108TH CONGRESS

2D SESSION S. 2677

AN ACT

To implement the United States-Morocco Free Trade

Agreement.

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘United States-Morocco Free Trade Agreement Imple6 mentation Act’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

Sec. 3. Definitions.

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING

TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.

Sec. 102. Relationship of the Agreement to United States and State law.

Sec. 103. Implementing actions in anticipation of entry into force and initial

regulations.

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed actions.

Sec. 105. Administration of dispute settlement proceedings.

Sec. 106. Arbitration of claims.

Sec. 107. Effective dates; effect of termination.

TITLE II—CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.

Sec. 202. Additional duties on certain agricultural goods.

Sec. 203. Rules of origin.

Sec. 204. Enforcement relating to trade in textile and apparel goods.

Sec. 205. Regulations.

TITLE III—RELIEF FROM IMPORTS

Sec. 301. Definitions.

Subtitle A—Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.

Sec. 312. Commission action on petition.

Sec. 313. Provision of relief.

Sec. 314. Termination of relief authority.

Sec. 315. Compensation authority.

Sec. 316. Confidential business information.

Subtitle B—Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.

Sec. 322. Determination and provision of relief.

Sec. 323. Period of relief.

Sec. 324. Articles exempt from relief.

Sec. 325. Rate after termination of import relief.

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

3 SEC. 2. PURPOSES.

4 The purposes of this Act are—
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1 (1) to approve and implement the Free Trade

2 Agreement between the United States and Morocco

3 entered into under the authority of section 2103(b)

4 of the Bipartisan Trade Promotion Authority Act of

5 2002 (19 U.S.C. 3803(b));

6 (2) to strengthen and develop economic rela7 tions between the United States and Morocco for

8 their mutual benefit;

9 (3) to establish free trade between the 2 nations

10 through the reduction and elimination of barriers to

11 trade in goods and services and to investment; and

12 (4) to lay the foundation for further coopera13 tion to expand and enhance the benefits of such

14 Agreement.

15 SEC. 3. DEFINITIONS.

16 In this Act:

17 (1) AGREEMENT.—The term ‘‘Agreement’’

18 means the United States-Morocco Free Trade Agree19 ment approved by Congress under section 101(a)(1).

20 (2) HTS.—The term ‘‘HTS’’ means the Har21 monized Tariff Schedule of the United States.

22 (3) TEXTILE OR APPAREL GOOD.—The term

23 ‘‘textile or apparel good’’ means a good listed in the

24 Annex to the Agreement on Textiles and Clothing
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1 referred to in section 101(d)(4) of the Uruguay

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

3 TITLE I—APPROVAL OF, AND

4 GENERAL PROVISIONS RE5 LATING TO, THE AGREEMENT

6 SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE

7 AGREEMENT.

8 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

9 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of

10 the Bipartisan Trade Promotion Authority Act of 2002

11 (19 U.S.C. 3805) and section 151 of the Trade Act of

12 1974 (19 U.S.C. 2191), Congress approves—

13 (1) the United States-Morocco Free Trade

14 Agreement entered into on June 15, 2004, with Mo15 rocco and submitted to Congress on

16 lllllll, 2004; and

17 (2) the statement of administrative action pro18 posed to implement the Agreement that was sub19 mitted to Congress on lllllll, 2004.

20 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

21 AGREEMENT.—At such time as the President determines

22 that Morocco has taken measures necessary to bring it

23 into compliance with those provisions of the Agreement

24 that are to take effect on the date on which the Agreement

25 enters into force, the President is authorized to exchange
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1 notes with the Government of Morocco providing for the

2 entry into force, on or after January 1, 2005, of the

3 Agreement with respect to the United States.

4 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED

5 STATES AND STATE LAW.

6 (a) RELATIONSHIP OF AGREEMENT TO UNITED

7 STATES LAW.—

8 (1) UNITED STATES LAW TO PREVAIL IN CON9 FLICT.—No provision of the Agreement, nor the ap10 plication of any such provision to any person or cir11 cumstance, which is inconsistent with any law of the

12 United States shall have effect.

13 (2) CONSTRUCTION.—Nothing in this Act shall

14 be construed—

15 (A) to amend or modify any law of the

16 United States, or

17 (B) to limit any authority conferred under

18 any law of the United States,

19 unless specifically provided for in this Act.

20 (b) RELATIONSHIP OF AGREEMENT TO STATE

21 LAW.—

22 (1) LEGAL CHALLENGE.—No State law, or the

23 application thereof, may be declared invalid as to

24 any person or circumstance on the ground that the

25 provision or application is inconsistent with the
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1 Agreement, except in an action brought by the

2 United States for the purpose of declaring such law

3 or application invalid.

4 (2) DEFINITION OF STATE LAW.—For purposes

5 of this subsection, the term ‘‘State law’’ includes—

6 (A) any law of a political subdivision of a

7 State; and

8 (B) any State law regulating or taxing the

9 business of insurance.

10 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI11 VATE REMEDIES.—No person other than the United

12 States—

13 (1) shall have any cause of action or defense

14 under the Agreement or by virtue of congressional

15 approval thereof; or

16 (2) may challenge, in any action brought under

17 any provision of law, any action or inaction by any

18 department, agency, or other instrumentality of the

19 United States, any State, or any political subdivision

20 of a State, on the ground that such action or inac21 tion is inconsistent with the Agreement.

22 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF

23 ENTRY INTO FORCE AND INITIAL REGULA24 TIONS.

25 (a) IMPLEMENTING ACTIONS.—
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1 (1) PROCLAMATION AUTHORITY.—After the

2 date of the enactment of this Act—

3 (A) the President may proclaim such ac4 tions, and

5 (B) other appropriate officers of the

6 United States Government may issue such reg7 ulations,

8 as may be necessary to ensure that any provision of

9 this Act, or amendment made by this Act, that takes

10 effect on the date the Agreement enters into force

11 is appropriately implemented on such date, but no

12 such proclamation or regulation may have an effec13 tive date earlier than the date the Agreement enters

14 into force.

15 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

16 ACTIONS.—Any action proclaimed by the President

17 under the authority of this Act that is not subject

18 to the consultation and layover provisions under sec19 tion 104 may not take effect before the 15th day

20 after the date on which the text of the proclamation

21 is published in the Federal Register.

22 (3) WAIVER OF 15-DAY RESTRICTION.—The 15-

23 day restriction in paragraph (2) on the taking effect

24 of proclaimed actions is waived to the extent that

25 the application of such restriction would prevent the
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1 taking effect on the date the Agreement enters into

2 force of any action proclaimed under this section.

