ADMINISTRATION OF TARIFF-RATE QUOTAS.

SEC. 404. ADMINISTRATION OF TARIFF-RATE QUOTAS. (a) Orderly Marketing.—In implementing the tariff-rate quotas set out in Schedule XX for the entry, or withdrawal from warehouse, for consumption of goods in the United States, the President shall take such action as may be necessary to ensure that imports of agricultural products do not disrupt the orderly marketing of commodities in the United States. (b) Inadequate Supply.—Where imports of an agricultural product are subject to a tariff-rate quota, and where the President determines and proclaims that the supply of the same or directly competitive or substitutable agricultural product will be inadequate, because of a natural disaster, disease, or minor national market disruption, to meet domestic demand at reasonable prices, the President may temporarily increase the quantity of imports of the 108 STAT. 4960agricultural product that is subject to the in-quota rate of duty established under the tariff-rate quota. (c) Monitoring.—The Secretary of Agriculture shall monitor the domestic supply of agricultural products subject to a tariff rate quota as the Secretary considers appropriate and shall advise the President when the domestic supply of the products and substitutable products combined with the estimated imports of the products under the tariff-rate quota may be inadequate to meet domestic demand at reasonable prices. (d) Coverage of Tariff-Rate Quotas.— (1) Exclusions.— The President may, subject to terms and conditions determined appropriate by the President, provide that the entry, or withdrawal from warehouse, for consumption in the United States of an agricultural product shall not be subject to the over-quota rate of duty established under a tariff-rate quota if the agricultural product— (A) is imported by, or for the account of, any agency of the United States or of any foreign embassy; (B) is imported as a sample for taking orders, for the personal use of the importer, or for the testing of equipment; (C) is a commercial sample or is entered for exhibition, display, or sampling at a trade fair or for research; or (D) is a blended syrup provided for in subheadings 1702.20.28, 1702.30.28, 1702.40.28, 1702.60.28, 1702.90.58, 1806.20.92, 1806.20.93, 1806.90.38, 1806.90.40, 2101.10.38, 2101.20.38, 2106.90.38, or 2106.90.67 of Schedule XX, if entered from a foreign trade zone by a foreign trade zone user whose facilities were in operation on June 1, 1990, to the extent that the annual quantity entered into the customs territory from such zone does not contain a quantity of sugar of nondomestic origin greater than the Quantity authorized by the Foreign Trade Zones Board for processing in that zone during calendar year 1985. (2) Reclassification.—Subject to the consultation and lay-over requirements of section 115, the President may proclaim a modification to the coverage of a tariff-rate quota for any agricultural product if the President determines the modification is necessary or appropriate to conform the tariff-rate quota to Schedule XX as a result of a reclassification of any item by the Secretary of the Treasury. (3) Allocation.—The President may allocate the in-quota quantity of a tariff-rate quota for any agricultural product among supplying countries or customs areas and may modify any allocation as determined appropriate by the President. (4) Bilateral agreement.—The President may proclaim an increase in the tariff-rate quota for beef if the President determines that an increase is necessary to implement— (A) the March 24, 1994, agreement between the United States and Argentina; or (B) the March 9, 1994, agreement between the United States and Uruguay. (5) Continuation of sugar headnote.—The President is authorized to proclaim additional United States note 3 to chapter 17 of the HTS, and to proclaim the modifications to the note, as determined appropriate by the President to reflect Schedule XX. 108 STAT. 4961 (e) Conforming Amendments.— (1) Section 213 of the Caribbean basin economic recovery act.—Section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d)) is amended to read as follows: “(d) Tariff-Rate Quotas.—No quantity of an agricultural product subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for duty-free treatment under this title.”. (2) Section 204 of the andean trade preference act.—Section 204 of the Andean Trade Preference Act (19 U.S.C. 3203) is amended by adding at the end the following new subsection: “(g) Tariff-Rate Quotas.—No quantity of an agricultural product subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for duty-free treatment under this Act”. (3) GSP.—Section 503 of the Trade Act of 1974 (19 U.S.C. 2463) is amended by adding at the end the following new subsection: “(d) Tariff-Rate Quotas.—No quantity of an agricultural product subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for duty-free treatment under this title.”. (4) General note 3(a) to the hts.—General Note 3(a)(iv) to the HTS is amended by adding at the end the following: “(F) No quantity of an agricultural product that is subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for duty-free treatment under this paragraph.”. (5) Duty drawback.— (A) Generally.—Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by adding at the end the following new subsection: “(w) Limited Applicability for Certain Agricultural Products.—No drawback shall be available with respect to an agricultural product subject to the over-quota rate of duty established under a tariff-rate quota, except pursuant to subsection (j)(1).”. (B) Effective date.—The amendment made by subparagraph (A) shall take effect on the earlier of the date of entry into force of the WTO Agreement with respect to the United States or January 1, 1995. (6) Restrictions on imported peanuts.—Paragraph (6) of section 358e(f) of the Agricultural Adjustment Act or 1938 (7 U.S.C. 1359a(f)(6)) is amended by inserting after “issues a proclamation” the following: “under section 404(b) of the Uruguay Round Agreements Act expanding the quantity of peanuts subject to the in-quota rate of duty under a tariff rate quota, or”.