FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

SEC. 1505. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM. (a) Definitions.—Section 111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is amended— (1) in subsection (k), by striking “and” at the end; (2) in subsection (1), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: “(m) the term ‘imported dairy product’ means any dairy product that is imported into the United States (as defined in subsection (l)), including dairy products imported into the United States in the form of— “(1) milk, cream, and fresh and dried dairy products; “(2) butter and butterfat mixtures; “(3) cheese; and “(4) casein and mixtures; (n) the term ‘importer’ means a person that imports an imported dairy product into the United States; and (o) the term ‘Customs’ means the United States Customs Service.”.116 STAT. 208 (b) Representation of Importers on Board.—Section 113(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is amended— (1) by inserting “National Dairy Promotion and Research Board.—” after “(b)”; (2) by designating the first through ninth sentences as paragraphs (1) through (5) and paragraphs (7) through (10), respectively, and indenting the paragraphs appropriately; (3) in paragraph (2) (as so designated), by striking “Members” and inserting “Except as provided in paragraph (6), the members”; (4) by inserting after paragraph (5) (as so designated) the following: “(6) Importers.— “(A) Initial representation.—In making initial appointments to the Board of importer representatives, the Secretary shall appoint 2 members who represent importers of dairy products and are subject to assessments under the order. “(B) Subsequent representation.—At least once every 3 years after the initial appointment of importer representatives under subparagraph (A), the Secretary shall review the average volume of domestic production of dairy products compared to the average volume of imports of dairy products into the United States during the previous 3 years and, on the basis of that review, shall reapportion importer representation on the Board to reflect the proportional share of the United States market by domestic production and imported dairy products. “(C) Additional members; nominations.—The members appointed under this paragraph— “(i) shall be in addition to the total number of members appointed under paragraph (2); and “(ii) shall be appointed from nominations submitted by importers under such procedures as the Secretary determines to be appropriate.”; and (5) in paragraph (8) (as so designated), by striking “is produced” and inserting “is produced as well as importers of dairy products”. (c) Budgets.—Section 113(e) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)) is amended— (1) by striking “(e)” and inserting: “(e) Budgets.— “(1) Preparation and submission.—”; (2) by striking the last sentence; and (3) by adding at the end the following: “(2) Foreign market efforts.—The order shall authorize the Board to expend in the maintenance and expansion of foreign markets an amount not to exceed the amount collected from United States producers for a fiscal year. Of those funds, for each of the 2002 through 2007 fiscal years, the Board's budget may provide for the expenditure of revenues available to the Board to develop international markets for, and to promote within such markets, the consumption of dairy products produced or manufactured in the United States.”. 116 STAT. 209 (d) Importer Assessment.—Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended— (2) (1) by inserting “Assessments.—” after “(g)”; (2) by designating the first through fifth sentences as paragraphs (1) through (5), respectively, and indenting appropriately; (3) in paragraph (3) (as so designated)— (A) by inserting “for milk produced in the United States and imported dairy products” after “The rate of assessment”; and (B) by inserting before the period at the end the following: “, as determined by the Secretary”; and (4) by adding at the end the following: “(6) Importers.— “(A) In general.—The order shall provide that each importer of imported dairy products shall pay an assessment to the Board in the manner prescribed by the order. “(B) Time for payment.—The assessment on imported dairy products shall be paid by the importer to Customs at the time the entry documents are filed with Customs. Customs shall remit the assessments to the Board. For purposes of this subparagraph, the term ‘importer’ includes persons who hold title to foreign-produced dairy products immediately upon release by Customs, as well as persons who act on behalf of others, as agents, brokers, or consignees, to secure the release of dairy products from Customs. “(C) Use of assessments on imported dairy products.—Assessments collected on imported dairy products shall not be used for foreign market promotion.”. (e) Records.—Section 113(k) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by striking “person receiving” and inserting “importer of imported dairy products, each person receiving”. (f) Importer Eligibility To Vote in Referendum.—Section 116(b) of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is amended— (1) in the first sentence— “(A) by inserting after “of producers” the following: “and importers”; and “(B) by inserting after “the producers” the following: “and importers”; and (2) in the second sentence, by inserting after “commercial use” the following: “and importers voting in the referendum (who have been engaged in the importation of dairy products during the same representative period, as determined by the Secretary)”. (g) Order Implementation and International Trade Obligations.—Section 112 of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4503) is amended by adding at the end the following: “(d) Order Implementation and International Trade Obligations.—The Secretary, in consultation with the United States Trade Representative, shall ensure that the order is implemented in a manner consistent with the international trade obligations of the Federal Government.”.116 STAT. 210 (h) Conforming Amendments To Reflect Addition of Importers.—The Dairy Production Stabilization Act of 1983 is amended— (1) in section 110(b) (7 U.S.C. 4501(b))— (A) in the first sentence— (i) by inserting after “commercial use” the following: “and on imported dairy products”; and (ii) by striking “products produced in the United States.” and inserting “products.”; and (B) in the second sentence, by inserting after “produce milk” the following: “or the right of any person to import dairy products”; and (2) in section 111(d) (7 U.S.C. 4502(d)), by striking “produced in the United States”.