**TITLE I‑‑EXTENSION OF CERTAIN TRADE BENEFITS TO SUB‑SAHARAN AFRICA**

**Subtitle B‑‑Trade Benefits**

**SEC. 112. TREATMENT OF CERTAIN TEXTILES AND APPAREL.**

\(a\) PREFERENTIAL TREATMENT.‑‑Textile and apparel articles described in
subsection (b) that are imported directly into the customs territory of
the United States from a beneficiary sub‑Saharan African country
described in section 506A(c) of the Trade Act of 1974, shall enter the
United States free of duty and free of any quantitative limitations in
accordance with the provisions set forth in subsection (b), if the
country has satisfied the requirements set forth in section 113.

\(b\) PRODUCTS COVERED.‑‑The preferential treatment described in
subsection (a) shall apply only to the following textile and apparel
products:

> \(1\) APPAREL ARTICLES ASSEMBLED IN BENEFICIARY SUB-SAHARAN AFRICAN
> COUNTRIES.‑‑Apparel articles assembled in one or more beneficiary
> sub‑Saharan African countries from fabrics wholly formed and cut in
> the United States, from yarns wholly formed in the United States,
> (including fabrics not formed from yarns, if such fabrics are
> classifiable under heading 5602 or 5603 of the Harmonized Tariff
> Schedule of the United States and are wholly formed and cut in the
> United States) that are‑‑
>
> \(A\) entered under subheading 9802.00.80 of the Harmonized Tariff
> Schedule of the United States; or
>
> \(B\) entered under chapter 61 or 62 of the Harmonized Tariff Schedule
> of the United States, if, after such assembly, the articles would have
> qualified for entry under subheading 9802.00.80 of the Harmonized
> Tariff Schedule of the United States but for the fact that the
> articles were embroidered or subjected to stone‑washing,
> enzyme‑washing, acid washing, perma‑pressing, oven‑baking, bleaching,
> garment‑dyeing, screen printing, or other similar processes.
>
> \(2\) APPAREL ARTICLES CUT AND ASSEMBLED IN BENEFICIARY SUB-SAHARAN
> AFRICAN COUNTRIES.‑‑Apparel articles cut in one or more beneficiary
> sub‑Saharan African countries from fabric wholly formed in the United
> States from yarns wholly formed in theUnited States, (including
> fabrics not formed from yarns, if such fabrics are classifiable under
> heading 5602 or 5603 of the Harmonized Tariff Schedule of the United
> States and are wholly formed in the United States) if such articles
> are assembled in one or more beneficiary sub‑Saharan African countries
> with thread formed in the United States.
>
> \(3\) APPAREL ARTICLES ASSEMBLED FROM REGIONAL AND OTHER
> FABRIC.‑‑Apparel articles wholly assembled in one or more beneficiary
> sub‑Saharan African countries from fabric wholly formed in one or more
> beneficiary sub‑Saharan African countries from yarn originating either
> in the United States or one or more beneficiary sub‑Saharan African
> countries (including fabrics not formed from yarns, if such fabrics
> are classifiable under heading 5602 or 5603 of the Harmonized Tariff
> Schedule of the United States and are wholly formed and cut in one or
> more beneficiary sub‑Saharan African countries), subject to the
> following:

\(A\) LIMITATION ON BENEFITS.‑‑

> \(i\) IN GENERAL.‑‑Preferential treatment under this paragraph shall
> be extended in the 1‑year period beginning on October 1, 2000, and in
> each of the seven succeeding 1‑year periods, to imports of apparel
> articles in an amount not to exceed the applicable percentage of the
> aggregate square meter equivalents of all apparel articles imported
> into the United States in the preceding 12‑month period for which data
> are available.
>
> \(ii\) APPLICABLE PERCENTAGE.‑‑For purposes of this subparagraph, the
> term \`\`applicable percentage\'\' means 1.5 percent for the 1‑year
> period beginning October 1, 2000, increased in each of the seven
> succeeding 1‑year periods by equal increments, so that for the period
> beginning October 1, 2007, the applicable percentage does not exceed
> 3.5 percent.
>
> \(B\) SPECIAL RULE FOR LESSER DEVELOPED COUNTRIES.‑‑
>
> \(i\) IN GENERAL.‑‑Subject to subparagraph (A), preferential treatment
> shall be extended through September 30, 2004, for apparel articles
> wholly assembled in one or more lesser developed beneficiary
> sub‑Saharan African countries regardless of the country of origin of
> the fabric used to make such articles.
>
> \(ii\) LESSER DEVELOPED BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY.‑‑For
> purposes of this subparagraph the term \`\`lesser developed
> beneficiary sub‑Saharan African country\'\' means a beneficiary
> sub‑Saharan African country that had a per capita gross national
> product of less than \$1,500 a year in 1998, as measured by the World
> Bank.

