PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1103

Public Law 108–302

108th Congress

An Act

To implement the United States-Morocco Free Trade Agreement.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘United StatesMorocco Free Trade Agreement Implementation Act’’.

(b) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

Sec. 3. Definitions.

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE

AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.

Sec. 102. Relationship of the Agreement to United States and State law.

Sec. 103. Implementing actions in anticipation of entry into force and initial regulations.

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed

actions.

Sec. 105. Administration of dispute settlement proceedings.

Sec. 106. Arbitration of claims.

Sec. 107. Effective dates; effect of termination.

TITLE II—CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.

Sec. 202. Additional duties on certain agricultural goods.

Sec. 203. Rules of origin.

Sec. 204. Enforcement relating to trade in textile and apparel goods.

Sec. 205. Regulations.

TITLE III—RELIEF FROM IMPORTS

Sec. 301. Definitions.

Subtitle A—Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.

Sec. 312. Commission action on petition.

Sec. 313. Provision of relief.

Sec. 314. Termination of relief authority.

Sec. 315. Compensation authority.

Sec. 316. Confidential business information.

Subtitle B—Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.

Sec. 322. Determination and provision of relief.

Sec. 323. Period of relief.

Sec. 324. Articles exempt from relief.

Sec. 325. Rate after termination of import relief.

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

United StatesMorocco Free

Trade Agreement

Implementation

Act.

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SEC. 2. PURPOSES.

The purposes of this Act are—

(1) to approve and implement the Free Trade Agreement

between the United States and Morocco entered into under

the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (19 U.S.C. 3803(b));

(2) to strengthen and develop economic relations between

the United States and Morocco for their mutual benefit;

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

the reduction and elimination of barriers to trade in goods

and services and to investment; and

(4) to lay the foundation for further cooperation to expand

and enhance the benefits of such Agreement.

SEC. 3. DEFINITIONS.

In this Act:

(1) AGREEMENT.—The term ‘‘Agreement’’ means the United

States-Morocco Free Trade Agreement approved by Congress

under section 101(a)(1).

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

Schedule of the United States.

(3) TEXTILE OR APPAREL GOOD.—The term ‘‘textile or

apparel good’’ means a good listed in the Annex to the Agreement on Textiles and Clothing referred to in section 101(d)(4)

of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

TITLE I—APPROVAL OF, AND GENERAL

PROVISIONS RELATING TO, THE

AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE ACTION.—Pursuant to section 2105 of the Bipartisan Trade

Promotion Authority Act of 2002 (19 U.S.C. 3805) and section

151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves—

(1) the United States-Morocco Free Trade Agreement

entered into on June 15, 2004, with Morocco and submitted

to Congress on July 15, 2004; and

(2) the statement of administrative action proposed to

implement the Agreement that was submitted to Congress on

July 15, 2004.

(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.—

At such time as the President determines that Morocco has taken

measures necessary to bring it into compliance with those provisions

of the Agreement that are to take effect on the date on which

the Agreement enters into force, the President is authorized to

exchange notes with the Government of Morocco providing for the

entry into force, on or after January 1, 2005, of the Agreement

with respect to the United States.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES

AND STATE LAW.

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

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

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to any person or circumstance, which 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 REMEDIES.—No person other than the United States—

(1) shall have any cause of action or defense under the

Agreement or by virtue of congressional approval thereof; 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. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO

FORCE AND INITIAL REGULATIONS.

(a) IMPLEMENTING ACTIONS.—

(1) PROCLAMATION AUTHORITY.—After the date of the enactment of this Act—

(A) the President may proclaim such actions, and

(B) other appropriate officers of the United States

Government 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.

(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—

Any action proclaimed by the President under the authority

of this Act that is not subject to the consultation and layover

provisions under section 104 may not take effect before the

15th day after the date on which the text of the proclamation

is published in the Federal Register.

(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction

in paragraph (2) on the taking effect of proclaimed actions

is waived to the extent that the application of such restriction

would prevent the taking effect on the date the Agreement

enters into force of any action proclaimed under this section.

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(b) INITIAL REGULATIONS.—Initial regulations necessary or

appropriate to carry out the actions required by or authorized

under this Act or proposed in the statement of administrative

action submitted under section 101(a)(2) to implement the Agreement shall, to the maximum extent feasible, be issued within 1

year after the date on which the Agreement enters into force.

In the case of any implementing action that takes effect on a

date after the date on which the Agreement enters into force,

initial regulations to carry out that action shall, to the maximum

extent feasible, be issued within 1 year after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS.

If a provision of this Act provides that the implementation

of an action by the President by proclamation is subject to the

consultation and layover requirements of this section, such action

may be proclaimed only if—

(1) the President has obtained advice regarding the proposed action from—

(A) the appropriate advisory committees established

under section 135 of the Trade Act of 1974 (19 U.S.C.

