,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #fahc  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bg1        
#bjaf,mr4 ,pascrell 7= himself & ,mr4   
,jones7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to neutralize !           
discrim9atory effect ( any c\ntry t     
employs indirect taxes & grants rebates 
( ! same ^u export if ,unit$ ,/ates     
trade negotiat+ objectives reg>d+ bord] 
tax treatm5t are n met4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,bord] ,tax  
,equity ,act ( #bjaf4  #b4 ,f9d+s &     
decl>ations ( policy  7a7 ,f9d+s        
,congress makes ! foll[+ f9d+s3  7#a7 ,!
 ,unit$ ,/ates l>gely relies on a direct
 tax sy/em1 :]eas #afd c\ntries curr5tly
 employ "o p>ticul> =m ( indirect tax   
kn[n z value-add$ taxes 7,,vat7 z well z
 direct taxes4 ,! worldwide ,,vat av]age
 9 #bjae 0 #ae p]c5t1 & 9 c\ntries ( !  
,european ,union x 0 #ba p]c5t4  7#b7   
,"u ! rules ( ! ,_w ,trade ,organization
 7,,wto71 direct taxes1 su* z corporate 

income taxes1 if rebat$ or refund$ ^u ! 
export ( goods1 are view$ z export      
subsidies & prohibit$ on mo/ goods & are
 at lea/ pot5tially actionable on all   
goods4 ,h[ev]1 indirect taxes1 su* z    
sales taxes & ,,vat1 may be rebat$ or   
refund$ ^u ! export ( goods & su* rebate
 or refund is n def9$ z con/itut+ a     
subsidy & h5ce is n actionable "u ,,wto 
rules4  7#c7 ,at pres5t1 !re are no     
,,wto rules on subsidies z appli$ to    
trade 9 s]vices4 ,h[ev]1 a numb] (      
c\ntries curr5tly impose taxes on !     
import ( s]vices & exempt or rebate or  
refund taxes ^u ! export ( s]vices1 to !
 disadvantage ( ,unit$ ,/ates s]vice    
provid]s4  7#d7 ,! disp>ate treatm5t (  
bord] taxes detrim5tally affects ,unit$ 
,/ates agricultural produc]s1           
manufactur]s1 & s]vice provid]s 9 t--   
7,a7 refunds ( indirect taxes           
effectively act z export subsidies to   
=eign export]s2 &  7,b7 ,unit$ ,/ates   
export]s are subject to d\ble taxation1 
by pay+ direct taxes on dome/ic         

production 9 ! ,unit$ ,/ates & hav+ _!  
export$ product or s]vice face a bord]  
tax 9 ! import+ c\ntry consi/+ (        
indirect taxes4  7#e7 ,z "o example1    
gov]nm5ts ( memb] /ates ( ! ,european   
,union1 ) an av]age ,,vat ( #ba p]c5t 9 
#bjae & total exports to ! ,unit$ ,/ates
 ( #dbg4e billion1 paid _! produc]s an  
e/imat$ #ia4i billion ( ,,vat rebates on
 goods export$ to ! ,unit$ ,/ates 9     
#bjae4 ,^! gov]nm5ts collect$ f ,unit$  
,/ates produc]s an e/imat$ #bh4g billion
 ( ,,vat-equival5t taxes on _! import$  
goods4 ,= s]vices1 ^! gov]nm5ts paid _! 
produc]s an e/imat$ #dg4f billion (     
,,vat-equival5t taxes on s]vices export$
 to ! ,unit$ ,/ates & collect$ f ,unit$ 
,/ates produc]s an e/imat$ #cf4c billion
 ( ,,vat-equival5t taxes on s]vices     
import$ f ! ,unit$ ,/ates4 ,! comb9$    
goods & s]vices disadvantage 9 #bjae 0  
#bjd billion4  7#f7 ,= m ?an #de ye>s1  
,unit$ ,/ates bus9esses h compla9$ (    
bord] tax inequity &1 s9ce #aifh1 prior 
,unit$ ,/ates adm9i/rations &           

