operator of the vessel, aircraft, or vehicle in accordance with
the requirements prescribed under subsection (d). A manifest may
be supplemented b^r bill of lading data supplied by the issuer
of sucii bill. If any irregularity of omission or commission occurs
in any way in respect to any manifest or bill of lading data,
the owner or operator of the vessel, aircraft or vehicle, or any
party responsible for such irregularity, shall be liable for any fine
or penalty prescribed by law with respect to such irregularity.
The Customs Service may take appropriate action against any
of the parties.**; and
(2) by inserting after subsection (c) the following new subsection:
"(d) REGULATIONS.—

"(1) IN GENERAL,.-The Secretary shall by regulation—
"(A) speci^»r the form for, and the information and
data that must be contained in, the manifest required
by subsection (a);
"(B) allow, at the option of the individual producing
the manifest and subject to paragraph (2), letters and
documents shipments to be accounted for by summary
manifesting procedures;
"(C) prescriibe the manner of production for, and the
delivery for electronic transmittal of, the manifest required
by subsection (a); and
"(D) prescribe the manner for supplementing manifests
with bill of lading data under subsection (b).
"(2) LETTERS AND DOCUMENTS SHIPMENTS.—For purposes
of paragraph (IXB)—
**(A) the Customs Service may require with respect
to letters and documents shipments—
"(i) that they be segregated by country of origin,
and
"(ii) additional examination procedures that are
not necessary for individually manifested shipments;
"(B) standard letter envelopes and standard document
packs shall be segregated from larger document shipments
for purposes of customs inspections; and

107 STAT. 2200

PUBLIC LAW 103-182—DEC. 8, 1993
"(C) the term letters and documents' means—
"(i) data described in General Headnote 4(c) of
the Harmonized Tariff Schedule of the United States,
"(ii) securities and similar evidences of value
described in heading 4907 of such Schedule, but not
monetary instruments defined pursuant to chapter 53
of title 31, United States Code, and
"(iii) personal correspondence, whether on paper,
cards, photographs, tapes, or other media.".

SEC. 636. INVOICE CONTENTS.

Regulations.

Section 481 (19 U.S.C. 1481) is amended—
(1) by amending subsection (a)—
(A) by amending the matter preceding paragraph (1)
to read as follows: "IN GENERAL.—All invoices of merchandise to be imported into the United States and any electronic equivalent thereof considered acceptable by the Secretary in regulations prescribed under this section shall
set forth, in written, electronic, or such other form as
the Secretary shall prescribe, the following:",
(B) by amending paragraph (3) to read as follows:
"(3) A detailed description of the merchandise, including
the commercial name by which each item is known, the grade
or quality, and the marks, numbers, or sjonbols imder which
sold by the seller or manufacturer in the country of exportation,
together with the marks and numbers of the packages in which
the merchandise is packed;", and
(C) by amending paragraph (10) to read as follows:
**(10) Any other fact that the Secretary may by regulation
require as being necessary to a proper appraisement, examination and classification of tne merchandise. ;
(2) by amending subsection (c) to read as follows:
"(c) IMPORTER PROVISION OF INFORMATION.—Anv information
required to be set forth on an invoice may alternatively be provided
by any of the parties qualifying as an 'importer of record' imder
section 484(aX2XB) by such means, in such form or manner, and
within such time as the Secretary shall by regulation prescribe.";
and
(3) by inserting before the period at the end of subsection
(d) the following: and may allow for the submission or electronic transmission of partial invoices, electronic equivalents
of invoices, bills, or other documents or parts thereof, required
under this section".
SEC. 637. ENTRY OF MERCHANDISE.
(a) AMENDMENTS TO SECTION

1484) is amended to read as follows:

484.—Section 484 (19 U.S.C.

«SEC. 484. ENTRY OF MERCHANDISE.
"(a) REQUIREMENT AND T I M E . —

"(1) Except as provided in sections 490, 498, 552, 553,
and 336(j), one of the parties qualifying as 'importer of record'
under paragraph (2XB), either in person or by an agent authorized by the party in writing, shall, using reasonable care—
"(A) make entry therefor by filing with the Customs
Service—
"(i) such documentation or, pursuant to an electronic data interchange system, such information as

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2201

is necessary to enable the Customs Service to determine whether the merchandise may be released from
customs custody, and
"(ii) notification whether an import activity summary statement will be filed; and
"(B) complete the entry by filing with the Customs
Service the declared value, classification and rate of duty
applicable to tlie merchandise, and such other documentation or, piirsuant to an electronic data interchange system,
such other information as is necessary to enable the Customs Service to—
"(i) properly assess duties on the merchandise,
''(ii) collect accurate statistics with respect to the
merchandise, and
"(iii) determine whether any other applicable
requirement of law (other than a reqmrement relating
to release from customs custody) is met.
**(2XA) The docimientation or information required under Regulations.
paragraph (1) with respect to any imported merchandise shall
be filed or transmitted in such manner and within such time
periods as the Secretary shall by regulation prescribe. Such
regulations shall provide for the filing of import activity summary statements, (:x)vering entries or warehouse withdrawals
made during a calendar month, within such time period £is
is prescribed in regulations but not to exceed the 20th day
following such calendar month.
"(B) When an entry of merchandise is made under this
section, the reqmred documentation or information shall be
filed or electronically transmitted either by the owner or purchaser of the merchandise or, when appropriately designated
by the owner, purchaser, or consignee of the merchandise,
a person holding a valid license under section 641. When a
consignee declares on entry that he is the owner or purchaser
of merchandise the Customs Service may, without liability,
accept the declaration. For the purposes of this Act, the
importer of record must be one of the parties who is eligible
to file the documentation or information required by this section.
"(C) The Secretary, in prescribing regulations to carry out
this subsection, shall establish procedures which insure the
accuracy and timeliness of import statistics, particularly statistics relevant to the classification and valuation of imports.
Corrections of erroi*s in such statistical data shall be transmitted immediately to the Director of the Bureau of the Census,
who shall make corrections in the statistics maintained by
the Bureau. The Secretary shall also provide, to the maximimi
extent practicable, for the protection of the revenue, the enforcement of laws govciming the importation and exportation of
merchandise, the facilitation of the commerce of the United
States, and the equal treatment of all importers of record
of imported merchandise.
"(b) RECONCILIATIOI^I.—

"(1) IN GENEii\L.—^A party that electronically transmits
an entry summary or import activity siunmary statement may
at the time of filing such summaiy or statement notify the
Customs Service of his intention to file a reconciliation pursuant
to such regulations as the Secretary may prescribe. Such rec-

-

107 STAT. 2202

PUBLIC LAW 103-182—DEC. 8, 1993

onciliation must be filed by the importer of record within such
time period as is prescribed by regulation but no later than
15 months following the filing of the entry simimary or import
activity summary statement; except that the prescribed time
period for reconciliation issues relating to the assessment of
antidimiping and countervailing duties shall require filing no
later than 90 dajrs after the Customs Service advises the
importer that a period of review for antidumping or countervailing duty purposes has been completed. Before filing a reconciliation, an importer of record shall post bond or other security
pursuant to such regulations as the Secretary may prescribe.
"(2) REGULATIONS REGARDING AD/CV DUTIES.—The Secretary shall prescribe, in consultation with the Secretary of
Commerce, such regulations as are necessary to adapt the
reconciliation process for use in the collection of antidumping
and coimtervailing duties.
"(c) RELEASE OF MERCHANDISE.—The Customs Service may permit the entry and release of merchandise from customs custody
in accordance with such regulations as the Secretary may prescribe.
No officer of the Customs Service shall be liable to any person
with respect to the delivery of merchandise released from customs
custody in accordance with such regulations.
"(d) SIGNING AND CONTENTS.—Entries shall be signed by the
importer of record, or his agent, unless filed pursuant to an electronic data interchange system. If electronically filed, each transmission of data shall be certified by an importer of record or
his agent, one of whom shall be resident in the United States
for purposes of receiving service of process, as being true and
correct to the best of his knowledge and belief, and such transmission shall be binding in the same manner and to the same
extent as a signed document. The e n t ^ shall set forth such facts
in regard to the importation as the Secretary may require and
shall be accompanied by such invoices, bills of lading, certificates,
and documents, or their electronically submitted equivalents, as
are required by regulation.
"(e) PRODUCTION OF INVOICE.—^The Secretary may provide by
regulation for the production of an invoice, parts thereof, or the
electronic equivalents thereof, in such manner and form, and under
such terms and conditions, as the Secretary considers necessary.
"(f) STATISTICAL ENUMERATION.—The Secretary, the Secretary
of Commerce, and the United States International Trade Commission shall establish from time to time for statistical purposes an
enumeration of articles in such detail as in their judgment may
be necessary, comprehending all merchandise imported into the
United States and exported from the United States, and shall
seek, in coi^junction with statistical programs for domestic production and programs for achieving international harmonization of
trade statistics, to establish the comparability thereof with such
enumeration of articles. All import entries ana export declarations
shall include or have attached thereto an accurate statement specifying, in terms of such detailed enumeration, the kinds and quantities of all merchandise imported and exported and the value
of the total quantity of each kind of article.
"(g) STATEMENT OF COST OF PRODUCTION.—Under such regulations as the Secretary may prescribe, the Customs Service may
require a verified statement from the manufacturer or producer
showing the cost of producing the imported merchandise, if the