3 (b) INITIAL REGULATIONS.—Initial regulations nec4 essary or appropriate to carry out the actions required by

5 or authorized under this Act or proposed in the statement

6 of administrative action submitted under section

7 101(a)(2) to implement the Agreement shall, to the max8 imum extent feasible, be issued within 1 year after the

9 date on which the Agreement enters into force. In the case

10 of any implementing action that takes effect on a date

11 after the date on which the Agreement enters into force,

12 initial regulations to carry out that action shall, to the

13 maximum extent feasible, be issued within 1 year after

14 such effective date.

15 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR,

16 AND EFFECTIVE DATE OF, PROCLAIMED AC17 TIONS.

18 If a provision of this Act provides that the implemen19 tation of an action by the President by proclamation is

20 subject to the consultation and layover requirements of

21 this section, such action may be proclaimed only if—

22 (1) the President has obtained advice regarding

23 the proposed action from—
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1 (A) the appropriate advisory committees

2 established under section 135 of the Trade Act

3 of 1974 (19 U.S.C. 2155); and

4 (B) the United States International Trade

5 Commission;

6 (2) the President has submitted to the Com7 mittee on Finance of the Senate and the Committee

8 on Ways and Means of the House of Representatives

9 a report that sets forth—

10 (A) the action proposed to be proclaimed

11 and the reasons therefor; and

12 (B) the advice obtained under paragraph

13 (1);

14 (3) a period of 60 calendar days, beginning on

15 the first day on which the requirements set forth in

16 paragraphs (1) and (2) have been met has expired;

17 and

18 (4) the President has consulted with such Com19 mittees regarding the proposed action during the pe20 riod referred to in paragraph (3).

21 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO22 CEEDINGS.

23 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

24 The President is authorized to establish or designate with25 in the Department of Commerce an office that shall be
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1 responsible for providing administrative assistance to pan2 els established under chapter 20 of the Agreement. The

3 office may not be considered to be an agency for purposes

4 of section 552 of title 5, United States Code.

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated for each fiscal year after

7 fiscal year 2004 to the Department of Commerce such

8 sums as may be necessary for the establishment and oper9 ations of the office under subsection (a) and for the pay10 ment of the United States share of the expenses of panels

11 established under chapter 20 of the Agreement.

12 SEC. 106. ARBITRATION OF CLAIMS.

13 The United States is authorized to resolve any claim

14 against the United States covered by article

15 10.15.1(a)(i)(C) or article 10.15.1(b)(i)(C) of the Agree16 ment, pursuant to the Investor-State Dispute Settlement

17 procedures set forth in section B of chapter 10 of the

18 Agreement.

19 SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

20 (a) EFFECTIVE DATES.—Except as provided in sub21 section (b), the provisions of this Act and the amendments

22 made by this Act take effect on the date the Agreement

23 enters into force.

24 (b) EXCEPTIONS.—Sections 1 through 3 and this

25 title take effect on the date of the enactment of this Act.
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1 (c) TERMINATION OF THE AGREEMENT.—On the

2 date on which the Agreement terminates, the provisions

3 of this Act (other than this subsection) and the amend4 ments made by this Act shall cease to be effective.

5 TITLE II—CUSTOMS PROVISIONS

6 SEC. 201. TARIFF MODIFICATIONS.

7 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

8 AGREEMENT.—

9 (1) PROCLAMATION AUTHORITY.—The Presi10 dent may proclaim—

11 (A) such modifications or continuation of

12 any duty,

13 (B) such continuation of duty-free or ex14 cise treatment, or

15 (C) such additional duties,

16 as the President determines to be necessary or ap17 propriate to carry out or apply articles 2.3, 2.5, 2.6,

18 4.1, 4.3.9, 4.3.10, 4.3.11, 4.3.13, 4.3.14, and 4.3.15,

19 and Annex IV of the Agreement.

20 (2) EFFECT ON MOROCCAN GSP STATUS.—Not21 withstanding section 502(a)(1) of the Trade Act of

22 1974 (19 U.S.C. 2462(a)(1)), the President shall

23 terminate the designation of Morocco as a bene24 ficiary developing country for purposes of title V of
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1 the Trade Act of 1974 on the date of entry into

2 force of the Agreement.

3 (b) OTHER TARIFF MODIFICATIONS.—Subject to the

4 consultation and layover provisions of section 104, the

5 President may proclaim—

6 (1) such modifications or continuation of any

7 duty,

8 (2) such modifications as the United States

9 may agree to with Morocco regarding the staging of

10 any duty treatment set forth in Annex IV of the

11 Agreement,

12 (3) such continuation of duty-free or excise

13 treatment, or

14 (4) such additional duties,

15 as the President determines to be necessary or appropriate

16 to maintain the general level of reciprocal and mutually

17 advantageous concessions with respect to Morocco pro18 vided for by the Agreement.

19 (c) CONVERSION TO AD VALOREM RATES.—For pur20 poses of subsections (a) and (b), with respect to any good

21 for which the base rate in the Tariff Schedule of the

22 United States to Annex IV of the Agreement is a specific

23 or compound rate of duty, the President may substitute

24 for the base rate an ad valorem rate that the President

25 determines to be equivalent to the base rate.
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1 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL2 TURAL GOODS.

3 (a) DEFINITIONS.—In this section:

4 (1) AGRICULTURAL SAFEGUARD GOOD.—The

5 term ‘‘agricultural safeguard good’’ means a good—

6 (A) that qualifies as an originating good

7 under section 203;

8 (B) that is included in the U.S. Agricul9 tural Safeguard List set forth in Annex 3–A of

10 the Agreement; and

11 (C) for which a claim for preferential

12 treatment under the Agreement has been made.

13 (2) APPLICABLE NTR (MFN) RATE OF DUTY.—

14 The term ‘‘applicable NTR (MFN) rate of duty’’

15 means, with respect to an agricultural safeguard

16 good, a rate of duty that is the lesser of—

17 (A) the column 1 general rate of duty that

18 would have been imposed under the HTS on the

19 same agricultural safeguard good entered, with20 out a claim for preferential tariff treatment, on

21 the date on which the additional duty is im22 posed under subsection (b); or

23 (B) the column 1 general rate of duty that

24 would have been imposed under the HTS on the

25 same agricultural safeguard good entered, with-
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1 out a claim for preferential tariff treatment, on

2 December 31, 2004.

3 (3) F.O.B.—The term ‘‘F.O.B.’’ means free on

4 board, regardless of the mode of transportation, at

5 the point of direct shipment by the seller to the

6 buyer.

7 (4) SCHEDULE RATE OF DUTY.—The term

8 ‘‘schedule rate of duty’’ means, with respect to an

9 agricultural safeguard good, the rate of duty for that

10 good set out in the Tariff Schedule of the United

11 States to Annex IV of the Agreement.

12 (5) TRIGGER PRICE.—The ‘‘trigger price’’ for a

13 good means the trigger price indicated for that good

14 in the U.S. Agricultural Safeguard List set forth in

15 Annex 3–A of the Agreement or any amendment

16 thereto.

