SECTION 1. DUTY-FREE TREATMENT OF CERTAIN FOODSTUFFS ORIGINATING IN 
              NAFTA COUNTRIES.

    (a) Amendments to U.S. Notes.--Subchapter II of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by adding 
after U.S. note 6 the following new note:
``7. Certain food preparations that are the product of Canada or Mexico 
        consisting of, or processed using, a material exported from the 
        United States.--The following provisions apply only to 
        subheading 9802.00.95:
        ``(a) Entry of any product described by subheading 9802.00.95:
                ``(i) shall not be subject to duty under the provisions 
                        of subchapter IV of chapter 99; and
                ``(ii) if a tariff-rate quota provision would have 
                        applied to such product but for subheading 
                        9802.00.95, the quantity of the product entered 
                        under that subheading shall not be counted 
                        against the quantity specified as the in-quota 
                        quantity for any such product.
        ``(b) The term `product of Canada or Mexico' means a good:
                ``(i) that is determined to be a product of Canada or 
                        of Mexico under rules of origin promulgated by 
                        the Secretary of the Treasury pursuant to Annex 
                        311 of the North American Free Trade Agreement, 
                        as implemented under the North American Free 
                        Trade Agreement Implementation Act; or
                ``(ii) that is processed, packaged, or otherwise 
                        advanced in value or improved in condition in 
                        Canada or Mexico (or both) and that is 
                        determined to be a product of the United States 
                        under such rules of origin.
        ``(c) The term `product of the United States' means a good or 
                material that is determined to be a product of the 
                United States under rules of origin promulgated by the 
                Secretary of the Treasury pursuant to Annex 311 of the 
                North American Free Trade Agreement, as implemented 
                under the North American Free Trade Agreement 
                Implementation Act.
        ``(d) The term `processed in Canada or Mexico (or both) using a 
                good or material that was exported from the United 
                States' includes, but is not limited to:
                ``(i) processing in Canada or Mexico using a good or 
                        material that previously was imported into the 
                        United States; and
                ``(ii) processing in Canada or Mexico using a good or 
                        material that was processed in a country or 
                        countries other than Canada or Mexico after 
                        exportation from the United States, if such 
                        processing did not effect a change in the 
                        country of origin of the good as exported from 
                        the United States.''.
    (b) Duty-Free Treatment.--Subchapter II of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by inserting 
in numerical sequence the following new heading:
      

``       9802.00.95       Any good of          Free (see U.S. note
                           subheading           7 of this
                           2008.11, that is a   subchapter)                                                   ''
                           product of Canada                                                                   .
                           or Mexico and that
                           was processed in
                           Canada or Mexico
                           (or both) using a
                           good or material
                           exported from the
                           United States, if
                           the following
                           conditions are
                           met: (1) the good
                           as imported into
                           the United States
                           is an originating
                           good satisfying
                           the requirements
                           of General Note 12
                           of the tariff
                           schedule; and (2)
                           any good or
                           material of
                           heading 1202 or
                           2008 that was used
                           in the processing
                           in Canada or in
                           Mexico (or both)
                           of the good
                           imported into the
                           United States was
                           a product of the
                           United States and
                           was produced from
                           quota peanuts as
                           defined in section
                           358-1 of the
                           Agriculture
                           Adjustment Act of
                           1938 that are
                           products of the
                           United States.....

    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to goods entered, or withdrawn from warehouse for 
consumption, on or after the 15th day after the date of the enactment 
of this Act.
Amends the Harmonized Tariff Schedule of the United States to provide duty-free treatment for certain food preparations that are the product of Canada or Mexico consisting of, or processed using, a material exported from the United States.
To provide duty-free treatment for certain foodstuffs originating in NAFTA countries.