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2203

Customs Service considers such verification necessary for the
appraisement of such merchandise.
**(h) ADMISSIBILITY OF DATA ELECTRONICALLY TRANSMITTED.—

Any entry or other information transmitted hy means of an authorized electronic data interchange system shall be admissible in anv
and all administrative and judicial proceedings as evidence of such
entry or information.".
(b) AMENDMENT TO SECTION 771.—Section 771 (19 U.S.C. 1677)
is amended by adding at the end the following new paragraph:
"(23) ENTRY.—The term 'entry* includes, in appropriate
circimistances as determined by the administering authority,
a reconciliation entry created under a reconciliation process,
defined in section 401(s), that is initiated by an importer.
The liability of an importer under an antidumping or countervailing duty proceeding for entries of merchandise subject to
the proceemng will attach to the corresponding reconciliation
entry or entries. Suspension of liquidation of the reconciliation
entry or entries, for the purpose of enforcing this title, is
equivalent to the suspension of liquidation of the corresponding
individual entries; but the suspension of liquidation of the
reconciliation entry or entries for such purpose does not preclude liquidation for any other purpose.".
SEC. 638. APPRAISEMENT AND OTHER PROCEDURES.
Section 500 (19 U.S.C. 1500) is amended—
(1) by striking out The appropriate customs officer" and
inserting The Customs Service ;
(2) by striking out "appraise" in subsection (a) and inserting
"fix the final appraisement oF;
(3) by striking out "ascertain the" in subsection (b) and
inserting "fix the fmal";
(4) by amending subsection (c)—
(A) by inserting "final" after "fix the", and
(B) by inserting ", taxes, and fees" after "duties" wherever it appears; andf
(5) by amending subsections (d) and (e) to read as follows:
"(d) liquidate the entry and reconciliation, if any, of such
merchandise; and
"(e) give or transmit, pursuant to an electronic data inter- Regulations.
change system, notice of such liquidation to the importer, his
consignee, or agent in such form and manner as the Secretary
shall by regulation prescribe.".
SEC 639. VOLUNTARY REUQUTOATIONS.

Section 501 (19 U.S.C. 1501) is amended—
(1) by striking out "the appropriate customs officer on
his own initiative" ;and inserting the Customs Service";
(2) by inserting "or transmitted" after "given" wherever
it appears; and
(3) by amending the section heading to read as follows:
'^EC. 501. VOLUNTARY REUQUIDATIONS BY THE CUSTOMS SERVICE.".
SEC. 640. APPRAISEMENT REGULATIONS.

Section 502 (19 U.S.C. 1502) is amended—
(1) by amending subsection (a)—
(A) by inserting "(including regulations establishing
procedures for the issuance of binding rulings prior to
the entry of the merchandise concerned)" after "law'\

107 STAT. 2204

PUBLIC LAW 103-182—PEC. 8, 1993
(B) by striking out '^rts of entry, and" and inserting
•^rts of enti^. The Secretary",
(C) b^ inserting "or classifying" after ''appraising"
wherever it appears, and
(D) by striking out "such port" and inserting "any
port, and may direct any customs officer at any port to
review entries of merchandise filed at any other port";
and
(2) bv striking out subsection (b) and redesignating subsection (c) as subsection (b).

SEC. 641. LIMITATION ON UQUIDATION.

Regulations.

Regulations.

Section 504 (19 U.S.C. 1504) is amended—
(1) by amendii^ subsection (a)—
(A) by striking out "Except as provided in subsection
(b)," and inserting "Unless an entry is extended imder
subsection (b) or suspended as required by statute or court
order,",
(B) by striking out "or" at the end of paragraph (2),
(C) by inserting "or" after the semicolon at the end
of paragraph (3), and
(D) by inserting the following new paragraph after
para^aph(3):
(4) if a reconciliation is filed, or should have been filed,
i,
the date of the filing under section 484 or the date the reconciliation should have beenfiled;";and
(2) by amending subsections (b), (c), and (d) to read as
follows:
"(b) EXTENSION.—^The Secretary may extend the period in which
to liquidate an entry if—
"(1) the information needed for the proper appraisement
or classification of the merchandise, or for insuring compliance
with applicable law, is not available to the Customs Service;
or
"(2) the importer of record requests such extension and
shows good cause therefor.
The Secret£ury shall give notice of an extension under this subsection
to the importer of record and the surety of such importer of record.
Notice shall be in such form and manner (which may include
electronic transmitted) as the Secretary shall by regulation prescribe. Any entry the liquidation of wmch is extended under this
subsection shall be treated as having been liquidated at the rate
of duty, value, quantity, and amount of duty asserted at tiie time
of entry by the importer of record at the expiration of 4 years
from the applicable date specified in subsection (a).
"(c) NOTICE OF SUSPENSION.—If the liq^uidation of any entry
is suspended, the Secretary shall by regulation require that notice
of the suspension be provided, in such manner as the Secretary
considers appropriate, to the importer of record and to any authorized agent and surety of such importer of record.
"(d) REMOVAL OF SUSPENSION.—When a suspension required
by statute or court order is removed, the Customs Service shall
liquidate the entry within 6 months after receiving notice of the
removal from the Department of Commerce, other agency, or a
court with jurisdiction over the entiv. Any entry not liouidated
bv the Customs Service within 6 months after receiving such notice
snail be treated as having been liquidated at the rate of duty,

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2205

value, quantity, and amount of duty asserted at the time of entry
by the importer of record.**.
SEC. 642. PAYMENT OF DUTIES AND FEES.

(a) AMENDMENT TO SECTION 505.—Section 505 (19 U.S.C. 1505)
is amended to read as follows:
'«EC. SOS. PAYMENT OF DUTIES AND FEES.
"(a) DEPOSIT OF ESTIMATED DUTIES, FEES, AND INTEREST.—

Unless merchandise is entered for warehouse or transportation,
or imder bond, the importer of record shall deposit with the Customs
Service at the time of making entrv, or at such later time as
the Secretary may prescribe by regulation, the amount of duties
and fees estimated to be payable thereon. Such regulations may
provide that estimated duties and fees shall be deposited before
or at the time an import activity summary statement is filed.
If an import activity summary statement is filed, the estimated
duties and fees shall be deposited together with interest, at a
rate determined by the Secretary, accruing from the first date
of the month the statement is required to be filed until the date
such statement is actually filed.
"(b) COLLECTION OR REFUND OF DUTIES, FEES, AND INTEREST
DUE UPON LIQUIDATION OR REUQUIDATION.—The Customs Service

shall collect any increased or additional duties and fees due,
together with interest thereon, or refund any excess moneys deposited, togetiier with intei'est thereon, as determined on a liquidation
or reliquidation. Duties, fees, and interest determined to be due
upon liquidation or reliquidation are due 30 days after issuance
of the bill for such payment. Refunds of excess moneys deposited,
together with interest thereon, shall be paid within 30 days of
liquidation or reliquidation.
"(c) INTEREST.—Interest assessed due to an imdei^pajnnent of
duties, fees, or interest shall accrue, at a rate determined by the
Secretary, from the d^tte the importer of record is required to
deposit estimated duties, fees, and mterest to the date of liquidation
or reliquidation of the applicable entry or reconciliation. Interest
on excess moneys deposited shall accrue, at a rate determined
by the Secretary, from the date the importer of record deposits
estimated duties, fees, and interest to the date of liquidation or
reliquidation of the applicable entry or reconciliation.
"(d) DELINQUENCY.—If duties, fees, and interest determined
to be due or refunded are not paid in full within the 30-day period
specified in subsection (b), any unpaid balance shall be considered
delinquent and bear interest by 30-day periods, at a rate determined
by the Secretary, from the date of liquidation or reliquidation imtil
the full balance is paid. No interest shall accrue during the 30day period in which payment is actually made.".
(b) CONFORMING AMENDMENT.—Subsection (d) of section 520
(19 U.S.C. 1520(d)) is repealed.
SEC. 643. ABANDONMENT AND DAMAGE.

