108TH CONGRESS

2D SESSION S. 2261

AN ACT

To expand certain preferential trade treatment for Haiti.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Haiti Economic Recov5 ery Opportunity Act of 2004’’.
 †

2

S 2261 ES

1 SEC. 2. TRADE BENEFITS TO HAITI.

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

3 Recovery Act (19 U.S.C. 2701 et seq.) is amended by in4 serting after section 213 the following new section:

5 ‘‘SEC. 213A. SPECIAL RULE FOR HAITI.

6 ‘‘(a) IN GENERAL.—In addition to any other pref7 erential treatment under this Act, beginning on October

8 1, 2003, and in each of the 7 succeeding 1-year periods,

9 apparel articles described in subsection (b) that are im10 ported directly into the customs territory of the United

11 States from Haiti shall enter the United States free of

12 duty, subject to the limitations described in subsections

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

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

15 ‘‘(b) APPAREL ARTICLES DESCRIBED.—Apparel arti16 cles described in this subsection are apparel articles that

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

18 combination of fabrics, fabric components, components

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

20 origin of the fabrics, components, or yarns.

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

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

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

24 October 1, 2003, to a quantity of apparel articles

25 that is equal to 1.5 percent of the aggregate square

26 meter equivalents of all apparel articles imported
†

3

S 2261 ES

1 into the United States during the 12-month period

2 beginning October 1, 2002; and

3 ‘‘(2) during the 12-month period beginning on

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

5 apparel articles that is equal to the product of—

6 ‘‘(A) the percentage applicable during the

7 previous 12-month period plus 0.5 percent (but

8 not over 3.5 percent); and

9 ‘‘(B) the aggregate square meter equiva10 lents of all apparel articles imported into the

11 United States during the 12-month period that

12 ends on September 30 of that year.

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

14 eligible for preferential treatment under this section if the

15 President determines and certifies to Congress that Haiti

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

17 Haiti—

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

19 progress toward establishing—

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

21 private property rights, incorporates an open

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

24 measures such as price controls, subsidies, and

25 government ownership of economic assets;
†

4

S 2261 ES

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

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

3 equal protection under the law;

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

5 States trade and investment, including by—

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

10 ‘‘(ii) the protection of intellectual

11 property; and

12 ‘‘(iii) the resolution of bilateral trade

13 and investment disputes;

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

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

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

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

22 bribery, such as signing and implementing the

23 Convention on Combating Bribery of Foreign

24 Public Officials in International Business

25 Transactions; and
†

5

S 2261 ES

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

5 forced or compulsory labor, a minimum age for

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

8 hours of work, and occupational safety and

9 health;

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

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

14 internationally recognized human rights or provide

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

17 rights violations and terrorist activities.

18 ‘‘(e) CONDITIONS REGARDING ENFORCEMENT OF

19 CIRCUMVENTION.—

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

21 under subsection (b) shall not apply unless the

22 President certifies to Congress that Haiti is meeting

23 the following conditions:

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

25 system, domestic laws, and enforcement proce-
†

6

S 2261 ES

1 dures applicable to articles described in sub2 section (b) to prevent unlawful transshipment

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

5 into the United States.

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

9 verification teams to have the access necessary

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

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

13 basis, at the request of the Bureau of Customs

14 and Border Protection, on the total exports

15 from and imports into that country of articles

16 described in subsection (b), consistent with the

17 manner in which the records are kept by Haiti.

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

19 the United States to address and take action

20 necessary to prevent circumvention.

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

22 and exporters of articles described in subsection

23 (b) in that country to maintain complete

24 records of the production and the export of the

25 articles, including materials used in the produc-
†

7

S 2261 ES

1 tion, for at least 2 years after the production or

2 export (as the case may be).

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

4 basis, at the request of the Bureau of Customs

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

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

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

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

14 violating or evading existing customs, country

15 of origin labeling, or trade laws of the United

16 States or Haiti relating to imports of textile

17 and apparel goods, if such action results—

18 ‘‘(i) in the avoidance of tariffs,

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

23 ‘‘(ii) in obtaining preferential tariff

24 treatment.’’.
†

8

S 2261 ES

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

3 under section 213(b)(2)(D)(iii).’’.

4 (b) EFFECTIVE DATE.—

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

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

7 or withdrawn from warehouse for consumption, on

8 or after October 1, 2003.

9 (2) RETROACTIVE APPLICATION TO CERTAIN

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

13 United States Customs Service before the 90th day

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

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

17 by subsection (a)—

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

19 2003, and before the date of the enactment of

20 this Act, and

21 (B) with respect to which there would have

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

9

S 2261 ES

1 shall be liquidated or reliquidated as though such

2 amendment applied to such entry or withdrawal.

Passed the Senate July 16, 2004.

Attest:

Secretary.
108TH CONGRESS

2D SESSION S. 2261

AN ACT

To expand certain preferential trade treatment for

Haiti.