WORLD TRADE  
ORGANIZATION  G/C/W/508/Rev.2 
16 March 2009 
 
 (09-1303) 
Council for Trade in Goods Original:   English 
  
 
REQUEST FOR A WAIVER
1 
 
Caribbean Basin Economic Recove ry Act (CBERA as amended)  
 
Revision  
 
  The following communication, dated 12 March 2009, is being circulated at the request of the Delegation of the United States.  
_______________ 
 
 
Special United States Trade Arrangements for Countries of Central America 
 
and the Caribbean  
  
 Pursuant to Article IX:3 of the Marrak esh Agreement Establishing the World Trade 
Organization (WTO Agreement), the United States hereby requests Members to extend and expand 
the scope of the existing waiver of U.S. obligati ons under paragraph 1 of Ar ticle I of the General 
Agreement on Tariffs and Trade 1994 (GATT 1994) to the extent necessary to permit the United 
States to provide duty-free treatment to eligible pro ducts originating in bene ficiary Central American 
and Caribbean countries and territories (“beneficiar y countries”) designated pursuant to the provisions 
of the Caribbean Basin Economic Recovery Ac t of 1983, as amended by the Caribbean Basin 
Economic Recovery Expansion Act of 1990 (CBERA).2  The United States requests Members to 
extend the waiver through 31 December 2014, and broaden it to waive U.S. obligations under 
paragraph 1 of Article I and para graphs 1 and 2 of Article XIII of GATT 1994 to the extent necessary 
to permit the United States to provide preferential ta riff treatment to eligible products originating in 
beneficiary countries designated pursuant to the pr ovisions of the CBERA, as amended by the United 
States-Caribbean Basin Trade Partnership Act,  the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006, and the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 200 8 (“HOPE II”) (“CBERA as amended”). 
 
1. D ESCRIPTION OF THE MEASURE  
 The United States-Caribbean Basin Trade Partnership Act (CBTPA), enacted as Title II of the 
Trade and Development Act of 2000 (Public Law 106-200), and amended by  section 3107 of the 
Trade Act of 2002 (Public Law 107-210), section 1558 of the Miscellaneous Trade and Technical 
Corrections Act of 2004 (Public Law 108-429), an d section 15408 of the Food, Conservation, and 
                                                      
1 The draft decision for this request is contained in G/C/W/611 and Corr.1. 
2 See Caribbean Basin Economic Recovery Act, Renewal of Waiver, Decision of 15 November 1995 
(WT/L/104). G/C/W/508/Rev.2 
Page 2  
 
  Energy Act of 2008, amends the CBERA
3 by providing for preferential tariff treatment for additional 
products that originate in a country the President  has designated as elig ible to receive CBTPA 
benefits.4  Further, the Haitian Hemispheric Opportuni ty through Partnership Encouragement Act of 
2006 (HOPE Act), as amended by the Haitian He mispheric Opportunity through Partnership 
Encouragement Act of 2008 (“HOPE II”) enacted as Title VI, Subtitle D, Part I of the Food, 
Conservation, and Energy Act of 2008 (P.L. 110- 246) (“HOPE Act as amended”), amends CBERA to 
make Haiti eligible for additional trade benefits.  Th e text of the CBERA as amended is attached at 
Annex I.     Specifically, section 213(b)(2) of the CBERA as amended (19 U.S.C. § 2703 (b)(2)) provides 
for duty-free treatment for apparel assembled in el igible beneficiary countries from:  (1) fabrics 
formed in the United States from U.S. yarns and cu t, dyed, and finished in the United States;  
(2) components knit-to-shape in the United States fro m U.S. yarns;  (3) fabrics formed in the United 
States from U.S. yarns and dyed and finished in the United States, but cut in the region, and sewn with 
U.S. thread;  and (4) a combination of fabrics form ed in the United States from U.S. yarns and dyed 
and finished in the United States, but cut in the region, and components knit-to-shape in the United 
States from U.S. yarns, and sewn with U.S. thread .  Subject to a quantitative limit, the CBERA as 
amended also provides for duty-free treatment for ce rtain knit apparel cut and assembled in eligible 
beneficiary countries from fabrics formed in the region or the United States from U.S. yarns, or 
apparel (other than socks) knit-to-shape in eligible  beneficiary countries from U.S. yarns.  There is a 
separate quantitative limit for t-shirts  (other than underwear) made in eligible beneficiary countries 
from fabric formed in the region from U.S. yarns.  In addition, the CBERA as amended provides for 
duty-free treatment for:  (1) certain brassieres;  (2) apparel made from fabrics or yarns from third party sources, if those inputs are determined to be in “short supply” in the United States;  (3) certain textile luggage;  and (4) hand-loomed, handm ade, or folklore textiles or apparel. 
 
 In addition, section 213(b)(3) of the CBERA  as amended (19 U.S.C. § 2703 (b)(3)) provides 
tariff treatment equivalent to that extended to Mexico under the North American Free Trade 
Agreement for certain non-te xtile and apparel products,
5 and duty-free treatment for four rubber 
                                                      
3 The original CBERA program is described in mo re detail in the Request for Renewal of Waiver 
(G/L/25) which was included in the previously submit ted information on the CBERA programme in document 
G/C/W/508/Add.1. 
4 In accordance with Section 212( b) of the CBERA as amended (19 U.S.C. § 2702 (b)), “Central 
America and the Caribbean” refers to the following countries or any successor political entities of these 
countries: Anguilla, Antigua and Barbuda, The Bahama s, Barbados, Belize, British Virgin Islands, Cayman 
Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Ni caragua, Panama, Saint Lucia, Saint Vincent and the 
Grenadines, Saint Kitts and Nevis, Turks and Ca icos Islands, and Trinidad and Tobago.   
The President has designated the following Central American and Caribbean countries as both CBERA 
and CBTPA beneficiary countries:  Antigua and Barb uda, Aruba, The Bahamas, Barbados, Belize, British 
Virgin Islands, Dominica, Grenada, Guyana, Haiti, Jama ica, Montserrat, Netherlands Antilles, Panama, Saint 
Kitts and Nevis, Saint Lucia, Saint Vincent and the Gr enadines, and Trinidad and Tobago.  Sections 212 and 
213(b)(5)(B) of the ame nded CBERA (19 U.S.C. §§ 2702, 2703 (b)(5 )(B)) describe the eligibility criteria 
countries must meet to be designated as a CBERA or CBTPA beneficiary country.   
To be eligible for the enhanced benefits of th e CBTPA, however, CBTPA be neficiary countries must 
implement and follow (or be making substantial progress toward implementing and following) certain customs 
procedures and requirements, as described in section 213(b)(4) of the CBERA as amended (19 U.S.C. § 2703 (b)(4)). The following CBTPA benefici ary countries are currently eligible for the enhanced benefits of the 
CBTPA:  Barbados, Belize, Guyana, Haiti, Jamaica, Panama, Saint Lucia, and Trinidad and Tobago. 
The most recent amendment in section 15408 of the Food, Conservation, and Energy Act of 2008 
(P.L. 110-246) extends the enhanced benefi ts of the CBTPA until 30 September 2010. 
5 These products are certain:  (1) footwear;  (2) canned tuna;  (3) petroleum products;  (4) watches and 
watch parts; and  (5) handbags, luggage, flat goods, work gloves and leather wearing apparel.  G/C/W/508/Rev.2 
 Page 3 
 
 
  class=Section2> footwear items.6  Section 213(a)(6) of the CBERA as amended (19 U.S.C. § 2703 
(a)(6)) also provides for duty-free treatment of certain beverages produced in Canada from rum 
produced in CBERA beneficiary countries.   The HOPE Act as amended (Section 213a of the CBERA) provides for apparel imports from 
Haiti to enter the United States duty-free if the “appli cable percentage” of the value of inputs and/or 
costs of processing is met from any combination of Haiti, United States, U.S. FTA or regional preference program partner countries.  The HOPE Act as amended also provides duty-free treatment 
for certain apparel articles if imported directly from Haiti or the Dominican Republic, provided that 
Haiti and the Dominican Republic develop procedur es to prevent transhipment.  The HOPE Act as 
amended also removes duties for three years on a specified quantity of woven apparel imports from 
Haiti made from fabric produced anywhere in the world.  Additionally, the Act allows duty-free 
treatment for any apparel article cl assifiable under heading 6212.10 of the HTS (certain brassieres), if 
the article is both cut and sewn or otherwise assembled  in Haiti or the U.S., or both without regard to 
the source of the fabric or components from which the article is made.  Finally, the HOPE Act as 
amended allows automotive wire harnesses imported from Haiti that contain at least 50 percent by 
value of materials produced in Haiti, the United St ates, or U.S.-FTA partner or regional preference 
program beneficiary countries to qualify for duty -free treatment.  The HOPE Act as amended also 
establishes an International Labor Organization m onitoring program, and requires the President to 
establish certain procedures to monitor Haiti’s and individual producers’ compliance with the 
eligibility criteria.   
 
 Under section 212(e) of the CBERA  as amended (19 U.S.C. § 2702 (e)), the President may, in 
certain circumstances, withdraw or suspend the designation of any country as a beneficiary country, 
and may also withdraw, suspend, or limit the applicat ion of preferential treatment  to any article of any 
beneficiary country.  The CBERA as amended does not  alter the benefits the United States provides 
under its Generalized System of Preferences (GSP) program to other developing countries. 
  Benefits provided under the original CBERA are permanent.  The benefits added by the 
CBTPA are available through 30 September 2010, or  until the Free Trade Area of the Americas 
(FTAA) or other free trade agreement between the United States and the beneficiary country enters 
into force, whichever occurs first.
7  Additionally, certain benefits authorized by the HOPE Act as 
amended are available to Haiti through 20 December 2011.   
 2. S
PECIFIC POLICY OBJECTIVES OF THE MEASURE  
 The CBERA as amended is intended to help  Caribbean Basin countries develop their 
economies and diversify their exports.  The CBER A as amended furthers these goals by creating 
opportunities to expand trade between the United Stat es and beneficiary countries, thus promoting 
economic opportunity and growth in the region.  The CBERA as amended is further intended to 
                                                      
6 With respect to footwear, note that section 1558 of the Miscellaneous Trade and Tariff Act of 2004 
amended section 213(b) of th e CBERA to reduce the number of footwear items that are ineligible to receive 
duty-free treatment. 
7 Under section 201(a)(3)(B) of the Dominican Re public-Central America-Un ited States Free Trade 
Implementation Act, three exceptions apply to withdr awal of CBERA/CBTPA beneficiary status; the United 
States will continue to treat CAFTA-DR  countries as beneficiary countries:   (1) to preclude the International 
Trade Commission from cumulating CBERA imports in antidumping and countervailing duty investigations according to section 771(7)(G )(ii)(III) of the Tariff Act of 1930 (1 9 U.S.C. 1677(7)(G)( ii)(III));  (2) to 
implement duty free treatment for certain ethyl alcohol provided under paragraph 12 of Appendix I of the 
General Notes to the Schedule of the United States to Annex 3.3 of the Agreement; and (3) for purposes of taxpayer deductions for business trips to CBERA countries.  Additionally, current CBERA and CBTPA 
beneficiary countries will be able to continue to count inputs from the former beneficiaries toward qualifying for 
benefits under CBERA and CBTPA. G/C/W/508/Rev.2 
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  provide more stability, strengthen security, decr ease illegal immigration, and improve regional 
cooperation in efforts to fight drug trafficking.  The CBERA as amended is also designed to help 
stabilize the region’s economies in the wake of devastating hurricanes in 1998, 2004 and 2008.   3. C
IRCUMSTANCES JUSTIFYING THE WAIVER  
 The United States is committed to working in partnership with our close neighbours in the 
Caribbean Basin to improve livelihoods and e xpand economic opportunities through greater economic 
integration.  In this effort, the Caribbean Basi n countries have undertaken to strengthen their policy 
orientation to promote economic gr owth and to diversify exports.  The CBERA as amended provides 
a vital U.S. contribution to the efforts in this part nership to achieve greater economic integration.   
 
 The United States is concerned that conditions of poverty and instability remain high in our 
neighbours in the Caribbean Basin, particularly in Haiti.  Economic prospects for these small 
countries are further complicated by susceptibility to natural disasters, such as the major hurricanes 
that have affected the Caribbean Basin in recen t years.  In response, the recent extension and 
expansion of benefits under the CBERA as amende d by CBTPA and the HOPE and HOPE II Acts is 
intended to further expand economic opportunities and contribute towards a more stable and 
prosperous region.   We note that our neighbour, Haiti, is the most impoverished country in the Western 
Hemisphere and one of the most susceptible to ec onomic and political instability.  The United States 
is working with Haiti on quick impact projects a nd has also developed regional programs in the 
Caribbean Basin to spur economic development and investment.  An important element of the overall 
strategy is job creation and a long-term view to strengthen the capacity of Haiti’s government 
institutions; as well as the institutions of the smaller economies in the region.    
 The United States is committed to a strategy that will reinforce economic growth, security, 
good governance, and leadership in creating a climat e where investors will be willing to take risks and 
bring jobs to Haiti and the Caribbean Basin region.  In this light, the issuance  of a waiver to allow 
Haiti and the region extended benefits under CBERA as amended is a critical step in enhancing 
prospects for a stable future.    
4. C
ONCLUSION  
 Pursuant to Article IX:3 of the WTO Agre ement, the United States requests Members to 
extend and expand the scope of the existing waiver of  U.S. obligations under pa ragraph 1 of Article I, 
to the extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary countries designated pursu ant to the provisions of the CBERA.  The United 
States requests Members to extend the waiver thr ough 31 December 2014, and broaden it to waive 
U.S. obligations under paragraph 1 of Article 1 a nd paragraphs 1 and 2 of Article XIII of GATT 1994, 
to the extent necessary to permit the United States to provide preferential tariff treatment to eligible 
products originating in beneficiary countries designated pursuant to the provisions of the CBERA as amended.  A draft waiver decision is attached for consideration.  
 The United States requests the Council for Trade in Goods to give this application for a 
waiver expeditious and favourable consideration.  In the meantime, the Unit ed States will promptly 
enter into consultations, on request, with any inte rested Member with respect to any difficulty or 
matter that may arise as a result of the preferentia l treatment provided under the CBERA as amended.  G/C/W/508/Rev.2 
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  ANNEX I.a 
 
CARIBBEAN BASIN ECONOMIC RECOVERY ACT 
 
19 USC CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY 
 
    TITLE 19 - CUSTOMS DUTIES     CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY 
 