Section 506 (19 U.S.C. 1506) is amended—
(1) by striking out "the appropriate customs officer" and
"such customs officer" wherever they appear and inserting "the
Customs Service";
(2) by amending paragraph (1)—
(A) by striking out not sent to the appraiser's stores
for" and inserting released without an",

107 STAT. 2206

PUBLIC LAW 103-182—DEC. 8, 1993
(B) by striking out "of the examination packages or
quantities of merchandise",
(C) bv striking out "the appraiser's stores" and inserting "the Customs Service", ana
(D) by inserting "or entnr" after "invoice", and
(3) by amending paragraph (2)—
(A) by inserting ", electronically or otherwise," aft»r
"files", and
(B) by striking out "ynritten".

SEC. 644. CUSTOMS OFFICER'S IMMUNITY.

Section 513 (19 U.S.C. 1513) is amended to read as follows:
'^EC. 513. CUSTOMS OFFICER'S IMMUNITY.

"No customs officer shall be liable in any way to any person
for or on account of—
"(1) any ruling or decision regarding the appraisement
or the classification of any imported merchandise or regarding
the duties, fees, and taxes charged thereon,
"(2) the collection of an;^ dues, charges, duties, fees, and
taxes on or on account of any imported merchandise, or
"(3) any other matter or thing as to which any person
might under this Act be entitled to protest or appeal fi'om
the decision of such officer.".
SEC. 645. PROTESTS.

Section 514 (19 U.S.C. 1514) is amended—
(1) by amending subsection (a)—
(A) by striking out "appropriate customs officer" in
the text preceding paragraph (1) and inserting "Customs
Service",
(B) by inserting "or reconciliation as to the issues contained therein," after "entry," in paragraph (5),
(C) by striking out "and" and inserting "or" at the
end of paragraph (6),
(D) by striking out the comma at the end of paragraph
(•7) and inserting a semicolon, and
'^^_
(E) by striHng out "appropriate customs officer, who"
in the text following paragraph (7) and inserting "Customs
Service, which";
(2) by amending subsection (b) by striking out "appropriate
customs officer" andinserting"Customs Service";
(3) by amending the first sentence of subsection (cXD to
read as follows: "A protest of a decision made under subsection
(a) shall be filed in writing, or transmitted electronically pursuant to an electronic data interchange system, in accordance
with regulations prescribed by the Secretary. A protest must
/ set forth distinctlv and specifically—
"(A) eacn decision described in subsection (a) as to
which protest is made;
"(B) each category of merchandise affected by each
decision set forth under paragraph (1);
"(C) the nature of each objection and the reasons therefor; and
"(D) any other matter required by the Secretary by
regulation.";
(4) by redesignating paragraph (2) of subsection (c) as
paragraph (3) and by striking out "such customs officer^ in

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2207

such redesignated paragraph and inserting '*ihe Customs Service";
(5) by designating the last sentence of paragraph (1) of
subsection (c) as pai'agraph (2);
(6) by striking out customs officer" in subsection (d) and
inserting "Customs Service"; and
(7) by amending the section heading to read as follows:
'nSEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.".
SEC. 646. REFUNDS AND ERRORS.

Section 520 (19 U.S.C. 1520) is amended—
(1) by inserting "or reconciliation" after "entry" in paragraphs (1) and (4) oi; subsection (a); and
(2) by amending subsection (c)-—
(A) by strildng out "appropriate customs officer" wherever it appears and inserting "Customs Service",
(B) by inserting "or reconciliation" aft«r "reliquidate
an entry", and
(C) by inserting ", whether or not resulting from or
contained in electronic transmission," aft«r "inadvertence"
the first place it appears in paragraph (1).
SEC. 647. BONDS AND OTHER SECURITY.

Section 623 (19 U.S.C. 1623) is amended—
(1) by inserting "and the manner in which the bond may
be filed with or, pursuant to an authorized electronic data
interchange system, transmitted to the Customs Service" after
"form of such bond" in subsection (bXD; and
(2) by inserting at the end of subsection (d) the following
new sentence: "Any bond transmitted to the Customs Service
pursuant to an authorized electronic data interchange system
shall have the same force and effect and be bindfing upon
the parties thereto as if such bond were manually executed,
signed, and filed.".
SEC. 648. CUSTOMHOUSE BROKERS.

Section 641 (19 U.S.C. 1641) is amended—
(1) by adding at the end of subsection (aX2) the following
new sentence: "It also includes the preparation of documents
or forms in any format and the electronic transmission of
documents, invoices, bills, or parts thereof, intended to be filed
with the Customs Service in furtherance of such activities,
whether or not signed or filed by the preparer, or activities
relating to such preparation, but does not include the mere
electronic transmission of data received for transmission to
Customs.";
(2) by amending subsection (cXD to read as follows:
"(1) IN GENERAI^.—Each person panted a customs broker's Regulations.
license under subsection (b) shall be issued, in accordance with
such regulations aa the Secretary shall prescribe, either or
both of tne following:
"(A) A national permit for the conduct of such customs
business as the Secretary prescribes by regulation.
"(B) A permit for each customs district in which that
person conductft customs business and, except as provided
in paragraph (2), regularly employs at least 1 individual
who is licensed imder subsection (!bX2) to exercise respon-

107 STAT. 2208

Reguiations.

PUBLIC LAW 103-182—DEC. 8, 1993
sible supervision and control over the ciistoms business
conducted by that person in that district.";
(3) by inserting at the end of subsection (c) the following
new paragraph:
"(4) APPOINTMENT OF SUBAGENTS.—Notwithstanding subsection (cXD, upon the implementation bv the Secreta^ under
section 413(bX2) of the component of tne National Customs
Automation Program referred to in section 411(aX2XB), a
licensed broker may appoint another licensed broker holding
a permit in a customs district to act on its behalf as its subagent
in that district if such activity relates to the filing of information
that is permitted by law or regulation to be filed electronically.
A licensed broker appointing a subagent pursuant to this paragraph shall remain liable for any and all obligations arising
under bond and any and all duties, taxes, and fees, as well
as any other liabilities imposed by law, and shall be precluded
from delegating to a subagent such liability.";
(4) by amending subsection (dX2XB)—
(A) by striking out "appropriate customs officer" and
inserting "Customs Service" in the first and third sentences,
(B) by striking out "he" and inserting "it" in the third
sentence,
(C) by striking out "15 days" and inserting "30 days"
in the third sentence,
(D) by striking out "the appropriate customs officer
and the customs broker; they" and inserting "the Customs
Service and the customs broker; which" in the sixth sentence,
(E) by striking out "his" and inserting "the" in the
seventh sentence, and
(F) by striking out "for his decision" and inserting
"for the decision" in the eighth sentence; and
(5) by amending subsection (0 by striking out "United
States Customs Service." and inserting "Customs Service. The
Secretary may not prohibit customs brokers from limiting their
liability to other persons in the conduct of customs business.
For purposes of this subsection or any other provision of this
Act pertaining to recordkeeping, all data required to be retained
by a customs broker may be kept on microfilm, optical disc,
magnetic tapes, disks or drums, video files or any other electrically generated medium. Pursuant to such regulations as
the Secretary shall prescribe, the conversion of data to such
storage medium may be accomplished at any time subsequent
to the relevant customs transaction and the data may be
retained in a centralized basis according to such broker's business system.".

SEC. 649. CONFORMING AMENDMENTS.
(a) PLACE OF ENTRY AND UNLADING.—Section 447 (19 U.S.C.

1447) is amended by striking out "the appropriate customs officer
shall consider" and inserting "the Customs Service considers".
(b) UNLADING.—Section 449 (19 U.S.C. 1449) is amended by
striking out "appropriate customs officer of such port issues a
permit for the unlading of such merchandise or baggage," and
inserting "Customs Service issues a permit for the unla(ting of
such merchandise or baggage at such port,".

