108TH CONGRESS

2D SESSION H. R. 4842

AN ACT

To implement the United States-Morocco Free

Trade Agreement.

108TH CONGRESS

2D SESSION H. R. 4842

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,
2

•HR 4842 EH

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘United States-Morocco Free Trade Agreement Imple4 mentation Act’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 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.
3

•HR 4842 EH

Sec. 326. Termination of relief authority.

Sec. 327. Compensation authority.

Sec. 328. Business confidential information.

1 SEC. 2. PURPOSES.

2 The purposes of this Act are—

3 (1) to approve and implement the Free Trade

4 Agreement between the United States and Morocco

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

6 of the Bipartisan Trade Promotion Authority Act of

7 2002 (19 U.S.C. 3803(b));

8 (2) to strengthen and develop economic rela9 tions between the United States and Morocco for

10 their mutual benefit;

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

12 through the reduction and elimination of barriers to

13 trade in goods and services and to investment; and

14 (4) to lay the foundation for further coopera15 tion to expand and enhance the benefits of such

16 Agreement.

17 SEC. 3. DEFINITIONS.

18 In this Act:

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

20 means the United States-Morocco Free Trade Agree21 ment approved by Congress under section 101(a)(1).

22 (2) HTS.—The term ‘‘HTS’’ means the Har23 monized Tariff Schedule of the United States.
4

•HR 4842 EH

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

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

3 Annex to the Agreement on Textiles and Clothing

4 referred to in section 101(d)(4) of the Uruguay

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

6 TITLE I—APPROVAL OF, AND

7 GENERAL PROVISIONS RE8 LATING TO, THE AGREEMENT

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

10 AGREEMENT.

11 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

12 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of

13 the Bipartisan Trade Promotion Authority Act of 2002

14 (19 U.S.C. 3805) and section 151 of the Trade Act of

15 1974 (19 U.S.C. 2191), Congress approves—

16 (1) the United States-Morocco Free Trade

17 Agreement entered into on June 15, 2004, with Mo18 rocco and submitted to Congress on July 15, 2004;

19 and

20 (2) the statement of administrative action pro21 posed to implement the Agreement that was sub22 mitted to Congress on July 15, 2004.

23 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

24 AGREEMENT.—At such time as the President determines

25 that Morocco has taken measures necessary to bring it
5

•HR 4842 EH

1 into compliance with those provisions of the Agreement

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

3 enters into force, the President is authorized to exchange

4 notes with the Government of Morocco providing for the

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

6 Agreement with respect to the United States.

7 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED

8 STATES AND STATE LAW.

9 (a) RELATIONSHIP OF AGREEMENT TO UNITED

10 STATES LAW.—

11 (1) UNITED STATES LAW TO PREVAIL IN CON12 FLICT.—No provision of the Agreement, nor the ap13 plication of any such provision to any person or cir14 cumstance, which is inconsistent with any law of the

15 United States shall have effect.

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

17 be construed—

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

19 United States, or

20 (B) to limit any authority conferred under

21 any law of the United States,

22 unless specifically provided for in this Act.

23 (b) RELATIONSHIP OF AGREEMENT TO STATE

24 LAW.—
6

•HR 4842 EH

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

2 application thereof, may be declared invalid as to

3 any person or circumstance on the ground that the

4 provision or application is inconsistent with the

5 Agreement, except in an action brought by the

6 United States for the purpose of declaring such law

7 or application invalid.

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

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

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

11 State; and

12 (B) any State law regulating or taxing the

13 business of insurance.

14 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI15 VATE REMEDIES.—No person other than the United

16 States—

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

18 under the Agreement or by virtue of congressional

19 approval thereof; or

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

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

22 department, agency, or other instrumentality of the

23 United States, any State, or any political subdivision

24 of a State, on the ground that such action or inac25 tion is inconsistent with the Agreement.
7

•HR 4842 EH

1 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF

2 ENTRY INTO FORCE AND INITIAL REGULA3 TIONS.

4 (a) IMPLEMENTING ACTIONS.—

5 (1) PROCLAMATION AUTHORITY.—After the

6 date of the enactment of this Act—

7 (A) the President may proclaim such ac8 tions, and

9 (B) other appropriate officers of the

10 United States Government may issue such reg11 ulations,

12 as may be necessary to ensure that any provision of

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

14 effect on the date the Agreement enters into force

15 is appropriately implemented on such date, but no

16 such proclamation or regulation may have an effec17 tive date earlier than the date the Agreement enters

18 into force.

19 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

20 ACTIONS.—Any action proclaimed by the President

21 under the authority of this Act that is not subject

22 to the consultation and layover provisions under sec23 tion 104 may not take effect before the 15th day

24 after the date on which the text of the proclamation

25 is published in the Federal Register.
8

•HR 4842 EH

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

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

3 of proclaimed actions is waived to the extent that

4 the application of such restriction would prevent the

5 taking effect on the date the Agreement enters into

6 force of any action proclaimed under this section.

7 (b) INITIAL REGULATIONS.—Initial regulations nec8 essary or appropriate to carry out the actions required by

9 or authorized under this Act or proposed in the statement

10 of administrative action submitted under section

11 101(a)(2) to implement the Agreement shall, to the max12 imum extent feasible, be issued within 1 year after the

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

14 of any implementing action that takes effect on a date

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

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

17 maximum extent feasible, be issued within 1 year after

18 such effective date.

