PUBLIC LAW 107–43—SEPT. 28, 2001 115 STAT. 243

Public Law 107–43

107th Congress

An Act

To implement the agreement establishing a United States-Jordan free trade area.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘United States-Jordan Free Trade

Area Implementation Act’’.

SEC. 2. PURPOSES.

The purposes of this Act are—

(1) to implement the agreement between the United States

and Jordan establishing a free trade area;

(2) to strengthen and develop the economic relations

between the United States and Jordan for their mutual benefit;

and

(3) to establish free trade between the 2 nations through

the removal of trade barriers.

SEC. 3. DEFINITIONS.

For purposes of this Act:

(1) AGREEMENT.—The term ‘‘Agreement’’ means the Agreement between the United States of America and the Hashemite

Kingdom of Jordan on the Establishment of a Free Trade

Area, entered into on October 24, 2000.

(2) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff

Schedule of the United States.

TITLE I—TARIFF MODIFICATIONS;

RULES OF ORIGIN

SEC. 101. TARIFF MODIFICATIONS.

(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.—

The President may proclaim—

(1) such modifications or continuation of any duty;

(2) such continuation of duty-free or excise treatment; or

(3) such additional duties,

as the President determines to be necessary or appropriate to

carry out article 2.1 of the Agreement and the schedule of duty

reductions with respect to Jordan set out in Annex 2.1 of the

Agreement.

(b) OTHER TARIFF MODIFICATIONS.—The President may

proclaim—

(1) such modifications or continuation of any duty;

19 USC 2112

note.

19 USC 2112

note.

19 USC 2112

note.

United StatesJordan Free

Trade Area

Implementation

Act.

Exports and

imports.

19 USC 2112

note.

Sept. 28, 2001

[H.R. 2603]

115 STAT. 244 PUBLIC LAW 107–43—SEPT. 28, 2001

(2) such continuation of duty-free or excise treatment; or

(3) such additional duties,

as the President determines to be necessary or appropriate to

maintain the general level of reciprocal and mutually advantageous

concessions with respect to Jordan provided for by the Agreement.

SEC. 102. RULES OF ORIGIN.

(a) IN GENERAL.—

(1) ELIGIBLE ARTICLES.—

(A) IN GENERAL.—The reduction or elimination of any

duty imposed on any article by the United States provided

for in the Agreement shall apply only if—

(i) that article is imported directly from Jordan

into the customs territory of the United States; and

(ii) that article—

(I) is wholly the growth, product, or manufacture of Jordan; or

(II) is a new or different article of commerce

that has been grown, produced, or manufactured

in Jordan and meets the requirements of subparagraph (B).

(B) REQUIREMENTS.—

(i) GENERAL RULE.—The requirements of this

subparagraph are that with respect to an article

described in subparagraph (A)(ii)(II), the sum of—

(I) the cost or value of the materials produced

in Jordan, plus

(II) the direct costs of processing operations

performed in Jordan,

is not less than 35 percent of the appraised value

of such article at the time it is entered.

(ii) MATERIALS PRODUCED IN UNITED STATES.—If

the cost or value of materials produced in the customs

territory of the United States is included with respect

to an article to which this paragraph applies, an

amount not to exceed 15 percent of the appraised value

of the article at the time it is entered that is attributable to such United States cost or value may be

applied toward determining the percentage referred

to in clause (i).

(2) EXCLUSIONS.—No article may be considered to meet

the requirements of paragraph (1)(A) 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.

(b) DIRECT COSTS OF PROCESSING OPERATIONS.—

(1) IN GENERAL.—As used in this section, the term ‘‘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

19 USC 2112

note.

PUBLIC LAW 107–43—SEPT. 28, 2001 115 STAT. 245

(B) dies, molds, tooling, and depreciation on machinery

and equipment which are allocable to the specific merchandise.

(2) EXCLUDED COSTS.—The term ‘‘direct costs of processing

operations’’ does not include costs which are not directly attributable to the merchandise concerned, or are not costs of manufacturing the product, such as— (A) profit; and

(B) 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 insurance, advertising, and salesmen’s salaries, commissions, or expenses.

