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Details of the House- and Senate-Passed Conference Version of Miscellaneous Trade Bill (Part IX)

On November 19, 2004, the Senate passed the conference version of H.R. 1047, the Miscellaneous Trade and Technical Corrections Act of 2004. The House passed the conference version of H.R. 1047 on October 8, 2004. The conference version of H.R. 1047 has now been cleared for the White House.

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This is Part IX of a multi-part series of summaries on the conference version of H.R. 1047 and highlights the following amendments:

Regional Value-Content under U.S.-Chile Free Trade Agreement

The conference version would amend paragraph (1) of section 202(d) (Regional Value-Content) of the U.S.-Chile Free Trade Agreement Implementation Act (19 USC 3805 note), so that it states that:

(1) In General - For purposes of subsection (a)(1)(B) <(a)(2)>, the regional value-content of a good referred to in Annex 4.1 of the FTA shall be calculated, at the choice of the person claiming preferential tariff treatment for the good, on the basis of the build-down method described in paragraph (2) or the build-up method described in paragraph (3), unless otherwise provided in Annex 4.1 of the Agreement.

(Plusses indicate new text and carrots < > indicate stricken text.)

Definition of U.S. Vessel for ATPA Tuna Provision

The conference version would amend the definition of U.S. vessel as it pertains to the Andean Trade Preferences Act (ATPA) tuna provision (19 USC 3203(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)."

Section 337 - Unfair Methods of Competition

The conference version would amend 19 USC 1337(a)(2) to indicate that 19 USC 1337(a)(1)(E), regarding the importation into the U.S., the sale for importation, or the sale within the U.S. after importation by the owner, importer, or consigner, of an article that constitutes infringement of the exclusive rights in a design protected under 17 USC Chapter 13, applies only if an industry in the U.S., relating to the articles protected by the patent, copyright, trademark, mask work, or design concerned, exists or is in the process of being established.

Duty Exemptions for Returning Residents

The conference version would amend two of the duty exemptions for personal/household use articles imported by or for the account of returning residents in HTS Chapter 98, Subchapter IV as follows (Plusses indicate new text and carrots < > indicate stricken text.

HTS 9804.00.70 would be amended to read as follows (in relevant part):

Articles whether or not accompanying a person, not over $1600 <$1200> in aggregate fair market value in the country of acquisition ... if such person arrives directly or indirectly from such insular possessions, not more than $800 <400> of which shall have been acquired elsewhere than in such insular possessions <or up to $600 of which may have been acquired in one or more beneficiary countries>"

HTS 9804.00.72 would be amended to read as follows (in relevant part):

"Articles whether or not accompanying a person, not over $800 <$600> in aggregate fair market value in the country of acquisition, including -

(b) not more than 200 cigarettes, and not more than 100 cigars, if such person arrives directly from a beneficiary country, <not more than $400 of which shall have been acquired elsewhere than in beneficiary countries> ..."

Correction to HTS Chapter 98 Notes

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

See ITT's Online Archives or 10/19/04, 10/20/04, 10/22/04, 11/01/04, 11/02/04, 11/30/04, 12/01/04, and 12/02/04 news, 04101905, 04102005, 04102225, 04110115, 04110225, 04113020, 04120105, and 04120210, for Parts I-VIII.

Legislative text of the Conference version of H.R. 1047 available at http://waysandmeans.house.gov/media/pdf/hr1047/HR1047confreptlegtext.pdf.

Joint explanatory statement ofconference committee regarding H.R. 1047 available at

http://waysandmeans.house.gov/media/pdf/hr1047/hr1047confreptexplanstatement.pdf.