II 

112TH CONGRESS 

1ST SESSION S. 1443 

To extend certain trade preferences to certain least-developed countries in 

Asia and the South Pacific, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 28, 2011 

Mrs. FEINSTEIN introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To extend certain trade preferences to certain least-developed 

countries in Asia and the South Pacific, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Asia–South Pacific 

5 Trade Preferences Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) It is in the mutual interest of the United 

9 States and least-developed countries to promote staVerDate Mar 15 2010 05:28 Jul 29, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1443.IS S1443

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1 ble and sustainable economic growth and develop2 ment. 

3 (2) Trade and investment are powerful eco4 nomic tools and can be used to reduce poverty and 

5 raise the standard of living in a country. 

6 (3) A country that is open to trade may in7 crease its economic growth. 

8 (4) Trade and investment often lead to employ9 ment opportunities and often help alleviate poverty. 

10 (5) Least-developed countries have a particular 

11 challenge in meeting the economic requirements of 

12 and competitiveness necessary for globalization and 

13 international markets. 

14 (6) The United States has recognized the bene15 fits that international trade provides to least-devel16 oped countries by enacting the Generalized System 

17 of Preferences and trade benefits for developing 

18 countries in the Caribbean, Andean, and sub-Saha19 ran African regions of the world. 

20 (7) Enhanced trade with least-developed Mus21 lim countries, including Yemen, Afghanistan, and 

22 Bangladesh, is consistent with other United States 

23 objectives of encouraging a strong private sector and 

24 individual economic empowerment in those countries. 


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1 (8) Offering least-developed countries enhanced 

2 trade preferences will encourage both higher levels of 

3 trade and direct investment in support of positive 

4 economic and political developments throughout the 

5 world. 

6 (9) Encouraging the reciprocal reduction of 

7 trade and investment barriers will enhance the bene8 fits of trade and investment as well as enhance com9 mercial and political ties between the United States 

10 and the countries designated for benefits under this 

11 Act. 

12 (10) Economic opportunity and engagement in 

13 the global trading system together with support for 

14 democratic institutions and a respect for human 

15 rights are mutually reinforcing objectives and key 

16 elements of a policy to confront and defeat global 

17 terrorism. 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

20 (1) ASIA OR SOUTH PACIFIC COUNTRY.—The 

21 term ‘‘Asia or South Pacific country’’ means a coun22 try listed in section 4(b). 

23 (2) BENEFICIARY ASIA OR SOUTH PACIFIC

24 COUNTRY.—The term ‘‘beneficiary Asia or South 

25 Pacific country’’ means an Asia or South Pacific 


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1 country that the President has determined is eligible 

2 for preferential treatment under this Act. 

3 (3) FORMER BENEFICIARY ASIA OR SOUTH PA4 CIFIC COUNTRY.—The term ‘‘former beneficiary Asia 

5 or South Pacific country’’ means a country that, 

6 after being designated as a beneficiary Asia or South 

7 Pacific country under this Act, ceased to be des8 ignated as such a country by reason of its entering 

9 into a free trade agreement with the United States. 

10 SEC. 4. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIRE11 MENTS. 

12 (a) AUTHORITY TO DESIGNATE.— 

13 (1) IN GENERAL.—Notwithstanding any other 

14 provision of law, the President is authorized to des15 ignate an Asia or South Pacific country as a bene16 ficiary Asia or South Pacific country eligible for 

17 preferential treatment under this Act— 

18 (A) if the President determines that the 

19 country meets the requirements set forth in sec20 tion 104 of the African Growth and Oppor21 tunity Act (19 U.S.C. 3703); and 

22 (B) subject to the authority granted to the 

23 President under subsections (a), (d), and (e) of 

24 section 502 of the Trade Act of 1974 (19 

25 U.S.C. 2462), if the country otherwise meets 


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1 the eligibility criteria set forth in such section 

2 502. 

3 (2) APPLICATION OF SECTION 104.—Section 

4 104 of the African Growth and Opportunity Act 

5 shall be applied for purposes of paragraph (1) by 

6 substituting ‘‘Asia or South Pacific country’’ for 

7 ‘‘sub-Saharan African country’’ each place it ap8 pears. 