2155); and

(B) the United States International Trade Commission;

(2) the President has submitted to the Committee on

Finance of the Senate and the Committee on Ways and Means

of the House of Representatives a report that sets forth—

(A) the action proposed to be proclaimed and the reasons therefor; and

(B) the advice obtained under paragraph (1);

(3) a period of 60 calendar days, beginning on the first

day on which the requirements set forth in paragraphs (1)

and (2) have been met has expired; and

(4) the President has consulted with such Committees

regarding the proposed action during the period referred to

in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President

is authorized to establish or designate within the Department of

Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 20 of the

Agreement. The office may not be considered to be an agency

for purposes of section 552 of title 5, United States Code.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated for each fiscal year after fiscal year 2004 to

the Department of Commerce such sums as may be necessary

for the establishment and operations of the office under subsection

(a) and for the payment of the United States share of the expenses

of panels established under chapter 20 of the Agreement.

SEC. 106. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim against

the United States covered by article 10.15.1(a)(i)(C) or article

10.15.1(b)(i)(C) of the Agreement, pursuant to the Investor-State

Dispute Settlement procedures set forth in section B of chapter

10 of the Agreement.

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SEC. 107. 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.

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

the Agreement terminates, the provisions of this Act (other than

this subsection) and the amendments made by this Act shall cease

to be effective.

TITLE II—CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.— (1) PROCLAMATION AUTHORITY.—The President may

proclaim—

(A) such modifications or continuation of any duty,

(B) such continuation of duty-free or excise treatment,

or

(C) such additional duties,

as the President determines to be necessary or appropriate

to carry out or apply articles 2.3, 2.5, 2.6, 4.1, 4.3.9, 4.3.10,

4.3.11, 4.3.13, 4.3.14, and 4.3.15, and Annex IV of the Agreement.

(2) EFFECT ON MOROCCAN GSP STATUS.—Notwithstanding

section 502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)),

the President shall terminate the designation of Morocco as

a beneficiary developing country for purposes of title V of

the Trade Act of 1974 on the date of entry into force of the

Agreement.

(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation

and layover provisions of section 104, the President may proclaim—

(1) such modifications or continuation of any duty,

(2) such modifications as the United States may agree

to with Morocco regarding the staging of any duty treatment

set forth in Annex IV of the Agreement,

(3) such continuation of duty-free or excise treatment, or

(4) 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 Morocco provided for by the Agreement.

(c) CONVERSION TO AD VALOREM RATES.—For purposes of subsections (a) and (b), with respect to any good for which the base

rate in the Tariff Schedule of the United States to Annex IV

of the Agreement is a specific or compound rate of duty, the President may substitute for the base rate an ad valorem rate that

the President determines to be equivalent to the base rate.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

(a) DEFINITIONS.—In this section:

(1) AGRICULTURAL SAFEGUARD GOOD.—The term ‘‘agricultural safeguard good’’ means a good—

(A) that qualifies as an originating good under section

203;

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118 STAT. 1108 PUBLIC LAW 108–302—AUG. 17, 2004

(B) that is included in the U.S. Agricultural Safeguard

List set forth in Annex 3–A of the Agreement; and

(C) for which a claim for preferential treatment under

the Agreement has been made.

(2) APPLICABLE NTR (MFN) RATE OF DUTY.—The term

‘‘applicable NTR (MFN) rate of duty’’ means, with respect to

an agricultural safeguard good, a rate of duty that is the

lesser of—

(A) the column 1 general rate of duty that would have

been imposed under the HTS on the same agricultural

safeguard good entered, without a claim for preferential

tariff treatment, on the date on which the additional duty

is imposed under subsection (b); or

(B) the column 1 general rate of duty that would have

been imposed under the HTS on the same agricultural

safeguard good entered, without a claim for preferential

tariff treatment, on December 31, 2004.

(3) F.O.B.—The term ‘‘F.O.B.’’ means free on board, regardless of the mode of transportation, at the point of direct shipment by the seller to the buyer.

(4) SCHEDULE RATE OF DUTY.—The term ‘‘schedule rate

of duty’’ means, with respect to an agricultural safeguard good,

the rate of duty for that good set out in the Tariff Schedule

of the United States to Annex IV of the Agreement.

(5) TRIGGER PRICE.—The ‘‘trigger price’’ for a good means

the trigger price indicated for that good in the U.S. Agricultural

Safeguard List set forth in Annex 3–A of the Agreement or

any amendment thereto.

(6) UNIT IMPORT PRICE.—The ‘‘unit import price’’ of a good

means the price of the good determined on the basis of the

F.O.B. import price of the good, expressed in either dollars

per kilogram or dollars per liter, whichever unit of measure

is indicated for the good in the U.S. Agricultural Safeguard

List set forth in Annex 3–A of the Agreement.

(b) ADDITIONAL DUTIES ON AGRICULTURAL SAFEGUARD GOODS.—

(1) ADDITIONAL DUTIES.—In addition to any duty proclaimed under subsection (a) or (b) of section 201, and subject

to paragraphs (3), (4), (5), and (6) of this subsection, the Secretary of the Treasury shall assess a duty on an agricultural

safeguard good, in the amount determined under paragraph

(2), if the Secretary determines that the unit import price

of the good when it enters the United States is less than

the trigger price for that good.

