**TITLE V‑‑IMPORTS OF CERTAIN WOOL ARTICLES**

**SEC. 501. TEMPORARY DUTY REDUCTIONS.**

\(a\) CERTAIN WORSTED WOOL FABRICS WITH AVERAGE FIBER DIAMETERS GREATER
THAN 18.5 MICRONS.‑‑

> \(1\) IN GENERAL.‑‑Subchapter II of chapter 99 of the Harmonized
> Tariff Schedule of the United States is amended by inserting in
> numerical sequence the following new heading:

  ------------ ------------------ ---------- --------- --------- ------------
  9902.51.11   Fabrics, of        19.3%      No change No change On or before
               worsted wool, with                                12/31/2003
               average fiber                                     
               diameters greater                                 
               than 18.5 micron,                                 
               all the foregoing                                 
               certified by the                                  
               importer as                                       
               suitable for use                                  
               in making suits,                                  
               suit-type jackets,                                
               or trousers                                       
               (provided for in                                  
               subheading                                        
               5111.11.70,                                       
               5111.19.60,                                       
               5112.11.20, or                                    
               5112.19.90)                                       

  ------------ ------------------ ---------- --------- --------- ------------

> \(2\) STAGED RATE REDUCTIONS.‑‑Any staged rate reduction of a rate of
> duty set forth in subheading 6203.31.00 of the Harmonized Tariff
> Schedule of the United States that is proclaimed by the President
> shall also apply to the corresponding rate of duty set forth in
> heading 9902.51.11 of such Schedule, as added by paragraph (1).

\(b\) CERTAIN WORSTED WOOL FABRICS WITH AVERAGE FIBER DIAMETERS OF 18.5
MICRON OR LESS.‑‑

> \(1\) In general.‑‑Subchapter II of chapter 99 of the Harmonized
> Tariff Schedule of the United States is amended by inserting in
> numerical sequence the following new heading:

  ------------ ------------------ ---------- --------- --------- ------------
  9902.51.12   Fabrics, of        6%         No change No change On or before
               worsted wool, with                                12/31/2003
               average fiber                                     
               diameters of 18.5                                 
               micron or less,                                   
               all the foregoing                                 
               certified by the                                  
               importer as                                       
               suitable for use                                  
               in making suits,                                  
               suit-type jackets,                                
               or trousers                                       
               (provided for in                                  
               subheading                                        
               5111.11.70,                                       
               5111.19.60,                                       
               5112.11.20, or                                    
               5112.19.90)                                       

  ------------ ------------------ ---------- --------- --------- ------------

> \(2\) EQUALIZATION WITH CANADIAN DUTY RATES.‑‑The President is
> authorized to proclaim a reduction in the rate of duty applicable to
> imports of worsted wool fabrics classified under subheading 9902.51.12
> of the Harmonized Tariff Schedule of the United States, as added by
> paragraph (1), that is necessary to equalize such rate of duty with
> the most favored nation rate of duty applicable to imports of worsted
> wool fabrics of the kind described in such subheading imported into
> Canada.

\(c\) DEFINITIONS.‑‑The U.S. Notes to subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States are amended by adding at
the end the following:

A13. For purposes of headings 9902.51.11 and 9902.51.12, the term
\>suit= has the meaning given such term under note 3(a) of chapter 62
for purposes of headings 6203 and 6204.

A14. For purposes of headings 9902.51.11 and 9902.51.12, the term
\>making= means cut and sewn in the United States.@.

\(d\) LIMITATION ON QUANTITY OF IMPORTS.‑‑The U.S. Notes to subchapter
II of chapter 99 of the Harmonized Tariff Schedule of the United States,
as amended by subsection (c), are further amended by adding at the end
the following:

A15. The aggregate quantity of worsted wool fabrics entered under
heading 9902.51.11 from January 1 to December 31 of each year,
inclusive, shall be limited to 2,500,000 square meter equivalents, or
such other quantity proclaimed by the President pursuant to section
504(b)(3) of the Trade and Development Act of 2000.

A16. The aggregate quantity of worsted wool fabrics entered under
subheading 9902.51.12 from January 1 to December 31 of each year,
inclusive, shall be limited to 1,500,000 square meter equivalents, or
such other quantity proclaimed by the President pursuant to section
504(b)(3) of the Trade and Development Act of 2000.@.

