I 

111TH CONGRESS 

1ST SESSION H. R. 1318 

To provide duty-free treatment for certain goods from designated Reconstruction Opportunity Zones in Afghanistan and Pakistan, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 4, 2009 

Mr. VAN HOLLEN (for himself, Mr. HOEKSTRA, Mr. LEVIN, Mr. KIRK, Mr. 

BURTON of Indiana, Mr. SMITH of Washington, Mr. CROWLEY, Mr. 

MORAN of Virginia, Mr. ACKERMAN, Mr. WELCH, and Ms. JACKSON-LEE

of Texas) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide duty-free treatment for certain goods from designated Reconstruction Opportunity Zones in Afghanistan and Pakistan, 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 ‘‘Afghanistan-Pakistan 

5 Security and Prosperity Enhancement Act’’. 

6 SEC. 2. DEFINITIONS; PURPOSES. 

7 (a) DEFINITIONS.—In this Act: 


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1 (1) AGREEMENT ON TEXTILES AND CLOTH2 ING.—The term ‘‘Agreement on Textiles and Cloth3 ing’’ means the Agreement on Textiles and Clothing 

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

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

6 (2) CATEGORY; TEXTILE AND APPAREL CAT7 EGORY NUMBER.—The terms ‘‘category’’ and ‘‘tex8 tile and apparel category number’’ mean the number 

9 assigned under the U.S. Textile and Apparel Cat10 egory System of the Office of Textiles and Apparel 

11 of the Department of Commerce, as listed in the 

12 HTS under the applicable heading or subheading (as 

13 in effect on September 1, 2007). 

14 (3) CORE LABOR STANDARDS.—The term ‘‘core 

15 labor standards’’ means— 

16 (A) freedom of association; 

17 (B) the effective recognition of the right to 

18 bargain collectively; 

19 (C) the elimination of all forms of compul20 sory or forced labor; 

21 (D) the effective abolition of child labor 

22 and a prohibition on the worst forms of child 

23 labor; and 

24 (E) the elimination of discrimination in re25 spect of employment and occupation. 


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1 (4) ENTERED.—The term ‘‘entered’’ means en2 tered, or withdrawn from warehouse for consump3 tion, in the customs territory of the United States. 

4 (5) ENTITY.—The term ‘‘entity’’ means— 

5 (A) a natural person, corporation, com6 pany, business association, partnership, society, 

7 trust, any other nongovernmental entity, orga8 nization, or group, whether or not for profit; 

9 (B) any governmental entity or instrumen10 tality of a government; and 

11 (C) any successor, subunit, or subsidiary of 

12 any entity described in subparagraph (A) or 

13 (B). 

14 (6) HTS.—The term ‘‘HTS’’ means the Har15 monized Tariff Schedule of the United States. 

16 (7) NAFTA.—The term ‘‘NAFTA’’ means the 

17 North American Free Trade Agreement concluded 

18 between the United States, Mexico, and Canada on 

19 December 17, 1992. 

20 (8) RECONSTRUCTION OPPORTUNITY ZONE.— 

21 The term ‘‘Reconstruction Opportunity Zone’’ means 

22 any area that— 

23 (A) solely encompasses portions of the ter24 ritory of— 

25 (i) Afghanistan; or 


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1 (ii) 1 or more of the following areas of 

2 Pakistan: 

3 (I) the Federally Administered 

4 Tribal Areas; 

5 (II) areas of Pakistan-adminis6 tered Kashmir that the President de7 termines were harmed by the earth8 quake of October 8, 2005; 

9 (III) areas of Baluchistan that 

10 are within 100 miles of Pakistan’s 

11 border with Afghanistan; and 

12 (IV) the North West Frontier 

13 Province; 

14 (B) has been designated by the competent 

15 authorities in Afghanistan or Pakistan, as the 

16 case may be, as an area in which merchandise 

17 may be introduced without payment of duty or 

18 excise tax; and 

19 (C) has been designated by the President 

20 as a Reconstruction Opportunity Zone pursuant 

21 to section 3(a). 

22 (b) PURPOSES.—The purposes of this Act are— 

23 (1) to stimulate economic activity and develop24 ment in Afghanistan and the border region of PakiVerDate Nov 24 2008 06:40 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1318.IH H1318

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1 stan, critical fronts in the struggle against violent 

2 extremism; 

3 (2) to reflect the strong support that the 

4 United States has pledged to Afghanistan and Paki5 stan for their sustained commitment in the global 

6 war on terrorism; 

7 (3) to support the 3-pronged United States 

8 strategy in Afghanistan and the border region of 

9 Pakistan that leverages political, military, and eco10 nomic tools, with Reconstruction Opportunity Zones 

11 as a critical part of the economic component of that 

12 strategy; and 

13 (4) to offer a vital opportunity to improve liveli14 hoods of indigenous populations of Reconstruction 

15 Opportunity Zones, promote good governance, im16 prove economic and commercial ties between the 

17 people of Afghanistan and Pakistan, and extend and 

18 strengthen the Governments of Afghanistan and 

19 Pakistan. 

20 SEC. 3. DESIGNATION OF RECONSTRUCTION OPPORTUNITY 

21 ZONES. 

22 (a) AUTHORITY TO DESIGNATE.—The President is 

23 authorized to designate an area within Afghanistan or 

24 Pakistan described in section 2(a)(8) (A) and (B) as a 


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1 Reconstruction Opportunity Zone if the President deter2 mines that— 

3 (1) Afghanistan or Pakistan, as the case may 

4 be, meets the eligibility criteria set forth in sub5 section (b); 

6 (2) Afghanistan or Pakistan, as the case may 

7 be, meets the eligibility criteria set forth in sub8 section (c) of section 502 of the Trade Act of 1974 

9 (19 U.S.C. 2462(c)) for designation as a beneficiary 

10 developing country under that section and is not in11 eligible under subsection (b) of such section; and 

12 (3) designation of the area as a Reconstruction 

13 Opportunity Zone is appropriate taking into account 

14 the factors listed in subsection (c). 

15 (b) ELIGIBILITY CRITERIA.—Afghanistan or Paki16 stan, as the case may be, meets the eligibility criteria set 

17 forth in this subsection if that country— 

18 (1) has established, or is making continual 

19 progress toward establishing— 

20 (A) a market-based economy that protects 

21 private property rights, incorporates an open 

22 rules-based trading system, and minimizes gov23 ernment interference in the economy through 

24 measures such as price controls, subsidies, and 

25 government ownership of economic assets; 


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1 (B) the rule of law, political pluralism, and 

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

3 protection under the law; 

4 (C) economic policies to— 

5 (i) reduce poverty; 

6 (ii) increase the availability of health 

7 care and educational opportunities; 

8 (iii) expand physical infrastructure; 

9 (iv) promote the development of pri10 vate enterprise; and 

11 (v) encourage the formation of capital 

12 markets through microcredit or other pro13 grams; 

14 (D) a system to combat corruption and 

15 bribery, such as ratifying and implementing the 

16 United Nations Convention Against Corruption; 

17 and 

18 (E) protection of core labor standards; 

19 (2) is eliminating or has eliminated barriers to 

20 trade and investment, including by— 

21 (A) providing national treatment and 

22 measures to create an environment conducive to 

23 domestic and foreign investment; 

24 (B) protecting intellectual property; and 


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1 (C) resolving bilateral trade and invest2 ment disputes; 

3 (3) does not engage in activities that undermine 

4 United States national security or foreign policy in5 terests; 

6 (4) does not engage in gross violations of inter7 nationally recognized human rights; 

8 (5) does not provide support for acts of inter9 national terrorism; and 

10 (6) cooperates in international efforts to elimi11 nate human rights violations and terrorist activities. 

12 (c) ADDITIONAL FACTORS.—In determining whether 

13 to designate an area in Afghanistan or Pakistan as a Re14 construction Opportunity Zone, the President shall take 

15 into account— 

16 (1) an expression by the government of the 

17 country of its desire to have a particular area des18 ignated as a Reconstruction Opportunity Zone under 

19 this Act; 

20 (2) whether the government of the country has 

21 provided the United States with a monitoring and 

22 enforcement plan outlining specific steps the country 

23 will take to cooperate with the United States to— 

24 (A) facilitate legitimate cross-border com25 merce; 


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1 (B) ensure that articles for which duty-free 

2 treatment is sought pursuant to this Act satisfy 

3 the applicable rules of origin described in sec4 tion 4 (c) and (d) or section 5 (c) and (d), 

5 whichever is applicable; and 

6 (C) prevent unlawful transshipment, as de7 scribed in section 6(b)(4). 