\(C\) SURGE MECHANISM.‑‑

> \(i\) IMPORT MONITORING.‑‑The Secretary of Commerce shall monitor
> imports of articles described in this paragraph on a monthly basis to
> determine if there has been a surge in imports of such articles. In
> order to permit public access to preliminary international trade data
> and to facilitate the early identification of potentially disruptive
> import surges, the Director of the Office of Management and Budget may
> grant an exception to the publication dates established for the
> release of data on United States international trade in covered
> articles, if the Director notifies Congress of the early release of
> the data.
>
> \(ii\) DETERMINATION OF DAMAGE OR THREAT THEREOF.‑‑Whenever the
> Secretary of Commerce determines, based on the data described in
> clause (i), or pursuant to a written request made by an interested
> party, that there has been a surge in imports of an article described
> in this paragraph from a beneficiary sub‑Saharan African country, the
> Secretary shall determine whether such article from such country is
> being imported in such increased quantities as to cause serious
> damage, or threat thereof, to the domestic industry producing a like
> or directly competitive article. If the Secretary\'s determination is
> affirmative, the President shall suspend the duty‑free treatment
> provided for such article under this paragraph. If the inquiry is
> initiated at the request of an interested party, the Secretary shall
> make the determination within 60 days after the date of the request.
>
> \(iii\) FACTORS TO CONSIDER.‑‑In determining whether a domestic
> industry has been seriously damaged, or is threatened with serious
> damage, the Secretary shall examine the effect of the imports on
> relevant economic indicators such as domestic production, sales,
> market share, capacity utilization, inventories, employment, profits,
> exports, prices, and investment.
>
> \(iv\) PROCEDURE.‑‑
>
> \(I\) INITIATION.‑‑The Secretary of Commerce shall initiate an inquiry
> within 10 days after receiving a written request and supporting
> information for an inquiry from an interested party. Federal Register,
> publication. Notice of initiation of an inquiry shall be published in
> the Federal Register.
>
> \(II\) PARTICIPATION BY INTERESTED PARTIES.‑‑The Secretary of Commerce
> shall establish procedures to ensure participation in the inquiry by
> interested parties.
>
> \(III\) NOTICE OF DETERMINATION.‑‑The Secretary shall publish the
> determination described in clause (ii) in the Federal Register.
>
> \(IV\) INFORMATION AVAILABLE.‑‑If relevant information is not
> available on the record or any party withholds information that has
> been requested by the Secretary, the Secretary shall make the
> determination on the basis of the facts available. When the Secretary
> relies on information submitted in the inquiry as facts available, the
> Secretary shall, to the extent practicable, corroborate the
> information from independent sources that are reasonably available to
> the Secretary.
>
> \(v\) INTERESTED PARTY.‑‑For purposes of this subparagraph, the term
> \`\`interested party\'\' means any producer of a like or directly
> competitive article, a certified union or recognized union or group of
> workers which is representative of an industry engaged in the
> manufacture, production, or sale in the United States of a like or
> directly competitive article, a trade or business association
> representing producers or sellers of like or directly competitive
> articles, producers engaged in the production of essential inputs for
> like or directly competitive articles, a certified union or group of
> workers which is representative of an industry engaged in the
> manufacture, production, or sale of essential inputs for the like or
> directly competitive article, or a trade or business association
> representing companies engaged in the manufacture, production, or sale
> of such essential inputs.
>
> \(4\) SWEATERS KNIT-TO-SHAPE FROM CASHMERE OR MERINO WOOL.-‑
>
> \(A\) CASHMERE.‑‑Sweaters, in chief weight of cashmere, knit‑to‑shape
> in one or more beneficiary sub‑Saharan African countries and
> classifiable under subheading 6110.10 of the Harmonized Tariff
> Schedule of the United States.
>
> \(B\) MERINO WOOL.‑‑Sweaters, 50 percent or more by weight of wool
> measuring 18.5 microns in diameter or finer, knit‑to‑shape in one or
> more beneficiary sub‑Saharan African countries.

