II 

111TH CONGRESS 

2D SESSION S. 3170 

To provide for preferential duty treatment to certain apparel articles of 

the Philippines. 

IN THE SENATE OF THE UNITED STATES 

MARCH 25, 2010 

Mr. BOND (for himself and Mr. INOUYE) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To provide for preferential duty treatment to certain apparel 

articles of the Philippines. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Save Our Industries 

5 Act of 2010’’ or the ‘‘SAVE Act’’. 

6 SEC. 2. FINDINGS; PURPOSES. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) The United States and the Republic of the 

9 Philippines (in this Act referred to as the ‘‘Phil10 ippines’’), a former colony, share deep historical and 


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1 cultural connections. The United States has devel2 oped preferential trading relations with former colo3 nies such as the Marshall Islands, the Federated 

4 States of Micronesia, and the Republic of Palau. 

5 (2) The Philippines represents a tremendous 

6 economic potential and enduring political and secu7 rity significance to the United States. 

8 (3) The United States and the Philippines 

9 maintain a fair trading relationship that should be 

10 expanded to the mutual benefit of both countries. In 

11 2008, United States exports to the Philippines were 

12 valued at $8,300,000,000, and United States im13 ports from the Philippines were valued at 

14 $8,700,000,000. 

15 (4) United States textile exports to the Phil16 ippines were valued at nearly $20,000,000 in 2008, 

17 consisting mostly of broadwoven, industrial or spe18 cialty, and nonwoven fabrics. The potential for ex19 port growth in this area can sustain and create 

20 thousands of jobs. 

21 (5) The Philippines’ textile and apparel indus22 tries, like that of their counterparts in the United 

23 States, share the same challenges and risks stem24 ming from the end of the textile and apparel quota 

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1 guards that continued to control apparel imports 

2 from the People’s Republic of China until January 

3 1, 2009. 

4 (6) The United States apparel fabrics industry 

5 is heavily dependent on sewing outside the United 

6 States, and, for the first time, United States textile 

7 manufacturers would have a program that utilizes 

8 sewing done in an Asian country. In contrast, most 

9 sewing of United States fabric occurs in the Western 

10 Hemisphere, with about 75 percent of United States 

11 fabric exports presently going to countries that are 

12 parties to the North American Free Trade Agree13 ment and the Dominican Republic-Central America14 United States Free Trade Agreement. Increased de15 mand for United States fabric in Asia will increase 

16 opportunities for the United States industry. 

17 (7) Apparel producers in the Western Hemi18 sphere are excellent at making basic garments such 

19 as T-shirts and standard 5-pocket jeans. However, 

20 the needle capability does not exist to make high21 fashion, more sophisticated garments such as em22 broidered T-shirts and fashion jeans with embellish23 ments. Such apparel manufacturing is done almost 

24 exclusively in Asia. 


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1 (8) A program that provides preferential duty 

2 treatment for certain apparel articles of the Phil3 ippines will provide a strong incentive for Philippine 

4 apparel manufacturers to use United States fabrics, 

5 which will open new opportunities for the United 

6 States textile industry and increase opportunities for 

7 United States yarn manufactures. At the same time, 

8 the United States would be provided a more diverse 

9 range of sourcing opportunities. 

10 (b) PURPOSES.—The purposes of this Act are— 

11 (1) to encourage higher levels of trade in tex12 tiles and apparel between the United States and the 

13 Philippines and enhance the commercial well-being 

14 of their respective industries in times of global eco15 nomic hardship; 

16 (2) to enhance and broaden the economic, secu17 rity, and political ties between the United States and 

18 the Philippines; 

19 (3) to stimulate economic activity and develop20 ment throughout the Philippines, including regions 

21 such as Manila and Mindanao; and 

22 (4) to provide a stepping stone to an eventual 

23 free trade agreement between the United States and 

24 the Philippines, either bilaterally or as part of a re25 gional agreement. 


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1 SEC. 3. DEFINITIONS. 

2 In this Act: 

3 (1) CLASSIFICATION UNDER THE HTS.—The 

4 term ‘‘classification under the HTS’’ means, with re5 spect to an article, the 8-digit subheading under 

6 which the article is classified in the HTS. 

