text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Balanced Trade Restoration Act of 
  2006''.
  
  SEC. 2. FINDINGS.
  
      Congress makes the following findings:
              (1) Since the 1990s, the United States has experienced 
          record trade deficits that has made the United States the 
          largest debtor country in the world.
              (2) In 2005, the merchandise trade deficit of the United 
          States was a record $767,000,000,000, and in 2006, the 
          merchandise trade deficit of the United States is projected to 
          surpass the record set in 2005.
              (3) The surging trade deficits could soon create a balance 
          of payments crisis for the United States, which could wreak 
          havoc with the economy of the United States.
              (4) Article XII of the General Agreement on Tariff and 
          Trade (GATT 1994), annexed to the Agreement Establishing the 
          World Trade Organization entered into on April 15, 1994, 
          permits any member country to restrict the quantity or value of 
          imports in order to safeguard the external financial position 
          and the balance of payments of the member country.
              (5) In accordance with Article XII of the GATT 1994, the 
          United States should take steps to restore balance to its 
          merchandise trade, and safeguard its external financial 
          position and its balance of payments.
              (6) The imposition of import restrictions should be phased 
          in to allow the economy of the United States to absorb the 
          impact of import restrictions with minimal disruption.
  
  SEC. 3. DEFINITIONS.
  
      In this Act:
              (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. 4. 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. 5. 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:
  
  
   
   
   
  If a Certificate is issued:                        The face value of the Certificate is an amount equal to:
    During the first year the Program is in          140% of the appraised value of the good exported.
     operation
    During the second year the Program is in         130% of the appraised value of the good exported.
     operation
    During the third year the Program is in          120% of the appraised value of the good exported.
     operation
    During the fourth year the Program is in         110% of the appraised value of the good exported.
     operation
    After the fourth year the Program is in          100% of the appraised value of the good exported
     operation
  
      (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:
  
  
   
   
   
  If the oil or gas is imported:                     The aggregate face value of the Certificate required to
                                                      import the oil or gas is:
    During the sixth year the Program is in          60% of the appraised value of the oil or gas imported.
     operation
    During the seventh year the Program is in        70% of the appraised value of the oil or gas imported.
     operation
    During the eighth year the Program is in         80% of the appraised value of the oil or gas imported.
     operation
    During the ninth year the Program is in          90% of the appraised value of the oil or gas imported.
     operation
    After the ninth year the Program is in           100% of the appraised value of the oil or gas imported.
     operation
  
      (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.
target: Balanced Trade Restoration Act of 2006 - Directs the Secretary of Commerce to establish a Balanced Trade Certificate Program within the International Trade Administration of the Department of Commerce. Provides under such Program for the issuance of certificates to measure and control U.S. imports and exports to achieve a balance in the foreign trade of the United States. Exempts importers of oil or gas during the first five years of the program.
feat_title: A bill to achieve balance in the foreign trade of the United States, through a market-based system of tradable certificates, and for other purposes.