17 (6) UNIT IMPORT PRICE.—The ‘‘unit import

18 price’’ of a good means the price of the good deter19 mined on the basis of the F.O.B. import price of the

20 good, expressed in either dollars per kilogram or dol21 lars per liter, whichever unit of measure is indicated

22 for the good in the U.S. Agricultural Safeguard List

23 set forth in Annex 3–A of the Agreement.

24 (b) ADDITIONAL DUTIES ON AGRICULTURAL SAFE25 GUARD GOODS.—
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1 (1) ADDITIONAL DUTIES.—In addition to any

2 duty proclaimed under subsection (a) or (b) of sec3 tion 201, and subject to paragraphs (3), (4), (5),

4 and (6) of this subsection, the Secretary of the

5 Treasury shall assess a duty on an agricultural safe6 guard good, in the amount determined under para7 graph (2), if the Secretary determines that the unit

8 import price of the good when it enters the United

9 States is less than the trigger price for that good.

10 (2) CALCULATION OF ADDITIONAL DUTY.—The

11 additional duty assessed under this subsection on an

12 agricultural safeguard good shall be an amount de13 termined in accordance with the following table:

If the excess of the trigger price over The additional duty is an

the unit import price is: amount equal to:

Not more than 10 percent of the trigger price 0.

More than 10 percent but not more than 40

percent of the trigger price ........................... 30 percent of the excess of the applicable NTR (MFN) rate of duty

over the schedule rate of duty.

More than 40 percent but not more than 60

percent of the trigger price ........................... 50 percent of such excess.

More than 60 percent but not more than 75

percent of the trigger price ........................... 70 percent of such excess.

More than 75 percent of the trigger price ....... 100 percent of such excess.

14 (3) EXCEPTIONS.—No additional duty shall be

15 assessed on a good under this subsection if, at the

16 time of entry, the good is subject to import relief

17 under—

18 (A) subtitle A of title III of this Act; or

19 (B) chapter 1 of title II of the Trade Act

20 of 1974 (19 U.S.C. 2251 et seq.).
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1 (4) TERMINATION.—The assessment of an ad2 ditional duty on a good under this subsection shall

3 cease to apply to that good on the date on which

4 duty-free treatment must be provided to that good

5 under the Tariff Schedule of the United States to

6 Annex IV of the Agreement.

7 (5) TARIFF-RATE QUOTAS.—If an agricultural

8 safeguard good is subject to a tariff-rate quota

9 under the Agreement, any additional duty assessed

10 under this subsection shall be applied only to over11 quota imports of the good.

12 (6) NOTICE.—Not later than 60 days after the

13 date on which the Secretary of the Treasury assesses

14 an additional duty on a good under this subsection,

15 the Secretary shall notify the Government of Mo16 rocco in writing of such action and shall provide to

17 the Government of Morocco data supporting the as18 sessment of additional duties.

19 SEC. 203. RULES OF ORIGIN.

20 (a) APPLICATION AND INTERPRETATION.—In this

21 section:

22 (1) TARIFF CLASSIFICATION.—The basis for

23 any tariff classification is the HTS.

24 (2) REFERENCE TO HTS.—Whenever in this

25 section there is a reference to a heading or sub-
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1 heading, such reference shall be a reference to a

2 heading or subheading of the HTS.

3 (b) ORIGINATING GOODS.—

4 (1) IN GENERAL.—For purposes of this Act

5 and for purposes of implementing the preferential

6 tariff treatment provided for under the Agreement,

7 a good is an originating good if—

8 (A) the good is imported directly—

9 (i) from the territory of Morocco into

10 the territory of the United States; or

11 (ii) from the territory of the United

12 States into the territory of Morocco; and

13 (B)(i) the good is a good wholly the

14 growth, product, or manufacture of Morocco or

15 the United States, or both;

16 (ii) the good (other than a good to which

17 clause (iii) applies) is a new or different article

18 of commerce that has been grown, produced, or

19 manufactured in Morocco, the United States, or

20 both, and meets the requirements of paragraph

21 (2); or

22 (iii)(I) the good is a good covered by

23 Annex 4–A or 5–A of the Agreement;

24 (II)(aa) each of the nonoriginating mate25 rials used in the production of the good under-
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1 goes an applicable change in tariff classification

2 specified in such Annex as a result of produc3 tion occurring entirely in the territory of Mo4 rocco or the United States, or both; or

5 (bb) the good otherwise satisfies the re6 quirements specified in such Annex; and

7 (III) the good satisfies all other applicable

8 requirements of this section.

9 (2) REQUIREMENTS.—A good described in

10 paragraph (1)(B)(ii) is an originating good only if

11 the sum of—

12 (A) the value of each material produced in

13 the territory of Morocco or the United States,

14 or both, and

15 (B) the direct costs of processing oper16 ations performed in the territory of Morocco or

17 the United States, or both,

18 is not less than 35 percent of the appraised value of

19 the good at the time the good is entered into the ter20 ritory of the United States.

21 (c) CUMULATION.—

22 (1) ORIGINATING GOOD OR MATERIAL INCOR23 PORATED INTO GOODS OF OTHER COUNTRY.—An

24 originating good or a material produced in the terri25 tory of Morocco or the United States, or both, that
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1 is incorporated into a good in the territory of the

2 other country shall be considered to originate in the

3 territory of the other country.

4 (2) MULTIPLE PROCEDURES.—A good that is

5 grown, produced, or manufactured in the territory of

6 Morocco or the United States, or both, by 1 or more

7 producers, is an originating good if the good satis8 fies the requirements of subsection (b) and all other

9 applicable requirements of this section.

10 (d) VALUE OF MATERIALS.—

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the value of a material produced in the

13 territory of Morocco or the United States, or both,

14 includes the following:

15 (A) The price actually paid or payable for

16 the material by the producer of such good.

17 (B) The freight, insurance, packing, and

18 all other costs incurred in transporting the ma19 terial to the producer’s plant, if such costs are

20 not included in the price referred to in subpara21 graph (A).

22 (C) The cost of waste or spoilage resulting

23 from the use of the material in the growth, pro24 duction, or manufacture of the good, less the

25 value of recoverable scrap.
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1 (D) Taxes or customs duties imposed on

2 the material by Morocco, the United States, or

3 both, if the taxes or customs duties are not re4 mitted upon exportation from the territory of

5 Morocco or the United States, as the case may

6 be.

7 (2) EXCEPTION.—If the relationship between

8 the producer of a good and the seller of a material

9 influenced the price actually paid or payable for the

10 material, or if there is no price actually paid or pay11 able by the producer for the material, the value of

12 the material produced in the territory of Morocco or

13 the United States, or both, includes the following:

14 (A) All expenses incurred in the growth,

15 production, or manufacture of the material, in16 cluding general expenses.