7 (2) HTS.—The term ‘‘HTS’’ means the Har8 monized Tariff Schedule of the United States. 

9 (3) ENTERED.—The term ‘‘entered’’ means en10 tered, or withdrawn from warehouse for consump11 tion, in the customs territory of the United States. 

12 (4) KNIT-TO-SHAPE.—An article is ‘‘knit-to13 shape’’ if 50 percent or more of the exterior surface 

14 area of the article is formed by major parts that 

15 have been knitted or crocheted directly to the shape 

16 used in the article, with no consideration being given 

17 to patch pockets, appliques, or the like. Minor cut18 ting, trimming, or sewing of those major parts shall 

19 not affect the determination of whether an article is 

20 ‘‘knit-to-shape’’. 

21 (5) WHOLLY ASSEMBLED.—An article is ‘‘whol22 ly assembled in the Philippines or the United 

23 States’’ if— 

24 (A) all components of the article pre-ex25 isted in essentially the same condition as the 

26 components exist in the finished article and the 


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1 components were combined to form the finished 

2 article in the Philippines or the United States; 

3 and 

4 (B) the article is comprised of at least 2 

5 components. 

6 (6) WHOLLY FORMED.—A yarn is ‘‘wholly 

7 formed in the United States’’ if all of the yarn form8 ing and finishing operations, starting with the extru9 sion of filaments, strips, film, or sheet, and including 

10 slitting a film or sheet into strip, or the spinning of 

11 all fibers into yarn, or both, and ending with a fin12 ished yarn or plied yarn, takes place in the United 

13 States. 

14 SEC. 4. TRADE BENEFITS. 

15 (a) ELIGIBLE APPAREL ARTICLE.—For purposes of 

16 this section, an eligible apparel article is any one of the 

17 following: 

18 (1) Men’s and boys’ cotton shirts, T-shirts and 

19 tank tops (other than underwear T-shirts and tank 

20 tops), pullovers, sweatshirts, tops, and similar arti21 cles classifiable under subheading 6105.10, 6105.90, 

22 6109.10, 6110.20, 6110.90, 6112.11, or 6114.20 of 

23 the HTS. 

24 (2) Women’s and girls’ cotton shirts, blouses, 

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1 shirts and tank tops), pullovers, sweatshirts, tops, 

2 and similar articles classifiable under subheading 

3 6106.10, 6106.90, 6109.10, 6110.20, 6110.90, 

4 6112.11, 6114.20, or 6117.90 of the HTS. 

5 (3) Men’s and boys’ cotton trousers, breeches, 

6 and shorts classifiable under subheading 6103.10, 

7 6103.42, 6103.49, 6112.11, 6113.00, 6203.19, 

8 6203.42, 6203.49, 6210.40, 6211.20 6211.32 of the 

9 HTS. 

10 (4) Women’s and girls’ cotton trousers, breech11 es, and shorts classifiable under subheading 

12 6104.19, 6104.62, 6104.69, 6112.11, 6113.00, 

13 6117.90, 6204.12, 6204.19, 6204.62, 6204.69, 

14 6210.50, 6211.20, 6211.42, or 6217.90 of the HTS. 

15 (5) Men’s and boys’ cotton underpants, briefs, 

16 underwear-type T-shirts and singlets, thermal under17 shirts, other undershirts, and similar articles classifi18 able under subheading 6107.11, 6109.10, 6207.11, 

19 or 6207.91 of the HTS. 

20 (6) Men’s and boys’ manmade fiber underpants, 

21 briefs, underwear-type T-shirts and singlets, thermal 

22 undershirts, other undershirts, and similar articles 

23 classifiable under subheading 6107.12, 6109.90, 

24 6207.19, or 6207.99 of the HTS. 


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1 (7) Men’s and boys’ manmade fiber shirts, T2 shirts, tank tops (other than underwear T-shirts and 

3 tank tops), pullovers, sweatshirts, tops, and similar 

4 articles classifiable under subheading 6105.20, 

5 6105.90, 6110.30, 6110.90, 6112.12, 6112.19, or 

6 6114.30 of the HTS. 