(2) CALCULATION OF ADDITIONAL DUTY.—The additional

duty assessed under this subsection on an agricultural safeguard good shall be an amount determined in accordance with

the following table:

If the excess of the trigger price

over

The additional duty is an

the unit import price is: amount equal to:

Not more than 10 percent of the trigger price ........................................... 0.

PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1109

More than 10 percent but not more

than 40 percent of the trigger price 30 percent of the excess of the

applicable NTR (MFN) rate of

duty over the schedule rate of

duty.

More than 40 percent but not more

than 60 percent of the trigger price 50 percent of such excess.

More than 60 percent but not more

than 75 percent of the trigger price 70 percent of such excess.

More than 75 percent of the trigger

price .................................................. 100 percent of such excess.

(3) EXCEPTIONS.—No additional duty shall be assessed on

a good under this subsection if, at the time of entry, the

good is subject to import relief under—

(A) subtitle A of title III of this Act; or

(B) chapter 1 of title II of the Trade Act of 1974

(19 U.S.C. 2251 et seq.).

(4) TERMINATION.—The assessment of an additional duty

on a good under this subsection shall cease to apply to that

good on the date on which duty-free treatment must be provided

to that good under the Tariff Schedule of the United States

to Annex IV of the Agreement.

(5) TARIFF-RATE QUOTAS.—If an agricultural safeguard good

is subject to a tariff-rate quota under the Agreement, any

additional duty assessed under this subsection shall be applied

only to over-quota imports of the good.

(6) NOTICE.—Not later than 60 days after the date on

which the Secretary of the Treasury assesses an additional

duty on a good under this subsection, the Secretary shall notify

the Government of Morocco in writing of such action and shall

provide to the Government of Morocco data supporting the

assessment of additional duties.

SEC. 203. RULES OF ORIGIN.

(a) APPLICATION AND INTERPRETATION.—In this section:

(1) TARIFF CLASSIFICATION.—The basis for any tariff classification is the HTS.

(2) REFERENCE TO HTS.—Whenever in this section there

is a reference to a heading or sub-heading, such reference

shall be a reference to a heading or subheading of the HTS.

(b) ORIGINATING GOODS.—

(1) IN GENERAL.—For purposes of this Act and for purposes

of implementing the preferential tariff treatment provided for

under the Agreement, a good is an originating good if—

(A) the good is imported directly—

(i) from the territory of Morocco into the territory

of the United States; or

(ii) from the territory of the United States into

the territory of Morocco; and

(B)(i) the good is a good wholly the growth, product,

or manufacture of Morocco or the United States, or both;

(ii) the good (other than a good to which clause (iii)

applies) is a new or different article of commerce that

has been grown, produced, or manufactured in Morocco,

the United States, or both, and meets the requirements

of paragraph (2); or

(iii)(I) the good is a good covered by Annex 4–A or

5–A of the Agreement;

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118 STAT. 1110 PUBLIC LAW 108–302—AUG. 17, 2004

(II)(aa) each of the nonoriginating materials used in

the production of the good undergoes an applicable change

in tariff classification specified in such Annex as a result

of production occurring entirely in the territory of Morocco

or the United States, or both; or

(bb) the good otherwise satisfies the requirements

specified in such Annex; and

(III) the good satisfies all other applicable requirements

of this section.

(2) REQUIREMENTS.—A good described in paragraph

(1)(B)(ii) is an originating good only if the sum of—

(A) the value of each material produced in the territory

of Morocco or the United States, or both, and

(B) the direct costs of processing operations performed

in the territory of Morocco or the United States, or both,

is not less than 35 percent of the appraised value of the good

at the time the good is entered into the territory of the United

States.

(c) CUMULATION.—

(1) ORIGINATING GOOD OR MATERIAL INCORPORATED INTO

GOODS OF OTHER COUNTRY.—An originating good or a material

produced in the territory of Morocco or the United States,

or both, that is incorporated into a good in the territory of

the other country shall be considered to originate in the territory of the other country.

(2) MULTIPLE PROCEDURES.—A good that is grown, produced, or manufactured in the territory of Morocco or the

United States, or both, by 1 or more producers, is an originating

good if the good satisfies the requirements of subsection (b)

and all other applicable requirements of this section.

(d) VALUE OF MATERIALS.—

(1) IN GENERAL.—Except as provided in paragraph (2), the

value of a material produced in the territory of Morocco or

the United States, or both, includes the following:

(A) The price actually paid or payable for the material

by the producer of such good.

(B) The freight, insurance, packing, and all other costs

incurred in transporting the material to the producer’s

plant, if such costs are not included in the price referred

to in subparagraph (A).

(C) The cost of waste or spoilage resulting from the

use of the material in the growth, production, or manufacture of the good, less the value of recoverable scrap.

(D) Taxes or customs duties imposed on the material

by Morocco, the United States, or both, if the taxes or

customs duties are not remitted upon exportation from

the territory of Morocco or the United States, as the case

may be.

(2) EXCEPTION.—If the relationship between the producer

of a good and the seller of a material influenced the price

actually paid or payable for the material, or if there is no

price actually paid or payable by the producer for the material,

the value of the material produced in the territory of Morocco

or the United States, or both, includes the following:

(A) All expenses incurred in the growth, production,

or manufacture of the material, including general expenses.

