President Signs into Law FY 2006 Appropriations Bill for Commerce, USTR, ITC, Etc.

P.L. 109-108 provides fiscal year (FY) 2006 funding for the Commerce Department, State Department, Office of the U.S. Trade Representative (USTR), the International Trade Commission (ITC), etc.

Highlights from the Conferees Joint Explanatory Statement on Conference Version of H.R. 2862

Highlights of the House-Senate conferees joint explanatory statement on H.R. 2862 include (partial list):

USTR. IPR.According to the joint explanatory statement, the conferees note the FY 2005 Act included direction to create the position of Chief Negotiator for Intellectual Property Enforcement and directs the USTR to report on the impact of this position no later than February 3, 2006.

Commerce Department. China compliance. The joint explanatory statement also directs the International Trade Administration (ITA) to submit a report to Congress no later than January 1, 2006 describing the resources, accomplishments, and FY 2006 work plan for the Office of China Compliance.

Drawback for dumping cases. The conferees also reaffirm that drawback adjustments in antidumping cases are to be granted by the Commerce Department only to the extent necessary to offset import duties that are paid on inputs used in the production of merchandise sold in the home market. The conferees state that they understand that the Commerce Department is currently reviewing the existing policy and has published a request for comments in the Federal Register. The conferees state that they expect the Commerce Department to ensure that current rules are adhered to until a new policy is established.

(See ITT's Online Archives or 07/06/05 news, 05070625, for BP summary of ITA notice seeking comments on this proposed change and 08/04/05 news, 05080440, for BP summary of ITA notice extending the comment period on the proposed change.)

Socks. The joint explanatory statement directs the Census Bureau to include socks in its quarterly Current Industrial Reports on Apparel, and to produce a one-time annual report for 2005 domestic sock production.

Textile Centers.Within the funding for the Commerce Department, the joint explanatory statement indicates specific funding amounts for the National Textile Centers, the Textile/Clothing Technology Corporation, the continuation of the international competitiveness program, the Textile Marking System, etc.

Highlights of Conference Version of H.R. 2862

Highlights of the Conference Version of H.R. 2862 include the following provisions (partial list):

U.S.-China Economic and Security Review Commission responsibilities. The conference version states that the responsibilities of the U.S.-China Economic and Security Review Commission include the exclusive investigation and reporting on various areas, including (partial list):

U.S.-China agreements on prison labor imports and intellectual property rights. The degree of non-compliance by China with agreements between the U.S. and China on prison labor imports and intellectual property rights and U.S. enforcement policies with respect to such agreements; and

China's WTO compliance. The compliance of China with its accession agreement to the WTO.

Firearm exports to Canada without a license. The conference version states that none of the funds appropriated may be expended or obligated in connection with requiring an export license for the export to Canada of components, parts, accessories, or attachments for firearms listed in Category I, 22 CFR 121.1 (as it existed on April 1, 2005) with a total value not exceeding $500 wholesale in any transaction, provided that certain conditions are met by the exporting party for such articles.

The conference version states that District Directors of Customs and postmasters shall permit the permanent or temporary export without a license of any unclassified articles specified above to Canada for end use in Canada or return to the U.S. or temporary import of Canadian-origin items from Canada for end use in the U.S. or return to Canada for a Canadian citizen.

The conference version of H.R. 2862 further states that the President may require export licenses under this section on a temporary basis if the President determines, upon publication in the Federal Register, that the Government of Canada has implemented or maintained inadequate import controls for the articles specified above, such that a significant diversion of such articles has and continues to take place for use in international terrorism or in the escalation of a conflict in another nation.

(See conference version of H.R. 2862 for complete details on this provision.)

Patents in new bilateral or multilateral agreements. The conference version states that none of the funds may be used to include in any new bilateral or multilateral agreement the text of:

paragraph 2 of article 16.7 (patents) of the U.S.-Singapore Free Trade Agreement (FTA);

paragraph 4 of article 17.9 (patents) of the U.S.-Australia FTA; or

paragraph 4 of article 15.9 (patents) of the U.S.-Morocco FTA.

WTO negotiations on monies from dumping, etc.The appropriations language for the Commerce Department and the USTR states that negotiations shall be conducted within the World Trade Organization (WTO):

to recognize the rights of members to distribute monies collected from antidumping and countervailing duties; and

consistent with the negotiating objectives contained in the Trade Act of 2002, P.L. 107-210.

Trade-related funding provisions.Highlights of trade-related funding provisions in the conference version of H.R. 2862 include (partial list):

$44,779,000 would be appropriated for the USTR

$62,752,000 would be appropriated for the ITC

$406,925,000 would be appropriated for the necessary expenses for international trade activities of the Commerce Department

Of the amount appropriated to the Commerce Department, $76,000,000 would be for the Bureau of Industry and Security (BIS), of which $14,767,000 shall be for inspections and other activities related to national security

No funds shall be available to promote the sale or export of tobacco or tobacco products, or to seek the reduction or removal by any foreign country of restrictions on the marketing of tobacco or tobacco products, except for restrictions that are not applied equally to all tobacco or tobacco products of the same type.

Conference version of H.R. 2862, including joint explanatory statement, available at

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_reports&docid=f:hr272.109.pdf.