July 23, 2012
As ordered reported by the Senate Committee on Finance on July 18, 2012
S. 3326 would extend for three years the preferential tariff treatment currently accorded to certain textile products from lesser-developed countries (LDCs) in the African Growth Opportunity Act (AGOA) program, modify the rules of origin for products imported from countries who are members of the Dominican Republic and Central America Free Trade Agreement (DR-CAFTA), and renew import restrictions enacted in the Burmese Freedom and Democracy Act of 2003. The bill also would shift some corporate income tax payments between fiscal years and extend user fees collected by Customs and Border Protection (CBP) that expire under current law.
CBO and the staff of the Joint Committee on Taxation (JCT) estimate that enacting S. 3326 would reduce revenues by $59 million in 2013, increase revenues by $4 million over the 2013-2017 period, and reduce revenues by $192 million over the 2013-2022 period. Enacting S. 3326 also would reduce direct spending by $197 million over the 2013-2022 period. Thus, the net impact of those effects is an estimated reduction in deficits of $5 million over the 2013-2022 period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues.
CBO has determined that the nontax provisions of the bill contain no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments. JCT has determined that the tax provision of the bill contains no intergovernmental or private-sector mandates.
CBO has determined that the nontax provisions of S. 3326 would impose private-sector mandates as defined in UMRA by extending the authorization to collect customs user fees, and by renewing the ban on all imports from Burma. CBO estimates that the aggregate cost of those mandates would exceed the annual threshold established in UMRA for private-sector mandates ($146 million in 2012, adjusted annually for inflation.)