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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1318 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Afghanistan-Pakistan Security and 
Prosperity Enhancement Act''.

SEC. 2. DEFINITIONS; PURPOSES.

    (a) Definitions.--In this Act:
            (1) Agreement on textiles and clothing.--The term 
        ``Agreement on Textiles and Clothing'' means the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
            (2) Category; textile and apparel category number.--The 
        terms ``category'' and ``textile and apparel category number'' 
        mean the number assigned under the U.S. Textile and Apparel 
        Category System of the Office of Textiles and Apparel of the 
        Department of Commerce, as listed in the HTS under the 
        applicable heading or subheading (as in effect on September 1, 
        2007).
            (3) Core labor standards.--The term ``core labor 
        standards'' means--
                    (A) freedom of association;
                    (B) the effective recognition of the right to 
                bargain collectively;
                    (C) the elimination of all forms of compulsory or 
                forced labor;
                    (D) the effective abolition of child labor and a 
                prohibition on the worst forms of child labor; and
                    (E) the elimination of discrimination in respect of 
                employment and occupation.
            (4) Entered.--The term ``entered'' means entered, or 
        withdrawn from warehouse for consumption, in the customs 
        territory of the United States.
            (5) Entity.--The term ``entity'' means--
                    (A) a natural person, corporation, company, 
                business association, partnership, society, trust, any 
                other nongovernmental entity, organization, or group, 
                whether or not for profit;
                    (B) any governmental entity or instrumentality of a 
                government; and
                    (C) any successor, subunit, or subsidiary of any 
                entity described in subparagraph (A) or (B).
            (6) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (7) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement concluded between the United States, 
        Mexico, and Canada on December 17, 1992.
            (8) Reconstruction opportunity zone.--The term 
        ``Reconstruction Opportunity Zone'' means any area that--
                    (A) solely encompasses portions of the territory 
                of--
                            (i) Afghanistan; or
                            (ii) 1 or more of the following areas of 
                        Pakistan:
                                    (I) the Federally Administered 
                                Tribal Areas;
                                    (II) areas of Pakistan-administered 
                                Kashmir that the President determines 
                                were harmed by the earthquake of 
                                October 8, 2005;
                                    (III) areas of Baluchistan that are 
                                within 100 miles of Pakistan's border 
                                with Afghanistan; and
                                    (IV) the North West Frontier 
                                Province;
                    (B) has been designated by the competent 
                authorities in Afghanistan or Pakistan, as the case may 
                be, as an area in which merchandise may be introduced 
                without payment of duty or excise tax; and
                    (C) has been designated by the President as a 
                Reconstruction Opportunity Zone pursuant to section 
                3(a).
    (b) Purposes.--The purposes of this Act are--
            (1) to stimulate economic activity and development in 
        Afghanistan and the border region of Pakistan, critical fronts 
        in the struggle against violent extremism;
            (2) to reflect the strong support that the United States 
        has pledged to Afghanistan and Pakistan for their sustained 
        commitment in the global war on terrorism;
            (3) to support the 3-pronged United States strategy in 
        Afghanistan and the border region of Pakistan that leverages 
        political, military, and economic tools, with Reconstruction 
        Opportunity Zones as a critical part of the economic component 
        of that strategy; and
            (4) to offer a vital opportunity to improve livelihoods of 
        indigenous populations of Reconstruction Opportunity Zones, 
        promote good governance, improve economic and commercial ties 
        between the people of Afghanistan and Pakistan, and extend and 
        strengthen the Governments of Afghanistan and Pakistan.

SEC. 3. DESIGNATION OF RECONSTRUCTION OPPORTUNITY ZONES.

    (a) Authority To Designate.--The President is authorized to 
designate an area within Afghanistan or Pakistan described in section 
2(a)(8) (A) and (B) as a Reconstruction Opportunity Zone if the 
President determines that--
            (1) Afghanistan or Pakistan, as the case may be, meets the 
        eligibility criteria set forth in subsection (b);
            (2) Afghanistan or Pakistan, as the case may be, meets the 
        eligibility criteria set forth in subsection (c) of section 502 
        of the Trade Act of 1974 (19 U.S.C. 2462(c)) for designation as 
        a beneficiary developing country under that section and is not 
        ineligible under subsection (b) of such section; and
            (3) designation of the area as a Reconstruction Opportunity 
        Zone is appropriate taking into account the factors listed in 
        subsection (c).
    (b) Eligibility Criteria.--Afghanistan or Pakistan, as the case may 
be, meets the eligibility criteria set forth in this subsection if that 
country--
            (1) has established, or is making continual progress toward 
        establishing--
                    (A) a market-based economy that protects private 
                property rights, incorporates an open rules-based 
                trading system, and minimizes government interference 
                in the economy through measures such as price controls, 
                subsidies, and government ownership of economic assets;
                    (B) the rule of law, political pluralism, and the 
                right to due process, a fair trial, and equal 
                protection under the law;
                    (C) economic policies to--
                            (i) reduce poverty;
                            (ii) increase the availability of health 
                        care and educational opportunities;
                            (iii) expand physical infrastructure;
                            (iv) promote the development of private 
                        enterprise; and
                            (v) encourage the formation of capital 
                        markets through microcredit or other programs;
                    (D) a system to combat corruption and bribery, such 
                as ratifying and implementing the United Nations 
                Convention Against Corruption; and
                    (E) protection of core labor standards;
            (2) is eliminating or has eliminated barriers to trade and 
        investment, including by--
                    (A) providing national treatment and measures to 
                create an environment conducive to domestic and foreign 
                investment;
                    (B) protecting intellectual property; and
                    (C) resolving bilateral trade and investment 
                disputes;
            (3) does not engage in activities that undermine United 
        States national security or foreign policy interests;
            (4) does not engage in gross violations of internationally 
        recognized human rights;
            (5) does not provide support for acts of international 
        terrorism; and
            (6) cooperates in international efforts to eliminate human 
        rights violations and terrorist activities.
    (c) Additional Factors.--In determining whether to designate an 
area in Afghanistan or Pakistan as a Reconstruction Opportunity Zone, 
the President shall take into account--
            (1) an expression by the government of the country of its 
        desire to have a particular area designated as a Reconstruction 
        Opportunity Zone under this Act;
            (2) whether the government of the country has provided the 
        United States with a monitoring and enforcement plan outlining 
        specific steps the country will take to cooperate with the 
        United States to--
                    (A) facilitate legitimate cross-border commerce;
                    (B) ensure that articles for which duty-free 
                treatment is sought pursuant to this Act satisfy the 
                applicable rules of origin described in section 4 (c) 
                and (d) or section 5 (c) and (d), whichever is 
                applicable; and
                    (C) prevent unlawful transshipment, as described in 
                section 6(b)(4).
            (3) the potential for such designation to create local 
        employment and to promote local and regional economic 
        development;
            (4) the physical security of the proposed Reconstruction 
        Opportunity Zone;
            (5) the economic viability of the proposed Reconstruction 
        Opportunity Zone, including--
                    (A) whether there are commitments to finance 
                economic activity proposed for the Reconstruction 
                Opportunity Zone; and
                    (B) whether there is existing or planned 
                infrastructure for power, water, transportation, and 
                communications in the area;
            (6) whether such designation would be compatible with and 
        contribute to the foreign policy and national security 
        objectives of the United States, taking into account the 
        information provided under subsection (d); and
            (7) the views of interested persons submitted pursuant to 
        subsection (e).
    (d) Information Relating to Compatibility With and Contribution to 
Foreign Policy and National Security Objectives of the United States.--
In determining whether designation of a Reconstruction Opportunity Zone 
would be compatible with and contribute to the foreign policy and 
national security objectives of the United States in accordance with 
subsection (c)(6), the President shall take into account whether 
Afghanistan or Pakistan, as the case may be, has provided the United 
States with a plan outlining specific steps it will take to verify the 
ownership and nature of the activities of entities to be located in the 
proposed Reconstruction Opportunity Zone. The specific steps outlined 
in a country's plan shall include a mechanism to annually register each 
entity by a competent authority of the country and--
            (1) to collect from each entity operating in, or proposing 
        to operate in, a Reconstruction Opportunity Zone, information 
        including--
                    (A) the name and address of the entity;
                    (B) the name and location of all facilities owned 
                or operated by the entity that are operating in or 
                proposed to be operating in a Reconstruction 
                Opportunity Zone;
                    (C) the name, nationality, date and place of birth, 
                and position title of each person who is an owner, 
                director, or officer of the entity; and
                    (D) the nature of the activities of each entity;
            (2) to update the information required under paragraph (1) 
        as changes occur; and
            (3) to provide such information promptly to the Secretary 
        of State.
    (e) Opportunity for Public Comment.--Before the President 
designates an area as a Reconstruction Opportunity Zone pursuant to 
subsection (a), the President shall afford an opportunity for 
interested persons to submit their views concerning the designation.
    (f) Notification to Congress.--Before the President designates an 
area as a Reconstruction Opportunity Zone pursuant to subsection (a), 
the President shall notify Congress of the President's intention to 
make the designation, together with the reasons for making the 
designation.