19 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR,

20 AND EFFECTIVE DATE OF, PROCLAIMED AC21 TIONS.

22 If a provision of this Act provides that the implemen23 tation of an action by the President by proclamation is

24 subject to the consultation and layover requirements of

25 this section, such action may be proclaimed only if—
9

•HR 4842 EH

1 (1) the President has obtained advice regarding

2 the proposed action from—

3 (A) the appropriate advisory committees

4 established under section 135 of the Trade Act

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

6 (B) the United States International Trade

7 Commission;

8 (2) the President has submitted to the Com9 mittee on Finance of the Senate and the Committee

10 on Ways and Means of the House of Representatives

11 a report that sets forth—

12 (A) the action proposed to be proclaimed

13 and the reasons therefor; and

14 (B) the advice obtained under paragraph

15 (1);

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

17 the first day on which the requirements set forth in

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

19 and

20 (4) the President has consulted with such Com21 mittees regarding the proposed action during the pe22 riod referred to in paragraph (3).
10

•HR 4842 EH

1 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO2 CEEDINGS.

3 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

4 The President is authorized to establish or designate with5 in the Department of Commerce an office that shall be

6 responsible for providing administrative assistance to pan7 els established under chapter 20 of the Agreement. The

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

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

10 (b) AUTHORIZATION OF APPROPRIATIONS.—There

11 are authorized to be appropriated for each fiscal year after

12 fiscal year 2004 to the Department of Commerce such

13 sums as may be necessary for the establishment and oper14 ations of the office under subsection (a) and for the pay15 ment of the United States share of the expenses of panels

16 established under chapter 20 of the Agreement.

17 SEC. 106. ARBITRATION OF CLAIMS.

18 The United States is authorized to resolve any claim

19 against the United States covered by article

20 10.15.1(a)(i)(C) or article 10.15.1(b)(i)(C) of the Agree21 ment, pursuant to the Investor-State Dispute Settlement

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

23 Agreement.

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

25 (a) EFFECTIVE DATES.—Except as provided in sub26 section (b), the provisions of this Act and the amendments
11

•HR 4842 EH

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

2 enters into force.

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

4 title take effect on the date of the enactment of this Act.

5 (c) TERMINATION OF THE AGREEMENT.—On the

6 date on which the Agreement terminates, the provisions

7 of this Act (other than this subsection) and the amend8 ments made by this Act shall cease to be effective.

9 TITLE II—CUSTOMS PROVISIONS

10 SEC. 201. TARIFF MODIFICATIONS.

11 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

12 AGREEMENT.—

13 (1) PROCLAMATION AUTHORITY.—The Presi14 dent may proclaim—

15 (A) such modifications or continuation of

16 any duty,

17 (B) such continuation of duty-free or ex18 cise treatment, or

19 (C) such additional duties,

20 as the President determines to be necessary or ap21 propriate to carry out or apply articles 2.3, 2.5, 2.6,

22 4.1, 4.3.9, 4.3.10, 4.3.11, 4.3.13, 4.3.14, and 4.3.15,

23 and Annex IV of the Agreement.

24 (2) EFFECT ON MOROCCAN GSP STATUS.—Not25 withstanding section 502(a)(1) of the Trade Act of
12

•HR 4842 EH

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

2 terminate the designation of Morocco as a bene3 ficiary developing country for purposes of title V of

4 the Trade Act of 1974 on the date of entry into

5 force of the Agreement.

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

7 consultation and layover provisions of section 104, the

8 President may proclaim—

9 (1) such modifications or continuation of any

10 duty,

11 (2) such modifications as the United States

12 may agree to with Morocco regarding the staging of

13 any duty treatment set forth in Annex IV of the

14 Agreement,

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

16 treatment, or

17 (4) such additional duties,

18 as the President determines to be necessary or appropriate

19 to maintain the general level of reciprocal and mutually

20 advantageous concessions with respect to Morocco pro21 vided for by the Agreement.

22 (c) CONVERSION TO AD VALOREM RATES.—For pur23 poses of subsections (a) and (b), with respect to any good

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

25 United States to Annex IV of the Agreement is a specific
13

•HR 4842 EH

1 or compound rate of duty, the President may substitute

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

3 determines to be equivalent to the base rate.

4 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL5 TURAL GOODS.

6 (a) DEFINITIONS.—In this section:

7 (1) AGRICULTURAL SAFEGUARD GOOD.—The

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

9 (A) that qualifies as an originating good

10 under section 203;

11 (B) that is included in the U.S. Agricul12 tural Safeguard List set forth in Annex 3–A of

13 the Agreement; and

14 (C) for which a claim for preferential

15 treatment under the Agreement has been made.

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

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

18 means, with respect to an agricultural safeguard

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

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

21 would have been imposed under the HTS on the

22 same agricultural safeguard good entered, with23 out a claim for preferential tariff treatment, on

24 the date on which the additional duty is im25 posed under subsection (b); or
14

•HR 4842 EH

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

2 would have been imposed under the HTS on the

3 same agricultural safeguard good entered, with4 out a claim for preferential tariff treatment, on

5 December 31, 2004.

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

7 board, regardless of the mode of transportation, at

8 the point of direct shipment by the seller to the

9 buyer.

10 (4) SCHEDULE RATE OF DUTY.—The term

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

12 agricultural safeguard good, the rate of duty for that

13 good set out in the Tariff Schedule of the United

14 States to Annex IV of the Agreement.

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

16 good means the trigger price indicated for that good

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

18 Annex 3–A of the Agreement or any amendment

19 thereto.

