WORLD TRADE  
ORGANIZATION  G/C/W/510/Add.1 
17 March 2005 
 
 (05-1106) 
Council for Trade in Goods  
  
 
REQUEST FOR A WAIVER 
 
Andean Trade Preference Act (ATPA as amended
) 
 
Addendum  
 
  The following legislation and annexes, receive d from the delegation of the United States on 
24 February 2005, are circulated as supplemental information to the original waiver request 
(G/C/W/510). 
 
_______________ 
 G/C/W/510/Add.1 
Page 2  
 
 ANNEX 1 
 
WTO DOCUMENT G/L/102 – DESCRIPTIO N OF ORIGINAL ATPA PROGRAMME 
 
 
WORLD TRADE  G/L/102  
  4 September 1996 
ORGANIZATION  
  (96-3478)  
 
  Original:  English 
COUNCIL FOR TRADE IN GOODS 
19 September 1996  
 
  
ANDEAN TRADE PREFERENCE ACT
 
 
Request for Renewal of Waiver  
   
 The following communication has been received from the Permanent Mission of the United 
States.    _________________  
 
 By the Decision of the CONTRACTING PA RTIES to the GATT 1947 of 19 March 1992 
(L/6991, BISD 31S/385), the United States was granted a waiver of its obligations under paragraph 1 of 
Article 1 of the GATT 1947, for the provision of duty -free treatment to eligible  products of beneficiary 
Andean countries under the Andean Trade Preference Act (ATPA).  Th is waiver was granted for the 
period 4 December 1991 until 4 December 2001.  Pursuant  to paragraph 1(b)(iii) of the GATT 1994, the 
waiver became part of  the GATT 1994 when the Marrakesh Agreement Establishing the World Trade 
Organization (“WTO Agreement”)  entered into force on 1 January 1995.  As provided for in paragraph 
2 of the Understanding in Respect of Waivers of Ob ligations under the General Agreement on Tariffs 
and Trade 1994, unless renewed, this waiver will expire on 31 December 1996, two years after entry 
into force of the WTO Agreement. 
 
 The ATPA, which was signed into law on 4 D ecember 1991, authorizes th e President to provide 
certain trade benefits to four A ndean nations -- Bolivia, Colombia, Ecuador and Peru.  The Act is 
intended to help the beneficiaries reduce the pr oduction and trafficking of  illicit drugs by offering 
opportunities to expand trade in legi timate products.  The ATPA provide s almost the same benefits as 
the Caribbean Basin Economic Recovery Act, a wa iver for which was granted by Decision of the 
General Council on 15 November 1995 ( WT/L/104).  Congress authorized the ATPA for a period of 
ten years, ending on 4 December  2001.   The United States requests that Members renew the waiver for the period ending on 4 December 2001, in order to enable the United Stat es to continue to provi de duty-free access for 
imports of eligible articles into the United States from beneficiary Andean c ountries, as provided in the 
Andean Trade Preferences Act (P ublic Law 102-182 of 4 December 1991).  G/C/W/510/Add.1 
 Page 3 
 
 
  
 A waiver of paragraph 1 of Ar ticle I of the GATT 1994 is necessary so that the United States 
can continue to provide such duty-free treatment cons istent with its international obligations.  This 
request is made in accordance with the Guiding Principl es to be followed in considering applications for 
waivers adopted on 1 November 1956; the Understand ing in Respect of Waivers of Obligations under 
the General Agreement on Tariffs and Trade 1994; a nd paragraphs 3 and 4 of Article IX of the WTO 
Agreement.   The policy objectives of the ATPA a nd the exceptional circumstances justifying a waiver 
are described below.  
 
Discussion  
 
 In September 1989, the Administration announ ced the Andean Trade Initiative (ATI) and 
established the interagency Andean Trade Task Force.  The general guidance for this Task Force was to examine carefully US trade laws a nd policies for ways to expand trad e opportunities between the United 
States and the drug-producing count ries of the Andean region.  
  At the February 1990 Cartagena Drug Su mmit, President Bush agreed, inter
 alia, to facilitate 
access to the United States market.  The ATPA is intended to fulfil this commitment. 
  On 23 July 1990, the Administration proposed to Congress a program of benefits for the four 
Andean nations of Bolivia, Colomb ia, Ecuador and Peru similar to those enjoyed by Caribbean Basin 
Initiative (CBI) benefi ciaries.  A bill providing such benefi ts was sent to Congress on 5 October 1990, 
and introduced later in January 1991. The ATPA passed Congress on 26 November, 1991.  On 
4 December 1991, the ATPA was signed into law.  
Purpose
 
  The ATPA should be viewed in the context of the use of US trade policy in our efforts to 
encourage countries dependent on trade in narcotics to develop alternative legitimate crops and new industries capable of competing in the world ma rket.  Drug production and trafficking of cocaine 
presently inflicts far more serious economic and social consequences on the United States than any other 
illicit drug.  Virtually all cocaine originates in the countries that benefit from the ATPA.  The economies 
of this region have been seriously affected by the displacement of legitimate economic activity by that of 
narcotics producers and traffickers.  The United States is using trade opportunities, such as those offered 
in the ATPA, as incentives for encouraging people in the Andean nations to move out of illicit drugs and 
into legitimate products. 
 
 The ATPA augments the benefits provided to th e region under the GSP, as  well as the efforts of 
other nations to promote trade and economic development in the region. 
  The United States is seeking a waiver from pa ragraph 1 of Article I in  order to continute to 
implement the key provisions of the ATPA, which pr ovide a temporary extension of one-way, reduced-
tariff access for the Andean nations.  Duty-free trea tment is extended on all products, with the exception 
of textiles and apparel, footwear, petroleum and petroleum products, certain leather products, a minor 
category of watches and watch parts, canned tuna and rum.  The tariffs of those leather products 
excluded from duty-free treatment we re being reduced by 20 per cent, subject to certain limitations, 
phased-in over five years beginni ng from 4 December 1991.  The prefer ences will last for ten years, 
having commenced on 4 December 1991. 
 Effect on other contracting parties
 
 G/C/W/510/Add.1 
Page 4  
 
  The tariff preferences provided under the ATPA  have not and will not create new barriers or 
otherwise impede the trade of cont racting parties because beneficiary countries represent a very small 
share of US trade and because the program  is limited in both scope and duration.   
  The trade figures provided in Annex 1 and in th e information submitted by the United States for 
the 1991 waiver demonstrate that the preference  given to ATPA imports has not resulted in 
displacement of like products from non-ATPA sources.  Effect on MFN and GSP
 