(B) A reasonable amount for profit.

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(C) Freight, insurance, packing, and all other costs

incurred in transporting the material to the producer’s

plant.

(e) PACKAGING AND PACKING MATERIALS AND CONTAINERS FOR

RETAIL SALE AND FOR SHIPMENT.—Packaging and packing materials

and containers for retail sale and shipment shall be disregarded

in determining whether a good qualifies as an originating good,

except to the extent that the value of such packaging and packing

materials and containers have been included in meeting the requirements set forth in subsection (b)(2).

(f) INDIRECT MATERIALS.—Indirect materials shall be disregarded in determining whether a good qualifies as an originating

good, except that the cost of such indirect materials may be included

in meeting the requirements set forth in subsection (b)(2).

(g) TRANSIT AND TRANSSHIPMENT.—A good shall not be considered to meet the requirement of subsection (b)(1)(A) if, after exportation from the territory of Morocco or the United States, the

good undergoes production, manufacturing, or any other operation

outside the territory of Morocco or the United States, other than

unloading, reloading, or any other operation necessary to preserve

the good in good condition or to transport the good to the territory

of the United States or Morocco.

(h) TEXTILE AND APPAREL GOODS.—

(1) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), a textile or apparel good that is not an originating

good because certain fibers or yarns used in the production

of the component of the good that determines the tariff

classification of the good do not undergo an applicable

change in tariff classification set out in Annex 4–A of

the Agreement shall be considered to be an originating

good if the total weight of all such fibers or yarns in

that component is not more than 7 percent of the total

weight of that component.

(B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile

or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification

of the good shall be considered to be an originating good

only if such yarns are wholly formed in the territory of

Morocco or the United States.

(C) YARN, FABRIC, OR GROUP OF FIBERS.—For purposes

of this paragraph, in the case of a textile or apparel good

that is a yarn, fabric, or group of fibers, the term ‘‘component of the good that determines the tariff classification

of the good’’ means all of the fibers in the yarn, fabric,

or group of fibers.

(2) GOODS PUT UP IN SETS FOR RETAIL SALE.—Notwithstanding the rules set forth in Annex 4–A of the Agreement,

textile or apparel goods classifiable as goods put up in sets

for retail sale as provided for in General Rule of Interpretation

3 of the HTS shall not be considered to be originating goods

unless each of the goods in the set is an originating good

or the total value of the nonoriginating goods in the set does

not exceed 10 percent of the value of the set determined for

purposes of assessing customs duties.

(i) DEFINITIONS.—In this section:

(1) DIRECT COSTS OF PROCESSING OPERATIONS.—

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(A) IN GENERAL.—The term ‘‘direct costs of processing

operations’’, with respect to a good, includes, to the extent

they are includable in the appraised value of the good

when imported into Morocco or the United States, as the

case may be, the following:

(i) All actual labor costs involved in the growth,

production, or manufacture of the good, including

fringe benefits, on-the-job training, and the costs of

engineering, supervisory, quality control, and similar

personnel.

(ii) Tools, dies, molds, and other indirect materials,

and depreciation on machinery and equipment that

are allocable to the good.

(iii) Research, development, design, engineering,

and blueprint costs, to the extent that they are allocable to the good.

(iv) Costs of inspecting and testing the good.

(v) Costs of packaging the good for export to the

territory of the other country.

(B) EXCEPTIONS.—The term ‘‘direct costs of processing

operations’’ does not include costs that are not directly

attributable to a good or are not costs of growth, production,

or manufacture of the good, such as—

(i) profit; and

(ii) general expenses of doing business that are

either not allocable to the good or are not related

to the growth, production, or manufacture of the good,

such as administrative salaries, casualty and liability

insurance, advertising, and sales staff salaries,

commissions, or expenses.

(2) GOOD.—The term ‘‘good’’ means any merchandise,

product, article, or material.

(3) GOOD WHOLLY THE GROWTH, PRODUCT, OR MANUFACTURE

OF MOROCCO, THE UNITED STATES, OR BOTH.—The term ‘‘good

wholly the growth, product, or manufacture of Morocco, the

United States, or both’’ means—

(A) a mineral good extracted in the territory of Morocco

or the United States, or both;

(B) a vegetable good, as such a good is provided for

in the HTS, harvested in the territory of Morocco or the

United States, or both;

(C) a live animal born and raised in the territory

of Morocco or the United States, or both;

(D) a good obtained from live animals raised in the

territory of Morocco or the United States, or both;

(E) a good obtained from hunting, trapping, or fishing

in the territory of Morocco or the United States, or both;

(F) a good (fish, shellfish, and other marine life) taken

from the sea by vessels registered or recorded with Morocco

or the United States and flying the flag of that country;

(G) a good produced from goods referred to in subparagraph (F) on board factory ships registered or recorded

with Morocco or the United States and flying the flag

of that country;

(H) a good taken by Morocco or the United States

or a person of Morocco or the United States from the

seabed or beneath the seabed outside territorial waters,

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if Morocco or the United States has rights to exploit such

seabed;

