To amend the United States-Israel Free Trade Area Implementation Act of 1985 to provide the President with additional proclamation authority with respect to articles of the West Bank or Gaza Strip or…

TABLE OF CONTENTS:

Title I: Extension of Free Trade to West Bank and Gaza

Title II: Approval and Implementation of OECD Shipbuilding

Agreement

Subtitle A: General Provisions

Subtitle B: Other Provisions

Subtitle C: Effective Date

Title III: Generalized System of Preferences

Title IV: Revenue Offsets

Subtitle A: Foreign Trust Tax Compliance

Subtitle B: International Shipping Income Disclosure

Title I: Extension of Free Trade to West Bank and Gaza - Amends the United States-Israel Free Trade Area Implementation Act of 1985 to authorize the President to proclaim the elimination or modification of any existing duty in order to exempt any article from duty if: (1) the article is wholly the growth, product, or manufacture of the West Bank, the Gaza Strip, or a qualifying industrial zone; (2) the article is imported directly from such area or zone; and (3) the sum of the materials and processing costs of such article is not less than 35 percent of the appraised value of such product at the time it enters into the United States.

(Sec. 101) Makes an article eligible for such exemption only if: (1) its importer certifies that the article meets the exemption conditions; and (2) when requested by the Customs Service, the importer, manufacturer, or exporter submits a declaration setting forth all pertinent information with respect to such article and the requirements of this Act.

Authorizes the President to: (1) treat such articles as items of Israel for purposes of the free trade agreement entered into between the United States and Israel in 1985, as long as such articles otherwise meet agreement requirements; and (2) include the value of materials and processing costs of such articles as values and costs under such agreement.

Title II: Approval and Implementation of OECD Shipbuilding Agreement - Subtitle A: General Provisions - OECD Shipbuilding Agreement Act - Declares that the Congress approves the Agreement Respecting Normal Competitive Conditions in the Commercial Shipbuilding and Repair Industry (Shipbuilding Agreement), a reciprocal trade agreement resulting from negotiations under the auspices of the Organization for Economic Cooperation and Development, entered into on December 21, 1994.

(Sec. 203) Amends the Tariff Act of 1930 to impose an injurious pricing charge upon the foreign producer of a vessel sold to U.S. buyers at less than fair value if the U.S. International Trade Commission determines that as a result of the sale an industry in the United States: (1) has been materially injured, or is threatened with material injury; or (2) the establishment of an industry in the United States is or has been materially retarded.

Prescribes procedural guidelines for: (1) an injurious pricing investigation by an administering authority (Secretary of Commerce, or any other Federal officer to whom such responsibilities are transferred); (2) collection of such an injurious pricing charge; and (3) imposition of countermeasures.

Prescribes guidelines for: (1) injurious pricing petitions by third countries; (2) a comparison between export price and normal value in order to determine whether a subject vessel has been sold at less than fair value; (3) determinations on the basis of available facts; and (4) conduct of investigations. Authorizes the U.S. Trade Representative to request the Commission to issue an advisory report, and to notify certain congressional committees, if a dispute settlement panel finds that a Commission action is not in conformity with U.S. obligations under the Shipbuilding Agreement.

(Sec. 204) Directs the Customs Service to deny any request, with certain exceptions, for a permit to lade or unlade passengers, merchandise, or baggage from or onto vessels appearing on a countermeasures list pursuant to this Act.

(Sec. 205) Provides for judicial review in injurious pricing and countermeasure proceedings.

Subtitle B: Other Provisions - Amends the Tariff Act of 1930 to exempt certain Shipbuilding Agreement Party vessels from the customs duty on equipment purchased for, and repairs made in a foreign country, upon a vessel documented under U.S. law to engage in the foreign or coastwise trade. Specifies as so exempt: (1) self- propelled seagoing vessels of 100 gross tons or more used for transportation of goods or persons or for performance of a specialized service (including, but not limited to, ice breakers and dredges); and (2) tugs of 365 kilowatts or more.

(Sec. 212) Precludes any private right of action under the Shipbuilding Agreement.

