[116th Congress Public Law 113]
[From the U.S. Government Publishing Office]
[[Page 134 STAT. 11]]
Public Law 116-113
116th Congress
An Act
To implement the Agreement between the United States of America, the
United Mexican States, and Canada attached as an Annex to the Protocol
Replacing the North American Free Trade Agreement. <<NOTE: Jan. 29,
2020 - [H.R. 5430]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: United States-
Mexico-Canada Agreement Implementation Act. Exports and imports.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 19 USC 4501 note.>> Short Title.--This Act may be cited
as the ``United States-Mexico-Canada Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE USMCA
Sec. 101. Approval and entry into force of the USMCA.
Sec. 102. Relationship of the USMCA to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force;
initial regulations; tariff proclamation authority.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Trade Representative authority.
Sec. 107. Effective date.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Exclusion of originating goods of USMCA countries from special
agriculture safeguard authority.
Sec. 202. Rules of origin.
Sec. 202A. Special rules for automotive goods.
Sec. 203. Merchandise processing fee.
Sec. 204. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 205. Reliquidation of entries.
Sec. 206. Recordkeeping requirements.
Sec. 207. Actions regarding verification of claims under the USMCA.
Sec. 208. Drawback [reserved].
Sec. 209. Other amendments to the Tariff Act of 1930.
Sec. 210. Regulations.
TITLE III--APPLICATION OF USMCA TO SECTORS AND SERVICES
Subtitle A--Relief From Injury Caused by Import Competition [reserved]
Subtitle B--Temporary Entry of Business Persons [reserved]
Subtitle C--United States-Mexico Cross-Border Long-Haul Trucking
Services
Sec. 321. Definitions.
Sec. 322. Investigations and determinations by Commission.
[[Page 134 STAT. 12]]
Sec. 323. Commission recommendations and report.
Sec. 324. Action by President with respect to affirmative determination.
Sec. 325. Confidential business information.
Sec. 326. Conforming amendments.
Sec. 327. Survey of operating authorities.
TITLE IV--ANTIDUMPING AND COUNTERVAILING DUTIES
Subtitle A--Preventing Duty Evasion
Sec. 401. Cooperation on duty evasion.
Subtitle B--Dispute Settlement [reserved]
Subtitle C--Conforming Amendments
Sec. 421. Judicial review in antidumping duty and countervailing duty
cases.
Sec. 422. Conforming amendments to other provisions of the Tariff Act of
1930.
Sec. 423. Conforming amendments to title 28, United States Code.
Subtitle D--General Provisions
Sec. 431. Effect of termination of USMCA country status.
Sec. 432. Effective date.
TITLE V--TRANSFER PROVISIONS AND OTHER AMENDMENTS
Sec. 501. Drawback.
Sec. 502. Relief from injury caused by import competition.
Sec. 503. Temporary entry.
Sec. 504. Dispute settlement in antidumping and countervailing duty
cases.
Sec. 505. Government procurement.
Sec. 506. Actions affecting United States cultural industries.
Sec. 507. Regulatory treatment of uranium purchases.
Sec. 508. Report on amendments to existing law.
TITLE VI--TRANSITION TO AND EXTENSION OF USMCA
Subtitle A--Transitional Provisions
Sec. 601. Repeal of North American Free Trade Agreement Implementation
Act.
Sec. 602. Continued suspension of the United States-Canada Free-Trade
Agreement.
Subtitle B--Joint Reviews Regarding Extension of USMCA
Sec. 611. Participation in joint reviews with Canada and Mexico
regarding extension of the term of the USMCA and other action
regarding the USMCA.
Subtitle C--Termination of USMCA
Sec. 621. Termination of USMCA.
TITLE VII--LABOR MONITORING AND ENFORCEMENT
Sec. 701. Definitions.
Subtitle A--Interagency Labor Committee for Monitoring and Enforcement
Sec. 711. Interagency labor committee for monitoring and enforcement.
Sec. 712. Duties.
Sec. 713. Enforcement priorities.
Sec. 714. Assessments.
Sec. 715. Recommendation for enforcement action.
Sec. 716. Petition process.
Sec. 717. Hotline.
Sec. 718. Reports.
Sec. 719. Consultations on appointment and funding of rapid response
labor panelists.
Subtitle B--Mexico Labor Attaches
Sec. 721. Establishment.
Sec. 722. Duties.
Sec. 723. Status.
Subtitle C--Independent Mexico Labor Expert Board
Sec. 731. Establishment.
Sec. 732. Membership; term.
Sec. 733. Funding.
[[Page 134 STAT. 13]]
Sec. 734. Reports.
Subtitle D--Forced Labor
Sec. 741. Forced labor enforcement task force.
Sec. 742. Timeline required.
Sec. 743. Reports required.
Sec. 744. Duties related to Mexico.
Subtitle E--Enforcement Under Rapid Response Labor Mechanism
Sec. 751. Transmission of reports.
Sec. 752. Suspension of liquidation.
Sec. 753. Final remedies.
TITLE VIII--ENVIRONMENT MONITORING AND ENFORCEMENT
Sec. 801. Definitions.
Subtitle A--Interagency Environment Committee for Monitoring and
Enforcement
Sec. 811. Establishment.
Sec. 812. Assessment.
Sec. 813. Monitoring actions.
Sec. 814. Enforcement actions.
Sec. 815. Other monitoring and enforcement actions.
Sec. 816. Report to Congress.
Sec. 817. Regulations.
Subtitle B--Other Matters
Sec. 821. Border water infrastructure improvement authority.
Sec. 822. Detail of personnel to Office of the United States Trade
Representative.
Subtitle C--North American Development Bank
Sec. 831. General capital increase.
Sec. 832. Policy goals.
Sec. 833. Efficiencies and streamlining.
Sec. 834. Performance measures.
TITLE IX--USMCA SUPPLEMENTAL APPROPRIATIONS ACT, 2019
SEC. <<NOTE: 19 USC 4501.>> 2. PURPOSE.
The purpose of this Act is to approve and implement the Agreement
between the United States of America, the United Mexican States, and
Canada entered into under the authority of section 103(b) of the
Bipartisan Congressional Trade Priorities and Accountability Act of 2015
(19 U.S.C. 4202(b)).
SEC. <<NOTE: 19 USC 4502.>> 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives.
(2) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(3) Identical goods.--The term ``identical goods'' means
goods that are the same in all respects relevant to the rule of
origin that qualifies the goods as originating goods.
(4) International trade commission.--The term
``International Trade Commission'' means the United States
International Trade Commission.
(5) Mexico.--The term ``Mexico'' means the United Mexican
States.
(6) NAFTA.--The term ``NAFTA'' means the North American Free
Trade Agreement approved by Congress under section 101(a)(1) of
the North American Free Trade Agreement Implementation Act (19
U.S.C. 3311(a)(1)).
[[Page 134 STAT. 14]]
(7) Preferential tariff treatment.--The term ``preferential
tariff treatment'' means the customs duty rate that is
applicable to an originating good (as defined in section 202(a))
under the USMCA.
(8) Trade representative.--The term ``Trade Representative''
means the United States Trade Representative.
(9) USMCA.--The term ``USMCA'' means the Agreement between
the United States of America, the United Mexican States, and
Canada, which is--
(A) attached as an Annex to the Protocol Replacing
the North American Free Trade Agreement with the
Agreement between the United States of America, the
United Mexican States, and Canada, done at Buenos Aires
on November 30, 2018, as amended by the Protocol of
Amendment to the Agreement Between the United States of
America, the United Mexican States, and Canada, done at
Mexico City on December 10, 2019; and
(B) approved by Congress under section 101(a)(1).
(10) USMCA country.--Except as otherwise provided, the term
``USMCA country'' means--
(A) Canada for such time as the USMCA is in force
with respect to, and the United States applies the USMCA
to, Canada; and
(B) Mexico for such time as the USMCA is in force
with respect to, and the United States applies the USMCA
to, Mexico.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE USMCA
SEC. <<NOTE: 19 USC 4511.>> 101. APPROVAL AND ENTRY INTO FORCE OF
THE USMCA.
(a) Approval of USMCA and Statement of Administrative Action.--
Pursuant to section 106 of the Bipartisan Congressional Trade Priorities
and Accountability Act of 2015 (19 U.S.C. 4205) and section 151 of the
Trade Act of 1974 (19 U.S.C. 2191), Congress approves--
(1) the Protocol Replacing the North American Free Trade
Agreement with the Agreement between the United States of
America, the United Mexican States, and Canada, done at Buenos
Aires on November 30, 2018, as submitted to Congress on December
13, 2019;
(2) the Agreement between the United States of America, the
United Mexican States, and Canada, attached as an Annex to the
Protocol, as amended by the Protocol of Amendment to the
Agreement between the United States of America, the United
Mexican States, and Canada, done at Mexico City on December 10,
2019, as submitted to Congress on December 13, 2019; and
(3) the statement of administrative action proposed to
implement that Agreement, as submitted to Congress on December
13, 2019.
(b) Conditions for Entry Into Force of the Agreement.--The
President <<NOTE: President. Time period. Notification.>> is authorized
to provide for the USMCA to enter into force with respect to Canada and
Mexico not earlier than 30 days after the date on which the President
submits to Congress the written notice required by section 106(a)(1)(G)
of the Bipartisan
[[Page 134 STAT. 15]]
Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C.
4205(a)(1)(G)), which shall include the date on which the USMCA will
enter into force.
SEC. <<NOTE: 19 USC 4512.>> 102. RELATIONSHIP OF THE USMCA TO
UNITED STATES AND STATE LAW.
(a) Relationship of USMCA to United States Law.--
(1) United states law to prevail in conflict.--No provision
of the USMCA, nor the application of any such provision to any
person or circumstance, which is inconsistent with any law of
the United States, shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States,
or
(B) to limit any authority conferred under any law
of the United States,
unless specifically provided for in this Act.
(b) Relationship of USMCA to State Law.--
(1) Legal challenge.--No State law, or the application
thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application is
inconsistent with the USMCA, except in an action brought by the
United States for the purpose of declaring such law or
application invalid.
(2) Definition of state law.--For purposes of this
subsection, the term ``State law'' includes--
(A) any law of a political subdivision of a State;
and
(B) any State law regulating or taxing the business
of insurance.
(c) Effect of USMCA With Respect to Private Remedies.--No person
other than the United States--
(1) shall have any cause of action or defense under the
USMCA or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provision
of law, any action or inaction by any department, agency, or
other instrumentality of the United States, any State, or any
political subdivision of a State, on the ground that such action
or inaction is inconsistent with the USMCA.
SEC. <<NOTE: President. 19 USC 4513.>> 103. IMPLEMENTING ACTIONS
IN ANTICIPATION OF ENTRY INTO FORCE;
INITIAL REGULATIONS; TARIFF PROCLAMATION
AUTHORITY.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the enactment
of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may prescribe 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 on
which the USMCA enters into force is appropriately implemented
on such date, but no such proclamation or regulation may have an
effective date earlier than the date on which the USMCA enters
into force.
(2) Effective date of certain proclaimed actions.--Any
action proclaimed <<NOTE: Federal Register, publication.>> by
the President under the authority of this Act that is not
subject to the consultation and layover
[[Page 134 STAT. 16]]
provisions under section 104 may not take effect before the 15th
day after the date on which the text of the proclamation is
published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date on which
the USMCA enters into force of any action proclaimed under this
section.
(b) <<NOTE: Deadlines.>> Initial Regulations.--
(1) In general.--Except as provided by paragraph (2) or (3),
initial regulations necessary or appropriate to carry out the
actions required by or authorized under this Act or proposed in
the statement of administrative action approved under section
101(a)(2) to implement the USMCA shall, to the maximum extent
feasible, be prescribed within 1 year after the date on which
the USMCA enters into force.
(2) Uniform regulations.--Interim or initial regulations to
implement the Uniform Regulations regarding rules of origin
provided for under article 5.16 of the USMCA shall be prescribed
not later than the date on which the USMCA enters into force.
(3) Implementing actions with effective dates after entry
into force.--In the case of any implementing action that takes
effect on a date after the date on which the USMCA enters into
force, initial regulations to carry out that action shall, to
the maximum extent feasible, be prescribed within 1 year after
such effective date.
(c) <<NOTE: Determinations.>> Tariff Modifications.--
(1) Tariff modifications provided for in the usmca.--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 2.4, 2.5, 2.7, 2.8, 2.9, 2.10, 6.2,
and 6.3, the Schedule of the United States to Annex 2-B,
including the appendices to that Annex, Annex 2-C, and Annex 6-
A, of the USMCA.
(2) Other tariff modifications.--Subject to the consultation
and layover provisions of section 104, the President may
proclaim--
(A) such modifications or continuation of any duty,
(B) such modifications as the United States may
agree to with a USMCA country regarding the staging of
any duty treatment set forth in the Schedule of the
United States to Annex 2-B of the USMCA, including the
appendices to that Annex,
(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 a USMCA country
provided for by the USMCA.
[[Page 134 STAT. 17]]
(3) Conversion to ad valorem rates.--For purposes of
paragraphs (1) and (2), with respect to any good for which the
base rate in the Schedule of the United States to Annex 2-B of
the USMCA is a specific or compound rate of duty, the President
shall substitute for the base rate an ad valorem rate that the
President determines to be equivalent to the base rate.
(4) Tariff-rate quotas.--In implementing the tariff-rate
quotas set forth in the Schedule of the United States to Annex
2-B of the USMCA, the President shall take such actions as may
be necessary to ensure that imports of agricultural goods do not
disrupt the orderly marketing of agricultural goods in the
United States.
(5) Presidential proclamation authority relating to rules of
origin.--
(A) In general.--The President may proclaim, as part
of the HTS--
(i) the provisions set forth in Annex 4-B of
the USMCA;
(ii) the provisions set forth in paragraph 2
of article 3.A.6 of Annex 3-A of the USMCA;
(iii) the provisions set forth in paragraph 5
of Annex 3-B of the USMCA;
(iv) the provisions set forth in paragraphs
14(b), 14(c), and 15(e) of Section B of Appendix 2
to Annex 2-B of the USMCA; and
(v) any additional subordinate category that
is necessary to carry out section 202 and section
202A consistent with the USMCA.
(B) Modifications.--
(i) In general.--Subject to the consultation
and layover provisions of section 104, the
President may proclaim modifications to the
provisions proclaimed under the authority of
subparagraph (A), other than the provisions of
chapters 50 through 63 of the USMCA.
(ii) Special rule for textiles.--
Notwithstanding clause (i), and subject to the
consultation and layover provisions of section
104, the President may proclaim--
(I) such modifications to the
provisions proclaimed under the
authority of subparagraph (A) as are
necessary to implement an agreement with
one or more USMCA countries pursuant to
article 6.4 of the USMCA; and
(II) <<NOTE: Time period.>> before
the end of the 1-year period beginning
on the date on which the USMCA enters
into force, modifications to correct any
typographical, clerical, or other
nonsubstantive technical error regarding
the provisions of chapters 50 through 63
of the USMCA.
SEC. <<NOTE: 19 USC 4514.>> 104. CONSULTATION AND LAYOVER
PROVISIONS FOR, AND EFFECTIVE DATE OF,
PROCLAIMED ACTIONS.
If a provision <<NOTE: President.>> 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, that
action may be proclaimed only if--
[[Page 134 STAT. 18]]
(1) the President has obtained advice regarding the proposed
action from--
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) <<NOTE: Hearings.>> the International Trade
Commission, which shall hold a public hearing on the
proposed action before providing advice regarding the
proposed action;
(2) <<NOTE: Reports.>> the President has submitted to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report that sets forth--
(A) the proposed action and the reasons therefor;
and
(B) the advice obtained under paragraph (1);
(3) <<NOTE: Time period.>> a period of 60 calendar days,
beginning on the first day on which the requirements set forth
in paragraphs (1) and (2) have been met, has expired; and
(4) the President has consulted with the committees referred
to in paragraph (2) regarding the proposed action during the
period referred to in paragraph (3).
SEC. <<NOTE: 19 USC 4515.>> 105. ADMINISTRATION OF DISPUTE
SETTLEMENT PROCEEDINGS.
(a) United States Section of Secretariat.--
(1) <<NOTE: President.>> Establishment or designation of
office.--The President is authorized to establish or designate
within the Department of Commerce an office to serve as the
United States Section of the Secretariat established under
article 30.6 of the USMCA.
(2) Functions and administrative assistance.--The office
established or designated under paragraph (1), subject to the
oversight of the interagency group established under section
411(c)(2), shall--
(A) carry out its functions within the Secretariat
to facilitate the operation of the USMCA, including the
operation of section D of chapter 10 and chapter 31 of
the USMCA; and
(B) provide administrative assistance to--
(i) panels established under chapter 31 of the
USMCA, including under Annex 31-A (relating to the
Facility-Specific Rapid Response Labor Mechanism);
(ii) technical advisers and experts provided
for under chapter 31 of the USMCA;
(iii) binational panels and extraordinary
challenge committees established under section D
of chapter 10 of the USMCA; and
(iv) binational panels and extraordinary
challenge committees established under NAFTA for
matters covered by article 34.1 of the USMCA
(relating to transition from NAFTA).
(3) Treatment of office under freedom of information act.--
The office established or designated under paragraph (1) shall
not be considered an agency for purposes of section 552 of title
5, United States Code.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year after fiscal year 2020 to the
Department of Commerce $2,000,000 for--
(1) the operations of the office established or designated
under subsection (a)(1); and
[[Page 134 STAT. 19]]
(2) the payment of the United States share of the expenses
of--
(A) panels established under chapter 31 of the
USMCA, including under Annex 31-A (relating to the
Facility-Specific Rapid Response Labor Mechanism);
(B) binational panels and extraordinary challenge
committees established under section D of chapter 10 of
the USMCA; and
(C) binational panels and extraordinary challenge
committees established under NAFTA for matters covered
by article 34.1 of the USMCA (relating to transition
from NAFTA).
(c) Reimbursement of Certain Expenses.--If the Canadian Section or
the Mexican Section of the Secretariat provides funds to the United
States Section during any fiscal year as reimbursement for expenses in
connection with dispute settlement proceedings under section D of
chapter 10 or chapter 31 of the USMCA, or under chapter 19 of NAFTA, the
United States Section may, notwithstanding section 3302 of title 31,
United States Code, retain and use such funds to carry out the functions
described in subsection (a)(2).
SEC. <<NOTE: 19 USC 4516.>> 106. TRADE REPRESENTATIVE AUTHORITY.
If a country (other than the United States) that has signed the
USMCA does not enact implementing legislation, the Trade Representative
is authorized to enter into negotiations with the other country that has
signed the USMCA to consider how the applicable provisions of the USMCA
can come into force with respect to the United States and that other
country as promptly as possible.
SEC. <<NOTE: 19 USC 4501 note.>> 107. EFFECTIVE DATE.
(a) In General.--Sections 1 through 3 and this title (other than
section 103(c)) shall take effect on the date of the enactment of this
Act.
(b) Proclamation Authority.--Section 103(c) shall take effect on the
date on which the USMCA enters into force.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. EXCLUSION OF ORIGINATING GOODS OF USMCA COUNTRIES FROM
SPECIAL AGRICULTURE SAFEGUARD AUTHORITY.
(a) In General.--Section 405(e) of the Uruguay Round Agreements Act
(19 U.S.C. 3602(e)) is amended to read as follows:
``(e) Exclusion of Originating Goods of USMCA Countries.--
``(1) <<NOTE: President.>> In general.--The President shall
exempt from any duty imposed under this section any good that
qualifies as an originating good under section 202 of the United
States-Mexico-Canada Agreement Implementation Act of a USMCA
country with respect to which preferential tariff treatment is
provided under the USMCA.
``(2) Definitions.--In this subsection, the terms
`preferential tariff treatment', `USMCA', and `USMCA country'
have the meanings given those terms in section 3 of the United
States-Mexico-Canada Agreement Implementation Act.''.
(b) <<NOTE: 19 USC 3602 note.>> Effective Date.--
[[Page 134 STAT. 20]]
(1) In general.--The amendment made by subsection (a)
shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered for
consumption, or withdrawn from warehouse for
consumption, on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into
force--
(A) the amendment made by subsection (a) to section
405(e) of the Uruguay Round Agreements Act (19 U.S.C.
3602(e)) shall not apply with respect to the good; and
(B) section 405(e) of such Act, as in effect on the
day before that date, shall continue to apply on and
after that date with respect to the good.
SEC. 202. <<NOTE: 19 USC 4531.>> RULES OF ORIGIN.
(a) Definitions.--In this section:
(1) Aquaculture.--The term ``aquaculture'' means the farming
of aquatic organisms, including fish, molluscs, crustaceans,
other aquatic invertebrates, and aquatic plants from seed stock
such as eggs, fry, fingerlings, or larvae, by intervention in
the rearing or growth processes to enhance production such as
regular stocking, feeding, or protection from predators.
(2) Customs valuation agreement.--The term ``Customs
Valuation Agreement'' means the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade 1994
referred to in section 101(d)(8) of the Uruguay Round Agreements
Act (19 U.S.C. 3511(d)(8)).
(3) Fungible good or fungible material.--The term ``fungible
good'' or ``fungible material'' means a good or material, as the
case may be, that is interchangeable with another good or
material for commercial purposes and the properties of which are
essentially identical to such other good or material.
(4) Good wholly obtained or produced entirely in the
territory of one or more usmca countries.--The term ``good
wholly obtained or produced entirely in the territory of one or
more USMCA countries'' means any of the following:
(A) A mineral good or other naturally occurring
substance extracted or taken from the territory of one
or more USMCA countries.
(B) A plant, plant good, vegetable, or fungus grown,
cultivated, harvested, picked, or gathered in the
territory of one or more USMCA countries.
(C) A live animal born and raised in the territory
of one or more USMCA countries.
(D) A good obtained in the territory of one or more
USMCA countries from a live animal.
(E) An animal obtained by hunting, trapping,
fishing, gathering, or capturing in the territory of one
or more USMCA countries.
(F) A good obtained in the territory of one or more
USMCA countries from aquaculture.
(G) A fish, shellfish, or other marine life taken
from the sea, seabed, or subsoil outside the territory
of one
[[Page 134 STAT. 21]]
or more USMCA countries and outside the territorial sea
of any country that is not a USMCA country by--
(i) a vessel that is registered or recorded
with a USMCA country and flying the flag of that
country; or
(ii) a vessel that is documented under the
laws of the United States.
(H) A good produced on board a factory ship from
goods referred to in subparagraph (G), if such factory
ship--
(i) is registered or recorded with a USMCA
country and flies the flag of that country; or
(ii) is a vessel that is documented under the
laws of the United States.
(I) A good, other than a good referred to in
subparagraph (G), that is taken by a USMCA country, or a
person of a USMCA country, from the seabed or subsoil
outside the territory of a USMCA country, if that USMCA
country has the right to exploit such seabed or subsoil.
(J) Waste and scrap derived from--
(i) production in the territory of one or more
USMCA countries; or
(ii) used goods collected in the territory of
one or more USMCA countries, if such goods are fit
only for the recovery of raw materials.
(K) A good produced in the territory of one or more
USMCA countries exclusively from goods referred to in
any of subparagraphs (A) through (J), or from their
derivatives, at any stage of production.
(5) Indirect material.--The term ``indirect material'' means
a material used or consumed in the production, testing, or
inspection of a good but not physically incorporated into the
good, or a material used or consumed in the maintenance of
buildings or the operation of equipment associated with the
production of a good, including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used or consumed in
the maintenance of equipment or buildings;
(D) lubricants, greases, compounding materials, and
other materials used or consumed in production or to
operate equipment or buildings;
(E) gloves, glasses, footwear, clothing, safety
equipment, and supplies;
(F) equipment, devices, and supplies used for
testing or inspecting the good;
(G) catalysts and solvents; and
(H) any other material that is not incorporated into
the good, if the use of the material in the production
of the good can reasonably be demonstrated to be a part
of that production.
(6) Intermediate material.--The term ``intermediate
material'' means a material that is self-produced, used or
consumed in the production of a good, and designated as an
intermediate material pursuant to subsection (d)(9).
(7) Material.--The term ``material'' means a good that is
used or consumed in the production of another good and includes
a part or an ingredient.
[[Page 134 STAT. 22]]
(8) Net cost.--The term ``net cost'' means total cost minus
sales promotion, marketing, and after-sales service costs,
royalties, shipping and packing costs, and nonallowable interest
costs that are included in the total cost.
(9) 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 forth in subsection (d)(7).
(10) Nonallowable interest costs.--The term ``nonallowable
interest costs'' means interest costs incurred by a producer
that exceed 700 basis points above the applicable official
interest rate for comparable maturities of the country in which
the producer is located.
(11) Nonoriginating good or nonoriginating material.--The
term ``nonoriginating good'' or ``nonoriginating material''
means a good or material, as the case may be, that does not
qualify as originating under this section.
(12) Originating good; originating material.--The term
``originating good'' or ``originating material'' means a good or
material, as the case may be, that qualifies as originating
under this section.
(13) Packaging materials and containers.--The term
``packaging materials and containers'' means materials and
containers in which a good is packaged for retail sale.
(14) Packing materials and containers.--The term ``packing
materials and containers'' means materials and containers that
are used to protect a good during transportation.
(15) Producer.--The term ``producer'' means a person who
engages in the production of a good.
(16) Production.--The term ``production'' means--
(A) growing, cultivating, raising, mining,
harvesting, fishing, trapping, hunting, capturing,
breeding, extracting, manufacturing, processing, or
assembling a good; or
(B) the farming of aquatic organisms through
aquaculture.
(17) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner appropriate to the circumstances.
(18) Recovered material.--The term ``recovered material''
means a material in the form of individual parts that are the
result of--
(A) the disassembly of a used good into individual
parts; and
(B) the cleaning, inspecting, testing, or other
processing that is necessary for improvement to sound
working condition of such individual parts.
