Text: H.R.3275 — 101st Congress (1989-1990)All Information (Except Text)

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--H.R.3275--
H.R.3275
One Hundred First Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the third day of January,
one thousand nine hundred and eighty-nine
An Act
To implement the steel trade liberalization program.
 Be it enacted by the Senate and House of Representatives of the United
 States of America in Congress assembled,
SECTION 1. SHORT TITLE.
 This Act may be cited as the `Steel Trade Liberalization Program
 Implementation Act'.
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSES; SENSE OF CONGRESS REGARDING
THE STEEL TRADE LIBERALIZATION PROGRAM.
 (a) FINDINGS AND PURPOSES- Section 802 of the Steel Import Stabilization Act
 (19 U.S.C. 2253 note) is amended to read as follows:
`SEC. 802. FINDINGS AND PURPOSES.
 `(a) The Congress finds that--
 `(1) since 1984, the United States steel industry has made significant
 progress toward adjustment, through modernization of production facilities,
 elimination of excess capacity, reduction of production costs, and improvement
 of productivity;
 `(2) an extension of import relief, through transitional bilateral
 arrangements, for a period of two and one-half years will facilitate the
 steel industry's continued modernization and worker retraining;
 `(3) liberalization of market access during the period of transitional
 bilateral arrangements, with preferential treatment for countries who support
 fair and open trade, will help ensure an orderly return to an open market;
 `(4) the negotiation of an international consensus through the Uruguay Round
 of trade negotiations and through bilateral agreements to address subsidies
 and tariff and nontariff barriers will strengthen the international trading
 system and conditions of global steel trade; and
 `(5) the termination of transitional bilateral arrangements by March 31,
 1992, and the full and forceful application of the United States unfair
 trade laws, will protect the United States national interest in preserving
 conditions of fair and open trade in the United States market.
 `(b) The purposes of this title are--
 `(1) to endorse the principles and goals of the steel trade liberalization
 program as announced by the President on July 25, 1989, and provide for
 its implementation;
 `(2) to grant specific enforcement powers to the President to carry out the
 terms and conditions of bilateral arrangements entered into for purposes
 of implementing that program; and
 `(3) to make the continuation of those powers subject to the condition
 that the steel industry continue to modernize its plant and equipment and
 provide for appropriate worker retraining.'.
 (b) SENSE OF CONGRESS- Section 803 of the Steel Import Stabilization Act
 is amended to read as follows:
`SEC. 803. SENSE OF CONGRESS REGARDING THE STEEL TRADE LIBERALIZATION PROGRAM.
 `(a) The Congress supports the full and effective implementation of the
 steel trade liberalization program.
 `(b) It is the sense of the Congress that the steel trade liberalization
 program should be implemented in a manner which provides for liberalized
 market access for steel products during the period in which bilateral
 arrangements remain authorized in order to prepare for the eventual
 termination of such arrangements in 1992 and reliance thereafter on market
 forces and the full enforcement of United States trade laws. In particular,
 liberalized market access should be provided to those foreign countries that
 work with the United States to achieve the goals referred to in subsection
 (c).
 `(c) It is further the sense of the Congress that the United States Trade
 Representative should promptly conduct negotiations, through the Uruguay
 Round of negotiations under the General Agreement on Tariffs and Trade
 and through complementary bilateral arrangements, to seek an international
 consensus regarding steel trade that provides for--
 `(1) strong disciplines over trade-distorting government subsidies;
 `(2) the lowering of trade barriers so as to ensure market access; and
 `(3) enforcement measures to deal with violations of consensus obligations.
 `(d) The President shall provide to the Congress an annual assessment
 of the progress of the negotiations referred to in subsection (c). The
 President may include the assessment in the annual report required under
 section 163(a) of the Trade Act of 1974 (19 U.S.C. 2213(a)) regarding the
 trade agreements program.'.
SEC. 3. EXTENSION OF ACT.
 (a) EXTENSION UNTIL APRIL 1, 1992- Section 806(a) of the Steel Import
 Stabilization Act is amended--
 (1) by striking out `the fifth anniversary of the effective date of this
 title' in paragraph (1) and inserting `March 31, 1992'; and
 (2) by striking out `or fourth' in paragraph (2) and inserting `fourth,
 fifth, sixth, or seventh'.
 (b) SPECIAL PROVISION- If the Steel Trade Liberalization Program
 Implementation Act is not enacted on or before October 1, 1989, then section
 806(a)(2) of the Steel Import Stabilization Act (as amended by subsection
 (a)) shall be applied by treating the reference therein to the close of the
 fifth anniversary of the effective date of the Steel Import Stabilization Act
 as a reference to the close of the 30th day after the date of the enactment
 of the Steel Trade Liberalization Program Implementation Act.