17 (B) A reasonable amount for profit.

18 (C) Freight, insurance, packing, and all

19 other costs incurred in transporting the mate20 rial to the producer’s plant.

21 (e) PACKAGING AND PACKING MATERIALS AND CON22 TAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Pack23 aging and packing materials and containers for retail sale

24 and shipment shall be disregarded in determining whether

25 a good qualifies as an originating good, except to the ex-
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1 tent that the value of such packaging and packing mate2 rials and containers have been included in meeting the re3 quirements set forth in subsection (b)(2).

4 (f) INDIRECT MATERIALS.—Indirect materials shall

5 be disregarded in determining whether a good qualifies as

6 an originating good, except that the cost of such indirect

7 materials may be included in meeting the requirements set

8 forth in subsection (b)(2).

9 (g) TRANSIT AND TRANSSHIPMENT.—A good shall

10 not be considered to meet the requirement of subsection

11 (b)(1)(A) if, after exportation from the territory of Mo12 rocco or the United States, the good undergoes produc13 tion, manufacturing, or any other operation outside the

14 territory of Morocco or the United States, other than un15 loading, reloading, or any other operation necessary to

16 preserve the good in good condition or to transport the

17 good to the territory of the United States or Morocco.

18 (h) TEXTILE AND APPAREL GOODS.—

19 (1) DE MINIMIS AMOUNTS OF NONORIGINATING

20 MATERIALS.—

21 (A) IN GENERAL.—Except as provided in

22 subparagraph (B), a textile or apparel good

23 that is not an originating good because certain

24 fibers or yarns used in the production of the

25 component of the good that determines the tar-
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1 iff classification of the good do not undergo an

2 applicable change in tariff classification set out

3 in Annex 4–A of the Agreement shall be consid4 ered to be an originating good if the total

5 weight of all such fibers or yarns in that com6 ponent is not more than 7 percent of the total

7 weight of that component.

8 (B) CERTAIN TEXTILE OR APPAREL

9 GOODS.—A textile or apparel good containing

10 elastomeric yarns in the component of the good

11 that determines the tariff classification of the

12 good shall be considered to be an originating

13 good only if such yarns are wholly formed in

14 the territory of Morocco or the United States.

15 (C) YARN, FABRIC, OR GROUP OF FI16 BERS.—For purposes of this paragraph, in the

17 case of a textile or apparel good that is a yarn,

18 fabric, or group of fibers, the term ‘‘component

19 of the good that determines the tariff classifica20 tion of the good’’ means all of the fibers in the

21 yarn, fabric, or group of fibers.

22 (2) GOODS PUT UP IN SETS FOR RETAIL

23 SALE.—Notwithstanding the rules set forth in Annex

24 4–A of the Agreement, textile or apparel goods clas25 sifiable as goods put up in sets for retail sale as pro-
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1 vided for in General Rule of Interpretation 3 of the

2 HTS shall not be considered to be originating goods

3 unless each of the goods in the set is an originating

4 good or the total value of the nonoriginating goods

5 in the set does not exceed 10 percent of the value

6 of the set determined for purposes of assessing cus7 toms duties.

8 (i) DEFINITIONS.—In this section:

9 (1) DIRECT COSTS OF PROCESSING OPER10 ATIONS.—

11 (A) IN GENERAL.—The term ‘‘direct costs

12 of processing operations’’, with respect to a

13 good, includes, to the extent they are includable

14 in the appraised value of the good when im15 ported into Morocco or the United States, as

16 the case may be, the following:

17 (i) All actual labor costs involved in

18 the growth, production, or manufacture of

19 the good, including fringe benefits, on-the20 job training, and the costs of engineering,

21 supervisory, quality control, and similar

22 personnel.

23 (ii) Tools, dies, molds, and other indi24 rect materials, and depreciation on ma-
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1 chinery and equipment that are allocable

2 to the good.

3 (iii) Research, development, design,

4 engineering, and blueprint costs, to the ex5 tent that they are allocable to the good.

6 (iv) Costs of inspecting and testing

7 the good.

8 (v) Costs of packaging the good for

9 export to the territory of the other country.

10 (B) EXCEPTIONS.—The term ‘‘direct costs

11 of processing operations’’ does not include costs

12 that are not directly attributable to a good or

13 are not costs of growth, production, or manu14 facture of the good, such as—

15 (i) profit; and

16 (ii) general expenses of doing business

17 that are either not allocable to the good or

18 are not related to the growth, production,

19 or manufacture of the good, such as ad20 ministrative salaries, casualty and liability

21 insurance, advertising, and sales staff sala22 ries, commissions, or expenses.

23 (2) GOOD.—The term ‘‘good’’ means any mer24 chandise, product, article, or material.
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1 (3) GOOD WHOLLY THE GROWTH, PRODUCT, OR

2 MANUFACTURE OF MOROCCO, THE UNITED STATES,

3 OR BOTH.—The term ‘‘good wholly the growth,

4 product, or manufacture of Morocco, the United

5 States, or both’’ means—

6 (A) a mineral good extracted in the terri7 tory of Morocco or the United States, or both;

8 (B) a vegetable good, as such a good is

9 provided for in the HTS, harvested in the terri10 tory of Morocco or the United States, or both;

11 (C) a live animal born and raised in the

12 territory of Morocco or the United States, or

13 both;

14 (D) a good obtained from live animals

15 raised in the territory of Morocco or the United

16 States, or both;

17 (E) a good obtained from hunting, trap18 ping, or fishing in the territory of Morocco or

19 the United States, or both;

20 (F) a good (fish, shellfish, and other ma21 rine life) taken from the sea by vessels reg22 istered or recorded with Morocco or the United

23 States and flying the flag of that country;

24 (G) a good produced from goods referred

25 to in subparagraph (F) on board factory ships
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1 registered or recorded with Morocco or the

2 United States and flying the flag of that coun3 try;

4 (H) a good taken by Morocco or the

5 United States or a person of Morocco or the

6 United States from the seabed or beneath the

7 seabed outside territorial waters, if Morocco or

8 the United States has rights to exploit such

9 seabed;

10 (I) a good taken from outer space, if such

11 good is obtained by Morocco or the United

12 States or a person of Morocco or the United

13 States and not processed in the territory of a

14 country other than Morocco or the United

15 States;

16 (J) waste and scrap derived from—

17 (i) production or manufacture in the

18 territory of Morocco or the United States,

19 or both; or

20 (ii) used goods collected in the terri21 tory of Morocco or the United States, or

22 both, if such goods are fit only for the re23 covery of raw materials;

24 (K) a recovered good derived in the terri25 tory of Morocco or the United States from used
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1 goods and utilized in the territory of that coun2 try in the production of remanufactured goods;

3 and

4 (L) a good produced in the territory of

5 Morocco or the United States, or both,

6 exclusively—

7 (i) from goods referred to in subpara8 graphs (A) through (J), or

9 (ii) from the derivatives of goods re10 ferred to in clause (i),

11 at any stage of production.

