Details of the Senate-Passed Miscellaneous Trade and Technical Corrections Act

Senator's "Hold" is Preventing House-Senate Conference

As the House and Senate have passed different versions of H.R. 1047, the next step would normally be a House-Senate conference to resolve the differences between the two versions of the bill.

However, Congressional sources state that a Senator has placed a "hold" on the Senate's version of H.R. 1047 which prevents a House-Senate conference from being convened.

Congressional sources note that if this "hold" can be lifted, the Senate is expected to request a conference with the House to resolve the differences in their two versions of H.R. 1047. If resolved in this manner, each body would then pass the conference version of H.R. 1047, which would then be sent to the President for enactment.

This is Part XIII of a multi-part series of summaries on the Senate-passed version of H.R. 1047 (H.R. 1047) and covers HTS Chapter 98 and 99 note corrections, a new duty exemption for foreign repair of vessels, revision of the definition of vessel as it pertains to Andean Trade Preference Act (ATPA) tuna, a "sense of the Senate" provision regarding World Trade Organization (WTO) agricultural negotiations, protection for Iraqi cultural antiquities, and intellectual property rights (IPR) protection. See future issues for additional summaries on H.R. 1047.

Correction to HTS Chapter 98 and 99 Notes

H.R. 1047 would correct HTS Chapter 98, Subchapter XVII (Other Special Classification Provisions) by redesignating the second and third U.S. Notes 6 as U.S. Notes 7 and 8, respectively. This would make U.S. Note 6 applicable to HTS 9817.22.05, U.S. Note 7 applicable to HTS 9817.85.01, and U.S. Note 8 applicable to HTS 9817.60.00.

H.R. 1047 would also amend HTS Chapter 99, Subchapter II (Temporary Reductions in Rates of Duty) by repealing U.S. Notes 4 and 12 (which refer to HTS Chapter 99 provisions on mass-produced kits and sports clothing, respectively, which no longer exist).

New Duty Exemption for the Foreign Repair of U.S. Documented Vessels

H.R. 1047 would amend 19 USC 1466(h), to add a new duty exemption for the cost of equipment, repair parts, and materials that are installed on a vessel documented under the laws of the U.S. and engaged in the foreign or coasting trade, if the installation is done by members of the regular crew of such vessel while the vessel is on the high seas.

H.R. 1047 would also amend 19 USC 1466(h) to state that declaration and entry shall not be required with respect to the installation, equipment, parts, and materials described in this new exemption.

In addition, H.R. 1047 would amend HTS Chapter 98, Subchapter XVIII in order to add a new U.S. Note 2 to state that notwithstanding the provisions in HTS 9818.00.03 - 9818.00.07, no duty would apply to the cost of equipment, repair parts, and materials that are installed on a vessel documented under the laws of the U.S. and engaged in the foreign or coasting trade, if the installation is done by members of the regular crew of such vessel while the vessel is on the high seas, and that declaration and entry would not be required with respect to such installation, equipment, parts, and materials.

Revised Definition of Vessel for ATPA Tuna Provision

H.R. 1047 would amend the definition of vessel as it pertains to the ATPA tuna provision (ATPA Section 204(b)(4)(B)(i)) so that it reads as follows:

"United States Vessel - a 'United States vessel' is (I) a vessel that has a certificate of documentation with a fishery endorsement under chapter 121 of title 46, United States Code, or (II) in the case of a vessel without a fishery endorsement, a vessel that is documented under the laws of the United States and for which a license has been issued pursuant to section 9 of the South Pacific Tuna Act of 1988 (16 USC 973g)."

Sense of the Senate Regarding WTO Agricultural Negotiations

H.R. 1047 contains a provision which expresses the "sense of the Senate" regarding agricultural negotiations in the World Trade Organization (WTO), including the opinion that the U.S. should not agree to the proposed framework recently released by the Chairman of the WTO Agriculture Negotiations Committee unless and until it is significantly improved, etc. (See H.R. 1047 for complete text of this "sense of the Senate" provision.)

Emergency Implementation of Import Restrictions on Iraqi Cultural Antiquities

H.R. 1047 would allow the President to exercise the authority under section 304 of the Convention on Cultural Property Implementation Act (19 USC 2603) with respect to any archaeological or ethnological material of Iraq as if Iraq were a State Party under that Act, with certain exceptions. H.R. 1047 also contains a definition of "archaeological or ethnological material of Iraq."

Intellectual Property Rights Protection

H.R. 1047 also contains provisions relating to the protection of intellectual property rights (IPR). These provisions would (partial list):

conform the Special 301 timetable to the WTO dispute settlement timetable and require the U.S. Trade Representative (USTR) to make its Special 301 determination not later than 30 days after the Trade-Related Aspects of Intellectual Property Rights (TRIPs) dispute settlement proceeding is completed;

set up a formal process whereby interested parties could challenge Caribbean Basin Economic Recovery Act (CBERA)/U.S.-Caribbean Basin Trade Partnership Act (CBTPA) beneficiary country fulfillment of eligibility criteria for benefits under these programs, etc.; and

conform certain Generalized System of Preferences (GSP), CBERA, CBTPA, ATPA, and Andean Trade Promotion and Drug Eradication Act (ATPDEA) beneficiary intellectual property criteria to that already pertaining to intellectual property in the Special 301 provision of the Trade Act of 1974.

(See ITT's Online Archives or 03/11/04, 03/12/04, 03/18/04, 03/19/04, 03/24/04, 04/01/04, 04/02/04, 04/05/04, 04/06/04, 04/16/04, 04/20/04, and 04/21/04 news, 04031105, 04031215, 04031820, 04031910, 04032415, 04040115, 04040205, 04040520, 04040620, 04041625, 04042020, and 04042120, for Parts I-XII of this series of summaries on the Senate-passed version of H.R. 1047.)

Senate-passed version of H.R. 1047 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h1047eas.txt.pdf.