Sec. 
2701. Authority to grant duty-free treatment. 
2702. Beneficiary country.        (a) Definitions; termination of designation.          (b) Countries eligible for designation as beneficiary countries; conditions.               (c) Factors determining designation. 
        (d) Omitted. 
           (e) Withdrawal or suspen sion of duty-free treatment to specific articles. 
           (f) Reporting requirements. 2703. Eligible articles.          (a) Growth, product, or manufacture of beneficiary countries.            (b) Import-sensitive articles. 
         (c) Sugar and beef products; st able food production plan; suspension of duty-free 
treatment; monitoring.          (d) Tariff-rate quotas.          (e) Proclamations suspending duty-free treatment.                   (f) Petitions to International Trade Commission. 
            (g) Fees not affected by proclamation. 
              (h) Duty redu ction for certain leather-related products. 
2704. International Trade Commission reports on im pact of Caribbean Basin Economic Recovery 
Program.            (a) Reporting requirements.         (b) Requisite areas of Commission assessment. 
      (c) Time of submission of reports; public participation. 
2705. Impact study by Secretary of Labor. 2706. Effective date. 2707. Center for the Study of Western Hemispheric Trade.             (a) Establishment. 
           (b) Scope of Center. 
         (c) Consultation; selection criteria.            (d) Programs and activities.            (e) Definitions.            (f) Fees for seminars and publications.             (g) Duration of grant. 
            (h) Report. 
  Sec. 2701. 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. 2702. Beneficiary country       (a) Definitions; termination of designation        (1) For purposes of this chapter - G/C/W/508/Rev.2 
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           (A) The term ''beneficiary country '' means any country listed in subsection (b) 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.  Before the President designates any 
country as a beneficiary country for purposes of this chapter, he shall notify the House of Representatives and the Senate of his intention to  make such designation, together with the 
considerations entering into such decision. 
         (B) The term ''entered'' means entere d, or withdrawn from warehouse for consumption, in 
the customs territory of the United States.          (C) The term ''HTS'' means Ha rmonized Tariff Schedule of the United States. 
         (D) The term ''NAFTA'' means the North American Free Trade Agreement entered into 
between the United States, Mexico, and Canada on December 17, 1992. 
         (E) The terms ''WTO'' and ''WTO memb er'' have the meanings given those terms in section 
3501 of this title.        (2) If the President has designated any country as a beneficiary country for purposes of this 
chapter, he shall not terminate such designation (e ither by issuing a proclamation for that purpose or 
by issuing a proclamation which has the effect of terminating such designation) unless, at least sixty 
days before such termination, he has notified th e House of Representatives and the Senate and has 
notified such country of his intention to terminate such designation, together with the considerations 
entering into such decision.      (b) Countries eligible for designation as beneficiary countries; conditions        In designating countries as ''beneficiar y countries'' under this chapter the President shall 
consider only the following countries a nd territories or successor political entities: 
      Anguilla                     Jamaica       Antigua and Barbuda         Nicaragua       Bahamas, The                Panama       Barbados                     Saint Lucia 
      Belize                       Saint Vincent and the 
      Costa Rica                   Grenadines       Dominica                     Suriname       Dominican Republic          Trinidad and Tobago       El Salvador                  Cayman Islands       Grenada                      Montserrat 
      Guatemala                   Netherlands Antilles 
      Guyana                       Saint Christopher-Nevis       Haiti                        Turks and Caicos Islands       Honduras                     Virgin Islands, British      In addition, the President shall not desi gnate 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 corporat ion, partnership, or asso ciation which is 50 per 
centum 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 per centum 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 -  G/C/W/508/Rev.2 
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               (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 per centum or more beneficially owned by Unit ed States citizens, which have been made by 
arbitrators appointed for each case or by permanent arbitral bodies 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, which has, or is lik ely to have, a significant adverse effect on United 
States commerce, unless the President has recei ved assurances satisfactory to him that such 
preferential treatment will be eliminated or that action will be taken to assure that there will be no 
such significant adverse effect, and he 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;          (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 Act if th e 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.      (c) Factors determining designation 
       In determining whether to designate a ny country a beneficiary country under this chapter, 
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 promote 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; G/C/W/508/Rev.2 
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           (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; and          (11) the extent to which such country is prepared to cooperate with the United States in the 
administration of the provisions of this chapter. 
     (d) Omitted 
     (e) Withdrawal or suspension of duty-free treatment to specific articles        (1)(A) The President may, after the requ irements of subsection (a)(2) of this section and 
paragraph (2) have been met -          (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 country would be ba rred from designation as a beneficiary country under 
subsection (b) of this section.        (B) The President may, after the requirements of subsection (a)(2) of this section and 
paragraph (2) have been met - 
         (i) withdraw or suspend the designation of any country as a CBTPA beneficiary country; or           (ii) withdraw, suspend, or limit the application of preferential treatment under section 
2703(b)(2) and (3) of this title to any article of an y country, 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 2703(b)(5)(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 least  30 days prior to 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.        (3) If preferential treatment under secti on 2703(b)(2) and (3) of this title is withdrawn, 
suspended, or limited with respect to a CBTPA benefi ciary country, such country shall not be deemed 
to be a ''party'' for the purposes of applying section 2703( b)(5)(C) of this title to imports of articles for 
which preferential treatment has been withdrawn, su spended, or limited with respect to such country. 
     (f) Reporting requirements        (1) In general          Not later than December 31, 2001, and every 2 years thereafter during the period this 
chapter is in effect, the United States Trad e Representative shall submit to Congress a report 
regarding the operation of this chapter, including -            (A) with respect to subsections (b) an d (c) 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 CBTPA beneficiary country, as the 
case may be, under the criteria set forth in section 2703(b)(5)(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 2703(b)(5)(B) of this title. 
 
Sec. 2703. Eligible articles 
      (a) Growth, product, or manufacture of beneficiary countries        (1) Unless otherwise excluded from eligibilit y by this chapter, and subject to section 423 of 
the Tax Reform Act of 1986, and except as provided in  subsection (b)(2) and (3) of this section, the  G/C/W/508/Rev.2 
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  duty-free treatment provided under this chapter shall a pply 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 
two or more beneficiary countries, plus (ii) the direct costs of processing operations performed in a 
beneficiary country or countries is not less than 35 pe r centum of the appraised value of such article at 
the time it is entered. For purposes of determining th e percentage referred to in subparagraph (B), the 
term ''beneficiary country'' includes the Commonwealth  of Puerto Rico and the United States Virgin 
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 w ith respect to an article to which this paragraph 
applies, an amount not to exceed 15 per centum of th e appraised value of the article at the time it is 
entered that is attributed to such United States co st or value may be applie d toward determining the 
percentage referred to in subparagraph (B).        (2) The Secretary of the Treasury sha ll prescribe such regulations as may be necessary to 
carry out this subsection including, but not limited  to, regulations providing that, in order to be 
eligible for duty-free treatment under this chapter, an  article 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 growth, 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 expenses 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 insu rance, advertising, and salesmen's salaries, 
commissions or expenses.        (4) Notwithstanding section 1311 of this title, the products of a beneficiary country which 
are imported directly from any beneficiary country  into Puerto Rico may be entered under bond for 
processing or use in manufacturing in Puerto Rico. No duty shall be imposed on the withdrawal from 
warehouse of the product of such processing or manufact uring if, at the time of such withdrawal, such 
product meets the requirements of paragraph (1)(B).        (5) The duty-free treatment provided under this chapter shall apply to an article (other than 
an article listed in subsection (b) of this section)  which is the growth, product, or manufacture of the 
Commonwealth of Puerto Rico if - 
         (A) the article is imported directly from the beneficiary country into the customs territory 
of the United States,          (B) the article was by any means advanced in value or im proved in condition in a 
beneficiary country, and          (C) if any materials are added to the article in a beneficiary country, such materials are a 
product of a beneficiary country or the United States. 
       (6) Notwithstanding paragraph (1), the duty-free treatment provided under this chapter 
shall apply to liqueurs and spirituous beverages pr oduced in the territory of Canada from rum if - 
         (A) such rum is the growth, product, or manufacture of a beneficiary country or of the Virgin Islands of the United States; G/C/W/508/Rev.2 
Page 10  
 
           (B) such rum is imported directly fro m a beneficiary country or the Virgin Islands of the 
United States into the territory of Canada, and such liqueurs and spirituous beverages are imported 
directly from the territory of Canada into the customs territory of the United States; 
         (C) when imported into the custom s territory of the United States, such liqueurs and 
spirituous beverages are classified in subh eading 2208.90 or 2208. 40 of the HTS; and 
        (D) such rum accounts for at least 90 pe rcent by volume of the alcoholic content of such 
liqueurs and spirituous beverages.      (b) Import-sensitive articles        (1) In general          Subject to paragraphs (2) through (5 ), the duty-free treatment provided under this chapter 
does not apply to - 
           (A) textile 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) footwear not designated at the tim e of the effective date of this chapter (Aug. 5, 1983) 
as eligible articles for the purpose of the generalized  system of preferences under title V of the Trade 
Act of 1974 (19 U.S.C. 2461 et seq.); 
           (C) tuna, prepared or pr eserved in any manner, in airtight containers; 
           (D) petroleum, or any product de rived from petroleum, provided for in headings 2709 and 
2710 of the HTS;            (E) watches and watch parts (including cases, bracelets, and straps), of whatever type including, but not limited to, mechanical, quartz 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; or            (F) articles to which reduced rates of duty apply under subsection (h) of this section.        (2) Transition period treatment of certain textile and apparel articles          (A) Articles covered 
           During the transition period, the pr eferential treatment described in subparagraph (B) shall 
apply to the following articles:            (i) Apparel articles assemb led in one or more CBTPA beneficiary countries 
             Apparel articles sewn or otherwi se assembled in one or more CBTPA beneficiary countries 
from fabrics wholly formed and cut, or from comp onents knit-to-shape, in the United States from 
yarns wholly formed in the United States, (including fabrics not formed from yarns, if such fabrics are 
classifiable under heading 5602 or 5603 of the HTS and are wholly formed and cut in the United 
States) that are -                (I) entered unde r subheading 9802.00.80 of the HTS; or 
               (II) entered under chapter 61 or 62 of the HTS, if, after such assembly, the articles would have qualified for entry under subheading 9802.00.80 of  the HTS but for the fact that the articles were 
embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-
baking, bleaching, garment-dyeing, screen printing,  or other similar processes.  Apparel articles 
entered on or after September 1,  2002, shall qualify under the preceding sentence only if all dyeing, 
printing, and finishing of the fabrics from which the articles are assembled, if the fabrics are knit 
fabrics, is carried out in the United States. Appa rel articles entered on or after September 1, 2002, 
shall qualify under the first sentence of this clause on ly if all dyeing, printing, 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) Other apparel articles a ssembled in one or more CBTPA beneficiary countries 
             Apparel articles sewn or otherwi se assembled in one or more CBTPA beneficiary countries 
with thread formed in the United States from fabr ics wholly formed in the United States and cut in 
one or more CBTPA beneficiary countries from yarns wholly formed in the United States, or from 
components knit-to-shape in the United States from yarn s wholly formed in the United States, or both 
(including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTS and are wholly formed in the Unite d States). Apparel articles entered on or after 
September 1, 2002, shall qualify under the preceding sentence only if all dyeing, printing, and  G/C/W/508/Rev.2 
 Page 11 
 
 
  finishing of the fabrics from which the articles are asse mbled, if the fabrics are knit fabrics, is carried 
out in the United States. Apparel articles entere d on or after September 1, 2002, shall qualify under 
the first sentence of this clause only if all dyeing, printing, and finishing of the fabrics from which the 
articles are assembled, if the fabrics are woven fabrics, is carried out in the United States. Apparel articles shall qualify under the preceding sentence only if all dyeing, printing, and finishing of the 
fabrics from which the articles are assembled, if th e fabrics are knit fabrics, is carried out in the 
United States.            (iii) Certain knit apparel articles              (I) Apparel articles knit to shape (other than socks provided for in heading 6115 of the 
HTS) in a CBTPA beneficiary country from yarns wholly formed in the United States, and knit 
apparel articles (other than t-shirts described in  subclause (III)) cut and wholly assembled in one or 
more CBTPA beneficiary countries from fabric formed  in one or more CBTPA beneficiary countries 
or the United States from yarns wholly formed in th e United States (including fabrics not formed from 
yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTS and are formed in one or more CBTPA beneficiary countries), in an amount not exceeding the amount set forth in subclause 
(II). 
             (II) The amount referred to in subclause (I) is as follows:                (aa) 500,000,000 square mete r equivalents during the 1-y ear period beginning on October 
1, 2002.                (bb) 850,000,000 square mete r equivalents during the 1-year period beginning on October 
1, 2003. 
               (cc) 970,000,000 square mete r equivalents in each succeeding 1-year period through 
September 30, 2008.              (III) T-shirts, other than underwear, classifiable under subheadings 6109.10.00 and 
6109.90.10 of the HTS, made in one or more CBTPA  beneficiary countries from fabric formed in one 
or more CBTPA beneficiary countries from yarns wholly formed in the United States, in an amount 
not exceeding the amount set forth in subclause (IV). 
             (IV) The amount referred to in subclause (III) is as follows:                (aa) 4,872,000 dozen during the 1-year period beginning on October 1, 2001.                (bb) 9,000,000 dozen during the 1-year period beginning on October 1, 2002.                (cc) 10,000,000 dozen during the 1-year period beginning on October 1, 2003.                (dd) 12,000,000 dozen in each succeeding 1-year period through September 30, 2008. 
             (V) It is the sense of the Congr ess that the Congress should determine, based on the record 
of expansion of exports from the United States as a result of the preferential treatment of articles 
under this clause, the percentage by which the am ount provided in subclauses (II) and (IV) should be 
compounded for the 1-year periods occurring after th e 1-year period ending on September 30, 2004. 
           (iv) Certain other apparel articles 
             (I) General rule 
               Subject to subclause (II), any apparel article classifiable under subheading 6212.10 of the 
HTS, except for articles entered under clause (i), (ii), (iii), (v), or              (vi), if the article is both cut and sewn or otherwise assembled in the United States, or one 
or more CBTPA beneficiary countries, or both.              (II) Limitation 
               During the 1-year period beginning on October 1, 2001, and during each of the 6 
succeeding 1-year periods, apparel articles describe d in subclause (I) of a producer or an entity 
controlling production shall be eligible for prefer ential treatment under subparagraph (B) 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 entity that are entered and eligible under 
this clause during the preceding 1-year period is at least 75 percent of the aggregate declared customs 
value of the fabric (exclusive of  all findings and trimmings) containe d in all such articles of that 
producer or entity that are entered and eligible un der this clause during the preceding 1-year period. 
             (III) Development of procedure to ensure compliance                The United States Customs Serv ice shall develop and implem ent methods and procedures G/C/W/508/Rev.2 
Page 12  
 
  to ensure ongoing compliance with the requirement set forth in subclause 
             (II). If the Customs Service finds that a producer or an entity controlling production 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 fo r preferential treatment under subparagraph 
            (B) during any succeeding 1-year period until the aggregate cost of fabrics (exclusive of all 
findings and trimmings) formed in the United States that  are used in the production of such articles of 
that producer or entity entered during the precedi ng 1-year period is at least 85 percent of the 
aggregate declared customs value of the fabric (exc lusive of all findings a nd trimmings) contained in 
all such articles of that producer or entity that are entered and elig ible under this clause during the 
preceding 1-year period. 
           (v) Apparel articles assembled from fabrics or yarn not widely available in commercial 
quantities              (I) Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in 
one or more CBTPA beneficiary countries, from fabrics or  yarn that is not formed in the United States 
or in one or more CBTPA beneficiary countries, to the extent that apparel articles of such fabrics or 
yarn would be eligible for preferential treatment, w ithout regard to the source of the fabrics or yarn, 
under Annex 401 of the NAFTA.              (II) At the request of any interested party, the President is authorized to proclaim additional 
fabrics and yarn as eligible for prefer ential treatment under subclause (I) if - 
               (aa) the President determines th at such fabrics or yarn cannot be supplied by the domestic 
industry in commercial quantities in a timely manner; 
               (bb) the President has obtai ned 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;                (cc) 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 a nd the reasons for such actions, and the advice 
obtained under division (bb);                (dd) a period of 60 calendar days, beginning with the first day on which the President has met the requirements of division (cc), has expired; and                (ee) the President has consu lted with such committees regarding the proposed action during 
the period referred to in division (cc). 
           (vi) Handloomed, handmade, and folklore articles 
 A handloomed, handmade, or folklore article  of a CBTPA beneficiary country identified 
under subparagraph (C) that is certified as such by the competent authority of such beneficiary country.            (vii) Special rules 
             (I) Exception for findings and trimmings 
               (aa) An article otherwise elig ible for preferential treatment under this paragraph shall not 
be ineligible for such treatment because the article contains findings or trimmings of foreign origin, if 
such findings and trimmings do not exceed 25 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.  Elastic strips are considered findi ngs or trimmings only if they are each less than 1 
inch in width and are used in the production of brassieres.                (bb) In the case of an article d escribed in clause (ii) of this subparagraph, sewing thread 
shall not be treated as findings or trimmings under this subclause.              (II) Certain interlining 
               (aa) An article otherwise 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  G/C/W/508/Rev.2 
 Page 13 
 