(I) a good taken from outer space, if such good is

obtained by Morocco or the United States or a person

of Morocco or the United States and not processed in the

territory of a country other than Morocco or the United

States;

(J) waste and scrap derived from—

(i) production or manufacture in the territory of

Morocco or the United States, or both; or

(ii) used goods collected in the territory of Morocco

or the United States, or both, if such goods are fit

only for the recovery of raw materials;

(K) a recovered good derived in the territory of Morocco

or the United States from used goods and utilized in the

territory of that country in the production of remanufactured goods; and

(L) a good produced in the territory of Morocco or

the United States, or both, exclusively—

(i) from goods referred to in subparagraphs (A)

through (J), or

(ii) from the derivatives of goods referred to in

clause (i),

at any stage of production.

(4) INDIRECT MATERIAL.—The term ‘‘indirect material’’

means a good used in the growth, production, manufacture,

testing, or inspection of a good but not physically incorporated

into the good, or a good used in the maintenance of buildings

or the operation of equipment associated with the growth,

production, or manufacture of a good, including—

(A) fuel and energy;

(B) tools, dies, and molds;

(C) spare parts and materials used in the maintenance

of equipment and buildings;

(D) lubricants, greases, compounding materials, and

other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings;

(E) gloves, glasses, footwear, clothing, safety equipment, and supplies;

(F) equipment, devices, and supplies used for testing

or inspecting the good;

(G) catalysts and solvents; and

(H) any other goods that are not incorporated into

the good but the use of which in the growth, production,

or manufacture of the good can reasonably be demonstrated

to be a part of that growth, production, or manufacture.

(5) MATERIAL.—The term ‘‘material’’ means a good,

including a part or ingredient, that is used in the growth,

production, or manufacture of another good that is a new or

different article of commerce that has been grown, produced,

or manufactured in Morocco, the United States, or both.

(6) MATERIAL PRODUCED IN THE TERRITORY OF MOROCCO

OR THE UNITED STATES, OR BOTH.—The term ‘‘material produced

in the territory of Morocco or the United States, or both’’

means a good that is either wholly the growth, product, or

manufacture of Morocco, the United States, or both, or a new

or different article of commerce that has been grown, produced,

118 STAT. 1114 PUBLIC LAW 108–302—AUG. 17, 2004

or manufactured in the territory of Morocco or the United

States, or both.

(7) NEW OR DIFFERENT ARTICLE OF COMMERCE.—

(A) IN GENERAL.—The term ‘‘new or different article

of commerce’’ means, except as provided in subparagraph

(B), a good that—

(i) has been substantially transformed from a good

or material that is not wholly the growth, product,

or manufacture of Morocco, the United States, or both;

and

(ii) has a new name, character, or use distinct

from the good or material from which it was transformed.

(B) EXCEPTION.—A good shall not be considered a new

or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere

dilution with water or another substance that does not

materially alter the characteristics of the good.

(8) RECOVERED GOODS.—The term ‘‘recovered goods’’ means

materials in the form of individual parts that result from—

(A) the complete disassembly of used goods into individual parts; and

(B) the cleaning, inspecting, testing, or other processing

of those parts that is necessary for improvement to sound

working condition.

(9) REMANUFACTURED GOOD.—The term ‘‘remanufactured

good’’ means an industrial good that is assembled in the territory of Morocco or the United States and that—

(A) is entirely or partially comprised of recovered goods;

(B) has a similar life expectancy to, and meets similar

performance standards as, a like good that is new; and

(C) enjoys a factory warranty similar to that of a

like good that is new.

(10) SIMPLE COMBINING OR PACKAGING OPERATIONS.—The

term ‘‘simple combining or packaging operations’’ means operations such as adding batteries to electronic devices, fitting

together a small number of components by bolting, gluing,

or soldering, or packing or repacking components together.

(11) SUBSTANTIALLY TRANSFORMED.—The term ‘‘substantially transformed’’ means, with respect to a good or material,

changed as the result of a manufacturing or processing operation so that—

(A)(i) the good or material is converted from a good

that has multiple uses into a good or material that has

limited uses;

(ii) the physical properties of the good or material

are changed to a significant extent; or

(iii) the operation undergone by the good or material

is complex by reason of the number of processes and materials involved and the time and level of skill required

to perform those processes; and

(B) the good or material loses its separate identity

in the manufacturing or processing operation.

(j) PRESIDENTIAL PROCLAMATION AUTHORITY.—

(1) IN GENERAL.—The President is authorized to proclaim,

as part of the HTS—

PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1115

(A) the provisions set out in Annex 4–A and Annex

5–A of the Agreement; and

(B) any additional subordinate category necessary to

carry out this title consistent with the Agreement.

(2) MODIFICATIONS.—

(A) IN GENERAL.—Subject to the consultation and layover provisions of section 104, the President may proclaim

modifications to the provisions proclaimed under the

authority of paragraph (1)(A), other than provisions of chapters 50 through 63 of the HTS, as included in Annex

4–A of the Agreement.