SEC. 4. DUTY-FREE TREATMENT FOR CERTAIN NONTEXTILE AND NONAPPAREL 
              ARTICLES.

    (a) In General.--The President is authorized to proclaim duty-free 
treatment for--
            (1) any article from a Reconstruction Opportunity Zone that 
        the President has designated as an eligible article under 
        section 503(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 
        2463(a)(1)(A));
            (2) any article from a Reconstruction Opportunity Zone 
        located in Afghanistan that the President has designated as an 
        eligible article under section 503(a)(1)(B) of the Trade Act of 
        1974 (19 U.S.C. 2463(a)(1)(B)); or
            (3) any article from a Reconstruction Opportunity Zone that 
        is not a textile or apparel article, regardless of whether the 
        article has been designated as an eligible article under 
        section 503(a)(1)(A) or (B) of the Trade Act of 1974 (19 U.S.C. 
        2463(a)(1) (A) or (B)), if, after receiving the advice of the 
        International Trade Commission pursuant to subsection (b), the 
        President determines that such article is not import-sensitive 
        in the context of imports from a Reconstruction Opportunity 
        Zone.
    (b) Advice Concerning Certain Eligible Articles.--Before 
proclaiming duty-free treatment for an article pursuant to subsection 
(a)(3), the President shall publish in the Federal Register and provide 
the International Trade Commission a list of articles which may be 
considered for such treatment. The provisions of sections 131 through 
134 of the Trade Act of 1974 (19 U.S.C. 2151 through 2154) shall apply 
to any designation under subsection (a)(3) in the same manner as such 
sections apply to action taken under section 123 of the Trade Act of 
1974 (19 U.S.C. 2133) regarding a proposed trade agreement.
    (c) General Rules of Origin.--
            (1) In general.--The duty-free treatment proclaimed with 
        respect to an article described in paragraph (1) or (3) of 
        subsection (a) shall apply to any article subject to such 
        proclamation which is the growth, product, or manufacture of 1 
        or more Reconstruction Opportunity Zones if--
                    (A) that article is imported directly from a 
                Reconstruction Opportunity Zone into the customs 
                territory of the United States; and
                    (B)(i) with respect to an article that is an 
                article of a Reconstruction Opportunity Zone in 
                Pakistan, the sum of--
                            (I) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Pakistan or Afghanistan,
                            (II) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in Pakistan or 
                        Afghanistan, and
                            (III) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the article at the time it is entered into the United 
                States; or
                    (ii) with respect to an article that is an article 
                of a Reconstruction Opportunity Zone in Afghanistan, 
                the sum of--
                            (I) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Pakistan or Afghanistan,
                            (II) the cost or value of the materials 
                        produced in 1 or more countries that are 
                        members of the South Asian Association for 
                        Regional Cooperation,
                            (III) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in Pakistan or 
                        Afghanistan, and
                            (IV) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the article at the time it is entered into the United 
                States.
            (2) Determination of 35 percent for articles from 
        reconstruction opportunity zones in pakistan and afghanistan.--
        If the cost or value of materials produced in the customs 
        territory of the United States is included with respect to an 
        article described in paragraph (1)(B), for purposes of 
        determining the 35-percent appraised value requirement under 
        clause (i) or (ii) of paragraph (1)(B), not more than 15 
        percent of the appraised value of the article at the time the 
        article is entered into the United States may be attributable 
        to the cost or value of such United States materials.
    (d) Rules of Origin for Certain Articles of Reconstruction 
Opportunity Zones in Afghanistan.--
            (1) In general.--The duty-free treatment proclaimed with 
        respect to an article described in paragraph (2) of subsection 
        (a) shall apply to any article subject to such proclamation 
        which is the growth, product, or manufacture of 1 or more 
        Reconstruction Opportunity Zones in Afghanistan if--
                    (A) that article is imported directly from a 
                Reconstruction Opportunity Zone in Afghanistan into the 
                customs territory of the United States; and
                    (B) with respect to that article, the sum of--
                            (i) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Afghanistan,
                            (ii) the cost or value of the materials 
                        produced in 1 or more countries that are 
                        members of the South Asian Association for 
                        Regional Cooperation,
                            (iii) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in 
                        Afghanistan, and
                            (iv) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the product at the time it is entered into the United 
                States.
            (2) Determination of 35 percent for articles from 
        reconstruction opportunity zones in pakistan and afghanistan.--
        If the cost or value of materials produced in the customs 
        territory of the United States is included with respect to an 
        article described in paragraph (1)(B), for purposes of 
        determining the 35-percent appraised value requirement under 
        paragraph (1)(B), not more than 15 percent of the appraised 
        value of the article at the time the article is entered into 
        the United States may be attributable to the cost or value of 
        such United States materials.
    (e) Exclusions.--An article shall not be treated as the growth, 
product, or manufacture of 1 or more Reconstruction Opportunity Zones, 
and no material shall be included for purposes of determining the 35-
percent appraised value requirement under subsection (c)(1) or (d)(1), 
by virtue of having merely undergone--
            (1) simple combining or packaging operations; or
            (2) mere dilution with water or with another substance that 
        does not materially alter the characteristics of the article or 
        material.
    (f) Direct Costs of Processing Operations.--
            (1) In general.--As used in subsections (c)(1)(B)(i)(II), 
        (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the term ``direct costs 
        of processing operations'' includes, but is not limited to--
                    (A) all actual labor costs involved in the growth, 
                production, manufacture, or assembly of the article, 
                including--
                            (i) fringe benefits;
                            (ii) on-the-job training; and
                            (iii) costs of engineering, supervisory, 
                        quality control, and similar personnel; and
                    (B) dies, molds, tooling, and depreciation on 
                machinery and equipment which are allocable to the 
                article.
            (2) Excluded costs.--As used in subsections 
        (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the 
        term ``direct costs of processing operations'' does not include 
        costs which are not directly attributable to the article or are 
        not costs of manufacturing the article, such as--
                    (A) profit; and
                    (B) general expenses of doing business which are 
                either not allocable to the article or are not related 
                to the growth, production, manufacture, or assembly of 
                the article, such as administrative salaries, casualty 
                and liability insurance, advertising, and salesmen's 
                salaries, commissions, or expenses.
    (g) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section. The 
regulations may provide that, in order for an article to be eligible 
for duty-free treatment under this section, the article--
            (1) shall be wholly the growth, product, or manufacture of 
        1 or more Reconstruction Opportunity Zones; or
            (2) shall be a new or different article of commerce which 
        has been grown, produced, or manufactured in 1 or more 
        Reconstruction Opportunity Zones.

SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE AND APPAREL ARTICLES.

    (a)  Duty-Free Treatment.--The President is authorized to proclaim 
duty-free treatment for any textile or apparel article described in 
subsection (b), if--
            (1) the article is a covered article described in 
        subsection (b); and
            (2) the President determines that the country in which the 
        Reconstruction Opportunity Zone is located has satisfied the 
        requirements set forth in section 6.
    (b) Covered Articles.--A covered article described in this 
subsection is an article in 1 of the following categories: 
            (1) Articles of reconstruction opportunity zones.--An 
        article that is the product of 1 or more Reconstruction 
        Opportunity Zones and falls within the scope of 1 of the 
        following textile and apparel category numbers, as set forth in 
        the HTS (as 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
 

            (2) Articles of reconstruction opportunity zones in 
        afghanistan.--The article is the product of 1 or more 
        Reconstruction Opportunity Zones in Afghanistan and falls 
        within the scope of 1 of the following textile and apparel 
        category numbers, as set forth in the HTS (as in effect on 
        September 1, 2007):

201.........................  439.................  459
414.........................  440.................  464
431.........................  442.................  670
433.........................  444.................  800
434.........................  445.................  810
435.........................  446.................  870
436.........................  448.................  871
438
 

            (3) Certain other textile and apparel articles.--The 
        article is the product of 1 or more Reconstruction Opportunity 
        Zones and falls within the scope of 1 of the following textile 
        and apparel category numbers as set forth in the HTS (as in 
        effect on September 1, 2007) and is covered by the 
        corresponding description for such category:
                    (A) Category 239.--An article in category 239 
                (relating to cotton and man-made fiber babies' 
                garments) except for baby socks and baby booties 
                described in subheading 6111.20.6050, 6111.30.5050, or 
                6111.90.5050 of the HTS.
                    (B) Category 338.--An article in category 338 
                (relating to men's and boys' cotton knit shirts) if the 
                article is a certain knit-to-shape garment that meets 
                the definition included in Statistical Note 6 to 
                Chapter 61 of the HTS, and is provided for in 
                subheading 6110.20.1026, 6110.20.2067 or 6110.90.9067 
                of the HTS.
                    (C) Category 339.--An article in category 339 
                (relating to women's and girls' cotton knit shirts and 
                blouses) if the article is a knit-to-shape garment that 
                meets the definition included in Statistical Note 6 to 
                Chapter 61 of the HTS, and is provided for in 
                subheading 6110.20.1031, 6110.20.2077, or 6110.90.9071 
                of the HTS.
                    (D) Category 359.--An article in category 359 
                (relating to other cotton apparel) except swimwear 
                provided for in subheading 6112.39.0010, 6112.49.0010, 
                6211.11.8010, 6211.11.8020, 6211.12.8010, or 
                6211.12.8020 of the HTS.
                    (E) Category 632.--An article in category 632 
                (relating to man-made fiber hosiery) if the article is 
                panty hose provided for in subheading 6115.21.0020 of 
                the HTS.
                    (F) Category 638.--An article in category 638 
                (relating to men's and boys' man-made fiber knit 
                shirts) if the article is a knit-to-shape garment that 
                meets the definition included in Statistical Note 6 to 
                Chapter 61 of the HTS, and is provided for in 
                subheading 6110.30.2051, 6110.30.3051, or 6110.90.9079 
                of the HTS.
                    (G) Category 639.--An article in category 639 
                (relating to women's and girls' man-made fiber knit 
                shirts and blouses) if the article is a knit-to-shape 
                garment that meets the definition included in 
                Statistical Note 6 to Chapter 61 of the HTS, and is 
                provided for in subheading 6110.30.2061, 6110.30.3057, 
                or 6110.90.9081 of the HTS.
                    (H) Category 647.--An article in category 647 
                (relating to men's and boys' man-made fiber trousers) 
                if the article is ski/snowboard pants that meets the 
                definition included in Statistical Note 4 to Chapter 62 
                of the HTS, and is provided for in subheading 
                6203.43.3510, 6210.40.5031, or 6211.20.1525 of the HTS.
                    (I) Category 648.--An article in category 648 
                (relating to women's and girls' man-made fiber 
                trousers) if the article is ski/snowboard pants that 
                meets the definition included in Statistical Note 4 to 
                Chapter 62 of the HTS, and is provided for in 
                subheading 6204.63.3010, 6210.50.5031, or 6211.20.1555 
                of the HTS.
                    (J) Category 659.--An article in category 659 
                (relating to other man-made fiber apparel) except for 
                swimwear provided for in subheading 6112.31.0010, 
                6112.31.0020, 6112.41.0010, 6112.41.0020, 6112.41.0030, 
                6112.41.0040, 6211.11.1010, 6211.11.1020, 6211.12.1010, 
                or 6211.12.1020 of the HTS.
                    (K) Category 666.--An article in category 666 
                (relating to other man-made fiber furnishings) except 
                for window shades and window blinds provided for in 
                subheading 6303.12.0010 or 6303.92.2030 of the HTS.
            (4) Certain other articles.--The article is the product of 
        1 or more Reconstruction Opportunity Zones and falls within the 
        scope of 1 of the following statistical reporting numbers of 
        the HTS (as in effect on September 1, 2007):