12 (4) INDIRECT MATERIAL.—The term ‘‘indirect

13 material’’ means a good used in the growth, produc14 tion, manufacture, testing, or inspection of a good

15 but not physically incorporated into the good, or a

16 good used in the maintenance of buildings or the op17 eration of equipment associated with the growth,

18 production, or manufacture of a good, including—

19 (A) fuel and energy;

20 (B) tools, dies, and molds;

21 (C) spare parts and materials used in the

22 maintenance of equipment and buildings;

23 (D) lubricants, greases, compounding ma24 terials, and other materials used in the growth,
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1 production, or manufacture of a good or used

2 to operate equipment and buildings;

3 (E) gloves, glasses, footwear, clothing,

4 safety equipment, and supplies;

5 (F) equipment, devices, and supplies used

6 for testing or inspecting the good;

7 (G) catalysts and solvents; and

8 (H) any other goods that are not incor9 porated into the good but the use of which in

10 the growth, production, or manufacture of the

11 good can reasonably be demonstrated to be a

12 part of that growth, production, or manufac13 ture.

14 (5) MATERIAL.—The term ‘‘material’’ means a

15 good, including a part or ingredient, that is used in

16 the growth, production, or manufacture of another

17 good that is a new or different article of commerce

18 that has been grown, produced, or manufactured in

19 Morocco, the United States, or both.

20 (6) MATERIAL PRODUCED IN THE TERRITORY

21 OF MOROCCO OR THE UNITED STATES, OR BOTH.—

22 The term ‘‘material produced in the territory of Mo23 rocco or the United States, or both’’ means a good

24 that is either wholly the growth, product, or manu25 facture of Morocco, the United States, or both, or a
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1 new or different article of commerce that has been

2 grown, produced, or manufactured in the territory of

3 Morocco or the United States, or both.

4 (7) NEW OR DIFFERENT ARTICLE OF COM5 MERCE.—

6 (A) IN GENERAL.—The term ‘‘new or dif7 ferent article of commerce’’ means, except as

8 provided in subparagraph (B), a good that—

9 (i) has been substantially transformed

10 from a good or material that is not wholly

11 the growth, product, or manufacture of

12 Morocco, the United States, or both; and

13 (ii) has a new name, character, or use

14 distinct from the good or material from

15 which it was transformed.

16 (B) EXCEPTION.—A good shall not be con17 sidered a new or different article of commerce

18 by virtue of having undergone simple combining

19 or packaging operations, or mere dilution with

20 water or another substance that does not mate21 rially alter the characteristics of the good.

22 (8) RECOVERED GOODS.—The term ‘‘recovered

23 goods’’ means materials in the form of individual

24 parts that result from—
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1 (A) the complete disassembly of used goods

2 into individual parts; and

3 (B) the cleaning, inspecting, testing, or

4 other processing of those parts that is necessary

5 for improvement to sound working condition.

6 (9) REMANUFACTURED GOOD.—The term ‘‘re7 manufactured good’’ means an industrial good that

8 is assembled in the territory of Morocco or the

9 United States and that—

10 (A) is entirely or partially comprised of re11 covered goods;

12 (B) has a similar life expectancy to, and

13 meets similar performance standards as, a like

14 good that is new; and

15 (C) enjoys a factory warranty similar to

16 that of a like good that is new.

17 (10) SIMPLE COMBINING OR PACKAGING OPER18 ATIONS.—The term ‘‘simple combining or packaging

19 operations’’ means operations such as adding bat20 teries to electronic devices, fitting together a small

21 number of components by bolting, gluing, or sol22 dering, or packing or repacking components to23 gether.

24 (11) SUBSTANTIALLY TRANSFORMED.—The

25 term ‘‘substantially transformed’’ means, with re-
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1 spect to a good or material, changed as the result

2 of a manufacturing or processing operation so

3 that—

4 (A)(i) the good or material is converted

5 from a good that has multiple uses into a good

6 or material that has limited uses;

7 (ii) the physical properties of the good or

8 material are changed to a significant extent; or

9 (iii) the operation undergone by the good

10 or material is complex by reason of the number

11 of processes and materials involved and the

12 time and level of skill required to perform those

13 processes; and

14 (B) the good or material loses its separate

15 identity in the manufacturing or processing op16 eration.

17 (j) PRESIDENTIAL PROCLAMATION AUTHORITY.—

18 (1) IN GENERAL.—The President is authorized

19 to proclaim, as part of the HTS—

20 (A) the provisions set out in Annex 4–A

21 and Annex 5–A of the Agreement; and

22 (B) any additional subordinate category

23 necessary to carry out this title consistent with

24 the Agreement.

25 (2) MODIFICATIONS.—
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1 (A) IN GENERAL.—Subject to the consulta2 tion and layover provisions of section 104, the

3 President may proclaim modifications to the

4 provisions proclaimed under the authority of

5 paragraph (1)(A), other than provisions of

6 chapters 50 through 63 of the HTS, as in7 cluded in Annex 4–A of the Agreement.

8 (B) ADDITIONAL PROCLAMATIONS.—Not9 withstanding subparagraph (A), and subject to

10 the consultation and layover provisions of sec11 tion 104, the President may proclaim—

12 (i) modifications to the provisions pro13 claimed under the authority of paragraph

14 (1)(A) as are necessary to implement an

15 agreement with Morocco pursuant to arti16 cle 4.3.6 of the Agreement; and

17 (ii) before the end of the 1-year period

18 beginning on the date of the enactment of

19 this Act, modifications to correct any typo20 graphical, clerical, or other nonsubstantive

21 technical error regarding the provisions of

22 chapters 50 through 63 of the HTS, as in23 cluded in Annex 4–A of the Agreement.
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1 SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE

2 AND APPAREL GOODS.

3 (a) ACTION DURING VERIFICATION.—

4 (1) IN GENERAL.—If the Secretary of the

5 Treasury requests the Government of Morocco to

6 conduct a verification pursuant to article 4.4 of the

7 Agreement for purposes of making a determination

8 under paragraph (2), the President may direct the

9 Secretary to take appropriate action described in

10 subsection (b) while the verification is being con11 ducted.

