WORLD TRADE  
ORGANIZATION  G/C/W/508/Rev.1 
28 March 2007 
 (07-1293) 
Council for Trade in Goods Original:   English 
  
 
REQUEST FOR A WAIVER 
 
Caribbean Basin Economic Recove ry Act (CBERA as amended
) 
 
Revision  
 
  The following communication, dated 22 March 2007, 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).1   The United States requests Members to 
extend the waiver through September 30, 2008, a nd 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 a nd the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006 (“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) and secti on 1558 of the Miscellaneous Trade and Technical 
Corrections Act of 2004 (Public Law 108-429), amends the CBERA2 by providing for preferential 
tariff treatment for additional products that orig inate in a country the President has designated as 
                                                      
1See Caribbean Basin Economic Recovery Act, Renewa l of Waiver, Decision of 15 November 1995 
(WT/L/104).  
2The original CBERA program is described in more 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. G/C/W/508/Rev.1 
Page 2  
 
  eligible to receive CBTPA benefits.
3  Further, the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006 (HOPE Ac t), enacted as Division D, Title V of the Tax 
Relief and Health Care Act of 2006 (P.L. 109-432) , amends CBERA to make Haiti eligible for 
additional trade benefits.  The text of the CBE RA 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 eligible beneficiary countries from:  1) fabrics formed in the United States from U.S. yarns and cut, dyed, and finished in the United States; 2) components 
knit-to-shape in the United States from U.S. yarns; 3) 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 sewn with U.S. thread; and 
4) a combination of fabrics formed in the United States from U.S. yarns and dyed and finished in the 
United States, but cut in the region, and component s 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 certain knit appa rel cut and assembled in eligible beneficiary 
countries from fabrics formed in the region or the Un ited States from U.S. yarns, or apparel (other 
than socks) knit-to-shape in eligible beneficiar y countries from U.S. yarns.  There is a separate 
quantitative limit for t-shirts (other than underwear) made  in eligible beneficiar y 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 ma de from fabrics or yarns from third party sources, if 
those inputs are determined to be in “short supply” in the United Stat es; 3) certain textile luggage; and 
4) hand-loomed, handmade, or fo lklore 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,
4 and duty-free treatment for four rubber 
footwear items.5  Section 213(a)(6) of the CBERA as amended (19 U.S.C. § 2703 (a)(6)) also 
provides for duty-free treatment of certain bevera ges produced in Canada from rum produced in 
CBERA beneficiary countries.   The HOPE Act (Section 213a of the CBERA) pr ovides for apparel imports from Haiti to enter 
the United States duty-free if the “applicable percen tage” of the value of inputs and/or costs of 
                                                     
 
3In 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, Bahamas, Barbad os, Belize, British Virgin Islands, Cayman Islands, 
Costa Rica, Dominica, Dominican Republic, El Salva dor, Grenada, Guatemala, Guyana, Haiti, Honduras, 
Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Pa nama, Saint Lucia, Saint Vincent and the Grenadines, 
Saint Kitts and Nevis, Turks and Caicos  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 Barbuda , Aruba, Bahamas, Barbados, Belize, British Virgin 
Islands, Costa Rica, Dominica, Grenada, Guyana, Haiti,  Jamaica, Montserrat, Netherlands Antilles, Panama, 
Saint Kitts and Nevis, Saint Lucia, Saint Vincent and th e Grenadines, and Trinidad and Tobago.  Sections 212 
and 213(b)(5)(B) of the amended 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, Costa Rica, Guyana, Haiti, Jamaica, Panama, Saint Lucia, and Trinidad and 
Tobago. 
4These 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. 
5With 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.  G/C/W/508/Rev.1 
 Page 3 
 
 
  processing is met from any combination of Haiti, United States, U.S. FTA or regional preference 
program partner countries.  The HOPE Act also rem oves 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 treatmen t for any apparel article classifiable 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 Ac t allows automotive wire harnesses imported from 
Haiti that contain at least 50 percent by value of materials produced in Haiti, United States, U.S.-FTA 
partner or regional preference program benefici ary countries to qualify for duty-free treatment. 
 