(19) Remanufactured good.--The term ``remanufactured good''
means a good classified in the HTS under any of chapters 84
through 90 or under heading 9402, other than a good classified
under heading 8418, 8509, 8510, 8516, or 8703 or subheading
8414.51, 8450.11, 8450.12, 8508.11, or 8517.11, that--
(A) is entirely or partially composed of recovered
materials;
(B) has a life expectancy similar to, and performs
in a manner that is the same as or similar to, such a
good when new; and
(C) has a factory warranty similar to that
applicable to such a good when new.
[[Page 134 STAT. 23]]
(20) Royalties.--The term ``royalties'' means payments of
any kind, including payments under technical assistance or
similar agreements, made as consideration for the use of, or
right to use, a copyright, literary, artistic, or scientific
work, patent, trademark, design, model, plan, or secret formula
or secret process, excluding payments under technical assistance
or similar agreements that can be related to a specific service
such as--
(A) personnel training, without regard to where the
training is performed; or
(B) if performed in the territory of one or more
USMCA countries, engineering, tooling, die-setting,
software design and similar computer services, or other
services.
(21) Sales promotion, marketing, and after-sales service
costs.--The term ``sales promotion, marketing, and after-sales
service costs'' means the costs related to sales promotion,
marketing, and after-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, free samples, sales, marketing, and
after-sales service literature (product brochures,
catalogs, technical literature, price lists, service
manuals, and sales aid information), establishment and
protection of logos and trademarks, sponsorships,
wholesale and retail 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
benefits), traveling and living expenses, and membership
and professional fees for sales promotion, marketing,
and after-sales service personnel.
(D) Product liability insurance.
(E) Rent and depreciation of sales promotion,
marketing, and after-sales service offices and
distribution centers.
(F) Payments by the producer to other persons for
warranty repairs.
(G) If the costs are identified separately for sales
promotion, marketing, or after-sales service of goods on
the financial statements or cost accounts of the
producer, the following:
(i) Property insurance premiums, taxes,
utilities, and repair and maintenance of sales
promotion, marketing, and after-sales service
offices and distribution centers.
(ii) Recruiting and training of sales
promotion, marketing, and after-sales service
personnel, and after-sales training of customers'
employees.
(iii) Office supplies for sales promotion,
marketing, and after-sales service of goods.
(iv) Telephone, mail, and other
communications.
(22) 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 good.
[[Page 134 STAT. 24]]
(23) Shipping and packing costs.--The term ``shipping and
packing costs'' means the costs incurred in packing a good for
shipment and shipping the good from the point of direct shipment
to the buyer, excluding the costs of preparing and packaging the
good for retail sale.
(24) Territory.--The term ``territory'', with respect to a
USMCA country, has the meaning given that term in section C of
chapter 1 of the USMCA.
(25) Total cost.--
(A) In general.--The term ``total cost''--
(i) means all product costs, period costs, and
other costs for a good incurred in the territory
of one or more USMCA countries; and
(ii) does not include--
(I) profits that are earned by the
producer of the good, regardless of
whether the costs are retained by the
producer or paid out to other persons as
dividends; or
(II) taxes paid on those profits,
including capital gains taxes.
(B) Other definitions.--In this paragraph:
(i) Other costs.--The term ``other costs''
means all costs recorded on the books of the
producer that are not product costs or period
costs, such as interest.
(ii) Period costs.--The term ``period costs''
means costs, other than product costs, that are
expensed in the period in which they are incurred,
such as selling expenses and general and
administrative expenses.
(iii) Product costs.--The term ``product
costs'' means costs that are associated with the
production of a good, including the value of
materials, direct labor costs, and direct
overhead.
(26) Transaction value.--The term ``transaction value''
means the price--
(A) actually paid or payable for a good or material
with respect to a transaction of a producer; and
(B) adjusted in accordance with the principles set
forth in paragraphs 1, 3, and 4 of article 8 of the
Customs Valuation Agreement.
(27) USMCA country.--The term ``USMCA country'' means the
United States, Canada, or Mexico for such time as the USMCA is
in force with respect to Canada or Mexico, and the United States
applies the USMCA to Canada or Mexico.
(28) Value.--The term ``value'' means the value of a good or
material for purposes of calculating customs duties or applying
this section.
(b) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a chapter, heading, or subheading, that reference
shall be a reference to a chapter, heading, or subheading of the
HTS.
(3) Cost or value.--Any cost or value referred to in this
section with respect to a good shall be recorded and maintained
in accordance with the generally accepted accounting principles
[[Page 134 STAT. 25]]
applicable in the territory of the USMCA country in which the
good is produced.
(c) Originating Goods.--
(1) In general.--For purposes of this Act and for purposes
of implementing the preferential tariff treatment provided for
under the USMCA, except as otherwise provided in this section, a
good is an originating good if--
(A) the good is a good wholly obtained or produced
entirely in the territory of one or more USMCA
countries;
(B) the good is produced entirely in the territory
of one or more USMCA countries using nonoriginating
materials, if the good satisfies all applicable
requirements set forth in Annex 4-B of the USMCA; or
(C) the good is produced entirely in the territory
of one or more USMCA countries, exclusively from
originating materials;
(D) except for a good provided for under any of
chapters 61 through 63--
(i) the good is produced entirely in the
territory of one or more USMCA countries;
(ii) one or more of the nonoriginating
materials provided for as parts under the HTS and
used in the production of the good do not satisfy
the requirements set forth in Annex 4-B of the
USMCA because--
(I) both the good and its materials
are classified under the same subheading
or under the same heading that is not
further subdivided into subheadings; or
(II) the good was imported into the
territory of a USMCA country in an
unassembled form or a disassembled form
but was classified as an assembled good
pursuant to rule 2(a) of the General
Rules of Interpretation of the HTS; and
(iii) the regional value content of the good
is not less than 60 percent if the transaction
value method is used, or not less than 50 percent
if the net cost method is used and the good
satisfies all other applicable requirements of
this section; or
(E) the good itself, as imported, is listed in table
2.10.1 of the USMCA and is imported into the territory
of the United States from the territory of a USMCA
country.
(2) Remanufactured goods.--For purposes of determining
whether a remanufactured good is an originating good, a
recovered material derived in the territory of one or more USMCA
countries shall be treated as originating if the recovered
material is used or consumed in the production of, and
incorporated into, the remanufactured good.
(d) Regional Value Content.--
(1) In general.--Except as provided in paragraph (5), for
purposes of subparagraphs (B) and (D) of subsection (c)(1), the
regional value content of a good shall be calculated, at the
choice of the importer, 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.--
[[Page 134 STAT. 26]]
(A) In general.--An importer, exporter, or producer
of a good may calculate the regional value content of
the good on the basis of the following transaction value
method:
TV-VNM ......................
RVC = ---------- <dbl-dagger> 100
TV ......................
(B) Definitions.--In this paragraph:
(i) RVC.--The term ``RVC'' means the regional
value content of the good, expressed as a
percentage.
(ii) TV.--The term ``TV'' means the
transaction value of the good, adjusted to exclude
any costs incurred in the international shipment
of the good.
(iii) VNM.--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 importer, exporter, or producer
of a good may calculate the regional value content of
the good on the basis of the following net cost method:
NC-VNM ......................
RVC = ---------- <dbl-dagger> 100
NC ......................
(B) Definitions.--In this paragraph:
(i) NC.--The term ``NC'' means the net cost of
the good.
(ii) RVC.--The term ``RVC'' means the regional
value content of the good, expressed as a
percentage.
(iii) VNM.--The term ``VNM'' means the value
of nonoriginating materials used by the producer
in the production of the good.
(4) Value of nonoriginating materials.--
(A) In general.--The value of nonoriginating
materials used by the producer in the production of a
good shall not, for purposes of calculating the regional
value content of the good under paragraph (2) or (3),
include the value of nonoriginating materials used or
consumed to produce originating materials that are
subsequently used or consumed in the production of the
good.
(B) Special rule for certain components.--The
following components of the value of nonoriginating
materials used by the producer in the production of a
good may be counted as originating content for purposes
of determining whether the good meets the regional value
content requirement set forth in Annex 4-B of the USMCA:
(i) The value of processing the nonoriginating
materials undertaken in the territory of one or
more USMCA countries.
(ii) The value of any originating materials
used or consumed in the production of the
nonoriginating materials undertaken in the
territory of one or more USMCA countries.
(5) Net cost method required in certain cases.--An importer,
exporter, or producer of a good shall calculate the regional
value content of the good solely on the basis of the net cost
method described in paragraph (3) if the rule for the good set
forth in Annex 4-B of the USMCA includes a
[[Page 134 STAT. 27]]
regional value content requirement not based on the transaction
value method described in paragraph (2).
(6) Net cost method allowed for adjustments.--
(A) In general.--If an importer, exporter, or
producer of a good calculates the regional value content
of the good on the basis of the transaction value method
described in paragraph (2) and a USMCA country
subsequently notifies the importer, exporter, or
producer, during the course of a verification conducted
in accordance with chapter 5 or 6 of the USMCA, that the
transaction value of the good or the value of any
material used in the production of the good must be
adjusted or is unacceptable under article 1 of the
Customs Valuation Agreement, the importer, exporter, or
producer may calculate the regional value content of the
good on the basis of the net cost method.
(B) Review of adjustment.--Nothing in subparagraph
(A) shall be construed to prevent any review or appeal
available in accordance with article 5.15 of the USMCA
with respect to an adjustment to or a rejection of--
(i) the transaction value of a good; or
(ii) the value of any material used in the
production of a good.
(7) Calculating net cost.--The producer of a good may,
consistent with regulations implementing this section, calculate
the net cost of the good under paragraph (3) by--
(A) calculating the total cost incurred with respect
to all goods produced by that producer, subtracting any
sales promotion, marketing, and after-sales services
costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the
total cost of those goods, and then reasonably
allocating the resulting net cost of those goods to the
good;
(B) calculating the total cost incurred with respect
to all goods produced by that producer, reasonably
allocating the total cost to the good, and subtracting
any sales promotion, marketing, and after-sales service
costs, royalties, shipping and packing costs, and
nonallowable interest costs, that are included in the
portion of the total cost allocated to the good; or
(C) reasonably allocating each cost that is part of
the total cost incurred with respect to the good so that
the aggregate of those costs does not include any sales
promotion, marketing, and after-sales service costs,
royalties, shipping and packing costs, and nonallowable
interest costs.
(8) Value of materials used in production.--For purposes of
calculating the regional value content of a good under this
subsection, applying the de minimis rules under subsection (f),
and calculating the value of nonoriginating components in a set
under subsection (m), the value of a material used in the
production of a good is--
(A) in the case of a material that is imported by
the producer of the good, the transaction value of the
material at the time of importation, including the costs
incurred in the international shipment of the material;
[[Page 134 STAT. 28]]
(B) in the case of a material acquired in the
territory in which the good is produced--
(i) the price paid or payable by the producer
in the USMCA country where the producer is
located;
(ii) the value as determined under
subparagraph (A), as set forth in regulations
prescribed by the Secretary of the Treasury
providing for the application of transaction value
in the absence of an importation by the producer;
or
(iii) the earliest ascertainable price paid or
payable in the territory of the country; or
(C) in the case of a self-produced material, the sum
of--
(i) all expenses incurred in the production of
the material, including general expenses; and
(ii) an amount for profit equivalent to the
profit added in the normal course of trade or
equal to the profit that is usually reflected in
the sale of goods of the same class or kind as the
material.
(9) Intermediate materials.--
(A) In general.--Any self-produced material that is
used in the production of a good may be designated by
the producer of the good as an intermediate material for
purposes of calculating the regional value content of
the good under paragraph (2) or (3).
(B) Materials used in production of intermediate
materials.--If a self-produced material is designated as
an intermediate material under subparagraph (A) for
purposes of calculating a regional value content
requirement, no other self-produced material subject to
a regional value content requirement used or consumed in
the production of that intermediate material may be
designated by the producer as an intermediate material.
(10) Further adjustments to value of materials.--The
following expenses, if included in the value of a nonoriginating
material calculated under paragraph (8), may be deducted from
the value of the nonoriginating material:
(A) The costs of freight, insurance, packing, and
all other costs incurred in transporting the material to
the location of the producer.
(B) Duties, taxes, and customs brokerage fees on the
material paid in the territory of one or more USMCA
countries, other than duties or taxes that are waived,
refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable.
(C) The cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or byproducts.
(e) Accumulation.--
(1) Producers.--A good that is produced in the territory of
one or more USMCA countries, by one or more producers, is an
originating good if the good satisfies the requirements of
subsection (c) and all other applicable requirements of this
section.
(2) Originating materials used in production of goods of a
usmca country.--Originating materials from the territory
[[Page 134 STAT. 29]]
of one or more USMCA countries that are used in the production
of a good in the territory of another USMCA country shall be
considered to originate in the territory of such other USMCA
country.
(3) Production undertaken on nonoriginating materials used
in the production of goods.--In determining whether a good is an
originating good under this section, production undertaken on
nonoriginating material in the territory of one or more USMCA
countries by one or more producers shall contribute to the
originating status of the good, regardless of whether that
production is sufficient to confer originating status to the
nonoriginating material.
(f) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2)
through (4), a good that does not undergo a change in tariff
classification or satisfy a regional value content requirement
set forth in Annex 4-B of the USMCA is an originating good if--
(A) the value of all nonoriginating materials that
are used in the production of the good, and do not
undergo the applicable change in tariff classification
set forth in Annex 4-B of the USMCA--
(i) does not exceed 10 percent of the
transaction value of the good, adjusted to exclude
any costs incurred in the international shipment
of the good; or
(ii) does not exceed 10 percent of the total
cost of the good;
(B) the good meets all other applicable requirements
of this section; and
(C) the value of such nonoriginating materials is
included in the value of nonoriginating materials for
any applicable regional value content requirement for
the good.
(2) Exceptions for dairy and other products.--Paragraph (1)
does not apply to the following:
(A) A nonoriginating material of headings 0401
through 0406, or a nonoriginating dairy preparation
containing over 10 percent by dry weight of milk solids
of subheading 1901.90 or 2106.90, used or consumed in
the production of a good of headings 0401 through 0406.
(B) A nonoriginating material of headings 0401
through 0406, or nonoriginating dairy preparation
containing over 10 percent by dry weight of milk solids
of subheading 1901.90 or 2106.90, used or consumed in
the production of any of the following goods:
(i) Infant preparations containing over 10
percent by dry weight of milk solids, of
subheading 1901.10.
(ii) Mixes and doughs containing over 25
percent by dry weight of butterfat, not put up for
retail sale, of subheading 1901.20.
(iii) A dairy preparation containing over 10
percent by dry weight of milk solids, of
subheading 1901.90 or 2106.90.
(iv) A good of heading 2105.
(v) Beverages containing milk of subheading
2202.90.
[[Page 134 STAT. 30]]
(vi) Animal feeds containing over 10 percent
by dry weight of milk solids of subheading
2309.90.
(C) A nonoriginating material of heading 0805, or
any of subheadings 2009.11 through 2009.39, used or
consumed in the production of a good of subheadings
2009.11 through 2009.39, or a fruit or vegetable juice
of any single fruit or vegetable, fortified with
minerals or vitamins, concentrated or unconcentrated, of
subheading 2106.90 or 2202.90.
(D) A nonoriginating material of chapter 9 used or
consumed in the production of instant coffee, not
flavored, of subheading 2101.11.
(E) A nonoriginating material of chapter 15 used or
consumed in the production of a good of heading 1507,
1508, 1512, 1514, or 1515.
(F) A nonoriginating material of heading 1701 used
or consumed in the production of a good of any of
headings 1701 through 1703.
(G) A nonoriginating material of chapter 17 or
heading 1805 used in the production of a good of
subheading 1806.10.
(H) Nonoriginating peaches, pears, or apricots of
chapter 8 or 20, used in the production of a good of
heading 2008.
(I) A nonoriginating single juice ingredient of
heading 2009 used or consumed in the production of a
good of--
(i) subheading 2009.90, or tariff item
2106.90.54 (concentrated mixtures of fruit or
vegetable juice, fortified with minerals or
vitamins); or
(ii) tariff item 2202.99.37 (mixtures of fruit
or vegetable juices, fortified with minerals or
vitamins).
(J) A nonoriginating material of any of headings
2203 through 2208 used or consumed in the production of
a good provided for under heading 2207 or 2208.
(3) Goods provided for under chapters 1 through 27.--
Paragraph (1) does not apply to a nonoriginating material used
or consumed in the production of a good provided for in chapters
1 through 27 unless the nonoriginating material is provided for
in a different subheading than the subheading of the good for
which origin is being determined.
(4) Textile or apparel goods.--
(A) Goods classified under chapters 50 through 60.--
Except as provided in subparagraph (C), a textile or
apparel good provided for in any of chapters 50 through
60 or heading 9619 that is not an originating good
because certain nonoriginating materials used in the
production of the good do not undergo an applicable
change in tariff classification set forth in Annex 4-B
of the USMCA, shall be considered to be an originating
good if the total weight of all such materials,
including elastomeric yarns, is not more than 10 percent
of the total weight of the good and the good meets all
other applicable requirements of this section.
(B) Goods classified under chapters 61 through 63.--
Except as provided in subparagraph (C), a textile or
apparel good provided for in chapter 61, 62, or 63 that
is not an originating good because certain fibers or
yarns
[[Page 134 STAT. 31]]
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 forth in Annex 4-B of the USMCA shall be considered
to be an originating good if the total weight of all
such fibers or yarns in the component, including
elastomeric yarns, is not more than 10 percent of the
total weight of the component and the good meets all
other applicable requirements of this section.
(C) Goods containing nonoriginating elastomeric
yarns.--
(i) Goods classified under chapters 50 through
60 or heading 9619 .--A textile or apparel good
described in subparagraph (A) containing
nonoriginating elastomeric yarns shall be
considered to be an originating good only if the
nonoriginating elastomeric yarns contained in the
good do not exceed 7 percent of the total weight
of the good.
(ii) Goods classified under chapters 61
through 63.--A textile or apparel good described
in subparagraph (B) containing nonoriginating
elastomeric yarns shall be considered to be an
originating good only if the nonoriginating
elastomeric yarns contained in the component of
the good that determines the tariff classification
of the good do not exceed 7 percent of the total
weight of the good.
(g) Fungible Goods and Materials.--
(1) Fungible materials used in production.--Subject to
paragraph (3), if originating and nonoriginating fungible
materials are used or consumed in the production of a good, the
determination of whether the materials are originating may be
made on the basis of any of the inventory management methods set
forth in regulations implementing this section.
(2) Fungible goods commingled and exported.--Subject to
paragraph (3), if originating and nonoriginating fungible goods
are commingled and exported in the same form, the determination
of whether the goods are originating may be made on the basis of
any of the inventory management methods set forth in regulations
implementing this section.
(3) Use of inventory management method.--A person that
selects an inventory management method for purposes of paragraph
(1) or (2) shall use that inventory management method throughout
the fiscal year of the person.
(h) Accessories, Spare Parts, Tools, and Instructional or Other
Information Materials.--
(1) In general.--Subject to paragraph (2), accessories,
spare parts, tools, or instructional or other information
materials delivered with a good shall--
(A) be treated as originating if the good is an
originating good;
(B) be disregarded in determining whether a good is
a good wholly obtained or produced entirely in the
territory of one or more USMCA countries or satisfies a
process or change in tariff classification set forth in
Annex 4-B of the USMCA; and
(C) be taken into account as originating or
nonoriginating materials, as the case may be, in
calculating any
[[Page 134 STAT. 32]]
applicable regional value content of the good set forth
in Annex 4-B of the USMCA.
(2) <<NOTE: Applicability.>> Conditions.--Paragraph (1)
shall apply only if--
(A) the accessories, spare parts, tools, or
instructional or other information materials are
classified with and delivered with, but not invoiced
separately from, the good; and
(B) the types, quantities, and value of the
accessories, spare parts, tools, or instructional or
other information materials are customary for the good.
(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 of the nonoriginating materials used in the production of the good
undergo the applicable process or change in tariff classification
requirement set forth in Annex 4-B of the USMCA, or whether the good is
a good wholly obtained or produced entirely in the territory of one or
more USMCA countries. If the good is subject to a regional value content
requirement set forth in that Annex, the value of such packaging
materials and containers shall be taken into account as originating or
nonoriginating materials, as the case may be, in calculating the
regional value content of the good.
(j) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether a good is an originating good.
(k) Indirect Materials.--An indirect material shall be treated as an
originating material without regard to where it is produced.
(l) Transit and Transshipment.--A good that has undergone production
necessary to qualify as an originating good under subsection (c) shall
not be considered to be an originating good if, subsequent to that
production, the good--
(1) undergoes further production or any other operation
outside the territory of a USMCA country, other than--
(A) unloading, reloading, separation from a bulk
shipment, storing, labeling, or marking, as required by
a USMCA country; or
(B) any other operation necessary to preserve the
good in good condition or to transport the good to the
territory of the importing USMCA country; or
(2) does not remain under the control of customs authorities
in a country other than a USMCA country.
(m) Goods Classifiable as Goods Put Up in Sets.--
(1) Goods other than textile or apparel goods.--
Notwithstanding the rules set forth in Annex 4-B of the USMCA,
goods classifiable as goods put up in sets for retail sale as
provided for in rule 3 of the General Rule of Interpretation of
the HTS shall not be considered to be originating goods unless--
(A) each of the goods in the set is an originating
good; or
(B) the total value of the nonoriginating goods in
the set does not exceed 10 percent of the value of the
set.
(2) Textile or apparel goods.--Notwithstanding the rules set
forth in Annex 4-B of the USMCA, goods classifiable as goods put
up in sets for retail sale as provided for in rule 3 of the
General Rule of Interpretation of the HTS shall not be
considered to be originating goods unless--
[[Page 134 STAT. 33]]
(A) each of the goods in the set is an originating
good; or
(B) the total value of the nonoriginating goods in
the set does not exceed 10 percent of the value of the
set.
(n) Nonqualifying Operations.--A good shall not be considered to be
an originating good merely by reason of--
(1) mere dilution with water or another substance 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 the evidence, that
the object of the practice was to circumvent this section.
(o) Effective Date.--
(1) In general.--This section shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered for
consumption, or withdrawn from warehouse for
consumption, on or after that date.
(2) Transition from nafta treatment.--Section 202 of the
North American Free Trade Agreement Implementation Act (19
U.S.C. 3332), as in effect on the day before the date on which
the USMCA enters into force, shall continue to apply on and
after that date with respect to a good entered for consumption,
or withdrawn from warehouse for consumption, before that date.
SEC. <<NOTE: 19 USC 4532.>> 202A. SPECIAL RULES FOR AUTOMOTIVE
GOODS.
(a) Definitions.--In this section:
(1) Alternative staging regime.--The term ``alternative
staging regime'' means the application, pursuant to subsection
(d), of the requirements of article 8 of the automotive appendix
to the production of covered vehicles to allow producers of such
vehicles to bring such production into compliance with the
requirements of articles 2 through 7 of that appendix.
(2) Alternative staging regime period.--The term
``alternative staging regime period'' means the period during
which the alternative staging regime is in effect.
(3) Automotive appendix.--The term ``automotive appendix''
means the Appendix to Annex 4-B of the USMCA (relating to the
product-specific rules of origin for automotive goods).
(4) Automotive good.--The term ``automotive good'' means--
(A) a covered vehicle; or
(B) a part, component, or material listed in table
A.1, A.2, B, C, D, or E of the automotive appendix.
(5) Automotive rules of origin.--The term ``automotive rules
of origin'' means the rules of origin for automotive goods set
forth in the automotive appendix.
(6) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection.
(7) Covered vehicle.--The term ``covered vehicle'' means a
passenger vehicle, light truck, or heavy truck.
(8) Interagency committee.--The term ``interagency
committee'' means the interagency committee established under
subsection (b)(1).
[[Page 134 STAT. 34]]
(9) Passenger vehicle; light truck; heavy truck.--The terms
``passenger vehicle'', ``light truck'', and ``heavy truck'' have
the meanings given those terms in article 1 of the automotive
appendix.
(10) USMCA country.--The term ``USMCA country'' means the
United States, Canada, or Mexico for such time as the USMCA is
in force with respect to Canada or Mexico, and the United States
applies the USMCA to Canada or Mexico.
(b) Establishment of Interagency Committee.--
(1) <<NOTE: Deadline. President.>> In general.--Not later
than 30 days after the date of the enactment of this Act, the
President shall establish an interagency committee--
(A) to provide advice, as appropriate, on the
implementation, enforcement, and modification of
provisions of the USMCA that relate to automotive goods,
including the alternative staging regime; and
(B) <<NOTE: Review.>> to review the operation of
the USMCA with respect to trade in automotive goods,
including--
(i) the economic effects of the automotive
rules of origin on the United States economy,
workers, and consumers; and
(ii) the impact of new technology on such
rules of origin.
(2) Members.--The members of the interagency committee shall
be the following:
(A) The Trade Representative.
(B) The Secretary of Commerce.
(C) The Commissioner.
(D) The Secretary of Labor.
(E) The Chair of the International Trade Commission.
(F) Any other members determined to be necessary by
the Trade Representative.
(3) Chair.--The chair of the interagency committee shall be
the Trade Representative.
(4) Use of information.--
(A) Information sharing.--Notwithstanding any other
provision of law, the members of the interagency
committee may exchange information for purposes of
carrying out this section.
(B) Confidentiality of information.--The interagency
committee and any Federal agency represented on the
interagency committee may not disclose to the public any
confidential documents or information received in the
course of carrying out this section, except information
aggregated to preserve confidentiality and used in the
reports described in subsection (g).
(c) Certification Requirements.--
(1) Certification relating to labor value content
requirements.--
(A) In general.--A covered vehicle shall be eligible
for preferential tariff treatment only if the producer
of the covered vehicle--
(i) provides a certification to the
Commissioner that the production of covered
vehicles by the producer meets the labor value
content requirements, including the high-wage
material and manufacturing expenditures, high-wage
technology expenditures, and high-
[[Page 134 STAT. 35]]
wage assembly expenditures, as set forth in
article 7 of the automotive appendix or, if the
producer is subject to the alternative staging
regime, articles 7 and 8 of that appendix, and
includes the calculations of the producer related
to the labor value content requirements; and
(ii) has information on record to support
those calculations.
