Highlights from the FY 2008 Appropriations Acts Affecting CPSC, FDA, DOT, ITA, Etc.

This summary highlights some of the trade-related aspects of the 2008 Consolidated Appropriations Act as found in P.L. 110-161 and its accompanying Joint Explanatory Statement affecting the Consumer Product Safety Commission, Food and Drug Administration, Department of Transportation, International Trade Administration, etc. (See text of P.L. 110-161 for complete details).

(See ITT's Online Archives or 02/05/08 and 02/06/08 news, 08020515 and 08020620, for BP summaries of the FY 2008 DHS Appropriations Act, which was part of P.L. 110-161.)

CPSC Directed to Intensify Efforts Toward Children's Products, Toys, Etc.

According to the Joint Explanatory Statement, increases in the Consumer Product Safety Commission's (CPSC's) budget are to be directed toward increased staff, workspace, and information technology resources, with the objective of considerably improving the CPSC's ability to safeguard consumers against dangerous products. In particular, the CPSC is directed to hire in the areas of hazard identification and reduction, as well as compliance and field operations, intensify monitoring of children's products, and redouble its efforts to keep dangerous toys and other products out of children's hands.

FDA Receives Funding to Hire Additional Import Food Inspectors, Etc.

P.L. 110-161 provides the Food and Drug Administration (FDA) more than $18 million to hire additional domestic and import food inspectors, including funding for the deployment of inspectors with rapid response capabilities who will be responsible for supporting overall practices to increase the safety of food and food products, etc.

FDA Directed to Provide National Food Safety System Improvement Plan

FDA is directed to provide, concurrent with the FY 2009 budget justification, a plan that describes a method to improve the national food safety system, including clear, measurable benchmarks for concrete improvements in the performance of its food safety mission.

The plan must set forth clear, definitive goals over a multi-year period to comprehensively overhaul FDA's food safety operations, covering both domestic and imported foods. The House and Senate Appropriations Committees (Committees) have suggested that enforceable standards for food safety, HAACP-like systems, and a process for reviewing the food safety systems in countries that export food to the U.S. should be considered as key parts of the building blocks of such a plan.

FDA Urged to Not Fund "Qualified Health Claim" Reviews for Conventional Foods

The Committees have expressed concern that FDA may have exceeded its statutory authority when it decided to begin allowing the use of "qualified health claims" for conventional foods in 2003. The Committees stated that they need a thorough, independent analysis of FDA's actions in this situation, the impact of "qualified health claims," etc. The Committees are requesting the GAO to report on "qualified health claims" and urge the FDA not to use funds provided in P.L. 110-161 for review requests for "qualified health claims," etc.

(See ITT's Online Archives or 06/22/06 news, 06062299 3, for BP summary on the FDA's Q&A on "Qualified Health Claims." See ITT's Online Archives or 05/17/06 news, 06051799 5, for BP summary on the FDA's Industry Guidance on "Qualified Health Claims.")

DOT Required to Submit Annual Report on Mexico-Domiciled Motor Carriers

P.L. 110-161 requires the Secretary of the Department of Transportation (DOT) to submit an annual report to the Committees on the safety and security of transportation into the U.S. by Mexico-domiciled motor carriers.

Funding to Establish Cross-Border Mexican Trucking Pilot Prohibited

P.L. 110-161 also includes a prohibition on the use of P.L. 110-161 funds to establish a cross-border motor carrier demonstration project to allow Mexico-domiciled motor carriers to operate beyond the commercial zones along the international border between the U.S. and Mexico¹.

The same provision was part of the FY 2008 Transportation, Housing and Urban Development, and Related Agencies Appropriations Act (passed separately by the House, prior to the enactment of the Consolidated Appropriations Act). (See ITT's Online Archives or 11/29/07 news, 07112905, for BP summary.)

(According to a press release issued by Senator Dorgan, a proponent of the funding prohibition, DOT has announced that it will continue the cross-border trucking pilot in spite of the funding prohibition, based on its interpretation of the prohibition.)