 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 September 30, 2008, 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.6  Additionally, certain benefits authorized by the HOPE Act are 
available to Haiti through December 20, 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 CBERA  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 
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 and 2004.   3. C
IRCUMSTANCES JUSTIFYING THE WAIVER  
 The United States is committed to working in partnership with our close neighbors 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 
neighbors in the Caribbean Basin, particularly in  Haiti.  Economic prospects for these small countries 
are further complicated by suscep tibility to natural disasters, such as the major hurricanes that have 
                                                      
6 Under section 201(a)(3)(B) of the Dominican Re public-Central America- United 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 be neficiary countries: (1) to preclude the International 
Trade Commission from cumulating CBERA imports in antidumping and countervailing duty investigations 
according to article 8.8.1 of the Agreement; (2) to im plement 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, under co-production arrang ements with CAFTA-DR countries, current CBERA 
beneficiary countries will be able to continue to count in puts from the former beneficiaries toward qualifying for 
CBERA (as amended) benefits. G/C/W/508/Rev.1 
Page 4  
 
  affected the Caribbean Basin in recent years.  In response, the recent extension and expansion of 
benefits under the CBERA as amended by CBTPA a nd the HOPE Act is intended to further expand 
economic opportunities and contribute towards a more stable and prosperous region. 
  We note that our neighbor, 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 climate 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 September 30, 2008, and broaden it to waive 
U.S. obligations under paragraph 1 of Article 1 an d 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 designa ted 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 favorable consideration.  In the meantime , the United 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.1 
 Page 5 
 
 
  CBERA ANNEX I 
(Public Law 109-432) 
 
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 Hemispheri c 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 `entry' 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 Ha iti 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-- G/C/W/508/Rev.1 
Page 6  
 
  `(i) the cost or value of the materials produced in Haiti or one or 
more countries described in subparagraph (C), or any combination 
thereof, plus 
`(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 percenta ge (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 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 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 Trade 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 ma terials 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 ar e 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 ar ticles of a producer or an entity 
controlling production that enter during the applicable 1-year period 
by aggregating--  G/C/W/508/Rev.1 
 Page 7 
 
 
  `(I) the cost or value of ma terials 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 ar e 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 Securi ty 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 G/C/W/508/Rev.1 
Page 8  
 
  for entries entered in aggregate pur suant to subparagraph (D), then 
apparel articles described in subpar agraph (A) of that producer or 
entity shall be ineligible for preferential treatment under paragraph 
(1) during any succeeding applicable 1-year period until-- 
`(I) the cost or value of ma terials 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 produc tion 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 c ontrolling 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 paragraph (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   G/C/W/508/Rev.1 
 Page 9 
 
 
  `(dd) any other provision, relating to  determining whether 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,  
without regard to the source of the fabrics or yarns. 
`(ii) REMOVAL OF DESIGNATION OF FABRICS OR YARNS 
NOT AVAILABLE IN COMMERCI AL 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 artic les 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 eff ect on the date of the enactment of the 
Haitian Hemispheric Opportunity through Partnership Encourag ement 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 squa re 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 apparel 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). G/C/W/508/Rev.1 
Page 10  
 
  `(c) SPECIAL RULE FOR CERTAIN WIRE  HARNESS AUTOMOTIVE COMPONENTS- 
(1) IN GENERAL- Any wire harness auto motive 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 
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  G/C/W/508/Rev.1 
 Page 11 
 
 
  `(C) does not engage in gross violations  of internationally recognized human 
rights or provide support for acts of inte rnational terrorism and cooperates in 
international efforts to eliminate human rights violations and terrorist 
activities. 
`(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 Pr esident 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 Congr ess 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 circumvention 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 maintain 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 subsec tion (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 President 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.'. 
 G/C/W/508/Rev.1 
Page 12  
 
  SEC. 5003. ITC STUDY. 
The International Trade Commission shall, not later 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, 
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 Commer ce, 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 COMMERCI AL 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 da y after the date of the enactment of this 
Act. 
 
  G/C/W/508/Rev.1 
 Page 13 
 
 
   
UNITED STATES - CARIBBEAN BASIN ECONOMIC RECOVERY ACT  
 
Renewal of Waiver  
 
Draft Decision of ....20077 
 
 The General Council, 
  Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   
 
Having  regard to  paragraphs 1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organization (the "W TO Agreement"), the Guiding Principles to be 
followed in considering applications for waiver s adopted on 1 November 1956 (BISD 5S/25), and the 
Understanding in Respect to Waivers of Obliga tions under the General Agreement on Tariffs and 
Trade 1994 (the "Understanding");   
 
