II 

109TH CONGRESS 

1ST SESSION S. 738 

To provide relief for the cotton shirt industry. 

IN THE SENATE OF THE UNITED STATES 

APRIL 6, 2005 

Mr. SPECTER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide relief for the cotton shirt industry. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act shall be known as the ‘‘Cotton Shirt Indus5 try Tariff Relief and Technical Corrections Act’’. 

6 SEC. 2. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COT7 TON SHIRTING FABRIC. 

8 (a) CERTAIN COTTON SHIRTING FABRICS.— 

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

10 is amended by inserting in numerical sequence the 

11 following new headings: 
2 

•S 738 IS 

‘‘ 9902.52.08 Woven fabrics of cotton, all the foregoing certified by the importer as 

suitable for use in making men’s and 

boys’ shirts and as imported by or for 

the benefit of a manufacturer of 

men’s and boys’ shirts, subject to the 

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

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

Trade Preference Act (19 U.S.C. 

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

12/31/2006 

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

containing 100 percent pima cotton 

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

boys’ shirts, and as imported by or 

for the benefit of a manufacturer of 

men’s and boys’ shirts (provided for 

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

Andean Trade Preference Act (19 

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

12/31/2005 ’’. 

1 (2) DEFINITIONS AND LIMITATION ON QUAN2 TITY OF IMPORTS.—The U.S. Notes to chapter 99 

3 are amended by adding at the end the following: 

4 ‘‘18. For purposes of subheadings 9902.52.08 and 

5 9902.52.09, the term ‘making’ means cutting and sewing 

6 in the United States, and the term ‘manufacturer’ means 

7 a person or entity that cuts and sews in the United States. 

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

9 under subheading 9902.52.08 from January 1 to Decem10 ber 31 of each year, inclusive, by or on behalf of each man11 ufacturer of men’s and boys’ shirts shall be limited to 85 

12 percent of the total square meter equivalents of all im13 ported cotton woven fabric used by such manufacturer in 

14 cutting and sewing men’s and boys’ cotton shirts in the 

15 United States and purchased by such manufacturer dur16 ing calendar year 2000.’’. 
3 

•S 738 IS 

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

2 (1) AUTHORITY TO ISSUE LICENSES AND LI3 CENSE USE.—To implement the limitation on the 

4 quantity of imports of cotton woven fabrics under 

5 subheading 9902.52.08 of the Harmonized Tariff 

6 Schedule of the United States, as required by U.S. 

7 Note 19 to subchapter II of chapter 99 of such 

8 Schedule, for the entry, or withdrawal from ware9 house for consumption, the Secretary of Commerce 

10 shall issue licenses to eligible manufacturers with re11 spect to items entered under subheading 9902.52.08 

12 specifying the annual quantity restrictions under 

13 each such license. A licensee may assign the author14 ity (in whole or in part) to import fabric under sub15 heading 9902.52.08 of such Schedule. 

16 (2) LICENSES UNDER U.S. NOTE 19.—For pur17 poses of U.S. Note 19 to subchapter II of chapter 

18 99 of the Harmonized Tariff Schedule of the United 

19 States, the Secretary of Commerce shall issue a li20 cense within 60 days of an application containing a 

21 notarized affidavit from an officer of the manufac22 turer that the manufacturer is eligible to receive a 

23 license and stating the quantity of imported cotton 

24 woven fabric purchased during calendar year 2000 
4 

•S 738 IS 

1 for use in the cutting and sewing of men’s and boys’ 

2 shirts in the United States. 

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

4 described in this subsection, the date of purchase 

5 shall be— 

6 (A) the invoice date if the manufacturer is 

7 not the importer of record; and 

8 (B) the date of entry if the manufacturer 

9 is the importer of record. 

10 SEC. 3. PIMA COTTON TRUST FUND. 

11 (a) ESTABLISHMENT OF TRUST FUND.— 

12 (1) IN GENERAL.—There is hereby established 

13 within the Treasury of the United States a trust 

14 fund to be known as the ‘‘Pima Cotton Trust Fund’’ 

15 (hereinafter in this section referred to the ‘‘Trust 

16 Fund’’), consisting of such amounts as may be 

17 transferred to the Trust Fund under paragraph (2). 

18 (2) TRANSFER OF AMOUNTS.— 

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

20 2005, the Secretary of the Treasury shall trans21 fer to the Trust Fund out of the general fund 

22 of the Treasury of the United States amounts 

23 determined by the Secretary of the Treasury to 

24 be equivalent to the amounts received in the 

25 general fund that are attributable to the duty 
5 

•S 738 IS 

1 received since January 1, 1994, on articles 

2 under subheadings 5208.21.60, 5208.22.80, 

3 5208.29.80, 5208.31.80, 5208.32.50, 

4 5208.39.80, 5208.41.80, 5208.42.50, 

5 5208.49.80, 5208.51.80, 5208.52.50, 

6 5208.59.80, 5210.21.80, and 5210.31.80 of the 

7 Harmonized Tariff Schedule of the United 

8 States, subject to the limitation in subpara9 graph (B). 

10 (B) LIMITATION.—The Secretary shall not 

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

12 fund in any fiscal year, and shall not transfer 

13 any amount beginning on or after October 1, 

14 2007. 