 
  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 otherwise be ineligible for preferential treatment under this paragraph 
because the article contains fibers or yarns not who lly formed in the United States or in one or more 
CBTPA beneficiary countries shall not be ineligible fo r such treatment if the total weight of all such 
fibers or yarns is not more than 7 percent of th e total weight of the good.  Notwithstanding the 
preceding sentence, an apparel article containing elast omeric yarns shall be eligible for preferential 
treatment under this paragraph only if such ya rns are wholly formed in the United States. 
             (IV) Special origin rule                An article otherwise eligible for preferential treatment under clause (i) or (ii) of this 
subparagraph shall not be ineligible for such treat ment because the article contains nylon filament 
yarn (other than elastomeric ya rn) that is classifiable under su bheading 5402.10.30, 5402.10.60, 
5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the HTS duty-free from a country that is a party to an agreement with the United States establishing 
a free trade area, which entered into force before January 1, 1995.              (V) Thread                An article otherwise eligible for preferential treatment under this paragraph shall not be 
ineligible for such treatment becau se the thread used to assemble the article is dyed, printed, or 
finished in one or more CBTPA beneficiary countries.            (viii) Textile luggage              Textile luggage -                (I) assembled in a CBTPA benefi ciary 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  a CBTPA beneficiary country from fabric wholly formed 
in the United States from yarns who lly formed in the United States. 
           (ix) Apparel articles assembled in one or more CBTPA beneficiary countries from United States and CBTPA beneficiary country components 
             Apparel articles sewn or otherwi se assembled in one or more CBTPA beneficiary countries 
with thread formed in the United States from components cut in the United States and in one or more 
CBTPA beneficiary countries from fabric wholly formed in the United States from yarns wholly formed in the United States, or from components kni t-to-shape in the United States and one or more 
CBTPA beneficiary countries from yarns wholly formed in the United States, or both (including 
fabrics not  formed from yarns, if such fabri cs are classifiable under heading 5602 or 5603 of the 
HTS). Apparel articles shall qualify under this clause only if they meet the requirements of clause (i) 
or (ii) (as the case may be) with respect to dyeing , printing, and finishing of knit and woven fabrics 
from which the articles are assembled.          (B) Preferential treatment            Except as provided in subparagraph (E), during the transition period, the articles to which 
this subparagraph applies shall  enter the Unite d States free of duty and free of any quantitative 
restrictions, limitations, or consultation levels. 
         (C) Handloomed, handmade, and folklore articles            For purposes of subparagraph (A)(vi) , the President shall consult with representatives of 
the CBTPA 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 transshipments            (i) Penalties for exporters              If the President determines, based  on sufficient evidence, that an exporter has engaged in G/C/W/508/Rev.2 
Page 14  
 
  transshipment with respect to textile or apparel articles from a CBTPA 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 CBTPA  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 textile and apparel artic les 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 (B) has been claimed for a textile or apparel article on the basis of 
material false information concerning the country of  origin, manufacture, 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 woul d have meant that the article is or was ineligible 
for preferential treatment under subparagraph (B).          (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 an y apparel article imported from a CBTPA beneficiary country if the 
application of tariff treatment under subparagraph (B) 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 
             or purposes of applying bi lateral emergency action un der 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 period'' in  section 4 of the Annex shall have the meaning given that 
term in paragraph (5)(D) of this subsection; 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 CBTPA beneficiary country in question and 
the country does not agree to consult within  the time period specified under section 4. 
       (3) Transition period treatment of certain  other articles originating in beneficiary countries 
         (A) Equivalent tariff treatment            (i) In general 
             Subject to clause (ii), the tari ff treatment accorded at any time during the transition period 
to any article referred to in any of subparagraphs (B) through (F) of paragraph (1) that is a CBTPA 
originating good shall be identical to the tariff tr eatment that is accorded at such time under Annex 
302.2 of the NAFTA to an article described in the same 8-digit subheading of the HTS that is a good 
of Mexico and is imported into the United States.            (ii) Exception 
             Clause (i) does not apply to any article accorded duty-free treatment under U.S. Note 2(b) 
to subchapter II of chapter 98 of the HTS.          (B) Relationship to subsection (h) duty reductions            If at any time during the transition pe riod the rate of duty that would (but for action taken 
under subparagraph (A)(i) in regard to such period) apply with respect to any article under subsection 
(h) of this section is a rate of duty that is lower than the rate of duty resulting from such action, then 
such lower rate of duty shall be applied for the purposes of implementing such action. 
       (4) Customs procedures          (A) In general            (i) Regulations  G/C/W/508/Rev.2 
 Page 15 
 
 
               Any importer that claims prefer ential treatment under paragraph (2) or (3) shall comply 
with customs procedures similar in all material r espects to the requirements of Article 502(1) of the 
NAFTA as implemented pursuant to United States la w, in accordance with regulations promulgated 
by the Secretary of the Treasury.            (ii) Determination 
             (I) In general 
               In order to qualify for the preferential treatment under paragraph (2) or (3) 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 substantia l 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 this subclause if it is a CBTPA beneficiary country - 
                 (aa) from which the article is exported; or 
             (bb) in which materials used in th e 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 (2) or (3).          (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 (2) or (3) if 
such Certificate of Origin would not be require d under Article 503 of the NAFTA (as implemented 
pursuant to United States law), if the article were imported from Mexico.          (C) Report by USTR on cooperati on of other countries concerning circumvention 
           The United States Commissioner of Customs shall conduct a study analyzing the extent to 
which each CBTPA beneficiary country - 
             (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 measure s, consistent with its dom estic laws and procedures, 
against exporters and importers involved in instan ces of false declaration concerning fiber content, 
quantities, description, classification, or or igin 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 circumvention from taking place in that third country.  The Trade 
Representative shall submit to Congress, not late r than October 1, 2001, a report on the study 
conducted under this  subparagraph. 
       (5) Definitions and special rules          For purposes of this subsection - 
         (A) Annex 
           The term ''the Annex'' means Annex 300-B of the NAFTA.          (B) CBTPA beneficiary country            The term ''CBTPA beneficiary coun try'' means any ''beneficiary country'', as defined in 
section 2702(a)(1)(A) of this title, which the Preside nt designates as a CBTPA beneficiary country, 
taking into account the criteria contained in subsect ions (b) and (c) of section 2702 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 G/C/W/508/Rev.2 
Page 16  
 
                 (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 c ountry has met the counter-narcotics 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.          (C) CBTPA originating good 
           (i) In general 
             The term ''CBTPA originating good '' means a good that meets the rules of origin for a good 
set forth in chapter 4 of the NAFTA as implemented pursuant to United States law.            (ii) Application of chapter 4              In applying chapter 4 of the NAFTA with respect to a CBTPA beneficiary country for 
purposes of this subsection - 
               (I) no country other than th e United States and a CBTPA beneficiary country may be 
treated as being a party to the NAFTA;                (II) any reference to trade between  the United States and Mexico shall be deemed to refer 
to trade between the United States and a CBTPA beneficiary country;                (III) any reference to a party sha ll be deemed to refer to a CBTPA beneficiary country or 
the United States; and  
               (IV) any reference to parties shall be deemed to refer to any combination of CBTPA 
beneficiary countries or to the United States and one  or more CBTPA beneficiary countries (or any 
combination thereof).          (D) Transition period            The term ''transition period'' mean s, with respect to a CBTPA beneficiary country, the 
period that begins on October 1, 2000, and ends on the earlier of - 
             (i) September 30, 2008; or              (ii) the date on which the FTAA or another free trade agreement that makes substantial 
progress in achieving the negotiating objectives set fort h in 3317(b)(5) of this title enters into force 
with respect to the United States and the CBTPA beneficiary country. 
         (E) CBTPA 
           The term ''CBTPA'' means the United States-Caribbean Basin Trade Partnership Act. 
         (F) FTAA            The term ''FTAA'' means the Free Trade Area of the Americas.      (c) Sugar and beef products; stable  food production plan; suspension of duty-free  G/C/W/508/Rev.2 
 Page 17 
 
 
  treatment; monitoring 
 (1) As used in this subsection -         (A) The term ''sugar and beef products'' means -            (i) sugars, sirups, and mol asses provided for in subheadi ngs 1701.11.00,  1701.12.00, 
1701.91.20, 1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized Tariff Schedule 
of the United States, and 
           (ii) articles of beef or veal, howev er provided for in chapters 2 and 16 of the Harmonized 
Tariff Schedule of the United States.          (B) The term ''Plan'' means a stable  food production plan that consists of measures and 
proposals designed to ensure that the present level of food production in, and the nutritional level of 
the population of, a beneficiary country will not be ad versely affected by changes in land use and land 
ownership that will result if incr eased production of sugar and beef products is undertak en in response 
to the duty-free treatment extended under this chapte r to such products.  A Plan must specify such 
facts regarding, and such proposed actions by, a beneficiary country as the President deems necessary 
for purposes of carrying out this subsection, including but not limited to - 
           (i) the current levels of food  production and nutritional health of the population; 
           (ii) current level of pro duction and export of sugar and beef products; 
           (iii) expected increases in productio n and export of sugar and beef products as a result of 
the duty-free access to the United States market provided under this chapter; 
           (iv) measures to be taken to ensure  that the expanded production of those products because 
of such duty-free access will not occur at th e expense of stable food production; and 
           (v) proposals for a system to mon itor the impact of such duty-free access on stable food 
production and land use and land ownership patterns.        (2) Duty-free treatment extended under this  chapter to sugar and beef products that are the 
product of a beneficiary country shall be suspende d by the President under this subsection if –  
 (A) the beneficiary country, within the ninety-day period beginning on the date of its 
designation as such a country under section 2702 of this title, does not submit a Plan to the President 
for evaluation;          (B) on the basis of his evaluation, the President determines that the Plan of a beneficiary country does not meet the criteria set forth in paragraph (1)(B); or          (C) as a result of the monitoring of the operation of the Plan under paragraph (5), the President determines that a beneficiary country is  not making a good faith effort to implement its 
Plan, or that the measures and proposals in the Pl an, although being implemented, are not achieving 
their purposes.         (3) Before the President suspends duty -free treatment by reason of paragraph (2)(A), (B), 
or (C) to the sugar and beef products of a benefici ary country, he must offer to enter into consultation 
with the beneficiary country for purposes of formul ating appropriate remedi al action which may be 
taken by that country to avoid such suspension.  If the beneficiary country thereafter enters into 
consultation within a reasonable time and undertakes to formulate remedial action in good faith, the 
President shall withhold the suspension of duty-fre e treatment on the condition that the remedial 
action agreed upon be appropriately  implemented by that country. 
       (4) The President shall monitor on a biennial basis the operation of the Plans implemented by beneficiary countries, and shall submit a written report to Congress by March 15 following the 
close of each biennium, that - 
         (A) specifies the extent to which each  Plan, and remedial actions, if any, agreed upon under 
paragraph (4), have b een implemented; and 
         (B) evaluates the results of such implementation.        (5) The President shall terminate any suspension of duty-free treatment imposed under this 
subsection if he determines that the beneficiary country has taken appropriate action to remedy the 
factors on which the suspension was based.      (d) 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. G/C/W/508/Rev.2 
Page 18  
 
       (e) Proclamations suspending 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 provided under chapter 1 of title II of the Trad e Act of 1974 (19 U.S.C. 2251 et seq.) or section 
1862 of this title.  
       (2) In any report by the Internati onal 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 President pur suant to this chapter, the Commission shall state 
whether and to what extent its findings and r ecommendations apply to such article when imported 
from beneficiary countries. 
       (3) For purposes of subsections secti on 203 of the Trade Act of 1974 (19 U.S.C. 2253(a), 
(c)), the suspension of the duty-free treatment provide d by this chapter shall be treated as an increase 
in duty.        (4) No proclamation which provides 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 pursuant to sect ion 2701 of this title is proclaimed 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 pursuant to section 2701 of this title, the President ma y reduce or terminate the application of such 
action to the importation of such article from benefi ciary countries prior to the otherwise scheduled 
date on which such reduction or termination would occur pursuant to the criteria and procedures of 
section 203 of the Trade Act of 1974 (19 U.S.C. 2253).      (f) Petitions to International Trade Commission        (1) If a petition is filed with the Inte rnational 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 beneficiary countries, then the petition may also be filed with the Secretary 
of Agriculture with a request that emergency relie f be granted pursuant to paragraph (3) of this 
subsection with respect to such article.         (2) Within fourteen 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 seven days after the Presi dent 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 
determination not to ta ke emergency action. 
       (4) The emergency action provided by pa ragraph (3) of this subsection 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 th e President not to take ac tion under section 203 of such 
Act (19 U.S.C. 2253) not to take action becomes final,          (C) in the event of a report of the United States International Trade Commission containing 
a negative finding, on the day the Commission's report is submitted to the President, or  G/C/W/508/Rev.2 
 Page 19 
 
 
           (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 subheading 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; and 
         (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. 
     (g) Fees not affected by proclamation        No proclamation issued pursuant to th is chapter shall affect fees imposed pursuant to 
section 624 of title 7.      (h) Duty reduction fo r certain leather-related products 
       (1) Subject to paragraph (2), the Preside nt shall proclaim reductions in the rates of duty on 
handbags, luggage, flat goods, work glov es, and leather wearing apparel that - 
         (A) are the product of any beneficiary country; and          (B) were not designated on August 5, 1983, as eligible articles for purposes of the 
generalized system of preferences under title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.). 
       (2) The reduction required under paragraph (1) in the rate of duty on any article shall - 
         (A) result in a rate that is equal to 80 percent of the rate of duty that applies to the article on 
December 31, 1991, except that, subj ect to the limitations in para graph (3), the reduction may not 
exceed 2.5 percent ad valorem; and          (B) be implemented in 5 equal a nnual stages with the first one-fifth of the aggregate 
reduction in the rate of duty being applied to entri es, or withdrawals from warehouse for consumption, 
of the article on or after January 1, 1992. 
       (3) The reduction required under this sub section with respect to the rate of duty on any 
article is in addition to any reductio n in the rate of duty on that article  that may be proclaimed by the 
President as being required or appropriate to carry  out any trade agreement entered into under the 
Uruguay Round of trade negotiations; except that if the reduction so proclaimed -          (A) is less than 1.5 percent ad valore m, the aggregate of such proclaimed reduction and the 
reduction under this subsection may not exceed 3.5 percent ad valorem, or 
         (B) is 1.5 percent ad valorem or gr eater, the aggregate of su ch proclaimed reduction and 
the reduction under this subsection may not exceed the proclaimed reduction plus 1 percent ad 
valorem.  
Sec. 2704. International Trade Commission repor ts on impact of Caribbean Basin Economic 
Recovery Program        (a) Reporting requirement        (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 indus tries and consumers and on the economy of the 
beneficiary countries.        (2) First report          The first report shall be submitted not later than September 30, 2001. 
       (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) Requisite areas of Commission assessment        (1) Each report required under subsecti on (a) of this section shall include, but not be G/C/W/508/Rev.2 
Page 20  
 
  limited to, an assessment by the Commission regarding - 
         (A) the actual effect, during the peri od covered by the report, of this Act 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; and 
         (B) the probable future effect which this Act will have on the United States economy 
generally, as well as on such domestic industries, be fore the provisions of this Act terminate. 
       (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 Act, 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 Act.      (c) Time of submission of reports; public participation 
       (1) Each report required under subsecti on (a) of this section shall be submitted to the 
Congress and to the President before the close of the nine-month period beginning on the day after the 
last day of the period covered by the report. 
       (2) The Commission shall provide opport unity 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. 2705. Impact study by Secretary of Labor  
       The Secretary of Labor, in consulatio n with other appropriate Federal agencies, shall 
undertake a continuing review and analysis of the impact which the implementation of the provisions 
of this chapter have with respect to United Stat es labor; and shall make an annual written report to 
Congress on the results of such review and analysis.         Sec. 2706. Effective date 
 