9 (b) COUNTRIES ELIGIBLE FOR DESIGNATION.—For 

10 purposes of this Act, the term ‘‘Asia or South Pacific 

11 country’’ refers to the following or their successor political 

12 entities: 

13 (1) Afghanistan. 

14 (2) Bangladesh. 

15 (3) Bhutan. 

16 (4) Cambodia. 

17 (5) Kiribati. 

18 (6) Lao People’s Democratic Republic. 

19 (7) Maldives. 

20 (8) Nepal. 

21 (9) Samoa. 

22 (10) Solomon Islands. 

23 (11) Timor-Leste (East Timor). 

24 (12) Tuvalu. 

25 (13) Vanuatu. 


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1 SEC. 5. ELIGIBLE ARTICLES. 

2 (a) IN GENERAL.—Unless otherwise excluded from 

3 eligibility (or otherwise provided for in this Act), pref4 erential treatment shall apply in accordance with sub5 sections (b), (c), and (d). 

6 (b) CERTAIN ARTICLES.— 

7 (1) IN GENERAL.—The President may provide 

8 duty-free treatment to any article described in sub9 paragraphs (B) through (G) of section 503(b)(1) of 

10 the Trade Act of 1974 (19 U.S.C. 2463(b)(1)) if— 

11 (A) the article is the growth, product, or 

12 manufacture of a beneficiary Asia or South Pa13 cific country; and 

14 (B) the President determines, after receiv15 ing the advice of the International Trade Com16 mission in accordance with section 503(e) of the 

17 Trade Act of 1974 (19 U.S.C. 2463(e)), that 

18 the article is not import-sensitive in the context 

19 of imports from beneficiary Asia or South Pa20 cific countries. 

21 (2) RULES OF ORIGIN.—The duty-free treat22 ment provided under paragraph (1) shall apply to 

23 any article described in that paragraph that meets 

24 the requirements of section 503(a)(2) of the Trade 

25 Act of 1974 (19 U.S.C. 2463(a)(2)), except that for 

26 purposes of determining if the article meets the 35- 


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1 percent requirement under subparagraph (A)(ii) of 

2 such section— 

3 (A) if the cost or value of materials pro4 duced in the customs territory of the United 

5 States is included with respect to that article, 

6 an amount not to exceed 15 percent of the ap7 praised value of the article at the time it is en8 tered that is attributed to such United States 

9 cost or value may be applied toward meeting 

10 the 35-percent requirement; and 

11 (B) the cost or value of the materials in12 cluded with respect to that article that are pro13 duced in one or more beneficiary Asia or South 

14 Pacific countries or former beneficiary Asia or 

15 South Pacific countries shall be applied toward 

16 meeting the 35-percent requirement. 

17 (c) TEXTILE AND APPAREL ARTICLES.— 

18 (1) IN GENERAL.—The preferential treatment 

19 described in subsection (a) of section 112 of the Af20 rican Growth and Opportunity Act (19 U.S.C. 

21 3721(a)) shall apply with respect to textile and ap22 parel articles described in paragraphs (1), (2), (4), 

23 (5), (7), and (8) of subsection (b) of such section 

24 and paragraphs (2) and (3) of this subsection that 

25 are imported directly into the customs territory of 


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1 the United States from a beneficiary Asia or South 

2 Pacific country except that such section 112 shall be 

3 applied and administered with respect to such arti4 cles— 

5 (A) in subsection (a), by substituting ‘‘a 

6 beneficiary Asia or South Pacific country (as 

7 defined in section 3 of the Asia–South Pacific 

8 Trade Preferences Act)’’ for ‘‘a beneficiary sub9 Saharan African country described in section 

10 506A(c) of the Trade Act of 1974’’; and 

11 (B) in paragraphs (1), (2), (4), (5), (7), 

12 and (8) of subsection (b), by substituting ‘‘ben13 eficiary Asia or South Pacific country’’ and 

14 ‘‘beneficiary Asia or South Pacific countries’’ 

15 for ‘‘beneficiary sub-Saharan African country’’ 

16 and ‘‘beneficiary sub-Saharan African coun17 tries’’, respectively, each place such terms ap18 pear. 