 
 The ATPA program is a completely autonomous  program which has never involved the binding 
of margins of preference.  The pr ogram did not impede U. S. tariff nego tiations in the Uruguay Round, in 
which a major objective was the zero-for-zero initia tive for elimination of ta riffs on a most-favoured-
nation basis.  The ATPA program is  also independent of the U.S. G SP program as a matter of statute 
and a matter of policy.    
 On   August 20, 1996, President Clinton signed legi slation to reauthori ze the GSP program, 
retroactive to August 1, 1995.  Provision of ATPA  benefits will not negativ ely affect GSP benefits. 
 Conclusion
 
  The United States requests that the Members give its application for a waiver expeditious 
consideration.  The United States is prepared to enter into consu ltations and to cooperate fully in 
providing additional information about the ATPA a nd discussing the specific  terms of the waiver. 
 
  
  G/C/W/510/Add.1
 Page 5ANNEX 1 
 
 
 
 US Trade with the Andeans  
 
 (Values in millions of dollars)  
 U.S. Imports 
 Volume Share Volume Share Volume Share Volume Share Volume Share 
Source 1991  1992  1993  1994  1995  
Total U.S. Imports  487,129 100.00% 532,665 100.00% 580,659 100.00% 663,256 100.00% 743,505 100.00%
Bolivia  208 0.04% 162 0.03% 191 0.03% 260 0.03% 263 0.04%
Colombia  2,736 0.53% 2,837 0.53% 3,032 0.52% 3,171 0.48% 3,755 0.51%
Ecuador  1,327 0.25% 1,344 0.25% 1,399 0.24% 1,726 0.26% 1,930 0.26%
Peru  776 0.14% 738 0.14% 754 0.13% 841 0.13% 1,035 0.14%
Total ATPA  5,047 0.96% 5,081 0.95% 5,376 0.92% 5,738 0.90% 6,983 0.95%
 