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

21 price’’ of a good means the price of the good deter22 mined on the basis of the F.O.B. import price of the

23 good, expressed in either dollars per kilogram or dol24 lars per liter, whichever unit of measure is indicated
15

•HR 4842 EH

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

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

3 (b) ADDITIONAL DUTIES ON AGRICULTURAL SAFE4 GUARD GOODS.—

5 (1) ADDITIONAL DUTIES.—In addition to any

6 duty proclaimed under subsection (a) or (b) of sec7 tion 201, and subject to paragraphs (3), (4), (5),

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

9 Treasury shall assess a duty on an agricultural safe10 guard good, in the amount determined under para11 graph (2), if the Secretary determines that the unit

12 import price of the good when it enters the United

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

14 (2) CALCULATION OF ADDITIONAL DUTY.—The

15 additional duty assessed under this subsection on an

16 agricultural safeguard good shall be an amount de17 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.

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

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

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

21 under—
16

•HR 4842 EH

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

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

3 of 1974 (19 U.S.C. 2251 et seq.).

4 (4) TERMINATION.—The assessment of an ad5 ditional duty on a good under this subsection shall

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

7 duty-free treatment must be provided to that good

8 under the Tariff Schedule of the United States to

9 Annex IV of the Agreement.

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

11 safeguard good is subject to a tariff-rate quota

12 under the Agreement, any additional duty assessed

13 under this subsection shall be applied only to over14 quota imports of the good.

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

16 date on which the Secretary of the Treasury assesses

17 an additional duty on a good under this subsection,

18 the Secretary shall notify the Government of Mo19 rocco in writing of such action and shall provide to

20 the Government of Morocco data supporting the as21 sessment of additional duties.

22 SEC. 203. RULES OF ORIGIN.

23 (a) APPLICATION AND INTERPRETATION.—In this

24 section:
17

•HR 4842 EH

1 (1) TARIFF CLASSIFICATION.—The basis for

2 any tariff classification is the HTS.

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

4 section there is a reference to a heading or sub5 heading, such reference shall be a reference to a

6 heading or subheading of the HTS.

7 (b) ORIGINATING GOODS.—

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

9 and for purposes of implementing the preferential

10 tariff treatment provided for under the Agreement,

11 a good is an originating good if—

12 (A) the good is imported directly—

13 (i) from the territory of Morocco into

14 the territory of the United States; or

15 (ii) from the territory of the United

16 States into the territory of Morocco; and

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

18 growth, product, or manufacture of Morocco or

19 the United States, or both;

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

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

22 of commerce that has been grown, produced, or

23 manufactured in Morocco, the United States, or

24 both, and meets the requirements of paragraph

25 (2); or
18

•HR 4842 EH

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

2 Annex 4–A or 5–A of the Agreement;

3 (II)(aa) each of the nonoriginating mate4 rials used in the production of the good under5 goes an applicable change in tariff classification

6 specified in such Annex as a result of produc7 tion occurring entirely in the territory of Mo8 rocco or the United States, or both; or

9 (bb) the good otherwise satisfies the re10 quirements specified in such Annex; and

11 (III) the good satisfies all other applicable

12 requirements of this section.

13 (2) REQUIREMENTS.—A good described in

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

15 the sum of—

16 (A) the value of each material produced in

17 the territory of Morocco or the United States,

18 or both, and

19 (B) the direct costs of processing oper20 ations performed in the territory of Morocco or

21 the United States, or both,

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

23 the good at the time the good is entered into the ter24 ritory of the United States.

25 (c) CUMULATION.—
19

•HR 4842 EH

1 (1) ORIGINATING GOOD OR MATERIAL INCOR2 PORATED INTO GOODS OF OTHER COUNTRY.—An

3 originating good or a material produced in the terri4 tory of Morocco or the United States, or both, that

5 is incorporated into a good in the territory of the

6 other country shall be considered to originate in the

7 territory of the other country.

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

9 grown, produced, or manufactured in the territory of

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

11 producers, is an originating good if the good satis12 fies the requirements of subsection (b) and all other

13 applicable requirements of this section.

14 (d) VALUE OF MATERIALS.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the value of a material produced in the

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

18 includes the following:

19 (A) The price actually paid or payable for

20 the material by the producer of such good.

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

22 all other costs incurred in transporting the ma23 terial to the producer’s plant, if such costs are

24 not included in the price referred to in subpara25 graph (A).
20

•HR 4842 EH

1 (C) The cost of waste or spoilage resulting

2 from the use of the material in the growth, pro3 duction, or manufacture of the good, less the

4 value of recoverable scrap.

5 (D) Taxes or customs duties imposed on

6 the material by Morocco, the United States, or

7 both, if the taxes or customs duties are not re8 mitted upon exportation from the territory of

9 Morocco or the United States, as the case may

10 be.

11 (2) EXCEPTION.—If the relationship between

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

13 influenced the price actually paid or payable for the

14 material, or if there is no price actually paid or pay15 able by the producer for the material, the value of

16 the material produced in the territory of Morocco or

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

18 (A) All expenses incurred in the growth,

19 production, or manufacture of the material, in20 cluding general expenses.

21 (B) A reasonable amount for profit.

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

23 other costs incurred in transporting the mate24 rial to the producer’s plant.
21

•HR 4842 EH

1 (e) PACKAGING AND PACKING MATERIALS AND CON2 TAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Pack3 aging and packing materials and containers for retail sale

4 and shipment shall be disregarded in determining whether

5 a good qualifies as an originating good, except to the ex6 tent that the value of such packaging and packing mate7 rials and containers have been included in meeting the re8 quirements set forth in subsection (b)(2).

9 (f) INDIRECT MATERIALS.—Indirect materials shall

10 be disregarded in determining whether a good qualifies as

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

12 materials may be included in meeting the requirements set

13 forth in subsection (b)(2).

