IN THE HOUSE OF THE UNITED STATES OF AMERICAMr. Kensington of North Carolina, Murray Sinclair from Missouri, Charlotte Goldstein from Maryland, Charles Smitherman from Alabama and Marianne Prideaux from Massachusetts introduce this bill for themselves, for a leader in American Business, Mr. Warren Buffett, and for others,A BILLTo 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 "Warren Buffett Trade Act."
SEC. 2. DEFINITIONS.In this Bill:(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. 3. 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. 4. 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:
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If a Certificate is issued: The face value of the Certificate is an amount equal to:
140% of the appraised value of the good exported. 130% of the appraised value of the good exported.
120% of the appraised value of the good exported. 110% of the appraised value of the good exported.
100% of the appraised value of the good exported
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(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:
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If the oil or gas is imported: The aggregate face value of the Certificate required to import the oil or gas is:
60% of the appraised value of the oil or gas imported. 70% of the appraised value of the oil or gas imported.
80% of the appraised value of the oil or gas imported. 90% of the appraised value of the oil or gas imported.
100% of the appraised value of the oil or gas imported.
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(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.
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The Warren Buffett Trade Act is designed to offer a market-based alternative trade model which will allow us to balance our importation against our exportation via the use of certificates which importers and exporters will trade with one another and which will, through market-based and market-driven pricing, require a balancing of our trade. The introduction of this trade model is gradual so as to ensure that no disruptions are imposed on the U.S. economy and to provide our nation's producers time to increase their domestic production to match their increased demand. The Buffett Trade Model will not violate standards, laws and protocols under GATT because GATT allows us to introduce such measures and mechanisms during such periods when we are, as a nation, running unsustainable trade, capital and net investment deficits. GATT also permits us to use such trade mechanisms when our trading partners are using unfair methods and interventionism to provide their producers with an artificial edge over our own.