(B) ADDITIONAL PROCLAMATIONS.—Notwithstanding

subparagraph (A), and subject to the consultation and layover provisions of section 104, the President may

proclaim—

(i) modifications to the provisions proclaimed under

the authority of paragraph (1)(A) as are necessary

to implement an agreement with Morocco pursuant

to article 4.3.6 of the Agreement; and

(ii) before the end of the 1-year period beginning

on the date of the enactment of this Act, modifications

to correct any typographical, clerical, or other nonsubstantive technical error regarding the provisions of

chapters 50 through 63 of the HTS, as included in

Annex 4–A of the Agreement.

SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND

APPAREL GOODS.

(a) ACTION DURING VERIFICATION.—

(1) IN GENERAL.—If the Secretary of the Treasury requests

the Government of Morocco to conduct a verification pursuant

to article 4.4 of the Agreement for purposes of making a determination under paragraph (2), the President may direct the

Secretary to take appropriate action described in subsection

(b) while the verification is being conducted.

(2) DETERMINATION.—A determination under this paragraph is a determination—

(A) that an exporter or producer in Morocco is complying with applicable customs laws, regulations, procedures, requirements, or practices affecting trade in textile

or apparel goods; or

(B) that a claim that a textile or apparel good exported

or produced by such exporter or producer—

(i) qualifies as an originating good under section

203 of this Act, or

(ii) is a good of Morocco,

is accurate.

(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under

subsection (a)(1) includes—

(1) suspension of liquidation of the entry of any textile

or apparel good exported or produced by the person that is

the subject of a verification referred to in subsection (a)(1)

regarding compliance described in subsection (a)(2)(A), in a

case in which the request for verification was based on a

reasonable suspicion of unlawful activity related to such goods;

and

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118 STAT. 1116 PUBLIC LAW 108–302—AUG. 17, 2004

(2) suspension of liquidation of the entry of a textile or

apparel good for which a claim has been made that is the

subject of a verification referred to in subsection (a)(1) regarding

a claim described in subsection (a)(2)(B).

(c) ACTION WHEN INFORMATION IS INSUFFICIENT.—If the Secretary of the Treasury determines that the information obtained

within 12 months after making a request for a verification under

subsection (a)(1) is insufficient to make a determination under

subsection (a)(2), the President may direct the Secretary to take

appropriate action described in subsection (d) until such time as

the Secretary receives information sufficient to make a determination under subsection (a)(2) or until such earlier date as the President may direct.

(d) APPROPRIATE ACTION DESCRIBED.—Appropriate action

referred to in subsection (c) includes—

(1) publication of the name and address of the person

that is the subject of the verification;

(2) denial of preferential tariff treatment under the Agreement to—

(A) any textile or apparel good exported or produced

by the person that is the subject of a verification referred

to in subsection (a)(1) regarding compliance described in

subsection (a)(2)(A); or

(B) a textile or apparel good for which a claim has

been made that is the subject of a verification referred

to in subsection (a)(1) regarding a claim described in subsection (a)(2)(B); and

(3) denial of entry into the United States of—

(A) any textile or apparel good exported or produced

by the person that is the subject of a verification referred

to in subsection (a)(1) regarding compliance described in

subsection (a)(2)(A); or

(B) a textile or apparel good for which a claim has

been made that is the subject of a verification referred

to in subsection (a)(1) regarding a claim described in subsection (a)(2)(B).

SEC. 205. REGULATIONS.

The Secretary of the Treasury shall prescribe such regulations

as may be necessary to carry out—

(1) subsections (a) through (i) of section 203;

(2) amendments to existing law made by the subsections

referred to in paragraph (1); and

(3) proclamations issued under section 203(j).

TITLE III—RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

In this title:

(1) MOROCCAN ARTICLE.—The term ‘‘Moroccan article’’

means an article that qualifies as an originating good under

section 203(b) of this Act or receives preferential tariff treatment under paragraphs 9 through 15 of article 4.3 of the

Agreement.

(2) MOROCCAN TEXTILE OR APPAREL ARTICLE.—The term

‘‘Moroccan textile or apparel article’’ means an article that—

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(A) is listed in the Annex to the Agreement on Textiles

and Clothing referred to in section 101(d)(4) of the Uruguay

Round Agreements Act (19 U.S.C. 3511(d)(4)); and

(B) is a Moroccan article.

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

United States International Trade Commission.

Subtitle A—Relief From Imports Benefiting

From the Agreement

SEC. 311. 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 (19 U.S.C. 2252(a)).

(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical

circumstances exist shall be included in the petition.

(b) INVESTIGATION AND DETERMINATION.—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 Moroccan 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 Moroccan article 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.

(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).

(4) Subsection (i).

(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation

may be initiated under this section with respect to any Moroccan

article if, after the date on which the Agreement enters into force,

import relief has been provided with respect to that Moroccan

article under this subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

(a) DETERMINATION.—Not later than 120 days (180 days if

critical circumstances have been alleged) after the date on which

an investigation is initiated under section 311(b) with respect to

a petition, the Commission shall make the determination required

under that section.