 G/C/W/510/Add.1 
Page 6  
 
 ANNEX II.a 
 
ANDEAN TRADE PREFERENCE ACT, AS AMENDED 
  
19 USC CHAPTER 20 - ANDEAN TRADE PREFERENCE 
 
CHAPTER 20 - ANDEAN TRADE PREFERENCE 
 
Sec. 3201. Authority to grant duty-free treatment. 
3202. Beneficiary country.        (a) Definitions.         (b) Countries eligible for designation; congressional notification.             (c) Limitations on designation. 
           (d) Factors affecting designation. 
           (e) Withdrawal or suspension of designation.             (f) Reporting requirements. 3203. Eligible articles.          (a) In general.             (b) Exceptions and special rules. 
          (c) Suspension of duty-free treatment. 
           (d) Emergency relief with respect to perishable products.             (e) Fees under section 624 of title 7.               (f) Tariff-rate quotas.  3204. International Trade Commission reports on impact of this chapter. 
           (a) Reporting requirements. 
           (b) Report requirements.          (c) Submission dates; public comment. 3205. Impact study by Secretary of Labor. 3206. Termination of preferential treatment. Sec. 3201. Authority to grant duty-free treatment 
       The President may proclaim duty-free treatment (or other preferential treatment) for all 
eligible articles from any beneficiary country in accordance with the provisions of this chapter. 
Sec. 3202. Beneficiary country      (a) Definitions        For purposes of this chapter - 
         (1) The term ''beneficiary country'' means any country listed in subsection (b)(1) of this 
section with respect to which there is in effect  a proclamation by the President designating such 
country as a beneficiary country for purposes of this chapter.          (2) The term ''entered'' means entere d, or withdrawn from warehouse for consumption, in 
the customs territory of the United States.          (3) The term ''HTS'' means Ha rmonized Tariff Schedule of the United States. 
     (b) Countries eligible for designation; congressional notification 
       (1) In designating countries as beneficiary countries under this chapter, the President shall consider only the following countries or successor political entities:          Bolivia          Ecuador 
        Colombia 
         Peru.        (2) Before the President designates any country as a beneficiary country for purposes of this chapter, he shall notify the House of Representa tives and the Senate of his intention to make such 
designation, together with the considerations entering into such decision.  G/C/W/510/Add.1 
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      (c) Limitations on designation 
       The President shall not designate any country a beneficiary country under this chapter -          (1) if such country is a Communist country;          (2) if such country -            (A) has nationalized, expropriated or  otherwise seized ownership or control of property 
owned by a United States citizen or by a corporation,  partnership, or association which is 50 percent 
or more beneficially owned by United States citizens,            (B) has taken steps to repudiate or nullify -              (i) any existing contract or agreement with, or              (ii) any patent, trademark, or other intellectual property of, a United States citizen or a 
corporation, partnership, or association, which is 50 percent or more beneficially owned by United 
States citizens, the effect of which is to nationa lize, expropriate, or othe rwise seize ownership or 
control of property so owned, or            (C) has imposed or enforced taxes or other exactions, restrictive maintenance or operational conditions, or othe r measures with respect to property so owned, the effect of which is to 
nationalize, expropriate, or otherw ise seize ownership or control of such property, unless the President 
determines that -              (i) prompt, adequate, and effective compensation has been or is being made to such citizen, 
corporation, partnership, or association,              (ii) good-faith negotiations to provide prompt, adequate, and effective compensation under 
the applicable provisions of international law are in  progress, or such country is otherwise taking steps 
to discharge its obligations under international la w with respect to such citizen, corporation, 
partnership, or association, or              (iii) a dispute involving such citizen, corporation, partne rship, or association, over 
compensation for such a seizure has been submitt ed to arbitration under the provisions of the 
Convention for the Settlement of Investment Disputes,  or in another mutually agreed upon forum, and 
promptly furnishes a copy of such determina tion to the Senate and House of Representatives; 
         (3) if such country fails to act in good faith in recognizing as binding or in enforcing arbitral awards in favor of United States citizens or a corporation, partnership, or association which is 
50 percent or more beneficially ow ned by United States citizens, which have been made by arbitrators 
appointed for each case or by permanent arbitral bo dies to which the parties involved have submitted 
their dispute; 
         (4) if such country affords preferen tial treatment to the products of a developed country, 
other than the United States, and if such preferentia l treatment has, or is likely to have, a significant 
adverse effect on United States commerce, unless the President -            (A) has received assurances satisfact ory to him that such preferential treatment will be 
eliminated or that action will be taken to assure th at there will be no such significant adverse effect, 
and 
           (B) reports those assurances to the Congress;          (5) if a government-owned entity in su ch country engages in the broadcast of copyrighted 
material, including films or television material, bel onging to United States copyright owners without 
their express consent or such country fails to work  towards the provision of adequate and effective 
protection of intellectual property rights; 
         (6) unless such country is a signatory to a treaty, convention, protocol, or other agreement 
regarding the extradition of United States citizens; and          (7) if such country has not or is not ta king steps to afford internationally recognized worker 
rights (as defined in section 2467(4) of this title) to  workers in the country (including any designated 
zone in that country).  Paragraphs (1), (2), (3), (5), and (7) shall not prevent the designation of any 
country as a beneficiary country under this chapter if the President determines that such designation 
will be in the national economic or security interest of the United States and reports such determination to the Congress with his reasons therefor.      (d) Factors affecting designation        In determining whether to designate a ny country a beneficiary country under this chapter, G/C/W/510/Add.1 
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 the President shall take into account - 
         (1) an expression by such country of its desire to be so designated;          (2) the economic conditions in such c ountry, the living standards of its inhabitants, and any 
other economic factors whic h he deems appropriate; 
         (3) the extent to which such country  has assured the United States it will provide equitable 
and reasonable access to the markets and basic commodity resources of such country; 
         (4) the degree to which such count ry follows the accepted rules of international trade 
provided for under the WTO Agreement and the multila teral trade agreements (as such terms are 
defined in paragraphs (9) and (4), resp ectively, of section 3501 of this title); 
         (5) the degree to which such country uses export subsidies or imposes export performance 
requirements or local content requirements which distort international trade; 
         (6) the degree to which the trade polici es of such country as they relate to other beneficiary 
countries are contributing to the revitalization of the region;          (7) the degree to which such country is undertaking self-help measures to protect its own economic development; 
         (8) whether or not such country has ta ken or is taking steps to afford to workers in that 
country (including any designated zone in that c ountry) internationally recognized worker rights; 
         (9) the extent to which such count ry provides under its law adequate and effective means 
for foreign nationals to secure, exercise, and en force exclusive rights in intellectual property, 
including patent, trademark, and copyright rights;          (10) the extent to which such country  prohibits its nationals fro m engaging in the broadcast 
of copyrighted material, including films or televi sion material, belonging to United States copyright 
owners without their express consent;          (11) whether such country has met the narcotics co-operation certification criteria set forth in section 2291(h)(2)(A) of title 22 for elig ibility for United States assistance; and 
         (12) the extent to which such country is prepared to cooperate with the United States in the 
administration of the provisions of this chapter. 
     (e) Withdrawal or suspension of designation        (1)(A) The President may -          (i) withdraw or suspend the desi gnation of any country as a beneficiary country, or 
        (ii) withdraw, suspend, or limit the application of duty-free treatment under this chapter to 
any article of any country, if, after such designa tion, the President determines that as a result of 
changed circumstances such a country should be ba rred from designation as a beneficiary country. 
       (B) The President may, after the requirements of paragraph (2) have been met - 
         (i) withdraw or suspend the designation of any country as an ATPDEA beneficiary country, or          (ii) withdraw, suspend, or limit the application of preferential treatment under section 
3203(b)(1), (3), or (4) of this title to any article of any c ountry, if, after such designation, the President 
determines that, as a result of changed circumst ances, the performance of such country is not 
satisfactory under the criteria set fort h in section 3203(b)(6)(B) of this title. 
       (2)(A) The President shall publish in the Federal Register notice of the action the President 
proposes to take under paragraph (1) at l east 30 days before taking such action. 
       (B) The United States Trade Representativ e shall, within the 30-day period beginning on 
the date on which the President publishes under subparagraph (A) notice of proposed action - 
         (i) accept written comments from the public regarding such proposed action, 
         (ii) hold a public hearing on such proposed action, and          (iii) publish in the Federal Register -            (I) notice of the time and pl ace of such hearing prior to the hearing, and 
           (II) the time and place at which such written comments will be accepted. 
     (f) Reporting requirements        (1) In general          Not later than April 30, 2003, and ev ery 2 years thereafter during the period this chapter is 
in effect, the United States Trad e Representative shall submit to the Congress a report regarding the  G/C/W/510/Add.1 
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 operation of this chapter, including - 
           (A) with respect to subsections (c) a nd (d) of this section, the results of a general review of 
beneficiary countries based on the considera tions described in such subsections; and 
           (B) the performance of each bene ficiary country or ATPEA beneficiary country, as the 
case may be, under the criteria set forth in section 3203(b)(6)(B) of this title. 
       (2) Public comment 
         Before submitting the report described in paragraph (1), the United States Trade Representative shall publish a notice in the Federa l Register requesting public comments on whether 
beneficiary countries are meeting the criteria listed in section 3203(b)(6)(B) of this title. 
 