19 (2) TEXTILE AND APPAREL ARTICLES ASSEM20 BLED FROM REGIONAL AND OTHER FABRIC.— 

21 (A) IN GENERAL.—Textile and apparel ar22 ticles described in this paragraph are textile 

23 and apparel articles wholly assembled in one or 

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1 cific countries, or both, from fabric wholly 

2 formed in one or more beneficiary Asia or 

3 South Pacific countries or former beneficiary 

4 Asia or South Pacific countries, or both, from 

5 yarn originating either in the United States or 

6 one or more beneficiary Asia or South Pacific 

7 countries or former beneficiary Asia or South 

8 Pacific countries, or both (including fabrics not 

9 formed from yarns, if such fabrics are classifi10 able under heading 5602 or 5603 of the Har11 monized Tariff Schedule of the United States 

12 and are wholly formed and cut in the United 

13 States, in one or more beneficiary Asia or 

14 South Pacific countries or former beneficiary 

15 Asia or South Pacific countries, or any com16 bination thereof), whether or not the textile and 

17 apparel articles are also made from any of the 

18 fabrics, fabric components formed, or compo19 nents knit-to-shape described in paragraph (1) 

20 or (2) of section 112(b) of the African Growth 

21 and Opportunity Act (19 U.S.C. 3721(b)) (un22 less the apparel articles are made exclusively 

23 from any of the fabrics, fabric components 

24 formed, or components knit-to-shape described 

25 in paragraph (1) or (2) of such section 112(b)). 


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1 (B) LIMITATIONS ON BENEFITS.— 

2 (i) IN GENERAL.—Preferential treat3 ment under this subsection shall be ex4 tended in the 1-year period beginning Jan5 uary 1, 2012, and in each of the suc6 ceeding 10 1-year periods, to imports of 

7 textile and apparel articles described in 

8 subparagraph (A) in an amount not to ex9 ceed the applicable percentage of the ag10 gregate square meter equivalents of all tex11 tile and apparel articles imported into the 

12 United States in the most recent 12-month 

13 period for which data are available. 

14 (ii) APPLICABLE PERCENTAGE.—For 

15 purposes of this subparagraph, the term 

16 ‘‘applicable percentage’’ means 11 percent 

17 for the 1-year period beginning January 1, 

18 2012, increased in each of the 10 suc19 ceeding 1-year periods by equal incre20 ments, so that for the period beginning 

21 January 1, 2022, the applicable percentage 

22 does not exceed 14 percent. 

23 (3) HANDLOOMED, HANDMADE, FOLKLORE AR24 TICLES AND ETHNIC PRINTED FABRICS.— 


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1 (A) IN GENERAL.—A textile or apparel ar2 ticle described in this paragraph is a 

3 handloomed, handmade, folklore article or an 

4 ethnic printed fabric of a beneficiary Asia or 

5 South Pacific country or countries that is cer6 tified as such by the competent authority of 

7 such beneficiary country or countries. For pur8 poses of this subsection, the President, after 

9 consultation with the beneficiary Asia or South 

10 Pacific country or countries concerned, shall de11 termine which, if any, particular textile and ap12 parel goods of the country or countries shall be 

13 treated as being handloomed, handmade, or 

14 folklore articles or an ethnic printed fabric. 

15 (B) REQUIREMENTS FOR ETHNIC PRINTED

16 FABRIC.—Ethnic printed fabrics qualified under 

17 this paragraph are— 

18 (i) fabrics containing a selvedge on 

19 both edges, having a width of less than 50 

20 inches, classifiable under subheading 

21 5208.52.30 or 5208.52.40 of the Har22 monized Tariff Schedule of the United 

23 States; 


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1 (ii) of the type that contains designs, 

2 symbols, and other characteristics of Asian 

3 or South Pacific prints— 

4 (I) normally produced for and 

5 sold on the indigenous Asian or South 

6 Pacific market; and 

7 (II) normally sold in Asia or 

8 South Pacific countries by the piece 

9 as opposed to being tailored into gar10 ments before being sold in indigenous 

11 Asian or South Pacific markets; 

12 (iii) printed, including waxed, in one 

13 or more beneficiary Asia or South Pacific 

14 countries; and 

15 (iv) fabrics formed in the United 

16 States, from yarns formed in the United 

17 States, or from fabric formed in one or 

18 more beneficiary Asia or South Pacific 

19 countries from yarn originating in either 

20 the United States or one or more bene21 ficiary Asia or South Pacific countries. 