       (a) This chapter shall take effect on August 5, 1983.        (b) Repealed. Pub. L. 101-382, title II, Sec. 211, Aug. 20, 1990, 104 Stat. 655.  Sec. 2707. Center for the Study of Western Hemispheric Trade 
  
     (a) Establishment        The Commissioner of Customs, after consultation with appropriate officials in the State of Texas, is authorized and directed to make grants to an institution (or a consortium of such institutions) 
to assist such institution in planning, establishing,  and operating a Center for the Study of Western 
Hemispheric Trade (hereafter in this section refe rred to as the ''Center''). The Commissioner of 
Customs shall make the first grant not later than  December 1, 1994, and the Center shall be 
established not later than February 1, 1995.      (b) Scope of Center        The Center shall be a year-round program operated by an institution located in the State of Texas (or a consortium of such institutions), the purpose of which is to promote and study trade 
between and among Western Hemisphere countries.  The Center shall conduct activities designed to 
examine –   (1) the impact of the NAFTA on the economies in, and trade within, the Western Hemisphere;          (2) the negotiation of any future fr ee trade agreements, including possible accessions to the  G/C/W/508/Rev.2 
 Page 21 
 
 
  NAFTA; and 
         (3) adjusting tariffs, reducing no ntariff barriers, improving relations among customs 
officials, and promoting economic relations  among countries in the Western Hemisphere. 
     (c) Consultation; selection criteria        The Commissioner of Customs shall consult with appropriate officials of the State of Texas 
and private sector authorities with respect to selecting, planning, and establishing the Center. In 
selecting the appropriate institution, the Commissione r of Customs shall give consideration to –  
 (1) the institution's ability to carry out the pr ograms and activities described in this section; 
and          (2) any resources the institution can provide the Center in addition to Federal funds 
provided under this program. 
     (d) Programs and activities        The Center shall conduct the following activities:          (1) Provide forums for international discussion and debate for representatives from countries in the Western Hemisphere regarding issu es which affect trade and other economic relations 
within the hemisphere, including the impact of the NAFTA on individual economies and the 
desirability and feasibility of possible accessions to the NAFTA by such countries.          (2) Conduct studies and research pr ojects on subjects which affect Western Hemisphere 
trade, including tariffs, customs, regional and na tional economics, business development and finance, 
production and personnel management , manufacturing, agriculture, engineering, transportation, 
immigration, telecommunications, medicine, scien ce, urban studies, border demographics, social 
anthropology, and population. 
         (3) Publish materials, disseminate information, and conduct seminars and conferences to 
support and educate representatives from countries in the Western Hemisphere who seek to do 
business with or invest in other Western Hemisphere countries.          (4) Provide grants, fellowships, endow ed chairs, and financial assistance to outstanding 
scholars and authorities from Western Hemisphere countries. 
         (5) Provide grants, fellowships, a nd other financial assistan ce to qualified graduate 
students, from Western Hemisphere countries, to study at the Center.          (6) Implement academic exchange programs and other cooperative research and instructional agreements with the complementar y Dante B. Fascell North-South Center at the 
University of Miami at Coral Gables. 
     (e) Definitions 
       For purposes of this section -        (1) NAFTA          The term ''NAFTA'' means the North American Free Trade Agreement. 
       (2) Western Hemisphere countries 
         The terms ''Western Hemisphere count ries'', ''countries in the Western Hemisphere'', and 
''Western Hemisphere'' mean Canada, the United St ates, Mexico, countries locat ed in South America, 
beneficiary countries (as defined by section 2702 of this title), the Commonwealth of Puerto Rico, and 
the United States Virgin Islands.      (f) Fees for seminars and publications        Notwithstanding any other provision of law, a grant made under this section may provide 
that the Center may charge a reasonable fee for attendance at seminars and conferences and for copies 
of publications, studies, reports, and other documen ts the Center publishes.  The Center may waive 
such fees in any case in which it determines imposing a fee would impose a financial hardship and the purposes of the Center would be served by granting such a waiver.      (g) Duration of grant 
       The Commissioner of Customs is directed  to make grants to any institution or institutions 
selected as the Center for fiscal years 1994, 1995, 1996, and 1997.      (h) Report        The Commissioner of Customs shall, no later than July 1, 1994, and annually thereafter for 
years for which grants are made, submit a written report to the Committee on Finance of the Senate G/C/W/508/Rev.2 
Page 22  
 
  and the Committee on Ways and Means of the House of Representatives. The first report shall include 
–   (1) a statement identifying the institution or institutions selected as the Center; 
         (2) the reasons for selecting the institution or institutions as the Center; and          (3) the plan of such institution or institutions for operating the Center. 
     Each subsequent report shall include in formation with respect to the operations of the 
Center, the collaboration of the Center with, a nd dissemination of information to, Government 
policymakers and the business community with respect  to the study of Western Hemispheric trade by 
the Center, and the plan and efforts of the Center to  continue operations after grants under this section 
have expired. 
 
  G/C/W/508/Rev.2 
 Page 23 
 
 
  ANNEX I.b 
 
MISCELLANEOUS TRADE AND TECH NICAL CORRECTIONS ACT OF 2004 
 
SEC. 1558. TREATMENT OF CERTAIN FOOTWEAR UNDER CARIBBEAN BASIN ECONOMIC RECOVERY ACT. 
Section 213(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)) is amended 
as follows: 
(1) By amending paragraph (1)(B) to read as follows: 
`(B) footwear provided for in any of subheadings 6401.10.00, 6401.91.00, 
6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 
6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.80, 6402.99.90, 6403.59.60, 6403.91.30, 6403.99.60, 6403.99.90, 6404.11.90, and 6404.19.20 of the HTS that was not designate d at the time of the effective date of 
this title as eligible articles for the purpose of the generalized system of 
preferences under title V of the Trade Act of 1974;'. 
(2) In paragraph (3)(A)-- 
(A) in clause (i), by striking `Subject  to clause (ii)' and inserting `Subject to 
clauses (ii) and (iii)'; and 
(B) by adding at the end the following: 
`(iii) CERTAIN FOOTWEAR- Notwithstanding paragraph (1)(B) and 
clause (i) of this subparagraph, footwear provided for in any of 
subheadings 6403.59.60, 6403.91.30, 6403.99.60, and 6403.99.90 of the 
HTS shall be eligible for the duty-fr ee treatment provided for under this 
title if-- 
`(I) the article of footwear is th e growth, product, or manufacture 
of a CBTPA beneficiary country; and 
`(II) the article otherwise meets the requirements of subsection 
(a), except that in applying such subsection, `CBTPA beneficiary country' shall be substituted for `beneficiary country' each place 
it appears.'. 
SEC. 2004. TECHNICAL AMENDMENTS. 
 
(b) APPAREL ARTICLES UNDER CARIBBEAN BASIN ECONOMIC RECOVERY ACT- (1) Section 213(b)(2)(A) of the Caribbean Basin Ec onomic Recovery Act (19 U.S.C. 2703(b)(2)(A)) 
is amended-- G/C/W/508/Rev.2 
Page 24  
 
   
(A) in clause (i), by striking `(including' and inserting `or both (including'; (B) in clause (v), by striking `, from fabrics or  yarn that is not formed in the United States 
or in one or more CBTPA beneficiary countries'; and 
(C) in clause (vii)(IV), by striking `(i) or (ii)' and inserting `(i), (ii), or (ix)'. 
 
(g) ENTRIES OF CERTAIN APPAREL ARTICLES PURSUANT TO THE CARIBBEAN 
BASIN ECONOMIC RECOVERY ACT- 
(1) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) or any other provision of law, the Custom s Service shall liquidate or reliquidate as 
free of duty and free of any quantitative rest rictions, limitations, or  consultation levels 
entries of articles described in paragrap h (4) made on or after October 1, 2000. 
(2) REQUESTS- Liquidation or reliquidation may be made under paragraph (1) with 
respect to an entry described in paragraph (4) only if a request therefor is filed with the 
Customs Service within 90 days after the date of the enactment of this Act and the request 
contains sufficient information to enable the Customs Service to locate the entry or 
reconstruct the entry if it cannot be located. 
(3) PAYMENT OF AMOUNTS OWED- Any am ounts owed by the United States 
pursuant to the liquidation or reliquidation of any entry under paragraph (1) shall be paid 
not later than 180 days after the date of such liquidation or reliquidation. 
(4) ENTRIES- The entries referred to in pa ragraph (1) are entries of apparel articles 
(other than socks provided for in heading 6115 of the Harmonized Ta riff Schedule of the 
United States) that meet the requirements of  section 213(b)(2)(A) of the Caribbean Basin 
Economic Recovery Act (as amended by sec tion 3107(a) of the Trade Act of 2002 and 
subsection (b) of this section). 
  G/C/W/508/Rev.2 
 Page 25 
 
 
  ANNEX I.c 
 
PUBLIC LAW 110-246 
 
Food, Conservation, and Energy Act of 2008  
 
SEC. 15408. EXTENSION OF CBTPA. 
 Section 213(b) of the Caribbean Basin Economic Re covery Act (19 U.S.C. 2703(b)) is amended— 
 
 (1) in paragraph (2)(A)— 
     (A) in clause (iii)—       (i) in subclause (II)(cc), by striking ‘‘2008’’ and inserting ‘‘2010’’; and 
   (ii) in subclause (IV)(dd), by striki ng ‘‘2008’’ and inserting ‘‘2010’’; and 
    (B) in clause (iv)(II), by striking ‘‘6’’ and inserting ‘‘8’’; and   (2) in paragraph (5)(D)—  
  (A) in clause (i), by striking ‘‘2008’’ and inserting ‘‘2010’’; and 
   (B) in clause (ii), by striking ‘‘108( b)(5)’’ and inserting ‘‘section 108(b)(5)’’. G/C/W/508/Rev.2 
Page 26  
 
   ANNEX I.d 
 
Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 
 
SEC. 5001. SHORT TITLE. 
This title may be cited as the `Haitian Hemi spheric Opportunity through Partnership 
Encouragement Act of 2006'. 
 
SEC. 5002. TRADE BENEFITS FOR HAITI. 
(a) In General- The Caribbean Basin Economic Re covery Act (19 U.S.C. 2701 et seq.) is 
amended by inserting after section 213 the following new section: 
`SEC. 213A. SPECIAL RULES FOR HAITI. 
`(a) DEFINITIONS- In this section: 
`(1) APPLICABLE 1-YEAR PERIOD- 
`(A) IN GENERAL- The term `applicable 1-year period' means each of the 1-
year periods described in subparagraphs (B) through (F). 
`(B) INITIAL APPLICABLE 1-YEAR PERIOD- The term `initial applicable 
1-year period' means the 1-year period beginning on the date of the 
enactment of the Haitian  Hemispheric Opportunity through Partnership 
Encouragement Act of 2006. 
`(C) SECOND APPLICABLE 1-YEAR  PERIOD- The term `second 
applicable 1-year period' means the 1-year period beginning on the day after 
the last day of the initial applicable 1-year period. 
`(D) THIRD APPLICABLE 1-YEAR PERIOD- The term `third applicable 1-
year period' means the 1-year period beginning on the day after the last day 
of the second applicable 1-year period. 
`(E) FOURTH APPLICABLE 1-YEAR PERIOD- The term `fourth 
applicable 1-year period' means the 1-year period beginning on the day after 
the last day of the third applicable 1-year period. 
`(F) FIFTH APPLICABLE 1-YEAR PERIOD- The term `fifth applicable 1-
year period' means the 1-year period beginning on the day after the last day 
of the fourth applicable 1-year period. 
`(2) ENTER; ENTRY- The terms `enter' and `ent ry' refer to the entry, or withdrawal 
from warehouse for consumption, in the customs territory of the United States. 
`(b) Apparel Articles- 
`(1) IN GENERAL- In addition to any ot her preferential treatment under this title, 
apparel articles described in paragraph (2) of a producer or entity controlling 
production that are imported directly from Haiti shall enter the United States free of 
duty during an applicable 1-year period, subject to the limitations set forth in 
paragraphs (2) and (3), if Haiti has met th e requirements of subsections (d) and (e). 
`(2) Apparel articles described- 
`(A) IN GENERAL- In any applicable 1-year period, apparel articles 
described in this paragraph are apparel articles that are wholly assembled, or 
are knit-to-shape, in Haiti from any combination of fabrics, fabric 
components, components knit-to-shape, and yarns, only if, for each entry in 
the applicable 1-year period, the sum of-- 
`(i) the cost or value of the materials produced in Haiti or one or 
more countries described in subpara graph (C), or any combination 
thereof, plus  G/C/W/508/Rev.2 
 Page 27 
 
 
  `(ii) the direct costs of processing operations (as defined in section 
213(a)(3)) performed in Haiti or one or more countries described in 
subparagraph (C), or any combination thereof, 
is not less than the applicable percen tage (as defined in subparagraph (E)(i)) 
of the declared customs value of such apparel articles. 
`(B) DEDUCTIONS- In calculating cost or value under subparagraph (A)(i), 
there shall be deducted the cost or value of-- 
`(i) any foreign materials that ar e used in the production of the 
apparel articles in Haiti; and 
`(ii) any foreign materials that are used in the production of the 
materials described in subparagraph (A)(i). 
`(C) COUNTRIES DESCRIBED- The count ries referred to in subparagraph 
(A) are the following: 
`(i) The United States. 
`(ii) Any country that is a party to a free trade agreement with the 
United States that is in effect on the date of the enactment of the 
Haitian Hemispheric Opportuni ty through Partnership 
Encouragement Act of 2006, or that enters into force under the 
Bipartisan Trade Promotion Authority Act of 2002 (19 U.S.C. 3801 
et seq.). 
`(iii) Any country designated as a beneficiary country under section 
213(b)(5)(B) of this Act. 
`(iv) Any country designated as a beneficiary country under section 
506A(a)(1) of the Trade Act of 1974 (19 U.S.C. 2466a(a)(1)), if a 
finding has been made by the President or the President's designee, 
and published in the Federal Register, that the country has satisfied 
the requirements of section 113 of the African Growth and 
Opportunity Act (19 U.S.C. 3722). 
`(v) Any country designated as a beneficiary country under section 
204(b)(6)(B) of the Andean Trad e Preference Act (19 U.S.C. 
3203(b)(6)(B)). 
`(D) ANNUAL AGGREGATION- 
`(i) INITIAL APPLICABLE 1-YE AR PERIOD- In the initial 
applicable 1-year period, the requirements under subparagraph (A) 
relating to applicable percentage may also be met for articles of a 
producer or an entity controlling production that enter during the 
initial applicable 1-year period by aggregating-- 
`(I) the cost or value of materials under clause (i) of 
subparagraph (A), and 
`(II) the direct costs of processing operations under clause 
(ii) of subparagraph (A), 
of all apparel articles of that produ cer or entity controlling production 
that are wholly assembled, or are knit-to-shape, in Haiti and are 
entered during the initial applicable 1-year period. 
`(ii) OTHER APPLICABLE 1-YEAR PERIODS- In each of the 
second, third, fourth, and fifth applicable 1-year periods, the 
requirements under subparagraph (A) relating to applicable 
percentage may also be met for articles of a producer or an entity 
controlling production that enter during the applicable 1-year period 
by aggregating-- 
`(I) the cost or value of materials under clause (i) of 
subparagraph (A), and G/C/W/508/Rev.2 
Page 28  
 
