2012 Commerce Bill Emphasizes China, NEI, Deemed Exports
On July 13, 2011, the House Appropriations Committee approved and ordered reported without amendments the fiscal year 2012 Commerce1 appropriations bill which would provide funding for the Commerce Department (including the ITA and BIS), the USTR, ITC, and a number of related agencies. The bill would, among other things, increase the Administration’s focus on China trade issues and deemed exports.
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The following are highlights of the trade-related provisions in the text of the bill (H.R. 2596, as introduced on July 20, 2011) and the Committee’s report (H. Rept. 112-169)2.
ITA
H.R. 2596 would provide $460 million for the International Trade Administration (ITA), a $10 million increase over the amount appropriated for FY 2011. The Committee expects that the increase will support components of the National Export Initiative (NEI).
Reports on AD/CV tracking, foreign trade practices. The Committee directs the ITA to report on (i) its progress in deploying a system for tracking Commerce's liquidation instructions to the U.S. Customs and Border Protection; and (ii) the resources and support that foreign governments provide to their domestic companies seeking to export their products and services to foreign markets.
USTR
H.R. 2596 would provide the USTR with $51.3 million, an increase of $3.5 million over the amount it received in FY 2011. Within the amounts provided, the USTR is encouraged to hire sufficient staff who can translate trade documents that USTR receives from China. The Committee expects that USTR will coordinate and implement a comprehensive and robust strategy to address the United States' trade imbalance with China.
Reports on IPR enforcement vacancies. The Committee also directs the USTR to provide a report to the Committee on the number of critical vacancies at the USTR, particularly in the intellectual property enforcement area, including an assessment of current staffing in China with respect to enforcement needs.
BIS, ITC
H.R. 2596 contains $100 million for the Bureau of Industry and Security (BIS), the same amount that was appropriated in FY 2011. In addition, H.R. 2596 would provide $81.7 million for the ITC, the same amount it received in FY 2011.
Committee’s minority concerned stagnant funding will hinder enforcement. In the report, Committee Democrats expressed concern that BIS had requested a funding increase to hire enforcement agents and intelligence analysts to enhance its ability to ensure that sensitive technology exports do not end up in the wrong hands, but the Committee’s funding level would render BIS unable to hire additional personnel, thus putting the U.S. economy and security at further risk.
Reports on deemed exports, enforcement. The Committee directs BIS to report on its (i) efforts to implement GAO recommendations regarding deemed exports, and (ii) participation in the interagency Counter-proliferation Task Forces and its involvement in the Department of Justice Export Enforcement Initiative.
Funding Restrictions for Certain Firearms Transactions, Etc.
H.R. 2596 also contains funding restrictions related to (see bill for details): firearms export to Canada, ‘curios or relics’ firearms, parts, or ammunition; patent language in trade agreements; tobacco and tobacco products; and shotguns. Most of these funding restrictions have been enacted in previous appropriations bills.
1Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012
2Although the Appropriations Committee’s report does not have statutory force; departments and agencies are not legally bound by their declarations. It does, however, explain congressional intent and frequently have effect because departments and agencies must justify their budget requests annually to the Appropriations Committees.
(See ITT’s Online Archives or 07/14/11 news, 11071412, for BP announcement that the FY 2012 Commerce Appropriations bill had been reported.
See ITT’s Online Archives or 07/11/11 news, 11071109, for BP summary of the House Appropriations Subcommittee’s approval of the draft FY 2012 Commerce appropriations bill.)
Committee report (H. Rept. 112-169 available here
H.R. 2596, as reported by Committee, available here