7 (8) Women’s and girls’ manmade fiber shirts, 

8 blouses, T-shirts, tank tops (other than underwear 

9 T-shirts and tank tops), pullovers, sweatshirts, tops, 

10 and similar articles classifiable under subheading 

11 6106.20, 6106.90, 6110.30, 6110.90, 6112.12, 

12 6112.19, 6114.30, or 6117.90 of the HTS. 

13 (9) Men’s and boys’ manmade fiber trousers, 

14 breeches, and shorts classifiable under subheading 

15 6103.43, 6103.49, 6112.12, 6112.19, 6112.20, 

16 6113.00, 6203.43, 6203.49, 6210.40, 6211.20, or 

17 6211.33 of the HTS. 

18 (10) Women’s and girls’ manmade fiber trou19 sers, breeches, and shorts classifiable under sub20 heading 6104.63, 6104.69, 6112.12, 6112.19, 

21 6112.20, 6113.00, 6117.90, 6204.63, 6204.69, 

22 6210.50, 6211.20, 6211.43, or 6217.90 of the HTS. 

23 (11) Men’s and boys’ manmade fiber shirts 

24 classifiable under subheading 6205.30, 6205.90, or 

25 6211.33 of the HTS. 


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1 (12) Cotton brassieres and other body support 

2 garments classifiable under subheading 6212.10, 

3 6212.20, or 6212.30 of the HTS. 

4 (13) Manmade fiber brassieres and other body 

5 support garments classifiable under subheading 

6 6212.10, 6212.20, or 6212.30 of the HTS. 

7 (14) Manmade fiber swimwear classifiable 

8 under subheading 6112.31, 6112.41, 6211.11, or 

9 6211.12 of the HTS. 

10 (15) Cotton swimwear classifiable under sub11 heading 6112.39, 6112.49, 6211.11, or 6211.12 of 

12 the HTS. 

13 (16) Men’s and boys’ manmade fiber coats, 

14 overcoats, carcoats, capes, cloaks, anoraks (including 

15 ski-jackets), windbreakers, padded sleeveless jackets 

16 with attachments for sleeves, and similar articles 

17 classifiable under subheading 6101.30, 6101.90, 

18 6112.12, 6112.19, 6112.20, or 6113.00 of the HTS. 

19 (17) Women’s and girls’ manmade fiber coats, 

20 overcoats, carcoats, capes, cloaks, anoraks (including 

21 ski-jackets), windbreakers, padded sleeveless jackets 

22 with attachments for sleeves, and similar articles 

23 classifiable under subheading 6102.30, 6102.90, 

24 6104.33, 6104.39, 6112.12, 6112.19, 6112.20, 

25 6113.00, or 6117.90 of the HTS. 


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1 (b) DUTY-FREE TREATMENT FOR CERTAIN ELIGI2 BLE APPAREL ARTICLES.— 

3 (1) DUTY-FREE TREATMENT.—Subject to para4 graphs (2) and (3), an eligible apparel article shall 

5 enter the United States free of duty if the article is 

6 wholly assembled in the United States or the Phil7 ippines, or both, and if the component determining 

8 the article’s classification under the HTS consists 

9 entirely of— 

10 (A) fabric cut in the United States or the 

11 Philippines, or both, from fabric wholly formed 

12 in the United States from yarns wholly formed 

13 in the United States; 

14 (B) components knit-to-shape in the 

15 United States from yarns wholly formed in the 

16 United States; or 

17 (C) any combination of the fabric or com18 ponents knit-to-shape described in subpara19 graphs (A) and (B). 

20 (2) DYEING, PRINTING, OR FINISHING.—An ap21 parel article described in paragraph (1) shall be in22 eligible for duty-free treatment under such para23 graph if the component determining the article’s 

24 classification under the HTS comprises any fabric, 

25 fabric component, or component knit-to-shape in the 


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1 United States that was dyed, printed, or finished at 

2 any place other than in the United States. 