(B) Implementation.--For purposes of meeting the
requirements under subparagraph (A)--
(i) <<NOTE: Consultation.>> the Secretary of
Labor, in consultation with the Commissioner,
shall ensure that the certification of a producer
under subparagraph (A)(i) does not contain
omissions or errors before the certification is
considered properly filed; and
(ii) a calculation described in subparagraph
(A)(i) based on a producer's preceding fiscal or
calendar year is valid for the producer's
subsequent fiscal or calendar year, as the case
may be, as set forth in articles 7 and 8 of the
automotive appendix.
(C) <<NOTE: Consultation. Procedures.>> Regulations
required.--The Secretary of the Treasury, in
consultation with the Secretary of Labor, shall
prescribe regulations to carry out this paragraph,
including regulations setting forth the procedures and
requirements for a producer of covered vehicles to
establish that the producer meets the labor value
content requirements for preferential tariff treatment.
(2) Certification relating to steel and aluminum purchase
requirements.--
(A) In general.--A covered vehicle shall be eligible
for preferential tariff treatment only if the producer
of the covered vehicle--
(i) provides a certification to the
Commissioner that the production of covered
vehicles by the producer meets the steel and
aluminum purchase requirements set forth in
article 6 of the automotive appendix or, if the
producer is subject to the alternative staging
regime, articles 6 and 8 of that appendix; and
(ii) has information on record to support the
calculations relied on for the certification.
(B) Implementation.--For purposes of meeting the
requirements under subparagraph (A)--
(i) the Commissioner shall ensure that the
certification of a producer under subparagraph
(A)(i) does not contain omissions or errors before
the certification is considered properly filed;
and
(ii) a calculation described in subparagraph
(A)(ii) based on a producer's preceding fiscal or
calendar year is valid for the producer's
subsequent fiscal or calendar year, as the case
may be, as set forth in articles 6 and 8 of the
automotive appendix.
(C) <<NOTE: Procedures.>> Regulations required.--
The Secretary of the Treasury shall prescribe
regulations to carry out this paragraph, including
regulations setting forth the procedures and
requirements for a producer of covered vehicles to
establish that the producer meets the steel and aluminum
purchase requirements for preferential tariff treatment.
[[Page 134 STAT. 36]]
(d) Alternative Staging Regime.--
(1) <<NOTE: Deadline. Consultation. Federal Register,
publication. Requirements. Procedures. Guidance.>> Publication
of requirements.--Not later than 90 days after the date of the
enactment of this Act, the Trade Representative, in consultation
with the interagency committee, shall publish in the Federal
Register requirements, procedures, and guidance required to
implement the alternative staging regime, including with respect
to the following:
(A) <<NOTE: Methodologies.>> The procedures,
calculation methodology, timeframe, specific regional
value content thresholds, and other minimum
requirements, consistent with article 8 of the
automotive appendix, with which a producer of covered
vehicles subject to the alternative staging regime is
required to comply during the alternative staging regime
period for such vehicles to be eligible for preferential
tariff treatment pursuant to the alternative staging
regime.
(B) The date by which requests for the alternative
staging regime are required to be submitted.
(C) The information a producer of passenger vehicles
or light trucks is required to provide, in the
producer's request to use the alternative staging
regime, to demonstrate the actions that the producer
will take to be prepared to meet all the requirements
set forth in articles 2 through 7 of the automotive
appendix after the alternative staging regime period has
expired, including the following:
(i) A statement identifying which of the
requirements set forth in articles 2 through 7 of
the automotive appendix that the producer expects
it will be unable to meet upon entry into force of
the USMCA based on current business plans.
(ii) <<NOTE: Time periods.>> A statement
indicating whether the passenger vehicles or light
trucks for which the producer seeks to use the
alternative staging regime account for 10 percent
or less, or more than 10 percent, of the total
production of passenger vehicles or light trucks,
as the case may be, in USMCA countries by the
producer during the 12-month period preceding the
date on which the USMCA enters into force, or the
average of such production during the 36-month
period preceding that date, whichever is greater.
(iii) In the case of a producer that seeks to
use the alternative staging regime for more than
10 percent of the producer's total production of
passenger vehicles or light trucks, as the case
may be, in USMCA countries--
(I) <<NOTE: Plan.>> a detailed and
credible plan describing with
specificity the actions the producer
intends to take to bring production of
the passenger vehicles or light trucks,
as the case may be, into compliance with
the requirements set forth in articles 2
through 7 of the automotive appendix
after the alternative staging regime
period expires; and
(II) <<NOTE: Time period.>> a
statement indicating the time period for
which the producer is requesting to use
the alternative staging regime, if that
time period is greater than 5 years
after the USMCA enters into force.
[[Page 134 STAT. 37]]
(D) <<NOTE: Procedures.>> The procedures for
accepting and reviewing requests for the alternative
staging regime, including that the Trade Representative
will--
(i) <<NOTE: Notification. Deadline.>> notify
a producer of any deficiencies in the request of
the producer that would result in a denial of the
request not later than 30 days after the request
is submitted; and
(ii) provide producers the opportunity to
submit supplemental information.
(E) <<NOTE: Criteria. Consultation.>> The criteria
the Trade Representative, in consultation with the
interagency committee, will consider when determining
whether to approve a request for the alternative staging
regime. Such criteria shall only include elements
necessary for the producer to demonstrate the producer's
ability to meet the requirements specified in
subparagraphs (A) and (B). The criteria shall also
describe the information to meet those requirements in
sufficient detail to allow the producer to identify the
information necessary to complete a request for the
alternative staging regime.
(F) The opportunity for a producer described in
subparagraph (C)(iii) to modify the producer's request
for the alternative staging regime.
(2) <<NOTE: Consultations. Determinations.>> Review of
requests for alternative staging regime.--
(A) In general.--In reviewing the request of a
producer of passenger vehicles or light trucks for the
alternative staging regime, the Trade Representative, in
consultation with the interagency committee, shall
determine--
(i) whether the request covers 10 percent or
less, or more than 10 percent, of the production
of passenger vehicles or light trucks in USMCA
countries by the producer; and
(ii) whether the producer has identified with
specificity which of the requirements set forth in
articles 2 through 7 of the automotive appendix
the producer is unable to meet based on current
business plans.
(B) Approval of alternative staging regime for
passenger vehicle or light truck production not
exceeding 10 percent of north american production.--The
Trade Representative shall authorize the use of the
alternative staging regime if the Trade Representative,
in consultation with the interagency committee,
determines that--
(i) the request for the alternative staging
regime covers passenger vehicles or light trucks
that do not exceed 10 percent of the production of
passenger vehicles or lights trucks, as the case
may be, in USMCA countries by the producer; and
(ii) the producer has identified with
specificity which of the requirements set forth in
articles 2 through 7 of the automotive appendix
the producer is unable to meet based on current
business plans.
(C) Approval of alternative staging regime for
passenger vehicle or light truck production exceeding 10
percent of north american production.--
[[Page 134 STAT. 38]]
The Trade Representative shall authorize the use of the
alternative staging regime if the Trade Representative,
in consultation with the interagency committee,
determines that--
(i) the request for the alternative staging
regime covers more than 10 percent of the
production of passenger vehicles or lights trucks,
as the case may be, in USMCA countries by the
producer;
(ii) the producer has identified with
specificity which of the requirements set forth in
articles 2 through 7 of the automotive appendix
the producer is unable to meet based on current
business plans; and
(iii) the detailed and credible plan of the
producer submitted under paragraph (1)(C)(iii) is
based on substantial evidence and reasonably
calculated to bring the production of the
passenger vehicles or light trucks, as the case
may be, into compliance with the requirements set
forth in articles 2 through 7 of the automotive
appendix after the alternative staging regime
period has expired.
(3) Procedures related to reviewing and approving
requests.--
(A) <<NOTE: Consultation.>> Deadline for review.--
Not later than 120 days after receiving a request of a
producer for the alternative staging regime, the Trade
Representative, in consultation with the interagency
committee, shall--
(i) review the request;
(ii) <<NOTE: Determination.>> make a
determination with respect to whether to authorize
the use of the alternative staging regime; and
(iii) provide to each producer a response in
writing stating whether the producer may use the
alternative staging regime.
(B) Establishment of a public list.--The Trade
Representative shall maintain, and update as necessary,
a public list of the producers of covered vehicles that
have been authorized to use the alternative staging
regime.
(C) <<NOTE: Summary.>> Reporting.--Before a
determination is made with respect to whether to
authorize the use of the alternative staging regime, the
Trade Representative shall provide to the appropriate
congressional committees a summary of requests for the
alternative staging regime.
(4) Alternative staging regime review and modification.--
(A) Material changes to circumstances.--
(i) Notification.--If the request of a
producer to use the alternative staging regime for
more than 10 percent of the total production of
passenger vehicles or light trucks, as the case
may be, in USMCA countries by the producer has
been granted, the producer shall notify the Trade
Representative and the interagency committee of
any material changes to the information contained
in the request, including any supplemental
information relating to that request, and of any
material changes to circumstances, that will
[[Page 134 STAT. 39]]
affect the producer's ability to meet any of the
requirements set forth in articles 2 through 7 of
the automotive appendix after the alternative
staging regime period has expired.
(ii) Requests for modification of plans.--
(I) In general.--A producer that
submits a notification under clause (i)
with respect to a change described in
that clause may submit to the Trade
Representative and the interagency
committee a request for modification of
its plan.
(II) Determination regarding
modification.--Not later
than <<NOTE: Deadline. Consultation.>>
90 days after receiving a request
submitted under subclause (I), the Trade
Representative, in consultation with the
interagency committee, shall--
(aa) review the request;
(bb) make a determination
with respect to whether the
modified plan is based on
substantial evidence and
reasonably calculated to ensure
that the producer will still be
able to meet the requirements
set forth in articles 2 through
7 of the automotive appendix
after the alternative staging
regime period has expired;
(cc) if the Trade
Representative makes an
affirmative determination under
item (bb), approve the modified
plan; and
(dd) <<NOTE: Notification.>>
notify the producer in writing
of the determination.
(iii) <<NOTE: Consultation. Determination. Notifica
tion.>> Inability to meet requirements.--If the
Trade Representative, in consultation with the
interagency committee, determines that the
information provided by a producer under clause
(i) demonstrates that the producer will no longer
be able to meet the requirements set forth in
articles 2 through 7 of the automotive appendix
after the alternative staging regime period has
expired, the Trade Representative shall notify the
producer in writing, and no claim for preferential
tariff treatment may be made, on or after the date
of the determination, with respect to a covered
vehicle of the producer pursuant to the
alternative staging regime.
(5) Failure to meet requirements for alternative staging
regime.--
(A) <<NOTE: Consultation. Determination.>> In
general.--If, at any time, the Trade Representative, in
consultation with the interagency committee, makes a
determination described in subparagraph (B) with respect
to a producer of covered vehicles subject to the
alternative staging regime--
(i) any claim for preferential tariff
treatment under the alternative staging regime for
any covered vehicle of that producer shall be
considered invalid; and
(ii) notwithstanding the finality of a
liquidation of an entry, the importer of any
covered vehicle of that producer shall be liable
for the duties, taxes, and fees that would have
been applicable to that vehicle if preferential
tariff treatment pursuant to the
[[Page 134 STAT. 40]]
alternative staging regime had not applied when
the vehicle was entered for consumption, or
withdrawn from warehouse for consumption, plus
interest assessed on or after the date of entry
and before the date of the determination.
(B) Determination described.--A determination
described in this subparagraph is a determination that a
producer of covered vehicles subject to the alternative
staging regime--
(i) has failed to take the steps set forth in
the producer's request for the alternative staging
regime and, as a result of that failure, the
producer will no longer be able to meet the
requirements set forth in articles 2 through 7 of
the automotive appendix after the alternative
staging regime period has expired;
(ii) has provided false or misleading
information in the producer's request; or
(iii) in the case of a producer authorized to
use the alternative staging regime for more than
10 percent of the total production of passenger
vehicles or light trucks in USMCA countries by the
producer, has failed to notify the Trade
Representative under paragraph (4)(A) of material
changes to circumstances that will prevent the
producer from meeting any of the requirements set
forth in articles 2 through 7 of the automotive
appendix after the alternative staging regime
period has expired.
(e) Verification of Labor Value Content Requirements.--
(1) <<NOTE: Compliance.>> In general.--As part of a
verification conducted under section 207, the Secretary of the
Treasury, in conjunction with the Secretary of Labor, may
conduct a verification of whether a covered vehicle complies
with the labor value content requirements set forth in article 7
of the automotive appendix or, if the producer is subject to the
alternative staging regime under subsection (d), articles 7 and
8 of that appendix.
(2) Role of secretary of labor.--In cooperation with the
Secretary of the Treasury, the Secretary of Labor shall
participate in any verification conducted under paragraph (1) by
verifying whether the production of covered vehicles by a
producer meets the high-wage components of the labor value
content requirements, including the wage component of the high-
wage material and manufacturing expenditures, the high-wage
technology expenditures, and the high-wage assembly
expenditures, within the meaning given those terms in article 7
of that appendix.
(3) Role of secretary of the treasury.--The Secretary of the
Treasury shall participate in any verification conducted under
paragraph (1) by verifying--
(A) the components of the labor value content
requirements not covered by paragraph (2), including the
annual purchase value and cost components of the high-
wage material and manufacturing expenditures, within the
meaning given those terms in article 7 of that appendix;
and
(B) whether the producer has met the labor value
content requirements.
(4) Actions by secretary of labor.--
[[Page 134 STAT. 41]]
(A) In general.--In participating in a verification
conducted under paragraph (1), the Secretary of Labor
shall assist the Secretary of the Treasury to do the
following:
(i) <<NOTE: Examination. Notification. Records.>>
Examine, or cause to be examined, upon reasonable
notice, any record (including any statement,
declaration, document, or electronically generated
or machine readable data) described in the notice
with reasonable specificity.
(ii) Request information from any officer,
employee, or agent of a producer of automotive
goods, as necessary, that may be relevant with
respect to whether the production of covered
vehicles meets the high-wage components of the
labor value content requirements set forth in
article 7 of the automotive appendix or, if the
producer is subject to the alternative staging
regime under subsection (d), articles 7 and 8 of
that appendix.
(B) Nature of information requested.--Records and
information that may be examined or requested under
subparagraph (A) may relate to wages, hours, job
responsibilities, and other information in any plant or
facility relied on by a producer of covered vehicles to
demonstrate that the production of such vehicles by the
producer meets the labor value content requirements set
forth in article 7 of the automotive appendix or, if the
producer is subject to the alternative staging regime
under subsection (d), articles 7 and 8 of that appendix.
(5) Whistleblower protections.--
(A) Unlawful acts.--It is unlawful to intimidate,
threaten, restrain, coerce, blacklist, discharge, or in
any other manner discriminate against any person for--
(i) disclosing information to a Federal agency
or to any person relating to a verification under
this subsection; or
(ii) cooperating or seeking to cooperate in a
verification under this subsection.
(B) Enforcement.--The Secretary of the Treasury and
the Secretary of Labor are authorized to take such
actions under existing law, including imposing
appropriate penalties and seeking appropriate injunctive
relief, as may be necessary to ensure compliance with
this subsection and as provided for in existing
regulations.
(6) Protests of decisions of u.s. customs and border
protection.--
(A) In general.--If a protest under section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) of a decision of
U.S. Customs and Border Protection with respect to the
eligibility for preferential tariff treatment of a
covered vehicle relates to the analysis of the
Department of Labor relating to the high-wage components
of the labor value content requirements described in
paragraph (1), the Secretary of Labor shall--
(i) <<NOTE: Review.>> conduct an
administrative review of the portion of the
decision relating to such requirements; and
(ii) provide the results of that review to the
Commissioner.
[[Page 134 STAT. 42]]
(B) No accelerated disposition.--An importer may not
request the accelerated disposition under section 515(b)
of the Tariff Act of 1930 (19 U.S.C. 1515(b)) of a
protest against a decision of the Commissioner described
in subparagraph (A).
(f) Administration by Department of Labor.--The Secretary of Labor
is authorized to establish or designate an office within the Department
of Labor to carry out the provisions of this section for which the
Department is responsible.
(g) Review and Reports.--
(1) Periodic review on automotive rules of origin.--
(A) <<NOTE: Consultation.>> In general.--The Trade
Representative, in consultation with the interagency
committee, shall conduct a biennial review of the
operation of the USMCA with respect to trade in
automotive goods, including--
(i) <<NOTE: Summary.>> to the extent
practicable, a summary of actions taken by
producers to demonstrate compliance with the
automotive rules of origin, use of the alternative
staging regime, enforcement of such rules of
origin, and other relevant matters; and
(ii) whether the automotive rules of origin
are effective and relevant in light of new
technology and changes in the content, production
processes, and character of automotive goods.
(B) Report.--
(i) In general.--The Trade Representative
shall submit to the appropriate congressional
committees a report on each review conducted under
subparagraph (A).
(ii) Initial report.--The first report
required under clause (i) shall be submitted not
later than 2 years after the date on which the
USMCA enters into force.
(iii) Termination of reporting requirement.--
The requirement to submit reports under clause (i)
shall terminate on the date that is 10 years after
the date on which the USMCA enters into force.
(2) <<NOTE: Termination date.>> Report by international
trade commission.--Not later than 1 year after the submission of
the first report required by paragraph (1)(B), and every 2 years
thereafter until the date that is 12 years after the date on
which the USMCA enters into force, the International Trade
Commission shall submit to the appropriate congressional
committees and the President a report on--
(A) the economic impact of the automotive rules of
origin on--
(i) the gross domestic product of the United
States;
(ii) exports from and imports into the United
States;
(iii) aggregate employment and employment
opportunities in the United States;
(iv) production, investment, use of productive
facilities, and profit levels in the automotive
industries and other pertinent industries in the
United States affected by the automotive rules of
origin;
(v) wages and employment of workers in the
automotive sector in the United States; and
[[Page 134 STAT. 43]]
(vi) the interests of consumers in the United
States;
(B) the operation of the automotive rules of origin
and their effects on the competitiveness of the United
States with respect to production and trade in
automotive goods, taking into account developments in
technology, production processes, or other related
matters;
(C) whether the automotive rules of origin are
relevant in light of technological changes in the United
States; and
(D) such other matters as the International Trade
Commission considers relevant to the economic impact of
the automotive rules of origin, including prices, sales,
inventories, patterns of demand, capital investment,
obsolescence of equipment, and diversification of
production in the United States.
(3) Report by comptroller general.--Not later than 4 years
after the date on which the USMCA enters into force, the
Comptroller General of the United States shall submit to the
Committee on Appropriations and the Committee on Ways and Means
of the House of Representatives and the Committee on
Appropriations and the Committee on Finance of the Senate a
report assessing the effectiveness of United States Government
interagency coordination on implementation, enforcement, and
verification of the automotive rules of origin and the customs
procedures of the USMCA with respect to automotive goods.
(4) Public participation.--Before submitting a report under
paragraph (1)(B) or (2), the agency responsible for the report
shall--
(A) solicit information relating to matters that
will be addressed in the report from producers of
automotive goods, labor organizations, and other
interested parties;
(B) provide for an opportunity for the submission of
comments, orally or in writing, from members of the
public relating to such matters; and
(C) <<NOTE: Public information. Web posting.>>
after submitting the report, post a version of the
report appropriate for public viewing on a publicly
available internet website for the agency.
(h) Effective Date.--This section shall--
(1) take effect on the date of the enactment of this Act;
and
(2) apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the date on which the
USMCA enters into force.
SEC. 203. MERCHANDISE PROCESSING FEE.
(a) In General.--Section 13031(b)(10) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended by
striking subparagraph (B) and inserting the following:
``(B) No fee may be charged under paragraph (9) or (10) of
subsection (a) with respect to goods that qualify as originating goods
under section 202 of the United States-Mexico-Canada Agreement
Implementation Act or qualify for duty-free treatment under Annex 6-A of
the USMCA (as defined in section 3 of that Act). Any service for which
an exemption from such fee is provided
[[Page 134 STAT. 44]]
by reason of this paragraph may not be funded with money contained in
the Customs User Fee Account.''.
(b) <<NOTE: 19 USC 58c note.>> Effective Date.--
(1) In general.--The amendment made by subsection (a)
shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered or released
on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered or released before the date on which the USMCA enters
into force--
(A) the amendments made by subsection (a) to section
13031(b)(10)(B) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)(B))
shall not apply with respect to the good; and
(B) section 13031(b)(10)(B) of such Act, as in
effect on the day before that date, shall continue to
apply on and after that date with respect to the good.
(3) Entered or released defined.--In this subsection, the
term ``entered or released'' has the meaning given that term in
section 13031(b)(8)(E) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(8)(E)).
SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE
CERTIFICATIONS OF ORIGIN; DENIAL OF
PREFERENTIAL TARIFF TREATMENT.
(a) Disclosure of Incorrect Information.--Section 592 of the Tariff
Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c), by striking paragraph (5) and
inserting the following:
``(5) Prior disclosure regarding claims under the usmca.--An
importer shall not be subject to penalties under subsection (a)
for making an incorrect claim that a good qualifies as an
originating good under section 202 of the United States-Mexico-
Canada Agreement Implementation Act if the importer, in
accordance with regulations prescribed by the Secretary of the
Treasury, promptly makes a corrected declaration and pays any
duties owing with respect to that good.''; and
(2) by striking subsection (f) and inserting the following:
``(f) False Certifications of Origin Under the USMCA.--
``(1) In general.--Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross negligence,
or negligence, in a USMCA certification of origin (as such term
is defined in section 508 of this Act) that a good exported from
the United States qualifies as an originating good under the
rules of origin provided for in section 202 of the United
States-Mexico-Canada Agreement Implementation Act. The
procedures and penalties of this section that apply to a
violation of subsection (a) also apply to a violation of this
subsection.
``(2) Prompt and voluntary disclosure of incorrect
information.--No penalty shall <<NOTE: Notification.>> be
imposed under this subsection if, promptly after an exporter or
producer that issued a USMCA certification of origin has reason
to believe that such certification contains or is based on
incorrect information, the exporter or producer voluntarily
provides written notice
[[Page 134 STAT. 45]]
of such incorrect information to every person to whom the
certification was issued.
``(3) Exception.--A person shall not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a USMCA certification of origin but was
later rendered incorrect due to a change in
circumstances; and
``(B) the person promptly and voluntarily provides
written notice of the change in circumstances to all
persons to whom the person provided the
certification.''.
(b) Denial of Preferential Tariff Treatment.--Section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) is amended--
(1) in subsection (b), by striking ``and article 1904'' and
all that follows through ``Free-Trade Agreement'';
(2) in subsection (c)--
(A) in paragraph (1), in the matter following
subparagraph (D), by striking ``section 202 of the North
American Free Trade Agreement Implementation Act'' and
inserting ``section 202 of the United States-Mexico-
Canada Agreement Implementation Act''; and
(B) in paragraph (2)(E)--
(i) by striking ``section 202 of the North
American Free Trade Agreement Implementation Act''
and inserting ``section 202 of the United States-
Mexico-Canada Agreement Implementation Act''; and
(ii) by striking ``NAFTA Certificate of
Origin'' and inserting ``USMCA certification of
origin (as such term is defined in section 508 of
this Act)'';
(3) in subsection (e), by striking ``section 202 of the
North American Free Trade Agreement Implementation Act'' and
inserting ``section 202 of the United States-Mexico-Canada
Agreement Implementation Act''; and
(4) by striking subsection (f) and inserting the following:
``(f) Denial of Preferential Tariff Treatment Under the USMCA.--If
U.S. Customs <<NOTE: Determination.>> and Border Protection or U.S.
Immigration and Customs Enforcement of the Department of Homeland
Security finds indications of a pattern of conduct by an importer,
exporter, or producer of false or unsupported representations that goods
qualify under the rules of origin provided for in section 202 of the
United States-Mexico-Canada Agreement Implementation Act, U.S. Customs
and Border Protection, in accordance with regulations prescribed by the
Secretary of the Treasury, may suspend preferential tariff treatment
under the USMCA (as defined in section 3 of that Act) to entries of
identical goods covered by subsequent representations by that importer,
exporter, or producer until U.S. Customs and Border Protection
determines that representations of that person are in conformity with
such section 202.''.
(c) <<NOTE: 19 USC 1514 note.>> Effective Date.--
(1) In general.--The amendments made by subsections (a) and
(b) shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered, or
exported from the United States, as the case may be, on
or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered, or exported from the United States, as the
[[Page 134 STAT. 46]]
case may be, before the date on which the USMCA enters into
force--
(A) the amendments made by subsection (a) to section
592 of the Tariff Act of 1930 (19 U.S.C. 1592) and the
amendments made by subsection (b) to section 514 of such
Act (19 U.S.C. 1514) shall not apply with respect to the
good; and
(B) sections 592 and 514 of such Act, as in effect
on the day before that date, shall continue to apply on
and after that date with respect to the good.
(3) Entered defined.--In this subsection, the term
``entered'' includes a withdrawal from warehouse for
consumption.
SEC. 205. RELIQUIDATION OF ENTRIES.
(a) In General.--Section 520(d) of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``section 202 of the North American
Free Trade Agreement Implementation Act,'';
(B) by striking ``, or section 203'' and inserting
``, section 203''; and
(C) by striking ``for which'' and inserting ``, or
section 202 of the United States-Mexico-Canada Agreement
Implementation Act (except with respect to any
merchandise processing fees), for which''; and
(2) by striking paragraph (2) and inserting the following:
``(2) copies of all applicable certificates or
certifications of origin; and''.
(b) <<NOTE: Applicability. 19 USC 1520 note.>> Effective Date.--
(1) In general.--The amendments made by subsection (a)
shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered for
consumption, or withdrawn from warehouse for
consumption, on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into
force--
(A) the amendments made by subsection (a) to section
520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d))
shall not apply with respect to the good; and
(B) section 520(d) of such Act, as in effect on the
day before that date, shall continue to apply on and
after that date with respect to the good.
SEC. 206. RECORDKEEPING REQUIREMENTS.