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

15 not be considered to meet the requirement of subsection

16 (b)(1)(A) if, after exportation from the territory of Mo17 rocco or the United States, the good undergoes produc18 tion, manufacturing, or any other operation outside the

19 territory of Morocco or the United States, other than un20 loading, reloading, or any other operation necessary to

21 preserve the good in good condition or to transport the

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

23 (h) TEXTILE AND APPAREL GOODS.—

24 (1) DE MINIMIS AMOUNTS OF NONORIGINATING

25 MATERIALS.—
22

•HR 4842 EH

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

2 subparagraph (B), a textile or apparel good

3 that is not an originating good because certain

4 fibers or yarns used in the production of the

5 component of the good that determines the tar6 iff classification of the good do not undergo an

7 applicable change in tariff classification set out

8 in Annex 4–A of the Agreement shall be consid9 ered to be an originating good if the total

10 weight of all such fibers or yarns in that com11 ponent is not more than 7 percent of the total

12 weight of that component.

13 (B) CERTAIN TEXTILE OR APPAREL

14 GOODS.—A textile or apparel good containing

15 elastomeric yarns in the component of the good

16 that determines the tariff classification of the

17 good shall be considered to be an originating

18 good only if such yarns are wholly formed in

19 the territory of Morocco or the United States.

20 (C) YARN, FABRIC, OR GROUP OF FI21 BERS.—For purposes of this paragraph, in the

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

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

24 of the good that determines the tariff classifica-
23

•HR 4842 EH

1 tion of the good’’ means all of the fibers in the

2 yarn, fabric, or group of fibers.

3 (2) GOODS PUT UP IN SETS FOR RETAIL

4 SALE.—Notwithstanding the rules set forth in Annex

5 4–A of the Agreement, textile or apparel goods clas6 sifiable as goods put up in sets for retail sale as pro7 vided for in General Rule of Interpretation 3 of the

8 HTS shall not be considered to be originating goods

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

10 good or the total value of the nonoriginating goods

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

12 of the set determined for purposes of assessing cus13 toms duties.

14 (i) DEFINITIONS.—In this section:

15 (1) DIRECT COSTS OF PROCESSING OPER16 ATIONS.—

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

18 of processing operations’’, with respect to a

19 good, includes, to the extent they are includable

20 in the appraised value of the good when im21 ported into Morocco or the United States, as

22 the case may be, the following:

23 (i) All actual labor costs involved in

24 the growth, production, or manufacture of

25 the good, including fringe benefits, on-the-
24

•HR 4842 EH

1 job training, and the costs of engineering,

2 supervisory, quality control, and similar

3 personnel.

4 (ii) Tools, dies, molds, and other indi5 rect materials, and depreciation on ma6 chinery and equipment that are allocable

7 to the good.

8 (iii) Research, development, design,

9 engineering, and blueprint costs, to the ex10 tent that they are allocable to the good.

11 (iv) Costs of inspecting and testing

12 the good.

13 (v) Costs of packaging the good for

14 export to the territory of the other country.

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

16 of processing operations’’ does not include costs

17 that are not directly attributable to a good or

18 are not costs of growth, production, or manu19 facture of the good, such as—

20 (i) profit; and

21 (ii) general expenses of doing business

22 that are either not allocable to the good or

23 are not related to the growth, production,

24 or manufacture of the good, such as ad25 ministrative salaries, casualty and liability
25

•HR 4842 EH

1 insurance, advertising, and sales staff sala2 ries, commissions, or expenses.

3 (2) GOOD.—The term ‘‘good’’ means any mer4 chandise, product, article, or material.

5 (3) GOOD WHOLLY THE GROWTH, PRODUCT, OR

6 MANUFACTURE OF MOROCCO, THE UNITED STATES,

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

8 product, or manufacture of Morocco, the United

9 States, or both’’ means—

10 (A) a mineral good extracted in the terri11 tory of Morocco or the United States, or both;

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

13 provided for in the HTS, harvested in the terri14 tory of Morocco or the United States, or both;

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

16 territory of Morocco or the United States, or

17 both;

18 (D) a good obtained from live animals

19 raised in the territory of Morocco or the United

20 States, or both;

21 (E) a good obtained from hunting, trap22 ping, or fishing in the territory of Morocco or

23 the United States, or both;

24 (F) a good (fish, shellfish, and other ma25 rine life) taken from the sea by vessels reg-
26

•HR 4842 EH

1 istered or recorded with Morocco or the United

2 States and flying the flag of that country;

3 (G) a good produced from goods referred

4 to in subparagraph (F) on board factory ships

5 registered or recorded with Morocco or the

6 United States and flying the flag of that coun7 try;

8 (H) a good taken by Morocco or the

9 United States or a person of Morocco or the

10 United States from the seabed or beneath the

11 seabed outside territorial waters, if Morocco or

12 the United States has rights to exploit such

13 seabed;

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

15 good is obtained by Morocco or the United

16 States or a person of Morocco or the United

17 States and not processed in the territory of a

18 country other than Morocco or the United

19 States;

20 (J) waste and scrap derived from—

21 (i) production or manufacture in the

22 territory of Morocco or the United States,

23 or both; or

24 (ii) used goods collected in the terri25 tory of Morocco or the United States, or
27

•HR 4842 EH

1 both, if such goods are fit only for the re2 covery of raw materials;

3 (K) a recovered good derived in the terri4 tory of Morocco or the United States from used

5 goods and utilized in the territory of that coun6 try in the production of remanufactured goods;

7 and

8 (L) a good produced in the territory of

9 Morocco or the United States, or both,

10 exclusively—

11 (i) from goods referred to in subpara12 graphs (A) through (J), or

13 (ii) from the derivatives of goods re14 ferred to in clause (i),

15 at any stage of production.

