Plan Colombia Trade Act

Summary: Requires the President, in determining whether to designate a country a beneficiary country, to take into account, among other things, the extent to which such country adheres to democratic principles and the rule of law.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Plan Colombia Trade Act''.

SEC. 2. TEMPORARY EXTENSION OF ADDITIONAL TRADE BENEFITS TO CERTAIN 
              ANDEAN COUNTRIES.

    (a) In General.--Section 204(b) of the Andean Trade Preference Act 
(19 U.S.C. 3203(b)) is amended to read as follows:
    ``(b) Exceptions to Duty-Free Treatment.--
            ``(1) In General.--Subject to paragraphs (2), the duty-free 
        treatment provided under this title shall not apply to--
                  ``(A) textile and apparel articles which are subject 
                to textile agreements;
                  ``(B) footwear not designated at the time of the 
                effective date of this Act as eligible for the purpose 
                of the generalized system of preferences under title V 
                of the Trade Act of 1974;
                  ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                  ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                  ``(E) watches and watch parts (including cases, 
                bracelets and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply;
                  ``(F) articles to which reduced rates of duty apply 
                under subsection (c);
                  ``(G) sugars, syrups, and molasses classified in 
                subheadings 1701.11.03, 1701.12.02, 1701.99.02, 
                1702.90.32, 1806.10.42, and 2106.90.12 of the HTS; or
                  ``(H) rum and tafia classified in subheading 
                2208.40.00 of the HTS.
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Articles covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following articles:
                            ``(i) Apparel articles assembled in one or 
                        more beneficiary countries.--Apparel articles 
                        assembled in one or more beneficiary countries 
                        from fabrics wholly formed and cut in the 
                        United States, from yarns wholly formed in the 
                        United States, that are--
                                    ``(I) entered under subheading 
                                9802.00.80 of the HTS; or
                                    ``(II) entered under chapter 61 or 
                                62 of the HTS, if, after such assembly, 
                                the articles would have qualified for 
                                entry under subheading 9802.00.80 of 
                                the HTS 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.
                            ``(ii) Apparel articles cut and assembled 
                        in one or more beneficiary countries.--Apparel 
                        articles cut in one or more beneficiary 
                        countries from fabric wholly formed in the 
                        United States from yarns wholly formed in the 
                        United States, if such articles are assembled 
                        in one or more such countries with thread 
                        formed in the United States.
                            ``(iii) Special rules.--
                                    ``(I) Exception for findings and 
                                trimmings.--(aa) An article otherwise 
                                eligible for preferential treatment 
                                under this paragraph shall not be 
                                ineligible for such treatment because 
                                the article contains findings or 
                                trimmings of foreign origin, if such 
                                findings and trimmings do not exceed 25 
                                percent of the cost of the components 
                                of the assembled product. Examples of 
                                findings and trimmings are sewing 
                                thread, hooks and eyes, snaps, buttons, 
                                `bow buds', decorative lace, trim, 
                                elastic strips, zippers, including 
                                zipper tapes and labels, and other 
                                similar products. Elastic strips are 
                                considered findings or trimmings only 
                                if they are each less than 1 inch in 
                                width and are used in the production of 
                                brassieres.
                                    ``(bb) In the case of an article 
                                described in clause (ii) of this 
                                subparagraph, sewing thread shall not 
                                be treated as findings or trimmings 
                                under this subclause.
                                    ``(II) Certain interlining.--(aa) 
                                An article otherwise eligible for 
                                preferential treatment under this 
                                paragraph 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.
                                    ``(bb) Interlinings eligible for 
                                the treatment described in division 
                                (aa) include only a chest type plate, 
                                `hymo' piece, or `sleeve header', of 
                                woven or weft-inserted warp knit 
                                construction and of coarse animal hair 
                                or man-made filaments.
                                    ``(cc) The treatment described in 
                                this subclause shall terminate if the 
                                President makes a determination that 
                                United States manufacturers are 
                                producing such interlinings in the 
                                United States in commercial quantities.
                                    ``(III) De minimis rule.--An 
                                article that would otherwise be 
                                ineligible for preferential treatment 
                                under this paragraph because the 
                                article contains fibers or yarns not 
                                wholly formed in the United States or 
                                in one or more beneficiary countries 
                                shall not be ineligible for such 
                                treatment if the total weight of all 
                                such fibers or yarns is not more than 7 
                                percent of the total weight of the 
                                good. Notwithstanding the preceding 
                                sentence, an apparel article containing 
                                elastomeric yarns shall be eligible for 
                                preferential treatment under this 
                                paragraph only if such yarns are wholly 
                                formed in the United States.
                                    ``(IV) Special origin rule.--An 
                                article otherwise eligible for 
                                preferential treatment under clause (i) 
                                or (ii) of this subparagraph shall not 
                                be ineligible for such treatment 
                                because the article contains nylon 
                                filament yarn (other than elastomeric 
                                yarn) that is classifiable under 
                                subheading 5402.10.30, 5402.10.60, 
                                5402.31.30, 5402.31.60, 5402.32.30, 
                                5402.32.60, 5402.41.10, 5402.41.90, 
                                5402.51.00, or 5402.61.00 of the HTS 
                                duty-free from a country that is a 
                                party to an agreement with the United 
                                States establishing a free trade area, 
                                which entered into force before January 
                                1, 1995.
                            ``(iv) Special rule for fabrics not formed 
                        from yarns.--
                                    ``(I) Application to clause (i).--
                                An article otherwise eligible for 
                                preferential treatment under clause (i) 
                                of this subparagraph shall not be 
                                ineligible for such treatment because 
                                the article is assembled in one or more 
                                beneficiary countries from fabrics not 
                                formed from yarns, if such fabrics are 
                                classifiable under heading 5602 or 5603 
                                of the HTS and are wholly formed and 
                                cut in the United States.
                                    ``(II) Application to clause 
                                (ii).--An article otherwise eligible 
                                for preferential treatment under clause 
                                (ii) of this subparagraph shall not be 
                                ineligible for such treatment because 
                                the article is assembled in one or more 
                                beneficiary countries from fabrics not 
                                formed from yarns, if such fabrics are 
                                classifiable under heading 5602 or 5603 
                                of the HTS and are wholly formed in the 
                                United States.
                    ``(B) Preferential treatment.--During the 
                transition period, the articles to which this paragraph 
                applies shall enter the United States free of duty and 
                free of any quantitative restrictions, limitations, or 
                consultation levels.
                    ``(C) Transition period.--In this paragraph, the 
                term `transition period' means, with respect to a 
                beneficiary country, the period that begins on the date 
                of enactment of the Plan Colombia Trade Act or October 
                1, 2000, whichever is later, and ends on the date that 
                duty-free treatment ends under this title.''.
    (b) Factors Affecting Designation.--
            (1) In general.--Section 203(d) of the Andean Trade 
        Preference Act (19 U.S.C. 3202(d)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (11);
                    (B) by striking the period at the end of paragraph 
                (12) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) the extent to which such country adheres to 
        democratic principles and the rule of law.''.
            (2) Effective date.--The amendments made by this subsection 
        take effect on the earlier of--
                    (A) October 1, 2000; or
                    (B) the date of enactment of the Plan Colombia 
                Trade Act.