(a) In General.--Section 508 of the Tariff Act of 1930 (19 U.S.C.
1508) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Exports and Imports Relating to USMCA Countries.--
``(1) Definitions.--In this subsection:
``(A) USMCA; usmca country.--The terms `USMCA' and
`USMCA country' have the meanings given those terms in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act.
[[Page 134 STAT. 47]]
``(B) USMCA certification of origin.--The term
`USMCA certification of origin' means the certification
established under article 5.2.1 of the USMCA that a good
qualifies as an originating good under the USMCA.
``(2) Exports to usmca countries.--Any person who completes
a USMCA certification of origin or provides a written
representation for a good exported from the United States to a
USMCA country shall make, keep, and, pursuant to rules and
regulations prescribed by the Secretary of the Treasury, render
for examination and inspection, all records and supporting
documents related to the origin of the good (including the
certification or copies thereof), including records related to--
``(A) the purchase, cost, value, and shipping of,
and payment for, the good;
``(B) the purchase, cost, value, and shipping of,
and payment for, all materials, including indirect
materials, used in the production of the good; and
``(C) the production of the good in the form in
which it was exported or the production of the material
in the form in which it was sold.
``(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 thereof) which pertain to the
exportations.
``(4) Imports into the united states.--
``(A) In general.--Any importer who claims
preferential tariff treatment under the USMCA for a good
imported into the United States from a USMCA country
shall make, keep, and, pursuant to rules and regulations
prescribed by the Secretary of the Treasury of the
Secretary of Labor, render for examination and
inspection--
``(i) records and supporting documentation
related to the importation;
``(ii) all records and supporting documents
related to the origin of the good (including the
certification or copies thereof), if the importer
completed the certification; and
``(iii) records and supporting documents
necessary to demonstrate that the good did not,
while in transit to the United States, undergo
further production or any other operation other
than unloading, reloading, or any other operation
necessary to preserve the good in good condition
or to transport the good to the United States.
``(B) Vehicle producer.--Any vehicle producer whose
good is the subject of a claim for preferential tariff
treatment under the USMCA shall make, keep, and,
pursuant to rules and regulations promulgated by the
Secretary of the Treasury and Secretary of Labor, render
for examination and inspection records and supporting
documents related to the labor value content and steel
and aluminum
[[Page 134 STAT. 48]]
purchasing requirements for the qualification of its
vehicles for preferential treatment.
``(5) Retention period.--
``(A) Exports to usmca countries.--A person covered
by paragraph (2) who completes a USMCA certification of
origin or provides a written representation for a good
exported from the United States to a USMCA country shall
keep the records required by such paragraph relating to
that certification of origin for a period of at least 5
years after the date on which the certification is
completed.
``(B) Exports under canadian agreement.--The records
required by paragraph (3) shall be kept for such periods
of time as the Secretary shall prescribe, except that--
``(i) no period of time for the retention of
the records may exceed 5 years from the date of
entry, filing of a reconciliation, or exportation,
as appropriate; and
``(ii) records for any drawback claim shall be
kept until the third anniversary of the date of
liquidation of the claim.
``(C) Imports into the united states.--
``(i) In general.--An importer covered by
paragraph (4)(A) shall keep the records and
supporting documents required by such paragraph
for a period of at least 5 years after the date of
importation of the good.
``(ii) Vehicle producer.--A vehicle producer
covered by paragraph (4)(B) shall keep the records
and supporting documents required by paragraph
(4)(B) for a period of at least 5 years after the
date of filing the certifications required under
paragraphs (1) and (2) of section 202A(c) of the
United States-Mexico-Canada Agreement
Implementation Act.'';
(2) by striking subsection (c); and
(3) in the paragraph heading for subsection (e)(1), by
striking ``nafta'' and inserting ``usmca''.
(b) <<NOTE: 19 USC 1508 note.>> Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
take effect on the date on which the USMCA enters into force.
(2) Applicability.--
(A) Exports.--Paragraphs (2) and (5)(A) of section
508(b) of the Tariff Act of 1930, as amended by
subsection (a), shall apply with respect to a good
exported from the United States on or after the date on
which the USMCA enters into force.
(B) Imports.--Paragraphs (4) and (5)(C) of section
508(b) of the Tariff Act of 1930, as amended by
subsection (a), shall apply with respect to a good that
is entered for consumption, or withdrawn from warehouse
for consumption, on or after the date on which the USMCA
enters into force.
(3) Transition from nafta treatment.--
(A) Exports.--In the case of a good exported from
the United States before the date on which the USMCA
enters into force--
[[Page 134 STAT. 49]]
(i) the amendments made by subsection (a) to
paragraphs (2) and (5)(A) of section 508(b) of the
Tariff Act of 1930 (19 U.S.C. 1508) shall not
apply with respect to the good; and
(ii) section 508 of such Act, as in effect on
the day before that date, shall continue to apply
on and after that date with respect to the good.
(B) Imports.--In the case of a good that is entered
for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters
into force, the amendments made by subsection (a) to
paragraphs (4) and (5)(C) of section 508(b) of the
Tariff Act of 1930 (19 U.S.C. 1508) shall not apply with
respect to the good.
SEC. <<NOTE: 19 USC 4533.>> 207. ACTIONS REGARDING VERIFICATION
OF CLAIMS UNDER THE USMCA.
(a) Verification.--
(1) Origin verification.--
(A) In general.--The Secretary of the Treasury may,
pursuant to article 5.9 of the USMCA, conduct a
verification of whether a good is an originating good
under section 202 or 202A.
(B) <<NOTE: President.>> Additional requirements.--
If the Secretary conducts a verification under
subparagraph (A), the President may direct the
Secretary--
(i) during the verification process, to
release the good only upon payment of duties or
provision of security; and
(ii) if the Secretary makes a negative
determination under subsection (b), to take action
under subsection (c).
(2) Textile and apparel goods.--
(A) In general.--The Secretary of the Treasury may,
pursuant to article 6.6 of the USMCA, conduct a
verification described in subparagraph (C) with respect
to a textile or apparel good.
(B) <<NOTE: President.>> Additional requirements.--
If the Secretary conducts a verification under
subparagraph (A) with respect to a textile or apparel
good, the President may direct the Secretary--
(i) during the verification process, to take
appropriate action described in subparagraph (D);
and
(ii) if the Secretary makes a negative
determination described in subsection (b), to take
action under subsection (c).
(C) Verification described.--A verification
described in this subparagraph with respect to a textile
or apparel good is--
(i) a verification of whether the good
qualifies for preferential tariff treatment under
the USMCA; or
(ii) a verification of whether customs
offenses are occurring or have occurred with
respect to the good.
(D) <<NOTE: Determinations.>> Action during
verification.--Appropriate action described in this
subparagraph may consist of--
[[Page 134 STAT. 50]]
(i) release of the textile or apparel good
that is the subject of a verification described in
subparagraph (C) upon payment of duties or
provision of security;
(ii) suspension of preferential tariff
treatment under the USMCA with respect to--
(I) the textile or apparel good that
is the subject of a verification
described in subparagraph (C)(i), if the
Secretary determines that there is
insufficient information to support the
claim for preferential tariff treatment;
or
(II) any textile or apparel good
exported or produced by a person that is
the subject of a verification described
in subparagraph (C)(ii) if the Secretary
of the Treasury determines that there is
insufficient information to support the
claim for preferential tariff treatment
made with respect to that good;
(iii) denial of preferential tariff treatment
under the USMCA with respect to--
(I) the textile or apparel good that
is the subject of a verification
described in subparagraph (C)(i) if the
Secretary determines that incorrect
information has been provided to support
the claim for preferential tariff
treatment; or
(II) any textile or apparel good
exported or produced by a person that is
the subject of a verification described
in subparagraph (C)(ii) if the Secretary
determines that the person has provided
incorrect information to support the
claim for preferential tariff treatment
that has been made with respect to that
good;
(iv) detention of any textile or apparel good
exported or produced by a person that is the
subject of a verification described in
subparagraph (C) if the Secretary determines that
there is insufficient information to determine the
country of origin of that good; and
(v) denial of entry into the United States of
any textile or apparel good exported or produced
by a person that is the subject of a verification
described in subparagraph (C) if the Secretary
determines that the person has provided incorrect
information regarding the country of origin of
that good.
(b) Negative Determination.--
(1) In general.--A negative determination described in this
subsection with respect to a good imported, exported, or
produced by an importer, exporter, or producer is a
determination by the Secretary, based on a verification
conducted under subsection (a), that--
(A) a claim by the importer, exporter, or producer
that the good qualifies as an originating good under
section 202 is inaccurate; or
(B) the good does not qualify for preferential
tariff treatment under the USMCA because--
(i) the importer, exporter, or producer failed
to respond to a written request for information or
failed
[[Page 134 STAT. 51]]
to provide sufficient information to determine
that the good qualifies as an originating good;
(ii) after receipt of a written notification
for a visit to conduct verification under
subsection (a), the exporter or producer did not
provide written consent for that visit;
(iii) the importer, exporter, or producer does
not maintain, or denies access to, records or
documentation required under section 508(l) of the
Tariff Act of 1930 (19 U.S.C. 1508(l));
(iv) in the case of verification conducted
under subsection (a)(2)--
(I) access or permission for a site
visit is denied;
(II) officials of the United States
are prevented from completing a site
visit on the proposed date and the
exporter or producer does not provide an
acceptable alternative date for the site
visit; or
(III) the exporter or producer does
not provide access to relevant documents
or facilities during a site visit; or
(v) the importer, exporter, or producer--
(I) otherwise fails to comply with
the requirements of this section; or
(II) based on the preponderance of
the evidence, circumvents the
requirements of this section.
(2) Requests for information.--The Secretary shall not make
a negative determination described in paragraph (1)(B) unless--
(A) in a case in which the Secretary conducts a
verification with respect to a good by written request
or questionnaire submitted to the importer under article
5.9.1(a) of the USMCA and the claim for preferential
tariff treatment under the USMCA is based on a
certification of origin completed by the exporter or
producer of the good, the Secretary requests information
from the exporter or producer that completed the
certification; or
(B) in a case in which the Secretary conducts a
verification with respect to a textile or apparel good
by requesting a site visit under article 6.6.2 of the
USMCA, the Secretary requests information from the
importer and from any exporter or producer that provided
information to the Secretary to support the claim for
preferential tariff treatment.
(c) Action Based on Determination.--
(1) Denial of preferential tariff treatment.--Upon making a
negative determination described in subsection (b)(1) with
respect to a good, the Secretary may deny preferential tariff
treatment under the USMCA with respect to the good.
(2) Withholding of preferential tariff treatment based on
pattern of conduct.--If verifications of origin relating to
identical goods indicate a pattern of conduct by an importer,
exporter, or producer of false or unsupported representations
relevant to a claim that a good imported into the United States
qualifies for preferential tariff treatment under the USMCA,
U.S. Customs and Border Protection, in
[[Page 134 STAT. 52]]
accordance with regulations prescribed by the Secretary, may
withhold preferential tariff treatment under the USMCA for
entries of those goods imported, exported, or produced by that
person until U.S. Customs and Border Protection determines that
person has established compliance with requirements for claims
for preferential tariff treatment under the USMCA.
(d) Prevention of Circumvention.--In making a determination under
this section, including whether to accept or reject a claim for
preferential tariff treatment under the USMCA, the Secretary shall
interpret the requirements of this section in a manner to avoid and
prevent circumvention of those requirements.
SEC. <<NOTE: 19 USC 4534.>> 208. DRAWBACK [RESERVED].
SEC. 209. OTHER AMENDMENTS TO THE TARIFF ACT OF 1930.
(a) Country of Origin Marking.--Section 304 of the Tariff Act of
1930 (19 U.S.C. 1304) is amended by striking subsection (k) and
inserting the following:
``(k) Treatment of Goods of a USMCA Country.--In applying this
section to an article that qualifies as a good of a USMCA country (as
defined in section 3 of the United States-Mexico-Canada Agreement
Implementation Act)--
``(1) the exemption under subsection (a)(3)(H) shall be
applied by substituting `reasonably know' for `necessarily
know';
``(2) the Secretary shall exempt the good from the
requirements for marking under subsection (a) if the good--
``(A) is an original work of art; or
``(B) is provided for under subheading 6904.10,
heading 8541, or heading 8542 of the Harmonized Tariff
Schedule of the United States; and
``(3) subsection (b) does not apply to the usual container
of any good described in subsection (a)(3)(E) or (I) or
paragraph (2)(A) or (B) of this subsection.''.
(b) Examination of Books and Witnesses.--Section 509(a)(2)(A) of the
Tariff Act of 1930 (19 U.S.C. 1509(a)(2)(A)) is amended--
(1) in clause (i), by inserting at the end ``or a vehicle
producer whose good is subject to a claim of preferential tariff
treatment under the USMCA (as defined in section 3 of the United
States-Mexico-Canada Agreement Implementation Act),''; and
(2) in clause (ii), by striking ``a NAFTA country'' and all
that follows through ``Implementation Act)'' and inserting ``a
USMCA country (as defined in section 3 of the United States-
Mexico-Canada Agreement Implementation Act)''.
(c) Exchange of Information.--Section 628 of the Tariff Act of 1930
(19 U.S.C. 1628) is amended by striking subsection (c) and inserting the
following:
``(c) Government Agency of USMCA Country.--
``(1) In general.--The Secretary may authorize U.S. Customs
and Border Protection to exchange information with any
government agency of a USMCA country, if the Secretary--
``(A) reasonably believes the exchange of
information is necessary to implement chapter 2, 4, 5,
6, or 7 of the USMCA; and
``(B) obtains assurances from such agency that the
information will be held in confidence and used only for
governmental purposes.
[[Page 134 STAT. 53]]
``(2) Definitions.--In this subsection, the terms `USMCA'
and `USMCA country' have the meanings given those terms in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act.''.
(d) <<NOTE: 19 USC 1304 note.>> Effective Date.--
(1) In general.--The amendments made by this section shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered for
consumption, or withdrawn from warehouse for
consumption, on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into
force--
(A) the amendments made by this section shall not
apply with respect to the good; and
(B) the provisions of law amended by this section,
as such provisions were in effect on the day before that
date, shall continue to apply on and after that date
with respect to the good.
(e) <<NOTE: 19 USC 1628 note.>> Effective Date Relating to Exchange
of Information.--Notwithstanding the amendment made by subsection (c),
the Secretary of the Treasury shall retain the authority provided in
section 628(c) of the Tariff Act of 1930 (as in effect on the day before
the date on which the USMCA enters into force) to exchange information
with any government agency of a NAFTA country (as defined in section 2
of the North American Free Trade Agreement Implementation Act (as in
effect on the day before the date on which the USMCA enters into
force)).
SEC. <<NOTE: 19 USC 4535.>> 210. REGULATIONS.
(a) Secretary of the Treasury.--The Secretary of the Treasury shall
prescribe such regulations as may be necessary to carry out this title
and the amendments made by this title (except as provided by subsection
(b)).
(b) Secretary of Labor.--The Secretary of Labor shall prescribe such
regulations as may be necessary to carry out the labor value content
determination under section 202A.
[[Page 134 STAT. 54]]
TITLE III--APPLICATION OF USMCA TO SECTORS AND SERVICES
Subtitle A--Relief From Injury Caused by Import Competition [reserved]
Subtitle B--Temporary Entry of Business Persons [reserved]
Subtitle C--United States-Mexico Cross-Border Long-Haul Trucking
Services
SEC. <<NOTE: 19 USC 4571.>> 321. DEFINITIONS.
In this subtitle:
(1) Border commercial zone.--The term ``border commercial
zone'' means--
(A) the area of United States territory of the
municipalities along the United States-Mexico
international border and the commercial zones of such
municipalities as described in subpart B of part 372 of
title 49, Code of Federal Regulations; and
(B) any additional border crossing and associated
commercial zones listed in the Federal Motor Carrier
Safety Administration OP-2 application instructions or
successor documents.
(2) Cargo originating in mexico.--The term ``cargo
originating in Mexico'' means any cargo that enters the United
States by commercial motor vehicle from Mexico, including cargo
that may have originated in a country other than Mexico.
(3) Change in circumstances.--The term ``change in
circumstance'' may include a substantial increase in services
supplied by the grantee of a grant of authority.
(4) Commercial motor vehicle.--The term ``commercial motor
vehicle'' means a commercial motor vehicle, as such term is
defined in paragraph (1) of section 31132 of title 49, United
States Code, that meets the requirements of subparagraph (A) of
such paragraph.
(5) Cross-border long-haul trucking services.--The term
``cross-border long-haul trucking services'' means--
(A) the transportation by commercial motor vehicle
of cargo originating in Mexico to a point in the United
States outside of a border commercial zone; or
(B) the transportation by commercial motor vehicle
of cargo originating in the United States from a point
in the United States outside of a border commercial zone
to a point in a border commercial zone or a point in
Mexico.
(6) Driver.--The term ``driver'' means a person that drives
a commercial motor vehicle in cross-border long-haul trucking
services.
(7) Grant of authority.--The term ``grant of authority''
means registration granted pursuant to section 13902 of title
49, United States Code, or a successor provision, to persons
[[Page 134 STAT. 55]]
of Mexico to conduct cross-border long-haul trucking services in
the United States.
(8) Interested party.--The term ``interested party'' means--
(A) persons of the United States engaged in the
provision of cross-border long-haul trucking services;
(B) a trade or business association, a majority of
whose members are part of the relevant United States
long-haul trucking services industry;
(C) a certified or recognized union, or
representative group of suppliers, operators, or drivers
who are part of the United States long-haul trucking
services industry;
(D) the Government of Mexico; or
(E) persons of Mexico.
(9) Material harm.--The term ``material harm'' means a
significant loss in the share of the United States market or
relevant sub-market for cross-border long-haul trucking services
held by persons of the United States.
(10) Operator or supplier.--The term ``operator'' or
``supplier'' means an entity that has been granted registration
under section 13902 of title 49, United States Code, to provide
cross-border long-haul trucking services.
(11) Persons of mexico.--The term ``persons of Mexico''
includes--
(A) entities domiciled in Mexico organized, or
otherwise constituted under Mexican law, including
subsidiaries of United States companies domiciled in
Mexico, or entities owned or controlled by a Mexican
national, which conduct cross-border long-haul trucking
services, or employ drivers who are non-United States
nationals; and
(B) drivers who are Mexican nationals.
(12) Persons of the united states.--The term ``persons of
the United States'' includes entities domiciled in the United
States, organized or otherwise constituted under United States
law, and not owned or controlled by persons of Mexico, which
provide cross-border long-haul trucking services and long-haul
commercial motor vehicle drivers who are United States
nationals.
(13) Threat of material harm.--The term ``threat of material
harm'' means material harm that is likely to occur.
(14) United states long-haul trucking services industry.--
The term ``United States long-haul trucking services industry''
means--
(A) United States suppliers, operators, or drivers
as a whole providing cross-border long-haul trucking
services; or
(B) United States suppliers, operators, or drivers
providing cross-border long-haul trucking services in a
specific sub-market of the whole United States market.
SEC. <<NOTE: 19 USC 4572.>> 322. INVESTIGATIONS AND
DETERMINATIONS BY COMMISSION.
(a) Investigation.--Upon the filing of a petition by an interested
party described in subparagraph (A), (B), or (C) of section 321(8) which
is representative of a United States long-haul trucking services
industry, or at the request of the President or the Trade
Representative, or upon the resolution of the Committee on Ways and
Means of the House of Representatives or the Committee
[[Page 134 STAT. 56]]
on Finance of the Senate, the International Trade Commission (in this
subtitle referred to as the ``Commission'') shall promptly initiate an
investigation to determine--
(1) whether a request by a person of Mexico to receive a
grant of authority that is pending as of the date of the filing
of the petition threatens to cause material harm to a United
States long-haul trucking services industry;
(2) whether a person of Mexico who has received a grant of
authority on or after the date of entry into force of the USMCA
and retains such grant of authority is causing or threatens to
cause material harm to a United States long-haul trucking
services industry; or
(3) whether, with respect to a person of Mexico who has
received a grant of authority before the date of entry into
force of the USMCA and retains such grant of authority, there
has been a change in circumstances such that such person of
Mexico is causing or threatens to cause material harm to a
United States long-haul trucking services industry.
(b) Transmission of Petition, Request, or Resolution.--The
Commission shall transmit a copy of any petition, request, or resolution
filed under subsection (a) to the Trade Representative and the Secretary
of Transportation.
(c) Publication and Hearings.--The Commission shall--
(1) <<NOTE: Notice. Federal Register, publication.>>
promptly publish notice of the commencement of any investigation
under subsection (a) in the Federal Register; and
(2) within a reasonable time period thereafter, hold public
hearings at which the Commission shall afford interested parties
an opportunity to be present, to present evidence, to respond to
presentations of other parties, and otherwise to be heard.
(d) Factors Applied in Making Determinations.--In making a
determination under subsection (a) of whether a request by a person of
Mexico to receive a grant of authority, or a person of Mexico who has
received a grant of authority and retains such grant of authority, as
the case may be, threatens to cause material harm to a United States
long-haul trucking services industry, the Commission shall--
(1) consider, among other things, and as relevant--
(A) the volume and tonnage of merchandise
transported; and
(B) the employment, wages, hours of service, and
working conditions; and
(2) with respect to a change in circumstances described in
subsection (a)(3), take into account those operations by persons
of Mexico under grants of authority in effect as of the date of
entry into force of the USMCA are not causing material harm.
(e) Assistance to Commission.--
(1) <<NOTE: Consultation. Data.>> In general.--At the
request of the Commission, the Secretary of Homeland Security
shall consult with the Commission and shall collect and maintain
such additional data and other information on commercial motor
vehicles entering or exiting the United States at a port of
entry or exit at the United States border with Mexico as the
Commission may request for the purpose of conducting
investigations under subsection (a) and shall make such
information available to the Commission in a timely manner.
[[Page 134 STAT. 57]]
(2) Requests for information.--
(A) In general.--At the request of the Commission,
the Secretary of Homeland Security, the Secretary of
Transportation, the Secretary of Commerce, the Secretary
of Labor, and the head of any other Federal agency shall
make available to the Commission any information in
their possession, including proprietary information, as
the Commission may require in order to assist the
Commission in making determinations under subsection
(a).
(B) Confidential business information.--The
Commission shall treat any proprietary information
obtained under subparagraph (A) as confidential business
information in accordance with regulations adopted by
the Commission to carry out this subtitle.
(f) Limited Disclosure of Confidential Business Information
Under <<NOTE: Regulations.>> Protective Order.--The Commission shall
promulgate regulations to provide access to confidential business
information under protective order to authorized representatives of
interested parties who are parties to an investigation under subsection
(a).
(g) Deadline for Determination.--
(1) In general.--Not later than 120 days after the date on
which an investigation is initiated under subsection (a) with
respect to a petition, request, or resolution, the Commission
shall make a determination with respect to the petition,
request, or resolution.
(2) Exception.--If, before the 100th day after an
investigation is initiated under subsection (a), the Commission
determines that the investigation is extraordinarily
complicated, the Commission shall make its determination with
respect to the investigation not later than 150 days after the
date referred to in paragraph (1).
(h) Applicable Provisions.--For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect to
determinations and findings made under this section as if such
determinations and findings were made under section 202 of the Trade Act
of 1974 (19 U.S.C. 2252).
SEC. <<NOTE: 19 USC 4573.>> 323. COMMISSION RECOMMENDATIONS AND
REPORT.
(a) In General.--If the Commission makes an affirmative
determination under section 322, the Commission shall recommend the
action that is necessary to address the material harm or threat of
material harm found.
(b) Limitation.--Only those members of the Commission who agreed to
the affirmative determination under section 322 are eligible to vote on
the recommendation required to be made under subsection (a).
(c) Report.--Not later than the date that is 60 days after the date
on which the determination is made under section 322, the Commission
shall submit to the President a report that includes--
(1) the determination and an explanation of the basis for
the determination;
(2) if the determination is affirmative, recommendations for
action and an explanation of the basis for the recommendation;
and
[[Page 134 STAT. 58]]
(3) any dissenting or separate views by members of the
Commission regarding the determination.
(d) Public Notice.--Upon submitting a report to the President under
subsection (c), the Commission shall--
(1) promptly make public the report (with the exception of
information which the Commission determines to be confidential
business information); and
(2) <<NOTE: Federal Register, publication. Summary.>>
publish a summary of the report in the Federal Register.
SEC. <<NOTE: 19 USC 4574.>> 324. ACTION BY PRESIDENT WITH RESPECT
TO AFFIRMATIVE DETERMINATION.
(a) <<NOTE: Deadline.>> In General.--Not later than the date that
is 30 days after the date on which the President receives a report of
the Commission in which the Commission's determination under section 322
is affirmative or which contains a determination that the President may
treat as affirmative in accordance with section 330(d)(1) of the Tariff
Act of 1930 (19 U.S.C. 1330(d)(1))--
(1) the President shall, subject to subsection (b), issue an
order to the Secretary of Transportation specifying the relief
to be provided, consistent with subsection (c), and directing
the relief to be carried out; and
(2) the Secretary of Transportation shall carry out such
relief.
(b) Exception.--The President is not required to provide relief
under this section if the President determines that provision of such
relief--
(1) is not in the national economic interest of the United
States; or
(2) would cause serious harm to the national security of the
United States.
(c) Nature of Relief.--
(1) In general.--The relief the President is authorized to
provide under this subsection is as follows:
(A)(i) With respect to a determination relating to
an investigation under section 322(a)(1), the denial or
imposition of limitations on a request for a new grant
of authority by the persons of Mexico that are the
subject of the investigation.
(ii) With respect to a determination relating to an
investigation under section 322(a)(1), the revocation
of, or restrictions on, grants of authority issued to
the persons of Mexico that are the subject of the
investigation since the date of the petition, request,
or resolution.
(B) With respect to a determination relating to an
investigation under section 322(a)(2) or (3), the
revocation or imposition of limitations on an existing
grant of authority by the persons of Mexico that are the
subject of the investigation.