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

17 material’’ means a good used in the growth, produc18 tion, manufacture, testing, or inspection of a good

19 but not physically incorporated into the good, or a

20 good used in the maintenance of buildings or the op21 eration of equipment associated with the growth,

22 production, or manufacture of a good, including—

23 (A) fuel and energy;

24 (B) tools, dies, and molds;
28

•HR 4842 EH

1 (C) spare parts and materials used in the

2 maintenance of equipment and buildings;

3 (D) lubricants, greases, compounding ma4 terials, and other materials used in the growth,

5 production, or manufacture of a good or used

6 to operate equipment and buildings;

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

8 safety equipment, and supplies;

9 (F) equipment, devices, and supplies used

10 for testing or inspecting the good;

11 (G) catalysts and solvents; and

12 (H) any other goods that are not incor13 porated into the good but the use of which in

14 the growth, production, or manufacture of the

15 good can reasonably be demonstrated to be a

16 part of that growth, production, or manufac17 ture.

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

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

20 the growth, production, or manufacture of another

21 good that is a new or different article of commerce

22 that has been grown, produced, or manufactured in

23 Morocco, the United States, or both.

24 (6) MATERIAL PRODUCED IN THE TERRITORY

25 OF MOROCCO OR THE UNITED STATES, OR BOTH.—
29

•HR 4842 EH

1 The term ‘‘material produced in the territory of Mo2 rocco or the United States, or both’’ means a good

3 that is either wholly the growth, product, or manu4 facture of Morocco, the United States, or both, or a

5 new or different article of commerce that has been

6 grown, produced, or manufactured in the territory of

7 Morocco or the United States, or both.

8 (7) NEW OR DIFFERENT ARTICLE OF COM9 MERCE.—

10 (A) IN GENERAL.—The term ‘‘new or dif11 ferent article of commerce’’ means, except as

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

13 (i) has been substantially transformed

14 from a good or material that is not wholly

15 the growth, product, or manufacture of

16 Morocco, the United States, or both; and

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

18 distinct from the good or material from

19 which it was transformed.

20 (B) EXCEPTION.—A good shall not be con21 sidered a new or different article of commerce

22 by virtue of having undergone simple combining

23 or packaging operations, or mere dilution with

24 water or another substance that does not mate25 rially alter the characteristics of the good.
30

•HR 4842 EH

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

2 goods’’ means materials in the form of individual

3 parts that result from—

4 (A) the complete disassembly of used goods

5 into individual parts; and

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

7 other processing of those parts that is necessary

8 for improvement to sound working condition.

9 (9) REMANUFACTURED GOOD.—The term ‘‘re10 manufactured good’’ means an industrial good that

11 is assembled in the territory of Morocco or the

12 United States and that—

13 (A) is entirely or partially comprised of re14 covered goods;

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

16 meets similar performance standards as, a like

17 good that is new; and

18 (C) enjoys a factory warranty similar to

19 that of a like good that is new.

20 (10) SIMPLE COMBINING OR PACKAGING OPER21 ATIONS.—The term ‘‘simple combining or packaging

22 operations’’ means operations such as adding bat23 teries to electronic devices, fitting together a small

24 number of components by bolting, gluing, or sol-
31

•HR 4842 EH

1 dering, or packing or repacking components to2 gether.

3 (11) SUBSTANTIALLY TRANSFORMED.—The

4 term ‘‘substantially transformed’’ means, with re5 spect to a good or material, changed as the result

6 of a manufacturing or processing operation so

7 that—

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

9 from a good that has multiple uses into a good

10 or material that has limited uses;

11 (ii) the physical properties of the good or

12 material are changed to a significant extent; or

13 (iii) the operation undergone by the good

14 or material is complex by reason of the number

15 of processes and materials involved and the

16 time and level of skill required to perform those

17 processes; and

18 (B) the good or material loses its separate

19 identity in the manufacturing or processing op20 eration.

21 (j) PRESIDENTIAL PROCLAMATION AUTHORITY.—

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

23 to proclaim, as part of the HTS—

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

25 and Annex 5–A of the Agreement; and
32

•HR 4842 EH

1 (B) any additional subordinate category

2 necessary to carry out this title consistent with

3 the Agreement.

4 (2) MODIFICATIONS.—

5 (A) IN GENERAL.—Subject to the consulta6 tion and layover provisions of section 104, the

7 President may proclaim modifications to the

8 provisions proclaimed under the authority of

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

10 chapters 50 through 63 of the HTS, as in11 cluded in Annex 4–A of the Agreement.

12 (B) ADDITIONAL PROCLAMATIONS.—Not13 withstanding subparagraph (A), and subject to

14 the consultation and layover provisions of sec15 tion 104, the President may proclaim—

16 (i) modifications to the provisions pro17 claimed under the authority of paragraph

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

19 agreement with Morocco pursuant to arti20 cle 4.3.6 of the Agreement; and

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

22 beginning on the date of the enactment of

23 this Act, modifications to correct any typo24 graphical, clerical, or other nonsubstantive

25 technical error regarding the provisions of
33

•HR 4842 EH

1 chapters 50 through 63 of the HTS, as in2 cluded in Annex 4–A of the Agreement.

3 SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE

4 AND APPAREL GOODS.

5 (a) ACTION DURING VERIFICATION.—

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

7 Treasury requests the Government of Morocco to

8 conduct a verification pursuant to article 4.4 of the

9 Agreement for purposes of making a determination

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

11 Secretary to take appropriate action described in

12 subsection (b) while the verification is being con13 ducted.