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118 STAT. 1118 PUBLIC LAW 108–302—AUG. 17, 2004

(b) 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) (1), (2), and (3)) 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).

(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINATION AFFIRMATIVE.—If the determination made by the Commission

under subsection (a) with respect to imports of an article is affirmative, or if the President may consider a determination of the

Commission to be an affirmative determination as provided for

under paragraph (1) of section 330(d) of the Tariff Act of 1930)

(19 U.S.C. 1330(d)), the Commission shall find, and recommend

to the President in the report required under subsection (d), 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 313(c). Only those members of the Commission

who voted in the affirmative under subsection (a) are eligible to

vote on the proposed action to remedy or prevent the injury found

by the Commission. Members of the Commission who did not vote

in the affirmative may submit, in the report required under subsection (d), separate views regarding what action, if any, should

be taken to remedy or prevent the injury.

(d) REPORT TO PRESIDENT.—Not 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 includes—

(1) the determination made under subsection (a) and an

explanation of the basis for the determination;

(2) if the determination under subsection (a) is affirmative,

any findings and recommendations for import relief made under

subsection (c) and an explanation of the basis for each recommendation; and

(3) any dissenting or separate views by members of the

Commission regarding the determination and recommendation

referred to in paragraphs (1) and (2).

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

under subsection (d), 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.

SEC. 313. PROVISION OF RELIEF.

(a) IN GENERAL.—Not later than the date that is 30 days

after the date on which the President receives the report of the

Commission in which the Commission’s determination under section

312(a) is affirmative, or which contains a determination under

section 312(a) that the President considers to be affirmative under

paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C.

1330(d)(1)), the President, subject to subsection (b), shall provide

relief from imports of the article that is the subject of such determination to the extent that the President determines necessary

to remedy or prevent the injury found by the Commission and

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PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1119

to facilitate the efforts of the domestic industry to make a positive

adjustment to import competition.

(b) EXCEPTION.—The President is not required to provide import

relief under this section if the President determines that the provision of the import relief will not provide greater economic and

social benefits than costs.

(c) NATURE OF RELIEF.—

(1) IN GENERAL.—The import relief (including provisional

relief) that the President is authorized to provide under this

section with respect to imports of an article is as follows:

(A) The suspension of any further reduction provided

for under Annex IV of the Agreement in the duty imposed

on such article.

(B) An increase in the rate of duty imposed on such

article to a level that does not exceed the lesser of—

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

the HTS on like articles at the time the import relief

is provided; or

(ii) 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.

(C) In the case of a duty applied on a seasonal basis

to such article, an increase in the rate of duty imposed

on the article to a level that does not exceed the lesser

of—

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

the HTS on like articles for the immediately preceding

corresponding season; or

(ii) 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.

(2) PROGRESSIVE LIBERALIZATION.—If the period for which

import relief is provided under this section is greater than

1 year, the President shall provide for the progressive liberalization of such relief at regular intervals during the period in

which the relief is in effect.

(d) PERIOD OF RELIEF.—

(1) IN GENERAL.—Subject to paragraph (2), any import relief

that the President provides under this section may not be

in effect for more than 3 years.

(2) EXTENSION.—

(A) IN GENERAL.—Subject to subparagraph (C), the

President, after receiving an affirmative determination

from the Commission under subparagraph (B), may extend

the effective period of any import relief provided under

this section if the President determines that—

(i) the import relief continues to be necessary to

remedy or prevent serious injury and to facilitate

adjustment by the domestic industry to import competition; and

(ii) there is evidence that the industry is making

a positive adjustment to import competition.

(B) ACTION BY COMMISSION.—(i) Upon a petition on

behalf of the industry concerned that is filed with the

Commission not earlier than the date which is 9 months,

and not later than the date which is 6 months, before

Deadline.

President.

118 STAT. 1120 PUBLIC LAW 108–302—AUG. 17, 2004

the date any action taken under subsection (a) is to terminate, the Commission shall conduct an investigation to

determine whether action under this section continues to

be necessary to remedy or prevent serious injury and to

facilitate adjustment by the domestic industry to import

competition and whether there is evidence that the industry

is making a positive adjustment to import competition.

(ii) The Commission shall publish notice of the

commencement of any proceeding under this subparagraph

in the Federal Register and shall, within a reasonable

time thereafter, hold a public hearing at which the Commission shall afford interested parties and consumers an opportunity to be present, to present evidence, and to respond

to the presentations of other parties and consumers, and

otherwise to be heard.

(iii) The Commission shall transmit to the President

a report on its investigation and determination under this

subparagraph not later than 60 days before the action

under subsection (a) is to terminate, unless the President

specifies a different date.

(C) PERIOD OF IMPORT RELIEF.—Any import relief provided under this section, including any extensions thereof,

may not, in the aggregate, be in effect for more than

5 years.

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

relief under this section is terminated with respect to an article,

the rate of duty on that article shall be the rate that would have

been in effect, but for the provision of such relief, on the date

on which the relief terminates.