(C) With respect to a determination relating to an
investigation under section 322(a)(1), (2), or (3), a
cap on the number of grants of authority issued to
persons of Mexico annually.
(2) Deadline for relief.--Not later than 15 days after the
date on which the President determines the relief to be provided
under this subsection, the President shall direct the Secretary
of Transportation to carry out the relief.
(d) Period of Relief.--
[[Page 134 STAT. 59]]
(1) In general.--Subject to paragraph (2), any relief that
the President provides under this section may not be in effect
for more than 2 years.
(2) Extension.--
(A) In general.--Subject to subparagraph (C), the
President, after receiving a determination from the
Commission under subparagraph (B) that is affirmative,
or which contains a determination that the President may
treat as affirmative in accordance with section
330(d)(1) of the Tariff Act of 1930 (19 U.S.C.
1330(d)(1)(1)), may extend the effective period of
relief provided under this section by up to an
additional 4 years, if the President determines that the
provision of the relief continues to be necessary to
remedy or prevent material harm.
(B) Action by commission.--
(i) <<NOTE: Time period.>> Investigation.--
Upon request of the President, or upon the filing
by an interested party described in subparagraph
(A), (B), or (C) of section 321(8) which is
representative of a United States long-haul
trucking services industry that is filed with the
Commission not earlier than the date that is 270
days, and not later than the date that is 240
days, before the date on which any action taken
under this section is to terminate, the Commission
shall conduct an investigation to determine
whether action under this section continues to be
necessary to remedy or prevent material harm.
(ii) Notice and hearing.--The Commission
shall--
(I) <<NOTE: Federal Register,
publication.>> publish notice of the
commencement of an investigation under
clause (i) in the Federal Register; and
(II) within a reasonable time
thereafter, hold a public hearing at
which the Commission shall afford
interested parties an opportunity to be
present, to present evidence, and to
respond to the presentations of other
parties and consumers, and otherwise be
heard.
(iii) Report.--Not later than the date that is
60 days before relief provided under subsection
(a) is to terminate, or such other date as
determined by the President, the Commission shall
submit to the President a report on its
investigation and determination under this
subparagraph.
(C) Period of relief.--Any relief provided under
this section, including any extension thereof, may not,
in the aggregate, be in effect for more than 6 years.
(D) Limitation.--
(i) In general.--Except as provided in clause
(ii), the Commission may not conduct an
investigation under subparagraph (B)(i) if--
(I) the subject matter of the
investigation is the same as the subject
matter of a previous investigation
conducted under subparagraph (B)(i); and
(II) <<NOTE: Time period.>> less
than 1 year has elapsed since the
Commission made its report to the
President of the results of such
previous investigation.
[[Page 134 STAT. 60]]
(ii) Exception.--Clause (i) shall not apply
with respect to an investigation if the Commission
determines good cause exists to conduct the
investigation.
(e) Regulations.--The Commission and the Secretary of Transportation
are authorized to promulgate such rules and regulations as may be
necessary to carry out this subtitle.
SEC. 325. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is
amended in the first sentence by striking ``and title III of the United
States-Panama Trade Promotion Agreement Implementation Act'' and
inserting ``, title III of the United States-Panama Trade Promotion
Agreement Implementation Act, and subtitle C of title III of the United
States-Mexico-Canada Agreement Implementation Act''.
SEC. 326. CONFORMING AMENDMENTS.
(a) Registration of Motor Carriers.--Section 13902 of title 49,
United States Code, is amended by inserting at the end the following:
``(j) Mexico-Domiciled Motor Carriers.--Notwithstanding any other
provision of this section, upon an order in accordance with section
324(a) of the United States-Mexico-Canada Agreement Implementation Act,
the Secretary shall carry out the relief specified by denying or
imposing limitations on a request for registration or capping the number
of requests for registration by Mexico-domiciled motor carriers of cargo
to operate beyond the municipalities along the United States-Mexico
international border and the commercial zones of those municipalities as
directed.''.
(b) Effective Periods of Registration.--Section 13905 of title 49,
United States Code, is amended by inserting at the end the following:
``(g) Mexico-Domiciled Motor Carriers.--Notwithstanding any other
provision of this section, upon an order in accordance with section
324(a) of the United States-Mexico-Canada Agreement Implementation Act,
the Secretary shall carry out the relief specified by revoking or
imposing limitations on existing registrations of Mexico-domiciled motor
carriers of cargo to operate beyond the municipalities along the United
States-Mexico international border and the commercial zones of those
municipalities as directed.''.
SEC. 327. SURVEY OF OPERATING AUTHORITIES.
The Department of Transportation shall undertake a survey of all
existing grants of operating authority to, and pending applications for
operating authority from, all Mexico-domiciled motor property carriers
for operating beyond the Border Commercial Zones, including OP-1 (MX)
operating authority (Mexico-domiciled Carriers for Motor Carrier
Authority to Operate Beyond U.S. Municipalities and Commercial Zones on
the U.S.-Mexico Border) and OP-1 operating authority (United States-
based Enterprise Carrier of International Cargo Application for Motor
Property Carrier and Broker Authority). <<NOTE: Reports.>> The
Department of Transportation shall prepare a report summarizing the
results of such survey not less than 180 days after the date on which
the USMCA enters into force, which it shall deliver to the Office of the
United States Trade Representative, the Commission, and the Chairs and
Ranking Members of the Committee on Transportation and Infrastructure of
the House of Representatives, the Committee on Commerce, Science,
[[Page 134 STAT. 61]]
and Transportation of the Senate, the Committee on Ways and Means of the
House of Representatives, and the Committee on Finance of the Senate.
TITLE IV--ANTIDUMPING AND COUNTERVAILING DUTIES
Subtitle A--Preventing Duty Evasion
SEC. 401. COOPERATION ON DUTY EVASION.
Section 414(b) of the Enforce and Protect Act of 2015 (19 U.S.C.
4374(b)) is amended--
(1) by inserting ``or a party to the USMCA (as defined in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act)'' after ``subsection (a)''; and
(2) by inserting ``or the USMCA, as the case may be,'' after
``the bilateral agreement''.
Subtitle B--Dispute Settlement [reserved]
Subtitle C--Conforming Amendments
SEC. 421. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTERVAILING
DUTY CASES.
Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)(B)(vii), by striking ``the
Tariff Act of 1930'' and inserting ``this Act''; and
(B) in paragraph (5)(D)(i), by striking ``article
1904 of the NAFTA'' and inserting ``article 10.12 of the
USMCA'';
(2) in subsection (b)(3)--
(A) in the paragraph heading, by striking ``nafta or
united states-canada'' and inserting ``united states-
canada or usmca''; and
(B) in the text, by striking ``of the NAFTA or of
the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA'';
(3) in subsection (f)--
(A) in paragraph (6)(A), by striking ``article 1908
of the NAFTA'' and inserting ``article 10.16 of the
USMCA'';
(B) in paragraph (7)(A), by striking ``article 1908
of the NAFTA'' and inserting ``article 10.16 of the
USMCA'';
(C) by striking paragraph (8);
(D) by redesignating paragraphs (9) and (10) as
paragraphs (8) and (9), respectively;
(E) in paragraph (9), as redesignated by
subparagraph (D), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) Canada for such time as the USMCA is in force
with respect to, and the United States applies the USMCA
to, Canada.
[[Page 134 STAT. 62]]
``(B) Mexico for such time as the USMCA is in force
with respect to, and the United States applies the USMCA
to, Mexico.''; and
(F) by adding at the end the following:
``(10) <<NOTE: Definition.>> USMCA.--The term `USMCA' has
the meaning given that term in section 3 of the United States-
Mexico-Canada Agreement Implementation Act.'';
(4) in subsection (g)--
(A) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``of the NAFTA or of the
Agreement'' and inserting ``of the Agreement or article
10.12 of the USMCA'';
(B) in paragraph (3)(A)--
(i) in clause (i), by striking ``of the NAFTA
or of the Agreement.'' and inserting ``of the
Agreement or article 10.12 of the USMCA;'';
(ii) in clause (iii), by striking ``the NAFTA
or of the Agreement'' and inserting ``the
Agreement or the USMCA'';
(iii) in clause (v), by striking ``paragraph
12 of article 1905 of the NAFTA'' and inserting
``article 10.13 of the USMCA''; and
(iv) in clause (vi), by striking ``paragraph
12 of article 1905 of the NAFTA'' and inserting
``article 10.13 of the USMCA'';
(C) in paragraph (4)(A), by striking ``the North
American Free Trade Agreement'' and all that follows
through ``chapter 19 of the Agreement'' and inserting
``the United States-Canada Free-Trade Agreement
Implementation Act of 1988 implementing the binational
panel dispute settlement system under chapter 19 of the
Agreement, or the United States-Mexico-Canada Agreement
Implementation Act implementing the binational panel
dispute settlement system under chapter 10 of the
USMCA'';
(D) in paragraph (5)--
(i) in subparagraph (A), by striking ``of the
NAFTA or of the Agreement'' and inserting ``of the
Agreement or article 10.12 of the USMCA'';
(ii) in subparagraph (B), by striking ``of the
NAFTA or of the Agreement'' and inserting ``of the
Agreement or article 10.12 of the USMCA''; and
(iii) in subparagraph (C)--
(I) in clause (i), by striking ``of
the NAFTA or of the Agreement'' and
inserting ``of the Agreement or article
10.12 of the USMCA''; and
(II) in clause (iii), by striking
``of the NAFTA or of the Agreement'' and
inserting ``of the Agreement or chapter
10 of the USMCA'';
(E) in paragraph (6), by striking ``of the NAFTA or
of the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA'';
(F) in paragraph (7)--
(i) in the paragraph heading, by striking ``of
the nafta or the agreement'' and inserting ``of
the agreement or article 10.12 of the usmca''; and
[[Page 134 STAT. 63]]
(ii) in subparagraph (A), by striking ``the
NAFTA or the Agreement'' and inserting ``article
1904 of the Agreement or article 10.12 of the
USMCA'';
(G) in paragraph (8)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``of
the NAFTA or of the Agreement'' and
inserting ``of the Agreement or article
10.12 of the USMCA''; and
(II) in clause (ii)--
(aa) in the clause heading,
by striking ``nafta'' and
inserting ``usmca''; and
(bb) in the text, by
striking ``paragraph 11(a) of
article 1905 of the NAFTA'' and
inserting ``article 10.13 of the
USMCA''; and
(ii) in subparagraph (C), by striking ``of the
NAFTA or the Agreement'' and inserting ``of the
Agreement or article 10.12 of the USMCA'';
(H) in paragraph (9), by striking ``of the NAFTA or
of the Agreement'' and inserting ``of the Agreement or
chapter 10 of the USMCA'';
(I) in paragraph (10), by striking ``the NAFTA or
the Agreement'' and inserting ``the Agreement or under
article 10.12 of the USMCA'';
(J) by striking paragraph (11) and inserting the
following:
``(11) Suspension and termination of suspension of article
10.12 of the usmca.--
``(A) Suspension.--If a special committee
established under article 10.13 of the USMCA issues an
affirmative finding, the Trade Representative may, in
accordance with article 10.13 of the USMCA, suspend the
operation of article 10.12 of the USMCA.
``(B) Termination of suspension.--If a special
committee is reconvened and makes an affirmative
determination described in article 10.13 of the USMCA,
any suspension of the operation of article 10.12 of the
USMCA shall terminate.''; and
(K) in paragraph (12)--
(i) in the paragraph heading, by striking
``nafta'' and inserting ``usmca'';
(ii) by striking subparagraph (A) and
inserting the following:
``(A) Notice of suspension or termination of
suspension of article 10.12 <<NOTE: Federal Register,
publications.>> of the usmca.--
``(i) Notice of suspension.--Upon notification
by the Trade Representative or the government of a
country described in subparagraph (A) or (B) of
subsection (f)(9) that the operation of article
10.12 of the USMCA has been suspended in
accordance with article 10.13 of the USMCA, the
United States Secretary shall publish in the
Federal Register a notice of suspension of article
10.12 of the USMCA.
``(ii) Notice of termination of suspension.--
Upon notification by the Trade Representative or
the government of a country described in
subparagraph (A) or (B) of subsection (f)(9) that
the suspension of
[[Page 134 STAT. 64]]
the operation of article 10.12 of the USMCA is
terminated in accordance with article 10.13 of the
USMCA, the United States Secretary shall publish
in the Federal Register a notice of termination of
suspension of article 10.12 of the USMCA.'';
(iii) in subparagraph (B)--
(I) in the subparagraph heading, by
striking ``article 1904'' and inserting
``article 10.12 of the usmca''; and
(II) in the matter preceding clause
(i), by striking ``If'' and all that
follows through ``NAFTA--'' and
inserting the following: ``If the
operation of article 10.12 of the USMCA
is suspended in accordance with article
10.13 of the USMCA--'';
(iv) in subparagraph (C)--
(I) in clause (i)--
(aa) in the matter preceding
subclause (I), by striking ``if
the United States'' and all that
follows through ``NAFTA--'' and
inserting the following: ``if
the United States made an
allegation under article 10.13
of the USMCA and the operation
of article 10.12 of the USMCA
was suspended pursuant to
article 10.13 of the USMCA--'';
and
(bb) in subclause (I), by
striking ``subsection (f)(10)(A)
or (B)'' and inserting
``subparagraph (A) or (B) of
subsection (f)(9)''; and
(II) in clause (ii), in the matter
preceding subclause (I), by striking
``if a country'' and all that follows
through ``NAFTA--'' and inserting the
following: ``if a country described in
subparagraph (A) or (B) of subsection
(f)(9) made an allegation under article
10.13 of the USMCA and the operation of
article 10.12 of the USMCA was suspended
pursuant to article 10.13 of the USMCA--
''; and
(v) in subparagraph (D)(i), by striking ``a
country described'' and all that follows through
``NAFTA'' and inserting ``a country described in
subparagraph (A) or (B) of subsection (f)(9)
pursuant to article 10.13 of the USMCA''.
SEC. 422. CONFORMING AMENDMENTS TO OTHER PROVISIONS OF THE TARIFF
ACT OF 1930.
(a) Disclosure of Proprietary Information Under Protective Orders.--
Section 777(f) of the Tariff Act of 1930 (19 U.S.C. 1677f(f)) is
amended--
(1) in the subsection heading, by striking ``North American
Free Trade Agreement or the United States-Canada Agreement'' and
inserting ``the United States-Canada Agreement or the USMCA'';
(2) in paragraph (1)--
(A) in subparagraph (A), by striking ``article 1904
of the NAFTA'' and all that follows through ``, the
administering authority'' and inserting ``article 1904
of the United States-Canada Agreement or article 10.12
of the USMCA,
[[Page 134 STAT. 65]]
or an extraordinary challenge committee is convened
under Annex 1904.13 of the United States-Canada
Agreement or chapter 10 of the USMCA, the administering
authority''; and
(B) in subparagraph (B), by striking ``chapter 19 of
the NAFTA or the Agreement'' each place it appears and
inserting ``chapter 19 of the Agreement or chapter 10 of
the USMCA'';
(3) in paragraph (3), by striking ``the NAFTA or the United
States-Canada Agreement'' and inserting ``article 1904 of the
United States-Canada Agreement or article 10.12 of the USMCA'';
(4) in paragraph (4), by striking ``section 402(b) of the
North American Free Trade Agreement Implementation Act'' and
inserting ``section 412(b) of the United States-Mexico-Canada
Agreement Implementation Act''; and
(5) by striking ``section 516A(f)(10)'' each place it
appears and inserting ``section 516A(f)(9)''.
(b) Definition.--Section 771 of the Tariff Act of 1930 (19 U.S.C.
1677) is amended by striking paragraph (22) and inserting the following:
``(22) USMCA.--The term `USMCA' has the meaning given that
term in section 3 of the United States-Mexico-Canada Agreement
Implementation Act.''.
SEC. 423. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES CODE.
(a) Court of International Trade.--Chapter 95 of title 28, United
States Code, is amended--
(1) in section 1581(i)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively;
(B) by inserting ``(1)'' after ``(i)'';
(C) in subparagraph (D), as redesignated by
subparagraph (A), by striking ``paragraphs (1)-(3) of
this subsection'' and inserting ``subparagraphs (A)
through (C) of this paragraph''; and
(D) by striking the flush text and inserting the
following:
``(2) This subsection shall not confer jurisdiction over an
antidumping or countervailing duty determination which is reviewable
by--
``(A) the Court of International Trade under section 516A(a)
of the Tariff Act of 1930 (19 U.S.C. 1516a(a)); or
``(B) a binational panel under section 516A(g) of the Tariff
Act of 1930 (19 U.S.C. 1516a(g)).'';
(2) in section 1584, by striking the section heading and
inserting the following:
``Sec. 1584. Civil actions under the United States-Canada Free-
Trade Agreement or the USMCA'';
and
[[Page 134 STAT. 66]]
(3) <<NOTE: 28 USC 1581 prec.>> in the table of sections at
the beginning of the chapter, by striking the item relating to
section 1584 and inserting the following:
``1584. Civil actions under the United States-Canada Free-Trade
Agreement or the USMCA.''.
(b) Particular Proceedings.--Sections 2201(a) and 2643(c)(5) of
title 28, United States Code, are each amended by striking ``section
516A(f)(10)'' and inserting ``section 516A(f)(9)''.
Subtitle D--General Provisions
SEC. <<NOTE: 19 USC 4601.>> 431. EFFECT OF TERMINATION OF USMCA
COUNTRY STATUS.
(a) In General.--Except as provided in subsection (b), on the date
on which a country ceases to be a USMCA country, 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 country.
(b) Transition Provisions.--
(1) Proceedings regarding protective orders and
undertakings.--If on the date on which a country ceases to be a
USMCA country 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
title) or an undertaking of the government 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) (as so amended).
(2) Binational panel and extraordinary challenge committee
reviews.--If on the date on which a country ceases to be a USMCA
country--
(A) a binational panel review under article 10.12 of
the USMCA is pending, or has been requested, or
(B) an extraordinary challenge committee review
under that article is pending, or has been requested,
with respect to a determination which involves a class or kind
of merchandise and to which subsection (g)(2) of section 516A of
the Tariff Act of 1930 (19 U.S.C. 1516a) applies, such
determination shall be reviewable under subsection (a) of that
section. 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 USMCA ceases to be in force
with respect to that country.
SEC. <<NOTE: 19 USC 1516a note.>> 432. EFFECTIVE DATE.
The provisions of this title and the amendments made by this title
shall take effect on the date on which the USMCA enters into force, but
shall not apply--
(1) to any final determination described in paragraph (1)(B)
or clause (i), (ii), or (iii) of paragraph (2)(B) of section
516A(a) of the Tariff Act of 1930 (19 U.S.C. 1516a(a)) notice of
which is published in the Federal Register before such date, or
to a determination described in paragraph (2)(B)(vi) of that
section notice of which is received by the Government of Canada
or Mexico before such date; or
[[Page 134 STAT. 67]]
(2) to any binational panel review under NAFTA, or any
extraordinary challenge arising out of any such review, that was
commenced before such date.
TITLE V--TRANSFER PROVISIONS AND OTHER AMENDMENTS
SEC. 501. DRAWBACK.
(a) <<NOTE: 19 USC 4534.>> Clerical Amendment.--Section 208 of this
Act is amended in the section heading by striking ``[reserved]''.
(b) USMCA Drawback.--Subsection (a) of section 203 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3333) is--
(1) transferred to section 208 <<NOTE: 19 USC 4534.>> of
this Act;
(2) inserted after the section heading for that section (as
amended by subsection (a)); and
(3) amended--
(A) by striking ``NAFTA country'' each place it
appears and inserting ``USMCA country'';
(B) in the subsection heading, by striking ``NAFTA''
and inserting ``USMCA'';
(C) in the matter preceding paragraph (1)--
(i) by striking ``and the amendments made by
subsection (b)''; and
(ii) by striking ``NAFTA drawback'' and
inserting ``USMCA drawback'';
(D) in paragraph (2)--
(i) in subparagraph (A), by inserting
``sorting, marking,'' after ``repacking,''; and
(ii) in subparagraph (B), by striking
``paragraph 12 of section A of Annex 703.2 of the
Agreement'' and inserting ``paragraph 11 of Annex
3-B of the USMCA''; and
(E) by amending paragraph (6) to read as follows:
``(6) A good provided for in subheading 1701.13.20 or
1701.14.20 of the HTS that is imported under any re-export
program or any like program and 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 existing Mexican tariff item
1701.99.01, 1701.99.02, or 1701.99.99 (relating to refined
sugar).''.
(c) Same Kind and Quality.--Section 208 of this Act, as amended by
subsection (b), is further amended by adding at the end the following:
``(b) Same Kind and Quality.--For purposes of paragraphs
(3)(A)(iii), (5)(C), (6)(B), and (8) of subsection (a), and for purposes
of obtaining refunds, waivers, or reductions of customs duties with
respect to a good subject to USMCA drawback under section 313(n)(2) of
the Tariff Act of 1930 (19 U.S.C. 1313(n)(2)), a good is a good of the
same kind and quality as another good--
``(1) for a good described in such paragraph (6)(B), if the
good would have been considered of the same kind and quality
[[Page 134 STAT. 68]]
as the other good on the day before the date on which the USMCA
enters into force; or
``(2) for other goods if--
``(A) the good is classified under the same 8-digit
HTS subheading number as the other good; or
``(B) drawback would be allowed with respect to the
goods under subsection (b)(4), (j)(1), or (p) of section
313 of the Tariff Act of 1930 (19 U.S.C. 1313).''.
(d) Certain Fees; Inapplicability to Countervailing and Antidumping
Duties.--Subsections (d) and (e) of section 203 of the North American
Free Trade Agreement Implementation Act (19 U.S.C. 3333) are--
(1) transferred to section 208 <<NOTE: 19 USC 4534.>> of
this Act;
(2) inserted after subsection (b) of section 208 (as added
by subsection (c));
(3) redesignated as subsections (c) and (d), respectively;
and
(4) amended, in subsection (c) (as redesignated by paragraph
(3)), by striking ``exported to'' and all that follows through
the period at the end and inserting ``exported to a USMCA
country.''.
(e) Conforming Amendments.--
(1) Bonded manufacturing warehouses.--Section 311 of the
Tariff Act of 1930 (19 U.S.C. 1311) is amended, in the eleventh
paragraph--
(A) by striking ``NAFTA'' each place it appears;
(B) by striking ``section 203(a) of the North
American Free Trade Agreement Implementation Act'' and
inserting ``section 208(a) of the United States-Mexico-
Canada Agreement Implementation Act''; and
(C) by striking ``section 2(4) of that Act'' and
inserting ``section 3 of that Act''.
(2) Bonded smelting and refining warehouses.--Section 312 of
the Tariff Act of 1930 (19 U.S.C. 1312) is amended, in
subsections (b) and (d)--
(A) by striking ``NAFTA'' each place it appears and
inserting ``USMCA'';
(B) by striking ``section 2(4) of the North American
Free Trade Agreement Implementation Act'' each place it
appears and inserting ``section 3 of the United States-
Mexico-Canada Agreement Implementation Act''; and
(C) by striking ``section 203(a) of that Act'' each
place it appears and inserting ``section 208(a) of that
Act''.
(3) Drawback and refunds.--Section 313 of the Tariff Act of
1930 (19 U.S.C. 1313) is amended--
(A) in subsection (j)(4), by striking subparagraph
(A) and inserting the following:
``(A)(i) Effective upon the entry into force of the USMCA,
the exportation to a USMCA country of merchandise that is
fungible with and substituted for imported merchandise, other
than merchandise described in paragraphs (1) through (8) of
section 208(a) of the United States-Mexico-Canada Agreement
Implementation Act, shall not constitute an exportation for
purposes of paragraph (2).
``(ii) In this subparagraph, the terms `USMCA' and `USMCA
country' have the meanings given those terms in section 3
[[Page 134 STAT. 69]]
of the United States-Mexico-Canada Agreement Implementation
Act.'';
(B) in subsection (n)--
(i) in paragraph (1), by striking
subparagraphs (A) and (B) and inserting the
following:
``(A) the term `USMCA country' has the meaning given that
term in section 3 of the United States-Mexico-Canada Agreement
Implementation Act;
``(B) the term `good subject to USMCA drawback' has the
meaning given that term in section 208(a) of the United States-
Mexico-Canada Agreement Implementation Act;''; and
(ii) in paragraphs (2) and (3), by striking
``NAFTA'' each place it appears and inserting
``USMCA''; and
(C) in subsection (o), by striking ``NAFTA'' each
place it appears and inserting ``USMCA''.
(4) Manipulation in warehouse.--Section 562 of the Tariff
Act of 1930 (19 U.S.C. 1562) is amended--
(A) by striking paragraph (1) and inserting the
following:
``(1) without payment of duties for exportation to a USMCA
country, as defined in section 3 of the United States-Mexico-
Canada Agreement Implementation Act, if the merchandise is of a
kind described in any of paragraphs (1) through (8) of section
208(a) of that Act;'';
(B) in paragraph (2)--
(i) by striking ``section 203(a) of that Act''
and inserting ``section 208(a) of that Act''; and
(ii) by striking ``NAFTA'' each place it
appears and inserting ``USMCA''; and
(C) in paragraphs (3) and (4), by striking ``NAFTA''
each place it appears and inserting ``USMCA''.
(5) Foreign trade zones.--Section 3(a)(2) of the Act of June
18, 1934 (commonly known as the ``Foreign Trade Zones Act'') (19
U.S.C. 81c(a)(2)) is amended, in the flush text--
(A) by striking ``goods subject to NAFTA drawback,
as defined in section 203(a) of the North American Free
Trade Agreement Implementation Act'' and inserting
``goods subject to USMCA drawback, as defined in section
208(a) of the United States-Mexico-Canada Agreement
Implementation Act'';
(B) by striking ``a NAFTA country, as defined in
section 2(4) of that Act'' and inserting ``a USMCA
country, as defined in section 3 of that Act''; and
(C) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(f) Additional Clerical Amendment.--The table of contents for this
Act is amended by striking the item relating to section 208 and
inserting the following:
``Sec. 208. Drawback.''.
