‘‘(d) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
COUNTRY DESIGNATION.—
‘‘(1) IN GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any country. In taking any action under this sub-
section, the President shall consider the factors set
forth in section 501 and subsection (c) of this sec-
tion.
‘‘(2) CHANGED
CIRCUMSTANCES.—The Presi-
dent shall, after complying with the requirements of
subsection (f)(2), withdraw or suspend the designa-
tion of any country as a beneficiary developing coun-
try if, after such designation, the President deter-
mines that as the result of changed circumstances
such country would be barred from designation as a
beneficiary developing country under subsection
(b)(2). Such country shall cease to be a beneficiary
developing country on the day on which the Presi-
dent issues an Executive order or Presidential proc-
lamation revoking the designation of such country
under this title.
‘‘(e) MANDATORY GRADUATION
OF BENEFICIARY
DEVELOPING COUNTRIES.—If during any calendar year
the official statistics of the International Bank for Recon-
struction and Development demonstrate that a beneficiary
developing country has become a ‘high income’ country,
as defined by such Bank, then the President shall termi-
nate the designation of such country as a beneficiary de-
veloping country for purposes of this title, effective on the
day after December 31 of the year following such calendar
year.
‘‘(f) CONGRESSIONAL NOTIFICATION.—
‘‘(1) NOTIFICATION OF DESIGNATION.—(A) Be-
fore the President designates any country as a bene-
ficiary developing country under this title, the Presi-
dent shall notify the Congress of the President’s in-
tention to make such designation, together with the
considerations entering into such decision.
‘‘(B) At least 60 days before the President des-
ignates any country as a least-developed beneficiary
developing country, the President shall notify the
Congress of the President’s intention to make such
designation.
‘‘(2) NOTIFICATION OF TERMINATION.—If the
President has designated any country as a bene-
ficiary developing country under this title, the Presi-
dent shall not terminate such designation unless, at
least 60 days before such termination, the President
has notified the Congress and has notified such
country of the President’s intention to terminate
such designation, together with the considerations
entering into such decision.
‘‘SEC. 503. DESIGNATION OF ELIGIBLE ARTICLES.
‘‘(a) ELIGIBLE ARTICLES.—
‘‘(1) DESIGNATION.—
‘‘(A) IN GENERAL.—Except as provided in
subsection (b), the President is authorized to
designate articles as eligible articles for all ben-
eficiary developing countries for purposes of
this title by Executive order or Presidential
proclamation after receiving the advice of the
International Trade Commission in accordance
with subsection (e).
‘‘(B) LEAST-DEVELOPED BENEFICIARY DE-
VELOPING COUNTRIES.—Except as provided in
subsection (b), the President is authorized to
designate additional articles as eligible articles
only for countries designated as least-developed
beneficiary developing countries under section
502(a)(2) if, after receiving the advice of the
International Trade Commission in accordance
with subsection (e) of this section, the Presi-
dent determines that such articles are not im-
port-sensitive in the context of imports from
least-developed beneficiary developing countries.
‘‘(C) THREE-YEAR RULE.—If, after receiv-
ing the advice of the International Trade Com-
mission under subsection (e), an article has
been formally considered for designation as an
eligible article under this title and denied such
designation, such article may not be reconsid-
ered for such designation for a period of three
years after such denial.
‘‘(2) RULE OF ORIGIN.—
‘‘(A) 
GENERAL
RULE.—The 
duty-free
treatment provided under this title shall apply
to any eligible article which is the growth, prod-
uct, or manufacture of a beneficiary developing
country if—
‘‘(i) that article is imported directly
from a beneficiary developing country into
the customs territory of the United States;
and
‘‘(ii) the sum of—
‘‘(I) the cost or value of the ma-
terials produced in the beneficiary de-
veloping country or any two or more
countries which are members of the
same association of countries which is
treated as one country under section
506(2), plus
‘‘(II) the direct costs of process-
ing operations performed in such ben-
eficiary developing country or such
member countries,
is not less than 35 percent of the appraised
value of such article at the time it is entered.
‘‘(B) EXCLUSIONS.—An article shall not
be treated as the growth, product, or manufac-
ture of a beneficiary developing country by vir-
tue of having merely undergone—
‘‘(i) simple combining or packaging
operations, or
‘‘(ii) mere dilution with water or mere
dilution with another substance that does
not materially alter the characteristics of
the article.
‘‘(3) REGULATIONS.—The Secretary of the
Treasury, after consulting with the United States
Trade Representative, shall prescribe such regula-
tions as may be necessary to carry out paragraph
(2), including, but not limited to, regulations provid-
ing that, in order to be eligible for duty-free treat-
ment under this title, an article—
‘‘(A) must be wholly the growth, product,
or manufacture of a beneficiary developing
country, or
‘‘(B) must be a new or different article of
commerce which has been grown, produced, or
manufactured in the beneficiary developing
country.
‘‘(b) ARTICLES THAT MAY NOT BE DESIGNATED AS
ELIGIBLE ARTICLES.—
‘‘(1) IMPORT SENSITIVE ARTICLES.—The Presi-
dent may not designate any article as an eligible ar-
ticle under subsection (a) if such article is within
one of the following categories of import-sensitive
articles:
‘‘(A) Textile and apparel articles which
were not eligible articles for purposes of this
title on January 1, 1994.