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2209

Subtitle C—^Miscellaneous Amendments to
the Tariff Act of 1930
SEC. 651. ADMINISTRATIVE EXEMPTIONS.

Section 321 (19 U.S.C. 1321) is amended—
(1) by amending: subsection (aXl)—
(A) by striking out "of less than $10" and inserting
"of an amount specified by the Secretary by regulation,
but not less than $20,",
(B) by inserting ", fees," after "duties" wherever it
appears, and
(C) by striking out "and" at the end thereof;
(2) by amending subsection (aX2)—
(A) by striking out "shall not exceed—" and inserting
"shall not exceed an amount specified by the Secretary
by regulation, but not less than—\
(B) by strildng out "$50" and "$100" in subparagraph
(A) and inserting "$100" and "$200", respectively,
(C) by striking out "$25" in subparagraph (B) and
inserting "$200",
(D) by striking out "$5" in subparagraph (C) and inserting "$200*, and
(E) by striking the period at the end thereof and inserting "; and", and
(3) by inserting a new paragraph (3) at the end of subsection (a) to read as follows:
"(3) waive the collection of duties, fees, and taxes due
on entered merchandise when such duties, fees, or taxes are
less than $20 or such greater amount as may be specified
by the Secretary by regulation."; and
(4) by amending subsection (b)—
(A) by striking out "to diminish any dollar amount
specified in subsection (a) and"; and
(B) by striking out "such subsection" wherever it
appears and inserting "subsection (a)".
SEC. 652. REPORT OF ARRIVAL.

Section 433 (19 U.S.C. 1433) is amended—
(1) by amending subsection (aXl)—
(A) by striking out "or^ at the end of subparagraph
(B),
(B) by inserting "or" after the semicolon at the end
of subparagraph (C), and
(C) by adding after subpara^aph (C) the following:
"(D) any vessel which has visited a hovering vessel
or received merchandise while outside the territorial sea;";
(2) by striking out "present to customs officers such" in
subsection (d) and inserting "present, or transmit pursuant
to an electronic daUi interchange system, to the Customs Service such information, data,"; and
(3) by amending subsection (e) to read as follows:
"(e)

PROHIBITION ON DEPARTURES AND DISCHARGE.—Unless

otherwise authorized by law, a vessel, aircraft or vehicle after
arriving in the United States or Virgin Islands may, but only
in accordance with regulations prescribed by the Secretary—
"(1) depart trom the port, place, or airport of arrival; or

107 STAT. 2210

PUBLIC LAW 103-182—DEC. 8, 1993
"(2) discharge any passenger or merchandise (including
baggage).".

SEC. 6S8. ENTRY OF VESSELa

Section 434 (19 U.S.C. 1434) is amended to read as follows:
•^EC. 434. ENTRY; VESSELS.
"(a) FORMAL ENTRY.—Within 24 hours (or such other period

-

of time as may be provided imder subsection (cX2)) after the arrival
at any port or place in the United States of—
"(1) any vesselfiroma foreign port or place;
"(2) any foreign vessel from a domestic i)ort;
"(3) any vessel of the United States having on board bonded
merchandise or foreign merchandise for which entry has not
been made; or
"(4) any vessel which has visited a hovering vessel or
has delivered or received merchandise while outsicfe the territorial sea;
the master of the vessel shall, unless otherwise provided by law,
make formal entry at the nearest customs facility or such other
place as the Secretary may prescribe by regulation.
"(b) PRELIMINARY ENTRY.—The Secretary may by regulation
permit the master to make preliminary entry of the vessel with
the Customs Service in lieu of formal entry or before formal entry
is made. In permitting preUminar^ entrv, the Customs Service
shall board a sufificient nimiber of vessels to ensure compliance
with the laws it enforces.
**(c) REGULATIONS.—^The Secretary may by regulation—
"(1) prescribe the manner and format in which entry under
subsection (a) or subsection (b), or both, must be made, and
such regulations may provide that any such entry may be
made electronically pursuant to an electronic data interchange
system;
"(2) provide that—
(A) formal entry must be made within a greater or
lesser time than 24 hours after arrival, but in no case
more than 48 hours after arrival, and
"(B) formal entry may be made before arrival; and
"(3) authorize the Customs Service to permit entry or
preliminary entry of any vessel to be made at a place other
than a designated port of entry, under such conditions as may
be prescribed.".
SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.

Section 438 (19 U.S.C. .1438) is amended—
(1) by striking out "section 435" and inserting "section
434";
(2) by inserting ", or regulations issued thereunder," after
"ofthis Act";and
(3) by striking out "the appropriate customs officer of the
port where such vessel has been entered." and inserting "the
Customs Service in the port in which such vessel has entered.".
SEC. 6SS. VESSELS NOT REQUIRED TO ENTER.

Section 441 (19 U.S.C. 1441) is amended—
(1) by amending the text preceding paragraph (1) to read
as follows: "The following vessels shall not be required to make
entry under section 434 or to obtain clearance under section

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2211

4197 of the Revised Statutes of the United States (46 U.S.C.
App. 91):";
(2) by amending paragraph (3) to read as follows:
''(3) Any vessel carrjdng passengers on excursion from the
United States Virgin Islancb to the British Virgin Islands and
returning, if—
(A) the vessel does not in any way violate the customs
or navigation laws of the United States;
**(B) the vessel has not visited any hovering vessel; and
**(C) the master of the vessel, if there is on board any
article required by law to be entered, reports the article to
the Customs Service immediately upon arrival.";
(3) by redesignating para^aphs (4) and (5) as paragraphs
(5) and (6), respectively, and mserting after paragraph (3) the
following:
"(4) Any United States docimiented vessel with recreational
endorsement or any imdocimiented United Stetes pleasiire vessel
not engaged in trade, if—
(A) the vessel complies with the reporting requirements
of section 433, and with the customs and navigation laws
of the United Stetes;
"(B) the vessel has not visited any hovering vessel; and
"(C) the master of, and any other person on board, the
vessel, if the master or such person has on board anv article
required by law to be entered or declared, reports such article
to the Customs Service immediately upon arrival;";
(4) by amending paragraph (6) (as so redesignated) by
striking out "enrolled and licensed to engage in the foreign
and coasting trade in the northern, northeastern, and normwestern frontiers" and inserting "documented imder chapter
121 of title 46, United Stetes Code, with a Great Lakes endorsement"; and
(5) by amending the section heading to read as follows:
*«£€. 441. EXCEPTIONS TO VESSEL
REQUIREMENTS.^
SEC. 656. UNLADING.

ENTRY

AND

CLEARANCE

Section 448(a) (19 U.S.C. 1448(a)) is amended—
(1) by amending the first sentence—
(A) by striking out "enter)" and inserting "enter or
clear)",
(B) by striking out "or vehicle arriving from a foreign
port or place" and inserting "required to make entiy imder
section 434, or vehicle required to report arrival under
section 433,",
(C) by inserting "or transmitted pursuant to an electronic date interchange system" after "issued", and
(D) by striking out the colon after "officer" and the
proviso and inserting a period;
(2) by amending the second sentence—
(A) by striking out ", preliminary or otherwise,", and
(B) by inserting ", electronically pursuant to an authorized electronic data interchange system or otherwise," after
"mav issue a permit";
(3) by striking out the last sentence and inserting the
following: "The owner or master of any vessel or vehicle, or
agent thereof, shall notify the Customs Service of any merchan-

107 STAT. 2212
Regulations.

PUBLIC LAW 103-182—DEC. 8, 1993
dise or baggage so unladen for which entry is not made within
the time prescribed by law or regulation. The Secretary shall
by regulation prescribe administrative penalties not to exceed
$1,000 for each bill of lading for which notice is not given.
Any such administrative penalty shall be subject to mitigation
ana remittance under section 618. Such unentered merchandise
or baggage shall be the responsibility of the master or person
in charge of the importing vessel or vehicle, or agent thereof,
until it is removed from the carrier's control in accordance
with section 490."; and
(4) by striking out "the appropriate customs officer" and
"such customs officer" wherever they appear and inserting "the
Customs Service".

SEC. 657. DECLARATIONS.

Section 485 (19 U.S.C. 1486) is amended—
(1) by amending subsection (a)—
(A) by inserting "or transmit electronically" after "file",
and
(B) by inserting "and manner" after "form";
(2) by amending subsection (d)—
(A) by striking out "A importer" and inserting "An
importer", and
(B) by striking out "a importer" and inserting "an
importer"; and
(3) by inserting after subsection (0 the following new subsection:
Regulations.