,congresses h s\ght to resolve x4  7#g7 
,congress has repeat$ly recogniz$ !     
prejudicial effect ( ! disp>ate treatm5t
 ( bord] taxes ) respect to goods & has 
direct$ ! ,unit$ ,/ates to seek a       
negotiat$ solution3  7,a7 ,9 pass+ !    
,trade ,act ( #aigd 7#ai ,u4,s4,c4 #baja
 et seq471 ,congress s\ght revision (   
,,gatt articles ) respect to ! treatm5t 
( bord] adju/m5ts = int]national taxes  
to r$ress ! disadvantage to c\ntries    
rely+ prim>ily on direct r ?an indirect 
taxes = rev5ue ne$s44  7,b7 ,9 section  
#aaja7;b77#af7 ( ! ,omnibus ,trade &    
,competitiv5ess ,act ( #aihh 7#ai       
,u4,s4,c4 #bija7;b77#af771 section      
#bajb7;b77#ae7 ( ,bip>tisan ,trade      
,promotion ,au?ority ,act ( #bjjb 7#ai  
,u4,s4,c4 #chjb7;b77#ae771 & section    
#ajb7;b77#ah7 ( ! ,bip>tisan            
,congressional ,trade ,priorities &     
,acc\ntability ,act ( #bjae 7#ai        
,u4,s4,c4 #dbja7;b77#ah77 ,congress     
decl>$ t a pr9cipal trade negotiat+     
objective ( ! ,unit$ ,/ates is to obta9 

a revision ( ,,wto rules ) respect to ! 
treatm5t ( bord] adju/m5ts = int]nal    
taxes to r$ress ! disadvantage to       
c\ntries rely+ prim>ily on direct taxes 
= rev5ue r ?an indirect taxes4  7#h7 ,! 
disp>ate treatm5t ( bord] taxes is      
arbitr>y1 inequitable1 causes economic  
di/ortions bas$ only on ! type ( tax    
sy/em us$ by a c\ntry1 & is a prim>y    
ob/acle to m balanc$ trade relations    
betwe5 ! ,unit$ ,/ates & its major trad+
 p>tn]s4  7b7 ,decl>ations ( policy     
,congress decl>es ! foll[+3 7#a7 ,x is  
critically necess>y t ! issue ( bord]   
taxes be address$ & resolv$ dur+ curr5t 
& future ,,wto negotiations4  7#b7 ,if  
su* ,,wto negotiations fail to a*ieve ! 
,unit$ ,/ates trade negotiat+ objective 
( revis+ rules ) respect to ! treatm5t (
 bord] taxes 9 ord] to r$ress !         
disadvantage to c\ntries rely+ prim>ily 
on direct taxes = rev5ue r ?an indirect 
taxes1 !n effective action ?r\gh        
legislation is w>rant$ giv5 ! massive & 
inequitable di/ortions to trade t ,unit$

 ,/ates agricultural produc]s1          
manufactur]s1 & s]vice provid]s face z a
 result ( bord] taxes4  #c4 ,reports on 
results ( ,,wto negotiations to revise  
,,wto rules reg>d+ bord] taxes & free   
trade agreem5ts reg>d+ bord] taxes  7a7 
,report on results ( ,,wto negotiations 
,to revise ,,wto rules reg>d+ bord]     
taxes  7#a7 ,report requir$ ,n lat] ?an 
#fj days aft] ! completion ( ,,wto      
negotiations1 or by ,janu>y #a1 #bjah1  
:i*ev] occurs fir/1 ! ,unit$ ,/ates     
,trade ,repres5tative %all submit to    
,congress a report c]tify+ :e!r or n ea*
 ( ! ,unit$ ,/ates trade negotiat+      
objectives reg>d+ bord] tax treatm5t1 z 
specifi$ 9 p>agraph 7#b71 has be5 met z 
a result ( su* negotiations4  7#b7      
,u4,s4 trade negotiat+ objectives reg>d+
 bord] tax treatm5t specifi$ ,! ,unit$  
,/ates trade negotiat+ objectives reg>d+
 bord] tax treatm5t specifi$ 9 ?is      
p>agraph are ! foll[+3  7,a7 ,) respect 
to trade 9 goods1 ! revision ( ,,wto    
rules ) respect to ! treatm5t ( bord]   