(c) TEXTILE AND APPAREL ARTICLES.— (1) IN GENERAL.—A textile or apparel article imported

directly from Jordan into the customs territory of the United

States shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) only if— (A) the article is wholly obtained or produced in Jordan;

(B) the article is a yarn, thread, twine, cordage, rope,

cable, or braiding, and— (i) the constituent staple fibers are spun in Jordan,

or

(ii) the continuous filament is extruded in Jordan;

(C) the article is a fabric, including a fabric classified

under chapter 59 of the HTS, and the constituent fibers,

filaments, or yarns are woven, knitted, needled, tufted,

felted, entangled, or transformed by any other fabricmaking process in Jordan; or

(D) the article is any other textile or apparel article

that is wholly assembled in Jordan from its component

pieces.

(2) DEFINITION.—For purposes of paragraph (1), an article

is ‘‘wholly obtained or produced in Jordan’’ if it is wholly the

growth, product, or manufacture of Jordan.

(3) SPECIAL RULES.—

(A) CERTAIN MADE-UP ARTICLES, TEXTILE ARTICLES IN

THE PIECE, AND CERTAIN OTHER TEXTILES AND TEXTILE ARTICLES.—Notwithstanding paragraph (1)(D) and except as

provided in subparagraphs (C) and (D) of this paragraph,

subparagraph (A), (B), or (C) of paragraph (1), as appropriate, shall determine whether a good that is classified

under one of the following headings or subheadings of

the HTS shall be considered to meet the requirements

of paragraph (1)(A) of subsection (a): 5609, 5807, 5811,

6209.20.50.40, 6213, 6214, 6301, 6302, 6304, 6305, 6306,

6307.10, 6307.90, 6308, and 9404.90.

(B) CERTAIN KNIT-TO-SHAPE TEXTILES AND TEXTILE

ARTICLES.—Notwithstanding paragraph (1)(D) and except

as provided in subparagraphs (C) and (D) of this paragraph,

a textile or apparel article which is knit-to-shape in Jordan

shall be considered to meet the requirements of paragraph

(1)(A) of subsection (a).

(C) CERTAIN DYED AND PRINTED TEXTILES AND TEXTILE

ARTICLES.—Notwithstanding paragraph (1)(D), a good

classified under heading 6117.10, 6213.00, 6214.00.

115 STAT. 246 PUBLIC LAW 107–43—SEPT. 28, 2001

6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92,

6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93,

6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for

a good classified under any such heading as of cotton

or of wool or consisting of fiber blends containing 16 percent

or more by weight of cotton, shall be considered to meet

the requirements of paragraph (1)(A) of subsection (a) if

the fabric in the good is both dyed and printed in Jordan,

and such dyeing and printing is accompanied by 2 or more

of the following finishing operations: bleaching, shrinking,

fulling, napping, decating, permanent stiffening, weighting,

permanent embossing, or moireing.

(D) FABRICS OF SILK, COTTON, MANMADE FIBER OR VEGETABLE FIBER.—Notwithstanding paragraph (1)(C), a fabric

classified under the HTS as of silk, cotton, man-made fiber,

or vegetable fiber shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the fabric

is both dyed and printed in Jordan, and such dyeing and

printing is accompanied by 2 or more of the following

finishing operations: bleaching, shrinking, fulling, napping,

decating, permanent stiffening, weighting, permanent

embossing, or moireing.

(4) MULTICOUNTRY RULE.—If the origin of a textile or

apparel article cannot be determined under paragraph (1) or

(3), then that article shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if—

(A) the most important assembly or manufacturing

process occurs in Jordan; or

(B) if the applicability of paragraph (1)(A) of subsection

(a) cannot be determined under subparagraph (A), the last

important assembly or manufacturing occurs in Jordan.

(d) EXCLUSION.—A good shall not be considered to meet the

requirements of paragraph (1)(A) of subsection (a) if the good—

(1) is imported into Jordan, and, at the time of importation,

would be classified under heading 0805 of the HTS; and

(2) is processed in Jordan into a good classified under

any of subheadings 2009.11 through 2009.30 of the HTS.

(e) REGULATIONS.—The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this

section.

TITLE II—RELIEF FROM IMPORTS

Subtitle A—General Provisions

SEC. 201. DEFINITIONS.

As used in this title:

(1) COMMISSION.—The term ‘‘Commission’’ means the

United States International Trade Commission.