12 (2) DETERMINATION.—A determination under

13 this paragraph is a determination—

14 (A) that an exporter or producer in Mo15 rocco is complying with applicable customs

16 laws, regulations, procedures, requirements, or

17 practices affecting trade in textile or apparel

18 goods; or

19 (B) that a claim that a textile or apparel

20 good exported or produced by such exporter or

21 producer—

22 (i) qualifies as an originating good

23 under section 203 of this Act, or

24 (ii) is a good of Morocco,

25 is accurate.
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1 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate

2 action under subsection (a)(1) includes—

3 (1) suspension of liquidation of the entry of any

4 textile or apparel good exported or produced by the

5 person that is the subject of a verification referred

6 to in subsection (a)(1) regarding compliance de7 scribed in subsection (a)(2)(A), in a case in which

8 the request for verification was based on a reason9 able suspicion of unlawful activity related to such

10 goods; and

11 (2) suspension of liquidation of the entry of a

12 textile or apparel good for which a claim has been

13 made that is the subject of a verification referred to

14 in subsection (a)(1) regarding a claim described in

15 subsection (a)(2)(B).

16 (c) ACTION WHEN INFORMATION IS INSUFFI17 CIENT.—If the Secretary of the Treasury determines that

18 the information obtained within 12 months after making

19 a request for a verification under subsection (a)(1) is in20 sufficient to make a determination under subsection

21 (a)(2), the President may direct the Secretary to take ap22 propriate action described in subsection (d) until such

23 time as the Secretary receives information sufficient to

24 make a determination under subsection (a)(2) or until

25 such earlier date as the President may direct.
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1 (d) APPROPRIATE ACTION DESCRIBED.—Appro2 priate action referred to in subsection (c) includes—

3 (1) publication of the name and address of the

4 person that is the subject of the verification;

5 (2) denial of preferential tariff treatment under

6 the Agreement to—

7 (A) any textile or apparel good exported or

8 produced by the person that is the subject of a

9 verification referred to in subsection (a)(1) re10 garding compliance described in subsection

11 (a)(2)(A); or

12 (B) a textile or apparel good for which a

13 claim has been made that is the subject of a

14 verification referred to in subsection (a)(1) re15 garding a claim described in subsection

16 (a)(2)(B); and

17 (3) denial of entry into the United States of—

18 (A) any textile or apparel good exported or

19 produced by the person that is the subject of a

20 verification referred to in subsection (a)(1) re21 garding compliance described in subsection

22 (a)(2)(A); or

23 (B) a textile or apparel good for which a

24 claim has been made that is the subject of a

25 verification referred to in subsection (a)(1) re-
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1 garding a claim described in subsection

2 (a)(2)(B).

3 SEC. 205. REGULATIONS.

4 The Secretary of the Treasury shall prescribe such

5 regulations as may be necessary to carry out—

6 (1) subsections (a) through (i) of section 203;

7 (2) amendments to existing law made by the

8 subsections referred to in paragraph (1); and

9 (3) proclamations issued under section 203(j).

10 TITLE III—RELIEF FROM

11 IMPORTS

12 SEC. 301. DEFINITIONS.

13 In this title:

14 (1) MOROCCAN ARTICLE.—The term ‘‘Moroccan

15 article’’ means an article that qualifies as an origi16 nating good under section 203(b) of this Act or re17 ceives preferential tariff treatment under paragraphs

18 9 through 15 of article 4.3 of the Agreement.

19 (2) MOROCCAN TEXTILE OR APPAREL ARTI20 CLE.—The term ‘‘Moroccan textile or apparel arti21 cle’’ means an article that—

22 (A) is listed in the Annex to the Agree23 ment on Textiles and Clothing referred to in

24 section 101(d)(4) of the Uruguay Round Agree25 ments Act (19 U.S.C. 3511(d)(4)); and
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1 (B) is a Moroccan article.

2 (3) COMMISSION.—The term ‘‘Commission’’

3 means the United States International Trade Com4 mission.

5 Subtitle A—Relief From Imports

6 Benefiting From the Agreement

7 SEC. 311. COMMENCING OF ACTION FOR RELIEF.

8 (a) FILING OF PETITION.—

9 (1) IN GENERAL.—A petition requesting action

10 under this subtitle for the purpose of adjusting to

11 the obligations of the United States under the

12 Agreement may be filed with the Commission by an

13 entity, including a trade association, firm, certified

14 or recognized union, or group of workers, that is

15 representative of an industry. The Commission shall

16 transmit a copy of any petition filed under this sub17 section to the United States Trade Representative.

18 (2) PROVISIONAL RELIEF.—An entity filing a

19 petition under this subsection may request that pro20 visional relief be provided as if the petition had been

21 filed under section 202(a) of the Trade Act of 1974

22 (19 U.S.C. 2252(a)).

23 (3) CRITICAL CIRCUMSTANCES.—Any allegation

24 that critical circumstances exist shall be included in

25 the petition.
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1 (b) INVESTIGATION AND DETERMINATION.—Upon

2 the filing of a petition under subsection (a), the Commis3 sion, unless subsection (d) applies, shall promptly initiate

4 an investigation to determine whether, as a result of the

5 reduction or elimination of a duty provided for under the

6 Agreement, a Moroccan article is being imported into the

7 United States in such increased quantities, in absolute

8 terms or relative to domestic production, and under such

9 conditions that imports of the Moroccan article constitute

10 a substantial cause of serious injury or threat thereof to

11 the domestic industry producing an article that is like, or

12 directly competitive with, the imported article.

13 (c) APPLICABLE PROVISIONS.—The following provi14 sions of section 202 of the Trade Act of 1974 (19 U.S.C.

15 2252) apply with respect to any investigation initiated

16 under subsection (b):

17 (1) Paragraphs (1)(B) and (3) of subsection

18 (b).

19 (2) Subsection (c).

20 (3) Subsection (d).

21 (4) Subsection (i).

22 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No

23 investigation may be initiated under this section with re24 spect to any Moroccan article if, after the date on which

25 the Agreement enters into force, import relief has been
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1 provided with respect to that Moroccan article under this

2 subtitle.

3 SEC. 312. COMMISSION ACTION ON PETITION.

4 (a) DETERMINATION.—Not later than 120 days (180

5 days if critical circumstances have been alleged) after the

6 date on which an investigation is initiated under section

7 311(b) with respect to a petition, the Commission shall

8 make the determination required under that section.

9 (b) APPLICABLE PROVISIONS.—For purposes of this

10 subtitle, the provisions of paragraphs (1), (2), and (3) of

11 section 330(d) of the Tariff Act of 1930 (19 U.S.C.

12 1330(d) (1), (2), and (3)) shall be applied with respect

13 to determinations and findings made under this section

14 as if such determinations and findings were made under

15 section 202 of the Trade Act of 1974 (19 U.S.C. 2252).