SEC. 4. ENFORCEMENT AUTHORITY.
 (a) INTERIM AUTHORITY- Section 805(a) of the Steel Import Stabilization
 Act is amended by adding at the end thereof the following new sentence:
 `The President is further authorized to carry out, between October 1, 1989,
 and the date of the concluding of any bilateral arrangement, such actions
 as may be necessary or appropriate to ensure an orderly transition to that
 arrangement.'.
 (b) SHORT SUPPLY SITUATIONS- Section 805(b) of the Steel Import Stabilization
 Act is amended to read as follows:
 `(b)(1) If--
 `(A) a bilateral arrangement includes a provision relating to short supply
 situations; and
 `(B) the Secretary of Commerce (hereinafter in this subsection referred to
 as the `Secretary') determines, in accordance with this subsection, that a
 short supply situation exists in the United States with respect to a steel
 product that is subject to a quantitative limitation under such arrangement;
the Secretary shall authorize the importation of additional quantities of
that product without regard to any aggregate quantitative import limitation
in effect under such arrangement.
 `(2) In determining under this subsection whether a short supply situation
 exists in the United States with respect to a steel product, the Secretary
 shall take into account all relevant factors, including--
 `(A) (to the extent information is available) the recent levels of capacity
 utilization for domestic facilities producing the product;
 `(B) the quantity of the steel product requested in a short supply petition
 and the ability of domestic producers to supply the product in such quantity;
 `(C) the willingness of a domestic producer to supply the steel product at
 a price which is not an aberration from prevailing domestic market prices;
 `(D) reasonable specifications requested by the purchaser or any end user; and
 `(E) delivery times to the purchaser and any end user of the steel product.
 `(3)(A) A petition requesting a determination under this subsection may
 be filed with the Secretary. The petition must be in such form and contain
 such relevant information as the Secretary requires.
 `(B) If the Secretary considers that a petition filed under subparagraph
 (A) is adequate, the Secretary shall promptly cause to be published in the
 Federal Register a notice that a determination under this subsection with
 respect to the steel product concerned is under consideration.
 `(C) The Secretary shall provide opportunity for comment by interested
 persons regarding the issues raised in a petition.
 `(D)(i) The petitioner shall certify that the factual information contained
 in the petition and any additional submission is accurate and complete to
 the best of the petitioner's knowledge.
 `(ii) An interested person shall certify that the factual information
 submitted by that person to the Secretary is accurate and complete to the
 best of the person's knowledge.
 `(4)(A) If an adequate petition is filed under paragraph (3)(A), the Secretary
 shall determine, not later than the day specified in subparagraph (B)--
 `(i) whether a short supply situation exists in the United States with
 respect to the steel product; and
 `(ii) if the determination under clause (i) is affirmative, the quantity
 of the steel product that the Secretary will authorize for importation.
 `(B) The Secretary must make a determination with respect to a petition
 not later than--
 `(i) the 15th day after the day on which the petition is filed if--
 `(I) the raw steel making capacity utilization in the United States equals
 or exceeds 90 percent,
 `(II) the importation of additional quantities of the steel product was
 authorized by the Secretary during each of the 2 immediately preceding
 years, or
 `(III) the Secretary finds, on the basis of available information (and
 whether or not in the context of a determination under this subsection),
 that the steel product is not produced in the United States; or
 `(ii) the 30th day after the day on which the petition was filed if neither
 subclause (I), (II), or (III) of clause (i) applies.
 `(C) In making a determination with respect to which subparagraph (B)(i)
 applies, the Secretary shall apply a rebuttable presumption that the short
 supply situation alleged in the petition exists.
 `(D) The Secretary shall cause to be published in the Federal Register
 notice of each determination made under this subsection setting forth the
 reasons for the determination.
 `(5) If under this subsection the Secretary authorizes the importation
 of a specified quantity of a steel product, the Secretary shall notify
 a representative of the appropriate foreign government and issue to the
 petitioner the necessary documentation to permit the importation of that
 quantity.
 `(6) The Secretary shall prescribe regulations to carry out this
 subsection. The interim text of such regulations shall be issued on or before
 the 30th day after the date of the enactment of the Steel Trade Liberalization
 Program Implementation Act. The regulations shall provide for transparency
 and fairness in the process of making short supply determinations, and
 shall be consistent with the President's announcement on July 25, 1989,
 establishing the steel trade liberalization program.'.
 (c) CONFORMING AMENDMENTS- Section 805 is further amended--
 (1) by amending subsection (c) by striking out `may provide' and inserting
 `, in consultation with the Secretary of Commerce, shall provide'; and
 (2) by striking out `President's Steel Policy,' in subsection (d)(3) and
 inserting `steel trade liberalization program'.