(2) JORDANIAN ARTICLE.—The term ‘‘Jordanian article’’

means an article that qualifies for reduction or elimination

of a duty under section 102.

19 USC 2112

note.

PUBLIC LAW 107–43—SEPT. 28, 2001 115 STAT. 247

Subtitle B—Relief From Imports

Benefiting From The Agreement

SEC. 211. COMMENCING OF ACTION FOR RELIEF.

(a) FILING OF PETITION.— (1) IN GENERAL.—A petition requesting action under this

subtitle for the purpose of adjusting to the obligations of the

United States under the Agreement may be filed with the

Commission by an entity, including a trade association, firm,

certified or recognized union, or group of workers that is representative of an industry. The Commission shall transmit

a copy of any petition filed under this subsection to the United

States Trade Representative.

(2) PROVISIONAL RELIEF.—An entity filing a petition under

this subsection may request that provisional relief be provided

as if the petition had been filed under section 202(a) of the

Trade Act of 1974.

(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical

circumstances exist shall be included in the petition.

(b) INVESTIGATION AND DETERMINATION.—

(1) IN GENERAL.—Upon the filing of a petition under subsection (a), the Commission, unless subsection (d) applies, shall

promptly initiate an investigation to determine whether, as

a result of the reduction or elimination of a duty provided

for under the Agreement, a Jordanian article is being imported

into the United States in such increased quantities, in absolute

terms or relative to domestic production, and under such conditions that imports of the Jordanian article alone constitute

a substantial cause of serious injury or threat thereof to the

domestic industry producing an article that is like, or directly

competitive with, the imported article.

(2) CAUSATION.—For purposes of this subtitle, a Jordanian

article is being imported into the United States in increased

quantities as a result of the reduction or elimination of a

duty provided for under the Agreement if the reduction or

elimination is a cause that contributes significantly to the

increase in imports. Such cause need not be equal to or greater

than any other cause.

(c) APPLICABLE PROVISIONS.—The following provisions of section

202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect

to any investigation initiated under subsection (b):

(1) Paragraphs (1)(B) and (3) of subsection (b).

(2) Subsection (c).

(3) Subsection (d).

(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation

may be initiated under this section with respect to any Jordanian

article if import relief has been provided under this subtitle with

respect to that article.

SEC. 212. COMMISSION ACTION ON PETITION.

(a) DETERMINATION.—By no later than 120 days (180 days

if critical circumstances have been alleged) after the date on which

an investigation is initiated under section 211(b) with respect to

a petition, the Commission shall make the determination required

under that section.

Deadline.

19 USC 2112

note.

19 USC 2112

note.

115 STAT. 248 PUBLIC LAW 107–43—SEPT. 28, 2001

(b) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA- TION AFFIRMATIVE.—If the determination made by the Commission

under subsection (a) with respect to imports of an article is affirmative, the Commission shall find, and recommend to the President

in the report required under subsection (c), the amount of import

relief that is necessary to remedy or prevent the injury found

by the Commission in the determination and to facilitate the efforts

of the domestic industry to make a positive adjustment to import

competition. The import relief recommended by the Commission

under this subsection shall be limited to that described in section

213(c).

(c) REPORT TO PRESIDENT.—No later than the date that is

30 days after the date on which a determination is made under

subsection (a) with respect to an investigation, the Commission

shall submit to the President a report that shall include— (1) a statement of the basis for the determination;

(2) dissenting and separate views; and

(3) any finding made under subsection (b) regarding import

relief.

(d) PUBLIC NOTICE.—Upon submitting a report to the President

under subsection (c), the Commission shall promptly make public

such report (with the exception of information which the Commission determines to be confidential) and shall cause a summary

thereof to be published in the Federal Register.

(e) APPLICABLE PROVISIONS.—For purposes of this subtitle, the

provisions of paragraphs (1), (2), and (3) of section 330(d) of the

Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect

to determinations and findings made under this section as if such

determinations and findings were made under section 202 of the

Trade Act of 1974 (19 U.S.C. 2252).

SEC. 213. PROVISION OF RELIEF.

