I 

109TH CONGRESS 

1ST SESSION H. R. 1945

To provide temporary duty reductions for certain cotton fabrics, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2005

Mr. SIMMONS (for himself and Mr. ETHERIDGE) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To provide temporary duty reductions for certain cotton 

fabrics, 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. TEMPORARY DUTY REDUCTIONS FOR CERTAIN 

4 COTTON SHIRTING FABRIC. 

5 (a) CERTAIN COTTON SHIRTING FABRICS.—

6 (1) IN GENERAL.—Subchapter II of chapter 99 

7 is amended by inserting in numerical sequence the 

8 following new headings:
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‘‘ 9902.52.08 Woven fabrics of cotton, all the foregoing certified by the importer as 

suitable for use in making men’s and 

boys’ shirts and as imported by or for 

the benefit of a manufacturer of 

men’s and boys’ shirts, subject to the 

quantity limitations contained in general note 18 of this subchapter (provided for in section 

204(b)(3)(B)(i)(III) of the Andean 

Trade Preference Act (19 U.S.C. 

3203)) ................................................ Free No change No change On or before 

12/31/2006

9902.52.09 Woven fabrics of cotton, all the foregoing certified by the importer as 

containing 100 percent pima cotton 

grown in the United States, as suitable for use in making men’s and 

boys’ shirts, and as imported by or 

for the benefit of a manufacturer of 

men’s and boys’ shirts (provided for 

in section 204(b)(3)(B)(i)(III) of the 

Andean Trade Preference Act (19 

U.S.C. 3203)) .................................... Free No change No change On or before 

12/31/2006 ’’. 

1 (2) DEFINITIONS AND LIMITATION ON QUAN2 TITY OF IMPORTS.—The U.S. Notes to subchapter II 

3 of chapter 99 are amended by adding at the end the 

4 following:

5 ‘‘18. For purposes of subheadings 9902.52.08 and 

6 9902.52.09, the term ‘making’ means cutting and 

7 sewing in the United States, and the term ‘manufac8 turer’ means a person or entity that cuts and sews 

9 in the United States. 

10 ‘‘19. The aggregate quantity of cotton fabrics entered 

11 under subheading 9902.52.08 from January 1 to De12 cember 31 of each year, inclusive, by or on behalf 

13 of each manufacturer of men’s and boys’ shirts shall 

14 be limited to 85 percent of the total square meter 

15 equivalents of all imported cotton woven fabric used 

16 by such manufacturer in cutting and sewing men’s 
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1 and boys’ cotton shirts in the United States and pur2 chased by such manufacturer during calendar year 

3 2000.’’.

4 (b) DETERMINATION OF TARIFF-RATE QUOTAS.—

5 (1) AUTHORITY TO ISSUE LICENSES AND LI6 CENSE USE.—In order to implement the limitation 

7 on the quantity of cotton woven fabrics that may be 

8 entered under subheading 9902.52.08 of the Har9 monized Tariff Schedule of the United States, as re10 quired by U.S. Note 19 to subchapter II of chapter 

11 99 of such Schedule, the Secretary of Commerce 

12 shall issue licenses to eligible manufacturers under 

13 subheading 9902.52.08, specifying the restrictions 

14 under each such license on the quantity of cotton 

15 woven fabrics that may be entered each year by or 

16 on behalf of the manufacturer. A licensee may as17 sign the authority (in whole or in part) under the li18 cense to import fabric under subheading 9902.52.08 

19 of such Schedule. 

20 (2) LICENSES UNDER U.S. NOTE 19.—For pur21 poses of U.S. Note 19 to subchapter II of chapter 

22 99 of the Harmonized Tariff Schedule of the United 

23 States, the Secretary of Commerce shall issue a li24 cense to a manufacturer within 60 days after the 

25 manufacturer files with the Secretary of Commerce 
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1 an application containing a notarized affidavit from 

2 an officer of the manufacturer that the manufac3 turer is eligible to receive a license and stating the 

4 quantity of imported cotton woven fabric purchased 

5 during calendar year 2000 for use in the cutting and 

6 sewing men’s and boys’ shirts in the United States. 

7 (3) AFFIDAVITS.—For purposes of an affidavit 

8 described in this subsection, the date of purchase 

9 shall be—

10 (A) the invoice date if the manufacturer is 

11 not the importer of record; and 

12 (B) the date of entry if the manufacturer 

13 is the importer of record. 

14 SEC. 2. COTTON TRUST FUND. 

15 (a) ESTABLISHMENT OF TRUST FUND.—

16 (1) IN GENERAL.—There is established in the 

17 Treasury of the United States a trust fund to be 

18 known as the ‘‘Pima Cotton Trust Fund’’ (in this 

19 section referred to as the ‘‘Trust Fund’’), consisting 

20 of such amounts as may be transferred to the Trust 

21 Fund under paragraph (2). 

22 (2) TRANSFER OF AMOUNTS.—

23 (A) IN GENERAL.—Beginning October 1, 

24 2005, the Secretary of the Treasury shall trans25 fer to the Trust Fund, from the general fund
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1 of the Treasury, amounts determined by the 

2 Secretary of the Treasury to be equivalent to 

3 the amounts received in the general fund that 

4 are attributable to duties received since Janu5 ary 1, 1994, on articles under subheadings 

6 5208.21.60, 5208.22.80, 5208.29.80, 

7 5208.31.80, 5208.32.50, 5208.39.80, 

8 5208.41.80, 5208.42.50, 5208.49.80, 

9 5208.51.80, 5208.52.50, 5208.59.80, 

10 5210.21.80, and 5210.31.80 of the Harmonized 

11 Tariff Schedule of the United States, subject to 

12 the limitation in subparagraph (B). 