(g) <<NOTE: 19 USC 81c note.>> Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by subsections (b) through (e) shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a good entered, or
withdrawn from warehouse for consumption, on or after
that date.
[[Page 134 STAT. 70]]
(2) Transition from nafta treatment.--In the case of a good
entered, or withdrawn from warehouse for consumption, before the
date on which the USMCA enters into force--
(A) the amendments made by subsections (b) through
(e) shall not apply with respect to the good; and
(B) the provisions of law amended by such
subsections, as such provisions were in effect on the
day before that date, shall continue to apply on and
after that date with respect to the good.
SEC. 502. RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION.
(a) Clerical Amendment.--Subtitle A of title III of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) Article Impact in Import Relief Cases.--Section 311 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3371) is--
(1) transferred to subtitle A of title III of this Act;
(2) inserted after the heading (as amended by subsection
(a)) of such subtitle;
(3) redesignated as section <<NOTE: 19 USC 4551.>> 301; and
(4) amended--
(A) in the section heading, by striking ``nafta''
and inserting ``usmca'';
(B) in subsection (c), by striking ``section
312(a)'' and inserting ``section 302(a)''; and
(C) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(c) Presidential Action Regarding Imports.--Section 312 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3372) is--
(1) transferred to subtitle A of title III of this Act;
(2) inserted after section 301 (as inserted and redesignated
by subsection (b));
(3) redesignated as section <<NOTE: 19 USC 4552.>> 302; and
(4) amended--
(A) in the section heading, by striking ``nafta''
and inserting ``usmca'';
(B) in subsection (b), in the subsection heading, by
striking ``NAFTA'' and inserting ``USMCA'';
(C) in subsection (c), in the subsection heading, by
striking ``NAFTA'' and inserting ``USMCA''; and
(D) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(d) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle A of title III
and inserting the following:
``Subtitle A--Relief From Injury Caused by Import Competition
``Sec. 301. USMCA article impact in import relief cases under the Trade
Act of 1974.
``Sec. 302. Presidential action regarding USMCA imports.''.
(e) <<NOTE: 19 USC 4551 note.>> Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall--
(A) take effect on the date on which the USMCA
enters into force; and
[[Page 134 STAT. 71]]
(B) apply with respect to an investigation under
chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.) initiated on or after that date.
(2) Transition from nafta.--In the case of an investigation
under chapter 1 of title II of the Trade Act of 1974 initiated
before the date on which the USMCA enters into force--
(A) the transfers, redesignations, and amendments
made by this section shall not apply with respect to the
investigation; and
(B) sections 311 and 312 of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3371 and
3372), as in effect on the day before that date, shall
continue to apply on and after that date with respect to
the investigation.
SEC. 503. TEMPORARY ENTRY.
(a) Clerical Amendment.--Subtitle B of title III of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) Nonimmigrant Traders and Investors.--Section 341 of the North
American Free Trade Agreement Implementation Act (Public Law 103-182;
107 Stat. <<NOTE: 19 USC 3401.>> 2116) is--
(1) <<NOTE: 8 USC 1184.>> transferred to subtitle B of
title III of this Act;
(2) <<NOTE: 8 USC 1184.>> inserted after the heading (as
amended by subsection (a)) of such subtitle;
(3) <<NOTE: 8 USC 1194; 19 USC 4561.>> redesignated as
section 311; and
(4) amended--
(A) by striking subsections (b) and (c);
(B) by striking ``(a)'' and all that follows through
``Upon'' and inserting ``Upon'';
(C) by striking ``the Agreement'' each place it
appears and inserting ``the USMCA'';
(D) by striking ``Annex 1603'' and inserting ``Annex
16-A''; and
(E) by striking ``Annex 1608'' and inserting
``article 16.1''.
(c) Nonimmigrant Professionals.--Section 214 of the Immigration and
Nationality Act (8 U.S.C. 1184) is amended--
(1) in subsection (e)--
(A) by striking paragraphs (1), (3), (4), and (5);
(B) by redesignating paragraphs (2) and (6) as
paragraphs (1) and (2), respectively; and
(C) in paragraph (1), as redesignated by
subparagraph (B)--
(i) by striking ``Annex 1603 of the North
American Free Trade Agreement (in this subsection
referred to as `NAFTA')'' and inserting ``Annex
16-A of the USMCA (as defined in section 3 of the
United States-Mexico-Canada Agreement
Implementation Act)''; and
(ii) by striking the third and fourth
sentences and inserting the following: ``For
purposes of this paragraph, the term `citizen of
Mexico' means `citizen' as defined in article 16.1
of the USMCA.''; and
(2) in subsection (j)(1)--
(A) in the first sentence, by striking ``Annex 1603
of the North American Free Trade Agreement'' and
inserting ``Annex 16-A of the USMCA (as defined in
section 3 of
[[Page 134 STAT. 72]]
the United States-Mexico-Canada Agreement Implementation
Act)'';
(B) in the second sentence, by striking ``article
1603 of such Agreement'' and inserting ``article 16.4 of
the USMCA''; and
(C) in the third sentence, by striking ``Annex 1608
of such Agreement'' and inserting ``article 16.1 of the
USMCA''.
(d) Conforming Amendments.--
(1) Integrated entry and exit data system.--Section
110(c)(1)(B) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1365a(c)(1)(B)) is amended
by striking ``North American Free Trade Agreement'' and
inserting ``USMCA (as defined in section 3 of the United States-
Mexico-Canada Agreement Implementation Act)''.
(2) Enhanced border security and visa entry reform act of
2002.--Section 604 of the Enhanced Border Security and Visa
Entry Reform Act of 2002 (8 U.S.C. 1773) is amended by striking
``North American Free Trade Agreement'' and inserting ``USMCA
(as defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act)''.
(e) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle A of title III
and inserting the following:
``Subtitle B--Temporary Entry of Business Persons
``Sec. 311. Temporary entry.''.
(f) <<NOTE: 8 USC 1184 note.>> Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) <<NOTE: Applicability.>> apply with respect to
a visa issued on or after that date.
(2) Transition from nafta.--In the case of a visa issued
before the date on which the USMCA enters into force--
(A) the transfers, redesignations, and amendments
made by this section shall not apply with respect to the
visa; and
(B) the provisions of law amended by subsections (b)
through (d), as such provisions were in effect on the
day before that date, shall continue to apply on and
after that date with respect to the visa.
SEC. 504. DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING
DUTY CASES.
(a) Clerical Amendment.--Subtitle B of title IV of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) References in Subtitle.--Section 401 of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3431) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after the heading (as amended by subsection (a)) of
such subtitle;
(2) <<NOTE: 19 USC 4581.>> redesignated as section 411; and
(3) amended by striking ``the Agreement'' and inserting
``the USMCA''.
[[Page 134 STAT. 73]]
(c) Organizational and Administrative Provisions.--Section 402 of
the North American Free Trade Agreement Implementation Act (19 U.S.C.
3432) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 411 (as inserted and redesignated by
subsection (b));
(2) redesignated as section <<NOTE: 19 USC 4582.>> 412; and
(3) amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (D), by striking
``in paragraph 1'' and all that follows
and inserting ``in paragraph 1 of Annex
10-B.1 and paragraph 1 of Annex 10-B.3;
and'';
(II) in subparagraph (E), by
striking ``chapter 19'' and inserting
``chapter 10''; and
(III) in the matter following
subparagraph (E), by striking ``in
paragraph 1'' and all that follows
through ``Annex 1904.13'' and inserting
``in paragraph 1 of Annex 10-B.1 and
paragraph 1 of Annex 10-B.3''; and
(ii) in paragraph (2)--
(I) in the paragraph heading, by
striking ``under'' and all that follows
before the period; and
(II) in the text--
(aa) by striking ``paragraph
1 of Annex 1901.2'' and
inserting ``paragraph 1 of Annex
10-B.1'';
(bb) by striking ``chapter
19'' each place it appears and
inserting ``chapter 10''; and
(cc) by striking ``article
1905'' and inserting ``article
10.13'';
(B) in subsection (b)(1)--
(i) by striking ``chapter 19'' each place it
appears and inserting ``chapter 10''; and
(ii) by striking ``article 1905'' and
inserting ``article 10.13'';
(C) in subsection (c)--
(i) in paragraph (1)--
(I) by striking ``chapter 19'' each
place it appears and inserting ``chapter
10''; and
(II) by striking ``article 1905''
and inserting ``article 10.13'';
(ii) in paragraph (2)(B)--
(I) by striking ``chapter 19'' each
place it appears and inserting ``chapter
10''; and
(II) in clause (i)(II), by striking
``article 1905'' and inserting ``article
10.13'';
(iii) in paragraph (3)--
(I) in subparagraph (A)(i), by
striking ``Annex 1901.2'' and inserting
``Annex 10-B.1'';
(II) in subparagraph (A)(ii), by
striking ``under Annex 1904.13'' and all
that follows and inserting ``under Annex
10-B.3 and special committees under
article 10.13.''; and
[[Page 134 STAT. 74]]
(III) in subparagraph (B)(i), by
striking ``chapter 19'' and inserting
``chapter 10''; and
(iv) in paragraph (4)--
(I) in subparagraph (A), by striking
``chapter 19'' and inserting ``chapter
10''; and
(II) in subparagraph (C)(iv)(III),
by striking ``chapter 19'' and inserting
``chapter 10'';
(D) in subsection (d)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking
``in paragraph 1'' and all that follows
and inserting ``in paragraph 1 of Annex
10-B.1 and paragraph 1 of Annex 10-B.3;
or''; and
(II) in subparagraph (B), by
striking ``chapter 19'' and inserting
``chapter 10'';
(ii) in paragraph (2)--
(I) in subparagraph (A)(i), by
striking ``in paragraph 1'' and all that
follows through ``during'' and inserting
``in paragraph 1 of Annex 10-B.1 and
paragraph 1 of Annex 10-B.3 during'';
(II) in subparagraph (A)(ii)--
(aa) by striking ``chapter
19'' and inserting ``chapter
10''; and
(bb) by striking ``the
Agreement'' and inserting ``the
USMCA'';
(III) in subparagraph (A)(iii), by
striking ``NAFTA'' and inserting
``USMCA'';
(IV) in subparagraph (B)(i), by
striking ``in paragraph 1'' and all that
follows and inserting ``in paragraph 1
of Annex 10-B.1 and paragraph 1 of Annex
10-B.3; or''; and
(V) in subparagraph (B)(ii), by
striking ``chapter 19'' and inserting
``chapter 10''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking
``in paragraph 1'' and all that follows
through ``during'' and inserting ``in
paragraph 1 of Annex 10-B.1 and
paragraph 1 of Annex 10-B.3 during'';
and
(II) in subparagraph (B), by
striking ``chapter 19'' and inserting
``chapter 10'';
(E) in subsection (e), in the matter preceding
paragraph (1)--
(i) by striking ``the Agreement'' and
inserting ``the USMCA'';
(ii) by striking ``between the United States''
and all that follows through ``NAFTA country'';
and
(iii) by striking ``January 3, 1994'' and
inserting ``January 3, 2020'';
(F) in subsection (f), by striking ``chapter 19''
and inserting ``chapter 10'';
(G) in subsection (g), by striking ``chapter 19''
and inserting ``chapter 10''; and
(H) in subsection (h), by striking ``chapter 19''
and inserting ``chapter 10''.
(d) Testimony and Production of Papers.--Section 403 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3433) is--
[[Page 134 STAT. 75]]
(1) transferred to subtitle B of title IV of this Act and
inserted after section 412 (as inserted and redesignated by
subsection (c));
(2) redesignated as <<NOTE: 19 USC 4583.>> section 413; and
(3) amended in subsection (a), in the matter preceding
paragraph (1), by striking ``under paragraph 13'' and all that
follows through ``the committee--'' and inserting ``under
paragraph 13 of article 10.12, and the allegations before the
committee include a matter referred to in paragraph 13(a)(i) of
article 10.12, for the purposes of carrying out its functions
and duties under Annex 10-B.3, the committee--''.
(e) Requests for Review of Determinations.--Section 404 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3434) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 413 (as inserted and redesignated by
subsection (d));
(2) redesignated <<NOTE: 19 USC 4584.>> as section 414; and
(3) amended--
(A) in the section heading, by striking ``of nafta
countries'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``article
1911'' and all that follows and inserting
``article 10.8, of a USMCA country.''; and
(ii) in paragraph (2), by striking ``article
1908'' and inserting ``article 10.16'';
(C) in subsection (b), by striking ``article 1904''
and inserting ``article 10.12''; and
(D) in subsection (c), by striking ``article 1904''
each place it appears and inserting ``article 10.12''.
(f) Rules of Procedure for Panels and Committees.--Section 405 of
the North American Free Trade Agreement Implementation Act (19 U.S.C.
3435) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 414 (as inserted and redesignated by
subsection (e));
(2) redesignated <<NOTE: 19 USC 4585.>> as section 415; and
(3) amended--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``article 1904'' and
inserting ``article 10.12'';
(B) in subsection (b), by striking ``Annex 1904.13''
and inserting ``Annex 10-B.3''; and
(C) in subsection (c), by striking ``Annex 1905.6''
and inserting ``Annex 10-B.4''.
(g) Subsidy Negotiations.--Section 406 of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3436) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 415 (as inserted and redesignated by
subsection (f));
(2) redesignated <<NOTE: 19 USC 4586.>> as section 416; and
(3) amended, in the matter preceding paragraph (1), by
striking ``NAFTA country'' and inserting ``USMCA country''.
(h) Identification of Industries Facing Subsidized Imports.--Section
407 of the North American Free Trade Agreement Implementation Act (19
U.S.C. 3437) is--
[[Page 134 STAT. 76]]
(1) transferred to subtitle B of title IV of this Act and
inserted after section 416 (as inserted and redesignated by
subsection (g));
(2) redesignated as <<NOTE: 19 USC 4587.>> section 417; and
(3) amended--
(A) in subsection (a)(1)(A)--
(i) by striking ``the Agreement'' and
inserting ``the USMCA''; and
(ii) by striking ``NAFTA country'' and
inserting ``USMCA country'';
(B) in subsection (c), in the matter following
paragraph (3), by striking ``NAFTA countries'' and
inserting ``USMCA countries''; and
(C) in subsection (d)(3), by striking ``the
Agreement'' and inserting ``the USMCA''.
(i) Treatment of Amendments to Law.--Section 408 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3438) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 417 (as inserted and redesignated by
subsection (h));
(2) redesignated <<NOTE: 19 USC 4588.>> as section 418; and
(3) amended--
(A) in the matter preceding paragraph (1), by
striking ``the Agreement'' and all that follows through
``United States'' and inserting ``the USMCA''; and
(B) in the flush text, by striking ``NAFTA country''
and inserting ``USMCA country''.
(j) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle B of title IV
and inserting the following:
``Subtitle B--Dispute Settlement
``Sec. 411. References in subtitle.
``Sec. 412. Organizational and administrative provisions.
``Sec. 413. Testimony and production of papers in extraordinary
challenges.
``Sec. 414. Requests for review of determination by competent
investigating authorities.
``Sec. 415. Rules of procedure for panels and committees.
``Sec. 416. Subsidy negotiations.
``Sec. 417. Identification of industries facing subsidized imports.
``Sec. 418. Treatment of amendments to antidumping and countervailing
duty law.''.
(k) <<NOTE: 19 USC 4581 note.>> Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall take effect on the date on which the
USMCA enters into force, but shall not apply--
(A) to any final determination described in
paragraph (1)(B) or clause (i), (ii), or (iii) of
paragraph (2)(B) of section 516A(a) of the Tariff Act of
1930 (19 U.S.C. 1516a(a)) notice of which is published
in the Federal Register before such date, or to a
determination described in paragraph (2)(B)(vi) of that
section notice of which is received by the Government of
Canada or Mexico before such date; and
(B) to any binational panel review under NAFTA, or
any extraordinary challenge arising out of any such
review, that was commenced before such date.
(2) Transition from nafta.--The transfers, redesignations,
and amendments made by this section shall not apply,
[[Page 134 STAT. 77]]
and the provisions of title IV of the North American Free Trade
Agreement Implementation Act, as in effect on the day before the
date on which the USMCA enters into force, shall continue to
apply on and after that date with respect--
(A) to any final determination described in
paragraph (1)(B) or clause (i), (ii), or (iii) of
paragraph (2)(B) of section 516A(a) of the Tariff Act of
1930 (19 U.S.C. 1516a(a)) notice of which is published
in the Federal Register before such date, or to a
determination described in paragraph (2)(B)(vi) of that
section notice of which is received by the Government of
Canada or Mexico before the date on which the USMCA
enters into force; and
(B) to any binational panel review under NAFTA, or
any extraordinary challenge arising out of any such
review, that was commenced before the date on which the
USMCA enters into force.
SEC. 505. GOVERNMENT PROCUREMENT.
(a) General Authority To Modify Discriminatory Purchasing
Requirements.--Section 301 of the Trade Agreements Act of 1979 (19
U.S.C. 2511) is amended--
(1) in subsection (b)(1), by striking ``the North American
Free Trade Agreement'' and inserting ``the USMCA (as defined in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act)''; and
(2) in subsection (e)--
(A) by striking ``Annex 1001.1a-2 of the North
American Free Trade Agreement'' and inserting ``Annex
13-A of the USMCA (as defined in section 3 of the United
States-Mexico-Canada Agreement Implementation Act)'';
and
(B) by striking ``chapter 10 of such Agreement'' and
inserting ``chapter 13 of the USMCA''.
(b) Definitions.--Section 308(4)(A)(ii) of the Trade Agreements Act
of 1979 (19 U.S.C. 2518(4)(A)(ii)) is amended--
(1) by striking ``a party to the North American Free Trade
Agreement,'' and inserting ``Mexico, as a party to the USMCA (as
defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act),''; and
(2) by striking ``the North American Free Trade Agreement
for'' and inserting ``the USMCA for''.
(c) <<NOTE: 19 USC 2511 note.>> Effective Date.--
(1) In general.--The amendments made by subsections (a) and
(b) shall--
(A) take effect on the date on which the USMCA
enters into force; and
(B) apply with respect to a procurement on or after
that date.
(2) Transition from nafta treatment.--In the case of a
procurement before the date on which the USMCA enters into
force--
(A) the amendments made by subsections (a) and (b)
to sections 301 and 308 of the Trade Agreements Act of
1979 (19 U.S.C. 2511 and 2518) shall not apply with
respect to the contract; and
[[Page 134 STAT. 78]]
(B) sections 301 and 308 of such Act, as in effect
on the day before that date, shall continue to apply on
and after that date with respect to the contract.
SEC. 506. ACTIONS AFFECTING UNITED STATES CULTURAL INDUSTRIES.
(a) In General.--Section 182(f) of the Trade Act of 1974 (19 U.S.C.
2242(f)) is amended--
(1) in paragraph (1)(C), by striking ``article 2106 of the
North American Free Trade Agreement'' and inserting ``article
32.6 of the USMCA (as defined in section 3 of the United States-
Mexico-Canada Agreement Implementation Act)''; and
(2) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``article 2106 of the North American Free Trade
Agreement'' and inserting ``article 32.6 of the USMCA''.
(b) <<NOTE: 19 USC 2242 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect on the date on which the USMCA
enters into force.
SEC. 507. REGULATORY TREATMENT OF URANIUM PURCHASES.
(a) In General.--Section 1017(c) of the Energy Policy Act of 1992
(42 U.S.C. 2296b-6(c)) is amended by striking ``North American Free
Trade Agreement'' and inserting ``USMCA (as defined in section 3 of the
United States-Mexico-Canada Agreement Implementation Act)''.
(b) <<NOTE: 42 USC 2296b-6 note.>> Effective Date.--The amendment
made by subsection (a) shall take effect on the date on which the USMCA
enters into force.
SEC. 508. REPORT ON AMENDMENTS TO EXISTING LAW.
Not later than 180 days after the date of the enactment of this Act,
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 a report setting forth a proposal for technical and
conforming amendments to the laws under the jurisdiction of such
committees, and other laws, necessary to fully carry out the provisions
of, and amendments made by, this Act.
TITLE VI--TRANSITION TO AND EXTENSION OF USMCA
Subtitle A--Transitional Provisions
* SEC. 601. REPEAL OF NORTH AMERICAN FREE TRADE AGREEMENT
IMPLEMENTATION ACT.
The North American Free Trade Agreement Implementation Act (Public
Law 103-182; 19 U.S.C. 3301 et seq.) is repealed, effective on the date
on which the USMCA enters into force.
SEC. 602. CONTINUED SUSPENSION OF THE UNITED STATES-CANADA FREE-
TRADE AGREEMENT.
Section 501(c)(3) of the United States-Canada Free-Trade Agreement
Implementation Act of 1988 (Public Law 100-449; 19 U.S.C. 2112 note) is
amended--
(1) in the paragraph heading, by striking ``nafta'' and
inserting ``usmca''; and
__________
* Note: Classifications for Section 601: 15 USC 1052 note; 19 USC
58c notes, 1304 note, 1313 note, 1499 note, 1593a note, 1677l, 2101
note, 2112 note, 2271 note, 2511 note, 2707 note, 3301 and note, 3311
and note, 3312-3317, 3331 and note, 3332-3335, 3351 and note, 3352-3358,
3381, 3382, 3391, 3401 note, 3411, 3421, 3431 note, 3451, 3461 and note,
3462, 3463, 3471-3473; 22 USC 290m--290m-5, 290m-7; 26 USC 3306 notes,
6103 notes, 6302 notes, 9505 note; 28 USC 1581 note.
---------------------------------------------------------------------------
[[Page 134 STAT. 79]]
(2) in the matter preceding subparagraph (A), by striking
``between them of the North American Free Trade Agreement'' and
inserting ``of the USMCA (as defined in section 3 of the United
States-Mexico-Canada Agreement Implementation Act)''.
Subtitle B--Joint Reviews Regarding Extension of USMCA
SEC. <<NOTE: 19 USC 4611.>> 611. PARTICIPATION IN JOINT REVIEWS
WITH CANADA AND MEXICO REGARDING EXTENSION
OF THE TERM OF THE USMCA AND OTHER ACTION
REGARDING THE USMCA.
(a) <<NOTE: President. Consultation.>> In General.--Pursuant to the
requirements of this section, the President shall consult with the
appropriate congressional committees and stakeholders before each joint
review, including consultation with respect to--
(1) any recommendation for action to be proposed at the
review; and
(2) the decision whether or not to confirm that the United
States wishes to extend the USMCA.
(b) Consultations With Congress and Stakeholders.--
(1) Publication and public hearing.--At least 270 days
before a joint review commences, the Trade Representative shall
publish in the Federal Register a notice regarding the joint
review and shall, as soon as possible following such
publication, provide opportunity for the presentation of views
relating to the operation of the USMCA, including a public
hearing.
(2) Report to congress.--At least 180 days before a 6-year
joint review under article 34.7 of the USMCA commences, the
Trade Representative shall report to the appropriate
congressional committees regarding--
(A) <<NOTE: Assessment.>> the assessment of the
Trade Representative with respect to the operation of
the USMCA;
(B) <<NOTE: Recommenda- tions.>> the precise
recommendation for action to be proposed at the review
and the position of the United States with respect to
whether to extend the term of the USMCA;
(C) what, if any, prior efforts have been made to
resolve any concern that underlies that recommendation
or position; and
(D) the views of the advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155) regarding that recommendation or position.
(c) Subsequent Action To Address Lack of Agreement on Term
Extension.--
(1) <<NOTE: Time period. Reports.>> In general.--If, as
part of a joint review, any USMCA country does not confirm that
the country wishes to extend the term of the USMCA under article
34.7.3 of the USMCA, at least 70 days before any subsequent
annual joint review meeting conducted as required under article
34.7 of the USMCA, the Trade Representative shall report to the
appropriate congressional committees regarding--
(A) any reason offered by a USMCA country regarding
why the country is unable to agree to extend the term of
the USMCA;
[[Page 134 STAT. 80]]
(B) the progress that has been made in efforts to
achieve resolution of the concerns of that country;
(C) any proposed action that the Trade
Representative intends to raise during the meeting; and
(D) the views of the advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155) regarding the reasons described in subparagraph
(A) and any proposed action under subparagraph (C).
(2) Additional information.--The Trade Representative shall
also provide detailed and timely information in response to any
questions posed by the appropriate congressional committees with
respect to any meeting described in paragraph (1), including by
submitting to those committees copies of any proposed text that
the Trade Representative plans to submit to the other parties to
the meeting.
(d) Congressional Engagement After Joint Review.--
(1) <<NOTE: Deadline. Briefing.>> In general.--Not later
than 20 days after the USMCA countries have met for a joint
review, the Trade Representative shall brief the appropriate
congressional committees regarding the positions expressed by
the countries during the joint review and what, if any, actions
were agreed to by the countries.
(2) Continued engagement.--After a joint review, the Trade
Representative shall keep the appropriate congressional
committees timely apprised of any developments arising out of or
related to the review.
(e) Definitions.--In this section:
(1) Joint review.--The term ``joint review'' means a review
conducted under the process provided for in article 34.7 of the
USMCA relating to extension of the term of the USMCA.
(2) USMCA country.--The term ``USMCA country'' has the
meaning given that term in section 202(a).
Subtitle C--Termination of USMCA
SEC. <<NOTE: 19 USC 4621.>> 621. TERMINATION OF USMCA.
(a) Termination of USMCA Country Status.--During any period in which
a country ceases to be a USMCA country, this Act (other than this
subsection and title IX) and the amendments made by this Act shall cease
to have effect with respect to that country.
(b) Termination of USMCA.--On the date on which the USMCA ceases to
be in force with respect to the United States, this Act and the
amendments made by this Act (other than this subsection and title IX)
shall cease to have effect.
TITLE VII--LABOR MONITORING AND ENFORCEMENT
SEC. <<NOTE: 19 USC 4631.>> 701. DEFINITIONS.
In this title:
(1) Labor attache.--The term ``labor attache'' means an
individual hired under subtitle B.
(2) Labor obligations.--The term ``labor obligations'' means
the obligations under chapter 23 of the USMCA (relating to
labor).