3 (3) OTHER PROCESSES.—An apparel article de4 scribed in paragraph (1) shall not be disqualified 

5 from eligibility for duty-free treatment under such 

6 paragraph because it undergoes stone-washing, en7 zyme-washing, acid-washing, permapressing, oven8 baking, bleaching, garment-dyeing, screen printing, 

9 or other similar processes in either the United 

10 States or the Philippines. 

11 (c) DUTY REDUCTION FOR CERTAIN ELIGIBLE AP12 PAREL ARTICLES.— 

13 (1) DUTY REDUCTION.—An eligible apparel ar14 ticle shall enter the United States at a reduced rate 

15 of duty specified in paragraph (2) if it is wholly as16 sembled in the United States or the Philippines, or 

17 both, and if the component determining the article’s 

18 classification under the HTS consists entirely of— 

19 (A) fabric cut in the United States or the 

20 Philippines, or both, from fabric wholly formed 

21 in the United States or the Philippines, or both, 

22 from yarns wholly formed in the United States; 

23 (B) components knit-to-shape in the 

24 United States or the Philippines, or both, from 

25 yarns wholly formed in the United States; or 


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1 (C) any combination of fabric or compo2 nents knit-to-shape that are described in sub3 paragraphs (A) and (B). 

4 (2) REDUCED TARIFF RATE.—An eligible ap5 parel article described in paragraph (1) shall be sub6 ject to duty in an amount that is equal to 50 percent 

7 of the column 1 rate of duty that applies to the ap8 parel article under its classification under the HTS. 

9 (d) ARTICLES ELIGIBLE UNDER BOTH SUBSECTION

10 (b) AND SUBSECTION (c).—An eligible apparel article that 

11 meets the requirements of both subsections (b) and (c) 

12 shall be eligible for duty-free treatment under subsection 

13 (b). 

14 (e) DE MINIMIS.— 

15 (1) IN GENERAL.—An eligible apparel article 

16 that is otherwise eligible for preferential treatment 

17 under this section shall not be ineligible for such 

18 preferential treatment because fibers or yarns used 

19 in the production of the component that determines 

20 the article’s classification under the HTS do not 

21 meet the requirements of subsection (b) or (c), if the 

22 total weight of all such fibers or yarns in the compo23 nent that determines the article’s classification 

24 under the HTS is not more than 10 percent of the 

25 total weight of that component. 


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1 (2) ELASTOMERIC YARNS.—Notwithstanding 

2 paragraph (1), an article described in subsection (b) 

3 or (c) that contains elastomeric yarns in the compo4 nent of the article that determines the article’s clas5 sification under the HTS shall be eligible for duty6 free treatment under this section only if such elas7 tomeric yarns are wholly formed in the United 

8 States or the Philippines. 

9 (3) DIRECT SHIPMENT.—Any apparel article 

10 described in subsection (b) or (c) is an eligible arti11 cle only if it is imported directly into the United 

12 States from the Philippines. 

13 (f) SINGLE TRANSFORMATION RULES.—Any of the 

14 following apparel articles that are wholly assembled, or 

15 knit-to-shape, in the Philippines from any combination of 

16 fabrics, fabric components, components knit-to-shape, or 

17 yarns and are imported directly into the United States 

18 from the Philippines shall enter the United States free of 

19 duty, without regard to the source of the fabric, fabric 

20 components, components knit-to-shape, or yarns from 

21 which the articles are made: 

22 (1) Any apparel article that is of a type listed 

23 in chapter rule 3, 4, or 5 for chapter 61 of the HTS 

24 (as such chapter rules are contained in paragraph 1 

25 of section A of the Annex to Proclamation 8213 of 


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1 the President of December 20, 2007) as being ex2 cluded from the scope of such chapter rule, when 

3 such chapter rule is applied to determine whether an 

4 apparel article is an originating good for purposes of 

5 general note 29(n) to the HTS, except that, for pur6 poses of this paragraph, a reference in any such 

7 chapter rule to ‘‘6104.12.00’’ shall be deemed to be 

8 a reference to ‘‘6104.19.60’’. 