  `(II) the direct costs of processing operations under clause 
(ii) of subparagraph (A), 
of all apparel articles of that produ cer or entity controlling production 
that are wholly assembled, or are knit-to-shape, in Haiti and are 
entered during the preceding applicable 1-year period. 
`(iii) DEDUCTIONS- In calculating cost or value under clause (i)(I) 
or (ii)(I), there shall be deducted the cost or value of-- 
`(I) any foreign materials that are used in the production of 
the apparel articles in Haiti; and 
`(II) any foreign materials that are used in the production of 
the materials described in clause (i)(I) or (ii)(I) (as the case 
may be). 
`(iv) INCLUSION IN CALCULATION OF OTHER ARTICLES 
RECEIVING PREFERENTIAL TREATMENT- (I) The entry of a 
woven apparel article receiving preferential treatment under 
paragraph (4) is not included in an annual aggregation under clause 
(i) or (ii). 
`(II) Entries of articles receiving preferential treatment under 
paragraph (5) are not included in an annual aggregation under clause 
(i) or (ii) unless the producer or entity controlling production elects, 
at the time the annual aggregati on calculation is made, to include 
such entries in such aggregation. 
`(III) Entries of apparel articles that  receive preferential treatment 
under any provision of law other than this subsection or are subject to 
the `General' column 1 rate of duty under the HTS are not included in 
an annual aggregation under clause (i) or (ii) unless the producer or 
entity controlling production elects, at the time the annual 
aggregation calculation is made, to include such entries in such 
aggregation. 
`(E) DEFINITIONS- In this paragraph: 
`(i) APPLICABLE PERCENTAGE- The term `applicable 
percentage' means-- 
`(I) 50 percent or more during the initial applicable 1-year 
period, the second applicable 1-year period, and the third 
applicable 1-year period; 
`(II) 55 percent or more during the fourth applicable 1-year 
period; and 
`(III) 60 percent or more during the fifth applicable 1-year 
period. 
`(ii) FOREIGN MATERIAL- The term `foreign material' means a 
material produced in a country other than Haiti or any country 
described in subparagraph (C). 
`(F) DEVELOPMENT OF PROCEDURE TO ENSURE COMPLIANCE- 
`(i) IN GENERAL- The Bureau of Customs and Border Protection of 
the Department of Homeland Secur ity shall develop and implement 
methods and procedures to ensure ongoing compliance with the 
requirements set forth in subparagraphs (A) and (D). 
`(ii) NONCOMPLIANCE- If the Bureau of Customs and Border 
Protection finds that a producer or an entity controlling production 
has not satisfied such requirements in any applicable 1-year period, 
either for individual entries entered pursuant to subparagraph (A) or 
for entries entered in aggregate pursuant to subparagraph (D), then 
apparel articles described in subpara graph (A) of that producer or  G/C/W/508/Rev.2 
 Page 29 
 
 
  entity shall be ineligible for pr eferential treatment under paragraph 
(1) during any succeeding applicable 1-year period until-- 
`(I) the cost or value of materials under clause (i) of 
subparagraph (A), plus 
`(II) the direct costs of processing operations under clause 
(ii) of subparagraph (A), 
of that producer or entity controlling production, is not less than the 
applicable percentage under subparagr aph (E)(i), plus 10 percent, of 
the aggregate declared customs value of all apparel articles of that 
producer or entity controlling production that are wholly assembled, 
or are knit-to-shape, in Haiti a nd are entered during the preceding 
applicable 1-year period. 
`(iii) RETROACTIVE APPLICATION OF DUTY-FREE 
TREATMENT- If-- 
`(I) a producer or an entity controlling production is 
ineligible for preferential treat ment under paragraph (1) in an 
applicable 1-year period because that producer or entity 
controlling production did not satisfy the requirements of 
subparagraph (A) or (D), and 
`(II) that producer or entity controlling production satisfies 
the requirements of clause (ii) of this subparagraph in that 
applicable 1-year period, 
then, 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 Bureau of Customs and Border Protection before the 90th 
day after the Bureau of Customs and Border Protection determines 
that subclause (II) applies, the entry of any articles-- 
`(aa) that was made during that applicable 1-year period, and 
`(bb) with respect to which there would have been 
preferential treatment under paragr aph (1) if the producer or 
entity controlling production had satisfied the requirements 
in subparagraph (A) or (D) (as the case may be), 
shall be liquidated or reliquida ted as though such preferential 
treatment under paragraph (1) applied to such entry. 
`(G) FABRICS NOT AVAILABLE IN COMMERCIAL QUANTITIES- 
`(i) IN GENERAL- For purposes of determining the applicable 
percentage under subparagraph (A) or (D), there may be included in 
that percentage-- 
`(I) the cost of fabrics or yarns to the extent 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; and 
`(II) the cost of fabrics or yarns that are designated as not 
being available in commercial quantities for purposes of-- 
`(aa) section 213(b)(2)(A)(v) of this Act,  
`(bb) section 112(b)(5) of the African Growth and Opportunity Act,  
`(cc) section 204(b)(3)(B)(i)(III) or (ii) of the Andean Trade Preference Act, or  
`(dd) any other provision, relating to determining whet her a textile or apparel article is an originating 
good eligible for preferential treatment, of a law th at implements a free trad e agreement that enters 
into force under the Bipartisan Trade Promotion Authority Act of 2002,  G/C/W/508/Rev.2 
Page 30  
 
  without regard to the source of the fabrics or yarns. 
`(ii) REMOVAL OF DESIGNATION OF FABRICS OR YARNS 
NOT AVAILABLE IN COMMERCIAL QUANTITIES- If the 
President determines that-- 
`(I) any fabric or yarn described in clause (i)(I) was 
determined to be eligible for preferential treatment, or 
`(II) any fabric or yarn described in clause (i)(II) was 
designated as not being availa ble in commercial quantities, 
on the basis of fraud, the President is authorized to remove the 
eligibility or designation (as the case ma y be) of that fabric or yarn 
with respect to articles entered after such removal. 
`(3) Quantitative limitations- The preferential treatment described in paragraph (1) 
shall be extended, during each of the app licable 1-year periods set forth in the 
following table, to not more than the corresponding percentage of the aggregate 
square meter equivalents of all apparel articles imported into the United States in the 
most recent 12-month period for which data are available: 
--------------------------------------------------------------------------- 
`During the:                the corresponding percentage is:  
`initial applicable 1-year period 1 percent. 
`second applicable 1-year period  1.25 percent. 
`third applicable 1-year period   1.5 percent. 
`fourth applicable 1-year period  1.75 percent. 
`fifth applicable 1-year period   2 percent. 
--------------------------------------------------------------------------- 
No preferential treatment shall be provide d under paragraph (1) after the last day of 
the fifth applicable 1-year period. 
`(4) SPECIAL RULE FOR WOVEN APPAREL- In the case of apparel articles 
classifiable under chapter 62 of the HTS (other than articles classifiable under 
subheading 6212.10 of the HTS), as in effect on the date of the enactment of the 
Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006, 
that do not qualify for preferential treatment under paragraph (1) because they do not 
meet the percentage requirements under pa ragraph (2)(A), (2)(B), or (2)(D), the 
preferential treatment under paragraph (1)-- 
`(A) shall be extended, in addition to  the quantities permitted under paragraph 
(3) to-- 
`(i) not more than 50,000,000 square meter equivalents of such 
apparel articles for the initial applicable 1-year period; 
`(ii) not more than 50,000,000 s quare meter equivalents of such 
apparel articles for the second applicable 1-year period; and 
`(iii) not more than 33,500,000 square  meter equivalents for the third 
applicable 1-year period; and 
`(B) may not be extended to such appare l articles after the last day of the 
third applicable 1-year period. 
`(5) SPECIAL RULE FOR BRASSIERES- The preferential treatment under 
paragraph (1) shall, subject to the limitations  under paragraph (3), be extended to any 
article classifiable under heading 6212.10 of the HTS, if the article is both cut and 
sewn or otherwise assembled in Haiti or the United States, or both, without regard to 
the source of the fabric or components from which the article is made, and if Haiti has 
met the requirements of subsections (d) and (e). 
`(c) SPECIAL RULE FOR CERTAIN WIRE  HARNESS AUTOMOTIVE COMPONENTS- 
(1) IN GENERAL- Any wire harness automo tive component that is the product or 
manufacture of Haiti and is imported directly from Haiti into the customs territory of 
the United States shall enter the United Stat es free of duty, during the 5-year period  G/C/W/508/Rev.2 
 Page 31 
 
 
  beginning on the date of the enactment of the Haitian Hemispheric Opportunity 
through Partnership Encourag ement Act of 2006, if Haiti has met the requirements of 
subsection (d) and if the sum of-- 
`(A) the cost or value of the materials produced in Haiti or one or more 
countries described in subsection (b)(2)(C), or any combination thereof, plus 
`(B) the direct costs of processing operations (as defined in section 213(a)(3)) 
performed in Haiti or the United States, or both, 
is not less than 50 percent of the declar ed customs value of such wire harness 
automotive component. 
`(2) WIRE HARNESS AUTOMOTIVE COMPONENT- For purposes of this 
subsection, the term `wire harness automotive component' means any article provided 
for in subheading 8544.30.00 of the HTS, as in  effect on the date of the enactment of 
the Haitian Hemispheric Opportunity thr ough Partnership Encouragement Act of 
2006. 
`(d) Eligibility Requirements- 
`(1) IN GENERAL- Haiti shall be eligible  for preferential treatment under this 
section if the President determines and certifies to Congress that Haiti-- 
`(A) has established, or is making cont inual progress toward establishing-- 
`(i) 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; 
`(ii) the rule of law, political plura lism, and the right to due process, a 
fair trial, and equal protection under the law; 
`(iii) 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; 
`(iv) economic policies to reduce poverty, increase the availability of 
health care and educational opp ortunities, expand physical 
infrastructure, promote the development of private enterprise, and 
encourage the formation of capital markets through microcredit or 
other programs; 
`(v) 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 
`(vi) 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; 
`(B) does not engage in activities that undermine United States national 
security or foreign policy interests; and 
`(C) 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. G/C/W/508/Rev.2 
Page 32  
 
  `(2) TIME LIMIT FOR DETERMINATION- The President shall determine whether 
Haiti meets the requirements of paragraph (1) not  later than 90 days after the date of 
the enactment of the Haitian Hemisphe ric Opportunity through Partnership 
Encouragement Act of 2006. 
`(3) CONTINUING COMPLIANCE- If the Pres ident determines that Haiti is not 
making continual progress in meeting the requi rements described in paragraph (1)(A), 
the President shall terminate the preferential treatment under this section. 
`(e) Conditions Regarding Enfo rcement of Circumvention- 
`(1) IN GENERAL- The preferential treatm ent under subsection (b)(1) 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 ar ticles 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 Bord er Protection verification teams to 
have the access necessar y to investigate thoroughly allegations of 
transshipment through such country. 
`(C) Haiti agrees to report, on a timely basi s, 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 circumven tion as provided in Article 5 of the 
Agreement on Textiles and Clothing. 
`(E) Haiti agrees to require all producers and exporters of articles described in 
subsection (b) in that country to main tain complete records of the production 
and the export of such articles, including  materials used in the production, for 
at least 5 years after the production or export (as the case may be). 
`(F) Haiti agrees to report, on a timely basi s, at the request of the Bureau of 
Customs and Border Protection, documentation establishing the country of 
origin of articles described in subsect ion (b) as used by that country in 
implementing an effective visa system. 
`(2) DEFINITION OF TRANSSHIPMENT- Transshipment within the meaning of 
this subsection has occurred when preferential treatment for a textile or apparel article 
under this section has been claimed on th e basis of material false information 
concerning the country of origin, manufacture, processing, or assembly of the article 
or any of its components. For purposes of this  paragraph, 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 this section. 
`(f) REGULATIONS- The President shall issue regulations to carry out this section not later 
than 180 days after the date of the enactment  of the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006. The Pr esident shall consult with the Committee on 
Ways and Means of the House of Representa tives and the Committee on Finance of the 
Senate in preparing such regulations.'. 
 
SEC. 5003. ITC STUDY. 
The International Trade Commission shall, not la ter than 18 months after the date of the 
enactment of this Act, submit a report to Congress on the effects of the amendments made by 
this Act on the trade markets and industries, i nvolving textile and appare l articles, of Haiti,  G/C/W/508/Rev.2 
 Page 33 
 
 
  the countries described in clauses (ii) and ( iii) of section 213A(b)(2)(C) of the Caribbean 
Basin Economic Recovery Act (as added by secti on 5002 of this Act), and the United States. 
 
SEC. 5004. SENSE OF CONGRESS ON IN TERPRETATION OF TEXTILE AND APPAREL 
PROVISIONS FOR HAITI. 
It is the sense of the Congress that the executive branch, par ticularly the Committee for the 
Implementation of Textile Agreem ents (CITA), the Bureau of Customs and Border Protection 
of the Department of Homeland Security, and th e Department of Commerce, should interpret, 
implement, and enforce the provisions of section 213A(b) of the Caribbean Basin Economic 
Recovery Act, as added by section 5002 of this  Act, relating to preferential treatment of 
textile and apparel articles, br oadly in order to expand trade by maximizing opportunities for 
imports of such articles from Haiti. 
 
SEC. 5005. TECHNICAL AMENDMENTS. 
(a) CBI- Section 213(b)(2)(A)(v) of the Caribb ean Basin Economic Recovery Act (19 U.S.C. 
2703(b)(2)(A)(v)) is amended by adding at the end the following new subclause: 
`(III) If the President determines that any fabric or yarn was 
determined to be eligible for pr eferential treatment under subclause 
(I) on the basis of fraud, the President is authorized to remove that 
designation from that fabric or yarn with respect to articles entered 
after such removal.'. 
(b) ATPA- Section 204(b)(3)(B) of the Ande an Trade Preference Act (19 U.S.C. 
3202(b)(3)(B)) is amended by adding at the end the following new clause: 
`(viii) REMOVAL OF DESIGNATION OF FABRICS OR YARNS 
NOT AVAILABLE IN COMMERCIAL QUANTITIES- If the 
President determines that any fabric or yarn was determined to be 
eligible for preferential treatment under clause (i)(III) or (ii) on the 
basis of fraud, the President is authorized to remove that designation 
from that fabric or yarn with respect to articles entered after such 
removal.'. 
 
SEC. 5006. EFFECTIVE DATE. 
This title and the amendments made by this title apply to articles entered, or withdrawn from 
warehouse for consumption, on or after the 15th day after the date of the enactment of this 
Act. G/C/W/508/Rev.2 
Page 34  
 
  ANNEX I.e 
 
PUBLIC LAW 110-246 
 
Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 
 
(a) Subtitle D--Trade Provisions 
PART I--EXTENSION OF CERTAIN TRADE BENEFITS  
SEC. 15401. SHORT TITLE. 
This part may be cited as the ‘Haitian He mispheric Opportunity through Partnership 
Encouragement Act of 2008’ or the ‘HOPE II Act’. 
 