16 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

17 DETERMINATION AFFIRMATIVE.—If the determination

18 made by the Commission under subsection (a) with respect

19 to imports of an article is affirmative, or if the President

20 may consider a determination of the Commission to be an

21 affirmative determination as provided for under paragraph

22 (1) of section 330(d) of the Tariff Act of 1930) (19 U.S.C.

23 1330(d)), the Commission shall find, and recommend to

24 the President in the report required under subsection (d),

25 the amount of import relief that is necessary to remedy
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1 or prevent the injury found by the Commission in the de2 termination and to facilitate the efforts of the domestic

3 industry to make a positive adjustment to import competi4 tion. The import relief recommended by the Commission

5 under this subsection shall be limited to that described in

6 section 313(c). Only those members of the Commission

7 who voted in the affirmative under subsection (a) are eligi8 ble to vote on the proposed action to remedy or prevent

9 the injury found by the Commission. Members of the Com10 mission who did not vote in the affirmative may submit,

11 in the report required under subsection (d), separate views

12 regarding what action, if any, should be taken to remedy

13 or prevent the injury.

14 (d) REPORT TO PRESIDENT.—Not later than the

15 date that is 30 days after the date on which a determina16 tion is made under subsection (a) with respect to an inves17 tigation, the Commission shall submit to the President a

18 report that includes—

19 (1) the determination made under subsection

20 (a) and an explanation of the basis for the deter21 mination;

22 (2) if the determination under subsection (a) is

23 affirmative, any findings and recommendations for

24 import relief made under subsection (c) and an ex25 planation of the basis for each recommendation; and
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1 (3) any dissenting or separate views by mem2 bers of the Commission regarding the determination

3 and recommendation referred to in paragraphs (1)

4 and (2).

5 (e) PUBLIC NOTICE.—Upon submitting a report to

6 the President under subsection (d), the Commission shall

7 promptly make public such report (with the exception of

8 information which the Commission determines to be con9 fidential) and shall cause a summary thereof to be pub10 lished in the Federal Register.

11 SEC. 313. PROVISION OF RELIEF.

12 (a) IN GENERAL.—Not later than the date that is

13 30 days after the date on which the President receives the

14 report of the Commission in which the Commission’s de15 termination under section 312(a) is affirmative, or which

16 contains a determination under section 312(a) that the

17 President considers to be affirmative under paragraph (1)

18 of section 330(d) of the Tariff Act of 1930 (19 U.S.C.

19 1330(d)(1)), the President, subject to subsection (b), shall

20 provide relief from imports of the article that is the subject

21 of such determination to the extent that the President de22 termines necessary to remedy or prevent the injury found

23 by the Commission and to facilitate the efforts of the do24 mestic industry to make a positive adjustment to import

25 competition.
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1 (b) EXCEPTION.—The President is not required to

2 provide import relief under this section if the President

3 determines that the provision of the import relief will not

4 provide greater economic and social benefits than costs.

5 (c) NATURE OF RELIEF.—

6 (1) IN GENERAL.—The import relief (including

7 provisional relief) that the President is authorized to

8 provide under this section with respect to imports of

9 an article is as follows:

10 (A) The suspension of any further reduc11 tion provided for under Annex IV of the Agree12 ment in the duty imposed on such article.

13 (B) An increase in the rate of duty im14 posed on such article to a level that does not

15 exceed the lesser of—

16 (i) the column 1 general rate of duty

17 imposed under the HTS on like articles at

18 the time the import relief is provided; or

19 (ii) the column 1 general rate of duty

20 imposed under the HTS on like articles on

21 the day before the date on which the

22 Agreement enters into force.

23 (C) In the case of a duty applied on a sea24 sonal basis to such article, an increase in the
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1 rate of duty imposed on the article to a level

2 that does not exceed the lesser of—

3 (i) the column 1 general rate of duty

4 imposed under the HTS on like articles for

5 the immediately preceding corresponding

6 season; or

7 (ii) the column 1 general rate of duty

8 imposed under the HTS on like articles on

9 the day before the date on which the

10 Agreement enters into force.

11 (2) PROGRESSIVE LIBERALIZATION.—If the pe12 riod for which import relief is provided under this

13 section is greater than 1 year, the President shall

14 provide for the progressive liberalization of such re15 lief at regular intervals during the period in which

16 the relief is in effect.

17 (d) PERIOD OF RELIEF.—

18 (1) IN GENERAL.—Subject to paragraph (2),

19 any import relief that the President provides under

20 this section may not be in effect for more than 3

21 years.

22 (2) EXTENSION.—

23 (A) IN GENERAL.—Subject to subpara24 graph (C), the President, after receiving an af25 firmative determination from the Commission
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1 under subparagraph (B), may extend the effec2 tive period of any import relief provided under

3 this section if the President determines that—

4 (i) the import relief continues to be

5 necessary to remedy or prevent serious in6 jury and to facilitate adjustment by the do7 mestic industry to import competition; and

8 (ii) there is evidence that the industry

9 is making a positive adjustment to import

10 competition.

11 (B) ACTION BY COMMISSION.—(i) Upon a

12 petition on behalf of the industry concerned

13 that is filed with the Commission not earlier

14 than the date which is 9 months, and not later

15 than the date which is 6 months, before the

16 date any action taken under subsection (a) is to

17 terminate, the Commission shall conduct an in18 vestigation to determine whether action under

19 this section continues to be necessary to remedy

20 or prevent serious injury and to facilitate ad21 justment by the domestic industry to import

22 competition and whether there is evidence that

23 the industry is making a positive adjustment to

24 import competition.
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1 (ii) The Commission shall publish notice of

2 the commencement of any proceeding under

3 this subparagraph in the Federal Register and

4 shall, within a reasonable time thereafter, hold

5 a public hearing at which the Commission shall

6 afford interested parties and consumers an op7 portunity to be present, to present evidence,

8 and to respond to the presentations of other

9 parties and consumers, and otherwise to be

10 heard.

11 (iii) The Commission shall transmit to the

12 President a report on its investigation and de13 termination under this subparagraph not later

14 than 60 days before the action under subsection

15 (a) is to terminate, unless the President speci16 fies a different date.

17 (C) PERIOD OF IMPORT RELIEF.—Any im18 port relief provided under this section, including

19 any extensions thereof, may not, in the aggre20 gate, be in effect for more than 5 years.

21 (e) RATE AFTER TERMINATION OF IMPORT RE22 LIEF.—When import relief under this section is termi23 nated with respect to an article, the rate of duty on that

24 article shall be the rate that would have been in effect,
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1 but for the provision of such relief, on the date on which

2 the relief terminates.

3 (f) ARTICLES EXEMPT FROM RELIEF.—No import

4 relief may be provided under this section on any article

5 that—

6 (1) is subject to an assessment of additional

7 duty under section 202(b); or

8 (2) has been subject to import relief under this

9 subtitle after the date on which the Agreement en10 ters into force.