Sec. 3203. Eligible articles 
   (a) In general        (1) Unless otherwise excluded from eligib ility (or otherwise provided for) by this chapter, 
the duty-free treatment (or preferential treatment) provided under this chapter shall apply to any 
article which is the growth, product, or manufacture of a beneficiary country 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 a beneficiary country or 2 or more beneficiary countries under this chapter, or a beneficiary country under the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2701 et seq.) or 2 or more such countries, plus 
           (ii) the direct costs of processing operations performed in a beneficiary country or countries (under this chapter or the Caribbean B asin Economic Recovery Act), is not less than 35 
percent of the appraised value of such article at th e time it is entered.  For purposes of determining the 
percentage referred to in s ubparagraph (B), the term ''beneficiary country'' includes the 
Commonwealth of Puerto Rico and the United States Vi rgin Islands.  If the cost or value of materials 
produced in the customs territory of the United States  (other than the Commonwealth of Puerto Rico) 
is included with respect to an article to which th is paragraph applies, an amount not to exceed 15 
percent of the appraised value of the article at the ti me it is entered that is attributed to such United 
States cost or value may be applied toward determ ining the percentage refe rred to in subparagraph 
(B). 
       (2) The Secretary of the Treasury sha ll prescribe such regulations as may be necessary to 
carry out paragraph (1) including, but not limited to, re gulations providing that, in order to be eligible 
for duty-free treatment under this chapter, an arti cle must be wholly the growth, product, or 
manufacture of a beneficiary country, or must be a new or different article of commerce which has been grown, produced, or manufactured in the benefi ciary country; but no article or material of a 
beneficiary country shall be eligible for such tr eatment by virtue of having merely undergone - 
         (A) simple combining or packaging operations, or          (B) mere dilution with water or mere dilution with another substance that does not 
materially alter the characteristics of the article.        (3) As used in this subsection, the ph rase ''direct costs of processing operations'' includes, 
but is not limited to –  
 (A) all actual labor costs involved in the gr owth, production, manufacture, or assembly of 
the specific merchandise, including fringe benefits, on-the-job training and the cost of engineering, supervisory, quality control,  and similar personnel; and 
         (B) dies, molds, tooling, and depr eciation on machinery and equipment which are allocable 
to the specific merchandise.  Such phrase does not incl ude costs which are not directly attributable to 
the merchandise concerned or are not costs of manufacturing the product, such as (i) profit, and (ii) 
general expense of doing business which are either not allocable to the specific merchandise or are not 
related to the growth, production, manufacture,  or assembly of the merchandise, such as 
administrative salaries, casualty and liability insuran ce, advertising, interest, and salesmen's salaries, 
commissions or expenses. G/C/W/510/Add.1 
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        (4) If the President, pursuant to sec tion 223 of the Caribbean Basin Economic Recovery 
Expansion Act of 1990, considers that the implementa tion of revised rules of origin for products of 
beneficiary countries designated under the Caribbean  Basin Economic Recovery Act (19 U.S.C. 2701 
et seq.) would be appropriate, the President may in clude similarly revised rules of origin for products 
of beneficiary countries designated under this chapte r in any suggested legisl ation transmitted to the 
Congress that contains such rules of origin for pr oducts of beneficiary countries under the Caribbean 
Basin Economic Recovery Act.      (b) Exceptions and special rules        (1) Certain articles that are not import-sensitive          The President may proclaim duty-free treatment under this chapter for any article described 
in subparagraph (A), (B), (C), or (D) that is the growth, product, or manufacture of an ATPDEA 
beneficiary country, that is imported directly into the customs territory of the United States from an 
ATPDEA beneficiary country, and that meets the requirements of this section, if the President 
determines that such article is not import-se nsitive in the context of imports from ATPDEA 
beneficiary countries: 
           (A) Footwear not designated at the time  of the effective date of this chapter as eligible for 
purposes of the generalized system of preferences under title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.).            (B) Petroleum, or any product de rived from petroleum, provided for in headings 2709 and 
2710 of the HTS.            (C) Watches and watch parts (including cases, bracelets and straps), of whatever type 
including, but not limited to, mechanical, quartz dig ital 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.            (D) Handbags, luggage, flat goods, work  gloves, and leather wearing apparel that were not 
designated on August 5, 1983, as eligible artic les for purposes of the generalized system of 
preferences under title V of the Trade Act of 1974. 
       (2) Exclusions          Subject to paragraph (3), duty-free treatment under this chapter may not be extended to - 
           (A) textiles and apparel articles whic h were not eligible articles for purposes of this chapter 
on January 1, 1994, as this chapte r was in effect on that date; 
           (B) rum and tafia classified in subheading 2208.40 of the HTS; 
           (C) sugars, syrups, and sugar-contai ning products subject to over-quota duty rates under 
applicable tariff-rate quotas; or            (D) tuna prepared or preserved in any manner in airtight containers, except as provided in 
paragraph (4).        (3) Apparel articles and certain textile articles 
         (A) In general 
           Apparel articles that are imported di rectly into the customs territory of the United States 
from an ATPDEA beneficiary country shall ente r the United States free of duty and free of any 
quantitative restrictions, limitations, or consultation levels, but only if  such articles are described in 
subparagraph (B).          (B) Covered articles 
           The apparel articles refe rred to in subparagraph (A) are the following: 
           (i) Apparel articles assembled from products of the United States or ATPDEA beneficiary countries or products not available in commercial quantities              Apparel articles sewn or otherwise assembled in 1 or more ATPD EA beneficiary countries, 
or the United States, or both, exclusively from any one or any combination of the following: 
               (I) Fabrics or fabric compone nts wholly formed, or components knit-to-shape, in the 
United States, from yarns wholly formed in the United States or 1 or more ATPDEA beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 
or 5603 of the HTS and are formed in the Unite d States). Apparel articles shall qualify under this 
subclause only if all dyeing, printing, and fini shing of the fabrics from which the articles are  G/C/W/510/Add.1 
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 assembled, if the fabrics are knit fabrics, is carried out in the United States. Apparel articles shall 
qualify under this subclause only if all dyeing, prin ting, and finishing of the fabrics from which the 
articles are assembled, if the fabrics are woven fabrics, is carried out in the United States.                (II) Fabrics or fabric compone nts formed or components knit-to-shape, in 1 or more 
ATPDEA beneficiary countries, from yarns wholly formed in 1 or more ATPDEA beneficiary 
countries, if such fabrics (including fabrics not fo rmed from yarns, if such fabrics are classifiable 
under heading 5602 or 5603 of the HTS and are formed  in 1 or more ATPDEA beneficiary countries) 
or components are in chief value of llama, alpaca, or vicunAE6a.                (III) Fabrics or yarns, to the exte nt that apparel articles of such fabrics or yarns would be 
eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 
401 of the NAFTA. 
           (ii) Additional fabrics              At the request of any interested party, the President is authorized to proclaim additional 
fabrics and yarns as eligible for pref erential treatment under clause (i)(III) if - 
               (I) the President determines that  such fabrics or yarns cannot be supplied by the domestic 
industry in commercial quantities in a timely manner; 
               (II) the President has obtaine d advice regarding the proposed action from the appropriate 
advisory committee established under section 135 of the Trade Act of 1974 (19 (U.S.C. 2155) and the United States International Trade Commission;                (III) within 60 days after the request, the President has submitted a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate that 
sets forth the action proposed to be proclaimed and the reasons for such action, and the advice 
obtained under subclause (II);                (IV) a period of 60 calendar da ys, beginning with the first day on which the President has 
met the requirements of subclause (III), has expired; and                (V) the President has consulte d with such committees regard ing the proposed action during 
the period referred to in subclause (III). 
           (iii) Apparel articles assembled in  1 or more ATPDEA beneficiary countries from regional 
fabrics or regional components              (I) Subject to the limitation set fo rth in subclause (II), appare l articles sewn or otherwise 
assembled in 1 or more ATPDEA beneficiary c ountries from fabrics or from fabric components 
formed or from components knit-to-shape, in 1 or  more ATPDEA beneficiary countries, from yarns 
wholly formed in the United States or 1 or more ATPDEA beneficiary countries (including fabrics not 
formed from yarns, if such fabrics are classifiab le under heading 5602 or 5603 of the HTS and are 
formed in 1 or more ATPDEA beneficiary countri es), whether or not the apparel articles are also 
made from any of the fabrics, fabric components formed, or components knit-to-shape described in 
clause (i) (unless the apparel articles are made exclus ively from any of the fabrics, fabric components 
formed, or components knit-to-shape described in clause (i)). 
             (II) The preferential treatment referr ed to in subclause (I) shall be extended in the 1-year 
period beginning October 1, 2002,  and in each of the 4 succeeding 1-year periods, to imports of 
apparel articles in an amount not to exceed the appl icable percentage of the aggregate square meter 
equivalents of all apparel articles imported into the United States in the preceding 12-month period for 
which data are available. 
             (III) For purposes of subclause (II), th e term ''applicable percen tage'' means 2 percent for 
the 1-year period beginning October 1, 2002, increased in each of the 4 succeeding 1-year periods by equal increments, so that for the period beginning October 1, 2006, the applicable percentage does not 
exceed 5 percent.            (iv) Handloomed, handmade, and folklore articles 
             A handloomed, handmade, or folklo re article of an ATPDEA beneficiary country identified 
under subparagraph (C) that is certified as such by the competent authority of such beneficiary country.            (v) Certain other apparel articles              (I) General rule G/C/W/510/Add.1 
Page 12  
 