9 (2) Except for brassieres classified in sub10 heading 6212.10 of the HTS, any apparel article 

11 that is of a type listed in chapter rule 3(a), 4(a), or 

12 5(a) for chapter 62 of the HTS, as such chapter 

13 rule is contained in paragraph 9 of section A of the 

14 Annex to Proclamation 8213 of the President of De15 cember 20, 2007. 

16 (3) Any article not described in paragraph (1) 

17 or (2) that is any of the following: 

18 (A) Baby garments, clothing accessories, 

19 and headwear classifiable under subheading 

20 6111.20, 6111.30, 6111.90, 6209.20, 6209.30, 

21 6209.90, or 6505.90 of the HTS. 

22 (B) Women’s and girls’ cotton coats, over23 coats, carcoats, capes, cloaks, anoraks (includ24 ing ski-jackets), windbreakers, padded sleeveless 

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1 lar articles classifiable under subheading 

2 6102.20, 6102.90, 6104.19, 6104.32, 6112.11, 

3 6113.00, 6117.90, 6202.12, 6202.19, 6202.92, 

4 6202.99, 6204.12, 6204.19, 6204.32, 6204.39, 

5 6210.30, 6210.50, 6211.20, 6211.42, or 

6 6217.90 of the HTS. 

7 (C) Cotton dresses classifiable under sub8 heading 6104.42, 6104.49, 6204.42, or 6204.49 

9 of the HTS. 

10 (D) Manmade fiber dresses classifiable 

11 under subheading 6104.43, 6104.44, 6104.49, 

12 6204.43, 6204.44, or 6204.49 of the HTS. 

13 (E) Men’s and boys’ cotton shirts classifi14 able under subheading 6205.20, 6205.90, or 

15 6211.32 of the HTS. 

16 (F) Cotton pajamas and sleepwear classifi17 able under subheading 6107.21, 6107.91, 

18 6108.31, 6207.21, 6207.91, or 6208.21 of the 

19 HTS. 

20 (G) Manmade fiber pajamas and sleepwear 

21 classifiable under subheading 6107.22, 6107.99, 

22 6108.32, 6207.22, 6207.99, or 6208.22 of the 

23 HTS. 

24 (H) Women’s and girls’ wool coats, over25 coats, carcoats, capes, cloaks, anoraks (includVerDate Nov 24 2008 03:51 Mar 26, 2010 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3170.IS S3170

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1 ing ski-jackets), windbreakers, padded sleeveless 

2 jackets with attachments for sleeves, and simi3 lar articles classifiable under subheading 

4 6102.10, 6102.30, 6102.90, 6104.31, 6104.33, 

5 6117.90, 6202.11, 6202.13, 6202.19, 6202.91, 

6 6202.93, 6202.99, 6204.31, 6204.33, 6204.39, 

7 6211.20, 6211.41, or 6117.90 of the HTS. 

8 (I) Wool skirts classifiable under sub9 heading 6104.51, 6104.53, 6104.59, 6204.51, 

10 6204.53, or 6204.59 of the HTS. 

11 (J) Women’s and girls’ wool trousers, 

12 breeches, and shorts classifiable under sub13 heading 6104.61, 6104.63, 6104.69, 6117.90, 

14 6204.61, 6204.63, 6204.69, 6211.20, 6211.41, 

15 or 6217.90 of the HTS. 

16 (K) Women’s and girls’ cotton shirts and 

17 blouses classifiable under subheading 6206.10, 

18 6206.30, 6206.90, 6211.42, or 6217.90 of the 

19 HTS. 

20 (L) Women’s and girls’ manmade fiber 

21 shirts, blouses, shirt-blouses, sleeveless tank 

22 styles, and similar upper body garments classi23 fiable under subheading 6206.10, 6206.40, 

24 6206.90, 6211.43, or 6217.90 of the HTS. 