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
 

    (c) Rules of Origin for Certain Covered Articles.--
            (1) General rules.--Except with respect to an article 
        listed in paragraph (2) of subsection (b), duty-free treatment 
        may be proclaimed for an article listed in subsection (b) only 
        if the article is imported directly into the customs territory 
        of the United States from a Reconstruction Opportunity Zone 
        and--
                    (A) the article is wholly the growth, product, or 
                manufacture of 1 or more Reconstruction Opportunity 
                Zones;
                    (B) the article is a yarn, thread, twine, cordage, 
                rope, cable, or braiding, and--
                            (i) the constituent staple fibers are spun 
                        in, or
                            (ii) the continuous filament fiber is 
                        extruded in,
                1 or more Reconstruction Opportunity Zones;
                    (C) the article is a fabric, including a fabric 
                classifiable under chapter 59 of the HTS, and the 
                constituent fibers, filaments, or yarns are woven, 
                knitted, needled, tufted, felted, entangled, or 
                transformed by any other fabric-making process in 1 or 
                more Reconstruction Opportunity Zones; or
                    (D) the article is any other textile or apparel 
                article that is cut (or knit-to-shape) and sewn or 
                otherwise assembled in 1 or more Reconstruction 
                Opportunity Zones from its component pieces.
            (2) Special rules.--
                    (A) Certain made-up articles, textile articles in 
                the piece, and certain other textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, subparagraph (A), (B), or (C) of paragraph 
                (1), as appropriate, shall determine whether a good 
                that is classifiable under 1 of the following headings 
                or subheadings of the HTS shall be considered to meet 
                the rules of origin of this subsection: 5609, 5807, 
                5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
                6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
                    (B) Certain knit-to-shape textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, a textile or apparel article that is wholly 
                formed on seamless knitting machines or by hand-
                knitting in 1 or more Reconstruction Opportunity Zones 
                shall be considered to meet the rules of origin of this 
                subsection.
                    (C) Certain dyed and printed textiles and textile 
                articles.--Notwithstanding paragraph (1)(D), an article 
                classifiable under subheading 6117.10, 6213.00, 
                6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 
                6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 
                6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, 
                except for an article classifiable under 1 of such 
                subheadings as of cotton or of wool or consisting of 
                fiber blends containing 16 percent or more by weight of 
                cotton, shall be considered to meet the rules of origin 
                of this subsection if the fabric in the article is both 
                dyed and printed in 1 or more Reconstruction 
                Opportunity Zones, and such dyeing and printing is 
                accompanied by 2 or more of the following finishing 
                operations: bleaching, shrinking, fulling, napping, 
                decating, permanent stiffening, weighting, permanent 
                embossing, or moireing.
                    (D) Fabrics of silk, cotton, man-made fiber, or 
                vegetable fiber.--Notwithstanding paragraph (1)(C), a 
                fabric classifiable under the HTS as of silk, cotton, 
                man-made fiber, or vegetable fiber shall be considered 
                to meet the rules of origin of this subsection if the 
                fabric is both dyed and printed in 1 or more 
                Reconstruction Opportunity Zones, and such dyeing and 
                printing is accompanied by 2 or more of the following 
                finishing operations: bleaching, shrinking, fulling, 
                napping, decating, permanent stiffening, weighting, 
                permanent embossing, or moireing.
    (d) Rules of Origin for Covered Articles That Are Products of 1 or 
More Reconstruction Opportunity Zones in Afghanistan.--
            (1) General rules.--Duty-free treatment may be proclaimed 
        for an article listed in paragraph (2) of subsection (b) only 
        if the article is imported directly into the customs territory 
        of the United States from a Reconstruction Opportunity Zone in 
        Afghanistan and--
                    (A) the article is wholly the growth, product, or 
                manufacture of 1 or more Reconstruction Opportunity 
                Zones in Afghanistan,
                    (B) the article is a yarn, thread, twine, cordage, 
                rope, cable, or braiding, and--
                            (i) the constituent staple fibers are spun 
                        in, or
                            (ii) the continuous filament fiber is 
                        extruded in,
                1 or more Reconstruction Opportunity Zones in 
                Afghanistan;
                    (C) the article is a fabric, including a fabric 
                classifiable under chapter 59 of the HTS, and the 
                constituent fibers, filaments, or yarns are woven, 
                knitted, needled, tufted, felted, entangled, or 
                transformed by any other fabric-making process in 1 or 
                more Reconstruction Opportunity Zones in Afghanistan; 
                or
                    (D) the article is any other textile or apparel 
                article that is cut (or knit-to-shape) and sewn or 
                otherwise assembled in 1 or more Reconstruction 
                Opportunity Zones in Afghanistan from its component 
                pieces.
            (2) Special rules.--
                    (A) Certain made-up articles, textile articles in 
                the piece, and certain other textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, subparagraph (A), (B), or (C) of paragraph 
                (1), as appropriate, shall determine whether a good 
                that is classifiable under 1 of the following headings 
                or subheadings of the HTS shall be considered to meet 
                the rules of origin of this subsection: 5609, 5807, 
                5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
                6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
                    (B) Certain knit-to-shape textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, a textile or apparel article that is wholly 
                formed on seamless knitting machines or by hand-
                knitting in 1 or more Reconstruction Opportunity Zones 
                in Afghanistan shall be considered to meet the rules of 
                origin of this subsection.
                    (C) Certain dyed and printed textiles and textile 
                articles.--Notwithstanding paragraph (1)(D), an article 
                classifiable under subheading 6117.10, 6213.00, 
                6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 
                6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 
                6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, 
                except for an article classifiable under 1 of such 
                subheadings as of cotton or of wool or consisting of 
                fiber blends containing 16 percent or more by weight of 
                cotton, shall be considered to meet the rules of origin 
                of this subsection if the fabric in the article is both 
                dyed and printed in 1 or more Reconstruction 
                Opportunity Zones in Afghanistan, and such dyeing and 
                printing is accompanied by 2 or more of the following 
                finishing operations: bleaching, shrinking, fulling, 
                napping, decating, permanent stiffening, weighting, 
                permanent embossing, or moireing.
                    (D) Fabrics of silk, cotton, man-made fiber or 
                vegetable fiber.--Notwithstanding paragraph (1)(C), a 
                fabric classifiable under the HTS as of silk, cotton, 
                man-made fiber, or vegetable fiber shall be considered 
                to meet the rules of origin of this subsection if the 
                fabric is both dyed and printed in 1 or more 
                Reconstruction Opportunity Zones in Afghanistan, and 
                such dyeing and printing is accompanied by 2 or more of 
                the following finishing operations: bleaching, 
                shrinking, fulling, napping, decating, permanent 
                stiffening, weighting, permanent embossing, or 
                moireing.
    (e) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section.