                Any apparel article classifiab le under subheading 6212.10 of the HTS, except for articles 
entered under clause (i), (ii), (iii), or (iv), if the article is both cut and sewn or otherwise assembled in 
the United States, or one or more ATPDEA beneficiary countries, or both.              (II) Limitation               During the 1-year period beginn ing on October 1, 2003, and during each of the 3 succeeding 
1-year periods, apparel articles described in s ubclause (I) of a producer or an entity controlling 
production shall be eligible for preferential treatme nt under this paragraph only if the Aggregate cost 
of fabrics (exclusive of all findings and trimmings) formed in the United States  that are used in the 
production of all such articles of that producer or en tity that are entered and eligible under this clause 
during the preceding 1-year period is at least 75 per cent of the aggregate declared customs value of 
the fabric (exclusive of all findi ngs and trimmings) contained in all such articles of that producer or 
entity that are entered and eligible under th is clause during the preceding 1-year period. 
             (III) Development of procedure to ensure compliance                 The United States Customs Serv ice shall develop and Implement methods and procedures 
to ensure ongoing compliance with the requirement set forth in subclause (II). If the Customs Service 
finds that a producer or an entity controlling producti on has not satisfied such requirement in a 1-year 
period, then apparel articles described in subclause (I) of that producer or entity shall be ineligible for 
preferential treatment under this paragraph durin g any succeeding 1-year period until the aggregate 
cost of fabrics (exclusive of all findings and trim mings) formed in the United States that are used in 
the production of such articles of that producer or entity entered during the preceding 1-year period is 
at least 85 percent of the aggregate declared customs value of the fabric (exclu sive of all findings and 
trimmings) contained in all such articles of that pr oducer or entity that are entered and eligible under 
this clause during the preceding 1-year period.            (vi) Special rules              (I) Exception for findings and trimmings                An article otherwise eligible for preferential treatment under this paragraph shall not be 
ineligible for such treatment because the article c ontains findings or trimmings of foreign origin, if 
such findings and trimmings do not exceed 25 percen t 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, zi ppers, including zipper ta pes and labels, and other 
similar products.              (II) Certain interlining 
               (aa) An article otherwise elig ible for preferential treatment under this paragraph shall not 
be ineligible for such treatment becau se the article contains certain inte rlinings 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 termin ate if the President makes a 
determination that United States manufacturers are pr oducing such interlinings in the United States in 
commercial quantities.              (III) De minimis rule 
               An article that would othe rwise be ineligible for pref erential treatment under this 
subparagraph because the article contains yarns not w holly formed in the United States or in one or 
more ATPDEA beneficiary countries shall not be ineligib le for such treatment if the total weight of all 
such yarns is not more than 7 percent of the total weight of the good.              (IV) Special origin rule 
               An article otherwise eligible fo r preferential treatment under clause (i) or (iii) shall not be 
ineligible for such treatment becau se the article contains nylon filame nt 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 from a country that is a party to an agreement with th e United States establishing a free trade area, which  G/C/W/510/Add.1 
 Page 13 
 