8 (3) the potential for such designation to create 

9 local employment and to promote local and regional 

10 economic development; 

11 (4) the physical security of the proposed Recon12 struction Opportunity Zone; 

13 (5) the economic viability of the proposed Re14 construction Opportunity Zone, including— 

15 (A) whether there are commitments to fi16 nance economic activity proposed for the Recon17 struction Opportunity Zone; and 

18 (B) whether there is existing or planned 

19 infrastructure for power, water, transportation, 

20 and communications in the area; 

21 (6) whether such designation would be compat22 ible with and contribute to the foreign policy and na23 tional security objectives of the United States, tak24 ing into account the information provided under sub25 section (d); and 


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1 (7) the views of interested persons submitted 

2 pursuant to subsection (e). 

3 (d) INFORMATION RELATING TO COMPATIBILITY

4 WITH AND CONTRIBUTION TO FOREIGN POLICY AND NA5 TIONAL SECURITY OBJECTIVES OF THE UNITED

6 STATES.—In determining whether designation of a Recon7 struction Opportunity Zone would be compatible with and 

8 contribute to the foreign policy and national security ob9 jectives of the United States in accordance with subsection 

10 (c)(6), the President shall take into account whether Af11 ghanistan or Pakistan, as the case may be, has provided 

12 the United States with a plan outlining specific steps it 

13 will take to verify the ownership and nature of the activi14 ties of entities to be located in the proposed Reconstruc15 tion Opportunity Zone. The specific steps outlined in a 

16 country’s plan shall include a mechanism to annually reg17 ister each entity by a competent authority of the country 

18 and— 

19 (1) to collect from each entity operating in, or 

20 proposing to operate in, a Reconstruction Oppor21 tunity Zone, information including— 

22 (A) the name and address of the entity; 

23 (B) the name and location of all facilities 

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1 ating in or proposed to be operating in a Recon2 struction Opportunity Zone; 

3 (C) the name, nationality, date and place 

4 of birth, and position title of each person who 

5 is an owner, director, or officer of the entity; 

6 and 

7 (D) the nature of the activities of each en8 tity; 

9 (2) to update the information required under 

10 paragraph (1) as changes occur; and 

11 (3) to provide such information promptly to the 

12 Secretary of State. 

13 (e) OPPORTUNITY FOR PUBLIC COMMENT.—Before 

14 the President designates an area as a Reconstruction Op15 portunity Zone pursuant to subsection (a), the President 

16 shall afford an opportunity for interested persons to sub17 mit their views concerning the designation. 

18 (f) NOTIFICATION TO CONGRESS.—Before the Presi19 dent designates an area as a Reconstruction Opportunity 

20 Zone pursuant to subsection (a), the President shall notify 

21 Congress of the President’s intention to make the designa22 tion, together with the reasons for making the designation. 


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1 SEC. 4. DUTY-FREE TREATMENT FOR CERTAIN NONTEX2 TILE AND NONAPPAREL ARTICLES. 

3 (a) IN GENERAL.—The President is authorized to 

4 proclaim duty-free treatment for— 

5 (1) any article from a Reconstruction Oppor6 tunity Zone that the President has designated as an 

7 eligible article under section 503(a)(1)(A) of the 

8 Trade Act of 1974 (19 U.S.C. 2463(a)(1)(A)); 

9 (2) any article from a Reconstruction Oppor10 tunity Zone located in Afghanistan that the Presi11 dent has designated as an eligible article under sec12 tion 503(a)(1)(B) of the Trade Act of 1974 (19 

13 U.S.C. 2463(a)(1)(B)); or 

14 (3) any article from a Reconstruction Oppor15 tunity Zone that is not a textile or apparel article, 

16 regardless of whether the article has been designated 

17 as an eligible article under section 503(a)(1)(A) or 

18 (B) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1) 

19 (A) or (B)), if, after receiving the advice of the 

20 International Trade Commission pursuant to sub21 section (b), the President determines that such arti22 cle is not import-sensitive in the context of imports 

23 from a Reconstruction Opportunity Zone. 

24 (b) ADVICE CONCERNING CERTAIN ELIGIBLE ARTI25 CLES.—Before proclaiming duty-free treatment for an ar26 ticle pursuant to subsection (a)(3), the President shall 


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1 publish in the Federal Register and provide the Inter2 national Trade Commission a list of articles which may 

3 be considered for such treatment. The provisions of sec4 tions 131 through 134 of the Trade Act of 1974 (19 

5 U.S.C. 2151 through 2154) shall apply to any designation 

6 under subsection (a)(3) in the same manner as such sec7 tions apply to action taken under section 123 of the Trade 

8 Act of 1974 (19 U.S.C. 2133) regarding a proposed trade 

9 agreement. 

10 (c) GENERAL RULES OF ORIGIN.— 

11 (1) IN GENERAL.—The duty-free treatment 

12 proclaimed with respect to an article described in 

13 paragraph (1) or (3) of subsection (a) shall apply to 

14 any article subject to such proclamation which is the 

15 growth, product, or manufacture of 1 or more Re16 construction Opportunity Zones if— 

17 (A) that article is imported directly from a 

18 Reconstruction Opportunity Zone into the cus19 toms territory of the United States; and 

20 (B)(i) with respect to an article that is an 

21 article of a Reconstruction Opportunity Zone in 

22 Pakistan, the sum of— 

23 (I) the cost or value of the materials 

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1 portunity Zones in Pakistan or Afghani2 stan, 

3 (II) the direct costs of processing op4 erations performed in 1 or more Recon5 struction Opportunity Zones in Pakistan or 

6 Afghanistan, and 

7 (III) the cost or value of materials 

8 produced in the United States, determined 

9 in accordance with paragraph (2), 

10 is not less than 35 percent of the appraised 

11 value of the article at the time it is entered into 

12 the United States; or 

13 (ii) with respect to an article that is an ar14 ticle of a Reconstruction Opportunity Zone in 

15 Afghanistan, the sum of— 

16 (I) the cost or value of the materials 

17 produced in 1 or more Reconstruction Op18 portunity Zones in Pakistan or Afghani19 stan, 

20 (II) the cost or value of the materials 

21 produced in 1 or more countries that are 

22 members of the South Asian Association 

23 for Regional Cooperation, 

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1 struction Opportunity Zones in Pakistan or 

2 Afghanistan, and 

3 (IV) the cost or value of materials 

4 produced in the United States, determined 

5 in accordance with paragraph (2), 

6 is not less than 35 percent of the appraised 

7 value of the article at the time it is entered into 

8 the United States. 

9 (2) DETERMINATION OF 35 PERCENT FOR ARTI10 CLES FROM RECONSTRUCTION OPPORTUNITY ZONES

11 IN PAKISTAN AND AFGHANISTAN.—If the cost or 

12 value of materials produced in the customs territory 

13 of the United States is included with respect to an 

14 article described in paragraph (1)(B), for purposes 

15 of determining the 35-percent appraised value re16 quirement under clause (i) or (ii) of paragraph 

17 (1)(B), not more than 15 percent of the appraised 

18 value of the article at the time the article is entered 

19 into the United States may be attributable to the 

20 cost or value of such United States materials. 

21 (d) RULES OF ORIGIN FOR CERTAIN ARTICLES OF

22 RECONSTRUCTION OPPORTUNITY ZONES IN AFGHANI23 STAN.— 

24 (1) IN GENERAL.—The duty-free treatment 

25 proclaimed with respect to an article described in 


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1 paragraph (2) of subsection (a) shall apply to any 

2 article subject to such proclamation which is the 

3 growth, product, or manufacture of 1 or more Re4 construction Opportunity Zones in Afghanistan if— 

5 (A) that article is imported directly from a 

6 Reconstruction Opportunity Zone in Afghani7 stan into the customs territory of the United 

8 States; and 

9 (B) with respect to that article, the sum 

10 of— 

11 (i) the cost or value of the materials 

12 produced in 1 or more Reconstruction Op13 portunity Zones in Afghanistan, 

14 (ii) the cost or value of the materials 

15 produced in 1 or more countries that are 

16 members of the South Asian Association 

17 for Regional Cooperation, 

18 (iii) the direct costs of processing op19 erations performed in 1 or more Recon20 struction Opportunity Zones in Afghani21 stan, and 

22 (iv) the cost or value of materials pro23 duced in the United States, determined in 

24 accordance with paragraph (2), 


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1 is not less than 35 percent of the appraised 

2 value of the product at the time it is entered 

3 into the United States. 