ITA Directed to Negotiate with WTO Countries on Right to Disperse AD/CV Duties

The Committees direct the ITA to conduct negotiations within the World Trade Organization (WTO) to recognize the rights of members to distribute monies collected from antidumping and countervailing duties. Such negotiations would be required to be conducted consistent with the negotiating objectives contained in the Trade Act of 2002 (P.L. 107-210).

No Funding to Require Export Licenses for Certain Low Value Firearm Parts, Accessory Exports to Canada

Under P.L. 110-161, no funding is allowed to be expended or obligated to pay administrative expenses or compensation 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 (International Traffic in Arms Regulations, Part 121, 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 (see text of P.L. 110-161 for complete details on the conditions).

Moreover, the District Directors of Customs and postmasters shall permit the permanent or temporary export without a license of any unclassified articles specified in the above provision 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.

P.L. 110-161 also states that the President may require export licenses under this provision on a temporary basis if certain conditions are met (see P.L. 110-161 for details on the conditions).

No Defense Export Licenses May be Issued for Military Equipment, Etc. to Sri Lanka

P.L. 110-161 states that no defense export license may be issued, and no military equipment or technology shall be sold or transferred to Sri Lanka, pursuant to the authorities contained in this Act or any Act, unless certain conditions are met.

(See ITT's Online Archives or 01/04/08 news, 08010420, for BP summary of the State Department's issuance of a denial policy for defense export licenses for Sri Lanka (with limited exceptions) as a result of P.L. 110-161.)

Prohibition on Defense Export Licenses for Cluster Ammunitions

During FY 2008, P.L. 110-161 prohibits the issuance of defense export licenses for cluster munitions unless certain conditions are met.

Other Funding Prohibitions

P.L. 110-161 also prohibits its funding from being used for the following:

Processing certain licenses for U.S. satellites exported to China (unless prior notice is given) - processing licenses for the export of satellites of U.S. origin (including commercial satellites and satellite components) to China unless, at least 15 days in advance, the Committees are notified of such proposed action.

Poultry product imports from China - establishment or implementation of a rule allowing poultry products to be imported into the U.S. from China.

Promotion of tobacco exports - promotion of the sale or export of tobacco or tobacco products, or to seek removal or reduction by any foreign country of restrictions on the marketing of tobacco or tobacco products, except for restrictions which are not applied equally to all tobacco or tobacco products of the same type.

¹The Department of Transportation's U.S.-Mexico Cross Border Trucking Pilot (also referred to as a demonstration project) began September 6, 2007. The one-year pilot program is part of the Federal Motor Carrier Safety Administration's (FMCSA's) implementation of the North American Free Trade Agreement (NAFTA) cross-border trucking provisions and allows up to 100 Mexico-domiciled motor carriers to operate throughout the U.S. for one year. Up to 100 U.S.-domiciled motor carriers are being granted reciprocal rights to operate in Mexico for the same period. See ITT's Online Archives or 09/10/07 news, 07091005, for previous BP summary on the commencement of the pilot. See ITT's Online Archives or 11/09/07 news, 07110999 5, for BP summary announcing FMCSA will use satellites on trucks in the pilot program.

(See P.L. 110-161 and the Joint Explanatory Statement for details of other DHS-related appropriations provisions, including Coast Guard funding for port and cargo security.)

See ITT's Online Archives or 01/02/08 news, 08010205, for BP summary of the President's signing of P.L. 110-161. See ITT's Online Archives or 01/01/08 news, 08010115, for BP summary of the House-passed version of H.R. 2638, the House's FY 2008 DHS appropriations bill. See ITT's Online Archives or 07/31/07 news, 07073199 3, for BP summary of the Senate-passed version of H.R. 2638.)

P.L. 110-161 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2764enr.txt.pdf

Joint Explanatory Statement available at http://www.rules.house.gov/110_fy08_omni.htm.

Senator Dorgan's press release on Mexican truck pilot (dated 01/03/08) available at http://dorgan.senate.gov/newsroom/record.cfm?id=290075.