14 (2) DETERMINATION.—A determination under

15 this paragraph is a determination—

16 (A) that an exporter or producer in Mo17 rocco is complying with applicable customs

18 laws, regulations, procedures, requirements, or

19 practices affecting trade in textile or apparel

20 goods; or

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

22 good exported or produced by such exporter or

23 producer—

24 (i) qualifies as an originating good

25 under section 203 of this Act, or
34

•HR 4842 EH

1 (ii) is a good of Morocco,

2 is accurate.

3 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate

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

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

6 textile or apparel good exported or produced by the

7 person that is the subject of a verification referred

8 to in subsection (a)(1) regarding compliance de9 scribed in subsection (a)(2)(A), in a case in which

10 the request for verification was based on a reason11 able suspicion of unlawful activity related to such

12 goods; and

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

14 textile or apparel good for which a claim has been

15 made that is the subject of a verification referred to

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

17 subsection (a)(2)(B).

18 (c) ACTION WHEN INFORMATION IS INSUFFI19 CIENT.—If the Secretary of the Treasury determines that

20 the information obtained within 12 months after making

21 a request for a verification under subsection (a)(1) is in22 sufficient to make a determination under subsection

23 (a)(2), the President may direct the Secretary to take ap24 propriate action described in subsection (d) until such

25 time as the Secretary receives information sufficient to
35

•HR 4842 EH

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

2 such earlier date as the President may direct.

3 (d) APPROPRIATE ACTION DESCRIBED.—Appro4 priate action referred to in subsection (c) includes—

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

6 person that is the subject of the verification;

7 (2) denial of preferential tariff treatment under

8 the Agreement to—

9 (A) any textile or apparel good exported or

10 produced by the person that is the subject of a

11 verification referred to in subsection (a)(1) re12 garding compliance described in subsection

13 (a)(2)(A); or

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

15 claim has been made that is the subject of a

16 verification referred to in subsection (a)(1) re17 garding a claim described in subsection

18 (a)(2)(B); and

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

20 (A) any textile or apparel good exported or

21 produced by the person that is the subject of a

22 verification referred to in subsection (a)(1) re23 garding compliance described in subsection

24 (a)(2)(A); or
36

•HR 4842 EH

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

2 claim has been made that is the subject of a

3 verification referred to in subsection (a)(1) re4 garding a claim described in subsection

5 (a)(2)(B).

6 SEC. 205. REGULATIONS.

7 The Secretary of the Treasury shall prescribe such

8 regulations as may be necessary to carry out—

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

10 (2) amendments to existing law made by the

11 subsections referred to in paragraph (1); and

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

13 TITLE III—RELIEF FROM

14 IMPORTS

15 SEC. 301. DEFINITIONS.

16 In this title:

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

18 article’’ means an article that qualifies as an origi19 nating good under section 203(b) of this Act or re20 ceives preferential tariff treatment under paragraphs

21 9 through 15 of article 4.3 of the Agreement.

22 (2) MOROCCAN TEXTILE OR APPAREL ARTI23 CLE.—The term ‘‘Moroccan textile or apparel arti24 cle’’ means an article that—
37

•HR 4842 EH

1 (A) is listed in the Annex to the Agree2 ment on Textiles and Clothing referred to in

3 section 101(d)(4) of the Uruguay Round Agree4 ments Act (19 U.S.C. 3511(d)(4)); and

5 (B) is a Moroccan article.

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

7 means the United States International Trade Com8 mission.

9 Subtitle A—Relief From Imports

10 Benefiting From the Agreement

11 SEC. 311. COMMENCING OF ACTION FOR RELIEF.

12 (a) FILING OF PETITION.—

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

14 under this subtitle for the purpose of adjusting to

15 the obligations of the United States under the

16 Agreement may be filed with the Commission by an

17 entity, including a trade association, firm, certified

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

19 representative of an industry. The Commission shall

20 transmit a copy of any petition filed under this sub21 section to the United States Trade Representative.

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

23 petition under this subsection may request that pro24 visional relief be provided as if the petition had been
38

•HR 4842 EH

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

2 (19 U.S.C. 2252(a)).

3 (3) CRITICAL CIRCUMSTANCES.—Any allegation

4 that critical circumstances exist shall be included in

5 the petition.

6 (b) INVESTIGATION AND DETERMINATION.—Upon

7 the filing of a petition under subsection (a), the Commis8 sion, unless subsection (d) applies, shall promptly initiate

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

10 reduction or elimination of a duty provided for under the

11 Agreement, a Moroccan article is being imported into the

12 United States in such increased quantities, in absolute

13 terms or relative to domestic production, and under such

14 conditions that imports of the Moroccan article constitute

15 a substantial cause of serious injury or threat thereof to

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

17 directly competitive with, the imported article.

18 (c) APPLICABLE PROVISIONS.—The following provi19 sions of section 202 of the Trade Act of 1974 (19 U.S.C.

20 2252) apply with respect to any investigation initiated

21 under subsection (b):

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

23 (b).

24 (2) Subsection (c).

25 (3) Subsection (d).
39

•HR 4842 EH

1 (4) Subsection (i).

2 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No

3 investigation may be initiated under this section with re4 spect to any Moroccan article if, after the date on which

5 the Agreement enters into force, import relief has been

6 provided with respect to that Moroccan article under this

7 subtitle.

8 SEC. 312. COMMISSION ACTION ON PETITION.

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

10 days if critical circumstances have been alleged) after the

11 date on which an investigation is initiated under section

12 311(b) with respect to a petition, the Commission shall

13 make the determination required under that section.