SEC. 6. PROTECTIONS AGAINST UNLAWFUL TRANSSHIPMENT.

    (a) Duty-Free Treatment Conditioned on Enforcement Measures.--
            (1) In general.--The duty-free treatment described in 
        section 5 shall not be provided to covered articles that are 
        imported from a Reconstruction Opportunity Zone in a country 
        unless the President determines that country meets the 
        following criteria:
                    (A) The country has adopted an effective visa or 
                electronic certification system, domestic laws, and 
                enforcement procedures applicable to covered articles 
                to prevent unlawful transshipment of the articles and 
                the use of false documents relating to the importation 
                of the articles into the United States.
                    (B) The country has enacted legislation or 
                promulgated regulations that would permit U.S. Customs 
                and Border Protection verification teams to have the 
                access necessary to investigate thoroughly allegations 
                of unlawful transshipment through such country.
                    (C) The country agrees to provide U.S. Customs and 
                Border Protection with a monthly report on shipments of 
                covered articles from each facility engaged in the 
                production of those articles in a Reconstruction 
                Opportunity Zone in that country.
                    (D) The country will cooperate fully with the 
                United States to address and take action necessary to 
                prevent circumvention, as described in article 5 of the 
                Agreement on Textiles and Clothing.
                    (E) The country agrees to require each entity 
                engaged in the production or manufacture of a covered 
                article in a Reconstruction Opportunity Zone in that 
                country to register with the competent government 
                authority, to provide that authority with the following 
                information, and to update that information as changes 
                occur:
                            (i) The name and address of the entity, 
                        including the location of all textile or 
                        apparel facilities owned or operated by that 
                        entity in Afghanistan or Pakistan.
                            (ii) The telephone number, facsimile 
                        number, and electronic mail address of the 
                        entity.
                            (iii) The names and nationalities of the 
                        owners, directors, and corporate officers, and 
                        their positions within the entity.
                            (iv) The number of employees the entity 
                        employs and their occupations.
                            (v) A general description of the covered 
                        articles the entity produces and the entity's 
                        production capacity.
                            (vi) The number and type of machines the 
                        entity uses to produce textile or apparel 
                        articles at each facility.
                            (vii) The approximate number of hours the 
                        machines operate per week.
                            (viii) The identity of any supplier to the 
                        entity of textile or apparel goods, or fabrics, 
                        yarns, or fibers used in the production of 
                        textile or apparel goods.
                            (ix) The name of, and contact information 
                        for, each of the entity's customers in the 
                        United States.
                    (F) The country agrees to provide to U.S. Customs 
                and Border Protection on a timely basis all of the 
                information received by the competent government 
                authority in accordance with subparagraph (E) and to 
                provide U.S. Customs and Border Protection with an 
                annual update of that information.
                    (G) The country agrees to require that all 
                producers and exporters of covered articles in a 
                Reconstruction Opportunity Zone in that country 
                maintain complete records of the production and the 
                export of covered articles, including materials used in 
                the production, for at least 5 years after the 
                production or export (as the case may be).
                    (H) The country agrees to provide, on a timely 
                basis, at the request of U.S. Customs and Border 
                Protection, documentation establishing the eligibility 
                of covered articles for duty-free treatment under 
                section 5.
            (2) Documentation establishing eligibility of articles for 
        duty-free treatment.--For purposes of paragraph (1)(H), 
        documentation establishing the eligibility of a covered article 
        for duty-free treatment under section 5 includes documentation 
        such as production records, information relating to the place 
        of production, the number and identification of the types of 
        machinery used in production, the number of workers employed in 
        production, and certification from both the manufacturer and 
        the exporter.
    (b) Customs Procedures and Enforcement.--
            (1) In general.--
                    (A) Regulations.--The Secretary of the Treasury, 
                after consultation with the United States Trade 
                Representative, shall promulgate regulations setting 
                forth customs procedures similar in all material 
                respects to the requirements of article 502(1) of the 
                NAFTA as implemented pursuant to United States law, 
                which shall apply to any importer that claims duty-free 
                treatment for an article under section 5.
                    (B) Determination.--In order for articles produced 
                in a Reconstruction Opportunity Zone to qualify for the 
                duty-free treatment under section 5, there shall be in 
                effect a determination by the President that 
                Afghanistan or Pakistan, as the case may be--
                            (i) has implemented and follows, or
                            (ii) is making substantial progress toward 
                        implementing and following,
                procedures and requirements similar in all material 
                respects to the relevant procedures and requirements 
                under chapter 5 of the NAFTA.
            (2) Certificate of origin.--A certificate of origin that 
        otherwise would be required pursuant to the provisions of 
        paragraph (1) shall not be required in the case of an article 
        imported under section 5 if such certificate of origin would 
        not be required under article 503 of the NAFTA, as implemented 
        pursuant to United States law, if the article were imported 
        from Mexico.
            (3) Penalties.--If the President determines, based on 
        sufficient evidence, that an entity has engaged in unlawful 
        transshipment described in paragraph (4), the President shall 
        deny for a period of 5 years beginning on the date of the 
        determination all benefits under section 5 to the entity, any 
        successor of the entity, and any other entity owned, operated, 
        or controlled by the principals of the entity.
            (4) Unlawful transshipment described.--For purposes of this 
        section, unlawful transshipment occurs when duty-free treatment 
        for a covered article has been claimed on the basis of material 
        false information concerning the country of origin, 
        manufacture, processing, or assembly of the article or any of 
        its components. For purposes of the preceding sentence, false 
        information is material if disclosure of the true information 
        would mean or would have meant that the article is or was 
        ineligible for duty-free treatment under section 5.
            (5) Monitoring and reports to congress.--U.S. Customs and 
        Border Protection shall monitor and the Commissioner 
        responsible for U.S. Customs and Border Protection shall submit 
        to Congress, not later than March 31 of each year, a report on 
        the effectiveness of the visa or electronic certification 
        systems and the implementation of legislation and regulations 
        described in subsection (a) and on measures taken by 
        Afghanistan and Pakistan to prevent circumvention as described 
        in article 5 of the Agreement on Textile and Clothing.
    (c) Additional Customs Enforcement.--U.S. Customs and Border 
Protection shall--
            (1) make available technical assistance to Afghanistan and 
        Pakistan--
                    (A) in the development and implementation of visa 
                or electronic certification systems, legislation, and 
                regulations described in subsection (a)(1)(A) and (B); 
                and
                    (B) to train their officials in anti-transshipment 
                enforcement;
            (2) send production verification teams to Afghanistan and 
        Pakistan as necessary; and
            (3) to the extent feasible, place Afghanistan and Pakistan 
        on the Electronic Visa (ELVIS) program or relevant e-
        certification program.
    (d) Authorization of Appropriations.--To carry out subsection (c), 
there are authorized to be appropriated to U.S. Customs and Border 
Protection $10,000,000 for each of the fiscal years 2010 through 2023.

