I 

113TH CONGRESS 

2D SESSION H. R. 5291 

To amend the Harmonized Tariff Schedule of the United States with respect 

to goods exported for processing abroad and reimported, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2014 

Mr. OWENS introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Harmonized Tariff Schedule of the United 

States with respect to goods exported for processing 

abroad and reimported, 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. TREATMENT OF GOODS EXPORTED FOR MODI4 FICATION AND REIMPORTED. 

5 (a) TEXTILE AND APPAREL GOODS.— 

6 (1) IN GENERAL.—Subchapter II of chapter 98 

7 of the Harmonized Tariff Schedule of the United 

8 States is amended by inserting in numerical se9 quence the following subheading, with the article deVerDate Mar 15 2010 21:57 Aug 07, 2014 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5291.IH H5291

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1 scription having the same degree of indentation as 

2 the article description for subheading 9802.00.60: 

‘‘ 9802.00.70 Textile and apparel goods classifiable under chapter 61, except goods 

of heading 9802.00.90 and goods 

imported under provisions of subchapter XIX or XX of this chapter, 

if exported for further processing ... A duty upon 

the full value 

of the imported 

article, less the 

cost or value of 

materials, including thread, 

yarn, fabric, or 

components the 

product of the 

United States 

and provided 

for under any 

of headings 

5106 through 

5110, 5204 

through 5207, 

5306 through 

5308, 5401 

through 5406, 

or 5508 

through 5511, 

or chapter 60 

or 61 (see U.S. 

note 4 of this 

subchapter) 

Free (CL, CO, 

IL, JO, KR, P, 

PA, PE, SG) 

A duty upon 

the full value 

of the imported 

article, less the 

cost or value of 

materials, including thread, 

yarn, fabric, or 

components the 

product of the 

United States 

and provided 

for under any 

of headings 

5106 through 

5110, 5204 

through 5207, 

5306 through 

5308, 5401 

through 5406, 

or 5508 

through 5511, 

or chapter 60 

or 61 (see U.S. 

note 4 of this 

subchapter) 

(AU, B, BH, 

C, CA, E, MA, 

MX, OM) 

Free, for products described 

in U.S. note 7 

to this subchapter 

Free, for qualifying articles 

from sub-Saharan African 

countries enumerated in 

U.S. note 7 to 

this subchapter 

A duty upon 

the full value 

of the imported 

article, less the 

cost or value of 

materials, including thread, 

yarn, fabric, or 

components the 

product of the 

United States 

and provided 

for under any 

of headings 

5106 through 

5110, 5204 

through 5207, 

5306 through 

5308, 5401 

through 5406, 

or 5508 

through 5511, 

or chapter 60 

or 61 (see U.S. 

note 4 of this 

subchapter) ’’. 

3 (2) CONFORMING AMENDMENT.—U.S. note 4 to 

4 subchapter II of chapter 98 of the Harmonized Tar5 iff Schedule of the United States is amended, in the 

6 matter preceding paragraph (a), by inserting ‘‘and 

7 subheading 9802.00.70’’ after ‘‘9802.00.90’’. 


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1 (b) COMMINGLING OF FUNGIBLE GOODS EXPORTED

2 FOR REPAIRS OR ALTERATIONS.—U.S. note 3 to sub3 chapter II of chapter 98 of the Harmonized Tariff Sched4 ule of the United States is amended by adding at the end 

5 the following: 

6 ‘‘(e) For purposes of subheadings 9802.00.40 and 

7 9802.00.50, if an article is exported from the United 

8 States for the purpose of repairing or altering the article 

9 and the article is subsequently imported into the United 

10 States— 

11 ‘‘(1) the article shall be considered to be the 

12 same article that was exported without regard to 

13 whether the article contains 1 or more components 

14 recovered from an identical or similar article that 

15 was also exported from the United States; and 

16 ‘‘(2) the cost or value of any such components 

17 shall not be included in the value of the article when 

18 the article enters the United States.’’. 