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

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

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

17 1330(d) (1), (2), and (3)) shall be applied with respect

18 to determinations and findings made under this section

19 as if such determinations and findings were made under

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

21 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

22 DETERMINATION AFFIRMATIVE.—If the determination

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

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

25 may consider a determination of the Commission to be an
40

•HR 4842 EH

1 affirmative determination as provided for under paragraph

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

3 1330(d)), the Commission shall find, and recommend to

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

5 the amount of import relief that is necessary to remedy

6 or prevent the injury found by the Commission in the de7 termination and to facilitate the efforts of the domestic

8 industry to make a positive adjustment to import competi9 tion. The import relief recommended by the Commission

10 under this subsection shall be limited to that described in

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

12 who voted in the affirmative under subsection (a) are eligi13 ble to vote on the proposed action to remedy or prevent

14 the injury found by the Commission. Members of the Com15 mission who did not vote in the affirmative may submit,

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

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

18 or prevent the injury.

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

20 date that is 30 days after the date on which a determina21 tion is made under subsection (a) with respect to an inves22 tigation, the Commission shall submit to the President a

23 report that includes—
41

•HR 4842 EH

1 (1) the determination made under subsection

2 (a) and an explanation of the basis for the deter3 mination;

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

5 affirmative, any findings and recommendations for

6 import relief made under subsection (c) and an ex7 planation of the basis for each recommendation; and

8 (3) any dissenting or separate views by mem9 bers of the Commission regarding the determination

10 and recommendation referred to in paragraphs (1)

11 and (2).

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

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

14 promptly make public such report (with the exception of

15 information which the Commission determines to be con16 fidential) and shall cause a summary thereof to be pub17 lished in the Federal Register.

18 SEC. 313. PROVISION OF RELIEF.

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

20 30 days after the date on which the President receives the

21 report of the Commission in which the Commission’s de22 termination under section 312(a) is affirmative, or which

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

24 President considers to be affirmative under paragraph (1)

25 of section 330(d) of the Tariff Act of 1930 (19 U.S.C.
42

•HR 4842 EH

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

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

3 of such determination to the extent that the President de4 termines necessary to remedy or prevent the injury found

5 by the Commission and to facilitate the efforts of the do6 mestic industry to make a positive adjustment to import

7 competition.

8 (b) EXCEPTION.—The President is not required to

9 provide import relief under this section if the President

10 determines that the provision of the import relief will not

11 provide greater economic and social benefits than costs.

12 (c) NATURE OF RELIEF.—

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

14 provisional relief) that the President is authorized to

15 provide under this section with respect to imports of

16 an article is as follows:

17 (A) The suspension of any further reduc18 tion provided for under Annex IV of the Agree19 ment in the duty imposed on such article.

20 (B) An increase in the rate of duty im21 posed on such article to a level that does not

22 exceed the lesser of—

23 (i) the column 1 general rate of duty

24 imposed under the HTS on like articles at

25 the time the import relief is provided; or
43

•HR 4842 EH

1 (ii) the column 1 general rate of duty

2 imposed under the HTS on like articles on

3 the day before the date on which the

4 Agreement enters into force.

5 (C) In the case of a duty applied on a sea6 sonal basis to such article, an increase in the

7 rate of duty imposed on the article to a level

8 that does not exceed the lesser of—

9 (i) the column 1 general rate of duty

10 imposed under the HTS on like articles for

11 the immediately preceding corresponding

12 season; or

13 (ii) the column 1 general rate of duty

14 imposed under the HTS on like articles on

15 the day before the date on which the

16 Agreement enters into force.

17 (2) PROGRESSIVE LIBERALIZATION.—If the pe18 riod for which import relief is provided under this

19 section is greater than 1 year, the President shall

20 provide for the progressive liberalization of such re21 lief at regular intervals during the period in which

22 the relief is in effect.

23 (d) PERIOD OF RELIEF.—

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

25 any import relief that the President provides under
44

•HR 4842 EH

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

2 years.

3 (2) EXTENSION.—

4 (A) IN GENERAL.—Subject to subpara5 graph (C), the President, after receiving an af6 firmative determination from the Commission

7 under subparagraph (B), may extend the effec8 tive period of any import relief provided under

9 this section if the President determines that—

10 (i) the import relief continues to be

11 necessary to remedy or prevent serious in12 jury and to facilitate adjustment by the do13 mestic industry to import competition; and

14 (ii) there is evidence that the industry

15 is making a positive adjustment to import

16 competition.

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

18 petition on behalf of the industry concerned

19 that is filed with the Commission not earlier

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

21 than the date which is 6 months, before the

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

23 terminate, the Commission shall conduct an in24 vestigation to determine whether action under

25 this section continues to be necessary to remedy
45

•HR 4842 EH

1 or prevent serious injury and to facilitate ad2 justment by the domestic industry to import

3 competition and whether there is evidence that

4 the industry is making a positive adjustment to

5 import competition.

6 (ii) The Commission shall publish notice of

7 the commencement of any proceeding under

8 this subparagraph in the Federal Register and

9 shall, within a reasonable time thereafter, hold

10 a public hearing at which the Commission shall

11 afford interested parties and consumers an op12 portunity to be present, to present evidence,

13 and to respond to the presentations of other

14 parties and consumers, and otherwise to be

15 heard.

16 (iii) The Commission shall transmit to the

17 President a report on its investigation and de18 termination under this subparagraph not later

19 than 60 days before the action under subsection

20 (a) is to terminate, unless the President speci21 fies a different date.

22 (C) PERIOD OF IMPORT RELIEF.—Any im23 port relief provided under this section, including

24 any extensions thereof, may not, in the aggre25 gate, be in effect for more than 5 years.
46

•HR 4842 EH

1 (e) RATE AFTER TERMINATION OF IMPORT RE2 LIEF.—When import relief under this section is termi3 nated with respect to an article, the rate of duty on that

4 article shall be the rate that would have been in effect,

5 but for the provision of such relief, on the date on which

6 the relief terminates.