4 (2) DETERMINATION OF 35 PERCENT FOR ARTI5 CLES FROM RECONSTRUCTION OPPORTUNITY ZONES

6 IN PAKISTAN AND AFGHANISTAN.—If the cost or 

7 value of materials produced in the customs territory 

8 of the United States is included with respect to an 

9 article described in paragraph (1)(B), for purposes 

10 of determining the 35-percent appraised value re11 quirement under paragraph (1)(B), not more than 

12 15 percent of the appraised value of the article at 

13 the time the article is entered into the United States 

14 may be attributable to the cost or value of such 

15 United States materials. 

16 (e) EXCLUSIONS.—An article shall not be treated as 

17 the growth, product, or manufacture of 1 or more Recon18 struction Opportunity Zones, and no material shall be in19 cluded for purposes of determining the 35-percent ap20 praised value requirement under subsection (c)(1) or 

21 (d)(1), by virtue of having merely undergone— 

22 (1) simple combining or packaging operations; 

23 or 


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1 (2) mere dilution with water or with another 

2 substance that does not materially alter the charac3 teristics of the article or material. 

4 (f) DIRECT COSTS OF PROCESSING OPERATIONS.— 

5 (1) IN GENERAL.—As used in subsections 

6 (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), 

7 the term ‘‘direct costs of processing operations’’ in8 cludes, but is not limited to— 

9 (A) all actual labor costs involved in the 

10 growth, production, manufacture, or assembly 

11 of the article, including— 

12 (i) fringe benefits; 

13 (ii) on-the-job training; and 

14 (iii) costs of engineering, supervisory, 

15 quality control, and similar personnel; and 

16 (B) dies, molds, tooling, and depreciation 

17 on machinery and equipment which are allo18 cable to the article. 

19 (2) EXCLUDED COSTS.—As used in subsections 

20 (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), 

21 the term ‘‘direct costs of processing operations’’ does 

22 not include costs which are not directly attributable 

23 to the article or are not costs of manufacturing the 

24 article, such as— 

25 (A) profit; and 


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1 (B) general expenses of doing business 

2 which are either not allocable to the article or 

3 are not related to the growth, production, man4 ufacture, or assembly of the article, such as ad5 ministrative salaries, casualty and liability in6 surance, advertising, and salesmen’s salaries, 

7 commissions, or expenses. 

8 (g) REGULATIONS.—The Secretary of the Treasury, 

9 after consultation with the United States Trade Rep10 resentative, shall prescribe such regulations as may be 

11 necessary to carry out this section. The regulations may 

12 provide that, in order for an article to be eligible for duty13 free treatment under this section, the article— 

14 (1) shall be wholly the growth, product, or man15 ufacture of 1 or more Reconstruction Opportunity 

16 Zones; or 

17 (2) shall be a new or different article of com18 merce which has been grown, produced, or manufac19 tured in 1 or more Reconstruction Opportunity 

20 Zones. 

21 SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE 

22 AND APPAREL ARTICLES. 

23 (a) DUTY-FREE TREATMENT.—The President is au24 thorized to proclaim duty-free treatment for any textile or 

25 apparel article described in subsection (b), if— 


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1 (1) the article is a covered article described in 

2 subsection (b); and 

3 (2) the President determines that the country 

4 in which the Reconstruction Opportunity Zone is lo5 cated has satisfied the requirements set forth in sec6 tion 6. 

7 (b) COVERED ARTICLES.—A covered article described 

8 in this subsection is an article in 1 of the following cat9 egories: 

10 (1) ARTICLES OF RECONSTRUCTION OPPOR11 TUNITY ZONES.—An article that is the product of 1 

12 or more Reconstruction Opportunity Zones and falls 

13 within the scope of 1 of the following textile and ap14 parel category numbers, as set forth in the HTS (as 

15 in effect on September 1, 2007): 

237 ................................. 641 ................................ 751 

330 ................................. 642 ................................ 752 

331 ................................. 643 ................................ 758 

333 ................................. 644 ................................ 759 

334 ................................. 650 ................................ 831 

335 ................................ 651 ................................ 832 

336 ................................ 653 ................................ 833 

341 ................................. 654 ................................ 834 

342 ................................. 665 ................................ 835 

350 ................................. 669 ................................ 836 

351 ................................. 733 ................................ 838 

353 ................................. 734 ................................ 839 

354 ................................. 735 ................................ 840 

360 ................................. 736 ................................ 842 

361 ................................. 738 ................................ 843 

362 ................................. 739 ................................ 844 

363 ................................. 740 ................................ 845 

369 ................................. 741 ................................ 846 

465 ................................. 742 ................................ 850 

469 ................................. 743 ................................ 851 

630 ................................. 744 ................................ 852 

631 ................................. 745 ................................ 858 

633 ................................. 746 ................................ 859 

634 ................................. 747 ................................ 863 

635 ................................. 748 ................................ 899 

636 ................................. 750 


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1 (2) ARTICLES OF RECONSTRUCTION OPPOR2 TUNITY ZONES IN AFGHANISTAN.—The article is the 

3 product of 1 or more Reconstruction Opportunity 

4 Zones in Afghanistan and falls within the scope of 

5 1 of the following textile and apparel category num6 bers, as set forth in the HTS (as in effect on Sep7 tember 1, 2007): 

201 ................................. 439 ................................ 459 

414 ................................. 440 ................................ 464 

431 ................................. 442 ................................ 670 

433 ................................. 444 ................................ 800 

434 ................................. 445 ................................ 810 

435 ................................. 446 ................................ 870 

436 ................................. 448 ................................ 871 

438 

8 (3) CERTAIN OTHER TEXTILE AND APPAREL

9 ARTICLES.—The article is the product of 1 or more 

10 Reconstruction Opportunity Zones and falls within 

11 the scope of 1 of the following textile and apparel 

12 category numbers as set forth in the HTS (as in ef13 fect on September 1, 2007) and is covered by the 

14 corresponding description for such category: 

15 (A) CATEGORY 239.—An article in category 

16 239 (relating to cotton and man-made fiber ba17 bies’ garments) except for baby socks and baby 

18 booties described in subheading 6111.20.6050, 

19 6111.30.5050, or 6111.90.5050 of the HTS. 

20 (B) CATEGORY 338.—An article in category 

21 338 (relating to men’s and boys’ cotton knit 

22 shirts) if the article is a certain knit-to-shape 


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1 garment that meets the definition included in 

2 Statistical Note 6 to Chapter 61 of the HTS, 

3 and is provided for in subheading 

4 6110.20.1026, 6110.20.2067 or 6110.90.9067 

5 of the HTS. 

6 (C) CATEGORY 339.—An article in category 

7 339 (relating to women’s and girls’ cotton knit 

8 shirts and blouses) if the article is a knit-to9 shape garment that meets the definition in10 cluded in Statistical Note 6 to Chapter 61 of 

11 the HTS, and is provided for in subheading 

12 6110.20.1031, 6110.20.2077, or 6110.90.9071 

13 of the HTS. 

14 (D) CATEGORY 359.—An article in cat15 egory 359 (relating to other cotton apparel) ex16 cept swimwear provided for in subheading 

17 6112.39.0010, 6112.49.0010, 6211.11.8010, 

18 6211.11.8020, 6211.12.8010, or 6211.12.8020 

19 of the HTS. 

20 (E) CATEGORY 632.—An article in category 

21 632 (relating to man-made fiber hosiery) if the 

22 article is panty hose provided for in subheading 

23 6115.21.0020 of the HTS. 

24 (F) CATEGORY 638.—An article in category 

25 638 (relating to men’s and boys’ man-made 


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1 fiber knit shirts) if the article is a knit-to-shape 

2 garment that meets the definition included in 

3 Statistical Note 6 to Chapter 61 of the HTS, 

4 and is provided for in subheading 

5 6110.30.2051, 6110.30.3051, or 6110.90.9079 

6 of the HTS. 