"(g) EXPORTED MERCHANDISE RETURNED AS UNDELIVERABLE.—

With respect to any importation of merchandise to which Greneral
Headnote 4(e) of tne Harmonized Tariff Schedule of the United
States applies, any person who gained any benefit from, or met
any obligation to, the United States as a result of the prior exportation of such merchandise shall, in accordance with regulations
prescribed by the Secretary, within a reasonable time inform the
Customs Service of the return of the merchandise.".
SEC. 658. GENERAL ORDERS.

Section 490 (19 U.S.C. 1490) is amended—
(1) by amending subsection (a) to read as follows:
"(a) INCOMPLETE ENTRY.—

"(1) Whenever—
"(A) the entry of any imported merchandise is not
made within the time provided by law or by regulation
prescribed by the Secretary;
"(B) the entry of imported merchandise is incomplete
because of failure to pay the estimated duties, fees, or
interest;
"(C) in the opinion of the Customs Service, the entry
of imported merchandise C£mnot be made for want of proper
documents or other cause; or
"(D) the Customs Service believes that any merchandise is not correctly and legally invoiced;
the carrier (unless subject to subsection (c)) shall notify the
bonded warehouse of such imentered merchandise.
"(2) After notification under paragraph (1), the bonded
warehouse shall arrange for the transportation and storage
of the merchandise at the risk and expense of the consignee.
The merchandise shall remain in the bonded warehouse imtil—

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2213

"(A) entry is made or completed and the proper documents are produced;
**(B) the information and data necessary for entry are
transmitted to the Customs Service pursuant to an authorized electronic data interchange system; or
"(C) a bond is given for the production of docimients
or the transmittal of data.";
(2) by amending subsection (b)—
(A) by amending the heading for subsection (b) to read
as follows:
"(b) REQUEST FOR POSSESSION BY CUSTOMS.—", and

(B) by striking out "appropriate customs officer" and
inserting "Customs Service ; and
(3) by adding at the end the following new subsection:
"(c) GOVERNMENT MERCHANDiSE.^Any imported merchandise Regulations.
that—
"(1) is described in any of paragraphs (1) through (4) of
subsection (a); and
"(2) is consigned to, or owned by, the United States Government;
shall be stored and disposed of in accordance with such rules
and procedures as the Secretary shall by regulation prescribe.".
SEC. 659. UNCLAIMED MERCHANDISE.

Section 491 (19 U.S.C. 1491) is amended—
(1) by amending subsection (a)—
(A) by striking out "customs custody for one year"
in the first sentence and inserting "in a bonded warehouse
pursuant to section 490 for 6 months",
(B) by striking out "public store or bonded warehouse
for a period of one year" in the second sentence and inserting "pursuant to section 490 in a bonded warehouse for
6 months",
(C) by striking out "estimated duties and storage" in
the first sentence and inserting "estimated duties, taxes,
fees, interest, storage,",
(D) by inserting "taxes, fees, interest," after "duties,"
wherever it appears, and
(E) by striking out "duties" in the last sentence and
inserting "duties, taxes, interest, and fees"; and
(2) by redesignating subsection (b) as subsection (e) and
inserting after subsection (a) the following new subsections:
"(b) NOTICE OF TITLE VESTING IN THE UNITED STATES.—At

the end of the 6-month period referred to in subsection (a), the
Customs Service may, in lieu of sale of the merchandise, provide
notice to all known interested parties that the title to such merchandise shall be considered to vest in the United States free and
clear of any liens or encumbrances, on the 30th day cifter the
date of the notice imless, before such 30th day—
"(1) the subject merchandise is entered or withdrawn for
consimiption; and
"(2) payment is made of all duties, taxes, fees, transfer
and storage charges, and other expenses that may have accrued
thereon.
"(c) RETENTION, TRANSFER, DESTRUCTION, OR OTHER DISPOSI-

TION.—If title to any merchandise vests in the United States by Regulations.
operation of subsection (b), such merchandise may be retained

107 STAT. 2214

PUBLIC LAW 103-182—DEC. 8, 1993

by the Customs Service for official use, transferred to any other
Federal agency or to any State or local agency, destroyed, or otherwise disposed of in accordance with such regulations as the Secretary shall prescribe. All transfer and storage charges or expenses
accruing on retained or transferred merchandise shall be paid by
the receiving agency.
"(d) PETITION.—^Whenever any partjr, having lost a substantial
interest in merchandise by virtue of title vesting in the United
States under subsection (b), can establish such title or interest
to the satisfaction of the Secretary within 30 days after the day
on which title vests in the United States iinder subsection (b),
or can establish to the satisfaction of the Secretary that the party
did not receive notice under subsection (b), the Secretary may,
upon receipt of a timely and proper petition and upon finding
that the facts and circumstances warrant, pay such party out of
the Treasury of the United States the amount the Secretary believes
the party would have received under section 493 had the merchandise been sold and a proper claim filed. The decision of the Secretarv
with respect to any such petition is final and conclusive on all
parties."; and
(3) by amending subsection (e) (as so redesignated) by
striking out "appropriate customs officer" in paragraph (3) and
inserting "Customs Service".
SEC. 660. DESTRUCTION OF MERCHANDISE.

,

Section 492 (19 U.S.C. 1492) is amended—
(1) by inserting ", retained for official use, or otherwise
disposed oP after "destroyed"; and
(2) by striking out "appropriate customs officer" and inserting "Customs Service".
SEC. 661. PROCEEDS OF SALE.

Section 493 (19 U.S.C. 1493) is amended—
(1) by inserting "taxes, and fees," after "duties,";
(2) by striking out "by the appropriate customs officer";
and
(3) by striking out "such customs officer" and inserting
"the Customs Service".
SEC. 662. ENTRY UNDER REGULATIONS.

Section 498(a) (19 U.S.C. 1498(a)) is amended—
(1) by amending paragraph (1) to read as follows:
"(1) Merchandise, when—
"(A) the aggregate value of the shipment does not
exceed an amount specified by the Secretary by regulation,
but not more than $2,500; or
"(B) different commercial facilitation and risk considerations that may vary for different classes or kinds of merchandise or dinerent classes of transactions may dictate;";
and
(2) by striking out "$10,000" in paragraph (2) and inserting
"such amounts as the Secretary may prescribe".
SEC. 663. AMERICAN TRADEMARKS.

Section 526(eX3) (19 U.S.C. 1526(eX3)) is amended—
(1) by striking out "1 year" and inserting "90 days"; and
(2) by striking out "appropriate customs officers" and inserting "the Customs Service .

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2215

SEC. 664. SmPUFIED RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY PIPELINE.

Part IV of title IV is amended by inserting after section 553
the following new section:
'^EC. 553A. RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY 19 USC 1553a.
PIPELINE.

'Merchandise in Customs custody that is transported by pipeline may be accounted for on a quantitative basis, based on the
bill of lading, or equivalent document of receipt, issued by the
pipeline earner. Unless the Customs Service has reasonable cause
to suspect fraud, the Customs Service may accept the bill of lading,
or equivalent document of receipt, issued by the pipeline carrier
to the shipper and accepted by tne consignee to maintain identity.
Hie shipper, pipeline operator, and consignee shall be subject to
the recordkeeping reqmrements of sections 508 and 509.".
SEC. 666. ENTRY FOR WAREHOUSE.

Section 557(a) (19 U.S.C. 1557(a)) is amended—
(1) by designating the first 2 sentences of such subsection
as paragraph (1);
(2) by striking out in such paragraph (1) (as so designated)
**: Provided, That the total period oT time for which such merchandise may remain in bonded warehouse shall not exceed
5 years from the date of importation." and inserting the following: "; except that—
"(A) the total period of time for which such merchandise
may remain in bonded warehouse shall not exceed 5 years
from the date of importation; and
"(B) turbine fuel may be withdrawn for use under section
309 without the payment of duty if an amount equal to the
quantity of fuel withdrawn is shown to be used within 30
days aner the day of withdrawal, but duties (together with
interest payable from the date of the withdrawal at the rate
of interest established under section 6621 of title 26, United
States Code) shall be deposited by the 40th day aiter the
day of withdrawal on fuel that was withdrawn in excess of
the quantity shown to have been so used during such 30day period."; and
(3) by designating the remaining sentences of such subsection as paragraph (2).
SEC. 666. CARTAGE.