(a) IN GENERAL.—No later than the date that is 30 days after

the date on which the President receives the report of the Commission containing an affirmative determination of the Commission

under section 212(a), the President shall provide relief from imports

of the article that is the subject of such determination to the

extent that the President determines necessary to prevent or

remedy the injury found by the Commission and to facilitate the

efforts of the domestic industry to make a positive adjustment

to import competition, unless the President determines that the

provision of such relief is not in the national economic interest

of the United States or, in extraordinary circumstances, that the

provision of such relief would cause serious harm to the national

security of the United States.

(b) NATIONAL ECONOMIC INTEREST.—The President may determine under subsection (a) that providing import relief is not in

the national economic interest of the United States only if the

President finds that taking such action would have an adverse

impact on the United States economy clearly greater than the

benefits of taking such action.

(c) NATURE OF RELIEF.—The import relief (including provisional

relief) that the President is authorized to provide under this subtitle

with respect to imports of an article is—

(1) the suspension of any further reduction provided for

under the United States Schedule to Annex 2.1 of the Agreement in the duty imposed on that article;

Deadline.

President.

19 USC 2112

note.

Federal Register,

publication.

Deadline.

PUBLIC LAW 107–43—SEPT. 28, 2001 115 STAT. 249

(2) an increase in the rate of duty imposed on such article

to a level that does not exceed the lesser of— (A) the column 1 general rate of duty imposed under

the HTS on like articles at the time the import relief

is provided; or

(B) the column 1 general rate of duty imposed under

the HTS on like articles on the day before the date on

which the Agreement enters into force; or

(3) in the case of a duty applied on a seasonal basis to

that article, an increase in the rate of duty imposed on the

article to a level that does not exceed the column 1 general

rate of duty imposed under the HTS on the article for the

corresponding season occurring immediately before the date

on which the Agreement enters into force.

(d) PERIOD OF RELIEF.—The import relief that the President

is authorized to provide under this section may not exceed 4 years.

(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—When import

relief under this subtitle is terminated with respect to an article—

(1) the rate of duty on that article after such termination

and on or before December 31 of the year in which termination

occurs shall be the rate that, according to the United States

Schedule to Annex 2.1 of the Agreement for the staged elimination of the tariff, would have been in effect 1 year after

the initiation of the import relief action under section 211;

and

(2) the tariff treatment for that article after December

31 of the year in which termination occurs shall be, at the

discretion of the President, either—

(A) the rate of duty conforming to the applicable rate

set out in the United States Schedule to Annex 2.1; or

(B) the rate of duty resulting from the elimination

of the tariff in equal annual stages ending on the date

set out in the United States Schedule to Annex 2.1 for

the elimination of the tariff.

SEC. 214. TERMINATION OF RELIEF AUTHORITY.

(a) GENERAL RULE.—Except as provided in subsection (b), no

import relief may be provided under this subtitle after the date

that is 15 years after the date on which the Agreement enters

into force.

(b) EXCEPTION.—Import relief may be provided under this subtitle in the case of a Jordanian article after the date on which

such relief would, but for this subsection, terminate under subsection (a), but only if the Government of Jordan consents to such

provision.

SEC. 215. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19

U.S.C. 2133), any import relief provided by the President under

section 213 shall be treated as action taken under chapter 1 of

title II of such Act.

SEC. 216. SUBMISSION OF PETITIONS.

A petition for import relief may be submitted to the Commission

under—

(1) this subtitle;

(2) chapter 1 of title II of the Trade Act of 1974; or

19 USC 2112

note.

19 USC 2112

note.

19 USC 2112

note.

115 STAT. 250 PUBLIC LAW 107–43—SEPT. 28, 2001

(3) under both this subtitle and such chapter 1 at the

same time, in which case the Commission shall consider such

petitions jointly.

Subtitle C—Cases Under Title II of The

Trade Act of 1974

SEC. 221. FINDINGS AND ACTION ON JORDANIAN IMPORTS.

(a) EFFECT OF IMPORTS.—If, in any investigation initiated under

chapter 1 of title II of the Trade Act of 1974, the Commission

makes an affirmative determination (or a determination which the

President may treat as an affirmative determination under such

chapter by reason of section 330(d) of the Tariff Act of 1930),

the Commission shall also find (and report to the President at

the time such injury determination is submitted to the President)

whether imports of the article from Jordan are a substantial cause

of serious injury or threat thereof.