15 (b) DISTRIBUTION OF FUNDS.— 

16 (1) IN GENERAL.—From amounts in the Trust 

17 Fund, the Commissioner of Customs and Border 

18 Protection shall make the following payments annu19 ally beginning in fiscal year 2005: 

20 (A) 25 percent of the amounts in the 

21 Trust Fund shall be paid annually to a nation22 ally recognized association established for the 

23 promotion of pima cotton grown in the United 

24 States for use in textile and apparel goods. 
6 

•S 738 IS 

1 (B) 25 percent of the amounts in the 

2 Trust Fund shall be paid annually to yarn spin3 ners of pima cotton grown in the United States, 

4 and shall be allocated to each such spinner in 

5 an amount that bears the same ratio as— 

6 (i) the spinner’s production of ring 

7 spun cotton yarns, measuring less than 

8 83.33 decitex (exceeding 120 metric num9 ber) from pima cotton grown in the United 

10 States in single and plied form during cal11 endar year 2002 (as evidenced by an affi12 davit provided by the spinner), bears to 

13 (ii) the production of yarns described 

14 in clause (i) during calendar year 2002 for 

15 all spinners who qualify under this sub16 paragraph. 

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

18 Fund shall be paid annually to manufacturers 

19 who cut and sew cotton shirts in the United 

20 States who certify that they used imported cot21 ton fabric during the period January 1, 1998, 

22 through July 1, 2003, and shall be allocated to 

23 each such manufacturer in an amount that 

24 bears the same ratio as— 
7 

•S 738 IS 

1 (i) the dollar value (excluding duty, 

2 shipping, and related costs) of imported 

3 woven cotton shirting fabric of 80s or 

4 higher count and 2-ply in warp purchased 

5 by the manufacturer during calendar year 

6 2002 (as evidenced by an affidavit from 

7 the manufacturer that meets the require8 ments of paragraph (2)) used in the manu9 facturing of men’s and boys’ cotton shirts, 

10 bears to 

11 (ii) the dollar value (excluding duty, 

12 shipping, and related costs) of the fabric 

13 described in clause (i) purchased during 

14 calendar year 2002 by all manufacturers 

15 who qualify under this subparagraph. 

16 (2) AFFIDAVIT OF SHIRTING MANUFACTUR17 ERS.—The affidavit required by paragraph (1)(C) is 

18 a notarized affidavit of an officer of the manufac19 turer of men’s and boys’ shirts that affirms— 

20 (A) that the manufacturer used imported 

21 cotton fabric during the period January 1, 

22 1998, through July 1, 2003, to cut and sew 

23 men’s and boys’ woven cotton shirts in the 

24 United States; 
8 

•S 738 IS 

1 (B) the dollar value of imported woven cot2 ton shirting fabric of 80s or higher count and 

3 2-ply in warp purchased during calendar year 

4 2002; 

5 (C) that the manufacturer maintains in6 voices along with other supporting documenta7 tion (such as price lists and other technical de8 scriptions of the fabric qualities) showing the 

9 dollar value of such fabric purchased, the date 

10 of purchase, and evidencing the fabric as woven 

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

12 in warp; and 

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

14 the manufacturing of men’s and boys’ cotton 

15 shirts. 

16 (3) DATE OF PURCHASE.—For purposes of the 

17 affidavit required by paragraph (2), the date of pur18 chase shall be the invoice date, and the dollar value 

19 shall be determined excluding duty, shipping, and re20 lated costs. 

21 (4) AFFIDAVIT OF YARN SPINNERS.—The affi22 davit required by paragraph (1)(B), is a notarized 

23 affidavit of an officer of a company that produces 

24 ring spun yarns that affirms— 
9 

•S 738 IS 

1 (A) that the producer used pima cotton 

2 grown in the United States during the period 

3 January 1, 2002, through December 31, 2002, 

4 to produce ring spun cotton yarns, measuring 

5 less than 83.33 decitex (exceeding 120 metric 

6 number) in single and plied form during 2002; 

7 (B) the quantity, measured in pounds of 

8 ring spun cotton yarns, measuring less than 

9 83.33 decitex (exceeding 120 metric number), 

10 in single and plied form during calendar year 

11 2002; and 

12 (C) that the producer maintains sup13 porting documentation showing the quantity of 

14 such yarns produced, and evidencing the yarns 

15 as ring spun cotton yarns, measuring less than 

16 83.33 decitex (exceeding 120 metric number), 

17 in single and plied form during calendar year 

18 2002. 

19 (5) NO APPEAL.—Any amount paid by the 

20 Commissioner of Customs and Border Protection 

21 under this section shall be final and not subject to 

22 appeal or protest. 

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