SEC. 15402. BENEFITS FOR APPAR EL AND OTHER TEXTILE ARTICLES. 
(a) Value-Added Rule- Section 213A(b) of the Carribean Basin Economic Recovery Act 
(19 U.S.C. 2703a(b)) is amended as follows: 
(1) The subsection heading is amended to read as follows: `Apparel and Other 
Textile Articles'. 
(2) Paragraph (1) is amended to read as follows: 
`(1) VALUE-ADDED RULE FOR APPAREL ARTICLES- 
`(A) IN GENERAL- Apparel articles described in subparagraph (B) of a 
producer or entity controlling production that are imported directly from 
Haiti or the Dominican Republic shall enter the United States free of duty 
during an applicable 1-year period, s ubject to the limitations set forth in 
subparagraphs (B) and (C), and subject to subparagraph (D).'. 
(3) Paragraph (2) is amended-- 
(A) in subparagraph (A)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in clause (i), by striki ng `subparagraph (C)' and inserting 
`clause (iii)'; 
(iii) in clause (ii), by striking `subparagraph (C)' and inserting 
`clause (iii)'; 
(iv) in the matter following clause (ii), by striking `subparagraph 
(E)(I)' and inserting `clause (v)(I)'; 
(v) by redesignating clauses (i) and (ii) as subclauses (I) and (II), 
respectively; and 
(vi) by redesignating subparagraph (A) as clause (i); 
(B) in subparagraph (B)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) by striking `subparagraph (A)(i)' each place it appears and 
inserting `clause (i)(I)'; 
(iii) by redesignating clauses (i) and (ii) as subclauses (I) and (II), 
respectively; and 
(iv) by redesignating subparagraph (B) as clause (ii); 
(C) in subparagraph (C)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in the matter preceding clau se (i), by striking `subparagraph 
(A)' and inserting `clause (i)'; 
(iii) in clause (ii), by striking `that enters into force' and all that 
follows through `et seq.)' and inserting `that enters into force 
thereafter';  G/C/W/508/Rev.2 
 Page 35 
 
 
  (iv) by redesignating clauses (i) through (v) as subclauses (I) 
through (V), respectively; and 
(v) by redesignating subpar agraph (C) as clause (iii); 
(D) in subparagraph (D)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in clause (i)-- 
(I) in the matter preceding subclause (I), by striking 
`subparagraph (A)' and inserting `clause (i)'; 
(II) in subclause (I), by striking `clause (i) of subparagraph 
(A)' and inserting `subclause (I) of clause (i)'; 
(III) in subclause (II), by striking `clause (ii) of 
subparagraph (A)' and inserti ng `subclause (II) of clause 
(i)'; 
(IV) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(V) by redesignating clause (i) as subclause (I); 
(iii) in clause (ii)-- 
(I) in the matter preceding subclause (I), by striking 
`subparagraph (A)' and inserting `clause (i)'; 
(II) in subclause (I), by striking `clause (i) of subparagraph 
(A)' and inserting `subclause (I) of clause (i)'; 
(III) in subclause (II), by striking `clause (ii) of 
subparagraph (A)' and inserti ng `subclause (II) of clause 
(i)'; 
(IV) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(V) by redesignating clause (ii) as subclause (II); 
(iv) in clause (iii)-- 
(I) by striking `clause (i)(I) or (ii)(I)' each place it appears 
and inserting `subclause (I)(aa) or (II)(aa)'; 
(II) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(III) by redesignating clause (iii) as subclause (III); 
(v) by amending clause (iv) to read as follows: 
`(IV) INCLUSION IN CALCULATION OF OTHER 
ARTICLES RECEIVING PREFERENTIAL 
TREATMENT- Entries of apparel articles that receive 
preferential treatment under any provision of law other 
than this subparagraph or are subject to the `General' 
column 1 rate of duty under the HTS are not included in 
the annual aggregation under subclause (I) or (II) unless 
the producer or entity controlling production elects, at the 
time the annual aggregation calculation is made, to include 
such entries in such aggregation.'; and 
(vi) by redesignating subparagraph (D) as clause (iv); 
(E) in subparagraph (E)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in clause (i)-- 
(I) by redesignating subclauses (I) through (III) as items 
(aa) through (cc), respectively; and 
(II) by redesignating clause (i) as subclause (I); 
(iii) in clause (ii)-- G/C/W/508/Rev.2 
Page 36  
 
  (I) by striking `subparagraph (C)' and inserting `clause 
(iii)'; and 
(II) by redesignating clause (ii) as subclause (II); and 
(iv) by redesignating subparagraph (E) as clause (v); 
(F) in subparagraph (F)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in clause (i)-- 
(I) by striking `The Bureau of Customs and Border Protection' and inserting `U.S. Customs and 
Border Protection'; 
(II) by striking `subparagraphs (A) and (D)' and inserting 
`clauses (i) and (iv)'; and 
(III) by redesignating clause (i) as subclause (I); 
(iii) in clause (ii)-- 
(I) in the matter preceding subclause (I)-- 
(aa) by striking `the Bureau of Customs and Bo rder Protection' and inserting `U.S. Customs and 
Border Protection';  
(bb) by striking `subparagraph (A)' each pl ace it appears and inserting `clause (i)'; and  
(cc) by striking `subparagraph (D)'  and inserting `clause (iv)';  
(II) in subclause (I), by striking `clause (i) of subparagraph 
(A)' and inserting `subclause (I) of clause (i)'; 
(III) in subclause (II), by striking `clause (ii) of 
subparagraph (A)' and inserti ng `subclause (II) of clause 
(i)'; 
(IV) in the matter following subclause (II), by striking 
`subparagraph (E)(i)' and inserting `clause (v)(I)'; 
(V) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(VI) by redesignating clause (ii) as subclause (II); 
(iv) in clause (iii)-- 
(I) in subclause (I)-- 
(aa) by striking `paragraph (1)' and inserting `subparagraph (A)'; and  
(bb) by striking `subparagraph (A) or (D)'  and inserting `clause (i) or (iv)';  
(II) in subclause (II), by striking `clause (ii) of this 
subparagraph' and inserting `subc lause (II) of this clause'; 
(III) in the matter following subclause (II)-- 
(aa) by striking `the Bureau of Customs and Bo rder Protection' each place it appears and inserting 
`U.S. Customs and Border Protection'; and  
(bb) by striking `subclause (II)' a nd inserting `item (bb)'; and  
(IV) in item (bb)-- 
(aa) by striking `paragraph (1)' and inserting `subparagraph (A)'; and  
(bb) by striking `subparagraph (A) or (D)' and inserting `clause (i) or (iv)'; and  
(V) in the matter following item (bb), by striking 
`paragraph (1)' and inserting `subparagraph (A)'; 
(VI) by redesignating items (aa) and (bb) as subitems (AA) 
and (BB), respectively;  G/C/W/508/Rev.2 
 Page 37 
 
 
  (VII) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(VIII) by redesignating clause (iii) as subclause (III); and 
(v) by redesignating subp aragraph (F) as clause (vi); 
(G) in subparagraph (G)-- 
(i) by moving such subparagraph 2 ems to the right; 
(ii) in clause (i)-- 
(I) in the matter preceding subclause (I), by striking 
`subparagraph (A) or (D)' and in serting `clause (i) or (iv)'; 
(II) in subclause (II)-- 
(aa) in item (dd), by striking `under the Bipartisan Trade Promotion Authority Act of 2002' and 
inserting `with respect to the United States'; and  
(bb) by redesignating items (aa) through (dd) as subitems (AA) through (DD), respectively;  
(III) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(IV) by redesignating clause (i) as subclause (I); 
(iii) in clause (ii)-- 
(I) in subclause (I), by striking `clause (i)(I)' and inserting 
`subclause (I)(aa)'; 
(II) in subclause (II), by striking `clause (i)(II)' and 
inserting `subclause (I)(bb)'; 
(III) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively; and 
(IV) by redesignating clause (ii) as subclause (II); and 
(iv) by redesignating subparagraph (G) as clause (vii); and 
(H) by striking `(2) APPAREL ARTICLES DESCRIBED- ' and inserting 
the following: 
`(B) APPAREL ARTICLES DESCRIBED- '. 
(4) Paragraph (3) is amended-- 
(A) by redesignating such paragraph as subparagraph (C) and moving it 2 
ems to the right; 
(B) by striking `paragraph (1)' each place it appears and inserting 
`subparagraph (A)'; and 
(C) in the table-- 
(i) by striking `1.5 percent' and inserting `1.25 percent'; 
(ii) by striking `1.75 percent' and inserting `1.25 percent'; and 
(iii) by striking `2 percent' and inserting `1.25 percent'. 
(5) The following is added after subparagr aph (C), as redesignated by paragraph 
(4)(A) of this subsection: 
`(D) OTHER PREFERENTIAL TREATMENT NOT AFFECTED BY 
QUANTITATIVE LIMITATIONS- Any apparel article that qualifies for 
preferential treatment under paragraph (2), (3), (4), or (5) or any other 
provision of this title shall not be subject to, or included in the calculation 
of, the quantitative limitations under subparagraph (C).'. 
(b) Special Rule for Woven Articles and Certain Knit Articles- Section 213A(b) of the 
Carribean Basin Economic Recovery Act is  amended by striking paragraph (4) and 
inserting the following: 
`(2) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT 
ARTICLES- 
`(A) SPECIAL RULE FOR ARTICLES OF CHAPTER 62 OF THE HTS- G/C/W/508/Rev.2 
Page 38  
 
  `(i) GENERAL RULE- Any apparel article classifiable under 
chapter 62 of the HTS that is wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric components, 
components knit-to-shape, or yarns and is imported directly from 
Haiti or the Dominican Republic shall enter the United States free 
of duty, subject to clauses (ii) and (iii), without regard to the source 
of the fabric, fabric component s, components knit-to-shape, or 
yarns from which the article is made. 
`(ii) LIMITATION- The preferential treatment described in clause 
(i) shall be extended, in the 1-year period beginning October 1, 
2008, and in each of the 9 succeeding 1-year periods, to not more 
than 70,000,000 square meter e quivalents of apparel articles 
described in such clause. 
`(iii) OTHER PREFERENTIAL TREATMENT NOT AFFECTED 
BY QUANTITATIVE LIMITATION- Any apparel article that 
qualifies for preferential treatment under paragraph (1), (3), (4), or 
(5) or subparagraph (B) of this pa ragraph or any other provision of 
this title shall not be subject to, or included in the calculation of, 
the quantitative limitation under clause (ii). 
`(B) SPECIAL RULE FOR CERTAIN ARTICLES OF CHAPTER 61 OF 
THE HTS- 
`(i) GENERAL RULE- Any apparel article classifiable under 
chapter 61 of the HTS that is wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric components, 
components knit-to-shape, or yarns and is imported directly from 
Haiti or the Dominican Republic shall enter the United States free 
of duty, subject to clauses (ii), (iii), and (iv), without regard to the 
source of the fabric, fabric components, components knit-to-shape, 
or yarns from which the article is made. 
`(ii) EXCLUSIONS- The preferentia l treatment described in clause 
(i) shall not apply to the following: 
`(I) The following apparel artic les of cotton, for men or 
boys, that are classifiable under subheading 6109.10.00 of 
the HTS: 
`(aa) All white T-shirts, with short hemmed sleev es and hemmed bottom, with crew or round neckline 
or with V-neck and with a mitered seam at the center of the V, and without pockets, trim, or 
embroidery.  
`(bb) All white singlets, without pockets, trim, or embroidery.  
`(cc) Other T-shirts, but not including thermal undershirts.  
`(II) T-shirts for men or boys that are classifiable under 
subheading 6109.90.10. 
`(III) The following apparel articles of cotton, for men or 
boys, that are classifiable under subheading 6110.20.20 of 
the HTS: 
`(aa) Sweatshirts.  
`(bb) Pullovers, other than sweaters, vests, or garments imported as part of playsuits.  
`(IV) Sweatshirts for men or boys, of man-made fibers and 
containing less than 65 percent by weight of man-made  G/C/W/508/Rev.2 
 Page 39 
 
 
  fibers, that are classifiable under subheading 6110.30.30 of 
the HTS. 
`(iii) LIMITATION- The preferential treatment described in clause 
(i) shall be extended, in the 1-year period beginning October 1, 
2008, and in each of the 9 succeeding 1-year periods, to not more 
than 70,000,000 square meter e quivalents of apparel articles 
described in such clause. 
`(iv) OTHER PREFERENTIAL TREATMENT NOT AFFECTED 
BY QUANTITATIVE LIMITATION- Any apparel article that 
qualifies for preferential treatment under paragraph (1), (3), (4), or 
(5) or subparagraph (A) of this paragraph or any other provision of 
this title shall not be subject to, or included in the calculation of, 
the quantitative limitation under clause (iii).'. 
(c) Single Transformation Rules Not Subject to Quantitative Limitations- Section 213A(b) 
of the Caribbean Basin Economic Recovery Ac t is amended by striking paragraph (5) and 
inserting the following: 
`(3) APPAREL AND OTHER ARTICLES SUBJECT TO CERTAIN ASSEMBLY 
RULES- 
`(A) BRASSIERES- Any apparel article classifiable under subheading 
6212.10 of the HTS that is wholly assembled, or knit-to-shape, in Haiti 
from any combination of fabrics, fabric components, components knit-to-
shape, or yarns and is imported directly from Haiti or the Dominican 
Republic shall enter the United States free of duty, without regard to the 
source of the fabric, fabric component s, components knit-to-shape, or yarns 
from which the article is made. 
`(B) OTHER APPAREL ARTICLES- Any of  the following apparel articles 
that is wholly assembled, or knit-to -shape, in Haiti from any combination 
of fabrics, fabric components, components knit-to-shape, or yarns and is 
imported directly from Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard  to the source of the fabric, fabric 
components, components knit-to-shape, or yarns from which the article is 
made: 
`(i) Any apparel article that is of a type listed in chapter rule 3, 4, 
or 5 for chapter 61 of the HTS (as such chapter rules are contained 
in section A of the Annex to Proclamation 8213 of the President of 
December 20, 2007) as being excluded from the scope of such 
chapter rule, when such chapter rule is applied to determine 
whether an apparel article is an originating good for purposes of 
general note 29(n) to the HTS, except that, for purposes of this 
clause, reference in such chapte r rules to `6104.12.00' shall be 
deemed to be a reference to `6104.19.60'. 
`(ii)(I) Subject to subclause (II), any a pparel article that is of a type 
listed in chapter rule 3(a), 4(a), or 5(a) for chapter 62 of the HTS, 
as such chapter rules are contained in paragraph 9 of section A of 
the Annex to Proclamation 8213 of the President of December 20, 
2007. 
`(II) Subclause (I) shall not include any apparel article to which 
subparagraph (A) of this  paragraph applies. 
`(C) LUGGAGE AND SIMILAR ITEMS- Any article classifiable under 
subheading 4202.12, 4202.22, 4202.32 or 4202.92 of the HTS that is 
wholly assembled in Haiti and is imported directly from Haiti or the 
Dominican Republic shall enter the United States free of duty, without G/C/W/508/Rev.2 
Page 40  
 
