A bill to expand certain preferential trade treatment for Haiti.

Summary: Haiti Economic Recovery Opportunity Act of 2004 - Amends the Caribbean Basin Economic Recovery Act to provide, beginning on October 1, 2003, and for each of the seven succeeding one-year periods, duty-free treatment for apparel items wholly assembled or knit-to-shape in Haiti (without regard to the country of origin of the fabrics, components, or yarns) if the President certifies to Congress that Haiti: (1) has established or is progressing toward specified political, economic, and social reforms; (2) does not engage in activities that undermine U.S. security or foreign policy; (3) does not engage in gross violations of human rights or activities in support of international terrorism; and (4) is meeting specified enforcement conditions aimed at preventing tariff or quota avoidance, customs evasion, unlawful transshipment, or false information or false document use in order to obtain such preferential treatment.

States that such preferential treatment shall be: (1) for the first year, 1.5 percent of the aggregate square meter equivalents of all apparel articles imported into the United States during the 12-month period beginning October 1, 2002; and (2) for each of the succeeding years, a quantity of apparel articles equal to the product of the percentage applicable during the previous 12-month period plus 0.5 percent (but not over 3.5 percent) and the aggregate square meter equivalents of all apparel articles imported into the United States during the 12-month period ending on September 30 of such year.

Applies such provisions to goods entered or withdrawn from a warehouse for consumption on or after October 1, 2003, including a retroactive application to certain warehouse entries or withdrawals made between such date and the date of enactment of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Haiti Economic Recovery Opportunity 
Act of 2004''.

SEC. 2. TRADE BENEFITS TO HAITI.

    (a) In General.--The Caribbean Basin Economic Recovery Act (19 
U.S.C. 2701 et seq.) is amended by inserting after section 213 the 
following new section:

``SEC. 213A. SPECIAL RULE FOR HAITI.