\(5\) APPAREL ARTICLES WHOLLY ASSEMBLED FROM FABRIC OR YARN NOT
AVAILABLE IN COMMERCIAL QUANTITIES IN THE UNITED STATES.‑‑

> \(A\) IN GENERAL.‑‑Apparel articles that are both cut (or
> knit‑to‑shape) and sewn or otherwise assembled in one or more
> beneficiary sub‑Saharan African countries, from fabric or yarn that is
> not formed in the United States or a beneficiary sub‑Saharan African
> country, to the extent that apparel articles of such fabrics or yarns
> would be eligible for preferential treatment, without regard to the
> source of the fabric or yarn, under Annex 401 to the NAFTA.
>
> \(B\) ADDITIONAL APPAREL ARTICLES.‑‑At the request of any interested
> party and subject to the following requirements, the President is
> authorized to proclaim the treatment provided under subparagraph (A)
> for yarns or fabrics not described in subparagraph (A) if‑‑
>
> \(i\) the President determines that such yarns or fabrics cannot be
> supplied by the domestic industry in commercial quantities in a timely
> manner;
>
> \(ii\) the President has obtained advice regarding the proposed action
> from the appropriate advisory committee established under section 135
> of the Trade Act of 1974 (19 U.S.C. 2155) and the United States
> International Trade Commission;
>
> \(iii\) within 60 calendar days after the request, the President has
> submitted a report to the Committee on Ways and Means of the House of
> Representatives and the Committee on Finance of the Senate that sets
> forth‑‑
>
> \(I\) the action proposed to be proclaimed and the reasons for such
> action; and
>
> \(II\) the advice obtained under clause (ii);
>
> \(iv\) a period of 60 calendar days, beginning with the first day on
> which the President has met the requirements of subclauses (I) and
> (II) of clause (iii), has expired; and (v) the President has consulted
> with such committees regarding the proposed action during the period
> referred to in clause (iii).
>
> \(6\) HANDLOOMED, HANDMADE, AND FOLKLORE ARTICLES.‑‑A handloomed,
> handmade, or folklore article of a beneficiary sub‑Saharan African
> country or countries that is certified as such by the competent
> authority of such beneficiary country or countries. For purposes of
> this paragraph, the President, after consultation with the beneficiary
> sub‑Saharan African country or countries concerned, shall determine
> which, if any, particular textile and apparel goods of the country (or
> countries) shall be treated as being handloomed, handmade, or folklore
> articles.

\(c\) TREATMENT OF QUOTAS ON TEXTILE AND APPAREL IMPORTS FROM KENYA AND
MAURITIUS.‑‑The President shall eliminate the existing quotas on textile
and apparel articles imported into the United States‑‑

> \(1\) from Kenya within 30 days after that country adopts an effective
> visa system to prevent unlawful transshipment of textile and apparel
> articles and the use of counterfeit documents relating to the
> importation of the articles into the United States; and
>
> \(2\) from Mauritius within 30 days after that country adopts such a
> visa system.
>
> The Customs Service shall provide the necessary technical assistance
> to Kenya and Mauritius in the development and implementation of the
> visa systems.

\(d\) SPECIAL RULES.‑‑

\(1\) FINDINGS AND TRIMMINGS.‑‑

> \(A\) GENERAL RULE.‑‑An article otherwise eligible for preferential
> treatment under this section shall not be Ineligible for such
> treatment because the article Contains findings or trimmings of
> foreign origin, if the value of such findings and trimmings do not
> exceed 25 percent of the cost of the components of the assembled
> article. Examples of findings and trimmings are sewing thread, hooks
> and eyes, snaps, buttons, \`\`bow buds\'\', decorative lace trim,
> elastic strips, and zippers, including zipper tapes and labels.
> Elastic strips are considered findings or trimmings only if they are
> each less than 1 inch in width and used in the production of
> brassieres.