\(e\) ALLOCATION OF TARIFF-RATE QUOTAS.‑‑In implementing the limitation
on the quantity of imports of worsted wool fabrics under headings
9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of the
United States, as required by U.S. Notes 15 and 16 of subchapter II of
chapter 99 of such Schedule, respectively, for the entry, or withdrawal
from warehouse for consumption, the President, consistent with United
States international obligations, shall take such action as determined
appropriate by the President to ensure that such fabrics are fairly
allocated to persons (including firms, corporations,

or other legal entities) who cut and sew men\'s and boys\' worsted wool
suits and suit‑like jackets and trousers in the United States and who
apply for an allocation based on the amount of such suits cut and sewn
during the prior calendar year.

(f ) EFFECTIVE DATE.‑‑The amendments made by this section apply with
respect to goods entered, or withdrawn from warehouse for consumption,
on or after January 1, 2001.

**SEC. 502. TEMPORARY DUTY SUSPENSIONS.**

\(a\) WOOL YARN WITH AVERAGE FIBER DIAMETERS OF 18.5 MICRON OR LESS.‑‑

Subchapter II of chapter 99 of the Harmonized Tariff Schedule of the
United States is amended by inserting in numerical sequence the
following new heading:

  ------------ ------------------ ---------- --------- --------- ------------
  9902.51.13   Yarn, of combed    Free       No change No change On or before
               wool, not put up                                  12/31/2003
               for retail sale,                                  
               containing 85                                     
               percent or more by                                
               weight of wool,                                   
               formed with wool                                  
               fibers having                                     
               diameters of 18.5                                 
               micron or less                                    
               (provided for in                                  
               subheading                                        
               5107.10.00)                                       

  ------------ ------------------ ---------- --------- --------- ------------

\(b\) WOOL FIBER AND WOOL TOP WITH AVERAGE DIAMETERS OF 18.5 MICRON OR
LESS.‑‑Subchapter II of chapter 99 of the Harmonized Tariff Schedule of
the United States is amended by inserting in numerical sequence the
following new heading:

  ------------ ------------------ ---------- --------- --------- ------------
  9902.51.14   Wool fiber, waste, Free       No change No change On or before
               garnetted stock,                                  12/31/2003
               combed wool, or                                   
               wool top, having                                  
               average fiber                                     
               diameters of 18.5                                 
               micron or less                                    
               (provided for in                                  
               subheading                                        
               5101.11, 5101.19,                                 
               5101.21, 5101.29,                                 
               5101.30, 5103.10,                                 
               5103.20, 5104.00,                                 
               5105.21, or                                       
               5105.29)                                          

  ------------ ------------------ ---------- --------- --------- ------------

\(c\) EFFECTIVE DATE.‑‑The amendments made by this section apply with
respect to goods entered, or withdrawn from warehouse for consumption,
on or after January 1, 2001.

**SEC. 503. SEPARATE TARIFF LINE TREATMENT FOR WOOL YARN AND MEN\'S OR
BOYS\' SUITS AND SUIT‑TYPE JACKETS AND TROUSERS OF WORSTED WOOL
FABRIC.**

\(a\) SEPARATE TARIFF LINE TREATMENT.‑‑The President shall proclaim
8‑digit tariff categories, without changes in existing duty rates, in
chapters 51 and 62 of the Harmonized Tariff Schedule of the United
States in order to provide separate tariff treatment forB

> \(1\) wool yarn made of wool fiber with an average fiber diameter of
> 18.5 micron or less, and wool fabrics made from yarns with an average
> fiber diameter of 18.5 micron or less; and
>
> \(2\) men\'s or boys\' suits, suit‑type jackets, and trousers of
> worsted wool fabric, made of wool yarn having an average diameter of
> 18.5 micron or less.

\(b\) CONFORMING CHANGES.‑‑The President is authorized to make
conforming changes in headings 9902.51.11, 9902.51.12, 9902.51.13, and
9902.51.14 of the Harmonized Tariff Schedule of the United States to
take into account the new permanent tariff categories proclaimed under
subsection (a).

**SEC. 504. MONITORING OF MARKET CONDITIONS AND AUTHORITY TO MODIFY
TARIFF REDUCTIONS.**

\(a\) MONITORING OF MARKET CONDITIONS.‑‑Beginning on the date of the
enactment of this Act, the President shall monitor market conditions in
the United States, including domestic demand, domestic supply, and
increases in domestic production, of worsted wool fabrics and their
components in the market for‑‑

> \(1\) men\'s or boys\' worsted wool suits, suit‑type jackets, and
> trousers;
>
> \(2\) worsted wool fabric and yarn used in the manufacture of such
> suits, jackets, and trousers; and
>
> \(3\) wool used in the production of such fabrics and yarn.

