SECTION 1. DUTY FREE TREATMENT FOR TENTS FROM CERTAIN MIDDLE EASTERN 
              COUNTRIES.

    (a) Duty Free Treatment.--Notwithstanding any other provision of 
law, the President shall provide duty-free treatment for any eligible 
article from a beneficiary country designated under section 2.
    (b) Eligible Article.--For purposes of this Act, the term 
``eligible article'' means any tent with a sewn in floor and base size 
less than 20' by 20' classified under subheading 6306.22.90 of the 
Harmonized Tariff Schedule of the United States.

SEC. 2. DESIGNATION OF ELIGIBLE COUNTRIES.

    (a) In General.--The President shall, upon the enactment of this 
Act designate each country listed in subsection (d) as a beneficiary 
country unless, and shall thereafter withdraw such designation from any 
such countries if--
            (1) the country is listed by the United States Department 
        of State as a state sponsor of terrorism; or
            (2) the country engages in activities that undermine United 
        States national security or foreign policy interests.
    (b) Reviews.--Beginning 1 year after the date of the enactment of 
this Act, and annually thereafter, the President shall conduct a review 
to determine if a basis exists for withdrawing the designation of a 
country as a beneficiary country under this Act. In determining whether 
or not to withdraw such designation, the President shall consider--
            (1) whether or not the country 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 and the right to due process, a 
                fair trial, and equal protection under the law;
                    (C) political pluralism, a climate free of 
                political intimidation and restrictions on peaceful 
                political activity, and democratic elections that meet 
                international standards of fairness, transparency, and 
                participation;
                    (D) the elimination of barriers to United States 
                trade and investment, including by--
                            (i) providing national treatment and 
                        measures to create an environment conducive to 
                        domestic and foreign investment;
                            (ii) protecting intellectual property; and
                            (iii) resolving bilateral trade and 
                        investment disputes;
                    (E) economic policies that 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 micro-credit 
                or other programs;
                    (F) a system to combat corruption and bribery, such 
                as signing and implementing the OECD Convention on 
                Combating Bribery of Foreign Public Officials in 
                International Business Transactions;
                    (G) 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; and
                    (H) policies that provide a high level of 
                environmental protection;
            (2) the country's record on activities that undermine 
        United States national security or foreign policy interests, 
        and support of a peaceful resolution of the Israeli-Palestinian 
        conflict;
            (3) whether the country is a signatory of the United 
        Nations Declaration of Human Rights, engages in gross 
        violations of internationally recognized human rights, and is 
        making continuing and verifiable progress on the protection of 
        internationally recognized human rights, including freedom of 
        speech and press, freedom of peaceful assembly and association, 
        and freedom of religion;
            (4) the country's participation in the primary, secondary, 
        or tertiary economic boycott of Israel; and
            (5) whether the country otherwise meets the eligibility 
        criteria set forth in subsection (b)(2) of section 502 of the 
        Trade Act of 1974 (19 U.S.C. 2462), other than subparagraph (B) 
        of such subsection.
    (c) Continuing Compliance.--If the President determines under 
subsection (b) that a country should no longer be designated as a 
beneficiary country, the President shall withdraw such designation.
    (d) Countries Eligible for Designation.--The countries referred to 
in subsection (a) are the following countries of the greater Middle 
East or their successor political entities:
            (1) Afghanistan.
            (2) Algeria.
            (3) Azerbaijan.
            (4) Bahrain.
            (5) Bangladesh.
            (6) Egypt.
            (7) Iraq.
            (8) Kuwait.
            (9) Lebanon.
            (10) Morocco.
            (11) Oman.
            (12) Pakistan.
            (13) Qatar.
            (14) Saudi Arabia.
            (15) Tunisia.
            (16) Turkey.
            (17) United Arab Emirates.
            (18) Yemen.
    (e) The Palestinian Authority.--
            (1) Designation.--The President is authorized to designate 
        the Palestinian Authority or its successor political entity as 
        a beneficiary political entity which, if so designated, shall 
        be eligible for the duty-free treatment under this Act as if it 
        were a beneficiary country, if the President determines that 
        the Palestinian Authority--
                    (A) does not participate in acts of terrorism, 
                takes active measures to combat terrorism, and 
                cooperates fully in international efforts to combat 
                terrorism;
                    (B) does not engage in activities that undermine 
                United States national security or foreign policy 
                interests;
                    (C) does not engage in gross violations of 
                internationally recognized human rights, and is making 
                continuing and verifiable progress on the protection of 
                internationally recognized human rights, including 
                freedom of speech and the press, freedom of peaceful 
                assembly and association, and freedom of religion; and
                    (D) accepts Israel's right to exist in peace within 
                secure borders.
            (2) Withdrawal.--The President shall withdraw the 
        designation of the Palestinian Authority under paragraph (1) at 
        any time that the President determines that the Palestinian 
        Authority no longer meets the requirements of paragraph (1).
    (f) Notification of Congress.--In any case in which the President 
withdraws the designation of a country as a beneficiary country under 
subsection (a) or (c), or withdraws the designation of the Palestinian 
Authority under subsection (d)(2), the President shall notify the 
Congress of such withdrawal and the reasons therefor.