22 (4) SPECIAL RULE.— 

23 (A) IN GENERAL.—Preferential treatment 

24 under this subsection shall be extended through 

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1 ticles that are wholly assembled in one or more 

2 beneficiary Asia or South Pacific countries or 

3 former beneficiary Asia or South Pacific coun4 tries, or both, regardless of the country of ori5 gin of the yarn or fabric used to make such ar6 ticles. 

7 (B) COUNTRY LIMITATIONS.— 

8 (i) SMALL SUPPLIERS.—If, during a 

9 calendar year, imports of textile and ap10 parel articles described in subparagraph 

11 (A) from a beneficiary Asia or South Pa12 cific country are less than 1 percent of the 

13 aggregate square meter equivalents of all 

14 textile and apparel articles imported into 

15 the United States during that calendar 

16 year, such imports may be increased to an 

17 amount that is equal to not more than 1.5 

18 percent of the aggregate square meter 

19 equivalents of all textile and apparel arti20 cles imported into the United States dur21 ing that calendar year for the succeeding 

22 calendar year. 

23 (ii) OTHER SUPPLIERS.—If, during a 

24 calendar year, imports of textile and ap25 parel articles described in subparagraph 


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1 (A) from a beneficiary Asia or South Pa2 cific country are at least 1 percent of the 

3 aggregate square meter equivalents of all 

4 textile and apparel articles imported into 

5 the United States during that calendar 

6 year, such imports may be increased by an 

amount that is equal to not more than 1 7 ⁄3

8 of 1 percent of the aggregate square meter 

9 equivalents of all textile and apparel arti10 cles imported into the United States dur11 ing that calendar year for the succeeding 

12 calendar year. 

13 (iii) AGGREGATE COUNTRY LIMIT.—In 

14 no case may the aggregate quantity of tex15 tile and apparel articles described in sub16 paragraph (A) imported into the United 

17 States during a calendar year under this 

18 subsection exceed the applicable percentage 

19 set forth in paragraph (2)(B)(ii) for that 

20 calendar year. 

21 (d) OTHER RESTRICTIONS.—The provisions of sub22 sections (b)(3)(B) and (e) of section 112 and section 113 

23 of the African Growth and Opportunity Act (19 U.S.C. 

24 3721 and 3722) shall apply with respect to the pref25 erential treatment extended under this section to a beneVerDate Mar 15 2010 05:28 Jul 29, 2011 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1443.IS S1443

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1 ficiary Asia or South Pacific country by substituting ‘‘ben2 eficiary Asia or South Pacific country’’ for ‘‘beneficiary 

3 sub-Saharan African country’’ and ‘‘beneficiary Asia or 

4 South Pacific countries’’ and ‘‘former beneficiary Asia or 

5 South Pacific countries’’ for ‘‘beneficiary sub-Saharan Af6 rican countries’’ and ‘‘former sub-Saharan African coun7 tries’’, respectively, as appropriate. 

8 (e) TECHNICAL AMENDMENT.—Section 

9 6002(a)(2)(B) of the Africa Investment Incentive Act of 

10 2006 (Public Law 109–432) is amended by inserting be11 fore ‘‘by striking’’ the following: ‘‘in paragraph (3),’’. 

12 SEC. 6. REPORTING REQUIREMENT. 

13 The President shall monitor, review, and report to 

14 Congress, not later than 1 year after the date of the enact15 ment of this Act, and annually thereafter, on the imple16 mentation of this Act and on the trade and investment 

17 policy of the United States with respect to the Asia or 

18 South Pacific countries. 

19 SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT. 

20 No duty-free treatment or other preferential treat21 ment extended to a beneficiary Asia or South Pacific coun22 try under this Act shall remain in effect after December 

23 31, 2022. 


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1 SEC. 8. EFFECTIVE DATE. 

2 The provisions of this Act shall take effect on Janu3 ary 1, 2012. 

Æ 


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