    ``(a) In General.--In addition to any other preferential treatment 
under this Act, beginning on October 1, 2003, and in each of the 7 
succeeding 1-year periods, apparel articles described in subsection (b) 
that are imported directly into the customs territory of the United 
States from Haiti shall enter the United States free of duty, subject 
to the limitations described in subsections (b) and (c), if Haiti has 
satisfied the requirements and conditions set forth in subsections (d) 
and (e).
    ``(b) Apparel Articles Described.--Apparel articles described in 
this subsection are apparel articles that are wholly assembled or knit-
to-shape in Haiti from any combination of fabrics, fabric components, 
components knit-to-shape, and yarns without regard to the country of 
origin of the fabrics, components, or yarns.
    ``(c) Preferential Treatment.--The preferential treatment described 
in subsection (a), shall be extended--
            ``(1) during the 12-month period beginning on October 1, 
        2003, to a quantity of apparel articles that is equal to 1.5 
        percent of the aggregate square meter equivalents of all 
        apparel articles imported into the United States during the 12-
        month period beginning October 1, 2002; and
            ``(2) during the 12-month period beginning on October 1 of 
        each succeeding year, to a quantity of apparel articles that is 
        equal to the product of--
                    ``(A) the percentage applicable during the previous 
                12-month period plus 0.5 percent (but not over 3.5 
                percent); and
                    ``(B) the aggregate square meter equivalents of all 
                apparel articles imported into the United States during 
                the 12-month period that ends on September 30 of that 
                year.
    ``(d) Eligibility Requirements.--Haiti shall be eligible for 
preferential treatment under this section if the President determines 
and certifies to Congress that Haiti is meeting the conditions of 
subsection (e) and that Haiti--
            ``(1) has established, or is making continual progress 
        toward establishing--
                    ``(A) a market-based economy that protects private 
                property rights, incorporates an open rules-based 
                trading system, and minimizes government interference 
                in the economy through measures such as price controls, 
                subsidies, and government ownership of economic assets;
                    ``(B) the rule of law, political pluralism, and the 
                right to due process, a fair trial, and equal 
                protection under the law;
                    ``(C) the elimination of barriers to United States 
                trade and investment, including by--
                            ``(i) the provision of national treatment 
                        and measures to create an environment conducive 
                        to domestic and foreign investment;
                            ``(ii) the protection of intellectual 
                        property; and
                            ``(iii) the resolution of bilateral trade 
                        and investment disputes;
                    ``(D) economic policies to reduce poverty, increase 
                the availability of health care and educational 
                opportunities, expand physical infrastructure, promote 
                the development of private enterprise, and encourage 
                the formation of capital markets through microcredit or 
                other programs;
                    ``(E) a system to combat corruption and bribery, 
                such as signing and implementing the Convention on 
                Combating Bribery of Foreign Public Officials in 
                International Business Transactions; and
                    ``(F) protection of internationally recognized 
                worker rights, including the right of association, the 
                right to organize and bargain collectively, a 
                prohibition on the use of any form of forced or 
                compulsory labor, a minimum age for the employment of 
                children, and acceptable conditions of work with 
                respect to minimum wages, hours of work, and 
                occupational safety and health;
            ``(2) does not engage in activities that undermine United 
        States national security or foreign policy interests; and
            ``(3) does not engage in gross violations of 
        internationally recognized human rights or provide support for 
        acts of international terrorism and cooperates in international 
        efforts to eliminate human rights violations and terrorist 
        activities.
    ``(e) Conditions Regarding Enforcement of Circumvention.--
            ``(1) In general.--The preferential treatment under 
        subsection (b) shall not apply unless the President certifies 
        to Congress that Haiti is meeting the following conditions:
                    ``(A) Haiti has adopted an effective visa system, 
                domestic laws, and enforcement procedures applicable to 
                articles described in subsection (b) 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) Haiti has enacted legislation or promulgated 
                regulations that would permit the Bureau of Customs and 
                Border Protection verification teams to have the access 
                necessary to investigate thoroughly allegations of 
                transshipment through such country.
                    ``(C) Haiti agrees to report, on a timely basis, at 
                the request of the Bureau of Customs and Border 
                Protection, on the total exports from and imports into 
                that country of articles described in subsection (b), 
                consistent with the manner in which the records are 
                kept by Haiti.
                    ``(D) Haiti agrees to cooperate fully with the 
                United States to address and take action necessary to 
                prevent circumvention.
                    ``(E) Haiti agrees to require all producers and 
                exporters of articles described in subsection (b) in 
                that country to maintain complete records of the 
                production and the export of the articles, including 
                materials used in the production, for at least 2 years 
                after the production or export (as the case may be).
                    ``(F) Haiti agrees to report, on a timely basis, at 
                the request of the Bureau of Customs and Border 
                Protection, documentation establishing the country of 
                origin of articles described in subsection (b) as used 
                by that country in implementing an effective visa 
                system.
            ``(2) Definitions.--In this subsection:
                    ``(A) Circumvention.--The term `circumvention' 
                means any action involving the provision of a false 
                declaration or false information for the purpose of, or 
                with the effect of, violating or evading existing 
                customs, country of origin labeling, or trade laws of 
                the United States or Haiti relating to imports of 
                textile and apparel goods, if such action results--
                            ``(i) in the avoidance of tariffs, quotas, 
                        embargoes, prohibitions, restrictions, trade 
                        remedies, including antidumping or 
                        countervailing duties, or safeguard measures; 
                        or
                            ``(ii) in obtaining preferential tariff 
                        treatment.''.
                    ``(B) Transshipment.--The term `transshipment' has 
                the meaning given such term under section 
                213(b)(2)(D)(iii).''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) 
        applies with respect to goods entered, or withdrawn from 
        warehouse for consumption, on or after October 1, 2003.
            (2) Retroactive application to certain entries.--
        Notwithstanding section 514 of the Tariff Act of 1930 (19 
        U.S.C. 1514) or any other provision of law, upon proper request 
        filed with the United States Customs Service before the 90th 
        day after the date of the enactment of this Act, any entry or 
        withdrawal from warehouse for consumption, of any goods 
        described in the amendment made by subsection (a)--
                    (A) that was made on or after October 1, 2003, and 
                before the date of the enactment of this Act, and
                    (B) with respect to which there would have been no 
                duty if the amendment made by subsection (a) applied to 
                such entry or withdrawal,
        shall be liquidated or reliquidated as though such amendment 
        applied to such entry or withdrawal.

            Passed the Senate July 16, 2004.

            Attest:

                                                             Secretary.
108th CONGRESS

  2d Session

                                S. 2261

_______________________________________________________________________

                                 AN ACT

       To expand certain preferential trade treatment for Haiti.