7 (G) CATEGORY 639.—An article in category 

8 639 (relating to women’s and girls’ man-made 

9 fiber knit shirts and blouses) if the article is a 

10 knit-to-shape garment that meets the definition 

11 included in Statistical Note 6 to Chapter 61 of 

12 the HTS, and is provided for in subheading 

13 6110.30.2061, 6110.30.3057, or 6110.90.9081 

14 of the HTS. 

15 (H) CATEGORY 647.—An article in cat16 egory 647 (relating to men’s and boys’ man17 made fiber trousers) if the article is ski/ 

18 snowboard pants that meets the definition in19 cluded in Statistical Note 4 to Chapter 62 of 

20 the HTS, and is provided for in subheading 

21 6203.43.3510, 6210.40.5031, or 6211.20.1525 

22 of the HTS. 

23 (I) CATEGORY 648.—An article in category 

24 648 (relating to women’s and girls’ man-made 

25 fiber trousers) if the article is ski/snowboard 


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1 pants that meets the definition included in Sta2 tistical Note 4 to Chapter 62 of the HTS, and 

3 is provided for in subheading 6204.63.3010, 

4 6210.50.5031, or 6211.20.1555 of the HTS. 

5 (J) CATEGORY 659.—An article in category 

6 659 (relating to other man-made fiber apparel) 

7 except for swimwear provided for in subheading 

8 6112.31.0010, 6112.31.0020, 6112.41.0010, 

9 6112.41.0020, 6112.41.0030, 6112.41.0040, 

10 6211.11.1010, 6211.11.1020, 6211.12.1010, or 

11 6211.12.1020 of the HTS. 

12 (K) CATEGORY 666.—An article in cat13 egory 666 (relating to other man-made fiber 

14 furnishings) except for window shades and win15 dow blinds provided for in subheading 

16 6303.12.0010 or 6303.92.2030 of the HTS. 

17 (4) CERTAIN OTHER ARTICLES.—The article is 

18 the product of 1 or more Reconstruction Oppor19 tunity Zones and falls within the scope of 1 of the 

20 following statistical reporting numbers of the HTS 

21 (as in effect on September 1, 2007): 


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4202.12.8010 ................. 6210.20.3000 ................ 6304.99.1000 

4202.12.8050 ................. 6210.20.7000 ................ 6304.99.2500 

4202.22.4010 ................. 6210.30.3000 ................ 6304.99.4000 

4202.22.7000 ................. 6210.30.7000 ................ 6304.99.6030 

4202.22.8070 ................. 6210.40.3000 ................ 6306.22.9010 

4202.92.3010 ................. 6210.40.7000 ................ 6306.29.1100 

4202.92.6010 ................. 6210.50.3000 ................ 6306.29.2100 

4202.92.9010 ................. 6210.50.7000 ................ 6306.40.4100 

4202.92.9015 ................. 6211.20.0810 ................ 6306.40.4900 

5601.29.0010 ................. 6211.20.0820 ................ 6306.91.0000 

5702.39.2090 ................. 6211.32.0003 ................ 6306.99.0000 

5702.49.2000 ................. 6211.33.0003 ................ 6307.10.2030 

5702.50.5900 ................. 6211.42.0003 ................ 6307.20.0000 

5702.99.2000 ................. 6211.43.0003 ................ 6307.90.7200 

5703.90.0000 ................. 6212.10.3000 ................ 6307.90.7500 

5705.00.2090 ................. 6212.10.7000 ................ 6307.90.8500 

6108.22.1000 ................. 6212.90.0050 ................ 6307.90.8950 

6111.90.7000 ................. 6213.90.0500 ................ 6307.90.8985 

6113.00.1005 ................. 6214.10.1000 ................ 6310.90.1000 

6113.00.1010 ................. 6216.00.0800 ................ 6406.99.1580 

6113.00.1012 ................. 6216.00.1300 ................ 6501.00.6000 

6115.29.4000 ................. 6216.00.1900 ................ 6502.00.2000 

6115.30.1000 ................. 6216.00.2600 ................ 6502.00.4000 

6115.99.4000 ................. 6216.00.3100 ................ 6502.00.9060 

6116.10.0800 ................. 6216.00.3500 ................ 6504.00.3000 

6116.10.1300 ................. 6216.00.4600 ................ 6504.00.6000 

6116.10.4400 ................. 6217.10.1010 ................ 6504.00.9045 

6116.10.6500 ................. 6217.10.8500 ................ 6504.00.9075 

6116.10.9500 ................. 6301.90.0020 ................ 6505.10.0000 

6116.92.0800 ................. 6302.29.0010 ................ 6505.90.8015 

6116.93.0800 ................. 6302.39.0020 ................ 6505.90.9050 

6116.99.3500 ................. 6302.59.3010 ................ 6505.90.9076 

6117.10.4000 ................. 6302.99.1000 ................ 9404.90.2000 

6117.80.3010 ................. 6303.99.0030 ................ 9404.90.8523 

6117.80.8500 ................. 6304.19.3030 ................ 9404.90.9523 

6210.10.2000 ................. 6304.91.0060 ................ 9404.90.9570 

6210.10.7000 

1 (c) RULES OF ORIGIN FOR CERTAIN COVERED ARTI2 CLES.— 

3 (1) GENERAL RULES.—Except with respect to 

4 an article listed in paragraph (2) of subsection (b), 

5 duty-free treatment may be proclaimed for an article 

6 listed in subsection (b) only if the article is imported 

7 directly into the customs territory of the United 

8 States from a Reconstruction Opportunity Zone 

9 and— 


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1 (A) the article is wholly the growth, prod2 uct, or manufacture of 1 or more Reconstruc3 tion Opportunity Zones; 

4 (B) the article is a yarn, thread, twine, 

5 cordage, rope, cable, or braiding, and— 

6 (i) the constituent staple fibers are 

7 spun in, or 

8 (ii) the continuous filament fiber is 

9 extruded in, 

10 1 or more Reconstruction Opportunity Zones; 

11 (C) the article is a fabric, including a fab12 ric classifiable under chapter 59 of the HTS, 

13 and the constituent fibers, filaments, or yarns 

14 are woven, knitted, needled, tufted, felted, en15 tangled, or transformed by any other fabric16 making process in 1 or more Reconstruction 

17 Opportunity Zones; or 

18 (D) the article is any other textile or ap19 parel article that is cut (or knit-to-shape) and 

20 sewn or otherwise assembled in 1 or more Re21 construction Opportunity Zones from its compo22 nent pieces. 

23 (2) SPECIAL RULES.— 

24 (A) CERTAIN MADE-UP ARTICLES, TEXTILE

25 ARTICLES IN THE PIECE, AND CERTAIN OTHER


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1 TEXTILES AND TEXTILE ARTICLES.—Notwith2 standing paragraph (1)(D) and except as pro3 vided in subparagraphs (C) and (D) of this 

4 paragraph, subparagraph (A), (B), or (C) of 

5 paragraph (1), as appropriate, shall determine 

6 whether a good that is classifiable under 1 of 

7 the following headings or subheadings of the 

8 HTS shall be considered to meet the rules of 

9 origin of this subsection: 5609, 5807, 5811, 

10 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 

11 6304, 6305, 6306, 6307.10, 6307.90, 6308, 

12 and 9404.90. 

13 (B) CERTAIN KNIT-TO-SHAPE TEXTILES

14 AND TEXTILE ARTICLES.—Notwithstanding 

15 paragraph (1)(D) and except as provided in 

16 subparagraphs (C) and (D) of this paragraph, 

17 a textile or apparel article that is wholly formed 

18 on seamless knitting machines or by hand-knit19 ting in 1 or more Reconstruction Opportunity 

20 Zones shall be considered to meet the rules of 

21 origin of this subsection. 