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1 (M) Men’s and boys’ wool coats, overcoats, 

2 carcoats, capes, cloaks, anoraks (including ski3 jackets), windbreakers, padded sleeveless jack4 ets with attachments for sleeves, and similar ar5 ticles classifiable under subheading 6101.30, 

6 6101.90, 6201.11, 6201.13, 6201.19, 6201.91, 

7 6201.93, 6201.99, 6211.20, or 6211.39 of the 

8 HTS. 

9 (N) Women’s and girls’ manmade fiber 

10 coats, overcoats, carcoats, capes, cloaks, 

11 anoraks (including ski-jackets), windbreakers, 

12 padded sleeveless jackets with attachments for 

13 sleeves, and similar articles classifiable under 

14 subheading 6202.13, 6202.19, 6202.93, 

15 6202.99, 6204.33, 6204.39, 6210.30, 6210.50, 

16 6211.20, 6211.43, or 6217.90 of the HTS. 

17 (O) Cotton skirts classifiable under sub18 heading 6104.19, 6104.52, 6104.59, 6204.12, 

19 6204.19, 6204.52, or 6204.59 of the HTS. 

20 (P) Manmade fiber skirts classifiable 

21 under subheading 6104.53, 6104.59, 6204.53, 

22 or 6204.59 of the HTS. 

23 (Q) Men’s and boys’ manmade fiber coats, 

24 overcoats, carcoats, capes, cloaks, anoraks (in25 cluding ski-jackets), windbreakers, padded 


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1 sleeveless jackets with attachments for sleeves, 

2 and similar articles classifiable under sub3 heading 6201.13, 6201.19, 6201.93, 6201.99, 

4 6210.20, 6210.40, 6211.20, or 6211.33 of the 

5 HTS. 

6 (R) Women’s and girls’ cotton slips, petti7 coats, briefs, panties, and underwear classifiable 

8 under subheading 6108.19, 6108.21, 6108.91, 

9 6109.10, 6208.19, or 6208.91 of the HTS. 

10 (S) Women’s and girls’ manmade fiber 

11 slips, petticoats, briefs, panties, and underwear 

12 classifiable under subheading 6108.11, 6108.22, 

13 6108.92, 6109.90, 6208.11, or 6208.92 of the 

14 HTS. 

15 (g) REVIEW AND REPORT.—The Comptroller General 

16 of the United States shall, not later than 24 months after 

17 the date of the enactment of this Act, review the program 

18 established under this section for the purpose of evalu19 ating the effectiveness of, and making recommendations 

20 to Congress for improvements in, the program. 

21 (h) ENFORCEMENT.— 

22 (1) PRESIDENTIAL CERTIFICATION OF CONDI23 TIONS.—No apparel article shall be afforded the 

24 preferential treatment under this section unless the 


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1 President certifies to Congress that the Philippines 

2 is meeting the following conditions: 

3 (A) The Philippines has reestablished the 

4 Electronic Visa Information System (ELVIS) to 

5 assist with prevention of transshipment of ap6 parel articles and the use of counterfeit docu7 ments relating to the importation of apparel ar8 ticles into the United States. 

9 (B) The Philippines is enforcing the 

10 Memorandum of Understanding between the 

11 United States of America and the Republic of 

12 the Philippines Concerning Cooperation in 

13 Trade in Textile and Apparel Goods, signed on 

14 August 23, 2006. 

15 (C) The Philippines agrees to provide, on 

16 a timely basis at the request of U.S. Customs 

17 and Border Protection, and consistently with 

18 the manner in which the records are kept in the 

19 Philippines, a report on exports from the Phil20 ippines of apparel articles eligible for pref21 erential treatment under this section, and on 

22 imports into the Philippines of yarns, fabrics, 

23 fabric components, or components knit-to-shape 

24 that are wholly formed in the United States. 


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1 (D) The Philippines agrees to cooperate 

2 fully with the United States to address and 

3 take action necessary to prevent circumvention 

4 as provided in Article 5 of the Agreement on 

5 Textiles and Clothing referred to in section 

6 101(d)(4) of the Uruguay Round Agreements 

7 Act (19 U.S.C. 3511(d)(4)). 

8 (E) The Philippines agrees to require Phil9 ippines producers and exporters of articles eligi10 ble for preferential treatment under this section 

11 to maintain, for at least 5 years after the date 

12 of export, complete records of the production 

13 and the export of such articles, including 

14 records of yarns, fabrics, fabric components, 

15 and components knit-to-shape and used in the 

16 production of such articles. 