[[Page 134 STAT. 81]]
(3) Mexico's labor reform.--The term ``Mexico's labor
reform'' means the legislation on labor reform enacted by Mexico
on May 1, 2019.
Subtitle A--Interagency Labor Committee for Monitoring and Enforcement
SEC. <<NOTE: 19 USC 4641.>> 711. INTERAGENCY LABOR COMMITTEE FOR
MONITORING AND ENFORCEMENT.
(a) <<NOTE: Deadline. President. Coordination.>> Establishment.--
Not later than 90 days after the date of the enactment of this Act, the
President shall establish an Interagency Labor Committee for Monitoring
and Enforcement (in this title referred to as the ``Interagency Labor
Committee''), to coordinate United States efforts with respect to each
USMCA country--
(1) to monitor the implementation and maintenance of the
labor obligations;
(2) to monitor the implementation and maintenance of
Mexico's labor reform; and
(3) to request enforcement actions with respect to a USMCA
country that is not in compliance with such labor obligations.
(b) Membership.--The Interagency Labor Committee shall--
(1) be co-chaired by the Trade Representative and the
Secretary of Labor; and
(2) include representatives of such other Federal
departments or agencies with relevant expertise as the President
determines appropriate.
(c) <<NOTE: Time periods.>> Meetings.--The Interagency Labor
Committee shall meet at least once every 90 days during the 5-year
period beginning on the date of the enactment of this Act, and at least
once every 180 days thereafter for 5 years.
(d) Information Sharing.--Notwithstanding any other provision of
law, the members of the Interagency Labor Committee may exchange
information for purposes of carrying out this title.
SEC. <<NOTE: 19 USC 4642.>> 712. DUTIES.
The duties of the Interagency Labor Committee shall include the
following:
(1) <<NOTE: Coordination.>> Coordinating the activities of
departments and agencies of the Committee in monitoring
implementation of and compliance with labor obligations,
including by--
(A) requesting and reviewing relevant information
from the governments of USMCA countries and from the
public;
(B) coordinating visits to Mexico as necessary to
assess implementation of Mexico's labor reform and
compliance with the labor obligations of Mexico;
(C) receiving and reviewing quarterly assessments
from the labor attaches with respect to the
implementation of and compliance with Mexico's labor
reform; and
(D) coordinating with the Secretary of Treasury with
respect to support relating to labor issues provided to
Mexico by the Inter-American Development Bank.
(2) Establishing an ongoing dialogue with appropriate
officials of the Government of Mexico regarding the
implementation of Mexico's labor reform and compliance with its
labor obligations.
[[Page 134 STAT. 82]]
(3) <<NOTE: Coordination.>> Coordinating with other
institutions and governments with respect to support relating to
labor issues, such as the International Labour Organization and
the Government of Canada.
(4) Identifying priority issues for capacity-building
activities in Mexico to be funded by the United States, drawing
primarily on the expertise of the Department of Labor.
(5) <<NOTE: Time period. Consultation.>> Meeting, at least
biannually during the 5-year period beginning on the date of the
enactment of this Act and at least annually for 5 years
thereafter, with the Labor Advisory Committee for Trade
Negotiations and Trade Policy established under section
135(c)(1) of the Trade Act of 1974 (19 U.S.C. 2155(c)(1)) (or
any successor advisory committee) to consult and provide
opportunities for input with respect to--
(A) the implementation of Mexico's labor reform;
(B) labor capacity-building activities in Mexico
funded by the United States;
(C) labor monitoring efforts;
(D) labor enforcement priorities; and
(E) other relevant issues.
(6) <<NOTE: Recommenda- tions.>> Based on the assessments
required by section 714, making recommendations relating to
dispute settlement actions to the Trade Representative, in
accordance with section 715.
(7) <<NOTE: Recommenda- tions.>> Based on reports provided
by the Forced Labor Enforcement Task Force under section 743,
developing recommendations for appropriate enforcement actions
by the Trade Representative.
(8) <<NOTE: Reviews.>> Reviewing reports submitted by the
labor experts appointed in accordance with Annex 31-A of the
USMCA, with respect to the functioning of that Annex.
(9) <<NOTE: Reviews.>> Reviewing reports submitted by the
Independent Mexico Labor Expert Board under section 734.
SEC. <<NOTE: 19 USC 4643.>> 713. ENFORCEMENT PRIORITIES.
The <<NOTE: Reviews.>> Interagency Labor Committee shall--
(1) review the list of priority sectors under Annex 31-A of
the USMCA and suggest to USTR additional sectors for review by
the USMCA countries as appropriate;
(2) <<NOTE: List.>> establish and annually update a list of
priority subsectors within such priority sectors to be the focus
of the enforcement efforts of the Committee, the first of which
shall consist of--
(A) auto assembly;
(B) auto parts;
(C) aerospace;
(D) industrial bakeries;
(E) electronics;
(F) call centers;
(G) mining; and
(H) steel and aluminum; and
(3) review priority facilities within such priority
subsectors for monitoring and enforcement.
SEC. <<NOTE: 19 USC 4644.>> 714. ASSESSMENTS.
(a) <<NOTE: Time period.>> Ongoing Assessments.--For the 10-year
period beginning on the date of the enactment of this Act, except as
provided in subsection (b), the Interagency Labor Committee shall assess
on
[[Page 134 STAT. 83]]
a biannual basis the extent to which Mexico is in compliance with its
obligations under Annex 23-A of the USMCA.
(b) <<NOTE: Time periods.>> Consultation Relating to Annual
Assessment.--On or after the date that is 5 years after the date of the
enactment of this Act, the Interagency Labor Committee may consult with
the appropriate congressional committees with respect to the frequency
of the assessment required under subsection (a) and, with the approval
of both such committees, may conduct such assessment on an annual basis
for the following 5 years.
(c) Matters To Be Included.--The assessment required under
subsection (a) shall also include each of the following:
(1) Whether Mexico is providing adequate funding to
implement and enforce Mexico's labor reform, including
specifically whether Mexico has provided funding consistent with
commitments made to contribute the following amounts for the
labor reform implementation budget:
(A) $176,000,000 for 2021.
(B) $325,000,000 for 2022.
(C) $328,000,000 for 2023.
(2) The extent to which any legal challenges to Mexico's
labor reform have succeeded in that court system.
(3) The extent to which Mexico has implemented the federal
and state labor courts, registration entity, and federal and
state conciliation centers consistent with the timeline set
forth for Mexico's labor reform, in the September 2019 policy
statements by the Government of Mexico on a national strategy
for implementation of the labor justice system, and in
subsequent policy statements in accordance with Mexico's labor
reform.
SEC. <<NOTE: 19 USC 4645.>> 715. RECOMMENDATION FOR ENFORCEMENT
ACTION.
(a) <<NOTE: Determination.>> Recommendation To Initiate.--If the
Interagency Labor Committee determines, pursuant to an assessment under
section 714, as a result of monitoring activities described in section
712(1), or pursuant to a report of the Independent Mexico Labor Expert
Board that a USMCA country has failed to meets its labor obligations,
including with respect to obligations under Annex 23-A of the USMCA, the
Committee shall recommend that the Trade Representative initiate
enforcement actions under--
(1) article 23.13 or 23.17 of the USMCA (relating to
cooperative labor dialogue and labor consultations);
(2) articles 31.4 and 31.6 of the USMCA (relating to dispute
settlement consultations); or
(3) Annex 31-A of the USMCA (relating to the rapid response
labor mechanism).
(b) <<NOTE: Deadline.>> Trade Representative Determinations.--Not
later than 60 days after the date on which the Trade Representative
receives a recommendation pursuant to subsection (a), the Trade
Representative shall--
(1) determine whether to initiate an enforcement action; and
(2) <<NOTE: Reports.>> if such determination is negative,
submit to the appropriate congressional committees a report on
the reasons for such negative determination.
SEC. <<NOTE: 19 USC 4646.>> 716. PETITION PROCESS.
(a) In General.--The Interagency Labor Committee shall establish
procedures for submissions by the public of information
[[Page 134 STAT. 84]]
with respect to potential failures to implement the labor obligations of
a USMCA country.
(b) <<NOTE: Determinations.>> Facility-Specific Petitions.--With
respect to information submitted in accordance with the procedures
established under subsection (a) accompanying a petition relating to a
denial of rights at a covered facility, as such terms are defined for
purposes of Annex 31-A of the USMCA:
(1) <<NOTE: Review. Deadline.>> The Interagency Labor
Committee shall review such information within 30 days of
submission and shall determine whether there is sufficient,
credible evidence of a denial of rights (as so defined) enabling
the good-faith invocation of enforcement mechanisms.
(2) <<NOTE: Certification.>> If the Committee reaches a
negative determination under paragraph (1), the Committee shall
certify such determination to the appropriate congressional
committees and the petitioner.
(3) If the Committee reaches an affirmative determination
under paragraph (1), the Trade Representative shall submit a
request for review, in accordance with article 31-A.4 of such
Annex, with respect to the covered facility and shall inform the
petitioner and the appropriate congressional committees of the
submission of such request.
(4) <<NOTE: Deadline.>> Not later than 60 days after the
date of an affirmative determination under paragraph (1), the
Trade Representative shall--
(A) determine whether to request the establishment
of a rapid response labor panel in accordance with such
Annex; and
(B) <<NOTE: Certification.>> if such determination
is negative, certify such determination to the
appropriate congressional committees in conjunction with
the reasons for such determination and the details of
any agreed-upon remediation plan.
(c) <<NOTE: Reviews. Deadlines.>> Other Petitions.--With respect to
information submitted in accordance with the procedures established
under subsection (a) accompanying a petition relating to any other
violation of the labor obligations of a USMCA country:
(1) <<NOTE: Determination.>> The Interagency Labor
Committee shall review such information not later than 20 days
after the date of the submission and shall determine whether the
information warrants further review.
(2) If the Committee reaches an affirmative determination
under paragraph (1), such further review shall focus exclusively
on determining, not later than 60 days after the date of such
submission, whether there is sufficient, credible evidence that
the USMCA country is in violation of its labor obligations, for
purposes of initiating enforcement action under chapter 23 or
chapter 31 of the USMCA.
(3) If the Committee reaches an affirmative determination
under paragraph (2), the Trade Representative shall--
(A) not later than 60 days after the date of the
determination of the Committee, initiate appropriate
enforcement action under such chapter 23 or chapter 31;
or
(B) <<NOTE: Notification. Time period.>> submit to
the appropriate congressional committees a notification
including the reasons for which action was not initiated
within such 60-day period.
[[Page 134 STAT. 85]]
SEC. <<NOTE: 19 USC 4647.>> 717. HOTLINE.
The Interagency Labor Committee shall establish a web-based hotline,
monitored by the Department of Labor, to receive confidential
information regarding labor issues among USMCA countries directly from
interested parties, including Mexican workers.
SEC. <<NOTE: 19 USC 4648.>> 718. REPORTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter for 10 years except
as provided in subsection (b), the Interagency Labor Committee shall
submit to the appropriate congressional committees a report that
includes--
(1) a description of Committee staffing and capacity
building activities with Mexico;
(2) information regarding the budget resources for Mexico's
labor reform and the deadlines in the September 2019 policy
statements by the Government of Mexico on a national strategy
for implementation of the labor justice system and in subsequent
policy statements in accordance with Mexico's labor reform;
(3) <<NOTE: Summary.>> a summary of petitions filed in
accordance with section 716 and the use of the rapid response
labor mechanism under Annex 31-A of the USMCA;
(4) the results of the most recent assessment conducted
under section 714; and
(5) if, with respect to any report of the Independent Mexico
Labor Expert Board submitted under section 734 that includes a
determination described in paragraph (2) of such section, the
Interagency Labor Committee does not concur with such
determination, an explanation of the reasons for not concurring
in such determination and a commitment to provide an oral
briefing with respect to such explanation upon request.
(b) <<NOTE: Effective date.>> Consultation Relating to Annual
Assessment.--On or after the date that is 5 years after the date of the
enactment of this Act, the Trade Representative and the Secretary of
Labor may consult with the appropriate congressional committees with
respect to the frequency of the reports required under subsection (a)
and, with the approval of both such committees, may submit such report
on an annual basis for the following 5 years.
(c) <<NOTE: Deadline.>> Five-Year Assessment.--Not later than the
date that is 5 years after the date of the establishment of the
Interagency Labor Committee pursuant to section 711(a), the Committee
shall jointly submit to the appropriate congressional committees--
(1) a comprehensive assessment of the implementation of
Mexico's labor reform, including with respect to--
(A) whether Mexico has reviewed and legitimized all
existing collective bargaining agreements in Mexico;
(B) whether Mexico has addressed the pre-existing
legal or administrative labor disputes;
(C) whether Mexico has established the Federal
Center for Conciliation and Labor Registration, and an
assessment of that Center's operation;
(D) whether Mexico has established the federal labor
courts, and an assessment of their operation; and
(E) whether Mexico has established the state
conciliation centers and labor courts in all states and
an assessment of their operation; and
[[Page 134 STAT. 86]]
(2) <<NOTE: Strategic plan. Recommenda- tions.>> a
strategic plan and recommendations for actions to address areas
of concern relating to the implementation of Mexico's labor
reform, for purposes of the joint review conducted pursuant to
article 34.7 of the USMCA on the sixth anniversary of the entry
into force of the USMCA.
SEC. <<NOTE: 19 USC 4649.>> 719. CONSULTATIONS ON APPOINTMENT AND
FUNDING OF RAPID RESPONSE LABOR PANELISTS.
(a) In General.--The Interagency Labor Committee shall consult with
the Labor Advisory Committee established under section 135(c)(1) of the
Trade Act of 1974 (19 U.S.C. 2155(c)(1)) and the Advisory Committee for
Trade Policy and Negotiations established under section 135(b) of such
Act (or successor advisory committees) and the appropriate congressional
committees with respect to the selection and appointment of candidates
for the rapid response labor panelists described in Annex 31-A of the
USMCA.
(b) Funding.--The United States, in consultation with Mexico, shall
provide adequate funding for rapid response labor panelists to carry out
the responsibilities under the USMCA promptly and fully.
Subtitle B--Mexico Labor Attaches
SEC. <<NOTE: 19 USC 4661.>> 721. ESTABLISHMENT.
The Secretary of Labor shall--
(1) hire and fix the compensation of up to 5 additional
full-time officers or employees of the Department of Labor; and
(2) detail or assign such officers or employees to the
United States Embassy or a United States Consulate in Mexico to
carry out the duties described in section 722.
SEC. <<NOTE: 19 USC 4662.>> 722. DUTIES.
The duties described in this section are the following:
(1) Assisting the Interagency Labor Committee to monitor and
enforce the labor obligations of Mexico.
(2) <<NOTE: Reports.>> Submitting to the Interagency Labor
Committee on a quarterly basis reports on the efforts undertaken
by Mexico to comply with its labor obligations.
SEC. <<NOTE: 19 USC 4663.>> 723. STATUS.
Any officer or employee, while detailed or assigned under this
subtitle, shall be considered, for the purpose of preserving their
allowances, privileges, rights, seniority, and other benefits as such,
an officer or employee of the United States Government and of the agency
of the United States Government from which detailed or assigned, and
shall continue to receive compensation, allowances, and benefits from
program funds appropriated to that agency or made available to that
agency for purposes related to the activities of the detail or
assignment, in accordance with authorities related to their employment
status and agency policies.
[[Page 134 STAT. 87]]
Subtitle C--Independent Mexico Labor Expert Board
SEC. <<NOTE: 19 USC 4671.>> 731. ESTABLISHMENT.
There is hereby established a board, to be known as the
``Independent Mexico Labor Expert Board'', to be responsible for
monitoring and evaluating the implementation of Mexico's labor reform
and compliance with its labor obligations. The Board shall also advise
the Interagency Labor Committee with respect to capacity-building
activities needed to support such implementation and compliance.
SEC. <<NOTE: 19 USC 4672.>> 732. MEMBERSHIP; TERM.
(a) <<NOTE: Appointments. Consultations.>> Membership.--The Board
shall be composed of 12 members who shall be appointed as follows:
(1) Four members to be appointed by the Labor Advisory
Committee established under section 135(c)(1) of the Trade Act
of 1974 (19 U.S.C. 2155(c)(1)) (or successor advisory
committee).
(2) Two members appointed by the Speaker of the House of
Representatives, in consultation with the Chair of the Committee
on Ways and Means of the House of Representatives.
(3) Two members appointed by the president pro tempore of
the Senate from among individuals recommended by the majority
leader of the Senate and in consultation with the Chair of the
Committee on Finance of the Senate.
(4) Two members appointed by the minority leader of the
House of Representatives, in consultation with the Ranking
Member of the Committee on Ways and Means of the House of
Representatives.
(5) Two members appointed by the President pro tempore of
the Senate from among individuals recommended by the minority
leader of the Senate and in consultation with the Ranking Member
of the Committee on Finance of the Senate.
(b) Term.--Except as provided in subsection (c), members of the
Board shall serve for a term of 6 years.
(c) Extension of Term.--If the Board determines, at the end of the
6-year period beginning on the date of the appointment of the last
member appointed in accordance with subsection (a), that Mexico is not
fully in compliance with its labor obligations, a majority of the
members of the Board may determine to extend its term for 4 additional
years. A new Board shall be appointed in accordance with subsection (a)
and shall serve for a single term of 4 years.
SEC. <<NOTE: 19 USC 4673.>> 733. FUNDING.
The United States shall provide necessary funding to support the
work of the Board, including with respect to translation services and
personnel support.
SEC. <<NOTE: 19 USC 4674.>> 734. REPORTS.
For the 6-year period beginning on the date of the enactment of this
Act, and for an additional 4 years if the term of the Board is extended
in accordance with section 732(c), the Board shall submit to appropriate
congressional committees and to the Interagency Labor Committee an
annual report that--
[[Page 134 STAT. 88]]
(1) <<NOTE: Assessment.>> contains an assessment of--
(A) the efforts of Mexico to implement Mexico's
labor reform; and
(B) the manner and extent to which labor laws are
generally enforced in Mexico; and
(2) <<NOTE: Determination.>> may include a determination
that Mexico is not in compliance with its labor obligations.
Subtitle D--Forced Labor
SEC. <<NOTE: 19 USC 4681.>> 741. FORCED LABOR ENFORCEMENT TASK
FORCE.
(a) <<NOTE: Deadline. President.>> Establishment.--Not later than
90 days after the date of the enactment of this Act, the President shall
establish a Forced Labor Enforcement Task Force to monitor United States
enforcement of the prohibition under section 307 of the Tariff Act of
1930 (19 U.S.C. 1307).
(b) Members; Meetings.--
(1) Members.--The Task Force shall be chaired by the
Secretary of Homeland Security and shall be comprised of
representatives from such other agencies with relevant
expertise, including the Office of the United States Trade
Representative and the Department of Labor, as the President
determines appropriate.
(2) <<NOTE: Time period.>> Meetings.--The Task Force shall
meet on a quarterly basis regarding active Withhold and Release
Orders, ongoing investigations, petitions received, and
enforcement priorities, and other relevant issues with respect
to enforcing the prohibition under section 307 of the Tariff
Act.
SEC. <<NOTE: 19 USC 4682.>> 742. TIMELINE REQUIRED.
(a) <<NOTE: Deadline.>> In General.--Not later than 90 days after
the establishment of the Forced Labor Enforcement Task Force pursuant to
section 741(a), the Task Force shall establish timelines for responding
to petitions submitted to the Commissioner of U.S. Customs and Border
Protection alleging that goods are being imported by or with child or
forced labor.
(b) Consultation Required.--In establishing the timelines during
such 90-day period, the Task Force shall consult with the appropriate
congressional committees.
(c) Report.--The Task Force shall timely submit to the appropriate
congressional committees a report that contains the timelines
established pursuant to subsection (a) and shall make such report
publicly available.
SEC. <<NOTE: 19 USC 4683.>> 743. REPORTS REQUIRED.
The Forced Labor Enforcement Task Force shall submit to appropriate
congressional committees a biannual report that includes the following:
(1) The enforcement activities and priorities of the
Department of Homeland Security with respect to enforcing the
prohibition under section 307 of the Tariff Act of 1930 (19
U.S.C. 1307).
(2) The number of instances in which merchandise was denied
entry pursuant to such prohibition during the preceding 180-day
period.
(3) A description of the merchandise so denied entry.
[[Page 134 STAT. 89]]
(4) <<NOTE: Enforcement plan.>> An enforcement plan
regarding goods included in the most recent ``Findings on the
Worst Forms of Child Labor'' report submitted in accordance with
section 504 of the Trade Act of 1974 (19 U.S.C. 2464) and ``List
of Goods Produced by Child Labor or Forced Labor'' submitted in
accordance with section 105(b)(2)(C) of the Trafficking Victims
Protection Reauthorization Act of 2005 (22 U.S.C.
7112(b)(2)(C)).
(5) Such other information as the Forced Labor Enforcement
Task Force considers appropriate with respect to monitoring and
enforcing compliance with section 307 of the Tariff Act of 1930
(19 U.S.C. 1307).
SEC. <<NOTE: 19 USC 4684.>> 744. DUTIES RELATED TO MEXICO.
The Task Force shall--
(1) <<NOTE: Consultation. Enforcement plan.>> develop, in
consultation with the appropriate congressional committees, an
enforcement plan regarding goods produced by or with forced
labor in Mexico; and
(2) <<NOTE: Reports.>> report to the Interagency Labor
Committee with respect to any concerns relating to the
enforcement of the prohibition under section 307 of the Tariff
Act with respect to Mexico, including any allegations that may
be filed with respect to forced labor in Mexico.
Subtitle E--Enforcement Under Rapid Response Labor Mechanism
SEC. <<NOTE: 19 USC 4691.>> 751. TRANSMISSION OF REPORTS.
Each report issued by a rapid response labor panel constituted in
accordance with Annex 31-A of the USMCA shall be immediately submitted
to the appropriate congressional committees, the Labor Advisory
Committee established under section 135(c)(1) of the Trade Act of 1974
(19 U.S.C. 2155(c)(1)) (or successor advisory committee), and, as
appropriate, the petitioner submitting information pursuant to section
716. <<NOTE: Public information.>> The Trade Representative shall also
make each such report publicly available in a timely manner.
SEC. <<NOTE: 19 USC 4692.>> 752. SUSPENSION OF LIQUIDATION.
(a) <<NOTE: Notification.>> In General.--If the United States files
a request pursuant to article 31-A.4.2 of Annex 31-A of the USMCA, the
Trade Representative may direct the Secretary of the Treasury to suspend
liquidation for unliquidated entries of goods from such covered facility
until such time as the Trade Representative notifies the Secretary that
a condition described in subsection (b) has been met.
(b) Resumption of Liquidation.--The conditions described in this
subsection are the following:
(1) <<NOTE: Determination.>> The rapid response labor panel
has determined that there is no denial of rights at the covered
facility within the meaning of such terms under Annex 31-A of
the USMCA.
(2) A course of remediation for denial of rights has been
agreed to and has been completed in accordance with the agreed-
upon time.
(3) The denial of rights has been otherwise remedied.
[[Page 134 STAT. 90]]
SEC. <<NOTE: 19 USC 4693.>> 753. FINAL REMEDIES.
(a) <<NOTE: Determination. Consultation.>> In General.--If a rapid
response labor panel constituted in accordance with Annex 31-A of the
USMCA determines with respect to a case that there has been a denial of
rights within the meaning of such Annex, the Trade Representative may,
in consultation with the appropriate congressional committees--
(1) direct the Secretary of the Treasury, until the date of
the notification described in subsection (b) and in accordance
with Annex 31-A of the USMCA--
(A) to--
(i) deny entry to goods, produced wholly or in
part, from any covered facility involved in such
case; or
(ii) allow for the release of goods, produced
wholly or in part, from such covered facilities
only upon payment of duties and any penalty; and
(B) to apply any duties or penalties to customs
entries for which liquidation was suspended pursuant to
section 752; and
(2) apply other remedies that are appropriate and available
under Annex 31-A of the USMCA, until the denial of rights with
respect to the case has been remedied.
(b) Remediation Notification.--The Trade Representative shall
promptly notify the Secretary when the denial of rights with respect to
a case described in subsection (a) has been remedied.
TITLE VIII--ENVIRONMENT MONITORING AND ENFORCEMENT
SEC. <<NOTE: 19 USC 4701.>> 801. DEFINITIONS.
In this title:
(1) Environmental law.--The term ``environmental law'' has
the meaning given the term in article 24.1 of the USMCA.
(2) Environmental obligations.--The term ``environmental
obligations'' means obligations relating to the environment
under--
(A) chapter 1 of the USMCA (relating to initial
provisions and general definitions); and
(B) chapter 24 of the USMCA (relating to
environment).
Subtitle A--Interagency Environment Committee for Monitoring and
Enforcement
SEC. <<NOTE: 19 USC 4711.>> 811. ESTABLISHMENT.
(a) <<NOTE: Deadline. President.>> In General.--Not later than 30
days after the date of the enactment of this Act, the President shall
establish an Interagency Environment Committee for Monitoring and
Enforcement (in this title referred to as the ``Interagency Environment
Committee'')--
(1) <<NOTE: Coordination.>> to coordinate United States
efforts to monitor and enforce environmental obligations
generally; and
(2) with respect to the USMCA countries--
[[Page 134 STAT. 91]]
(A) <<NOTE: Assessment.>> to carry out an
assessment of their environmental laws and policies;
(B) to carry out monitoring actions with respect to
the implementation and maintenance of their
environmental obligations; and
(C) to request enforcement actions with respect to
USMCA countries that are not in compliance with their
environmental obligations.
(b) Membership.--The members of the Interagency Environment
Committee shall be the following:
(1) The Trade Representative, who shall serve as
chairperson.
(2) Representatives from each of the following:
(A) The National Oceanic Atmospheric Administration.
(B) The U.S. Fish and Wildlife Service.
(C) The U.S. Forest Service.
(D) The Environmental Protection Agency.
(E) The Animal and Plant Health Inspection Service.
(F) U.S. Customs and Border Protection.
(G) The Department of State.
(H) The Department of Justice.