SEC. 3. RULE OF ORIGIN GENERAL RULE.

    (a) General Rule.--
            (1) Duty-free treatment.--The duty-free treatment provided 
        under this Act shall apply to any article which is the growth, 
        product, or manufacture of 1 or more beneficiary countries if--
                    (A) that article is imported directly from a 
                beneficiary country into the customs territory of the 
                United States; and
                    (B) the sum of--
                            (i) the cost or value of the materials 
                        produced in 1 or more beneficiary countries, 
                        plus
                            (ii) the direct cost of processing 
                        operations performed in such beneficiary 
                        country or countries,
                is not less than 35 percent of the appraised value of 
                such article at the time it is entered.
            (2) U.S. content.--For purposes of determining the 
        percentage referred to in paragraph (1)(B), if the cost or 
        value of materials produced in the customs territory of the 
        United States is included with respect to an article to which 
        this paragraph applies, an amount not to exceed 15 percent of 
        the appraised value of the article at the time it is entered 
        that is attributed to such United States cost or value may be 
        applied toward determining the percentage referred to in 
        paragraph (1)(B).
    (b) Definition.--In this section, the term ``entered'' means 
entered, or withdrawn from warehouse for consumption, in the customs 
territory of the United States.
Directs the President to provide duty-free treatment for certain tents imported from Afghanistan, Algeria, Azerbaijan, Bahrain, Bangladesh, Egypt, Iraq, Kuwait, Lebanon, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Tunisia, Turkey, the United Arab Emirates, or Yemen (beneficiary countries).

Prohibits a country from being designated, and if designated, requires it to be withdrawn if it is: (1) listed by the U.S. Department of State as a state sponsor of terrorism; or (2) engaged in activities that undermine U.S. national security or foreign policy interests.

Requires the President, after one year and annually thereafter, to review and determine if a basis exists for withdrawal of such duty-free treatment, taking into consideration: (1) whether or not each beneficiary country has established, or is making continual progress toward establishing, a market-based economy, the rule of law and the right to due process, political pluralism, and other specified economic and political goals; (2) the country's record on activities that undermine U.S. national security or foreign policy interests, and support of a peaceful resolution of the Israeli-Palestinian conflict; (3) whether it is a signatory of the United Nations Declaration of Human Rights, does not engage in gross violations of internationally recognized human rights, and is making continuing and verifiable progress on the protection of internationally recognized human rights; (4) the country's participation in the primary, secondary, or tertiary economic boycott of Israel; and (5) whether it otherwise meets specified eligibility criteria of the Trade Act of 1974. Requires the President to terminate the designation of any beneficiary country determined no longer to meet the requirements of this Act.

Authorizes the President to designate the Palestinian Authority or its successor political entity as a beneficiary political entity, which, if so designated, shall be eligible for the duty-free treatment under this Act as if it were a beneficiary country, if the Authority: (1) does not participate in acts of terrorism, takes active measures to combat terrorism, and cooperates fully in international efforts to combat terrorism; (2) does not engage in activities that undermine U.S. national security or foreign policy interests; (3) does not engage in gross violations of internationally recognized human rights, and is making continuing and verifiable progress on the protection of internationally recognized human rights; and (4) accepts Israel's right to exist in peace within secure borders. Requires the President to terminate the designation of the Authority if it is determined that the Authority no longer meets such requirements.

Requires the President to notify Congress concerning the withdrawal of a country's or the Authority's designation.

Prescribes the rule of origin for tents imported directly from beneficiary countries. Requires that the sum of the cost or value of the materials produced in one or more beneficiary countries, plus the direct cost of processing operations performed in such beneficiary country or countries, be at least 35 percent of the appraised value of such article at the time it is entered into the U.S. customs territory.
To extend trade benefits to certain tents imported into the United States.