adju/m5ts = int]nal taxes to r$ress !   
disadvantage to c\ntries rely+ prim>ily 
on direct taxes = rev5ue r ?an indirect 
taxes1 z provid$ = 9 section            
#ajb7;b77#ah7 ( ! ,bip>tisan            
,congressional ,trade ,priorities &     
,acc\ntability ,act ( #bjae 7#ai        
,u4,s4,c4 #dbja7;b77#ah774  7,b7 ,)     
respect to trade 9 s]vices-- 7i7 !      
elim9ation ( ! disadvantage 9 trade 9   
s]vices t exi/s = c\ntries rely+        
prim>ily on direct taxes t are n adju/$ 
at ! bord] r ?an indirect taxes t are   
adju/$ at ! bord]2 &  7ii7 ! revision ( 
,,wto rules reg>d+ trade 9 s]vices to   
ensure t su* rules d n result 9 disp>ate
 treatm5t ( bord] adju/m5ts = int]nal   
taxes bas$ on ! direct or indirect      
nature ( su* taxes4  7#c7 ,def9ition ,9 
?is subsection1 ! t]ms ,,wto            
negotiations & negotiations mean any ,_w
 ,trade ,organization negotiations t may
 result 9 revisions to ,,wto rules to   
meet ! ,unit$ ,/ates trade negotiat+    
objectives reg>d+ bord] tax treatm5t1 z 

specifi$ 9 p>agraph 7#b74  7b7 ,report  
on free trade agreem5ts reg>d+ bord]    
taxes  7#a7 ,report requir$ ,n lat] ?an 
"o ye> aft] ! date ( ! enactm5t ( ?is   
,act1 ! ,unit$ ,/ates ,trade            
,repres5tative %all submit to ,congress 
a report c]tify+ :e!r or n ea* cov]$    
c\ntry t is a p>ty to a multilat]al1    
bilat]al1 & regional trade agreem5t t   
has ent]$ into =ce on or be=e su* date (
 enactm5t ) respect to ! ,unit$ ,/ates &
 su* cov]$ c\ntry is tak+ or has tak5 ! 
actions reg>d+ bord] tax treatm5t1 z    
specifi$ 9 p>agraph 7#b74  7#b7 ,actions
 reg>d+ bord] tax treatm5t specifi$ ,!  
actions reg>d+ bord] tax treatm5t       
specifi$ 9 ?is p>agraph are ! foll[+3   
7,a7 ,) respect to trade 9 goods1 !     
revision ( laws ( ! cov]$ c\ntry )      
respect to ! treatm5t ( bord] adju/m5ts 
= int]nal taxes to r$ress ! disadvantage
 to c\ntries rely+ prim>ily on direct   
taxes = rev5ue r ?an indirect taxes4    
7,b7 ,) respect to trade 9 s]vices-- 7i7
 ! elim9ation ( ! disadvantage 9 trade 9

 s]vices t exi/s = c\ntries rely+       
prim>ily on direct taxes t are n adju/$ 
at ! bord] r ?an indirect taxes t are   
adju/$ at ! bord]2 &  7ii7 ! revision ( 
laws ( ! cov]$ c\ntry reg>d+ trade 9    
s]vices to ensure t su* laws d n result 
9 disp>ate treatm5t ( bord] adju/m5ts = 
int]nal taxes bas$ on ! direct or       
indirect nature ( su* taxes4  7#c7      
,def9ition ,9 ?is subsection1 ! t]m     
cov]$ c\ntry means a c\ntry t relies    
prim>ily on indirect taxes t are adju/$ 
at ! bord] r ?an direct taxes t are n   
adju/$ at ! bord]4  #d4 ,tax on imports 
f =eign c\ntries ) an indirect tax sy/em
  7a7 ,9 g5]al ,subtitle ,d ( *apt] #cf 
( ! ,int]nal ,rev5ue ,code 7#bf         
,u4,s4,c4 #ddfa et seq47 is am5d$ by    
add+ at ! end ! foll[+ new sub*apt]3  ,e
 ,tax on ,imports ,f ,=eign ,c\ntries ,)
 ,an ,indirect ,tax ,sy/em  ,sec4 #ddia4
 ,imposition ( tax4  #ddia4 ,imposition 
( tax  7a7 ,g5]al rule ,!re is h]eby    
impos$ a tax on imports ( goods &       
s]vices f any =eign c\ntry t employs an 

