Subcommittee Approves FY 2012 Bill with No Additional Funding for BIS
On July 7, 2011, a House Appropriations Subcommittee1 approved at mark-up (without change) a proposed fiscal year 2012 Commerce appropriations bill. The draft would provide funding for the Commerce Department (including the International Trade Administration and Bureau of Industry and Security), the Office of the U.S. Trade Representative, International Trade Commission, and a number of related agencies.
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Full Committee Mark Up Scheduled for July 13
The House Appropriations Committee is scheduled to hold its mark-up of the draft bill on July 13, 2011.
The FY 2012 Commerce appropriations bill is expected to be introduced (and numbered) after the full Appropriations Committee has conducted its own mark-up.
ITA Would Receive Slight Funding Increase to Support NEI
The proposed bill would provide $450 million for the International Trade Administration (ITA), a $10 million increase over the amount appropriated for FY 2011. According to the Subcommittee, the additional funds would support high priority National Export Initiatives (NEI) to boost U.S. exports and help grow the economy.
USTR Would Receive Small Funding Increase, New Staff to Focus on China
The draft bill would provide the Office of the U.S. Trade Representative with $51.3 million, an increase of $3.5 million over the amount it received in FY 2011. According to Subcommittee Chairman Wolf (R), the Subcommittee included funding for new staff focused on dealing with China.
BIS and ITC Would Receive No Funding Increase
The proposed bill also contains $110 million for the Bureau of Industry and Security, the same amount that was appropriated in FY 2011. In addition, the draft bill would provide $81.7 million for the International Trade Commission, the same amount it received in FY 2011.
General Provisions Include Made in America Requirements
The draft bill also contains the following trade-related general provision:
Contract ban for “Made in America” labeling violations. If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a 'Made in America' inscription, or any inscription with the same meaning, to any product sold in or shipped to the U.S. that is not made in the U.S., the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in 48 CFR sections 9.400 through 9.409.
Funding Restrictions on Firearms Export Licenses to Canada, Etc.
In addition, the draft bill would restrict the use of certain funding from being used as follows:
Firearm exports to Canada - In connection with requiring an export license for the export to Canada of components, parts, accessories, or attachments for firearms listed in Category I, 22 CFR 121.1 (as it existed on April 1, 2005) with a total value not exceeding $500 wholesale in any transaction, provided that certain conditions are met by the exporting party for such articles. The bill would also instruct District Directors of Customs and postmasters to permit the permanent or temporary export without a license of any unclassified articles specified above to Canada for end use in Canada or return to the U.S. or temporary import of Canadian-origin items from Canada for end use in the U.S. or return to Canada for a Canadian citizen.
The bill further states that the President may require export licenses on a temporary basis if the President determines, upon publication in the Federal Register, that the Government of Canada has implemented or maintained inadequate import controls for the articles specified above, such that a significant diversion of such articles has and continues to take place for use in international terrorism or in the escalation of a conflict in another nation. The President shall terminate the license requirements when reasons for the temporary requirements have ceased. (See Section 520 of the draft bill for complete details on this provision.)
Patent provisions in new agreements - to include in any new bilateral or multilateral agreement the text of (i) paragraph 2 of article 16.7 (patents) of the U.S.-Singapore Free Trade Agreement (FTA); (ii) paragraph 4 of article 17.9 (patents) of the U.S.-Australia FTA; or (iii) paragraph 4 of article 15.9 (patents) of the U.S.-Morocco FTA.
U.S. origin curio or relics firearms -- to deny any application submitted pursuant to 22 USC 2778(b)(1)(B) and qualified pursuant to 27 CFR 478.112 or .113 for a permit to import U.S. origin “curios or relics” firearms, parts, or ammunition.
Tobacco sales, exports - to promote the sale or export of tobacco or tobacco products, or to seek the reduction or removal by any foreign country of restrictions on the marketing of tobacco or tobacco products, except for restrictions that are not applied equally to all tobacco or tobacco products of the same type.
(All of the above funding restrictions were also contained in previous years’ Commerce appropriations bills.)
1Commerce, Justice, Science, and Related Agencies Subcommittee
Committee Chairman Rogers (R) opening statement available here
Subcommittee Chairman Wolf (R) opening statement available here
Subcommittee press release on draft bill’s availability available here
Subcommittee summary table for draft bill available here