\(b\) AUTHORITY TO MODIFY LIMITATION ON QUANTITY OF WORSTED WOOL FABRICS
SUBJECT TO TARIFF REDUCTION.‑‑

> \(1\) IN GENERAL.‑‑The President shall, on an annual basis, consider
> requests made by United States manufacturers of apparel products made
> of worsted wool fabrics described in subsection (a) to modify the
> limitation on the quantity of imports of worsted wool fabrics under
> headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule
> of the United States, as required by U.S. Notes 15 and 16 of
> subchapter II of chapter 99 of such Schedule, respectively.
>
> \(2\) Consideration of certain market conditions.‑‑In determining
> whether to modify the limitation on the quantity of imports of worsted
> wool fabrics described in paragraph (1), the President shall consider
> the following United States market conditions:
>
> \(A\) Increases or decreases in sales of the domestically‑produced
> worsted wool fabrics described in subsection (a).
>
> \(B\) Increases or decreases in domestic production of such fabrics.
>
> \(C\) Increases or decreases in domestic production and consumption of
> the apparel items described in subsection (a).
>
> \(D\) The ability of domestic producers of worsted wool fabrics
> described in subsection (a) to meet the needs of domestic
> manufacturers of the apparel items described in subsection (a) in
> terms of quantity and ability to meet market demands for the apparel
> items.
>
> \(E\) Evidence that domestic manufacturers of worsted wool fabrics
> have lost sales due to the temporary duty reductions on certain
> worsted wool fabrics under headings 9902.51.11 and 9902.51.12 of the
> Harmonized Tariff Schedule of the United States (as added by
> subsections (a) and (b) of section 501).
>
> \(F\) Evidence that domestic manufacturers of apparel items described
> in subsection (a) have lost sales due to the inability to purchase
> adequate supplies of worsted wool fabrics on a cost competitive basis.
>
> \(G\) Price per square meter of imports and domestic sales of worsted
> wool fabrics.
>
> \(3\) MODIFICATION OF LIMITATION ON QUANTITY OF FABRICS.‑‑
>
> \(A\) IN GENERAL.‑‑If the President determines that the limitation on
> the quantity of imports of worsted wool fabrics under headings
> 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of the
> United States should be modified, the President shall proclaim such
> changes to U.S. Note 15 or 16 to subchapter II of chapter 99 of such
> Schedule (as added by section 501(d)), as the President determines to
> be appropriate.
>
> \(B\) ADDITIONAL REQUIREMENT.‑‑In any calendar year, any modification
> of the limitation on the quantity of imports of worsted wool fabrics
> under headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff
> Schedule of the United States shall not exceed‑‑
>
> \(i\) 1,000,000 square meter equivalents for worsted wool fabrics
> under heading 9902.51.11; and
>
> \(ii\) 1,000,000 square meter equivalents for worsted wool fabrics
> under heading 9902.51.12.

\(c\) IMPLEMENTATION.‑‑The President shall issue regulations necessary
to implement the provisions of this section.

**SEC. 505. REFUND OF DUTIES PAID ON IMPORTS OF CERTAIN WOOL ARTICLES.**

\(a\) WORSTED WOOL FABRICS.‑‑In each of the calendar years 2000, 2001,
and 2002, a manufacturer of men\'s or boys\' suits, suit‑type jackets,
or trousers (not a broker or other individual acting on behalf of the
manufacturer to process the import) of imported worsted wool fabrics of
the kind described in heading 9902.51.11 or 9902.51.12 of the Harmonized
Tariff Schedule of the United States shall be eligible for a refund of
duties paid on entries of such fabrics in each such calendar year in an
amount equal to one‑third of the amount of duties paid by the importer
on such worsted wool fabrics (without regard to micron level) imported
in calendar year 1999.

\(b\) WOOL YARN.‑‑In each of the calendar years 2000, 2001, and 2002, a
manufacturer of worsted wool fabrics who imports wool yarn of the kind
described in heading 9902.51.13 of the Harmonized Tariff Schedule of the
United States shall be eligible for a refund of duties paid on entries
of such wool yarn in each such calendar year in an amount equal to
one‑third of the amount of duties paid by the manufacturer on such wool
yarn (without regard to micron level) imported in calendar year 1999.