17 (F) The Philippines agrees to provide, on 

18 a timely basis, at the request of U.S. Customs 

19 and Border Protection, documentation estab20 lishing the country of origin of articles eligible 

21 for preferential treatment under this section, as 

22 used by that country in reimplementing an ef23 fective visa system. 

24 (G) The Philippines is to establish, within 

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1 cation under this paragraph, procedures that 

2 allow the Office of Textiles and Apparel of the 

3 Department of Commerce (OTEXA) to obtain 

4 information when fabric wholly formed in the 

5 United States is exported to the Philippines to 

6 allow for monitoring and verification before the 

7 imports of apparel articles containing the fabric 

8 for which preferential treatment is sought 

9 under this section reach the United States. The 

10 information provided upon export of the fabrics 

11 shall include, among other things, the name of 

12 the importer of the fabric in the Philippines, 

13 the 8-digit HTS subheading covering the ap14 parel articles to be made from the fabric, and 

15 the quantity of the apparel articles to be made 

16 from the fabric for importation into the United 

17 States. 

18 (H) The Philippines has enacted legislation 

19 or promulgated regulations to allow for the sei20 zure of merchandise physically transiting the 

21 territory of the Philippines and appears to be 

22 destined for the United States in circumvention 

23 of the provisions of this Act. 

24 (i) CUSTOMS PROCEDURES.— 

25 (1) IN GENERAL.— 


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1 (A) PENALTIES FOR EXPORTERS.—If the 

2 President determines, based on sufficient evi3 dence, that an exporter has engaged in trans4 shipments as defined in paragraph (2), then the 

5 President shall deny for a period of 5 years all 

6 benefits under section 4 to such exporter, any 

7 successor of such exporter, and any other entity 

8 owned or operated by the principal of the ex9 porter. 

10 (B) PENALTIES FOR IMPORTERS.—If the 

11 President determines, based on sufficient evi12 dence, that an importer has engaged in trans13 shipments as defined in paragraph (2), then the 

14 President shall deny for a period of 5 years all 

15 benefits under section 4 to such importer, any 

16 successor of such importer, or any entity owned 

17 or operated by the principal of the importer. 

18 (2) DEFINITION OF TRANSHIPMENT.—As used 

19 in paragraph (1), transshipment has occurred when 

20 preferential treatment for an apparel article under 

21 this section has been claimed on the basis of mate22 rial false information concerning the country of ori23 gin, manufacture, processing, or assembly of the ar24 ticle or of any fabric, fabric component, or compo25 nent knit-to-shape from which the apparel article 


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•S 3170 IS

1 was assembled. For purposes of this paragraph, 

2 false information is material if disclosure of the true 

3 information would have meant that the article is or 

4 was ineligible for preferential treatment under this 

5 section. 

6 (j) PROCLAMATION AUTHORITY.—The President 

7 shall issue a proclamation to carry out this section not 

8 later than 60 days after the date of the enactment of this 

9 Act. The President shall consult with the Committee on 

10 Ways and Means of the House of Representatives and the 

11 Committee on Finance of the Senate in preparing such 

12 proclamation. 

13 SEC. 5. EFFECTIVE DATE. 

14 This Act shall apply to articles entered, or withdrawn 

15 from warehouse for consumption, on or after the 15th day 

16 after the date on which the President issues the proclama17 tion required by section 4(j). 

18 SEC. 6. TERMINATION. 

19 (a) IN GENERAL.—The preferential duty treatment 

20 provided under this Act shall remain in effect for a period 

21 of 10 years beginning on the effective date provided for 

22 in section 5. 

23 (b) GSP ELIGIBILITY.—The preferential duty treat24 ment provided under this Act shall terminate if and when 

25 the Philippines becomes ineligible for designation as a benVerDate Nov 24 2008 03:51 Mar 26, 2010 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S3170.IS S3170

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•S 3170 IS

1 eficiary developing country under title V of the Trade Act 

2 of 1974 (19 U.S.C. 2461 et seq.). 

Æ 


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