(I) The Department of the Treasury.
(J) The United States Agency for International
Development.
(3) <<NOTE: President.>> Representatives from other Federal
agencies, as the President determines to be appropriate.
(c) Information Sharing.--Notwithstanding any other provision of
law, the members of the Interagency Environment Committee may exchange
information for purposes of carrying out this subtitle.
SEC. <<NOTE: 19 USC 4712.>> 812. ASSESSMENT.
(a) In General.--The Interagency Environment Committee shall carry
out an assessment of the environmental laws and policies of the USMCA
countries--
(1) to determine if such laws and policies are sufficient to
implement their environmental obligations; and
(2) to identify any gaps between such laws and policies and
their environmental obligations.
(b) Matters To Be Included.--The assessment required by subsection
(a) shall identify the environmental laws and policies of the USMCA
countries with respect to which enhanced cooperation, including the
provision of technical assistance and capacity building assistance,
monitoring actions, and enforcement actions, if appropriate, should be
carried out on an enhanced and continuing basis.
(c) Report.--Not later than 90 days after the date on which the
Interagency Environment Committee is established, or the date on which
the USMCA enters into force, whichever occurs earlier, the Interagency
Environment Committee shall submit a report that contains the assessment
required by subsection (a) to--
(1) the appropriate congressional committees; and
(2) the Trade and Environment Policy Advisory Committee (or
successor advisory committee) established under section
135(c)(1) of the Trade Act of 1974 (19 U.S.C. 2155(c)(1)).
(d) Update.--The Interagency Environment Committee shall--
[[Page 134 STAT. 92]]
(1) update the assessment required by subsection (a) at the
appropriate time prior to submission of the report required by
section 816(a) that is to be submitted in the fifth year after
the USMCA enters into force; and
(2) submit the updated assessment to the Trade
Representative for inclusion in such fifth annual report.
(e) Consultation.--The Interagency Environment Committee shall
consult on a regular basis with the USMCA countries--
(1) in carrying out the assessment required by subsection
(a) and the update to the assessment required by subsection (d);
and
(2) in preparing the report required by subsection (c).
SEC. <<NOTE: 19 USC 4713.>> 813. MONITORING ACTIONS.
(a) In General.--The Interagency Environment Committee shall carry
out monitoring actions, which shall include the monitoring actions
described in subsections (b), (c), and (d), with respect to the
implementation and maintenance of the environmental obligations of the
USMCA countries.
(b) <<NOTE: Deadlines.>> Review of CEC Secretariat Submissions.--
(1) In general.--Not later than 30 days after the date on
which the Secretariat of the Commission for Environmental
Cooperation prepares a factual record under article 24.28 of the
USMCA relating to a submission filed under article 24.27 of the
USMCA with respect to a USMCA country, the Interagency
Environment Committee--
(A) shall review the factual record; and
(B) may, based on findings of the review under
subparagraph (A) that the USMCA country is not in
compliance with its environmental obligations, request
enforcement actions under section 814 with respect to
the USMCA country.
(2) Written justification.--If the Interagency Environment
Committee finds that a USMCA country is not in compliance with
its environmental obligations under paragraph (1)(B) and
determines not to request enforcement actions under section 814
with respect to the USMCA country, the Committee shall, not
later than 30 days after the date on which it makes the
determination, provide to the appropriate congressional
committees a written explanation and justification of the
determination.
(c) Review of Reports of United States Environment Attaches to
Mexico.--The Interagency Environment Committee shall--
(1) review each report submitted to the Committee under
section 822(b)(2); and
(2) <<NOTE: Assessment.>> based on the findings of each
such report, assess the efforts of Mexico to comply with its
environmental obligations.
(d) United States Implementation of Environment Cooperation and
Customs Verification Agreement.--
(1) Verification of shipments.--The Interagency Environment
Committee--
(A) may request verification of particular shipments
of Mexico under the Environment Cooperation and Customs
Verification Agreement between the United States and
Mexico, done at Mexico City on December 10, 2019, in
response to--
[[Page 134 STAT. 93]]
(i) comments submitted by the public to
request verification of particular shipments of
Mexico under such Agreement; or
(ii) on its own motion; and
(B) upon receipt of comments described in
subparagraph (A)(i)--
(i) <<NOTE: Deadline.>> shall review the
comments not later than 30 days after the date on
which the comments are submitted to the Trade
Representative; and
(ii) may request the Trade Representative to,
within a reasonable period of time, request Mexico
to provide relevant information for purposes of
verification of particular shipments of Mexico
described in subparagraph (A).
(2) Review of relevant information and request for
additional steps.--The Interagency Environment Committee--
(A) shall review relevant information provided by
Mexico as described in paragraph (1)(B)(ii) to determine
if the Trade Representative should request additional
steps to verify information provided or related to a
particular shipment of Mexico; and
(B) may request the Trade Representative to, within
a reasonable period of time, request Mexico to take such
additional steps with respect to the particular
shipment.
(3) <<NOTE: Time period.>> Consultation.--The Trade
Representative, on behalf of the Interagency Environment
Committee, shall, on a quarterly basis, consult with the
appropriate congressional committees and the Trade and
Environment Policy Advisory Committee (or successor advisory
committee) established under section 135(c)(1) of the Trade Act
of 1974 (19 U.S.C. 2155(c)(1)) regarding the public comments and
relevant information described in paragraph (1) and the actions
taken under paragraph (2).
(e) Application.--Subsections (c) and (d) shall apply with respect
to Mexico for such time as the USMCA is in force with respect to, and
the United States applies the USMCA to, Mexico.
SEC. <<NOTE: 19 USC 4714.>> 814. ENFORCEMENT ACTIONS.
The Interagency Environment Committee--
(1) may request the Trade Representative to, within a
reasonable period of time, request consultations under--
(A) article 24.29 of the USMCA (relating to
environment consultations) with respect to the USMCA
country; or
(B) articles 31.4 and 31.6 of the USMCA (relating to
dispute settlement consultations) with respect to the
USMCA country; or
(2) may request the heads of other Federal agencies
described in section 815 to initiate monitoring or enforcement
actions with respect to the USMCA country under the provisions
of law described in section 815.
SEC. <<NOTE: 19 USC 4715.>> 815. OTHER MONITORING AND ENFORCEMENT
ACTIONS.
(a) Marine Mammal Protection Act.--The Secretary of Commerce has
authority to take appropriate monitoring or enforcement actions under
the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.).
[[Page 134 STAT. 94]]
(b) Magnuson-Stevens Fishery Conservation and Management Act.--The
Secretary of Commerce has authority to take appropriate monitoring or
enforcement actions under the following provisions of law:
(1) The Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1801 et seq.).
(2) The Magnuson-Stevens Fishery Conservation and Management
Reauthorization Act of 2006 (16 U.S.C. 1891 et seq.).
(3) The High Seas Driftnet Fishing Moratorium Protection Act
(16 U.S.C. 1826d et seq.).
(4) The Shark Conservation Act of 2010 (16 U.S.C. 1826k
note; 1857 note).
(5) The Shark Finning Prohibition Act (16 U.S.C. 1822 note).
(c) Fishermen's Protective Act of 1967.--The Secretary of Commerce
and Secretary of the Interior have authority to take appropriate
monitoring or enforcement actions under section 8 of the Fishermen's
Protective Act of 1967 (22 U.S.C. 1978).
(d) Agreement on Port State Measures To Prevent, Deter and Eliminate
Illegal, Unreported and Unregulated Fishing.--The Secretary of Commerce
has authority to take appropriate monitoring or enforcement actions
under the Port State Measures Agreement Act of 2015 (16 U.S.C. 7401 et
seq.).
(e) Endangered Species Act.--The Secretary of Agriculture, the
Secretary of the Interior, the Secretary of Homeland Security, the
Secretary of Commerce, and the Secretary of the Treasury have authority
to take appropriate monitoring or enforcement actions under the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
(f) Lacey Act.--The Secretary of Agriculture, the Secretary of
Commerce, the Secretary of the Interior, the Secretary of Homeland
Security, and the Secretary of the Treasury have authority to take
appropriate monitoring or enforcement actions under the Lacey Act
Amendments of 1981 (16 U.S.C. 3371 et seq.).
(g) Migratory Bird Treaty Act.--The Secretary of the Interior has
authority to take appropriate monitoring or enforcement actions under
the Migratory Bird Treaty Act of 1918 (16 U.S.C. 703 et seq.).
(h) Eliminate, Neutralize, and Disrupt Wildlife Trafficking Act.--
The Secretary of State, the Secretary of the Interior, the Attorney
General, and Administrator of the United States Agency for International
Development have authority to take appropriate monitoring or enforcement
actions under the Eliminate, Neutralize, and Disrupt Wildlife
Trafficking Act of 2016 (16 U.S.C. 7601 et seq.).
(i) Wild Bird Conservation Act.--The Secretary of the Interior has
authority to take appropriate monitoring or enforcement actions under
the Wild Bird Conservation Act of 1992 (16 U.S.C. 4901 et seq.).
(j) Customs Seizure and Other Authorities.--The Secretary of
Homeland Security has authority to take appropriate monitoring or
enforcement actions under section 499 of the Tariff Act of 1930 (19
U.S.C. 1499) or section 596 of such Act (19 U.S.C. 1595a).
(k) Other Relevant Provisions of Law.--The Interagency Environment
Committee may request the heads of other Federal
[[Page 134 STAT. 95]]
agencies to take appropriate monitoring or enforcement actions under
other relevant provisions of law.
(l) Rule of Construction.--Nothing in this section may be construed
to supersede or otherwise limit in any manner the functions or authority
of the head of any Federal agency described in this section under any
other provision of law.
SEC. <<NOTE: 19 USC 4716.>> 816. REPORT TO CONGRESS.
(a) <<NOTE: Consultation.>> In General.--The Trade Representative,
in consultation with the head of any Federal agency described in this
subtitle, shall submit to the appropriate congressional committees a
report on the implementation of this subtitle, including--
(1) a description of efforts of the USMCA countries to
implement their environmental obligations; and
(2) a description of additional efforts to be taken with
respect to USMCA countries that are failing to implement their
environmental obligations.
(b) Timing of Report.--The report required by subsection (a) shall
be submitted--
(1) not later than 1 year after the date on which the USMCA
enters into force;
(2) annually for each of the next 4 years; and
(3) biennially thereafter.
(c) Additional Matters To Be Included in the Fifth Annual Report.--
The report required by subsection (a) that is submitted in the fifth
year after the USMCA enters into force shall also include the following:
(1) <<NOTE: Assessment.>> The updated assessment required
by section 812(d).
(2) <<NOTE: Determination.>> A comprehensive determination
regarding USMCA countries' implementation of their environmental
obligations.
(3) An explanation of how compliance with environmental
obligations will be taken into consideration during the ``joint
review'' conducted pursuant to article 34.7.2 of the USMCA on
the sixth anniversary of the entry into force of the USMCA.
SEC. <<NOTE: 19 USC 4717.>> 817. REGULATIONS.
<<NOTE: Consultation.>> The head of any Federal agency described in
this subtitle, in consultation with the Interagency Environment
Committee, may prescribe such regulations as are necessary to carry out
the authorities of the Federal agency as provided for under this
subtitle.
Subtitle B--Other Matters
SEC. <<NOTE: 19 USC 4731.>> 821. BORDER WATER INFRASTRUCTURE
IMPROVEMENT AUTHORITY.
(a) <<NOTE: Coordination.>> In General.--The Administrator of the
Environmental Protection Agency shall, in coordination with eligible
public entities, carry out the planning, design, construction, and
operation and maintenance of high priority treatment works in the
covered area to treat wastewater (including stormwater), nonpoint
sources of pollution, and related matters resulting from international
transboundary water flows originating in Mexico.
(b) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Administrator shall
submit to Congress a report on activities carried out pursuant to this
section.
(c) Definitions.--In this section:
[[Page 134 STAT. 96]]
(1) Covered area.--The term ``covered area'' means the
portion of the Tijuana River watershed that is in the United
States.
(2) Eligible public entities.--The term ``eligible public
entities'' means--
(A) the United States Section of the International
Boundary and Water Commission;
(B) the Corps of Engineers;
(C) the North American Development Bank;
(D) the Department of State;
(E) any other appropriate Federal agency;
(F) the State of California; and
(G) any of the following entities with jurisdiction
over any part of the covered area:
(i) A local government.
(ii) An Indian Tribe.
(iii) A regional water board.
(iv) A public wastewater utility.
(3) Treatment works.--The term ``treatment works'' has the
meaning given that term in section 212 of the Federal Water
Pollution Control Act.
SEC. <<NOTE: 19 USC 4732.>> 822. DETAIL OF PERSONNEL TO OFFICE OF
THE UNITED STATES TRADE REPRESENTATIVE.
(a) In General.--Upon the request of the Trade Representative, the
Administrator of the Environmental Protection Agency, the Director of
the U.S. Fish and Wildlife Service, and the Administrator of the
National Oceanic Atmospheric Administration may detail, on a
reimbursable basis, one employee of each such respective agency to the
Office of the United States Trade Representative to be assigned to the
United States Embassy in Mexico to carry out the duties described in
subsection (b).
(b) Duties.--The duties described in this subsection are the
following:
(1) Assist the Interagency Environment Committee to carry
out monitoring and enforcement actions with respect to the
environmental obligations of Mexico.
(2) <<NOTE: Reports.>> Prepare and submit to the
Interagency Environment Committee on a quarterly basis a report
on efforts of Mexico to comply with its environmental
obligations.
Subtitle C--North American Development Bank
SEC. 831. GENERAL CAPITAL INCREASE.
Part 2 of subtitle D of title V of Public Law 103-182 (22 U.S.C.
290m et seq.) is amended by adding at the end the following:
``SEC. <<NOTE: 22 USC 290m-7.>> 547. FIRST CAPITAL INCREASE.
``(a) Subscription Authorized.--
``(1) In general.--The Secretary of the Treasury is
authorized to subscribe on behalf of the United States to, and
make payment for, 150,000 additional shares of the capital stock
of the Bank.
``(2) Limitation.--Any subscription by the United States to
the capital stock of the Bank shall be effective only to
[[Page 134 STAT. 97]]
such extent and in such amounts as are provided in advance in
appropriations Acts.
``(b) Limitations on Authorization of Appropriations.--
``(1) In general.--In order to pay for the increase in the
United States subscription to the Bank under subsection (a),
there are authorized to be appropriated, without fiscal year
limitation, $1,500,000,000 for payment by the Secretary of the
Treasury.
``(2) Allocation of funds.--Of the amount authorized to be
appropriated under paragraph (1)--
``(A) $225,000,000 shall be for paid in shares of
the Bank; and
``(B) $1,275,000,000 shall be for callable shares of
the Bank.''.
SEC. <<NOTE: 22 USC 290m-8 note.>> 832. POLICY GOALS.
(a) In General.--To the extent consistent with the mission and scope
of the North American Development Bank on the day before the date of the
enactment of this Act and pursuant to section 2 of article II of the
Charter, the Secretary of the Treasury should direct the representatives
of the United States to the Board of Directors of the Bank to use the
voice and vote of the United States to give preference to the financing
of projects related to environmental infrastructure relating to water
pollution, wastewater treatment, water conservation, municipal solid
waste, stormwater drainage, non-point pollution, and related matters.
(b) Charter Defined.--In this section, the term ``Charter'' means
the Agreement Concerning the Establishment of a Border Environment
Cooperation Commission and a North American Development Bank, signed at
Washington and Mexico November 16 and 18, 1993, and entered into force
January 1, 1994 (TIAS 12516), between the United States and Mexico.
SEC. <<NOTE: 22 USC 290m-8 note.>> 833. EFFICIENCIES AND
STREAMLINING.
The Secretary of the Treasury should direct the representatives of
the United States to the Board of Directors of the North American
Development Bank to use the voice and vote of the United States to seek
to require the Bank to develop and implement efficiency improvements to
streamline and accelerate the project certification and financing
process, including through initiatives such as single certifications for
revolving facilities, programmatic certification of similar groups of
small projects, expansion of internal authority to approve qualified
projects below certain monetary thresholds, and expedited certification
for public sector projects subject to lender bidding processes.
SEC. 834. PERFORMANCE MEASURES.
(a) In General.--The Secretary of the Treasury should direct the
representatives of the United States to the Board of Directors of the
North American Development Bank to use the voice and vote of the United
States to seek to require the Bank to develop performance measures
that--
(1) demonstrate how projects and financing approved by the
Bank are meeting the Bank's mission and providing added value to
the region near the international land border between the United
States and Mexico; and
(2) <<NOTE: Time period.>> are reviewed and updated not
less frequently than annually.
[[Page 134 STAT. 98]]
(b) Report to Congress.--The Secretary of the Treasury shall submit
to Congress, with the submission to Congress of the budget of the
President for a fiscal year under section 1105(a) of title 31, United
States Code, a report on progress in imposing the performance measures
described in subsection (a) of this section.
TITLE IX <<NOTE: USMCA Supplemental Appropriations Act, 2019.>> --USMCA
SUPPLEMENTAL APPROPRIATIONS ACT, 2019
The following sums are hereby appropriated, out of any money in the
Treasury not otherwise appropriated, for fiscal year 2020 and for other
purposes, namely:
DEPARTMENT OF AGRICULTURE
Agricultural Programs
Animal and Plant Health Inspection Service
salaries and expenses
For an additional amount for ``Salaries and Expenses'', for
enforcement of the Lacey Act Amendments of 1981 (16 U.S.C. 3371 et seq.)
during fiscal years 2020 through 2023 related to trade activities
between the United States and Mexico, $4,000,000, to remain available
until September 30, 2023: Provided, That such amount is designated by
the Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control Act
of 1985.
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', $16,000,000, to remain available until September 30, 2023:
Provided, That $8,000,000 shall be available to engage in cooperation
with the Government of Mexico to combat illegal, unreported, and
unregulated fishing and enhance the implementation of the Seafood Import
Monitoring Program pursuant to 16 U.S.C. 1826 and 1829, during fiscal
years 2020 through 2023: Provided further, That $8,000,000 shall be
available to carry out section 3 of the Marine Debris Act (33 U.S.C.
1952) during fiscal years 2020 through 2023 in the North American
region: Provided further, That such amount is designated by the
Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control Act
of 1985.
Office of the United States Trade Representative
salaries and expenses
For an additional amount for ``Salaries and Expenses'', $50,000,000,
to remain available until September 30, 2023: Provided, That
$30,000,000 shall be available solely to provide for additional capacity
of the Office during fiscal years 2020 through
[[Page 134 STAT. 99]]
2023 to monitor compliance with labor obligations (as such term is
defined in section 701 of this Act), including the necessary expenses of
additional full-time employees to participate in the Interagency Labor
Committee for Monitoring and Enforcement established pursuant to section
711 of this Act: Provided further, That $20,000,000 shall be available
to reimburse the necessary expenses of personnel participating in the
Interagency Environment Committee for Monitoring and Enforcement
established pursuant to section 811 of this Act during fiscal years 2020
through 2023 to monitor compliance with environmental obligations (as
such term is defined in section 801 of this Act), including up to one
additional full-time employee detailed to the United States Embassy in
Mexico from each of the United States Fish and Wildlife Service, the
Environmental Protection Agency, and the National Oceanic and
Atmospheric Administration: Provided
further, <<NOTE: Determination. Reimbursement. Time period.>> That, if
the United States Trade Representative determines that the additional
amount appropriated under this heading in this Act exceeds the amount
sufficient to provide for the reimbursement of personnel specified in
the previous proviso, such excess amounts may be used to reimburse the
necessary expenses of additional personnel participating in the
Interagency Environment Committee for Monitoring and Enforcement during
fiscal years 2020 through 2023 to monitor compliance with environmental
obligations (as such term is defined in section 801 of this Act):
Provided further, That such amount is designated by the Congress as
being for an emergency requirement pursuant to section 251(b)(2)(A)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985.
trade enforcement trust fund
For an additional amount for the ``Trade Enforcement Trust Fund'',
$40,000,000, to remain available until September 30, 2023, to carry out
the enforcement of environmental obligations under the USMCA, including
for state-to-state dispute settlement actions, during fiscal years 2020
through 2023: Provided, That, amounts appropriated in this paragraph
shall not count toward the limitation specified in section 611(b)(2) of
the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C.
4405): Provided further, That such amount is designated by the Congress
as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control Act
of 1985.
DEPARTMENT OF THE INTERIOR
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'', to enforce the
Lacey Act Amendments of 1981 (16 U.S.C. 3371 et seq.) and sections 42
and 43 of title 18, United States Code, with respect to goods imported
or exported between the United States and Mexico, during fiscal years
2020 through 2023, $4,000,000, to remain available until September 30,
2023: Provided, That such amount is designated by the Congress as being
for an emergency requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
[[Page 134 STAT. 100]]
ENVIRONMENTAL PROTECTION AGENCY
Environmental Programs and Management
For an additional amount for ``Environmental Programs and
Management'' for necessary expenses for carrying out the Environmental
Protection Agency's efforts through the Commission for Environmental
Cooperation during fiscal years 2020 through 2023, to reduce pollution,
strengthen environmental governance, conserve biological diversity, and
sustainably manage natural resources, $4,000,000, to remain available
until expended: Provided, That such amount is designated by the
Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control Act
of 1985.
State and Tribal Assistance Grants
For an additional amount for ``State and Tribal Assistance Grants''
for architectural, engineering, planning, design, construction and
related activities in connection with the construction of high priority
wastewater facilities in the area of the United States-Mexico Border,
after consultation with the appropriate border commission, $300,000,000,
to remain available until expended: Provided, That such amount is
designated by the Congress as being for an emergency requirement
pursuant to section 251(b)(2)(A)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
DEPARTMENT OF LABOR
Departmental Management
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$210,000,000, for the Bureau of International Labor Affairs to
administer or operate international labor activities, bilateral and
multilateral technical assistance, and microfinance programs, by or
through contracts, grants, subgrants and other arrangements; of which
$180,000,000, to remain available until December 31, 2023, shall be used
to support reforms of the labor justice system in Mexico, including
grants to support worker-focused capacity building, efforts to reduce
workplace discrimination in Mexico, efforts to reduce child labor and
forced labor in Mexico, efforts to reduce human trafficking, efforts to
reduce child exploitation, and other efforts related to implementation
of the USMCA; and of which $30,000,000, to remain available until
September 30, 2027, shall be available to provide for additional
capacity of the Bureau of International Labor Affairs during fiscal
years 2020 through 2027 to monitor compliance with labor obligations (as
such term is defined in section 701 of this Act), including the
necessary expenses of additional full-time employees of the Bureau to
participate in the Interagency Labor Committee for Monitoring and
Enforcement established pursuant to section 711 of this Act:
Provided, <<NOTE: Detailed employees. Reports.>> That the Secretary of
Labor may detail or assign up to 5 additional full-time employees of the
Bureau to the United States Embassy or consulates in Mexico to (1)
assist in monitoring and enforcement actions with respect to the labor
obligations of Mexico, and (2) prepare a report, to be submitted on a
quarterly basis
[[Page 134 STAT. 101]]
to the Interagency Labor Committee for Monitoring and Enforcement
through September 30, 2027, on the efforts of Mexico to comply with
labor obligations (as such term is defined in section 701 of this Act):
Provided further, That such employees, while detailed or assigned, shall
continue to receive compensation, allowances, and benefits from funds
made available to the Bureau for purposes related to the activities of
the detail or assignment, in accordance with authorities related to
their employment status and agency policies: Provided further, That
such amount is designated by the Congress as being for an emergency
requirement pursuant to section 251(b)(2)(A)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985.
MULTILATERAL ASSISTANCE
International Financial Institutions
contribution to the north american development bank
For payment to the North American Development Bank by the Secretary
of the Treasury for the United States share of the paid-in portion of
the increase in capital stock, $215,000,000, to remain available until
expended: Provided, <<NOTE: Applicability.>> That the authorities and
conditions applicable to accounts in title V of the Department of State,
Foreign Operations, and Related Programs Appropriations Act, 2019
(division F of Public Law 116-6) shall apply to the amounts provided
under this heading: Provided further, That such amount is designated by
the Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control Act
of 1985.
GENERAL PROVISIONS--THIS TITLE
Sec. 901. Each amount appropriated or made available by this title
is in addition to any amounts otherwise appropriated for any of the
fiscal years involved.
Sec. 902. No part of any appropriation contained in this title
shall remain available for obligation beyond the current fiscal year
unless expressly so provided herein.
Sec. 903. Unless otherwise provided for by this title, the
additional amounts appropriated by this title to appropriations accounts
shall be available under the authorities and conditions applicable to
such appropriations accounts for fiscal year 2020.
Sec. 904. <<NOTE: President.>> Each amount designated in this title
by the Congress as being for an emergency requirement pursuant to
section 251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit
Control Act of 1985 shall be available (or rescinded or transferred, if
applicable) only if the President subsequently so designates all such
amounts and transmits such designations to the Congress.
budgetary effects
Sec. 905. (a) Statutory PAYGO Scorecards.--The budgetary effects of
this title shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay As-You-Go Act of 2010.
[[Page 134 STAT. 102]]
(b) Senate PAYGO Scorecards.--The budgetary effects of this title
shall not be entered on any PAYGO scorecard maintained for purposes of
section 4106 of H. Con. Res. 71 (115th Congress).
(c) Classification of Budgetary Effects.--Notwithstanding Rule 3 of
the Budget Scorekeeping Guidelines set forth in the joint explanatory
statement of the committee of conference accompanying Conference Report
105-217 and section 250(c)(7) and (c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985, the budgetary effects of this
title shall be estimated for purposes of section 251 of such Act.
This title may be cited as the ``USMCA Supplemental Appropriations
Act, 2019''.
Approved January 29, 2020.
LEGISLATIVE HISTORY--H.R. 5430:
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HOUSE REPORTS: No. 116-358, Pt. 1 (Comm. on Ways and Means).
CONGRESSIONAL RECORD:
Vol. 165 (2019):
Dec. 19, considered and passed
House.
Vol. 166 (2020):
Jan. 15, 16, considered and passed
Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2020):
Jan. 29, Presidential remarks.
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