indirect tax sy/em & grants rebates (   
indirect taxes paid on goods or s]vices 
export$ f t c\ntry4  7b7 ,am\nt ( tax ,!
 am\nt ( ! tax impos$ by subsection 7a7 
on an import$ good or s]vice %all be an 
am\nt equal to ! excess (--  7#a7 !     
indirect taxes t are rebat$ or n paid on
 ! good or s]vice ^u its export1 ov]    
7#b7 any indirect taxes impos$ on ! good
 or s]vice at ! bord] ( ! ,unit$ ,/ates4
  7c7 ,liability & "t ( imposition ( tax
  7#a7 ,liability ,! tax impos$ by      
subsection 7a7 on a good or s]vice %all 
be paid by ! import] ( su* good or      
s]vice4  7#b7 ,"t ( imposition ,! tax   
impos$ by subsection 7a7 %all be impos$ 
on imports at ! "t ( entry4  7d7 ,p]iod 
( ,applicability ,! tax impos$ by       
subsection 7a7 %all apply dur+ ! p]iod  
beg9n+ z prescrib$ 9 section #f7a7 ( !  
,bord] ,tax ,equity ,act ( #bjaf & end+ 
on ! date on :i* ! ,unit$ ,/ates ,trade 
,repres5tative c]tifies to ,congress t !
 ,unit$ ,/ates trade negotiat+          
objectives ( equitable bord] tax        

treatm5t h be5 met4  7e7 ,special acc\nt
 ,! tax on imports "u subsection 7a7    
%all be collect$ by ,u4,s4 ,cu/oms &    
,bord] ,protection & deposit$ into a    
special acc\nt4 ,?is special acc\nt %all
 be ! s\rce ( paym5ts to qualifi$ ,unit$
 ,/ates export]s "u section #cad ( !    
,t>iff ,act ( #aicj4  7f7 ,def9itions ,=
 purposes ( ?is sub*apt]-- 7#a7 ,import]
 ,! t]m import] means--  7,a7 z su* t]m 
relates to imports ( goods1 "o ( !      
p>ties eligible to file ! requir$ cu/oms
 entry docum5tation or in=mation        
pursuant to section #dhd7;a77#b77;,b7 ( 
! ,t>iff ,act ( #aicj 7#ai ,u4,s4,c4    
#adhd7;a77#b77;,b771 &  7,b7 z su* t]m  
relates to imports ( s]vices1 ! import] 
( ! s]vice z def9$ by ! ,secret>y 9     
rules & regulations promulgat$ "u ?is   
sub*apt]4  7#b7 ,"t ( entry ,! t]m "t ( 
entry means-- 7,a7 z relates to imports 
( goods1 ! "t g5]ally specifi$ 9 section
 #dhd7;a77#b77;,a7 ( ! ,t>iff ,act (    
#aicj 7#ai ,u4,s4,c4 #adhd7;a77#b77;,a77
 & prescrib$ 9 regulations 7#ai         

,c4,f4,r4 #ada4fh71 &  7,b7 z relates to
 imports ( s]vices1 ! "t specifi$ by !  
,secret>y 9 rules & regulations         
promulgat$ "u ?is sub*apt]4  7#c7       
,indirect tax sy/em & grants rebates (  
indirect taxes ,a =eign c\ntry employs  
an indirect tax sy/em & grants rebates (
 indirect taxes paid on goods or s]vices
 export$ f t c\ntry if su* c\ntry       
imposes indirect taxes 7includ+ sales   
taxes & value-add$ taxes 7,,vat77 on    
goods or s]vices1 & p]mits a rebate (   
su* indirect taxes paid on goods or     
s]vices export$ f su* c\ntry4  7#d7     
,value-add$ taxes 7vat7 ,! t]m          
value-add$ taxes means an indirect g5]al
 consumption tax t is levi$ by ! export+
 c\ntry on ! value add$ to goods &      
s]vices 9 t c\ntry at multiple /ages ( !
 production & supply *a94 ,?is type (   
tax is also ref]r$ to z a goods &       
s]vices tax 7,,g/74  7g7 ,regulations ,!
 ,secret>y may prescribe su* rules &    
regulations z are necess>y to c>ry out  
?is section4  4  7b7 ,cl]ical am5dm5t ,!