  regard to the source of the fabric, components, or materials from which the 
article is made. 
`(D) HEADGEAR- Any article classifiable under heading 6501, 6502, or 
6504 of the HTS, or under subheading 6505.90 of the HTS, that is wholly 
assembled, knit-to-shape, or formed  in Haiti from any combination of 
fabrics, fabric components, compone nts knit-to-shape, or yarns and is 
imported directly from Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard  to the source of the fabric, fabric 
components, components knit-to-shape, or yarns from which the article is 
made. 
`(E) CERTAIN SLEEPWEAR- Any of the following apparel articles that is 
wholly assembled, or knit-to-shape, in Haiti from any combination of 
fabrics, fabric components, compone nts knit-to-shape, or yarns and is 
imported directly from Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard  to the source of the fabric, fabric 
components, components knit-to-shape, or yarns from which the article is 
made: 
`(i) Pajama bottoms and other sleep wear for women and girls, of 
cotton, that are classifiable under subheading 6208.91.30, or of 
man-made fibers, that are classifiable under subheading 
6208.92.00. 
`(ii) Pajama bottoms and other sleepwear for girls, of other textile 
materials, that are classifiable under subheading 6208.99.20.'. 
(d) Earned Import Allowance Rules- Section 231A(b) of the Caribbean Basin Economic 
Recovery Act is amended by adding at the end the following new paragraph: 
`(4) EARNED IMPORT ALLOWANCE RULE- 
`(A) IN GENERAL- Apparel articles wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric components, components 
knit-to-shape, or yarns and imported directly from Haiti or the Dominican 
Republic shall enter the United States free of duty, without regard to the 
source of the fabric, fabric component s, components knit-to-shape, or yarns 
from which the articles are made, if such apparel articles are accompanied 
by an earned import allowance certificate that reflects the amount of credits 
equal to the total square meter equiva lents of such apparel articles, in 
accordance with the prog ram established under subparagraph (B). For 
purposes of determining the quantity of square meter equivalents under this 
subparagraph, the conversion factors lis ted in `Correlation: U.S. Textile 
and Apparel Industry Category Syst em with the Harmonized Tariff 
Schedule of the United States of America, 2008', or its successor 
publications, of the United States Depa rtment of Commerce, shall apply. 
`(B) EARNED IMPORT ALLOWANCE PROGRAM- 
`(i) ESTABLISHMENT- The Secretary of Commerce shall 
establish a program to provide earne d import allowance certificates 
to any producer or entity c ontrolling production for purposes of 
subparagraph (A), based on the elements described in clause (ii). 
`(ii) ELEMENTS- The elements referred to in clause (i) are the 
following: 
`(I) One credit shall be issued to a producer or an entity 
controlling production for ev ery three square meter 
equivalents of qualifying wove n fabric or qualifying knit 
fabric that the producer or entity controlling production 
can demonstrate that it purchased for the manufacture in 
Haiti of articles like or similar to any article eligible for  G/C/W/508/Rev.2 
 Page 41 
 
 
  preferential treatment under subparagraph (A). The 
Secretary of Commerce shall, if  requested by a producer or 
entity controlling production, create and maintain an 
account for such producer or entity controlling production, 
into which such credits shall be deposited. 
`(II) Such producer or entity controlling production may 
redeem credits issued under subclause (I) for earned import 
allowance certificates reflecting such number of earned 
credits as the producer or entity may request and has 
available. 
`(III) The Secretary of Commerce may require any textile 
mill or other entity located in the United States that exports 
to Haiti qualifying woven fabric or qualifying knit fabric to 
submit, upon such export or upon request, documentation, 
such as a Shipper's Export Declaration, to the Secretary of 
Commerce-- 
`(aa) verifying that the qualifying woven fabric or qualifying knit fabric was exported to a producer in 
Haiti or to an entity controlling production; and  
`(bb) identifying such producer or entity controll ing production, and the quantity and description of 
qualifying woven fabric or qualifyi ng knit fabric exported to such  producer or entity controlling 
production.  
`(IV) The Secretary of Commerce may require that a 
producer or entity controlling production submit 
documentation to verify purchases of qualifying woven 
fabric or qualifying knit fabric. 
`(V) The Secretary of Commerce may make available to 
each person or entity identified in documentation 
submitted under subclause (III) or (IV) information 
contained in such documentation that relates to the 
purchase of qualifying woven fabric or qualifying knit 
fabric involving such person or entity. 
`(VI) The program under this subparagraph shall be 
established so as to allow, to the extent feasible, the 
submission, storage, retrieval, and disclosure of 
information in electronic format, including information 
with respect to the earned import allowance certificates 
required under subparagraph (A)(i). 
`(VII) The Secretary of Commerce may reconcile 
discrepancies in information provided under subclause (III) 
or (IV) and verify the accuracy of such information. 
`(VIII) The Secretary of Commerce shall establish 
procedures to carry out the program under this 
subparagraph and may establish additional requirements to 
carry out this subparagraph. Such additional requirements 
may include-- 
`(aa) submissions by textile mills or other entities in the United States documenting exports of yarns 
wholly formed in the United States to countries descr ibed in paragraph (1)(B)(iii) for the manufacture 
of qualifying knit fabric; and  
`(bb) procedures imposed on producers or entities controlling production to allow the Secretary of 
Commerce to obtain and verify information relating to the production of qualifying knit fabric.  G/C/W/508/Rev.2 
Page 42  
 
  `(iii) QUALIFYING WOVEN FABRIC DEFINED- For purposes 
of this subparagraph, the term  `qualifying woven fabric' means 
fabric wholly formed in the United States from yarns wholly 
formed in the United States, except that-- 
`(I) fabric otherwise eligible as qualifying woven fabric 
shall not be ineligible as qualifying woven fabric because 
the fabric contains nylon filament yarn to which section 
213(b)(2)(A)(vii)(IV) applies; 
`(II) fabric that would otherwise be ineligible as qualifying 
woven fabric because the fabric contains yarns not wholly 
formed in the United States sh all not be ineligible as 
qualifying woven fabric if the total weight of all such yarns 
is not more than 10 percent of the total weight of the 
fabric; and 
`(III) fabric otherwise eligible as qualifying woven fabric 
shall not be ineligible as qualifying fabric because the 
fabric contains yarns covered by clause (i) or (ii) of 
paragraph (5)(A). 
`(iv) QUALIFYING KNIT FABRIC DEFINED- For purposes of 
this subparagraph, the term `qualif ying knit fabric' means fabric or 
knit-to-shape components wholly fo rmed or knit-to-shape in any 
country or any combination of countries described in paragraph 
(1)(B)(iii), from yarns wholly formed in the United States, except 
that-- 
`(I) fabric or knit-to-shape components otherwise eligible 
as qualifying knit fabric sha ll not be ineligible as 
qualifying knit fabric because th e fabric or knit-to-shape 
components contain nylon filament yarn to which section 
213(b)(2)(A)(vii)(IV) applies; 
`(II) fabric or knit-to-shape components that would 
otherwise be ineligible as qualifying knit fabric because 
the fabric or knit-to-shape components contain yarns not 
wholly formed in the United States shall not be ineligible 
as qualifying knit fabric if the total weight of all such yarns 
is not more than 10 percent of the total weight of the fabric 
or knit-to-shape components; and 
`(III) fabric or knit-to-shape components otherwise eligible 
as qualifying knit fabric sha ll not be ineligible as 
qualifying knit fabric because th e fabric or knit-to-shape 
components contain yarns covered by clause (i) or (ii) of 
paragraph (5)(A). 
`(C) REVIEW BY UNITED STATES GOVERNMENT 
ACCOUNTABILITY OFFICE- The United States Government 
Accountability Office shall review  the program established under 
subparagraph (B) annually for the pur pose of evaluating the effectiveness 
of, and making recommendations for improvements in, the program. 
`(D) ENFORCEMENT PROVISIONS- 
`(i) FRAUDULENT CLAIMS OF PREFERENCE- Any person 
who makes a false claim for preference under the program 
established under subparagraph (B) shall be subject to any 
applicable civil or criminal penalty that may be imposed under the 
customs laws of the United States or under title 18, United States 
Code.  G/C/W/508/Rev.2 
 Page 43 
 
 
  `(ii) PENALTIES FOR OTHER FRAUDULENT 
INFORMATION- The Secretary of Commerce may establish and 
impose penalties for the submission to the Secretary of Commerce 
of fraudulent information under the program established under 
subparagraph (B), other than a claim described in clause (i).'. 
(e) Short Supply Rules - Section 213A(b) of the Caribbean Basin Economic Recovery Act 
is amended by adding at the end the following: 
`(5) SHORT SUPPLY PROVISION- 
`(A) IN GENERAL- Any apparel article that is wholly assembled, or knit-
to-shape, in Haiti from any combinati on of fabrics, fabric components, 
components knit-to-shape, or yarns and is imported directly from Haiti or 
the Dominican Republic shall enter the United States free of duty, without 
regard to the source of the fabrics, fabric components, components knit-to-
shape, or yarns from which the article  is made, if the fabrics, fabric 
components, components knit-to-shape, or yarns comprising the component 
that determines the tariff classification of the article are of any of the 
following: 
`(i) Fabrics or yarns, to the extent 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) Fabrics or yarns, to the exte nt that such fabrics or yarns are 
designated as not being available in commercial quantities for 
purposes of-- 
`(I) section 213(b)(2)(A)(v) of this Act; 
`(II) section 112(b)(5) of the African Growth and 
Opportunity Act; 
`(III) clause (i)(III) or (ii) of section 204(b)(3)(B) of the 
Andean Trade Preference Act; or 
`(IV) any other provision, relating to determining whether 
a textile or apparel article is an originating good eligible 
for preferential treatment, of a law that implements a free 
trade agreement entered into by the United States that is in 
effect at the time the claim for preferential treatment is 
made. 
`(B) REMOVAL OF DESIGNATION OF FABRICS OR YARNS NOT 
AVAILABLE IN COMMERCIAL QUANTITIES- If the President 
determines that-- 
`(i) any fabric or yarn described in clause (i) of subparagraph (A) 
was determined to be eligible for preferential treatment, or 
`(ii) any fabric or yarn described in clause (ii) of subparagraph (A) 
was designated as not being available in commercial quantities, 
on the basis of fraud, the President is authorized to remove the eligibility or 
designation (as the case may be) of that fabric or yarn with respect to 
articles entered after such removal.'. 
(f) Miscellaneous Provisions- 
(1) RELATIONSHIP TO OTHER PREFERENTIAL PROGRAMS- Section 
213A(b) of the Caribbean Basin Economic R ecovery Act is ame nded by adding at 
the end the following: 
`(6) OTHER PREFERENTIAL TREATMENT NOT AFFECTED- The duty-free 
treatment provided under this subsection is  in addition to any other preferential 
treatment under this title.'. G/C/W/508/Rev.2 
Page 44  
 
  (2) DEFINITIONS- Section 213A(a) of th e Caribbean Basin Economic Recovery 
Act (19 U.S.C.  
2703a(a)) is amended by adding at the end the following:  
`(3) IMPORTED DIRECTLY FROM HAITI OR THE DOMINICAN REPUBLIC- 
Articles are `imported directly from Haiti or the Dominican Republic' if-- 
`(A) the articles are shipped directly from Haiti or the Dominican Republic 
into the United States without passing through the territory of any 
intermediate country; or 
`(B) the articles ar e shipped from Haiti or the Do minican Republic into the 
United States through the territory of an intermediate country, and-- 
`(i) the articles in the shipment do not enter into the commerce of 
any intermediate country, and the invoices, bills of lading, and 
other shipping documents specify the United States as the final 
destination; or 
`(ii) the invoices and other documents do not specify the United 
States as the final destination, bu t the articles in the shipment-- 
`(I) remain under the control of the customs authority in 
the intermediate country; 
`(II) do not enter into the comme rce of the intermediate 
country except for the purpose of a sale other than at retail; 
and 
`(III) have not been subjected to operations in the 
intermediate country other than loading, unloading, or 
other activities necessary to preserve the articles in good 
condition. 
`(4) KNIT-TO-SHAPE- A good is `knit-to-sha pe' if 50 percent or more of the 
exterior surface area of the good is formed by major parts that have been knitted or 
crocheted directly to the shape used in th e good, with no consideration being given 
to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those 
major parts shall not affect the determina tion of whether a good is `knit-to-shape.' 
`(5) WHOLLY ASSEMBLED- A good is `wholly assembled' in Haiti if all 
components, of which there must be at least two, pre-existed in essentially the same 
condition as found in the finished good and were combined to form the finished 
good in Haiti. Minor attachments and minor embellishments (for example, 
appliques, beads, spangles, embroidery, and buttons) not appreciably affecting the 
identity of the good, and minor subassembli es (for example, collars, cuffs, plackets, 
and pockets), shall not affect the dete rmination of whether a good is `wholly 
assembled' in Haiti.'. 
(g) Termination- Section 213A of the Caribb ean Basin Economic Recovery Act (19 U.S.C. 
2703a) is amended by adding at the end the following new subsection: 
`(g) Termination- Except as provided in sub section (b)(1), the duty-free treatment provided 
under this section shall remain in effect until September 30, 2018.'. 
(h) Conforming Amendments- Subsection (e)(1 ) of section 213A of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703a(e)(1 )) is amended by striking `the Bureau of 
Customs and Border Protection' each place it appears and inserting `U.S. Customs and 
Border Protection'. 
 
SEC. 15403. LABOR OMBUDSMAN AND TE CHNICAL ASSISTANC E IMPROVEMENT 
AND COMPLIANCE NEEDS ASSESSMENT AND REMEDIATION PROGRAM. 
Section 213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a), as 
amended by section 15402 of this Act, is amended-- 
(1) in subsection (a)--  G/C/W/508/Rev.2 
 Page 45 
 
 
  (A) by redesignating paragraph (5) as paragraph (8): 
(B) by redesignating paragraphs (2) th rough (4) as paragraphs (4) through 
(6), respectively; 
(C) by inserting after paragraph (1 ) the following new paragraphs: 
`(2) APPROPRIATE CONGRESSIONAL COMMITTEES- . The term 
`appropriate congressional committees' m eans the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of Representatives. 
`(3) CORE LABOR STANDARDS- The term `core labor standards' means-- 
`(A) freedom of association; 
`(B) the effective recognition of the right to bargain collectively; 
`(C) the elimination of all forms of compulsory or forced labor; 
`(D) the effective abolition of child labor and a prohibition on the worst 
forms of child labor; and 
`(E) the elimination of discrimination in respect of employment and 
occupation.'; and 
(D) by inserting after paragraph (6) (as redesignated) the following new 
paragraph: 
`(7) TAICNAR PROGRAM- The term `TAICNAR Program' means the Technical 
Assistance Improvement and Compliance Needs Assessment and Remediation 
Program established pursuant to subsection (e).'; 
(2) by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), 
respectively; and 
(3) by inserting after subsection (d) the following new subsection: 
`(e) Technical Assistance Improvement and Compliance Needs Assessment and 
Remediation Program- 
`(1) CONTINUED ELIGIBILITY FOR PREFERENCES- 
`(A) PRESIDENTIAL CERTIFICATION OF COMPLIANCE BY HAITI 
WITH REQUIREMENTS- Upon the expi ration of the 16-month period 
beginning on the date of the enactment of the Haitian Hemispheric 
Opportunity through Partnership En couragement Act of 2008, Haiti shall 
continue to be eligible for the preferential treatment provided under 
subsection (b) only if the President determines and certifies to the Congress 
that-- 
`(i) Haiti has implemented the requirements set forth in paragraphs 
(2) and (3); and 
`(ii) Haiti has agreed to require producers of articles for which 
duty-free treatment may be requested under subsection (b) to 
participate in the TAICNAR Program described in paragraph (3) 
and has developed a system to ensu re participation in such program 
by such producers, including by developing and maintaining the 
registry described in paragraph (2)(B)(i). 
`(B) EXTENSION- The President may extend the period for compliance by 
Haiti under subparagraph (A) if the President-- 
`(i) determines that Haiti has made a good faith effort toward such 
compliance and has agreed to take  additional steps to come into 
full compliance that are satisfactory to the President; and 
`(ii) provides to the appropriate congressional committees, not later 
than 6 months after the last day of the 16-month period specified in 
subparagraph (A), and every 6 months thereafter, a report 
identifying the steps that Haiti has ag reed to take to come into full 
compliance and the progress made over the preceding 6-month 
period in implementing such steps. 
`(C) CONTINUING COMPLIANCE- G/C/W/508/Rev.2 
Page 46  
 