22 (C) CERTAIN DYED AND PRINTED TEX23 TILES AND TEXTILE ARTICLES.—Notwith24 standing paragraph (1)(D), an article classifi25 able under subheading 6117.10, 6213.00, 


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1 6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 

2 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 

3 6303.99, 6304.19, 6304.93, 6304.99, 

4 9404.90.85, or 9404.90.95 of the HTS, except 

5 for an article classifiable under 1 of such sub6 headings as of cotton or of wool or consisting 

7 of fiber blends containing 16 percent or more 

8 by weight of cotton, shall be considered to meet 

9 the rules of origin of this subsection if the fab10 ric in the article is both dyed and printed in 1 

11 or more Reconstruction Opportunity Zones, and 

12 such dyeing and printing is accompanied by 2 

13 or more of the following finishing operations: 

14 bleaching, shrinking, fulling, napping, decating, 

15 permanent stiffening, weighting, permanent em16 bossing, or moireing. 

17 (D) FABRICS OF SILK, COTTON, MAN-MADE

18 FIBER, OR VEGETABLE FIBER.—Notwith19 standing paragraph (1)(C), a fabric classifiable 

20 under the HTS as of silk, cotton, man-made 

21 fiber, or vegetable fiber shall be considered to 

22 meet the rules of origin of this subsection if the 

23 fabric is both dyed and printed in 1 or more 

24 Reconstruction Opportunity Zones, and such 

25 dyeing and printing is accompanied by 2 or 


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1 more of the following finishing operations: 

2 bleaching, shrinking, fulling, napping, decating, 

3 permanent stiffening, weighting, permanent em4 bossing, or moireing. 

5 (d) RULES OF ORIGIN FOR COVERED ARTICLES

6 THAT ARE PRODUCTS OF 1 OR MORE RECONSTRUCTION

7 OPPORTUNITY ZONES IN AFGHANISTAN.— 

8 (1) GENERAL RULES.—Duty-free treatment 

9 may be proclaimed for an article listed in paragraph 

10 (2) of subsection (b) only if the article is imported 

11 directly into the customs territory of the United 

12 States from a Reconstruction Opportunity Zone in 

13 Afghanistan and— 

14 (A) the article is wholly the growth, prod15 uct, or manufacture of 1 or more Reconstruc16 tion Opportunity Zones in Afghanistan, 

17 (B) the article is a yarn, thread, twine, 

18 cordage, rope, cable, or braiding, and— 

19 (i) the constituent staple fibers are 

20 spun in, or 

21 (ii) the continuous filament fiber is 

22 extruded in, 

23 1 or more Reconstruction Opportunity Zones in 

24 Afghanistan; 


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1 (C) the article is a fabric, including a fab2 ric classifiable under chapter 59 of the HTS, 

3 and the constituent fibers, filaments, or yarns 

4 are woven, knitted, needled, tufted, felted, en5 tangled, or transformed by any other fabric6 making process in 1 or more Reconstruction 

7 Opportunity Zones in Afghanistan; or 

8 (D) the article is any other textile or ap9 parel article that is cut (or knit-to-shape) and 

10 sewn or otherwise assembled in 1 or more Re11 construction Opportunity Zones in Afghanistan 

12 from its component pieces. 

13 (2) SPECIAL RULES.— 

14 (A) CERTAIN MADE-UP ARTICLES, TEXTILE

15 ARTICLES IN THE PIECE, AND CERTAIN OTHER

16 TEXTILES AND TEXTILE ARTICLES.—Notwith17 standing paragraph (1)(D) and except as pro18 vided in subparagraphs (C) and (D) of this 

19 paragraph, subparagraph (A), (B), or (C) of 

20 paragraph (1), as appropriate, shall determine 

21 whether a good that is classifiable under 1 of 

22 the following headings or subheadings of the 

23 HTS shall be considered to meet the rules of 

24 origin of this subsection: 5609, 5807, 5811, 

25 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 


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1 6304, 6305, 6306, 6307.10, 6307.90, 6308, 

2 and 9404.90. 

3 (B) CERTAIN KNIT-TO-SHAPE TEXTILES

4 AND TEXTILE ARTICLES.—Notwithstanding 

5 paragraph (1)(D) and except as provided in 

6 subparagraphs (C) and (D) of this paragraph, 

7 a textile or apparel article that is wholly formed 

8 on seamless knitting machines or by hand-knit9 ting in 1 or more Reconstruction Opportunity 

10 Zones in Afghanistan shall be considered to 

11 meet the rules of origin of this subsection. 

12 (C) CERTAIN DYED AND PRINTED TEX13 TILES AND TEXTILE ARTICLES.—Notwith14 standing paragraph (1)(D), an article classifi15 able under subheading 6117.10, 6213.00, 

16 6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 

17 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 

18 6303.99, 6304.19, 6304.93, 6304.99, 

19 9404.90.85, or 9404.90.95 of the HTS, except 

20 for an article classifiable under 1 of such sub21 headings as of cotton or of wool or consisting 

22 of fiber blends containing 16 percent or more 

23 by weight of cotton, shall be considered to meet 

24 the rules of origin of this subsection if the fab25 ric in the article is both dyed and printed in 1 


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1 or more Reconstruction Opportunity Zones in 

2 Afghanistan, and such dyeing and printing is 

3 accompanied by 2 or more of the following fin4 ishing operations: bleaching, shrinking, fulling, 

5 napping, decating, permanent stiffening, 

6 weighting, permanent embossing, or moireing. 

7 (D) FABRICS OF SILK, COTTON, MAN-MADE

8 FIBER OR VEGETABLE FIBER.—Notwith9 standing paragraph (1)(C), a fabric classifiable 

10 under the HTS as of silk, cotton, man-made 

11 fiber, or vegetable fiber shall be considered to 

12 meet the rules of origin of this subsection if the 

13 fabric is both dyed and printed in 1 or more 

14 Reconstruction Opportunity Zones in Afghani15 stan, and such dyeing and printing is accom16 panied by 2 or more of the following finishing 

17 operations: bleaching, shrinking, fulling, nap18 ping, decating, permanent stiffening, weighting, 

19 permanent embossing, or moireing. 

20 (e) REGULATIONS.—The Secretary of the Treasury, 

21 after consultation with the United States Trade Rep22 resentative, shall prescribe such regulations as may be 

23 necessary to carry out this section. 


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1 SEC. 6. PROTECTIONS AGAINST UNLAWFUL TRANS2 SHIPMENT. 

3 (a) DUTY-FREE TREATMENT CONDITIONED ON EN4 FORCEMENT MEASURES.— 

5 (1) IN GENERAL.—The duty-free treatment de6 scribed in section 5 shall not be provided to covered 

7 articles that are imported from a Reconstruction Op8 portunity Zone in a country unless the President de9 termines that country meets the following criteria: 

10 (A) The country has adopted an effective 

11 visa or electronic certification system, domestic 

12 laws, and enforcement procedures applicable to 

13 covered articles to prevent unlawful trans14 shipment of the articles and the use of false 

15 documents relating to the importation of the ar16 ticles into the United States. 

17 (B) The country has enacted legislation or 

18 promulgated regulations that would permit U.S. 

19 Customs and Border Protection verification 

20 teams to have the access necessary to inves21 tigate thoroughly allegations of unlawful trans22 shipment through such country. 

23 (C) The country agrees to provide U.S. 

24 Customs and Border Protection with a monthly 

25 report on shipments of covered articles from 

26 each facility engaged in the production of those 


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1 articles in a Reconstruction Opportunity Zone 

2 in that country. 

3 (D) The country will cooperate fully with 

4 the United States to address and take action 

5 necessary to prevent circumvention, as de6 scribed in article 5 of the Agreement on Tex7 tiles and Clothing. 

8 (E) The country agrees to require each en9 tity engaged in the production or manufacture 

10 of a covered article in a Reconstruction Oppor11 tunity Zone in that country to register with the 

12 competent government authority, to provide 

13 that authority with the following information, 

14 and to update that information as changes 

15 occur: 

16 (i) The name and address of the enti17 ty, including the location of all textile or 

18 apparel facilities owned or operated by that 

19 entity in Afghanistan or Pakistan. 

20 (ii) The telephone number, facsimile 

21 number, and electronic mail address of the 

22 entity. 

23 (iii) The names and nationalities of 

24 the owners, directors, and corporate offi25 cers, and their positions within the entity. 


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1 (iv) The number of employees the en2 tity employs and their occupations. 

3 (v) A general description of the cov4 ered articles the entity produces and the 

5 entity’s production capacity. 

6 (vi) The number and type of machines 

7 the entity uses to produce textile or ap8 parel articles at each facility. 

9 (vii) The approximate number of 

10 hours the machines operate per week. 