The first sentence of section 565 (19 U.S.C. 1565) is amended
to read as follows: T h e cartage of merchandise entered for warehouse shall be done by—
"(1) cartmen appointed and licensed by the Customs Service; or
"(2) carriers designated under section 551 to carry bonded
merchandise;
who shall give bond, in a penal sum to be fixed by the Customs
Service, for the protection of the Government against any loss
of, or damage to, me merchandise while being so carted.".
SEC. 667. SEIZURE.

Section 612 (19 U.S.C. 1612) is amended—
(1) by amending subsection (a)—

107 STAT. 2216

Regulations.

PUBLIC LAW 103-182—DEC. 8, 1993

(A) by striking out "the appropriate customs officer^,
"such officer" and "the customs officer" wherever they
appear and inserting "the Customs Service", and
(B) by striking out "the appraiser's return and his"
and inserting "its"; and
(2) by amending subsection (b) to read as follows:
"(fe) jf the Customs Service determines that the expense of
keeping the vessel, vehicle, aircraft, merchandise, or baggage is
disproportionate to the value thereof, the Customs Service may
promptly order the destruction or other appropriate disposition
of such property imder regulations prescribed by the Secretary.
No customs officer shall be liable for the destruction or other
disposition of property made pursuant to this section.".
SEC. 668. UMTTATION ON ACTIONS.

Section 621 (19 U.S.C. 1621) is amended—
(1) by inserting "any dutv under section 592(d), 593A(d),
or" before "any pecimiary penalty"; and
(2) by striking out "discovered:" and all that follows thereafter and inserting the following: "discovered; except that—
"(1) in the case of an alleged violation of section 592 or
593A, no suit or action (including a suit or action for restoration
of lawful duties under subsection (d) of such sections) may
be instituted unless commenced within 5 years after the date
of the alleged violation or, if such violation arises out of fraud,
within 5 years after the date of discovery of fraud, and
"(2) the time of the absence from the United Stetes of
the person subject to the penalty or forfeiture, or of any concealment or absence of the property, shall not be reckoned within
the 5-year period of limitation.".
SEC. 669. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

The Tariff Act of 1930 is amended by inserting after section
528 the following new section:
19 u s e 1529.

'^EC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

"The Customs Service shall be reimbursed from the fees collected for the cost and expense, administrative and otherwise,
incurred in collecting any fees on behalf of any government agency
for any reason.".
SEC. 670. AUTHORITY TO SETTLE CLAIMS.

The Tariff Act of 1930 is amended by inserting after section
629 the following new section:
19 u s e 1630.

'^EC. 630. AUTHORITY TO SETTLE CLAIMS.

"(a) IN GENERAL.—^With respect to a claim that cannot be
settled imder chapter 171 of title 28, United Stetes Code, the
Secretory may settle, for not more than $50,000 in any one case,
a claim for damage to, or loss of, privately owned property caused
by an investigative or law enforcement officer (as defined in section
2680(h) of title 28, United Stetes Code) who is employed by the
Customs Service and acting within the scope of his or her employment.
"(b) LIMITATIONS.—^The Secretery may not pay a claim under
subsection (a) that—
"(1) concerns commercial property;

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2217

"(2) is presented to the Secretary more than 1 year after
it occurs; or
"(3) is presented by an officer or employee of the United
States Government and arose within the scope of employment,
''(c) FINAL SETTLEMENT.—A claim may be paid under this section onJy if the claimant; accepts the amount or settlement in complete satisfaction of the claim. .
SEC. 671. USE OF PRIVATE COLLECTION AGENCIES.

The Tariff Act of 1930 is amended by inserting after section
630 the following new section:
"SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

19 USC 1631.

"(a) IN GENERAL.—^Notwithstanding any other provision of law, Contracts.
the Secretary, under such terms and conditions as the Secretary
considers appropriate, shall enter into contracts and incur obligations with one or more persons for collection services to recover
indebtedness arising under the customs laws and owed the United
States Government, but only after the Customs Service has
exhausted all administi'ative efforts, including all claims against
applicable surety bonds, to collect the indebtedness.
"(b) CONTRACT REQUIREMENTS.—Any contract entered into
under subsection (a) shall provide that—
"(1) the Secretaiy retains the authority to resolve a dispute,
compromise a claim, end collection action, and refer a matter
to the Attorney Greneral to bring a civil action; and
"(2) the person is subject to—
"(A) section 552a of title 5, United States Code, to
the extent provided in subsection (m) of such section; and
"(B) laws and regulations of the United States Government and State governments related to debt collection practices.**.

Subtitle D—^Miscellaneous Provisions and
Consequential and Conforming Amendments to Other Laws
SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.
(a) RETURN SHIPMENTS.—General Note 4 of the Harmonized

Tariff Schedule of the United States is amended—
(1) by striking out "and** at the end of subdivision (c);
(2) by inserting "and" after "1930," in subdivision (d);
(3) by inserting after subdivision (d) the following:
"(e) articles exported from the United States which are
returned within 45 days after such exportation from the United
States as imdeliverable and which have not left the custody
of the carrier or foreign customs service,"; and
(4) by adding at the end the following new sentence: "No
exportation referred to in subdivision (e) may be treated as
satisfying any requirement for exportation in order to receive
a benefit from, or meet an obligation to, the United States
as a result of such exportation.".
(b) ENTRY NOT REQUIRED FOR LOCOMOTIVES AND RAILWAY
FREIGHT CARS.—

107 STAT. 2218

Regulations.

PUBLIC LAW 103-182—DEC. 8, 1993

(1) The Notes to chapter 86 of such Schedule are amended
by inserting after note 3 tiie following new note:
"4. Railway locomotives (provided for in headings 8601 and 8602)
and railway freight cars (provided for in heading 8606) on which
no duty is owed are not subject to the entry or release requirements
for imported merchandise set forth in sections 448 and 484 of
the Tariff Act of 1930. The Secretary of the Treasury may by
regulation estabUsh appropriate reporting requirements, including
the requirement that a bond be posted to ensure compliance.".
(2) The U.S. Notes to subchapter V of chapter 99 of such
Schedule are amended by inserting after note 8 the following
new note:
'^. Railway freight cars provided for in subheadings 9905.86.05
and 9905.86.10 are not subject to the entry or release requirements
for imported merchandise set forth in sections 448 and 484 of
the Tariff Act of 1930. The Secretary of the Treasury may by
regulation estabUsh appropriate reporting requirements, including
the requirement that a bond be posted to ensure compliance.",
(c) INSTRUMENTS OF INTERNATIONAL TRAFFIC—The U.S. Notes
to subchapter III of chapter 98 of such Schedule is amended by
inserting after note 3 the following new note:
"4. Instruments of international traffic, such as containers, lift
vans, rail cars and locomotives, truck cabs and trailers, etc. are
exempt from formal entry procedures but are required to be
accounted for when imported and exported into and out of the
United States, respectively, through the manifesting procedures
required for all international carriers by the United States Customs
Service. Fees associated with the importation of such instruments
of international traffic shall be reported and paid on a periodic
basis as required by regulations issued by the Secretary of the
Treasury and in accordance with 1956 Customs Convention on
Containers (20 UST 30; TIAS 6634).".
SEC. 682. CUSTOMS PERSONNEL AIRPORT WORK SHIFT REGULATION.

26 use 9505.