 
 entered into force before January 1, 1995. 
           (vii) Textile luggage              Textile luggage -                (I) assembled in an ATPDEA bene ficiary country from fabric wholly formed and cut in the 
United States, from yarns wholly formed in the United States, that is entered under subheading 
9802.00.80 of the HTS; or  
               (II) assembled from fabric cut in an ATPDEA beneficiary country from fabric wholly 
formed in the United States from yarns wholly formed in the United States. 
         (C) Handloomed, handmade, and folklore articles            For purposes of subparagraph (B)(iv) , the President shall consult with representatives of 
the ATPDEA beneficiary countries concerned for th e purpose of identifying particular textile and 
apparel goods that are mutually agreed upon as bein g handloomed, handmade, or folklore goods of a 
kind described in section 2.3(a), (b), or (c) of the Annex or Appendix 3.1.B.11 of the Annex. 
         (D) Penalties for transshipment            (i) Penalties for exporters 
             If the President determines, based  on sufficient evidence, that an exporter has engaged in 
transshipment with respect to apparel articles from an ATPDEA beneficiary country, then the 
President shall deny all benefits under this chap ter to such exporter, and any successor of such 
exporter, for a period of 2 years.            (ii) Penalties for countries              Whenever the President finds , based on sufficient evidence, that transshipment has 
occurred, the President shall request that the ATPDEA beneficiary country or countries through 
whose territory the transshipment has occurred take all necessary and appropriate actions to prevent 
such transshipment.  If the President determines that  a country is not taking such actions, the President 
shall reduce the quantities of apparel articles that may be imported into the United States from such 
country by the quantity of the transshipped articles multiplied by 3, to the extent consistent with the 
obligations of the United States under the WTO. 
           (iii) Transshipment described              Transshipment within the meani ng of this subparagraph has occurred when preferential 
treatment under subparagraph (A) has be en claimed for an apparel article  on the basis of material false 
information concerning the country of origin, manufac ture, processing, or assembly of the article or 
any of its components.  For purposes of this clause, false information is material if disclosure of the 
true information would mean or would have meant that  the article is or was ineligible for preferential 
treatment under subparagraph (A).          (E) Bilateral emergency actions            (i) In general              The President may take bilatera l emergency tariff actions of a kind described in section 4 
of the Annex with respect to any apparel article imported from an ATPDEA beneficiary country if the 
application of tariff treatment under subparagraph (A) to such article results in conditions that would 
be cause for the taking of such actions under such sec tion 4 with respect to a like article described in 
the same 8-digit subheading of the HTS that is imported from Mexico. 
           (ii) Rules re lating to bilatera l emergency action 
             For purposes of applying b ilateral emergency action under this subparagraph - 
               (I) the requirements of paragr aph (5) of section 4 of the Annex (relating to providing 
compensation) shall not apply;                (II) the term ''transition peri od'' in section 4 of the Annex shall mean the period ending 
December 31, 2006; and                (III) the requirements to consu lt specified in section 4 of the Annex shall be treated as 
satisfied if the President requests consultations w ith the ATPDEA beneficiary country in question and 
the country does not agree to consult within the time period specified under section 4 of the Annex. 
       (4) Tuna          (A) General rule            Tuna that is harvested by Unite d States vessels or ATPDEA beneficiary country vessels, G/C/W/510/Add.1 
Page 14  
 
 that is prepared or preserved in any manner, in an ATPDEA beneficiary country, in foil or other 
flexible airtight containers weighing with their cont ents not more than 6.8 kilograms each, and that is 
imported directly into the customs territory of  the United States from an ATPDEA beneficiary 
country, shall enter the United States free of duty and free of any quantitative restrictions. 
         (B) Definitions 
           In this paragraph - 
           (i) United States vessel              A ''United States vessel'' is a vessel having a certificate of documentation with a fishery endorsement under chapter 121 of title 46.            (ii) ATPDEA vessel 
             An ''ATPDEA vessel'' is a vessel - 
               (I) which is registered or recorded in an ATPDEA beneficiary country; 
               (II) which sails under the flag of an ATPDEA beneficiary country; 
               (III) which is at least 75 percent owned by nationals of an ATPDEA beneficiary country or 
by a company having its principal place of business in an ATPDEA beneficiary country, of which the 
manager or managers, chairman of the board of direct ors or of the supervisory board, and the majority 
of the members of such boards are nationals of an  ATPDEA beneficiary country and of which, in the 
case of a company, at least 50 percent of the capital is owned by an ATPDEA beneficiary country or by public bodies or nationals of an ATPDEA beneficiary country;                (IV) of which the master and officers are nationals of an ATPDEA beneficiary country; and 
               (V) of which at least 75 per cent of the crew are nationals of an ATPDEA beneficiary 
country.        (5) Customs procedures          (A) In general            (i) Regulations 
             Any importer that claims prefer ential treatment under paragraph (1), (3), or (4) shall 
comply with customs procedures similar in all mate rial respects to the requi rements of Article 502(1) 
of the NAFTA as implemented pursuant to United  States law, in accordance with regulations 
promulgated by the Secretary of the Treasury.            (ii) Determination              (I) In general 
               In order to qualify for the pref erential treatment under paragraph (1), (3), or (4) and for a 
Certificate of Origin to be valid with respect to an y article for which such treatment is claimed, there 
shall be in effect a determination by the Preside nt that each country described in subclause (II) - 
                 (aa) has implemented and follows, or                  (bb) is making substan tial progress toward implementing and following, procedures and 
requirements similar in all materi al respects to the relevant procedures and requirements under chapter 
5 of the NAFTA.              (II) Country described                A country is described in th is subclause if it is an ATPDEA beneficiary country - 
                 (aa) from which the article is exported; or                  (bb) in which materials used in  the production of the article originate or in which the article 
or such materials undergo production that contribut es to a claim that the article is eligible for 
preferential treatment under paragraph (1), (3), or (4).          (B) Certificate of Origin            The Certificate of Origin that ot herwise would be required pur suant to the provisions of 
subparagraph (A) shall not be required in the case of an article imported under paragraph (1), (3), or 
(4) if such Certificate of Origin would not be required under Article 503 of the NAFTA (as 
implemented pursuant to United States law), if the article were imported from Mexico.          (C) Report on cooperation of  ATPDEA countries concerning circumvention 
           The United States Commissioner of Customs shall conduct a study analyzing the extent to which each ATPDEA beneficiary country -  G/C/W/510/Add.1 
 Page 15 
 