11 (viii) The identity of any supplier to 

12 the entity of textile or apparel goods, or 

13 fabrics, yarns, or fibers used in the produc14 tion of textile or apparel goods. 

15 (ix) The name of, and contact infor16 mation for, each of the entity’s customers 

17 in the United States. 

18 (F) The country agrees to provide to U.S. 

19 Customs and Border Protection on a timely 

20 basis all of the information received by the com21 petent government authority in accordance with 

22 subparagraph (E) and to provide U.S. Customs 

23 and Border Protection with an annual update 

24 of that information. 


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1 (G) The country agrees to require that all 

2 producers and exporters of covered articles in a 

3 Reconstruction Opportunity Zone in that coun4 try maintain complete records of the production 

5 and the export of covered articles, including 

6 materials used in the production, for at least 5 

7 years after the production or export (as the 

8 case may be). 

9 (H) The country agrees to provide, on a 

10 timely basis, at the request of U.S. Customs 

11 and Border Protection, documentation estab12 lishing the eligibility of covered articles for 

13 duty-free treatment under section 5. 

14 (2) DOCUMENTATION ESTABLISHING ELIGI15 BILITY OF ARTICLES FOR DUTY-FREE TREAT16 MENT.—For purposes of paragraph (1)(H), docu17 mentation establishing the eligibility of a covered ar18 ticle for duty-free treatment under section 5 includes 

19 documentation such as production records, informa20 tion relating to the place of production, the number 

21 and identification of the types of machinery used in 

22 production, the number of workers employed in pro23 duction, and certification from both the manufac24 turer and the exporter. 

25 (b) CUSTOMS PROCEDURES AND ENFORCEMENT.— 


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1 (1) IN GENERAL.— 

2 (A) REGULATIONS.—The Secretary of the 

3 Treasury, after consultation with the United 

4 States Trade Representative, shall promulgate 

5 regulations setting forth customs procedures 

6 similar in all material respects to the require7 ments of article 502(1) of the NAFTA as im8 plemented pursuant to United States law, which 

9 shall apply to any importer that claims duty10 free treatment for an article under section 5. 

11 (B) DETERMINATION.—In order for arti12 cles produced in a Reconstruction Opportunity 

13 Zone to qualify for the duty-free treatment 

14 under section 5, there shall be in effect a deter15 mination by the President that Afghanistan or 

16 Pakistan, as the case may be— 

17 (i) has implemented and follows, or 

18 (ii) is making substantial progress to19 ward implementing and following, 

20 procedures and requirements similar in all ma21 terial respects to the relevant procedures and 

22 requirements under chapter 5 of the NAFTA. 

23 (2) CERTIFICATE OF ORIGIN.—A certificate of 

24 origin that otherwise would be required pursuant to 

25 the provisions of paragraph (1) shall not be required 


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1 in the case of an article imported under section 5 if 

2 such certificate of origin would not be required 

3 under article 503 of the NAFTA, as implemented 

4 pursuant to United States law, if the article were 

5 imported from Mexico. 

6 (3) PENALTIES.—If the President determines, 

7 based on sufficient evidence, that an entity has en8 gaged in unlawful transshipment described in para9 graph (4), the President shall deny for a period of 

10 5 years beginning on the date of the determination 

11 all benefits under section 5 to the entity, any suc12 cessor of the entity, and any other entity owned, op13 erated, or controlled by the principals of the entity. 

14 (4) UNLAWFUL TRANSSHIPMENT DESCRIBED.— 

15 For purposes of this section, unlawful transshipment 

16 occurs when duty-free treatment for a covered article 

17 has been claimed on the basis of material false infor18 mation concerning the country of origin, manufac19 ture, processing, or assembly of the article or any of 

20 its components. For purposes of the preceding sen21 tence, false information is material if disclosure of 

22 the true information would mean or would have 

23 meant that the article is or was ineligible for duty24 free treatment under section 5. 


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1 (5) MONITORING AND REPORTS TO CON2 GRESS.—U.S. Customs and Border Protection shall 

3 monitor and the Commissioner responsible for U.S. 

4 Customs and Border Protection shall submit to Con5 gress, not later than March 31 of each year, a report 

6 on the effectiveness of the visa or electronic certifi7 cation systems and the implementation of legislation 

8 and regulations described in subsection (a) and on 

9 measures taken by Afghanistan and Pakistan to pre10 vent circumvention as described in article 5 of the 

11 Agreement on Textile and Clothing. 

12 (c) ADDITIONAL CUSTOMS ENFORCEMENT.—U.S. 

13 Customs and Border Protection shall— 

14 (1) make available technical assistance to Af15 ghanistan and Pakistan— 

16 (A) in the development and implementation 

17 of visa or electronic certification systems, legis18 lation, and regulations described in subsection 

19 (a)(1)(A) and (B); and 

20 (B) to train their officials in anti-trans21 shipment enforcement; 

22 (2) send production verification teams to Af23 ghanistan and Pakistan as necessary; and 


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1 (3) to the extent feasible, place Afghanistan 

2 and Pakistan on the Electronic Visa (ELVIS) pro3 gram or relevant e-certification program. 

4 (d) AUTHORIZATION OF APPROPRIATIONS.—To carry 

5 out subsection (c), there are authorized to be appropriated 

6 to U.S. Customs and Border Protection $10,000,000 for 

7 each of the fiscal years 2010 through 2023. 

8 SEC. 7. TECHNICAL ASSISTANCE, CAPACITY BUILDING, 

9 COMPLIANCE ASSESSMENT, AND REMEDI10 ATION PROGRAM. 

11 (a) DEFINITIONS.—In this section: 

12 (1) APPROPRIATE CONGRESSIONAL COMMIT13 TEES.—The term ‘‘appropriate congressional com14 mittees’’ means the Committee on Finance of the 

15 Senate and the Committee on Ways and Means of 

16 the House of Representatives. 

17 (2) TEXTILE OR APPAREL EXPORTING ENTER18 PRISE.—The term ‘‘textile or apparel exporting en19 terprise’’ means a producer of textile or apparel arti20 cles that is located in a Reconstruction Opportunity 

21 Zone and is seeking or receiving any benefits under 

22 section 5. 

23 (b) ELIGIBILITY.— 

24 (1) PRESIDENTIAL CERTIFICATION OF COMPLI25 ANCE BY AFGHANISTAN OR PAKISTAN WITH REVerDate Nov 24 2008 06:40 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H1318.IH H1318

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1 QUIREMENTS.—Upon the expiration of the 16-month 

2 period beginning on the date on which the President 

3 notifies Congress of the President’s intention to des4 ignate an area within Afghanistan or Pakistan, as 

5 the case may be, as a Reconstruction Opportunity 

6 Zone under section 3, each Reconstruction Oppor7 tunity Zone in Afghanistan or Pakistan, as the case 

8 may be, shall continue to receive duty-free treatment 

9 under this Act only if the President determines and 

10 certifies to Congress that Afghanistan or Pakistan, 

11 as the case may be— 

12 (A) has implemented the requirements set 

13 forth in subsections (c) and (d); and 

14 (B) has agreed to require textile or apparel 

15 exporting enterprises to participate in the pro16 gram described in subsection (d) and has devel17 oped a system to ensure participation in such 

18 program by such enterprises, including by de19 veloping and maintaining the registry described 

20 in subsection (c)(2)(A). 

21 (2) EXTENSION.—The President may extend 

22 the period for compliance by Afghanistan or Paki23 stan under paragraph (1) if the President— 

24 (A) determines that Afghanistan or Paki25 stan, as the case may be, has made a good faith 


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1 effort toward such compliance and has agreed 

2 to take additional steps to come into full com3 pliance that are satisfactory to the President; 

4 and 

5 (B) provides to the appropriate congres6 sional committees, not later than 6 months 

7 after the last day of the 16-month period speci8 fied in paragraph (1), and every 6 months 

9 thereafter, a report identifying the steps that 

10 Afghanistan or Pakistan, as the case may be, 

11 has agreed to take to come into full compliance 

12 and the progress made over the preceding 6- 

13 month period in implementing such steps. 