(b) PRESIDENTIAL ACTION REGARDING JORDANIAN IMPORTS.—

In determining the nature and extent of action to be taken under

chapter 1 of title II of the Trade Act of 1974, the President shall

determine whether imports from Jordan are a substantial cause

of the serious injury found by the Commission and, if such determination is in the negative, may exclude from such action imports

from Jordan.

SEC. 222. TECHNICAL AMENDMENT.

Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8))

is amended in the first sentence— (1) by striking ‘‘and part 1’’ and inserting ‘‘, part 1’’; and

(2) by inserting before the period at the end ‘‘, and title

II of the United States-Jordan Free Trade Area Implementation

Act’’.

TITLE III—TEMPORARY ENTRY

SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS.

Upon the basis of reciprocity secured by the Agreement, an

alien who is a national of Jordan (and any spouse or child (as

defined in section 101(b)(1) of the Immigration and Nationality

Act (8 U.S.C. 1101(b)(1)) of the alien, if accompanying or following

to join the alien) shall be considered as entitled to enter the United

States under and in pursuance of the provisions of the Agreement

as a nonimmigrant described in section 101(a)(15)(E) of the

Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(E)), if the

entry is solely for a purpose described in clause (i) or (ii) of such

section and the alien is otherwise admissible to the United States

as such a nonimmigrant.

TITLE IV—GENERAL PROVISIONS

SEC. 401. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES

AND STATE LAW.

(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—

19 USC 2112

note.

19 USC 2112

note.

19 USC 2112

note.

19 USC 2112

note.

PUBLIC LAW 107–43—SEPT. 28, 2001 115 STAT. 251

(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provision of the Agreement, nor the application of any such provision

to any person or circumstance, that is inconsistent with any

law of the United States shall have effect.

(2) CONSTRUCTION.—Nothing in this Act shall be

construed—

(A) to amend or modify any law of the United States;

or

(B) to limit any authority conferred under any law

of the United States,

unless specifically provided for in this Act.

(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.— (1) LEGAL CHALLENGE.—No State law, or the application

thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application

is inconsistent with the Agreement, except in an action brought

by the United States for the purpose of declaring such law

or application invalid.

(2) DEFINITION OF STATE LAW.—For purposes of this subsection, the term ‘‘State law’’ includes— (A) any law of a political subdivision of a State; and

(B) any State law regulating or taxing the business

of insurance.

(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM- EDIES.—No person other than the United States— (1) shall have any cause of action or defense under the

Agreement; or

(2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency,

or other instrumentality of the United States, any State, or

any political subdivision of a State on the ground that such

action or inaction is inconsistent with the Agreement.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated for each fiscal year

after fiscal year 2001 to the Department of Commerce not more

than $100,000 for the payment of the United States share of the

expenses incurred in dispute settlement proceedings under article

17 of the Agreement.

SEC. 403. IMPLEMENTING REGULATIONS.

After the date of enactment of this Act— (1) the President may proclaim such actions; and

(2) other appropriate officers of the United States may

issue such regulations,

as may be necessary to ensure that any provision of this Act,

or amendment made by this Act, that takes effect on the date

the Agreement enters into force is appropriately implemented on

such date, but no such proclamation or regulation may have an

effective date earlier than the date the Agreement enters into

force.

SEC. 404. EFFECTIVE DATES; EFFECT OF TERMINATION.

(a) EFFECTIVE DATES.—Except as provided in subsection (b),

the provisions of this Act and the amendments made by this Act

take effect on the date the Agreement enters into force.

(b) EXCEPTIONS.—Sections 1 through 3 and this title take effect

on the date of the enactment of this Act.

19 USC 2112

note.

19 USC 2112

note.

19 USC 2112

note.

115 STAT. 252 PUBLIC LAW 107–43—SEPT. 28, 2001

LEGISLATIVE HISTORY—H.R. 2603 (S. 643):

HOUSE REPORTS: No. 107–176, Pt. 1 (Comm. on Ways and Means).

SENATE REPORTS: No. 107–59 accompanying S. 643 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 147 (2001):

July 31, considered and passed House.

Sept. 24, considered and passed Senate.

Æ

(c) TERMINATION OF THE AGREEMENT.—On the date on which

the Agreement ceases to be in force, the provisions of this Act

(other than this subsection) and the amendments made by this

Act, shall cease to be effective.

Approved September 28, 2001.