Taking note  of the request of the United States
8, pursuant to paragraph 3 of Article IX of the 
Marrakesh Agreement Establishing the World Trad e Organization (WTO Agreement), to extend and 
expand the scope of the existing waiver9 of its obligations under para graph 1 of Article I of the 
General Agreement on Tariffs and Trade 1994 (GA TT 1994), to the extent necessary to permit the 
United States to provide duty-free treatment to eligib le products originating in beneficiary Central 
American and Caribbean countries and territories (“beneficiary countries”) designated pursuant to the provisions of the Caribbean Basin Economic Recovery Act of 1983, as amended by the Caribbean Basin Economic Recovery Expans ion Act of 1990 (CBERA), by extending the waiver through 
30 September 2008, and by broadening the waiver to  include U.S. obligations under paragraph 1 of 
Article I and paragraphs 1 and 2 of Article XIII to the extent necessary for the United States to 
provide preferential tariff treatment to eligible prod ucts originating in bene ficiary countries designated 
pursuant to the provisions of the CBERA, as amen ded by the United States-Caribbean Basin Trade 
Partnership Act and the Haitian Hemispheric Opport unity through Partnershi p Encouragement Act of 
2006 (“CBERA as amended”); 
 
Bearing in mind  the Ministerial Decision on Measures in Favour of Least-Developed 
Countries, adopted in Marrakesh on 15 April 1994;  
Bearing in mind  also that the CONTRACTING PARTIES of the GATT 1947 granted the 
United States a waiver of obligations under paragraph 1 of Article I on February 15, 1985
10, for the 
period from 1 January 1984 through 30 September 1995, and that Members extended the waiver on 15 
November3 in respect of paragraph 1 of Article I of the GATT 1994 through 30 September 2005, to 
the extent necessary for the United States to provi de duty-free treatment for imports of eligible 
products originating in beneficiary countries designated pursuant to the provisions of the CBERA;  
 
Considering  that the United States-Caribbean Basin Trade Partnership Act (CBTPA) and the 
Haitian Hemispheric Opportunity through Partne rship Encouragement Act of 2006 expands the 
preferences the United States extends under the CBERA;  
                                                     
 
7 Adopted in accordance with th e Decision-Making Procedures under Article IX of the WTO 
Agreement agreed by the General Council in November 1995 (WT/L/93). 
8 Documents G/C/W/508 and Add.1. 
9 Document WT/L/104. 
10 (BISD 31S/20). G/C/W/508/Rev.1 
Page 14  
 
  Considering  further the exceptional situation of the CBERA and CBTPA beneficiary 
countries, and the stated objective of the CBERA as amended to assist the trade and economic development and recovery of Caribbean Basin c ountries by encouraging the expansion of productive 
capacity in those countries in response to more liberal access and to new trading opportunities; 
 
Considering  further that the preferential treatment provided for under the CBERA as 
amended is designed to promote the expansion of  trade and economic development of beneficiary 
countries in a manner consistent with the objectives expressed in paragraphs 1, 2, and 3 of the 
Preamble to the WTO Agreement;  
Considering  further that the preferential treatment provided under the CBERA as amended 
will not alter benefits provi ded under the U.S. Generalized System of Preferences to other developing 
countries; 
 
Noting  the assurances given by the United States that it will promptly enter into consultations, 
on request, with any interested Member with respect  to any difficulty or matter that may arise as a 
result of the preferential treatment provided under the CBERA as amended; 
 
Decides , in view of these exceptional circumstances, as follows: 
 
1. Subject to the terms and conditions set out here under, paragraph 1 of Article I and paragraphs 1 
and 2 of Article XIII of the GATT 1994 shall be wa ived through 30 September 2008, to the extent 
necessary to permit the United States to provide pr eferential tariff treatment to eligible products 
originating in beneficiary countries designated pursuant to the provisions of the CBERA as amended.  
 
2. The United States shall submit to the Genera l Council an annual report on the implementation 
of the preferential treatment provided under the CBERA as amended. 
 
3. The United States shall promptly notify the Ge neral Council of any change in the designation 
of beneficiary countries, as well as any change that would affect the eligibility of products for the 
preferential treatment provided under the CBERA as amended. 
 
4. The United States shall promptly enter into consultations, on request, with any interested 
Member with respect to any difficulty or matter that  may arise as a result of the preferential treatment 
provided under the CBERA as amended.  If a Member  considers that any benefit accruing to it under 
the GATT 1994 may be or is being impaired unduly as a result of such implementation, such consultation shall examine the possibility of action for a satisfactory resolution of the matter.   
 
5. This Decision does not affect Members’ rights  as set forth in the Understanding in Respect of 
Waivers of Obligations under the GATT 1994. 
 
__________