\(c\) WOOL FIBER AND WOOL TOP.‑‑In each of the calendar years 2000,
2001, and 2002, a manufacturer of wool yarn or wool fabric who imports
wool fiber or wool top of the kind described in heading 9902.51.14 of
the Harmonized Tariff Schedule of the United States shall be eligible
for a refund of duties paid on entries of such wool fiber in each such
calendar year in an amount equal to one‑third of the amount of duties
paid by the manufacturer on such wool fiber (without regard to micron
level) imported in calendar year 1999.

\(d\) PROPER IDENTIFICATION AND APPROPRIATE CLAIM.‑‑Any person applying
for a rebate under this section shall properly identify and make
appropriate claim to the United States Customs Service for each entry
involved.

**SEC. 506. WOOL RESEARCH, DEVELOPMENT, AND PROMOTION TRUST FUND.**

\(a\) ESTABLISHMENT.‑‑There is hereby established within the Treasury of
the United States a trust fund to be known as the Wool Research,
Development, and Promotion Trust Fund (hereafter in this section
referred to as the \`\`Trust Fund\'\'), consisting of such amounts as
may be transferred to the Trust Fund under subsection (b)(1) and any
amounts as may be credited to the Trust Fund under subsection (c)(2).

\(b\) TRANSFER OF AMOUNTS.\--

> \(1\) IN GENERAL.‑‑The Secretary of the Treasury shall transfer to the
> Trust Fund out of the general fund of the Treasury of the United
> States amounts determined by the Secretary of the Treasury to be
> equivalent to the amounts received into such general fund that are
> attributable to the duty received on articles under chapters 51 and 52
> of the Harmonized Tariff Schedule of the United States, subject to the
> limitation in paragraph (2).
>
> \(2\) LIMITATION.‑‑The Secretary shall not transfer more than
> \$2,250,000 to the Trust Fund in any fiscal year.
>
> \(3\) TRANSFER BASED ON ESTIMATES.‑‑The amounts required to be
> transferred under paragraph (1) shall be transferred at least
> quarterly from the general fund of the Treasury of the United States
> to the Trust Fund on the basis of estimates made by the Secretary of
> the Treasury of the amounts referred to in paragraph (1) that are
> received into the Treasury. Proper adjustments shall be made in the
> amounts subsequently transferred to the extent prior estimates were in
> excess of, or less than, the amounts required to be transferred.

\(c\) INVESTMENT OF TRUST FUND.‑‑

> \(1\) IN GENERAL.‑‑It shall be the duty of the Secretary of the
> Treasury to invest such portion of the Trust Fund as is not, in the
> Secretary\'s judgment, required to meet current withdrawals. Such
> investments may be made only in interest‑bearing obligations of the
> United States or in obligations guaranteed as to both principal and
> interest by the United States. For such purpose, such obligations may
> be acquired on original issue at the issue price or by purchase of
> outstanding obligations at the market price. Any obligation acquired
> by the Trust Fund may be sold by the Secretary of the Treasury at the
> market price.
>
> \(2\) INTEREST AND PROCEEDS FROM SALE OR REDEMPTION OF
> OBLIGATIONS.‑‑The interest on, and the proceeds from the sale or
> redemption of, any obligations held in the Trust Fund shall be
> credited to and form a part of the Trust Fund.

\(d\) AVAILABILITY OF AMOUNTS FROM TRUST FUND.‑‑From amounts available
in the Trust Fund (including any amounts not obligated in previous
fiscal years), the Secretary of Agriculture is authorized to provide
grants to a nationally‑recognized council established for the
development of the United States wool market for the following purposes:

> \(1\) Assist United States wool producers to improve the quality of
> wool produced in the United States, including to improve wool
> production methods.
>
> \(2\) Disseminate information on improvements described in paragraph
> (1) to United States wool producers generally.
>
> \(3\) Assist United States wool producers in the development and
> promotion of the wool market.

\(e\) REPORTS TO CONGRESS.‑‑The Secretary of the Treasury, in
consultation with the Secretary of Agriculture, shall prepare and submit
to Congress an annual report on the financial condition and the results
of the operations of the Trust Fund, including a description of the use
of amounts of grants provided under subsection (d), during the preceding
fiscal year and on its expected condition and operations during the next
fiscal year.

(f ) SUNSET PROVISION.‑‑Effective January 1, 2004, the Trust Fund shall
be abolished and all amounts in the Trust Fund on such date shall be
transferred to the general fund of the Treasury of the United States.