II 

109TH CONGRESS 

1ST SESSION S. 1937 

To expand certain preferential trade treatment for Haiti. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 27, 2005 

Mr. DEWINE (for himself, Mr. NELSON of Florida, Mr. LUGAR, Mr. BIDEN, 

Mr. COLEMAN, Mr. DODD, Mr. HAGEL, Mr. DURBIN, Mr. MCCAIN, Mr. 

LIEBERMAN, Mr. MARTINEZ, Mr. BINGAMAN, Mr. SUNUNU, Mr. JEFFORDS, Mr. LAUTENBERG, Mr. CHAFEE, Mr. VOINOVICH, and Mr. 

SMITH) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To expand certain preferential trade treatment for Haiti. 

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 ‘‘Haiti Economic Recov5 ery Opportunity Act’’. 

6 SEC. 2. TRADE BENEFITS TO HAITI. 

7 (a) IN GENERAL.—The Caribbean Basin Economic 

8 Recovery Act (19 U.S.C. 2701 et seq.) is amended by in9 serting after section 213 the following new section: 
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1 ‘‘SEC. 213A. SPECIAL RULE FOR HAITI. 

2 ‘‘(a) IN GENERAL.—In addition to any other pref3 erential treatment under this Act, beginning on October 

4 1, 2004, and in each of the 7 succeeding 1-year periods, 

5 apparel articles described in subsection (b) that are im6 ported directly into the customs territory of the United 

7 States from Haiti shall enter the United States free of 

8 duty, subject to the limitations described in subsections 

9 (b) and (c), if Haiti has satisfied the requirements and 

10 conditions set forth in subsections (d) and (e). 

11 ‘‘(b) APPAREL ARTICLES DESCRIBED.—Apparel arti12 cles described in this subsection are apparel articles that 

13 are wholly assembled or knit-to-shape in Haiti from any 

14 combination of fabrics, fabric components, components 

15 knit-to-shape, and yarns without regard to the country of 

16 origin of the fabrics, components, or yarns. 

17 ‘‘(c) PREFERENTIAL TREATMENT.—The preferential 

18 treatment described in subsection (a), shall be extended— 

19 ‘‘(1) during the 12-month period beginning on 

20 October 1, 2004, to a quantity of apparel articles 

21 that is equal to 1.5 percent of the aggregate square 

22 meter equivalents of all apparel articles imported 

23 into the United States during the 12-month period 

24 beginning October 1, 2003; and 
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1 ‘‘(2) during the 12-month period beginning on 

2 October 1 of each succeeding year, to a quantity of 

3 apparel articles that is equal to the product of— 

4 ‘‘(A) the percentage applicable during the 

5 previous 12-month period plus 0.5 percent (but 

6 not over 3.5 percent); and 

7 ‘‘(B) the aggregate square meter equiva8 lents of all apparel articles imported into the 

9 United States during the 12-month period that 

10 ends on September 30 of that year. 

11 ‘‘(d) ELIGIBILITY REQUIREMENTS.—Haiti shall be 

12 eligible for preferential treatment under this section if the 

13 President determines and certifies to Congress that Haiti 

14 is meeting the conditions of subsection (e) and that 

15 Haiti— 

16 ‘‘(1) has established, or is making continual 

17 progress toward establishing— 

18 ‘‘(A) a market-based economy that protects 

19 private property rights, incorporates an open 

20 rules-based trading system, and minimizes gov21 ernment interference in the economy through 

22 measures such as price controls, subsidies, and 

23 government ownership of economic assets; 
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1 ‘‘(B) the rule of law, political pluralism, 

2 and the right to due process, a fair trial, and 

3 equal protection under the law; 

4 ‘‘(C) the elimination of barriers to United 

5 States trade and investment, including by— 

6 ‘‘(i) the provision of national treat7 ment and measures to create an environ8 ment conducive to domestic and foreign in9 vestment; 

10 ‘‘(ii) the protection of intellectual 

11 property; and 

12 ‘‘(iii) the resolution of bilateral trade 

13 and investment disputes; 

14 ‘‘(D) economic policies to reduce poverty, 

15 increase the availability of health care and edu16 cational opportunities, expand physical infra17 structure, promote the development of private 

18 enterprise, and encourage the formation of cap19 ital markets through microcredit or other pro20 grams; 

