ACTION
FROM THE COMMITTEE ON WAYS AND MEANS

Thomas Announces Committee Action on H.R. 4759, the “United States-Australia Free Trade Agreement Implementation Act,” and H.R. 4418, the “Customs Border Security and Trade Agencies Authorization Act of 2004”

DESCRIPTION OF H.R. 4759 AS APPROVED:

• Title I would provide the general congressional approval of the Agreement and procedures for the President to follow in order to execute his authority to implement the Agreement, such as consultation with Congress, layover and advice from advisory committees.
• Title II would provide authority for the President to proclaim tariff modifications to carry out the Agreement and sets out the rules of origin for goods to qualify for preferential treatment. In particular, the Agreement would require a “yarn forward” rule of origin for most textile and apparel goods.
• The Agreement would permit the United States to impose an agricultural safeguard measure, in the form of additional duties, on certain agricultural imports from Australia. Section 202 would provide for three different types of agricultural safeguards. The first would apply to certain horticulture goods. The second would apply to certain beef goods imported into the United States above specified quantities during the period from January 1, 2013, through December 31, 2022. The third would apply to the same categories of beef goods imported into the United States above specified quantities and if the monthly average index price in the United States falls below the specified “trigger” price beginning January 1, 2023. The United States Trade Representative may waive the application of beef safeguards if he determines that extraordinary market conditions demonstrate that a waiver would be in the U.S. national interest, after notice and consultation with the House Committee on Ways and Means and the Senate Committee on Finance, as well as the appropriate private sector advisory committees.
• Other provisions in the bill would provide for the exemption from the Customs merchandise processing fee for Australian goods and enforcement authority to prevent circumvention of textile or apparel requirements.
• Title III would provide a temporary mechanism to impose import relief when increased quantities of Australian imports are a substantial cause of serious injury or threat of serious injury to the domestic industry. Another provision would provide a special safeguard relief procedure for textile and apparel imports. Finally, when conducting a global safeguard action under Section 201 of the Trade Act of 1974 (P.L. 93-618), the President would be able to exclude Australian imports if they are not a substantial cause of serious injury or threat of serious injury to the industry.
• With respect to the procurement obligations in the Agreement, Title IV would amend the term “eligible product” in section 308(4)(A) of the Trade Agreements Act of 1979
• (P.L. 96-39) to provide that, for a party to a free trade agreement that entered into force for the United States after December 31, 2003, and prior to January 2, 2005, an “eligible product” means “a product or service of that country or instrumentality which is covered under the free trade agreement for procurement by the United States.” This amended definition, coupled with the President’s exercise of his authority under section 301(a) of the Trade Agreement Act, would allow procurement of products and services of Australia and other parties to free trade agreements that entered into force during the specified time period.

DESCRIPTION OF H.R. 4418 AS APPROVED:

• Section 101 would authorize appropriations for U.S. Customs and Border Protection (CBP) of $6.203 billion for fiscal year 2005 and $6.466 billion for fiscal year 2006. It would further authorize appropriations for U.S. Immigration and Customs Enforcement (ICE) of $4.011 billion for fiscal year 2005 and $4.336 billion for fiscal year 2006.
• Section 102 would require CBP and ICE to establish cost accounting systems that can distinguish between commercial and noncommercial operations. Section 103 would require the Comptroller General to conduct a study and report to Congress on the extent to which the amount of the customs user fees approximates the cost of services provided. Section 104 would require the Commissioner of Customs to report to Congress on the One Face at the Border initiative.
• Additional provisions in Title I would allow for the filing of reconfigured entries, designate the San Antonio International Airport for customs processing of private aircraft, require the Commissioner of CBP to seek to establish Integrated Border Inspection Areas on either side of the United States-Canada border, and express the sense of Congress that CBP should interpret provisions of the African Growth and Opportunity Act (P.L. 106-200), the Andean Trade Preference Act (P.L. 102-182), and the Caribbean Basin Economic Recovery Act
• (P.L. 98-67) relating to preferential treatment of textile and apparel articles broadly in order to expand trade by maximizing opportunities for imports of such articles from eligible beneficiary countries.
• Title II would authorize appropriations for fiscal years 2005 and 2006 for the Office of the United States Trade Representative (USTR) of $39.6 million per year. It would authorize an additional $2 million per year for the appointment of additional staff in the Office of the General Counsel and the Office of Monitoring and Enforcement of USTR.
• Title III would authorize appropriations for the U.S. International Trade Commission of $61.7 million for fiscal year 2005 and $65.3 million for fiscal year 2006.