SEC. 7. TECHNICAL ASSISTANCE, CAPACITY BUILDING, COMPLIANCE ASSESSMENT, 
              AND REMEDIATION PROGRAM.

    (a) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            (2) Textile or apparel exporting enterprise.--The term 
        ``textile or apparel exporting enterprise'' means a producer of 
        textile or apparel articles that is located in a Reconstruction 
        Opportunity Zone and is seeking or receiving any benefits under 
        section 5.
    (b) Eligibility.--
            (1) Presidential certification of compliance by afghanistan 
        or pakistan with requirements.--Upon the expiration of the 16-
        month period beginning on the date on which the President 
        notifies Congress of the President's intention to designate an 
        area within Afghanistan or Pakistan, as the case may be, as a 
        Reconstruction Opportunity Zone under section 3, each 
        Reconstruction Opportunity Zone in Afghanistan or Pakistan, as 
        the case may be, shall continue to receive duty-free treatment 
        under this Act only if the President determines and certifies 
        to Congress that Afghanistan or Pakistan, as the case may be--
                    (A) has implemented the requirements set forth in 
                subsections (c) and (d); and
                    (B) has agreed to require textile or apparel 
                exporting enterprises to participate in the program 
                described in subsection (d) and has developed a system 
                to ensure participation in such program by such 
                enterprises, including by developing and maintaining 
                the registry described in subsection (c)(2)(A).
            (2) Extension.--The President may extend the period for 
        compliance by Afghanistan or Pakistan under paragraph (1) if 
        the President--
                    (A) determines that Afghanistan or Pakistan, as the 
                case may be, has made a good faith effort toward such 
                compliance and has agreed to take additional steps to 
                come into full compliance that are satisfactory to the 
                President; and
                    (B) provides to the appropriate congressional 
                committees, not later than 6 months after the last day 
                of the 16-month period specified in paragraph (1), and 
                every 6 months thereafter, a report identifying the 
                steps that Afghanistan or Pakistan, as the case may be, 
                has agreed to take to come into full compliance and the 
                progress made over the preceding 6-month period in 
                implementing such steps.
            (3) Continuing compliance.--
                    (A) Termination of preferential treatment.--If, 
                after making a certification under paragraph (1), the 
                President determines that Afghanistan or Pakistan is no 
                longer meeting the requirements set forth in paragraph 
                (1), the President shall terminate the eligibility of 
                Afghanistan or Pakistan, as the case may be, provided 
                under section 3(b), unless the President determines, 
                after consulting with the appropriate congressional 
                committees, that meeting such requirements is not 
                practicable because of extraordinary circumstances 
                existing in Afghanistan or Pakistan, as the case may 
                be, when the determination is made.
                    (B) Subsequent compliance.--If the President, after 
                terminating eligibility of Afghanistan or Pakistan, as 
                the case may be, under subparagraph (A), determines 
                that Afghanistan or Pakistan, as the case may be, is 
                meeting the requirements set forth in paragraph (1), 
                the President shall reinstate the eligibility of 
                Afghanistan or Pakistan, as the case may be, under 
                section 3(b).
    (c) Labor Official.--
            (1) In general.--The requirement under this subsection is 
        that Afghanistan or Pakistan, as the case may be, has 
        designated a labor official within the national government 
        that--
                    (A) reports directly to the President of 
                Afghanistan or Pakistan, as the case may be;
                    (B) is chosen by the President of Afghanistan or 
                Pakistan, as the case may be, in consultation with 
                labor unions and industry associations; and
                    (C) is vested with the authority to perform the 
                functions described in paragraph (2).
            (2) Functions.--The functions of the labor official shall 
        include--
                    (A) developing and maintaining a registry of 
                textile or apparel exporting enterprises, and 
                developing, in consultation and coordination with any 
                other appropriate officials of the Government of 
                Afghanistan or Pakistan, as the case may be, a system 
                to ensure participation by such enterprises in the 
                program described in subsection (d);
                    (B) overseeing the implementation of the program 
                described in subsection (d);
                    (C) receiving and investigating comments from any 
                interested party regarding the conditions described in 
                subsection (d)(2) in facilities of textile or apparel 
                exporting enterprises listed in the registry described 
                in subparagraph (A) and, where appropriate, referring 
                such comments or the result of such investigations to 
                the appropriate authorities of Afghanistan or Pakistan, 
                as the case may be, or to the entity operating the 
                program described in subsection (d);
                    (D) assisting, in consultation and coordination 
                with any other appropriate authorities Afghanistan or 
                Pakistan, as the case may be, textile or apparel 
                exporting enterprises listed in the registry described 
                in subparagraph (A) in meeting the conditions set forth 
                in subsection (d)(2); and
                    (E) coordinating, with the assistance of the entity 
                operating the program described in subsection (d), a 
                tripartite committee comprised of appropriate 
                representatives of government agencies, employers, and 
                workers, as well as other relevant interested parties, 
                for the purposes of evaluating progress in implementing 
                the program described in subsection (d), and consulting 
                on improving core labor standards and working 
                conditions in the textile and apparel sector in 
                Afghanistan or Pakistan, as the case may be, and on 
                other matters of common concern relating to such core 
                labor standards and working conditions.
    (d) Technical Assistance, Capacity Building, Compliance Assessment, 
and Remediation Program.--
            (1) In general.--The requirement under this subsection is 
        that Afghanistan or Pakistan, as the case may be, in 
        cooperation with the International Labor Organization, has 
        established a program meeting the requirements under paragraph 
        (3)--
                    (A) to assess compliance by textile or apparel 
                exporting enterprises listed in the registry described 
                in subsection (c)(2)(A) with the conditions set forth 
                in paragraph (2) and to assist such enterprises in 
                meeting such conditions; and
                    (B) to provide assistance to improve the capacity 
                of the Government of Afghanistan or Pakistan, as the 
                case may be--
                            (i) to inspect facilities of textile or 
                        apparel exporting enterprises listed in the 
                        registry described in subsection (c)(2)(A); and
                            (ii) to enforce national labor laws and 
                        resolve labor disputes, including through 
                        measures described in paragraph (5).
            (2) Conditions described.--The conditions referred to in 
        paragraph (1) are--
                    (A) compliance with core labor standards; and
                    (B) compliance with the labor laws of Afghanistan 
                or Pakistan, as the case may be, that relate directly 
                to core labor standards and to ensuring acceptable 
                conditions of work with respect to minimum wages, hours 
                of work, and occupational health and safety.
            (3) Requirements.--The requirements for the program are 
        that the program--
                    (A) be operated by the International Labor 
                Organization (or any subdivision, instrumentality, or 
                designee thereof), which prepares the annual reports 
                described in paragraph (4);
                    (B) be developed through a participatory process 
                that includes the labor official described in 
                subsection (c) of Afghanistan or Pakistan, as the case 
                may be, and appropriate representatives of government 
                agencies, employers, and workers;
                    (C) assess compliance by each textile or apparel 
                exporting enterprise listed in the registry described 
                in subsection (c)(2)(A) with the conditions set forth 
                in paragraph (2) and identify any deficiencies by such 