26 use 9505
'^°^-

Section 13031(g) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(g)) is amended—
(1) by striking out "In addition to the regulations required
under paragraph (2), the" and inserting "The";
(2) by striking out paragraph (2); and
(3) by redesignating paragraph (3) as paragraph (2).
SEC. 683. USE OF HARBOR MAINTENANCE TRUST FUND AMOUNTS FOR
ADMINISTRATIVE EXPENSES.
(a) IN GENERAL.—Paragraph (3) of section 9505(c) of the
Internal Revenue Code of 1986 (relating to expenditures from Harbor Maintenance Trust Fund) is amended to read as follows:
"(3) for the pajrment of all expenses of administration
incurred by the Department of the Treasury, the Army Corps
of Engineers, and the Department of Commerce related to
the administration of subchapter A of chapter 36 (relating
to harbor maintenance tax), but not in excess of $5,000,000
for any fiscal year.".
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to fiscal years beginning after the date of the enactment
of this Act.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2219

SEC. 684. AMENDMENTS T() TITLE 28, UNITED STATES CODE.
(a) AMENDMENTS REILATING TO ACCREDITATION OF PRIVATE LAB-

ORATORIES.—^Title 28 of the United States Code is amended as
follows:
(1) Section 1581(g) is amended by—
(A) striking out "and" at the end of paragraph (1);
(B) by strimng out the period at the end of paragraph
(2) and inserting "; and"; and
(C) by adding at the end the following:
**(3) any decision or order of the Customs Service to deny,
suspend, or revoke accreditation of a private laboratory imder
section 499(b) of the Tariff Act of 1930. .
(2) Section 2631(g) is amended by inserting at the end
the following new para^aph:
"(3) A civil action to review any decision or order of the Customs
Service to deny, suspend,, or revoke accreditation of a private laboratory under section 499(b) of the Tariff Act of 1930 may be commenced in the Court of International Trade by the person whose
accreditation was denied, suspended, or revoked.".
(3) Section 2636 is amended—
(A) by redesignating subsection (h) as subsection (i);
and
(B) by inseiting after subsection (g) the following new
subsection:
**(h) A civil action contesting the denial, suspension, or revocation by the Customs Sei-vice of a private laboratory's accreditation
under section 499(b) of the Tariff Act of 1930 is barred unless
commenced in accordance with the rules of the Court of International Trade within 60 days after the date of the decision or
order of the Customs Service.".
(4) Section 2640 is amended—
(A) by redesignating subsection (d) as subsection (e);
and
(B) by inserting after subsection (c) the following new
subsection:
"(d) In any civil action commenced to review anv order or
decision of the Customs Service under section 499(b) of the Tariff
Act of 1930, the court shall review the action on the basis of
the record before the Customs Service at the time of issuing such
decision or order.".
(5) Section 2642 is amended by inserting before the period
the following: "or laboratories accredited by the Customs Service under section 499(b) of the Tariff Act of 1930".
(b) APPUCATION OF SUBSECTION (a) AMENDMENTS.—For pur- 28usci58i
poses of applying the amendments made by subsection (a), any "°^decision or order of the Customs Service denjdng, suspending, or
revoking the accreditation of a private laboratory on or after the
date of the enactment of this Act and before regulations to implement section 499(b) of the Tariff Act of 1930 are issued shall
be treated as having been denied, suspended, or revoked under
such section 499(b).
(c) JURISDICTION OF COURT.—Section 1582(1) of title 28, United
States Code, is amended by inserting "593A," after "592,".
(d) FILING OF OFFICIAL DOCUMENTS.—Section 2635(a) of title
28, United States Code, is amended to read as follows:
"(a) In any action commenced in the Court of International
Trade contesting the denial of a protest imder section 515 of the

107 STAT. 2220

PUBLIC LAW 103-182—DEC. 8, 1993

Tariff Act of 1930 or the denial of a petition under section 516
of such Act, the Customs Service, as prescribed by the rules of
the court, shall file with the clerk of the court, as part of the
official record, any document, paper, information or data relating
to the entry of merchandise and the administrative determination
that is the subject of the protest or petition.".
SEC. 685. TREASURY FORFEITURE FUND.

Section 9703 of title 31, United States Code (as added by
Public Law 102-393), is amended—
(1) by redesignating subparagraphs (E), (F), (G), (H), and
(I) of subsection (a)(2) as subparagraphs (F), (G), (H), (I), and
(J), respectively;
(2) by inserting after subparagraph (D) of subsection (aX2)
the following new subparagraph:
"(E) the pa3anent of claims against employees of the
Customs Service settled by the Secretary under section
630 of the Tariff Act of 1930;"; and
(3) by striking out "shall" the first place it appears in
subsection (e) and inserting "may".
SEC. 686. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED
STATES.
(a) TECHNICAL AMENDMENTS.—The Revised Statutes of the

United States are amended as follows:
(1) Section 2793 (19 U.S.C. 288, 46 U.S.C. App. I l l , 123)
is amended—
(A) by striking out "Enrolled or licensed vessels
engaged in the foreign and coasting trade on the northern,
northeastern, and northwestern frontiers of the United
States," and inserting "Documented vessels with a coastwise. Great Lakes endorsement,"; and
(B) by striking out the first semicolon and all the
text that follows thereafter and inserting a period.
(2) Section 3126 (19 U.S.C. 293) is amended—
(A) by striking out "Any vessel, on being duly registered
in pursuance of the laws of the United States," and inserting "Any United States documented vessel with a registry
or coastwise endorsement, or both" and
(B) by striking out all the text occurring after the
first sentence.
(3) Section 3127 (19 U.S.C. 294) is amended by striking
out "in registered vessels" and inserting "a United States documented vessel with a registry or coastwise endorsement, or
both,".
(4) Section 4136 (46 U.S.C. App. 14) is amended by striking
out—
(A) "The Secretary of Commerce may issue a register
or enrollment" and inserting "The Secretary of Transportation may issue a certificate of documentation witn a
coastwise endorsement"; and
t
(B) "Secretary of Commerce," and inserting "Secretary
of Transportation,".
(5) Section 4336 (46 U.S.C. App. 277) is amended—
(A) by striking out "register or enrollment or license
of any vessel" and inserting "certificate of dociunentation
of any documented vessel"; and

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2221

(B) by striking out "Secretary of the Treasury is not
required to have its register or enrollment or license" and
inserting "Secretary of Transportation is not required to
have its certificate of dociimentation".
(b) CLEARANCE REQUIREMENTS.—Section 4197 of such Revised
Statutes (46 U.S.C. App. 91) is amended to read as follows:
^nSEC. 4197. CLEARANCE; VESSELa
"(a) WHEN REQUIRED; VESSELS OF THE UNITED STATES.—Except

as otherwise provided by law, any vessel of the United States
shall obtain clearance from the Customs Service before proceeding
frt>m a port or place in the United States—
"(1) for a foreign port or place;
"(2) for another port or place in the United States if the
vessel has on board bonded merchandise or foreign merchandise
for which entry has not been made; or
"(3) outside the territorial sea to visit a hovering vessel
or to receive merchandise while outside the territorial sea.
"(b) WHEN REQUIRED; OTHER VESSELS.—Except as otherwise
provided by law, any vessel that is not a vessel of the United
States shall obtain clearance from the Customs Service before
proceeding from a port or place in the United States—
"(1) for a foreign port or place;
"(2) for anotner port or place in the United States; or
"(3) outside the territorial sea to visit a hovering vessel
or to receive or deliver merchandise while outside the territorial
sea.
"(c) REGULATIONS.—^The Secretary of the Treasury may by
regulation—
"(1) prescribe the manner in which clearance under this
section is to be obtained, including the documents, data or
information which shall be submitted or transmitted, pursuant
to an authorized date interchange system, to obtain the clearance;
"(2) permit the Customs Service to grant clearance for
a vessel under this section before all requirements for clearance
are complied with, but only if the owner or operator of the
vessel files a bond in an amoimt set by the Secretary of the
Treasury conditioned upon the compliance by the owner or
operator with all si>ecified requirements for clearance within
a time period (not exceeding 4 business days) established by
the Secretary of the Treasury; and
"(3) authorize the Customs Service to permit clearance
of any vessel to be obtained at a place other tnan a designated
port of entry, under such conditions as he may prescribe.".
SEC. 687. A M E N D M E N T S TO TITLE 18, UNITED STATES CODE.

Section 965(a) of title 18, United States Code, is amended—
(1) by striking out "sections 91, 92, and 94 of Title 46"
and inserting "section 431 of the Tariff Act of 1930 (19 U.S.C.
1431) and section 4197 of the Revised Statutes of the United
States (46 U.S.C. App. 91),";
(2) by striking out "the collector of customs for the district
wherein such vessel is then located" and inserting "the Customs
Service"; and
(3) by striking out "the collector Uke" and inserting in
lieu thereof "the Customs Service like".

107 STAT. 2222

PUBLIC LAW 103-182—DEC. 8, 1993

SEC. 688. AMENDMENT TO THE ACT TO PREVENT POLX.UTION FROM
SHIPS.