 
              (i) has cooperated fully with the United States, consistent with its domestic laws and 
procedures, in instances of circumvention or alle ged circumvention of existing quotas on imports of 
textile and apparel goods, to establish necessary releva nt facts in the places of import, export, and, 
where applicable, transshipment, including investig ation of circumvention practices, exchanges of 
documents, correspondence, reports, and other relevant information, to the extent such information is 
available; 
 (ii) has taken appropriate measures, consiste nt with its domestic laws and procedures, 
against exporters and importers involved in instances of false declaration concerning quantities, 
description, classification, or origin of textile and apparel goods; and              (iii) has penalized the individuals and entities involved in any such circumvention, 
consistent with its domestic laws  and procedures, and has worked closely to seek the cooperation of 
any third country to prevent such circumventi on from taking place in that third country.  The 
Commissioner of Customs shall submit to the Congress, not later than October 1, 2003, a report on the study conducted under this subparagraph.        (6) Definitions 
         In this subsection - 
         (A) Annex            The term ''the Annex'' means Annex 300-B of the NAFTA.          (B) ATPDEA beneficiary country            The term ''ATPDEA beneficiary coun try'' means any ''beneficiary country'', as defined in 
section 3202(a)(1) of this title, which the President designates as an ATPDEA beneficiary country, 
taking into account the criteria contained in subsect ions (c) and (d) of section 3202 of this title and 
other appropriate criteria, including the following:              (i) Whether the benefici ary country has demonstrated a commitment to - 
               (I) undertake its obligations unde r the WTO, including those agreements listed in section 
3511(d) of this title, on or ahead of schedule; and 
               (II) participate in negotiations toward the completion of the FTAA or another free trade 
agreement.              (ii) The extent to which the country provides protection of intellectual property rights consistent with or greater than the protection a fforded under the Agreement on Trade-Related Aspects 
of Intellectual Property Rights described  in section 3511(d)(15) of this title. 
             (iii) The extent to which the country provides internationally recognized worker rights, 
including - 
               (I) the right of association;                (II) the right to organize and bargain collectively;                (III) a prohibition on the use of any form of forced or compulsory labor;                (IV) a minimum age for the employment of children; and 
               (V) acceptable conditions of work with respect to minimu m wages, hours of work, and 
occupational safety and health.              (iv) Whether the country has impl emented its commitments to el iminate the worst forms of 
child labor, as defined in section 507(6) of the Trade Act of 1974 (19 U.S.C. 2467(6)).              (v) The extent to which the country has met the counternarcotics certification criteria set forth in section 2291j of title 22 for eligibility for United States assistance. 
             (vi) The extent to which the count ry has taken steps to become a party to and implements 
the Inter-American Convention Against Corruption.              (vii) The extent to which the country -                (I) applies transparent, nondiscriminatory, and competitive procedures in government 
procurement equivalent to those contained in th e Agreement on Government Procurement described 
in section 3511(d)(17) of this title; and 
               (II) contributes to efforts in inte rnational fora to develop and implement international rules 
in transparency in government procurement.              (viii) The extent to which the c ountry has taken steps to support the efforts of the United 
States to combat terrorism. G/C/W/510/Add.1 
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          (C) NAFTA 
           The term ''NAFTA'' means the North American Free Trade Agreement entered into 
between the United States, Mexico, and Canada on December 17, 1992.          (D) WTO            The term ''WTO'' has the mean ing given that term in section 3501 of this title. 
         (E) ATPDEA 
           The term ''ATPDEA'' means the Andean Trade Promotion and Drug Eradication Act. 
         (F) FTAA            The term ''FTAA'' means the Free Trade Area for the Americas.      (c) Suspension of duty-free treatment 
       (1) The President may by proclamation suspend the duty-free treatment provided by this 
chapter with respect to any eligible article and may proclaim a duty rate for such article if such action 
is proclaimed under chapter 1 of title II of the Tr ade Act of 1974 (19 U.S.C. 2251 et seq.) or section 
1862 of this title.        (2) In any report by the United Stat es International Trade Commission to the President 
under section 202(f) of the Trade Act of 1974 (19 U.S.C. 2252(f)) regarding any article for which 
duty-free treatment has been proclaimed by the Pres ident pursuant to this chapter, the Commission 
shall state whether and to what extent its finding s and recommendations apply to such article when 
imported from beneficiary countries.        (3) For purposes of section 203 of th e Trade Act of 1974 (19 U.S.C. 2253), the suspension 
of the duty-free treatment provided by this chap ter shall be treated as an increase in duty. 
       (4) No proclamation providing solely for a suspension referred to in paragraph (3) of this 
subsection with respect to any article shall be  taken under section 203 of the Trade Act of 1974 (19 
U.S.C. 2253) unless the United States Internati onal Trade Commission, in addition to making an 
affirmative determination with respect to such ar ticle under section 202(b) of  the Trade Act of 1974 
(19 U.S.C. 2252(b)), determines in the course of its  investigation under such section that the serious 
injury (or threat thereof) substantially caused by im ports to the domestic industry producing a like or 
directly competitive article results from the duty-free treatment provided by this chapter.        (5)(A) Any action taken under section 203 of the Trade Act of 1974 (19 U.S.C. 2253) that 
is in effect when duty-free treatment is proclaim ed under section 3201 of this title shall remain in 
effect until modified or terminated.        (B) If any article is subject to any such action at the time duty-free treatment is proclaimed 
under section 3201 of this title, the President may redu ce or terminate the application of such action to 
the importation of such article from beneficiary c ountries prior to the otherwise scheduled date on 
which such reduction or termination would occur pu rsuant to the criteria and procedures of section 
204 of the Trade Act of 1974 (19 U.S.C. 2254).      (d) Emergency relief with respect to perishable products 
       (1) If a petition is filed with the Unite d States International Trade Commission pursuant to 
the provisions of section 201 of the Trade Act of 1974 (19 U.S.C. 2251) regarding a perishable product and alleging injury from imports from benefi ciary countries, then the petition may also be 
filed with the Secretary of Agriculture with a requ est that emergency relief be granted pursuant to 
paragraph (3) of this subsection with respect to such article. 
       (2) Within 14 days after the filing of  a petition under paragraph (1) of this subsection - 
         (A) if the Secretary of Agriculture has reason to believe that a perishable product from a 
beneficiary country is being imported into the Unit ed States in such increased quantities as to be a 
substantial cause of serious injury, or the thr eat thereof, to the domestic industry producing a 
perishable product like or directly competitive with  the imported product and th at emergency action is 
warranted, he shall advise the President and recomme nd that the President take emergency action; or 
         (B) the Secretary of Agriculture shall publish a notice of his determination not to 
recommend the imposition of emergency action and so advise the petitioner. 
       (3) Within 7 days after the President receives a recommendation from the Secretary of Agriculture to take emergency action pursuant to pa ragraph (2) of this subsection, he shall issue a 
proclamation withdrawing the duty-free treatment provi ded by this chapter or publish a notice of his  G/C/W/510/Add.1 
 Page 17 
 