 table ( sub*apt]s = subtitle ,d ( *apt]
 #cf ( su* ,code is am5d$ by add+ at !  
end ( ! foll[+ new item3  ,sub*apt] ,e4 
,tax on ,imports ,f ,=eign ,c\ntries ,) 
an ,indirect ,tax ,sy/em  4  #e4        
,paym5ts to ,unit$ ,/ates export]s to   
neutralize discrim9atory effect ( bord] 
taxes impos$ by import+ c\ntries ,"p    
,,ii ( title ,,iii ( ! ,t>iff ,act (    
#aicj 7#ai ,u4,s4,c4 #acje et seq47 is  
am5d$ by ins]t+ aft] section #cac !     
foll[+3  #cad4 ,paym5ts to ,unit$ ,/ates
 export]s to neutralize discrim9atory   
effect ( bord] taxes impos$ by import+  
c\ntries  7a7 ,paym5ts requir$  7#a7 ,9 
g5]al ,^u exportation ( goods or s]vices
 f ! ,unit$ ,/ates to any =eign c\ntry t
 employs an indirect tax sy/em & imposes
 or applies indirect taxes on imports ( 
goods or s]vices at ! bord]1 ! ,secret>y
 ( ! ,treasury1 act+ ?r\gh !            
,commission] ( ,u4,s4 ,cu/oms & ,bord]  
,protection1 %all1 if reque/$ by !      
export]1 pay to ! export] an am\nt equal
 to ! am\nt ( indirect taxes t ! import+

 =eign c\ntry imposes or applies at !   
bord] to su* goods or s]vices1 m9us any 
,unit$ ,/ates taxes paid on su* goods or
 s]vices t h be5 rebat$ or fund$ ^u     
exportation4  7#b7 ,in=mation to be     
includ$ 9 reque/ ,an export] :o reque/s 
a paym5t "u p>agraph 7#a7 %all1 9 su*   
reque/1 id5tify ! indirect taxes impos$ 
by ! import+ =eign c\ntry & pres5t pro( 
( ! paym5t ( su* taxes to ! import+     
=eign c\ntry's au?orities )9 a          
reasonable p]iod ( "t aft] exportation (
 ! goods or s]vices4  7b7 ,special      
acc\nt ,! paym5ts requir$ "u subsection 
7a7 %all be paid f am\nts conta9$ 9 !   
special acc\nt au?oriz$ "u section      
#ddia7;e7 ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7c7 ,p]iod ( ,applicability ,!  
requirem5t to make paym5ts "u subsection
 7a7 %all apply dur+ ! p]iod beg9n+ z   
prescrib$ 9 section #f7b7 ( ! ,bord]    
,tax ,equity ,act ( #bjaf & end+ on !   
date on :i* ! ,unit$ ,/ates ,trade      
,repres5tative c]tifies to ,congress t  
ea* ( ! ,unit$ ,/ates trade negotiat+   

objectives reg>d+ bord] tax treatm5t h  
be5 met4  7d7 ,regulations ,! ,secret>y 
( ! ,treasury is au?oriz$ to prescribe  
su* rules & regulations z are necess>y  
to c>ry out ! provisions ( ?is section4 
7e7 ,def9itions ,9 ?is section3 7#a7    
,indirect tax sy/em & imposes or applies
 indirect taxes on imports ( goods or   
s]vices at ! bord] ,a =eign c\ntry      
employs an indirect tax sy/em & imposes 
or applies indirect taxes on imports (  
goods or s]vices at ! bord] if su*      
c\ntry imposes indirect taxes 7includ+  
sales tax & value-add$ taxes 7,,vat77 on
 goods or s]vices1 & imposes or applies 
su* indirect taxes on imports ( goods or
 s]vices at ! bord]4  7#b7 ,value-add$  
taxes 7vat7 ,! t]m value-add$ taxes     
means an indirect g5]al consumption tax 
t is levi$ by ! export+ c\ntry on !     
value add$ to goods & s]vices 9 t c\ntry
 at multiple /ages ( ! production &     
supply *a94 ,?is type ( tax is also     
ref]r$ to z a goods & s]vices tax       
7,,g/74  4  #f4 ,effective dates  ,if1  

pursuant to subsection 7a77#a7 ( section
 #c ( ?is ,act1 ! ,unit$ ,/ates ,trade  
,repres5tative fails to c]tify to       
,congress by ! date specifi$ 9 su*      
subsection t ea* ( ! ,unit$ ,/ates trade
 negotiat+ objectives reg>d+ bord] tax  
treatm5t describ$ 9 section 7a77#b7 (   
su* section has be5 met z a result (    
,,wto negotiations1 !n--  7#a7 section  
#ddia ( ! ,int]nal ,rev5ue ,code (      
#aihf1 z add$ by section #d ( ?is ,act1 
%all take effect #ij days aft] su* date2
 &  7#b7 section #cad ( ! ,t>iff ,act ( 
#aicj1 z add$ by section #e ( ?is ,act1 
%all take effect #abj days aft] su*     
date4