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

8 relief may be provided under this section on any article

9 that—

10 (1) is subject to an assessment of additional

11 duty under section 202(b); or

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

13 subtitle after the date on which the Agreement en14 ters into force.

15 SEC. 314. TERMINATION OF RELIEF AUTHORITY.

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

17 import relief may be provided under this subtitle with re18 spect to a good after the date that is 5 years after the

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

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

21 the Agreement.

22 (b) PRESIDENTIAL DETERMINATION.—Import relief

23 may be provided under this subtitle in the case of a Moroc24 can article after the date on which such relief would, but

25 for this subsection, terminate under subsection (a), if the
47

•HR 4842 EH

1 President determines that Morocco has consented to such

2 relief.

3 SEC. 315. COMPENSATION AUTHORITY.

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

5 (19 U.S.C. 2133), any import relief provided by the Presi6 dent under section 313 shall be treated as action taken

7 under chapter 1 of title II of such Act.

8 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

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

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

11 (1) by striking ‘‘and’’; and

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

13 and title III of the United States-Morocco Free

14 Trade Agreement Implementation Act’’.

15 Subtitle B—Textile and Apparel

16 Safeguard Measures

17 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

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

19 the purpose of adjusting to the obligations of the United

20 States under the Agreement may be filed with the Presi21 dent by an interested party. Upon the filing of a request,

22 the President shall review the request to determine, from

23 information presented in the request, whether to com24 mence consideration of the request.
48

•HR 4842 EH

1 (b) PUBLICATION OF REQUEST.—If the President de2 termines that the request under subsection (a) provides

3 the information necessary for the request to be considered,

4 the President shall cause to be published in the Federal

5 Register a notice of commencement of consideration of the

6 request, and notice seeking public comments regarding the

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

8 and the dates by which comments and rebuttals must be

9 received.

10 SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

11 (a) DETERMINATION.—

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

13 made under section 321(b), the President shall de14 termine whether, as a result of the reduction or

15 elimination of a duty under the Agreement, a Moroc16 can textile or apparel article is being imported into

17 the United States in such increased quantities, in

18 absolute terms or relative to the domestic market for

19 that article, and under such conditions as to cause

20 serious damage, or actual threat thereof, to a domes21 tic industry producing an article that is like, or di22 rectly competitive with, the imported article.

23 (2) SERIOUS DAMAGE.—In making a deter24 mination under paragraph (1), the President—
49

•HR 4842 EH

1 (A) shall examine the effect of increased

2 imports on the domestic industry, as reflected

3 in changes in such relevant economic factors as

4 output, productivity, utilization of capacity, in5 ventories, market share, exports, wages, em6 ployment, domestic prices, profits, and invest7 ment, none of which is necessarily decisive; and

8 (B) shall not consider changes in tech9 nology or consumer preference as factors sup10 porting a determination of serious damage or

11 actual threat thereof.

12 (b) PROVISION OF RELIEF.—

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

14 subsection (a) is affirmative, the President may pro15 vide relief from imports of the article that is the

16 subject of such determination, as described in para17 graph (2), to the extent that the President deter18 mines necessary to remedy or prevent the serious

19 damage and to facilitate adjustment by the domestic

20 industry to import competition.

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

22 President is authorized to provide under this sub23 section with respect to imports of an article is an in24 crease in the rate of duty imposed on the article to

25 a level that does not exceed the lesser of—
50

•HR 4842 EH

1 (A) the column 1 general rate of duty im2 posed under the HTS on like articles at the

3 time the import relief is provided; or

4 (B) the column 1 general rate of duty im5 posed under the HTS on like articles on the

6 day before the date on which the Agreement en7 ters into force.

8 SEC. 323. PERIOD OF RELIEF.

9 (a) IN GENERAL.—Subject to subsection (b), the im10 port relief that the President provides under subsection

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

12 for more than 3 years.

13 (b) EXTENSION.—

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

15 the President may extend the effective period of any

16 import relief provided under this subtitle for a pe17 riod of not more than 2 years, if the President de18 termines that—

19 (A) the import relief continues to be nec20 essary to remedy or prevent serious damage

21 and to facilitate adjustment by the domestic in22 dustry to import competition; and

23 (B) there is evidence that the industry is

24 making a positive adjustment to import com25 petition.
51

•HR 4842 EH

1 (2) LIMITATION.—Any relief provided under

2 this subtitle, including any extensions thereof, may

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

4 years.

5 SEC. 324. ARTICLES EXEMPT FROM RELIEF.

6 The President may not provide import relief under

7 this subtitle with respect to any article if—

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

9 under this subtitle after the date on which the

10 Agreement enters into force; or

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

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

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

14 When import relief under this subtitle is terminated

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

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

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

18 terminates.

19 SEC. 326. TERMINATION OF RELIEF AUTHORITY.

20 No import relief may be provided under this subtitle

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

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

23 pursuant to the Agreement.
52

•HR 4842 EH

1 SEC. 327. 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 this subtitle shall be treated as action taken

5 under chapter 1 of title II of such Act.

6 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

7 The President may not release information which is

8 submitted in a proceeding under this subtitle and which

9 the President considers to be confidential business infor10 mation unless the party submitting the confidential busi11 ness information had notice, at the time of submission,

12 that such information would be released, or such party

13 subsequently consents to the release of the information.

14 To the extent a party submits confidential business infor15 mation to the President in a proceeding under this sub16 title, the party also shall submit a nonconfidential version

17 of the information, in which the confidential business in18 formation is summarized or, if necessary, deleted.

Passed the House of Representatives July 22, 2004.

Attest:

Clerk.