SEC. 5. DEFINITIONS.
 Section 804 of the Steel Import Stabilization Act is amended--
 (1) by inserting `or the steel trade liberalization program' before the
 period at the end of paragraph (1); and
 (2) by adding at the end thereof the following:
 `(4) The term `steel trade liberalization program' means the program,
 announced by the President on July 25, 1989, designed to achieve an orderly
 transition to open markets, the continued modernization and adjustment of
 the steel industry, and the negotiation of an international consensus to
 restore fair and open steel trade.'.
SEC. 6. DOMESTIC INDUSTRY EFFORTS TO IMPROVE QUALITY AND SERVICE AND TO
PROVIDE WORKER TRAINING.
 (a) IN GENERAL- Section 806(b) of the Steel Import Stabilization Act is
 amended--
 (1) by amending paragraph (2)(A) to read as follows:
 `(A) The term `major company' means an enterprise that produces iron and
 steel and whose raw steel production in the United States during 1988
 exceeded 2,000,000 net tons.'; and
 (2) by adding at the end of paragraph (3) the following: `For purposes of this
 paragraph, the United States International Trade Commission shall seek to--
 `(A) obtain information from purchasers of domestic steel products, as well
 as from domestic producers of steel products, regarding recent improvements
 in domestic quality and service, including those that result from industry
 modernization; and
 `(B) obtain information on--
 `(i) the general nature of the worker retraining efforts undertaken by the
 steel industry, and
 `(ii) with respect to the moneys referred to in paragraph (1)(B), the
 amounts used to retrain displaced former employees as compared with the
 amounts used for on-the-job retraining within the industry.'.
 (b) SPECIAL RULE- The amendment made by subsection (a)(1) shall not affect
 the definition of `qualified corporation' contained in section 212(g)(1)(A)
 of the Tax Reform Act of 1986.
SEC. 7. ETHYL ALCOHOL AND MIXTURES THEREOF FOR FUEL USE.
 (a) DETERMINATION OF INDIGENOUS PRODUCTS- Section 423(c) of the Tax Reform
 Act of 1986 (19 U.S.C. 2703 note) is amended--
 (1) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5),
 and (6), respectively; and
 (2) by striking out paragraph (2) and inserting the following:
 `(2) Ethyl alcohol or a mixture thereof that is produced by a process of
 full fermentation in an insular possession or beneficiary country shall be
 treated as being an indigenous product of that possession or country.
 `(3)(A) Ethyl alcohol and mixtures thereof that are only dehydrated within
 an insular possession or beneficiary country (hereinafter in this paragraph
 referred to as `dehydrated alcohol and mixtures') shall be treated as being
 indigenous products of that possession or country only if the alcohol or
 mixture, when entered, meets the applicable local feedstock requirement.
 `(B) The local feedstock requirement with respect to any calendar year is--
 `(i) 0 percent with respect to the base quantity of dehydrated alcohol and
 mixtures that is entered;
 `(ii) 30 percent with respect to the 35,000,000 gallons of dehydrated
 alcohol and mixtures next entered after the base quantity; and
 `(iii) 50 percent with respect to all dehydrated alcohol and mixtures
 entered after the amount specified in clause (ii) is entered.
 `(C) For purposes of this paragraph:
 `(i) The term `base quantity' means, with respect to dehydrated alcohol
 and mixtures entered during any calendar year, the greater of--
 `(I) 60,000,000 gallons; or
 `(II) an amount (expressed in gallons) equal to 7 percent of the United
 States domestic market for ethyl alcohol, as determined by the United States
 International Trade Commission, during the 12-month period ending on the
 preceding September 30;
that is first entered during that calendar year.
 `(ii) The term `local feedstock' means hydrous ethyl alcohol which is wholly
 produced or manufactured in any insular possession or beneficiary country.
 `(iii) The term `local feedstock requirement' means the minimum percent,
 by volume, of local feedstock that must be included in dehydrated alcohol
 and mixtures.'.
 (b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply with
 respect to calendar years 1990 and 1991.
SEC. 8. CONSISTENCY OF THE SUPERFUND PETROLEUM TAX WITH THE GENERAL AGREEMENT
ON TARIFFS AND TRADE.
 (a) UNIFORM RATE- Section 4611(c)(2)(A) of the Internal Revenue Code of 1986
 (26 U.S.C. 4611(c)(2)(A)) is amended to read as follows:
 `(A) the Hazardous Substance Superfund financing rate is 9.7 cents a
 barrel, and'.
 (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
 on the date of enactment of this Act.
SEC. 9. EFFECTIVE DATE.
 The amendments made by this Act (other than the amendments made by sections
 7 and 8) shall take effect on October 1, 1989.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.