19 (c) ARTICLES PREVIOUSLY IMPORTED.— 

20 (1) DUTY TREATMENT.—The article description 

21 for heading 9801.00.20 of the Harmonized Tariff 

22 Schedule of the United States is amended to read as 

23 follows: ‘‘Articles, previously imported, with respect 

24 to which the duty was paid upon such previous im25 portation or which were imported previously free of 


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1 duty, if (1) reimported, without having been ad2 vanced in value or improved in condition by any 

3 process of manufacture or other means while abroad, 

4 after having been exported under lease or similar 

5 use agreements, bailment agreements, or for 

6 warehousing, repackaging, or both, and (2) re7 imported by or for the account of the person who 

8 imported it into, and exported it from, the United 

9 States.’’. 

10 (2) COMMINGLING OF FUNGIBLE GOODS.—The 

11 U.S. notes to subchapter I of chapter 98 of the Har12 monized Tariff Schedule of the United States are 

13 amended by adding at the end the following new 

14 note: 

15 ‘‘3.(a) For purposes of heading 9801.00.20— 

16 ‘‘(i) fungible goods exported from the United 

17 States may be commingled, and 

18 ‘‘(ii) the origin, value, and classification of such 

19 goods may be accounted for using an inventory man20 agement method. 

21 ‘‘(b) If a person chooses to use an inventory manage22 ment method under paragraph (a) with respect to fungible 

23 goods, the person shall use the same inventory manage24 ment method for any goods with respect to which the per25 son claims fungibility. 


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1 ‘‘(c) For purposes of this note— 

2 ‘‘(i) the term ‘fungible good’ means any good 

3 that is commercially interchangeable with another 

4 good and that has properties that are essentially 

5 identical to the properties of another good; and 

6 ‘‘(ii) the term ‘inventory management method’ 

7 means any method for managing inventory that is 

8 based on generally accepted accounting principles.’’. 

9 (d) USE OF MANUFACTURER’S IDENTIFICATION

10 CODE FOR TEXTILE AND APPAREL PRODUCTS.—The 

11 U.S. notes to chapter 98 of the Harmonized Tariff Sched12 ule of the United States are amended by adding at the 

13 end the following new note: 

14 ‘‘4. For textile and apparel products classified in sub15 chapter I or II of this chapter, the manufacturer’s identi16 fication code (MID) of the facility that repairs, alters, as17 sembles, processes, stores, or otherwise handles the prod18 ucts may be used on any customs entry documentation 

19 or electronic data transmission that requires identification 

20 of the manufacturer.’’. 

21 SEC. 2. EFFECTIVE DATE. 

22 (a) IN GENERAL.—Subject to subsection (b), the 

23 amendments made by this Act shall apply to goods en24 tered, or withdrawn from warehouse for consumption, on 


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1 or after the 15th day after the date of the enactment of 

2 this Act. 

3 (b) RETROACTIVE APPLICATION.— 

4 (1) IN GENERAL.—Notwithstanding section 514 

5 of the Tariff Act of 1930 (19 U.S.C. 1514) or any 

6 other provision of law, and subject to paragraph (2), 

7 the entry of any good— 

8 (A) that was liquidated or made on or 

9 after January 9, 2008, and before the 15th day 

10 after the date of the enactment of this Act, and 

11 (B) with respect to which there would have 

12 been no duty if the amendment made by section 

13 1(c)(1) applied to such entry, 

14 shall be liquidated or reliquidated as if such amend15 ment applied to such entry. 

16 (2) REQUESTS.—A liquidation or reliquidation 

17 may be made under paragraph (1) with respect to 

18 an entry only if a request therefor is filed with U.S. 

19 Customs and Border Protection before the later of 

20 the 180th day after the date of the enactment of 

21 this Act or the 180th day after the date of liquida22 tion of the entry, that contains sufficient informa23 tion to enable U.S. Customs and Border Protec24 tion— 

25 (A) to locate the entry; or 


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1 (B) to reconstruct the entry if it cannot be 

2 located. 

3 (3) PAYMENT OF AMOUNTS OWED.—Any 

4 amount owed by the United States pursuant to the 

5 liquidation or reliquidation of an entry of an article 

6 under paragraph (1) shall be paid, without interest, 

7 not later than 90 days after the date of the liquida8 tion or reliquidation (as the case may be). 

9 (4) DEFINITION.—In this subsection, the term 

10 ‘‘entry’’ includes a withdrawal from warehouse for 

11 consumption. 

Æ 


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