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

    Notwithstanding any other provision of law, the President shall 
provide duty-free treatment for any article classified under Harmonized 
Tariff Schedule heading 6306.22.90 from the beneficiary countries 
eligible for designation under section 2 of this Act.

SEC. 2. DESIGNATION OF ELIGIBLE COUNTRIES.

    (a) In General.--The President shall designate any country listed 
in subsection (c) as a beneficiary country. After one year of enactment 
of this Act, the President shall conduct a review to determine if a 
basis exists for the withdrawal of duty-free treatment, taking into 
consideration whether or not each beneficiary country--
            (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 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) does not engage in activities that undermine United 
        States national security or foreign policy interests, and 
        supports a peaceful resolution of the Israeli-Palestinian 
        conflict;
            (3) 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, including freedom of 
        speech and press, freedom of peaceful assembly and association, 
        and freedom of religion;
            (4) is not listed by the United States Department of State 
        as a state sponsor of terrorism and cooperates fully in 
        international efforts to combat terrorism;
            (5) does not participate in the primary, secondary, or 
        tertiary economic boycott of Israel; and
            (6) otherwise meets the eligibility criteria set forth in 
        section 502(b)(2) of the Trade Act of 1974 (19 U.S.C. 
        2462(b)(2)), other than section 502(b)(2)(B).
    (b) Continuing Compliance.--If the President determines that a 
designated beneficiary country no longer meets the requirements 
described in subsection (a), the President shall terminate the 
designation of the country made pursuant to subsection (a) and inform 
Congress of the President's determination and the reasons therefor.
    (c) Countries Eligible for Designation.--In designating countries 
as beneficiary countries under this Act, the President shall consider 
only 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.
    (d) The Palestinian Authority.--The President is also authorized to 
designate the Palestinian Authority or its successor political entity 
as a beneficiary political entity which, if so designated, shall be 
accorded benefits under this Act as if it were a beneficiary country, 
if the President determines that the Palestinian Authority--
            (1) satisfies the conditions of subsection (a) (1) and (2);
            (2) does not participate in acts of terrorism, and takes 
        active measure to combat terrorism;
            (3) cooperates fully in international efforts to combat 
        terrorism;
            (4) 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
            (5) accepts Israel's right to exist in peace within secure 
        borders.

SEC. 3. RULE OF ORIGIN.

    (a) General Rule.--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--
            (1) that article is imported directly from a beneficiary 
        country into the customs territory of the United States; and
            (2) the sum of--
                    (A) the cost or value of the materials produced in 
                1 or more beneficiary countries, plus
                    (B) 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.
    For purposes of determining the percentage referred to in 
subparagraph (2), 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 U.S. cost or value may be applied toward 
determining the percentage referred to in subparagraph (2).
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).

Requires the President, after one year, to review and determine if a basis exists for withdrawal of such duty-free treatment, taking into consideration whether or not each beneficiary country: (1) 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) does not engage in activities that undermine U.S. national security or foreign policy interests, and supports a peaceful resolution of the Israeli-Palestinian conflict; (3) 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) is not listed by the U.S. Department of State as a state sponsor of terrorism and cooperates fully in international efforts to combat terrorism; (5) does not participate in the primary, secondary, or tertiary economic boycott of Israel; and (6) 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 such requirements.

Authorizes the President to designate the Palestinian Authority or its successor political entity as a beneficiary political entity accorded benefits under this Act as if it were a beneficiary country, if the Authority; (1) meets the first two requirements of this Act; (2) does not participate in acts of terrorism, and takes active measures to combat terrorism; (3) cooperates fully in international efforts to combat terrorism; (4) 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 (5) accepts Israel's right to exist in peace within secure borders.

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.