 
 determination not to ta ke emergency action. 
       (4) The emergency action provided by para graph (3) of this subsec tion shall cease to apply 
-          (A) upon the taking of action under sec tion 203 of the Trade Act of 1974 (19 U.S.C. 2253), 
         (B) on the day a determination by the President not to take action under section 203(b)(2) 
of such Act becomes final, 
         (C) in the event of a report of the United States International Trade Commission containing 
a negative finding, on the day of the Commission' s report is submitted to the President, or 
         (D) whenever the President determin es that because of changed circumstances such relief 
is no longer warranted. 
       (5) For purposes of this subsec tion, the term ''perishable product'' means - 
         (A) live plants and fresh cut flowers provided for in chapter 6 of the HTS;          (B) fresh or chilled vegetables pr ovided for in headings 0701 through 0709 (except 
subheading 0709.52.00) and heading 0714 of the HTS;          (C) fresh fruit provided for in subheadings 0804.20 through 0810.90 (except citrons of 
subheadings 0805.90.00, tamarinds and kiwi fruit of subheading 0810.90.20, and cashew apples, 
mameyes colorados, sapodillas, soursops and sweetso ps of subheading 0810.90.40) of the HTS; or 
         (D) concentrated citrus fruit juice provided for in subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS.      (e) Fees under section 624 of title 7        No proclamation issued pursuant to th is chapter shall affect fees imposed pursuant to 
section 624 of title 7. 
     (f) Tariff-rate quotas        No quantity of an agricultural produc t subject to a tariff-rate quota that exceeds the in-
quota quantity shall be eligible for dut y-free treatment under this chapter. 
  
Sec. 3204. International Trade Commission reports on impact of this chapter 
       (a) Reporting requirements        (1) In general          The United States International Tr ade Commission (in this section referred to as the 
''Commission'') shall submit to Congress and the Pr esident biennial reports regarding the economic 
impact of this chapter on United States industries and consumers, and, in  conjunction with other 
agencies, the effectiveness of this chapter in  promoting drug-related crop eradication and crop 
substitution efforts of the beneficiary countries.        (2) Submission          During the period that this chapter is in  effect, the report required by paragraph (1) shall be 
submitted on December 31 of each year that the repor t required by section 2704 of this title is not 
submitted.        (3) Treatment of Puerto Rico, etc.          For purposes of this section, industr ies in the Commonwealth of Puerto Rico and the 
insular possessions of the United States are c onsidered to be United States industries. 
     (b) Report requirements 
       (1) Each report required under subsecti on (a) of this section shall include, but not be 
limited to, an assessment by the Commission regarding -          (A) the actual effect, during the period covered by the report, of this chapter on the United 
States economy generally as well as on those specific domestic industries which produce articles that 
are like, or directly competitive with, articles be ing imported into the United States from beneficiary 
countries; 
         (B) the probable future effect th at this chapter will have on the United States economy 
generally, as well as on such domestic industries, before  the provisions of this chapter terminate; and 
         (C) the estimated effect that this chapter has had on the drug-related crop eradication and 
crop substitution efforts of the beneficiary countries. G/C/W/510/Add.1 
Page 18  
 
        (2) In preparing the assessments require d under paragraph (1), the Commission shall, to the 
extent practicable -          (A) analyze the production, trade a nd consumption of United States products affected by 
this chapter, taking into consideration employment , profit levels, and use of productive facilities with 
respect to the domestic industries concerned, and such  other economic factors in such industries as it 
considers relevant, including prices, wages, sales, inventories, patterns of demand, capital investment, 
obsolescence of equipment, and dive rsification of production; and 
         (B) describe the nature and extent of any significant change in employment, profit levels, and use of productive facilities, and such other co nditions as it deems relevant in the domestic 
industries concerned, which it believes are attributable to this chapter. 
     (c) Submission dates; public comment 
       (1) Each report required under subsecti on (a) of this section shall be submitted to the 
Congress before the close of the 9-month period begi nning on the day after the last day of the period 
covered by the report.        (2) The Commission shall provide an opportunity for the submission by the public, either 
orally or in writing, or both, of  information relating to matters th at will be addressed in the reports. 
 Sec. 3205. Impact study by Secretary of Labor          The Secretary of Labor, in consultati on with other appropriate Federal agencies, shall 
undertake a continuing review and analysis of the im pact that the implementation of the provisions of 
this chapter has with respect to  United States labor; and shall make an annual written report to 
Congress on the results of such review and analysis. 
  Sec. 3206. Termination of preferential treatment          No duty-free treatment or other pref erential treatment extended to beneficiary countries 
under this chapter shall remain in effect after December 31, 2006. 
    G/C/W/510/Add.1 
 Page 19 
 
 
 ANNEX II.b 
 
MISCELLANEOUS TRADE AND TECH NICAL CORRECTIONS ACT OF 2004  
 
SEC. 2003. ARTICLES ELIGIBLE FOR PR EFERENTIAL TREATMENT UNDER THE 
ANDEAN TRADE PREFERENCE ACT. 
 (a) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 or any other 
 provision of law, and subject to subsection (c)-- 
  (1) with respect to any article describ ed in section 204(b)(1)(D) of the Andean  
 Trade Preference Act (as amended by section 3103(a)(2) of the Trade Act of  
 2002) for which the President proclaims duty free treatment pursuant to section  
 204(b)(1) of the Andean Trade Preference Act, the entry of any such article on or   after August 6, 2002, and before the da te on which the President so proclaims  
 duty free treatment for such article shall be subj ect to the rate of duty applicable on August 5, 
2002; and 
  (2) such entries shall be liquidated or reliquidated as if the reduced duty  
 preferential treatment applied, and the S ecretary of the Treasury shall refund any  
 excess duties paid with r espect to such entry. 
(b) ENTRY- As used in this subsection, th e term `entry' includes a withdrawal from 
 warehouse for consumption. 
 
SEC. 2004.  TECHNICAL AMENDMENTS  
 
(e) UNITED STATES VESSELS- Section 204(b)(4)(B)(i) of the Andean Trad e Preference Act is 
amended to read as follows: 
I. `(i) UNITED STATES VESSEL- A `United States vessel' is-- 
`(I) a vessel that has a certificate of documentation with a fishery 
endorsement under chapter 121 of title 46, United States Code; or 
`(II) in the case of a vessel without a fishery endorsement, a 
vessel that is documented under the laws of the United States and 
for which a license has been issued pursuant to section 9 of the 
South Pacific Tuna Act of 1988 (16 U.S.C. 973g).'. 
 
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