                enterprise with respect to meeting such conditions, 
                including by--
                            (i) conducting site visits to facilities of 
                        the enterprise;
                            (ii) conducting confidential interviews 
                        with workers and management of the facilities 
                        of the enterprise; and
                            (iii) providing to management and workers, 
                        and where applicable, worker organizations in 
                        the enterprise, on a confidential basis--
                                    (I) the results of the assessment 
                                carried out under this subparagraph; 
                                and
                                    (II) specific suggestions for 
                                remediating any such deficiencies;
                    (D) assist the textile or apparel exporting 
                enterprise in remediating any deficiencies identified 
                under subparagraph (C);
                    (E) conduct prompt follow-up site visits to the 
                facilities of the textile or apparel exporting 
                enterprise to assess progress on remediation of any 
                deficiencies identified under subparagraph (C); and
                    (F) provide training to workers and management of 
                the textile or apparel exporting enterprise, and where 
                appropriate, to other persons or entities, to promote 
                compliance with paragraph (2).
            (4) Annual report.--The annual reports referred to in 
        paragraph (3)(A) are a report, by the entity operating the 
        program, that is published (and available to the public in a 
        readily accessible manner) on an annual basis, beginning 1 year 
        after Afghanistan or Pakistan, as the case may be, has 
        implemented the program under this subsection, covering the 
        preceding 1-year period, and that includes the following:
                    (A) The name of each textile or apparel exporting 
                enterprise listed in the registry described in 
                subsection (c)(2)(A) that has been identified as having 
                met the conditions under paragraph (2).
                    (B) The name of each textile or apparel exporting 
                enterprise listed in the registry described in 
                subsection (c)(2)(A) that has been identified as having 
                deficiencies with respect to the conditions under 
                paragraph (2), and has failed to remedy such 
                deficiencies.
                    (C) For each textile or apparel exporting 
                enterprise listed under subparagraph (B)--
                            (i) a description of the deficiencies found 
                        to exist and the specific suggestions for 
                        remediating such deficiencies made by the 
                        entity operating the program;
                            (ii) a description of the efforts by the 
                        enterprise to remediate the deficiencies, 
                        including a description of assistance provided 
                        by any entity to assist in such remediation; 
                        and
                            (iii) with respect to deficiencies that 
                        have not been remediated, the amount of time 
                        that has elapsed since the deficiencies were 
                        first identified in a report under this 
                        subparagraph.
                    (D) For each textile or apparel exporting 
                enterprise identified as having deficiencies with 
                respect to the conditions described under paragraph (2) 
                in a prior report under this paragraph, a description 
                of the progress made in remediating such deficiencies 
                since the submission of the prior report, and an 
                assessment of whether any aspect of such deficiencies 
                persists.
            (5) Capacity building.--The assistance to the Government of 
        Afghanistan or Pakistan referred to in paragraph (1)(B) shall 
        include programs--
                    (A) to review the labor laws and regulations of 
                Afghanistan or Pakistan, as the case may be, and to 
                develop and implement strategies for improving labor 
                laws and regulations;
                    (B) to develop additional strategies for 
                facilitating protection of core labor standards and 
                providing acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health, including through legal, regulatory, and 
                institutional reform;
                    (C) to increase awareness of core labor standards 
                and national labor laws;
                    (D) to promote consultation and cooperation between 
                government representatives, employers, worker 
                representatives, and United States importers on matters 
                relating to core labor standards and national labor 
                laws;
                    (E) to assist the labor official of Afghanistan or 
                Pakistan, as the case may be, designated pursuant to 
                subsection (c) in establishing and coordinating 
                operation of the committee described in subsection 
                (c)(2)(E);
                    (F) to assist worker representatives in more fully 
                and effectively advocating on behalf of their members; 
                and
                    (G) to provide on-the-job training and technical 
                assistance to labor inspectors, judicial officers, and 
                other relevant personnel to build their capacity to 
                enforce national labor laws and resolve labor disputes.
    (e) Compliance With Eligibility Criteria.--
            (1) Country compliance with core labor standards 
        eligibility criteria.--In making a determination of whether 
        Afghanistan or Pakistan is meeting the requirement set forth in 
        section 3(b)(1)(E) relating to core labor standards, the 
        President shall consider the reports produced under subsection 
        (d)(4).
            (2) Enterprise eligibility.--
                    (A) Identification of producers.--Beginning 2 years 
                after the President makes the certification under 
                subsection (b)(1), the President shall identify on a 
                biennial basis whether a textile or apparel exporting 
                enterprise listed in the registry described in 
                subsection (c)(2)(A) has failed to comply with core 
                labor standards and with the labor laws of Afghanistan 
                or Pakistan, as the case may be, that directly relate 
                to and are consistent with core labor standards.
                    (B) Assistance to enterprises; withdrawal, etc., of 
                preferential treatment.--For each textile or apparel 
                exporting enterprise that the President identifies 
                under subparagraph (A), the President shall seek to 
                assist such enterprise in coming into compliance with 
                core labor standards and with the labor laws of 
                Afghanistan or Pakistan, as the case may be, that 
                directly relate to and are consistent with core labor 
                standards. If such efforts fail, the President shall 
                withdraw, suspend, or limit the application of 
                preferential treatment under section 5 to articles of 
                such enterprise.
                    (C) Reinstating preferential treatment.--If the 
                President, after withdrawing, suspending, or limiting 
                the application of preferential treatment under 
                subparagraph (B) to articles of a textile or apparel 
                exporting enterprise, determines that such enterprise 
                is complying with core labor standards and with the 
                labor laws of Afghanistan or Pakistan, as the case may 
                be, that directly relate to and are consistent with 
                core labor standards, the President shall reinstate the 
                application of preferential treatment under section 5 
                to the articles of the enterprise.
                    (D) Consideration of reports.--In making the 
                identification under subparagraph (A) and the 
                determination under subparagraph (C), the President 
                shall consider the reports made available under 
                subsection (d)(4).
    (f) Reports by the President.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and annually thereafter, the 
        President shall transmit to the appropriate congressional 
        committees a report on the implementation of this section 
        during the preceding 1-year period.
            (2) Matters to be included.--Each report required by 
        paragraph (1) shall include the following:
                    (A) An explanation of the efforts of Afghanistan 
                and Pakistan, the President, and the International 
                Labor Organization to carry out this section.
                    (B) A summary of each report produced under 
                subsection (d)(4) during the preceding 1-year period 
                and a summary of the findings contained in such report.
                    (C) Identifications made under subsection (e)(2)(A) 
                and determinations made under subsection (e)(2)(C).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for the period 
beginning on October 1, 2009, and ending on September 30, 2014.