(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be

provided under this section on any article that—

(1) is subject to an assessment of additional duty under

section 202(b); or

(2) has been subject to import relief under this subtitle

after the date on which the Agreement enters into force.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

(a) GENERAL RULE.—Subject to subsection (b), no import relief

may be provided under this subtitle with respect to a good after

the date that is 5 years after the date on which duty-free treatment

must be provided by the United States to that good pursuant

to Annex IV of the Agreement.

(b) PRESIDENTIAL DETERMINATION.—Import relief may be provided under this subtitle in the case of a Moroccan article after

the date on which such relief would, but for this subsection, terminate under subsection (a), if the President determines that Morocco

has consented to such relief.

SEC. 315. 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 313 shall be treated as action taken under chapter 1 of

title II of such Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

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’’; and

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PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1121

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

III of the United States-Morocco Free Trade Agreement

Implementation Act’’.

Subtitle B—Textile and Apparel Safeguard

Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

(a) IN GENERAL.—A request under this subtitle for the purpose

of adjusting to the obligations of the United States under the

Agreement may be filed with the President by an interested party.

Upon the filing of a request, the President shall review the request

to determine, from information presented in the request, whether

to commence consideration of the request.

(b) PUBLICATION OF REQUEST.—If the President determines that

the request under subsection (a) provides the information necessary

for the request to be considered, the President shall cause to be

published in the Federal Register a notice of commencement of

consideration of the request, and notice seeking public comments

regarding the request. The notice shall include a summary of the

request and the dates by which comments and rebuttals must

be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

(a) DETERMINATION.—

(1) IN GENERAL.—If a positive determination is made under

section 321(b), the President shall determine whether, as a

result of the reduction or elimination of a duty under the

Agreement, a Moroccan textile or apparel article is being

imported into the United States in such increased quantities,

in absolute terms or relative to the domestic market for that

article, and under such conditions as to cause serious damage,

or actual threat thereof, to a domestic industry producing an

article that is like, or directly competitive with, the imported

article.

(2) SERIOUS DAMAGE.—In making a determination under

paragraph (1), the President—

(A) shall examine the effect of increased imports on

the domestic industry, as reflected in changes in such relevant economic factors as output, productivity, utilization

of capacity, inventories, market share, exports, wages,

employment, domestic prices, profits, and investment, none

of which is necessarily decisive; and

(B) shall not consider changes in technology or consumer preference as factors supporting a determination

of serious damage or actual threat thereof.

(b) PROVISION OF RELIEF.—

(1) IN GENERAL.—If a determination under subsection (a)

is affirmative, the President may provide relief from imports

of the article that is the subject of such determination, as

described in paragraph (2), to the extent that the President

determines necessary to remedy or prevent the serious damage

and to facilitate adjustment by the domestic industry to import

competition.

(2) NATURE OF RELIEF.—The relief that the President is

authorized to provide under this subsection with respect to

President.

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118 STAT. 1122 PUBLIC LAW 108–302—AUG. 17, 2004

imports of an article is an increase in the rate of duty imposed

on the 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.

SEC. 323. PERIOD OF RELIEF.

(a) IN GENERAL.—Subject to subsection (b), the import relief

that the President provides under subsection (b) of section 322

may not, in the aggregate, be in effect for more than 3 years.

(b) EXTENSION.— (1) IN GENERAL.—Subject to paragraph (2), the President

may extend the effective period of any import relief provided

under this subtitle for a period of not more than 2 years,

if the President determines that—

(A) the import relief continues to be necessary to

remedy or prevent serious damage and to facilitate adjustment by the domestic industry to import competition; and

(B) there is evidence that the industry is making a

positive adjustment to import competition.

(2) LIMITATION.—Any relief provided under this subtitle,

including any extensions thereof, may not, in the aggregate,

be in effect for more than 5 years.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

The President may not provide import relief under this subtitle

with respect to any article if—

(1) the article has been subject to import relief under

this subtitle after the date on which the Agreement enters

into force; or

(2) the article is subject to import relief under chapter

1 of title II of the Trade Act of 1974.

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

When import relief under this subtitle is terminated with

respect to an article, the rate of duty on that article shall be

the rate that would have been in effect, but for the provision

of such relief, on the date on which the relief terminates.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

No import relief may be provided under this subtitle with

respect to any article after the date that is 10 years after the

date on which duties on the article are eliminated pursuant to

the Agreement.

SEC. 327. 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

this subtitle shall be treated as action taken under chapter 1

of title II of such Act.

SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

The President may not release information which is submitted

in a proceeding under this subtitle and which the President considers to be confidential business information unless the party

submitting the confidential business information had notice, at

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PUBLIC LAW 108–302—AUG. 17, 2004 118 STAT. 1123

LEGISLATIVE HISTORY—H.R. 4842 (S. 2677):

HOUSE REPORTS: No. 108–627 (Comm. on Ways and Means).

CONGRESSIONAL RECORD, Vol. 150 (2004):

July 22, considered and passed House and Senate.

Æ

the time of submission, that such information would be released,

or such party subsequently consents to the release of the information. To the extent a party submits confidential business information

to the President in a proceeding under this subtitle, the party

also shall submit a nonconfidential version of the information, in

which the confidential business information is summarized or, if

necessary, deleted.

Approved August 17, 2004.