11 SEC. 314. TERMINATION OF RELIEF AUTHORITY.

12 (a) GENERAL RULE.—Subject to subsection (b), no

13 import relief may be provided under this subtitle with re14 spect to a good after the date that is 5 years after the

15 date on which duty-free treatment must be provided by

16 the United States to that good pursuant to Annex IV of

17 the Agreement.

18 (b) PRESIDENTIAL DETERMINATION.—Import relief

19 may be provided under this subtitle in the case of a Moroc20 can article after the date on which such relief would, but

21 for this subsection, terminate under subsection (a), if the

22 President determines that Morocco has consented to such

23 relief.
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1 SEC. 315. COMPENSATION AUTHORITY.

2 For purposes of section 123 of the Trade Act of 1974

3 (19 U.S.C. 2133), any import relief provided by the Presi4 dent under section 313 shall be treated as action taken

5 under chapter 1 of title II of such Act.

6 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

7 Section 202(a)(8) of the Trade Act of 1974 (19

8 U.S.C. 2252(a)(8)) is amended in the first sentence—

9 (1) by striking ‘‘and’’; and

10 (2) by inserting before the period at the end ‘‘,

11 and title III of the United States-Morocco Free

12 Trade Agreement Implementation Act’’.

13 Subtitle B—Textile and Apparel

14 Safeguard Measures

15 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

16 (a) IN GENERAL.—A request under this subtitle for

17 the purpose of adjusting to the obligations of the United

18 States under the Agreement may be filed with the Presi19 dent by an interested party. Upon the filing of a request,

20 the President shall review the request to determine, from

21 information presented in the request, whether to com22 mence consideration of the request.

23 (b) PUBLICATION OF REQUEST.—If the President de24 termines that the request under subsection (a) provides

25 the information necessary for the request to be considered,

26 the President shall cause to be published in the Federal
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1 Register a notice of commencement of consideration of the

2 request, and notice seeking public comments regarding the

3 request. The notice shall include a summary of the request

4 and the dates by which comments and rebuttals must be

5 received.

6 SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

7 (a) DETERMINATION.—

8 (1) IN GENERAL.—If a positive determination is

9 made under section 321(b), the President shall de10 termine whether, as a result of the reduction or

11 elimination of a duty under the Agreement, a Moroc12 can textile or apparel article is being imported into

13 the United States in such increased quantities, in

14 absolute terms or relative to the domestic market for

15 that article, and under such conditions as to cause

16 serious damage, or actual threat thereof, to a domes17 tic industry producing an article that is like, or di18 rectly competitive with, the imported article.

19 (2) SERIOUS DAMAGE.—In making a deter20 mination under paragraph (1), the President—

21 (A) shall examine the effect of increased

22 imports on the domestic industry, as reflected

23 in changes in such relevant economic factors as

24 output, productivity, utilization of capacity, in25 ventories, market share, exports, wages, em-
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1 ployment, domestic prices, profits, and invest2 ment, none of which is necessarily decisive; and

3 (B) shall not consider changes in tech4 nology or consumer preference as factors sup5 porting a determination of serious damage or

6 actual threat thereof.

7 (b) PROVISION OF RELIEF.—

8 (1) IN GENERAL.—If a determination under

9 subsection (a) is affirmative, the President may pro10 vide relief from imports of the article that is the

11 subject of such determination, as described in para12 graph (2), to the extent that the President deter13 mines necessary to remedy or prevent the serious

14 damage and to facilitate adjustment by the domestic

15 industry to import competition.

16 (2) NATURE OF RELIEF.—The relief that the

17 President is authorized to provide under this sub18 section with respect to imports of an article is an in19 crease in the rate of duty imposed on the article to

20 a level that does not exceed the lesser of—

21 (A) the column 1 general rate of duty im22 posed under the HTS on like articles at the

23 time the import relief is provided; or

24 (B) the column 1 general rate of duty im25 posed under the HTS on like articles on the
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1 day before the date on which the Agreement en2 ters into force.

3 SEC. 323. PERIOD OF RELIEF.

4 (a) IN GENERAL.—Subject to subsection (b), the im5 port relief that the President provides under subsection

6 (b) of section 322 may not, in the aggregate, be in effect

7 for more than 3 years.

8 (b) EXTENSION.—

9 (1) IN GENERAL.—Subject to paragraph (2),

10 the President may extend the effective period of any

11 import relief provided under this subtitle for a pe12 riod of not more than 2 years, if the President de13 termines that—

14 (A) the import relief continues to be nec15 essary to remedy or prevent serious damage

16 and to facilitate adjustment by the domestic in17 dustry to import competition; and

18 (B) there is evidence that the industry is

19 making a positive adjustment to import com20 petition.

21 (2) LIMITATION.—Any relief provided under

22 this subtitle, including any extensions thereof, may

23 not, in the aggregate, be in effect for more than 5

24 years.
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1 SEC. 324. ARTICLES EXEMPT FROM RELIEF.

2 The President may not provide import relief under

3 this subtitle with respect to any article if—

4 (1) the article has been subject to import relief

5 under this subtitle after the date on which the

6 Agreement enters into force; or

7 (2) the article is subject to import relief under

8 chapter 1 of title II of the Trade Act of 1974.

9 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

10 When import relief under this subtitle is terminated

11 with respect to an article, the rate of duty on that article

12 shall be the rate that would have been in effect, but for

13 the provision of such relief, on the date on which the relief

14 terminates.

15 SEC. 326. TERMINATION OF RELIEF AUTHORITY.

16 No import relief may be provided under this subtitle

17 with respect to any article after the date that is 10 years

18 after the date on which duties on the article are eliminated

19 pursuant to the Agreement.

20 SEC. 327. COMPENSATION AUTHORITY.

21 For purposes of section 123 of the Trade Act of 1974

22 (19 U.S.C. 2133), any import relief provided by the Presi23 dent under this subtitle shall be treated as action taken

24 under chapter 1 of title II of such Act.
†

52

S 2677 ES

1 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

2 The President may not release information which is

3 submitted in a proceeding under this subtitle and which

4 the President considers to be confidential business infor5 mation unless the party submitting the confidential busi6 ness information had notice, at the time of submission,

7 that such information would be released, or such party

8 subsequently consents to the release of the information.

9 To the extent a party submits confidential business infor10 mation to the President in a proceeding under this sub11 title, the party also shall submit a nonconfidential version

12 of the information, in which the confidential business in13 formation is summarized or, if necessary, deleted.

Passed the Senate July 21, 2004.

Attest:

Secretary.
108TH CONGRESS

2D SESSION S. 2677

AN ACT

To implement the United States-Morocco Free

Trade Agreement.