Balanced Trade Restoration Act of 2006 - Directs the Secretary of Commerce to establish a Balanced Trade Certificate Program within the International Trade Administration of the Department of Commerce. Provides under such Program for the issuance of certificates to measure and control U.S. imports and exports to achieve a balance in the foreign trade of the United States. Exempts importers of oil or gas during the first five years of the program.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3899 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3899
To achieve balance in the foreign trade of the United States, through a
market-based system of tradable certificates, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 14, 2006
Mr. Dorgan (for himself and Mr. Feingold) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To achieve balance in the foreign trade of the United States, through a
market-based system of tradable certificates, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Balanced Trade Restoration Act of
2006''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Since the 1990s, the United States has experienced
record trade deficits that has made the United States the
largest debtor country in the world.
(2) In 2005, the merchandise trade deficit of the United
States was a record $767,000,000,000, and in 2006, the
merchandise trade deficit of the United States is projected to
surpass the record set in 2005.
(3) The surging trade deficits could soon create a balance
of payments crisis for the United States, which could wreak
havoc with the economy of the United States.
(4) Article XII of the General Agreement on Tariff and
Trade (GATT 1994), annexed to the Agreement Establishing the
World Trade Organization entered into on April 15, 1994,
permits any member country to restrict the quantity or value of
imports in order to safeguard the external financial position
and the balance of payments of the member country.
(5) In accordance with Article XII of the GATT 1994, the
United States should take steps to restore balance to its
merchandise trade, and safeguard its external financial
position and its balance of payments.
(6) The imposition of import restrictions should be phased
in to allow the economy of the United States to absorb the
impact of import restrictions with minimal disruption.
SEC. 3. DEFINITIONS.
In this Act:
(1) Balanced trade certificate; certificate.--The terms
``Balanced Trade Certificate'' and ``Certificate'' mean a
certificate issued pursuant to section 4 that provides the
holder of the certificate with a license to import into the
United States a good with an appraised value that is equal to
or less than the face value of the certificate.
(2) Department.--The term ``Department'' means the
Department of Commerce.
(3) Oil or gas.--The term ``oil or gas'' means any good
classifiable under--
(A) heading 2709 of the Harmonized Tariff Schedule
of the United States (relating to petroleum oils and
oils obtained from bituminous minerals, crude);
(B) heading 2710 of the Harmonized Tariff Schedule
of the United States (relating to petroleum oils and
oils obtained from bituminous minerals, other than
crude); and
(C) heading 2711 of the Harmonized Tariff Schedule
of the United States (relating to light oils and
preparations).
(4) Program.--The term ``Program'' means the Balanced Trade
Certificate Program established under section 4.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
SEC. 4. ESTABLISHMENT OF BALANCED TRADE PROGRAM.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall, in cooperation with the
Secretary of Homeland Security, establish a Balanced Trade Certificate
Program within the International Trade Administration of the
Department. The purpose of the Program is to create gradually balance
between the dollar value of goods imported into the United States and
goods exported from the United States.
(b) Regulatory Authority.--The Secretary, in cooperation with the
Secretary of Homeland Security, shall promulgate regulations in
accordance with section 5 that provide for--
(1) issuing Certificates to exporters;
(2) collecting Certificates from importers;
(3) valuing the Certificates issued and collected; and
(4) trading Certificates.
SEC. 5. OPERATION OF THE PROGRAM.
(a) Exporters.--
(1) Issuance of certificates.--The Program established
under section 4 shall provide for the issuance of a Certificate
to any person who exports a good from the United States with a
face value equivalent to a multiple of the appraised value of
the good determined pursuant to paragraph (2).
(2) Value of balanced trade certificates.--
(A) Determination of value.--The Secretary shall
establish a system for the valuation of Certificates.
To the extent practicable, the value of a Certificate
shall be based upon the appraised value declared on the
shipper's export declaration (SED), in accordance with
subparagraph (B);
(B) System of valuation.--The value of a
Certificate shall be determined in accordance with the
following table:
If a Certificate is issued: The face value of the Certificate is an amount equal to:
During the first year the Program is in 140% of the appraised value of the good exported.
operation
During the second year the Program is in 130% of the appraised value of the good exported.
operation
During the third year the Program is in 120% of the appraised value of the good exported.
operation
During the fourth year the Program is in 110% of the appraised value of the good exported.
operation
After the fourth year the Program is in 100% of the appraised value of the good exported
operation
(b) Importers.--
(1) Submission requirement.--Except as described in
paragraph (5), any person who imports a good into the United
States shall submit to the Secretary of Homeland Security, not
later than 90 days after the date on which the good enters the
United States, a Certificate with an aggregate face value equal
to or greater than the appraised value of the good imported
pursuant to paragraph (2).
(2) Valuation of imported goods.--The Secretary shall
establish a method for the valuation of goods imported into the
United States. The method may include the use of the declared
dollar value of the goods on the Entry Summary (United States
Customs and Border Protection Form 7501).
(3) Collection of certificates.--The Secretary shall
establish a system for the collection of Certificates submitted
by importers to the Secretary of Homeland Security.
(4) Penalty for failure to supply certificates.--If a
person imports a good into the United States and fails to
submit a Certificate with an aggregate face value equal to, or
greater than, the value of the good imported as required by
paragraph (1), the Secretary of Homeland Security shall--
(A) suspend the person from importing any good
until such time as a Certificate required by paragraph
(1) is submitted; and
(B) impose a penalty equal to 3 times the appraised
value of the good imported.
(5) Exception for oil or gas.--
(A) Adjustment period.--During the period that
begins on the date of the enactment of this Act and
ends 5 years after such date, paragraph (1) shall not
apply to a person who imports oil or gas into the
United States.
(B) Gradual valuation.--At the end of the period
described in subparagraph (A), any person who imports
oil or gas into the United States shall submit to the
Secretary of Homeland Security, not later than 90 days
after the date on which the oil or gas enters the
United States, a Certificate with an aggregate face
value equal to, or greater than, the appraised value of
the oil or gas imported pursuant to paragraph (2),
adjusted in accordance with the following table:
If the oil or gas is imported: The aggregate face value of the Certificate required to
import the oil or gas is:
During the sixth year the Program is in 60% of the appraised value of the oil or gas imported.
operation
During the seventh year the Program is in 70% of the appraised value of the oil or gas imported.
operation
During the eighth year the Program is in 80% of the appraised value of the oil or gas imported.
operation
During the ninth year the Program is in 90% of the appraised value of the oil or gas imported.
operation
After the ninth year the Program is in 100% of the appraised value of the oil or gas imported.
operation
(c) Management of Certificates.--
(1) Certificates removed from circulation.--Upon the
receipt of a Certificate from a person importing a good, the
Secretary of Homeland Security, in cooperation with the
Secretary, shall permanently remove the Certificate from
circulation.
(2) Transferability and limitation on validity of
certificates.--A Certificate issued pursuant to this Act shall
be--
(A) fully transferable; and
(B) valid for 365 days from the date the
Certificate is issued.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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