(Sec. 214) Amends the Merchant Marine Act, 1936 to include a Shipbuilding Agreement vessel within its eligibility guidelines on construction-differential and operating-differential subsidies.

Revises guidelines for Federal loans and guaranteed loans for shipbuilding.

Subtitle C: Effective Date - Declares that the amendments made by this title shall take effect on the date that the Shipbuilding Agreement enters into force with respect to the United States.

Title III: Generalized System of Preferences - GSP Renewal Act of 1996 - Amends the Trade Act of 1974 with respect to the Generalized System of Preferences (GSP).

(Sec. 302) Authorizes the President to designate a beneficiary developing country as a least-developed beneficiary developing country for extension of trade preferences under the GSP.

Makes Austria, Finland, and Sweden eligible for designation as beneficiary developing countries.

Authorizes the President to withdraw or suspend duty-free treatment for the products of a country based on consideration of specified factors. Requires the President to: (1) withdraw or suspend the designation of a country as a beneficiary developing country if it is determined that changed circumstances would bar its designation as a beneficiary developing country; and (2) terminate the designation of a country as a beneficiary developing country if the President determines it has become a "high income" country. Requires the President to notify the Congress before designating or terminating a country as a beneficiary developing country.

Revises provisions on the designation of articles as eligible for preferential treatment. Authorizes the President to designate articles as eligible articles for countries designated as least-developed beneficiary developing countries if, after receiving advice from the International Trade Commission, it is determined that such articles are not import-sensitive. Prohibits an article that has been denied designation as an eligible article from being reconsidered for such designation for a three year period.

Prohibits, with respect to the President's withdrawing, suspending, or limiting the duty-free treatment of an eligible article, the establishment of a duty rate for such article other than the rate which would apply but for this Act.

Requires the President to terminate the duty-free treatment for an article from a beneficiary developing country (except least-developed beneficiary developing countries) whenever it is determined that such country has exported, directly or indirectly, to the United States during any calendar year a quantity of an eligible article: (1) having an appraised value in excess of the applicable formulated amount for the calendar year; or (2) equal to or exceeding 50 percent of the appraised value of the total imports of such article into the United States during any calendar year. Authorizes waiver of such competitive need limitation in the national economic interest if any U.S. industry is unlikely to be adversely affected by it.

Prohibits any action under this Act from affecting any tariff duty imposed by the Legislature of Puerto Rico under the Tariff Act of 1930 on coffee imported into Puerto Rico.

Requires the President to report to the Congress on the status of internationally recognized worker rights within each beneficiary developing country.

Title IV: Revenue Offsets - Subtitle A: Foreign Trust Tax Compliance - Amends the Internal Revenue Code to revise the requirements regarding information that must be reported on certain foreign trusts.

(Sec. 402) Makes any person who fails to file a return with respect to transfers to foreign entities to avoid income tax liable for certain civil penalties in the same manner as if it were a failure to file a notice with respect to certain foreign trusts.

(Sec. 403) Modifies the circumstances (with regard to foreign trusts having one or more U.S. beneficiaries) in which a transferor is treated as the owner.

(Sec. 404) Provides that foreign persons shall not be treated as owners under grantor trust rules. Requires treatment of a U.S. beneficiary as the grantor of any portion of a trust for which a foreign person would otherwise be treated as owner.

(Sec. 405) Requires a U.S. person to report information regarding foreign gifts or bequests when the gifts' aggregate value during a taxable year exceeds $10,000 (increased annually for the cost-of- living).

(Sec. 406) Modifies requirements regarding the interest charge on accumulation distributions from foreign trusts.

(Sec. 407) Requires (for provisions relating to the imposition of a tax on transfers to avoid income tax) treating a domestic trust which becomes a foreign trust as having transferred, immediately before becoming a foreign trust, all of its assets to a foreign trust.

Subtitle B: International Shipping Income Disclosure - Amends the Internal Revenue Code to allow the exclusion from gross income of any income derived from the international operation of a ship only if the taxpayer takes the position and discloses on the tax return that such income is not includible in his or her gross income. Sets forth penalties for failure to disclose such position on the tax return, with an exception for failure due to reasonable cause and not to willful neglect.