‘‘(B) Watches, except those watches that
the President specifically determines, after pub-
lic notice and comment, will not cause material
injury to watch or watch band, strap, or brace-
let manufacturing and assembly operations in
the United States or the United States insular
possessions.
‘‘(C) Import-sensitive electronic articles.
‘‘(D) Import-sensitive steel articles.
‘‘(E) Footwear, handbags, luggage, flat
goods, work gloves, and leather wearing apparel
which were not eligible articles for purposes of
this title on January 1, 1995.
‘‘(F) Import-sensitive semimanufactured
and manufactured glass products.
‘‘(G) Any other articles which the Presi-
dent determines to be import-sensitive in the
context of the Generalized System of Pref-
erences.
‘‘(2) ARTICLES
AGAINST
WHICH
OTHER
AC-
TIONS TAKEN.—An article shall not be an eligible
article for purposes of this title for any period dur-
ing which such article is the subject of any action
proclaimed pursuant to section 203 of this Act (19
U.S.C. 2253) or section 232 or 351 of the Trade
Expansion Act of 1962 (19 U.S.C. 1862, 1981).
‘‘(3) AGRICULTURAL PRODUCTS.—No quantity
of an agricultural product subject to a tariff-rate
quota that exceeds the in-quota quantity shall be eli-
gible for duty-free treatment under this title.
‘‘(c) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
DUTY-FREE TREATMENT; COMPETITIVE NEED LIMITA-
TION.—
‘‘(1) IN GENERAL.—The President may with-
draw, suspend, or limit the application of the duty-
free treatment accorded under this title with respect
to any article, except that no rate of duty may be
established with respect to any article pursuant to
this subsection other than the rate which would
apply but for this title. In taking any action under
this subsection, the President shall consider the fac-
tors set forth in sections 501 and 502(c).
‘‘(2) COMPETITIVE NEED LIMITATION.—
‘‘(A) BASIS FOR WITHDRAWAL OF DUTY-
FREE TREATMENT.—Except as provided in this
paragraph and subject to subsection (d), when-
ever the President determines that a beneficiary
developing country has exported (directly or in-
directly) to the United States during any cal-
endar year beginning after December 31,
1994—
‘‘(i) a quantity of an eligible article
having an appraised value in excess of
$75,000,000, except that, in applying this
clause, the amount of $75,000,000 shall be
increased by $5,000,000 on January 1 of
each calendar year after calendar year
1995, or
‘‘(ii) a quantity of an eligible article
equal to or exceeding 50 percent of the ap-
praised value of the total imports of that
article into the United States during the
calendar year,
then the President shall, not later than July 1
of the next calendar year, terminate the duty-
free treatment for that article from that bene-
ficiary developing country.
‘‘(B) COUNTRY
DEFINED.—For purposes
of this paragraph, the term ‘country’ does not
include an association of countries which is
treated as one country under section 506(2),
but does include a country which is a member
of any such association.
‘‘(C) REDESIGNATIONS.—A country which
is no longer treated as a beneficiary developing
country with respect to an eligible article by
reason of subparagraph (A) may be redesig-
nated a beneficiary developing country with re-
spect to such article, subject to the consider-
ations set forth in sections 501 and 502, if im-
ports of such article from such country did not
exceed the limitations in subparagraph (A) dur-
ing the preceding calendar year.
‘‘(D) 
LEAST-DEVELOPED
BENEFICIARY
DEVELOPING
COUNTRIES.—Subparagraph (A)
shall not apply to any least-developed bene-
ficiary developing country.
‘‘(E) ARTICLES
NOT
PRODUCED
IN
THE
UNITED
STATES
EXCLUDED.—Subparagraph
(A)(ii) shall not apply with respect to any eligi-
ble article if a like or directly competitive article
was not produced in the United States on Jan-
uary 1, 1995.
‘‘(F) DE
MINIMIS
WAIVERS.—The Presi-
dent may disregard subparagraph (A)(ii) with
respect to any eligible article from any bene-
ficiary developing country if the appraised value
of the total imports of such article into the
United States during calendar year 1995 or any
calendar year thereafter does not exceed
$13,000,000, except that, in applying this sub-
paragraph, the amount of $13,000,000 shall be
increased by $500,000 on January 1 of each
calendar year after calendar year 1995.
‘‘(d) WAIVER OF COMPETITIVE NEED LIMITATION.—
‘‘(1) IN GENERAL.—The President may waive
the application of subsection (c)(2) with respect to
any eligible article of any beneficiary developing
country if, before July 1 of the calendar year begin-
ning after the calendar year for which a determina-
tion described in subsection (c)(2)(A) was made with
respect to such eligible article, the President—
‘‘(A) receives the advice of the Inter-
national Trade Commission under section 332
of the Tariff Act of 1930 on whether any indus-
try in the United States is likely to be adversely
affected by such waiver,
‘‘(B) determines, based on the consider-
ations described in sections 501 and 502(c) and
the advice described in subparagraph (A), that
such waiver is in the national economic interest
of the United States, and
‘‘(C) publishes the determination described
in subparagraph (B) in the Federal Register.
‘‘(2) CONSIDERATIONS BY THE PRESIDENT.—In
making any determination under paragraph (1), the
President shall give great weight to—
‘‘(A) the extent to which the beneficiary
developing country has assured the United
States that such country will provide equitable