SEC. 8. PETITION PROCESS.

    Any interested party may file a request to have the status of 
Afghanistan or Pakistan reviewed with respect to the eligibility 
requirements listed in this Act, and the President shall provide for 
this purpose the same procedures as those that are provided for 
reviewing the status of eligible beneficiary developing countries with 
respect to the designation criteria listed in subsections (b) and (c) 
of section 502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and (c)).

SEC. 9. LIMITATIONS ON PROVIDING DUTY-FREE TREATMENT.

    (a) In General.--
            (1) Proclamation.--Except as provided in paragraph (2), and 
        subject to subsection (b) and the conditions described in 
        sections 3 through 7, the President shall exercise the 
        President's authority under this Act, and the President shall 
        proclaim any duty-free treatment pursuant to that authority.
            (2) Waiver.--The President may waive the application of 
        duty-free treatment under this Act with respect to 
        Reconstruction Opportunity Zones in Afghanistan and Pakistan or 
        enterprises receiving benefits under section 4 or 5 if the 
        President determines that providing such treatment is 
        inconsistent with the national interests of the United States. 
        In making such determination, the President shall consider--
                    (A) obligations of the United States under 
                international agreements;
                    (B) the national economic interests of the United 
                States; and
                    (C) the foreign policy interests of the United 
                States, including the economic development of 
                Afghanistan and the border region of Pakistan.
    (b) Withdrawal, Suspension, or Limitation of Duty-Free Treatment.--
The President may withdraw, suspend, or limit the application of the 
duty-free treatment proclaimed under this Act. In taking any action to 
withdraw, suspend, or limit duty-free treatment with respect to 
Reconstruction Opportunity Zones in Afghanistan and Pakistan or 
enterprises receiving benefits under section 4 or 5, the President 
shall consider the factors set forth in section 3 (b) and (c) of this 
Act, and section 502 (b) and (c) of the Trade Act of 1974 (19 U.S.C. 
2462 (b) and (c)). In taking any action to withdraw, suspend, or limit 
duty-free treatment with respect to enterprises receiving benefits 
under section 4 or 5, the President shall consider the information 
described in section 3(d) relating to verification of the ownership and 
nature of the activities of such enterprises and any other relevant 
information the President determines to be appropriate.
    (c) Notice to Congress.--The President shall advise Congress--
            (1) of any action the President takes to withdraw, suspend, 
        or limit the application of duty-free treatment with respect to 
        Reconstruction Opportunity Zones in Afghanistan or Pakistan or 
        enterprises receiving benefits under section 4 or 5; and
            (2) if either Afghanistan or Pakistan fails to adequately 
        take the actions described in section 3 (b) and (c) of this Act 
        or section 502 (b) and (c) of the Trade Act of 1974.

SEC. 10. TERMINATION OF BENEFITS.

    Duty-free treatment provided under this Act shall remain in effect 
through September 30, 2024.
                                 <all>
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