21 ‘‘(E) a system to combat corruption and 

22 bribery, such as signing and implementing the 

23 Convention on Combating Bribery of Foreign 

24 Public Officials in International Business 

25 Transactions; and 
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1 ‘‘(F) protection of internationally recog2 nized worker rights, including the right of asso3 ciation, the right to organize and bargain collec4 tively, a prohibition on the use of any form of 

5 forced or compulsory labor, a minimum age for 

6 the employment of children, and acceptable con7 ditions of work with respect to minimum wages, 

8 hours of work, and occupational safety and 

9 health; 

10 ‘‘(2) does not engage in activities that under11 mine United States national security or foreign pol12 icy interests; and 

13 ‘‘(3) does not engage in gross violations of 

14 internationally recognized human rights or provide 

15 support for acts of international terrorism and co16 operates in international efforts to eliminate human 

17 rights violations and terrorist activities. 

18 ‘‘(e) CONDITIONS REGARDING ENFORCEMENT OF

19 CIRCUMVENTION.— 

20 ‘‘(1) IN GENERAL.—The preferential treatment 

21 under subsection (b) shall not apply unless the 

22 President certifies to Congress that Haiti is meeting 

23 the following conditions: 

24 ‘‘(A) Haiti has adopted an effective visa 

25 system, domestic laws, and enforcement proce-
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1 dures applicable to articles described in sub2 section (b) to prevent unlawful transshipment 

3 of the articles and the use of counterfeit docu4 ments relating to the importation of the articles 

5 into the United States. 

6 ‘‘(B) Haiti has enacted legislation or pro7 mulgated regulations that would permit the Bu8 reau of Customs and Border Protection 

9 verification teams to have the access necessary 

10 to investigate thoroughly allegations of trans11 shipment through such country. 

12 ‘‘(C) Haiti agrees to report, on a timely 

13 basis, at the request of the Bureau of Customs 

14 and Border Protection, on the total exports 

15 from and imports into that country of articles 

16 described in subsection (b), consistent with the 

17 manner in which the records are kept by Haiti. 

18 ‘‘(D) Haiti agrees to cooperate fully with 

19 the United States to address and take action 

20 necessary to prevent circumvention. 

21 ‘‘(E) Haiti agrees to require all producers 

22 and exporters of articles described in subsection 

23 (b) in that country to maintain complete 

24 records of the production and the export of the 

25 articles, including materials used in the produc-
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1 tion, for at least 2 years after the production or 

2 export (as the case may be). 

3 ‘‘(F) Haiti agrees to report, on a timely 

4 basis, at the request of the Bureau of Customs 

5 and Border Protection, documentation estab6 lishing the country of origin of articles de7 scribed in subsection (b) as used by that coun8 try in implementing an effective visa system. 

9 ‘‘(2) DEFINITIONS.—In this subsection: 

10 ‘‘(A) CIRCUMVENTION.—The term ‘cir11 cumvention’ means any action involving the 

12 provision of a false declaration or false informa13 tion for the purpose of, or with the effect of, 

14 violating or evading existing customs, country 

15 of origin labeling, or trade laws of the United 

16 States or Haiti relating to imports of textile 

17 and apparel goods, if such action results— 

18 ‘‘(i) in the avoidance of tariffs, 

19 quotas, embargoes, prohibitions, restric20 tions, trade remedies, including anti21 dumping or countervailing duties, or safe22 guard measures; or 

23 ‘‘(ii) in obtaining preferential tariff 

24 treatment. 
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1 ‘‘(B) TRANSSHIPMENT.—The term ‘trans2 shipment’ has the meaning given such term 

3 under section 213(b)(2)(D)(iii).’’. 

4 (b) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—The amendment made by 

6 subsection (a) applies with respect to goods entered, 

7 or withdrawn from warehouse for consumption, on 

8 or after October 1, 2004. 

9 (2) RETROACTIVE APPLICATION TO CERTAIN

10 ENTRIES.—Notwithstanding section 514 of the Tar11 iff Act of 1930 (19 U.S.C. 1514) or any other provi12 sion of law, upon proper request filed with the 

13 United States Customs Service before the 90th day 

14 after the date of the enactment of this Act, any 

15 entry or withdrawal from warehouse for consump16 tion, of any goods described in the amendment made 

17 by subsection (a)— 

18 (A) that was made on or after October 1, 

19 2004, and before the date of the enactment of 

20 this Act, and 

21 (B) with respect to which there would have 

22 been no duty if the amendment made by sub23 section (a) applied to such entry or withdrawal, 

24 shall be liquidated or reliquidated as though 
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1 such amendment applied to such entry or with2 drawal. 

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