Section 9(e) of the Act to Prevent Pollution from Ships (94
Stat. 2301, 33 U.S.C. 1908(e)) is amended by striking out "shall
refuse or revoke" and all of the text following Uiereafter and inserting "shall refuse or revoke the clearance required by section 4197
of the Revised Statutes of the United States (46 U.S.C. App. 91).
Clearance may be granted upon the filing of a bond or other surety
satisfactory to the Secretary. .
SEC. 689. MISCELLANEOUS TECHNICAL AMENDMENTS.
(a) ACT OF OCTOBER 3, 1913.—The Act of October

46 use app.
^^^-

3, 1913,
is amended—
(1) in section IV, J, subsection 1 (19 U.S.C. 128) by striking
out 'Sregistered as a vessel of the United States," and inserting
"documented under chapter 121 of title 46, United States
Code,"; and
(2) in section IV, J, subsection 3 (19 U.S.C. 131)—
(A) by striking out "vessels of the United States" and
inserting "United States documented vessels"; and
(B) by striking out "registered as a vessel of the United
States." and inserting "documented under chapter 121 of
title 46, United States Code.".
(b) ACT OF AUGUST 5, 1935.—Section 4 of the Act of August
5,1935 (19 U.S.C. 1704) is amended—
(1) by striking out "whenever the collector of customs of
the district in which any vessel is, or is sought to be, registered,
enrolled, Ucensed, or numbered," and inserting "when the Secretary of Transportation";
(2) by striking out "such collector" and inserting "the Secretary of Transportation";
(3) by striking out "said collector shall revoke the registry,
enrollment, license, or niunber of such vessel" and inserting
"the Secretaiy of Transportation shall revoke any endorsement
on the vessel's certificate of documentation or number (when
the Secretary is the authority issuing the number imder chapter
123 of title 46, United States Code)"; and
(4) by striking out "Such collector and all persons" and
inserting "The Secretary of Transportation and all persons".
(c) ACT OF NOVEMBER 6, 1966.—Sections 2(e) and 3(e) of the
Act of November 6, 1966 (46 U.S.C. App. 817d(e) and 817e(e))
are each amended—
(1) by striking out "The collector of customs at" and inserting "At": and
(2) by inserting ", the Customs Service" after "subsection
(a) of this section".
SEC. 690. REPEAL OF OBSOLETE PROVISIONS OF LAW.
(a) REVISED STATUTES.—^The following provisions of the Revised
Statutes of the United States are repealed:
(1) So much of section 2792 as is codified at 19 U.S.C.
289 and 46 U.S.C. App. 110 and 112 (as in effect on the
date of the enactment of this Act).
(2) Section 3111 (19 U.S.C. 282).
(3) Section 3118 (19 U.S.C. 286).
. (4) Section 3119 (19 U.S.C. 287).
(5) Section 3122 (19 U.S.C. 290).

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2223

(6) Section 3124 (19 U.S.C. 291).
(7) Section 3125 (19 U.S.C. 292).
(8) Section 4198 (46 U.S.C. App. 94).
(9) Section 4199 (46 U.S.C. App. 93).
(10) Section 4201 (46 U.S.C. App. 96).
(11) Section 4207.
(12) Section 4208 (46 U.S.C. App. 102).
(13) Section 4213 (46 U.S.C. App. 101).
(14) So much of section 4221 as is codified at 46 U.S.C.
App. 113 (as in effect on the date of the enactment of this
Act).
(15) Section 4222 (46 U.S.C. App. 126).
(16) Sections 4306, 4307, and 4308 (46 U.S.C. App. 351
through 353).
(17) Section 4332 (46 U.S.C. App. 274).
(18) Section 4348 (46 U.S.C. App. 293).
(19) Section 4358 (46 U.S.C. App. 306).
(20) Section 4361 (46 U.S.C. App. 307).
(21) Sections 4362 through 4369 (46 U.S.C. App. 308
through 315).
(22) Sections 4573 through 4576 (46 U.S.C. App. 674
through 677).
(b) TARIFF ACT OF 1930.—The following sections of the Tariff
Act of 1930 are repealed:
(1) Section 432 (19 U.S.C. 1432).
(2) Section 435 (19 U.S.C. 1435).
(3) Section 437 (19 U.S.C. 1437).
(4) Section 439 (19 U.S.C. 1439).
(5) Section 440 (19 U.S.C. 1440).
(6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and
1445).
(7) Section 465 (19 U.S.C. 1465).
(8) Section 482 (19 U.S.C. 1482).
(9) Section 583 (19 U.S.C. 1583).
(10) Section 585 (19 U.S.C. 1585).
(c) MISCELLANEOUS PROVISIONS.—^liie following provisions are
(1) Section 1 of the Act of February 10, 1900 (46 U.S.C.
App. 131).
(2) Section 2 of the Act of April 29, 1908 (46 U.S.C. App.
127).
(3) Section 1 of the Act of July 1, 1916 (46 U.S.C. App.
130).
(4) Sections 1 and 2 of the Act of July 3, 1926 (46 U.S.C.
App. 293a and 293b).
(5) The last undesignated paragraph of section 201 of the
Act of August 5,1935 (19 U.S.C. 1432a), is repealed.
(6) The Act of June 16,1937 (19 U.S.C. 1435b).
(7) The Act of May 4,1934 (46 U.S.C. App. 91a).
(8) Section 1403(b) of the Water Resources Development
Act of 1986 (Public Law 99-662; 26 U.S.C. 4461 note).
SEC. 691. REPORTS TO CONGRESS.
(a) ANTIDUMPING AND COUNTERVAILING DUTY COLLECTIONS.—

The Commissioner of Customs shall before the 60th day of each
fiscal year after fiscal year 1994 submit to Congress a report regard-

i9 use mm.

107 STAT. 2224

PUBLIC LAW 103-182—DEC. 8, 1993

ing the collection during the preceding fiscal year of duties imposed
imder the antidumping and countervailing duty laws.
(b) CES FEE REPORT.—

(1) AMENDMENT.—Section 9501(c) of the Omnibus Budget
Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by
adding at the end the following new paragraph:
"(3) The Commissioner of Customs is authorized to obtain
from the operators of centralized cargo examination stations
information regarding the fees paid to them for the provision
of services at these stations.".
(2) REPORT.—^Within 9 months after the date of the enactment of this subsection, the Commissioner of Customs shall
submit to the Committees referred to in section 9501(c) of
the Omnibus Budget Reconciliation Act of 1987, a report setting
forth—
(A) an estimate of the aggregate amount of fees paid
to operators of centralized cargo examination stations during fiscal year 1993; and
(B) the variations, if any, among customs districts with
respect to the amounts of the fees charged for centralized
cargo examination station services.
(c) COMPLIANCE WITH CUSTOMS LAWS.—Section 123 of the Customs and Trade Act of 1990 (19 U.S.C. 2083) is amended—
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following:
''(d) COMPLIANCE PROGRAM.—The Commissioner of Customs
shall—
"(1) devise and implement a methodology for estimating
the level of compliance with the laws administered by the
Customs Service; and
"(2) include as an additional part of the report required
to be submitted imder subsection (a) for each of fiscal years
1994, 1995, and 1996, an evaluation of the extent to which
such compliance was obtained during the 12-month period
preceding the 60th day before each such fiscal year.".
(d) COURIER SERVICES COMPLIANCE REPORT.—^The Commissioner of Customs shall initiate a compliance review of certain
courier services which may not be eligible for benefits under the
regulations of the Customs Service prescribed in part 128 of title
19 of the Code of Federal Regulations and shall submit a report
to Congress on the results of such review within 1 year after
the date of the enactment of this Act.

PUBLIC LAW 103-182—DEC. 8, 1993

107 STAT. 2225

, 682. EFFECTIVE DATE.

This title takes effect on the date of the enactment of this
Act.
Approved December 8, 1993.

LEGISLATIVE HISTORY—H.R. 3450 (S. 1627):
HOUSE REPORTS: No. 103-361, Pt. 1 (Comm. on Ways and Means), Ft. 2 (Comm. on
Banking, Finance and Urban Affairs), and Pt. 3 (Comm. on
Energy and Commerce).
SENATE REPORTS: No. 103-189 accompanying S. 1627 (Comm. on Finance, Comm.
on Agriculture, Nutrition, and Forestry, Comm. on Commerce,
Science, £ind Transportation, Comm. on Governmenteil Affairs,
Comm. on the Judiciary, and Comm. on Foreign Relations).
CONGRESSIONAL RECORD, Vol. 139 (1993):
Nov. 17, considered and passed House.
Nov. 18, S. 1627 considered in Senate.
Nov. 19, 20, H.R. 3450 considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 29 (1993):
Dec. 8, Presidential remarks.

19 USC 58c