; (4) to provide an incentive for high-emissions foreign countries to strengthen the climate regulations and address the greenhouse gas emissions of those countries; and (5) to prevent an increase in greenhouse gas emissions from foreign countries as a result of direct and indirect compliance costs incurred under this title. (b) Definitions In this title: (1) Climate duty The term climate duty means a duty assessed by the United States on the importation into the customs territory of the United States of a covered good. (2) Covered good The term covered good means a good that is entered under a heading or subheading of the Harmonized Tariff Schedule of the United States that corresponds to the North American Industrial Classification System code for an eligible industrial sector, as established in the concordance between North American Industrial Classification System codes and the Harmonized Tariff Schedule of the United States prepared by the United States Census Bureau. (3) Eligible industrial sector The term eligible industrial sector means an industrial sector in the United States that is subject to a climate duty, as determined under section 602(a). (4) Energy-intensive The term energy-intensive , with respect to an industrial sector, means that the industrial sector has an energy intensity of not less than 5 percent, as calculated based on the quotient obtained by dividing, as determined using the average of the 3 most recent calendar years for which data are available— (A) the cost of the electricity and fuel purchased by the industrial sector; by (B) the total value of the sales of the industrial sector. (5) Incremental cost The term incremental cost means the increased cost of production of a covered good due to compliance with applicable energy and climate laws (including regulations) and subsidies of— (A) the United States