  `(i) TERMINATION OF PREFERENTIAL TREATMENT- If, 
after making a certification under subparagraph (A), the President 
determines that Haiti is no longe r meeting the requirements set 
forth in subparagraph (A), the President shall terminate the 
preferential treatment provided under subsection (b), unless the 
President determines, after c onsulting with the appropriate 
congressional committees, that meeting such requirements is not 
practicable because of extraordinary circumstances existing in 
Haiti when the determination is made. 
`(ii) SUBSEQUENT COMPLIANCE- If the President, after 
terminating preferential treatment under clause (i), determines that 
Haiti is meeting the requirements set  forth in subparagraph (A), the 
President shall reinstate the application of preferential treatment 
under subsection (b). 
`(2) LABOR OMBUDSMAN- 
`(A) IN GENERAL- The requirement unde r this paragraph is that Haiti has 
established an independent Labor Omb udsman's Office within the national 
government that-- 
`(i) reports directly to the President of Haiti; 
`(ii) is headed by a Labor Ombudsman chosen by the President of 
Haiti, in consultation with Ha itian labor unions and industry 
associations; and 
`(iii) is vested with the authority to perform the functions described 
in subparagraph (B). 
`(B) FUNCTIONS- The functions of the Labor Ombudsman's Office shall 
include-- 
`(i) developing and maintaining a registry of producers of articles 
for which duty-free treatment may be requested under subsection 
(b), and developing, in consu ltation and coordination with any 
other appropriate officials of the Government of Haiti, a system to 
ensure participation by such producers in the TAICNAR Program 
described in paragraph (3); 
`(ii) overseeing the implementation of the TAICNAR Program 
described in paragraph (3); 
`(iii) receiving and investigating comments from any interested 
party regarding the conditions d escribed in paragraph (3)(B) in 
facilities of producers listed in the registry described in clause (i) 
and, where appropriate, referring such comments or the result of 
such investigations to the appropriate Haitian authorities, or to the 
entity operating the TAICNAR Program described in paragraph 
(3); 
`(iv) assisting, in consultation and coordination with any other 
appropriate Haitian authorities, producers listed in the registry 
described in clause (i) in meeting the conditions set forth in 
paragraph (3)(B); and 
`(v) coordinating, with the assist ance of the entity operating the 
TAICNAR Program described in paragraph (3), a tripartite 
committee comprised of appropriate representatives of government 
agencies, employers, and workers, as well as other relevant 
interested parties, for the purposes of evaluating progress in 
implementing the TAICNAR Program described in paragraph (3), 
and consulting on improving core labor standards and working 
conditions in the textile and appa rel sector in Haiti, and on other  G/C/W/508/Rev.2 
 Page 47 
 
 
  matters of common concern relating to such core labor standards 
and working conditions. 
`(3) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE 
NEEDS ASSESSMENT AND REMEDIATION PROGRAM- 
`(A) IN GENERAL- The requirement under this paragraph is that Haiti, in 
cooperation with the International La bor Organization, has established a 
Technical Assistance Improvement and Compliance Needs Assessment and 
Remediation Program meeting the requirements under subparagraph (C)-- 
`(i) to assess compliance by producers listed in the registry 
described in paragraph (2)(B)(i) with the conditions set forth in 
subparagraph (B) and to assist such producers in meeting such 
conditions; and 
`(ii) to provide assistance to improve the capacity of the 
Government of Haiti-- 
`(I) to inspect facilities of producers listed in the registry 
described in paragraph (2)(B)(i); and 
`(II) to enforce national labor laws and resolve labor 
disputes, including through measures described in 
subparagraph (E). 
`(B) CONDITIONS DESCRIBED- The conditions referred to in 
subparagraph (A) are-- 
`(i) compliance with core labor standards; and 
`(ii) compliance with the labor laws of Haiti that relate directly to 
core labor standards and to ensu ring acceptable conditions of work 
with respect to minimum wages, hours of work, and occupational 
health and safety. 
`(C) REQUIREMENTS- The requirements for the TAICNAR Program are 
that the program-- 
`(i) be operated by the Interna tional Labor Organization (or any 
subdivision, instrumentality, or designee thereof), which prepares 
the biannual reports described in subparagraph (D); 
`(ii) be developed through a participatory process that includes the 
Labor Ombudsman described in paragraph (2) and appropriate 
representatives of government agencies, employers, and workers; 
`(iii) assess compliance by each pro ducer listed in the registry 
described in paragraph (2)(B)(i) with the conditions set forth in 
subparagraph (B) and identify any deficiencies by such producer 
with respect to meeting such conditions, including by-- 
`(I) conducting unannounced site visits to manufacturing 
facilities of the producer; 
`(II) conducting confidential inte rviews separately with 
workers and management of the facilities of the producer; 
`(III) providing to management and workers, and where 
applicable, worker organizations in the facilities of the 
producer, on a confidential basis-- 
`(aa) the results of the assessment carried out under this clause; and  
`(bb) specific suggestions for remediating any such deficiencies;  
`(iv) assist the producer in remedi ating any deficiencies identified 
under clause (iii); G/C/W/508/Rev.2 
Page 48  
 
  `(v) conduct prompt follow-up site visits to the facilities of the 
producer to assess progress on remediation of any deficiencies 
identified under clause (iii); and 
`(vi) provide training to workers and management of the producer, 
and where appropriate, to other persons or entities, to promote 
compliance with subparagraph (B). 
`(D) BIANNUAL REPORT- The biannual reports referred to in 
subparagraph (C)(i) are a report, by the entity operating the TAICNAR 
Program, that is published (and available to the public in a readily 
accessible manner) on a biannual basis, beginning 6 months after Haiti 
implements the TAICNAR Program unde r this paragraph, covering the 
preceding 6-month period, and that includes the following: 
`(i) The name of each producer listed in the registry described in 
paragraph (2)(B)(i) that has been identified as having met the 
conditions under s ubparagraph (B). 
`(ii) The name of each producer lis ted in the registry described in 
paragraph (2)(B)(i) that has been identified as having deficiencies 
with respect to the conditions under subparagraph (B), and has 
failed to remedy such deficiencies. 
`(iii) For each producer listed under clause (ii)-- 
`(I) a description of the deficiencies found to exist and the 
specific suggestions for remediating such deficiencies 
made by the entity operating the TAICNAR Program; 
`(II) a description of the efforts by the producer to 
remediate the deficiencies, including a description of 
assistance provided by any entity to assist in such 
remediation; and 
`(III) with respect to deficiencies that have not been 
remediated, the amount of time that has elapsed since the 
deficiencies were first identified in a report under this 
subparagraph. 
`(iv) For each producer identified as having deficiencies with 
respect to the conditions described under subparagraph (B) in a 
prior report under this subparagra ph, a description of the progress 
made in remediating such deficiencies since the submission of the 
prior report, and an assessment of whether any aspect of such 
deficiencies persists. 
`(E) CAPACITY BUILDING- The assistance to the Government of Haiti 
referred to in subparagraph (A )(ii) shall include programs-- 
`(i) to review the labor laws and regulations of Haiti and to develop 
and implement strategies for bringing  the laws and regulations into 
conformity with core labor standards; 
`(ii) to develop additional strate gies for facilitating protection of 
core labor standards and providi ng acceptable conditions of work 
with respect to minimum wages, hours of work, and occupational 
safety and health, including through legal, regulatory, and 
institutional reform; 
`(iii) to increase awareness of work er rights, including under core 
labor standards and national labor laws; 
`(iv) to promote consultation a nd cooperation between government 
representatives, employers, worker representatives, and United 
States importers on matters relati ng to core labor standards and 
national labor laws;  G/C/W/508/Rev.2 
 Page 49 
 
 
  `(v) to assist the Labor Ombudsman appointed pursuant to 
paragraph (2) in establishing and coordinating operation of the 
committee described in paragraph (2)(B)(v); 
`(vi) to assist worker representativ es in more fully and effectively 
advocating on behalf of their members; and 
`(vii) to provide on-the-job training and technical assistance to 
labor inspectors, judicial officers, and other relevant personnel to 
build their capacity to enforce national labor laws and resolve labor 
disputes. 
`(4) COMPLIANCE WITH ELIGIBILITY CRITERIA- 
`(A) COUNTRY COMPLIANCE WITH WORKER RIGHTS 
ELIGIBILITY CRITERIA- In making a determination of whether Haiti is 
meeting the requirement set forth in  subsection (d)(1)(A)(vi) relating to 
internationally recognized worker rights, the President shall consider the 
reports produced under paragraph (3)(D). 
`(B) PRODUCER ELIGIBILITY- 
`(i) IDENTIFICATION OF PRODUCERS- Beginning in the 
second calendar year after the President makes the certification 
under paragraph (1)(A), the President shall identify on a biennial 
basis whether a producer listed in  the registry described in 
paragraph (2)(B)(i) has failed to co mply with core labor standards 
and with the labor laws of Haiti th at directly relate to and are 
consistent with core labor standards. 
`(ii) ASSISTANCE TO PRODUCERS; WITHDRAWAL, ETC., 
OF PREFERENTIAL TREATMENT- For each producer that the 
President identifies under clause (i ), the President shall seek to 
assist such producer in coming in to compliance with core labor 
standards and with the labor laws of Haiti that directly relate to and 
are consistent with core labor standards. If such efforts fail, the 
President shall withdraw, suspend, or limit the application of 
preferential treatment under subsection (b) to articles of such 
producer. 
`(iii) REINSTATING PREFERENTIAL TREATMENT- If the 
President, after withdrawing, suspending, or limiting the 
application of preferential treatment under clause (ii) to articles of 
a producer, determines that such pr oducer is complying with core 
labor standards and with the labor la ws of Haiti that directly relate 
to and are consistent with core labor standards, the President shall 
reinstate the application of preferential treatment under subsection 
(b) to the articles of the producer. 
`(iv) CONSIDERATION OF REPORTS- In making the 
identification under clause (i) and the determination under clause 
(iii), the President shall consider  the reports made available under 
paragraph (3)(D). 
`(5) REPORTS BY THE PRESIDENT- 
`(A) IN GENERAL- Not later than one year after the date of the enactment 
of the Haitian Hemispheric Oppor tunity through Partnership 
Encouragement Act of 2008, and annually thereafter, the President shall 
transmit to the appropriate congressional committees a report on the 
implementation of this subsection during the preceding 1-year period. 
`(B) MATTERS TO BE INCLUDED- Each report required by 
subparagraph (A) shall include the following: G/C/W/508/Rev.2 
Page 50  
 
  `(i) An explanation of the efforts of Haiti, the President, and the 
International Labor Organization to carry out this subsection. 
`(ii) A summary of each report produced under paragraph (3)(D) 
during the preceding 1-year period and a summary of the findings 
contained in such report. 
`(iii) Identifications made under paragraph (4)(B)(i) and 
determinations made unde r paragraph (4)(B)(iii). 
`(6) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be 
appropriated to carry out this subsecti on the sum of $10,000,000 for the period 
beginning on October 1, 2008, and ending on September 30, 2013.'. 
15404. PETITION PROCESS.  
Section 213A(d) of the Caribbean Basin Econom ic Recovery Act (19 U.S.C. 2703A(d)) is 
amended by adding at the end the following new paragraph: 
`(4) PETITION PROCESS- Any interested party may file a request to have the 
status of Haiti reviewed with respect to the eligibility requirements listed in 
paragraph (1), and the President shall provi de for this purpose the same procedures 
as those that are provided for reviewing the status of eligible beneficiary 
developing countries with respect to the d esignation criteria listed in subsections (b) 
and (c) of section 502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and (c)).'. 
 
SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION. 
Section 213A(f) of the Caribbean Basin Ec onomic Recovery Act, as redesignated by 
section 15403(2) of this Act, is amended by a dding at the end the following new paragraph: 
`(3) LIMITATION ON GOODS SH IPPED FROM THE DOMINICAN 
REPUBLIC- 
`(A) LIMITATION- Notwithstanding subsection (a)(5), relating to the 
definition of `imported directly from Haiti or the Dominican Republic', 
articles described in subsection (b) that are shipped from the Dominican 
Republic, directly or through the terr itory of an intermediate country, 
whether or not such articles undergo processing in the Dominican 
Republic, shall not be considered to be  `imported directly from Haiti or the 
Dominican Republic' until the President certifies to the Congress that Haiti 
and the Dominican Republic have developed procedures to prevent 
unlawful transshipment of the articles and the use of counterfeit documents 
related to the importation of the articles into the United States. 
`(B) TECHNICAL AND OTHER ASSISTANCE- The Commissioner 
responsible for U.S. Customs and Bord er Protection shall provide technical 
and other assistance to Haiti and the Dominican Republic to develop 
expeditiously the procedures described in subparagraph (A).'. 
 
SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY. 
The President may exercise the authority under section 604 of the Trade Act of 1974 to 
proclaim such modifications to the Harmoni zed Tariff Schedule of the United States as may 
be necessary to carry out this part and the amendments made by this part. 
SEC. 15407. REGULATIONS AND PROCEDURES. 
The President shall issue such regulations as may be necessary to carry out the amendments 
made by sections 15402, 15403, and 15404. Regulations to carry out the amendments made 
by section 15402 shall be issued not later th an September 30, 2008. The Secretary of 
Commerce shall issue such procedures as may be necessary to carry out the amendment 
made by section 15402(d) not la ter than September 30, 2008. 
  G/C/W/508/Rev.2 
 Page 51 
 
 
  SEC. 15408. EXTENSION OF CBTPA. 
Section 213(b) of the Caribbean Basin Econom ic Recovery Act (19 U.S.C. 2703(b)) is 
amended-- 
(1) in paragraph (2)(A)-- 
(A) in clause (iii)-- 
(i) in subclause (II)(cc), by striking `2008' and inserting `2010'; and 
(ii) in subclause (IV)(dd), by st riking `2008' and inserting `2010'; 
and 
(B) in clause (iv)(II), by striking `6' and inserting `8'; and 
(2) in paragraph (5)(D)-- 
(A) in clause (i), by striking `2008' and inserting `2010'; and 
(B) in clause (ii), by striking `108(b)(5)' and inserting `section 108(b)(5)'. 
 
SEC. 15409. SENSE OF CONGRESS ON IN TERPRETATION OF TEX TILE AND APPAREL 
PROVISIONS FOR HAITI. 
It is the sense of the Congress that the executiv e branch, particularly the Committee for the 
Implementation of Textile Agre ements (CITA), U.S. Customs and Border Protection of the 
Department of Homeland Security, and the Department of Commerce, should interpret, 
implement, and enforce the provisions of section 213A(b) of the Caribbean Basin 
Economic Recovery Act, as amended by section 15 402 of this Act, relating to preferential 
treatment of textile and apparel articles, br oadly in order to expand trade by maximizing 
opportunities for imports of articles eligible for preferential treatment under such section 
213A(b). 
 
SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI. 
It is the sense of the Congress that the Secretary of Commerce, in coordination with the 
United States Trade Representative, the S ecretary of State, and the Commissioner 
responsible for U.S. Customs and Border Protection of the Department of Homeland 
Security, should lead a trade mission to Haiti,  within 6 months after the date of the 
enactment of this Act, to promote trade between the United States and Haiti, to promote 
new economic opportunities afforded under the am endments made by section 15402 of this 
Act, and to help educate United States and Haitian business concerns about such 
opportunities. 
 
SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS. 
It is the sense of the Congress that Haiti, and other countries that receive preferences under 
trade preference programs of the United Stat es that require effective visa systems to 
prevent transshipment, should ensure that monetary compensation for such visas is not 
required beyond the costs of processing the visa, including ensuring that such monetary 
compensation does not violate an applicable system to combat corruption and bribery. 
 
SEC. 15412. EFFECTIVE DATE. 
(a) In General- Except as provided in subsection (b), this part and th e amendments made by 
this part shall take effect on the date of the enactment of this Act. 
(b) Exception- The amendments made by sec tion 15402 shall take effect on October 1, 
2008, and shall apply to articles entered, or withdrawn from warehouse for consumption, 
on or after that date. 
 
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