\(B\) CERTAIN INTERLININGS.‑‑

> \(i\) GENERAL RULE.‑‑An article otherwise eligible for preferential
> treatment under this section shall not be ineligible for such
> treatment because the article contains certain interlinings of foreign
> origin, if the value of such interlinings (and any findings and
> trimmings) does not exceed 25 percent of the cost of the components of
> the assembled article.
>
> \(ii\) INTERLININGS DESCRIBED.‑‑Interlinings eligible for the
> treatment described in clause (i) include only a chest type plate, a
> \`\`hymo\'\' piece, or \`\`sleeve header\'\', of woven or
> weft‑inserted warp knit construction and of coarse animal hair or
> man‑made filaments.
>
> \(iii\) TERMINATION OF TREATMENT.‑‑The treatment described in this
> subparagraph shall terminate if the President makes a determination
> that United States manufacturers are producing such interlinings in
> the United States in commercial quantities.
>
> \(C\) EXCEPTION.‑‑In the case of an article described in subsection
> (b)(2), sewing thread shall not be treated as findings or trimmings
> under subparagraph (A).
>
> \(2\) DE MINIMIS RULE.‑‑An article otherwise eligible for preferential
> treatment under this section shall not be ineligible for such
> treatment because the article contains fibers or yarns not wholly
> formed in the United States or one or more beneficiary sub‑Saharan
> African countries if the total weight of all such fibers and yarns is
> not more than 7 percent of the total weight of the article.

\(e\) DEFINITIONS.‑‑In this section and section 113:

> \(1\) AGREEMENT ON TEXTILES AND CLOTHING.‑‑The term AAgreement on
> Textiles and Clothing\'\' means the Agreement on Textiles and Clothing
> referred to in section 101(d)(4) of the Uruguay Round Agreements Act
> (19 U.S.C. 3511(d)(4)).
>
> \(2\) BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY, ETC.‑‑The terms
> Abeneficiary sub‑Saharan African country\'\' and Abeneficiary
> sub‑Saharan African countries\'\' have the same meaning as such terms
> have under section 506A(c) of the Trade Act of 1974.
>
> \(3\) NAFTA.‑‑The term ANAFTA\'\' means the North American Free Trade
> Agreement entered into between the United States, Mexico, and Canada
> on December 17, 1992.

(f ) EFFECTIVE DATE.‑‑This section takes effect on October 1, 2000, and
shall remain in effect through September 30, 2008.

**SEC. 113. PROTECTIONS AGAINST TRANSSHIPMENT.**

\(a\) PREFERENTIAL TREATMENT CONDITIONED ON ENFORCEMENT MEASURES.‑‑

> \(1\) IN GENERAL.‑‑The preferential treatment under section 112(a)
> shall not be provided to textile and apparel articles that are
> imported from a beneficiary sub‑Saharan African country unless that
> country‑‑
>
> \(A\) has adopted an effective visa system, domestic laws, and
> enforcement procedures applicable to covered articles to prevent
> unlawful transshipment of the articles and the use of counterfeit
> documents relating to the importation of the articles into the United
> States;
>
> \(B\) has enacted legislation or promulgated regulations that would
> permit United States Customs Service verification teams to have the
> access necessary to investigate thoroughly allegations of
> transshipment through such country;
>
> \(C\) agrees to report, on a timely basis, at the request of the
> United States Customs Service, on the total exports from and imports
> into that country of covered articles, consistent with the manner in
> which the records are kept by that country;
>
> \(D\) will cooperate fully with the United States to address and take
> action necessary to prevent circumvention as provided in Article 5 of
> the Agreement on Textiles and Clothing;
>
> \(E\) agrees to require all producers and exporters of covered
> articles in that country to maintain complete records of the
> production and the export of covered articles, including materials
> used in the production, for at least 2 years after the production or
> export (as the case may be); and
>
> \(F\) agrees to report, on a timely basis, at the request of the
> United States Customs Service, documentation establishing the country
> of origin of covered articles as used by that country in implementing
> an effective visa system.
>
> \(2\) COUNTRY OF ORIGIN DOCUMENTATION.‑‑For purposes of paragraph
> (1)(F), documentation regarding the country of origin of the covered
> articles includes documentation such as production records,
> information relating to the place of production, the number and
> identification of the types of machinery used in production, the
> number of workers employed in production, and certification from both
> the manufacturer and the exporter.