14 (3) CONTINUING COMPLIANCE.— 

15 (A) TERMINATION OF PREFERENTIAL

16 TREATMENT.—If, after making a certification 

17 under paragraph (1), the President determines 

18 that Afghanistan or Pakistan is no longer meet19 ing the requirements set forth in paragraph (1), 

20 the President shall terminate the eligibility of 

21 Afghanistan or Pakistan, as the case may be, 

22 provided under section 3(b), unless the Presi23 dent determines, after consulting with the ap24 propriate congressional committees, that meet25 ing such requirements is not practicable beVerDate Nov 24 2008 06:40 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H1318.IH H1318

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1 cause of extraordinary circumstances existing in 

2 Afghanistan or Pakistan, as the case may be, 

3 when the determination is made. 

4 (B) SUBSEQUENT COMPLIANCE.—If the 

5 President, after terminating eligibility of Af6 ghanistan or Pakistan, as the case may be, 

7 under subparagraph (A), determines that Af8 ghanistan or Pakistan, as the case may be, is 

9 meeting the requirements set forth in para10 graph (1), the President shall reinstate the eli11 gibility of Afghanistan or Pakistan, as the case 

12 may be, under section 3(b). 

13 (c) LABOR OFFICIAL.— 

14 (1) IN GENERAL.—The requirement under this 

15 subsection is that Afghanistan or Pakistan, as the 

16 case may be, has designated a labor official within 

17 the national government that— 

18 (A) reports directly to the President of Af19 ghanistan or Pakistan, as the case may be; 

20 (B) is chosen by the President of Afghani21 stan or Pakistan, as the case may be, in con22 sultation with labor unions and industry asso23 ciations; and 

24 (C) is vested with the authority to perform 

25 the functions described in paragraph (2). 


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1 (2) FUNCTIONS.—The functions of the labor of2 ficial shall include— 

3 (A) developing and maintaining a registry 

4 of textile or apparel exporting enterprises, and 

5 developing, in consultation and coordination 

6 with any other appropriate officials of the Gov7 ernment of Afghanistan or Pakistan, as the 

8 case may be, a system to ensure participation 

9 by such enterprises in the program described in 

10 subsection (d); 

11 (B) overseeing the implementation of the 

12 program described in subsection (d); 

13 (C) receiving and investigating comments 

14 from any interested party regarding the condi15 tions described in subsection (d)(2) in facilities 

16 of textile or apparel exporting enterprises listed 

17 in the registry described in subparagraph (A) 

18 and, where appropriate, referring such com19 ments or the result of such investigations to the 

20 appropriate authorities of Afghanistan or Paki21 stan, as the case may be, or to the entity oper22 ating the program described in subsection (d); 

23 (D) assisting, in consultation and coordina24 tion with any other appropriate authorities Af25 ghanistan or Pakistan, as the case may be, texVerDate Nov 24 2008 06:40 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H1318.IH H1318

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1 tile or apparel exporting enterprises listed in 

2 the registry described in subparagraph (A) in 

3 meeting the conditions set forth in subsection 

4 (d)(2); and 

5 (E) coordinating, with the assistance of the 

6 entity operating the program described in sub7 section (d), a tripartite committee comprised of 

8 appropriate representatives of government agen9 cies, employers, and workers, as well as other 

10 relevant interested parties, for the purposes of 

11 evaluating progress in implementing the pro12 gram described in subsection (d), and con13 sulting on improving core labor standards and 

14 working conditions in the textile and apparel 

15 sector in Afghanistan or Pakistan, as the case 

16 may be, and on other matters of common con17 cern relating to such core labor standards and 

18 working conditions. 

19 (d) TECHNICAL ASSISTANCE, CAPACITY BUILDING, 

20 COMPLIANCE ASSESSMENT, AND REMEDIATION PRO21 GRAM.— 

22 (1) IN GENERAL.—The requirement under this 

23 subsection is that Afghanistan or Pakistan, as the 

24 case may be, in cooperation with the International 


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1 Labor Organization, has established a program 

2 meeting the requirements under paragraph (3)— 

3 (A) to assess compliance by textile or ap4 parel exporting enterprises listed in the registry 

5 described in subsection (c)(2)(A) with the con6 ditions set forth in paragraph (2) and to assist 

7 such enterprises in meeting such conditions; 

8 and 

9 (B) to provide assistance to improve the 

10 capacity of the Government of Afghanistan or 

11 Pakistan, as the case may be— 

12 (i) to inspect facilities of textile or ap13 parel exporting enterprises listed in the 

14 registry described in subsection (c)(2)(A); 

15 and 

16 (ii) to enforce national labor laws and 

17 resolve labor disputes, including through 

18 measures described in paragraph (5). 

19 (2) CONDITIONS DESCRIBED.—The conditions 

20 referred to in paragraph (1) are— 

21 (A) compliance with core labor standards; 

22 and 

23 (B) compliance with the labor laws of Af24 ghanistan or Pakistan, as the case may be, that 

25 relate directly to core labor standards and to 


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1 ensuring acceptable conditions of work with re2 spect to minimum wages, hours of work, and 

3 occupational health and safety. 

4 (3) REQUIREMENTS.—The requirements for the 

5 program are that the program— 

6 (A) be operated by the International Labor 

7 Organization (or any subdivision, instrumen8 tality, or designee thereof), which prepares the 

9 annual reports described in paragraph (4); 

10 (B) be developed through a participatory 

11 process that includes the labor official described 

12 in subsection (c) of Afghanistan or Pakistan, as 

13 the case may be, and appropriate representa14 tives of government agencies, employers, and 

15 workers; 

16 (C) assess compliance by each textile or 

17 apparel exporting enterprise listed in the reg18 istry described in subsection (c)(2)(A) with the 

19 conditions set forth in paragraph (2) and iden20 tify any deficiencies by such enterprise with re21 spect to meeting such conditions, including 

22 by— 

23 (i) conducting site visits to facilities of 

24 the enterprise; 


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1 (ii) conducting confidential interviews 

2 with workers and management of the fa3 cilities of the enterprise; and 

4 (iii) providing to management and 

5 workers, and where applicable, worker or6 ganizations in the enterprise, on a con7 fidential basis— 

8 (I) the results of the assessment 

9 carried out under this subparagraph; 

10 and 

11 (II) specific suggestions for reme12 diating any such deficiencies; 

13 (D) assist the textile or apparel exporting 

14 enterprise in remediating any deficiencies iden15 tified under subparagraph (C); 

16 (E) conduct prompt follow-up site visits to 

17 the facilities of the textile or apparel exporting 

18 enterprise to assess progress on remediation of 

19 any deficiencies identified under subparagraph 

20 (C); and 

21 (F) provide training to workers and man22 agement of the textile or apparel exporting en23 terprise, and where appropriate, to other per24 sons or entities, to promote compliance with 

25 paragraph (2). 


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1 (4) ANNUAL REPORT.—The annual reports re2 ferred to in paragraph (3)(A) are a report, by the 

3 entity operating the program, that is published (and 

4 available to the public in a readily accessible man5 ner) on an annual basis, beginning 1 year after Af6 ghanistan or Pakistan, as the case may be, has im7 plemented the program under this subsection, cov8 ering the preceding 1-year period, and that includes 

9 the following: 

10 (A) The name of each textile or apparel ex11 porting enterprise listed in the registry de12 scribed in subsection (c)(2)(A) that has been 

13 identified as having met the conditions under 

14 paragraph (2). 

15 (B) The name of each textile or apparel 

16 exporting enterprise listed in the registry de17 scribed in subsection (c)(2)(A) that has been 

18 identified as having deficiencies with respect to 

19 the conditions under paragraph (2), and has 

20 failed to remedy such deficiencies. 

21 (C) For each textile or apparel exporting 

22 enterprise listed under subparagraph (B)— 

23 (i) a description of the deficiencies 

24 found to exist and the specific suggestions 


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1 for remediating such deficiencies made by 

2 the entity operating the program; 

3 (ii) a description of the efforts by the 

4 enterprise to remediate the deficiencies, in5 cluding a description of assistance provided 

6 by any entity to assist in such remediation; 

7 and 

8 (iii) with respect to deficiencies that 

9 have not been remediated, the amount of 

10 time that has elapsed since the deficiencies 

11 were first identified in a report under this 

12 subparagraph. 