13 (B) LIMITATION.—The Secretary may not 

14 transfer more than $16,000,000 to the Trust 

15 fund in any fiscal year, and may not transfer 

16 any amount beginning on or after October 1, 

17 2007. 

18 (3) DISTRIBUTION OF FUNDS.—From amounts 

19 in the Trust Fund, the Commissioner of the Bureau 

20 of Customs and Border Protection shall make the 

21 following payments annually beginning in fiscal year 

22 2005: 

23 (A) 25 percent of the amounts in the 

24 Trust Fund shall be paid annually to a nation25 ally recognized association established for the 
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1 promotion of pima cotton grown in the United 

2 States for the use in textile and apparel goods. 

3 (B) 25 percent of the amounts in the 

4 Trust Fund shall be paid annually to yarn spin5 ners of pima cotton grown in the United States, 

6 and shall be allocated to each spinner in an 

7 amount that bears the same ratio as—

8 (i) the spinner’s production of ring 

9 spun cotton yarns, measuring less than 

10 83.33 decitex (exceeding 120 metric num11 ber) from pima cotton grown in the United 

12 States in single and plied form during cal13 endar year 2002 (as evidenced by an affi14 davit provided by the spinner) bears to—

15 (ii) the production of the yarns de16 scribed in clause (i) during calendar year 

17 2002 for all spinners who qualify under 

18 this subparagraph. 

19 (C) 50 percent of the amounts in the Trust 

20 Fund shall be paid annually to those manufac21 turers who cut and sew cotton shirts in the 

22 United States who certify that they used im23 ported cotton fabric during the period January 

24 1, 1998, through July 1, 2003, and shall be al-
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1 located to each such manufacturer in an 

2 amount that bears the same ratio as—

3 (i) the dollar value (excluding duty, 

4 shipping, and related costs) of imported 

5 woven cotton shirting fabric of 80s or 

6 higher count and 2-ply in warp purchased 

7 by the manufacturer during calendar year 

8 2002 (as evidenced by an affidavit from 

9 the manufacturer that meets the require10 ments of paragraph (4)) used in the manu11 facturing of men’s and boys’ cotton shirts, 

12 bears to—

13 (ii) the dollar value (excluding duty, 

14 shipping, and related costs) of the fabric 

15 described in clause (i) purchased during 

16 calendar year 2002 by all manufacturers 

17 who qualify under this subparagraph. 

18 (4) AFFIDAVIT OF SHIRTING MANUFACTUR19 ERS.—The affidavit required by paragraph (3)(C) is 

20 a notarized affidavit provided by an officer of the 

21 manufacturer of men’s and boys’ shirts concerned 

22 that affirms—

23 (A) that the manufacturer used imported 

24 cotton fabric during the period January 1, 

25 1998, through July 1, 2003, to cut and sew 
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1 men’s and boys’ woven cotton shirts in the 

2 United States; 

3 (B) the dollar value of imported woven cot4 ton shirting fabric of 80s or higher count and 

5 2-ply in warp purchased during calendar year 

6 2002; 

7 (C) that the manufacturer maintains in8 voices along with other supporting documenta9 tion (such as price lists and other technical de10 scriptions of the fabric qualities) showing the 

11 dollar value of such fabric purchased, the date 

12 of purchase, and evidencing the fabric as woven 

13 cotton fabric of 80s or higher count and 2-ply 

14 in warp; and 

15 (D) that the fabric was suitable for use in 

16 the manufacturing of men’s and boys’ cotton 

17 shirts. 

18 (5) DATE OF PURCHASE.—For purposes of the 

19 affidavit under paragraph (4), the date of purchase 

20 shall be the invoice date, and the dollar value shall 

21 be determined excluding duty, shipping, and related 

22 costs. 

23 (6) AFFIDAVIT OF YARN SPINNERS.—The affi24 davit required by paragraph (3)(B) is a notarized af-
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1 fidavit provided by an officer of the producer of ring 

2 spun yarns that affirms—

3 (A) that the producer used pima cotton 

4 grown in the United States during the period 

5 January 1, 2002, through December 31, 2002, 

6 to produce ring spun cotton yarns, measuring 

7 less than 83.33 decitex (exceeding 120 metric 

8 number), in single and plied form during 2002; 

9 (B) the quantity, measured in pounds, of 

10 ring spun cotton yarns, measuring less than 

11 83.33 decitex (exceeding 120 metric number), 

12 in single and plied form during calendar year 

13 2002; and 

14 (C) that the producer maintains sup15 porting documentation showing the quantity of 

16 such yarns produced, and evidencing the yarns 

17 as ring spun cotton yarns, measuring less than 

18 83.33 decitex (exceeding 120 metric number), 

19 in single and plied form during calendar year 

20 2002. 

21 (7) NO APPEAL.—Any amount paid by the 

22 Commissioner of the Bureau of Customs and Border 

23 Protection under this section shall be final and not 

24 subject to appeal or protest.

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