\(b\) CUSTOMS PROCEDURES AND ENFORCEMENT.‑‑

> \(1\) IN GENERAL.‑‑
>
> \(A\) REGULATIONS.‑‑Any importer that claims preferential treatment
> under section 112 shall comply with customs procedures similar in all
> material respects to the requirements of Article 502(1) of the NAFTA
> as implemented pursuant to United States law, in accordance with
> regulations promulgated by the Secretary of the Treasury.
>
> \(B\) DETERMINATION.‑‑
>
> \(i\) IN GENERAL.‑‑In order to qualify for the preferential treatment
> under section 112 and for a Certificate of Origin to be valid with
> respect to any article for which such treatment is claimed, there
> shall be in effect a determination by the President that each country
> described in clause (ii)‑‑
>
> \(I\) has implemented and follows; or
>
> \(II\) is making substantial progress toward implementing and
> following, procedures and requirements similar in all material
> respects to the relevant procedures and requirements under chapter 5
> of the NAFTA.
>
> \(ii\) COUNTRY DESCRIBED.‑‑A country is described in this clause if it
> is a beneficiary sub‑Saharan African country‑‑
>
> \(I\) from which the article is exported; or
>
> \(II\) in which materials used in the production of the article
> originate or in which the article or such materials, undergo
> production that contributes to a claim that the article is eligible
> for preferential treatment.
>
> \(2\) CERTIFICATE OF ORIGIN.‑‑The Certificate of Origin that otherwise
> would be required pursuant to the provisions of paragraph (1) shall
> not be required in the case of an article imported under section 112
> if such Certificate of Origin would not be required under Article 503
> of the NAFTA (as implemented pursuant to United States law), if the
> article were imported from Mexico.
>
> \(3\) PENALTIES FOR EXPORTERS.‑‑If the President determines, based on
> sufficient evidence, that an exporter has engaged in transshipment as
> defined in paragraph (4), then the President shall deny for a period
> of 5 years all benefits under section 112 to such exporter, any
> successor of such exporter, and any other entity owned or operated by
> the principal of the exporter.
>
> \(4\) TRANSSHIPMENT DESCRIBED.‑‑Transshipment within the meaning of
> this subsection has occurred when preferential treatment for a textile
> or apparel article under this Act has been claimed on the basis of
> material false information concerning the country of origin,
> manufacture, processing, or assembly of the article or any of its
> components. For purposes of this paragraph, false information is
> material if disclosure of the true information would mean or would
> have meant that the article is or was ineligible for preferential
> treatment under section 112.
>
> \(5\) MONITORING AND REPORTS TO CONGRESS.‑‑The Customs Service shall
> monitor and the Commissioner of Customs shall submit to Congress, not
> later than March 31 of each year, a report on the effectiveness of the
> visa systems and the implementation of legislation and regulations
> described in subsection (a) and on measures taken by countries in
> sub‑Saharan Africa which export textiles or apparel to the United
> States to prevent circumvention as described in Article 5 of the
> Agreement on Textiles and Clothing.

\(c\) CUSTOMS SERVICE ENFORCEMENT.‑‑The Customs Service shall‑‑

> \(1\) make available technical assistance to the beneficiary
> sub‑Saharan African countries‑‑
>
> \(A\) in the development and implementation of visa systems,
> legislation, and regulations described in subsection (a)(1)(A); and
>
> \(B\) to train their officials in anti‑transshipment enforcement;
>
> \(2\) send production verification teams to at least four beneficiary
> sub‑Saharan African countries each year; and
>
> \(3\) to the extent feasible, place beneficiary sub‑Saharan African
> countries on the Electronic Visa (ELVIS) program.

\(d\) AUTHORIZATION OF APPROPRIATIONS.‑‑There is authorized to be
appropriated to carry out subsection (c) the sum of \$5,894,913.

**SEC. 114. TERMINATION.**

Title V of the Trade Act of 1974 is amended by inserting after section
506A the following new section:

> **ASEC. 506B. TERMINATION OF BENEFITS FOR SUB‑SAHARAN AFRICAN
> COUNTRIES.**

AIn the case of a beneficiary sub‑Saharan African country, as defined in
section 506A(c), duty‑free treatment provided under this title shall
remain in effect through September 30, 2008.@.