13 (D) For each textile or apparel exporting 

14 enterprise identified as having deficiencies with 

15 respect to the conditions described under para16 graph (2) in a prior report under this para17 graph, a description of the progress made in re18 mediating such deficiencies since the submission 

19 of the prior report, and an assessment of 

20 whether any aspect of such deficiencies persists. 

21 (5) CAPACITY BUILDING.—The assistance to 

22 the Government of Afghanistan or Pakistan referred 

23 to in paragraph (1)(B) shall include programs— 

24 (A) to review the labor laws and regula25 tions of Afghanistan or Pakistan, as the case 


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1 may be, and to develop and implement strate2 gies for improving labor laws and regulations; 

3 (B) to develop additional strategies for fa4 cilitating protection of core labor standards and 

5 providing acceptable conditions of work with re6 spect to minimum wages, hours of work, and 

7 occupational safety and health, including 

8 through legal, regulatory, and institutional re9 form; 

10 (C) to increase awareness of core labor 

11 standards and national labor laws; 

12 (D) to promote consultation and coopera13 tion between government representatives, em14 ployers, worker representatives, and United 

15 States importers on matters relating to core 

16 labor standards and national labor laws; 

17 (E) to assist the labor official of Afghani18 stan or Pakistan, as the case may be, des19 ignated pursuant to subsection (c) in estab20 lishing and coordinating operation of the com21 mittee described in subsection (c)(2)(E); 

22 (F) to assist worker representatives in 

23 more fully and effectively advocating on behalf 

24 of their members; and 


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1 (G) to provide on-the-job training and 

2 technical assistance to labor inspectors, judicial 

3 officers, and other relevant personnel to build 

4 their capacity to enforce national labor laws 

5 and resolve labor disputes. 

6 (e) COMPLIANCE WITH ELIGIBILITY CRITERIA.— 

7 (1) COUNTRY COMPLIANCE WITH CORE LABOR

8 STANDARDS ELIGIBILITY CRITERIA.—In making a 

9 determination of whether Afghanistan or Pakistan is 

10 meeting the requirement set forth in section 

11 3(b)(1)(E) relating to core labor standards, the 

12 President shall consider the reports produced under 

13 subsection (d)(4). 

14 (2) ENTERPRISE ELIGIBILITY.— 

15 (A) IDENTIFICATION OF PRODUCERS.—Be16 ginning 2 years after the President makes the 

17 certification under subsection (b)(1), the Presi18 dent shall identify on a biennial basis whether 

19 a textile or apparel exporting enterprise listed 

20 in the registry described in subsection (c)(2)(A) 

21 has failed to comply with core labor standards 

22 and with the labor laws of Afghanistan or Paki23 stan, as the case may be, that directly relate to 

24 and are consistent with core labor standards. 


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1 (B) ASSISTANCE TO ENTERPRISES; WITH2 DRAWAL, ETC., OF PREFERENTIAL TREAT3 MENT.—For each textile or apparel exporting 

4 enterprise that the President identifies under 

5 subparagraph (A), the President shall seek to 

6 assist such enterprise in coming into compliance 

7 with core labor standards and with the labor 

8 laws of Afghanistan or Pakistan, as the case 

9 may be, that directly relate to and are con10 sistent with core labor standards. If such ef11 forts fail, the President shall withdraw, sus12 pend, or limit the application of preferential 

13 treatment under section 5 to articles of such 

14 enterprise. 

15 (C) REINSTATING PREFERENTIAL TREAT16 MENT.—If the President, after withdrawing, 

17 suspending, or limiting the application of pref18 erential treatment under subparagraph (B) to 

19 articles of a textile or apparel exporting enter20 prise, determines that such enterprise is com21 plying with core labor standards and with the 

22 labor laws of Afghanistan or Pakistan, as the 

23 case may be, that directly relate to and are con24 sistent with core labor standards, the President 

25 shall reinstate the application of preferential 


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1 treatment under section 5 to the articles of the 

2 enterprise. 

3 (D) CONSIDERATION OF REPORTS.—In 

4 making the identification under subparagraph 

5 (A) and the determination under subparagraph 

6 (C), the President shall consider the reports 

7 made available under subsection (d)(4). 

8 (f) REPORTS BY THE PRESIDENT.— 

9 (1) IN GENERAL.—Not later than one year 

10 after the date of the enactment of this Act, and an11 nually thereafter, the President shall transmit to the 

12 appropriate congressional committees a report on 

13 the implementation of this section during the pre14 ceding 1-year period. 

15 (2) MATTERS TO BE INCLUDED.—Each report 

16 required by paragraph (1) shall include the fol17 lowing: 

18 (A) An explanation of the efforts of Af19 ghanistan and Pakistan, the President, and the 

20 International Labor Organization to carry out 

21 this section. 

22 (B) A summary of each report produced 

23 under subsection (d)(4) during the preceding 1- 

24 year period and a summary of the findings con25 tained in such report. 


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1 (C) Identifications made under subsection 

2 (e)(2)(A) and determinations made under sub3 section (e)(2)(C). 

4 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $20,000,000 for the period beginning on October 1, 2009, 

7 and ending on September 30, 2014. 

8 SEC. 8. PETITION PROCESS. 

9 Any interested party may file a request to have the 

10 status of Afghanistan or Pakistan reviewed with respect 

11 to the eligibility requirements listed in this Act, and the 

12 President shall provide for this purpose the same proce13 dures as those that are provided for reviewing the status 

14 of eligible beneficiary developing countries with respect to 

15 the designation criteria listed in subsections (b) and (c) 

16 of section 502 of the Trade Act of 1974 (19 U.S.C. 2642 

17 (b) and (c)). 

18 SEC. 9. LIMITATIONS ON PROVIDING DUTY-FREE TREAT19 MENT. 

20 (a) IN GENERAL.— 

21 (1) PROCLAMATION.—Except as provided in 

22 paragraph (2), and subject to subsection (b) and the 

23 conditions described in sections 3 through 7, the 

24 President shall exercise the President’s authority 


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1 under this Act, and the President shall proclaim any 

2 duty-free treatment pursuant to that authority. 

3 (2) WAIVER.—The President may waive the ap4 plication of duty-free treatment under this Act with 

5 respect to Reconstruction Opportunity Zones in Af6 ghanistan and Pakistan or enterprises receiving ben7 efits under section 4 or 5 if the President deter8 mines that providing such treatment is inconsistent 

9 with the national interests of the United States. In 

10 making such determination, the President shall con11 sider— 

12 (A) obligations of the United States under 

13 international agreements; 

14 (B) the national economic interests of the 

15 United States; and 

16 (C) the foreign policy interests of the 

17 United States, including the economic develop18 ment of Afghanistan and the border region of 

19 Pakistan. 

20 (b) WITHDRAWAL, SUSPENSION, OR LIMITATION OF

21 DUTY-FREE TREATMENT.—The President may withdraw, 

22 suspend, or limit the application of the duty-free treat23 ment proclaimed under this Act. In taking any action to 

24 withdraw, suspend, or limit duty-free treatment with re25 spect to Reconstruction Opportunity Zones in Afghanistan 


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1 and Pakistan or enterprises receiving benefits under sec2 tion 4 or 5, the President shall consider the factors set 

3 forth in section 3 (b) and (c) of this Act, and section 502 

4 (b) and (c) of the Trade Act of 1974 (19 U.S.C. 2462 

5 (b) and (c)). In taking any action to withdraw, suspend, 

6 or limit duty-free treatment with respect to enterprises re7 ceiving benefits under section 4 or 5, the President shall 

8 consider the information described in section 3(d) relating 

9 to verification of the ownership and nature of the activities 

10 of such enterprises and any other relevant information the 

11 President determines to be appropriate. 

12 (c) NOTICE TO CONGRESS.—The President shall ad13 vise Congress— 

14 (1) of any action the President takes to with15 draw, suspend, or limit the application of duty-free 

16 treatment with respect to Reconstruction Oppor17 tunity Zones in Afghanistan or Pakistan or enter18 prises receiving benefits under section 4 or 5; and 

19 (2) if either Afghanistan or Pakistan fails to 

20 adequately take the actions described in section 3 

21 (b) and (c) of this Act or section 502 (b) and (c) 

22 of the Trade Act of 1974. 


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1 SEC. 10. TERMINATION OF BENEFITS. 

2 Duty-free treatment provided under this Act shall re3 main in effect through September 30, 2024. 

Æ 


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