IB
Union Calendar No. 105
107TH CONGRESS
1ST SESSION
H. R. 2603
[Report No. 107–176, Part I]
To implement the agreement establishing a United States-Jordan free trade
area.
IN THE HOUSE OF REPRESENTATIVES
JULY 24, 2001
Mr. THOMAS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on the Ju-
diciary, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
JULY 31, 2001
Reported from the Committee on Ways and Means with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
JULY 31, 2001
Referred to the Committee on the Judiciary extended for a period ending not
later than July 31, 2001
JULY 31, 2001
The Committee on the Judiciary discharged committed to the Committee of
the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on July 24, 2001]
A BILL
To implement the agreement establishing a United States-
Jordan free trade area.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘United States-Jordan
Free Trade Area Implementation Act’’.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to implement the agreement between the
United States and Jordan establishing a free trade
area;
(2) to strengthen and develop the economic rela-
tions between the United States and Jordan for their
mutual benefit; and
(3) to establish free trade between the 2 nations
through the removal of trade barriers.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) AGREEMENT.—The term ‘‘Agreement’’ means
the Agreement between the United States of America
and the Hashemite Kingdom of Jordan on the Estab-
lishment of a Free Trade Area, entered into on Octo-
ber 24, 2000.
(2) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States.
TITLE 
I—TARIFF 
MODIFICA-
TIONS; RULES OF ORIGIN
SEC. 101. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE
AGREEMENT.—The President may proclaim—
(1) such modifications or continuation of any
duty,
(2) such continuation of duty-free or excise treat-
ment, or
(3) such additional duties,
as the President determines to be necessary or appropriate
to carry out article 2.1 of the Agreement and the schedule
of duty reductions with respect to Jordan set out in Annex
2.1 of the Agreement.
(b) OTHER TARIFF MODIFICATIONS.—The President
may proclaim—
(1) such modifications or continuation of any
duty,
(2) such continuation of duty-free or excise treat-
ment, or
(3) such additional duties,
as the President determines to be necessary or appropriate
to maintain the general level of reciprocal and mutually
advantageous concessions with respect to Jordan provided
for by the Agreement.
SEC. 102. RULES OF ORIGIN.
(a) IN GENERAL.—
(1) ELIGIBLE ARTICLES.—
(A) IN GENERAL.—The reduction or elimi-
nation of any duty imposed on any article by
the United States provided for in the Agreement
shall apply only if—
(i) that article is imported directly
from Jordan into the customs territory of
the United States; and
(ii) that article—
(I) is wholly the growth, product,
or manufacture of Jordan; or
(II) is a new or different article of
commerce that has been grown, pro-
duced, or manufactured in Jordan and
meets the requirements of subpara-
graph (B).
(B) REQUIREMENTS.—
(i) GENERAL RULE.—The requirements
of this subparagraph are that with respect
to an article described in subparagraph
(A)(ii)(II), the sum of—
(I) the cost or value of the mate-
rials produced in Jordan, plus
(II) the direct costs of processing
operations performed in Jordan,
is not less than 35 percent of the appraised
value of such article at the time it is en-
tered.
(ii) MATERIALS PRODUCED IN UNITED
STATES.—If the cost or value of materials
produced in the customs territory of the
United States is included with respect to an
article to which this paragraph applies, an
amount not to exceed 15 percent of the ap-
praised value of the article at the time it is
entered that is attributable to such United
States cost or value may be applied toward
determining the percentage referred to in
clause (i).
(2) EXCLUSIONS.—No article may be considered
to meet the requirements of paragraph (1)(A) by vir-
tue of having merely undergone—
(A) simple combining or packaging oper-
ations; or
(B) mere dilution with water or mere dilu-
tion with another substance that does not materi-
ally alter the characteristics of the article.
(b) DIRECT COSTS OF PROCESSING OPERATIONS.—
(1) IN GENERAL.—As used in this section, the
term ‘‘direct costs of processing operations’’ includes,
but is not limited to—
(A) all actual labor costs involved in the
growth, production, manufacture, or assembly of
the specific merchandise, including fringe bene-
fits, on-the-job training, and the cost of engineer-
ing, supervisory, quality control, and similar
personnel; and
(B) dies, molds, tooling, and depreciation
on machinery and equipment which are allocable
to the specific merchandise.
(2) EXCLUDED COSTS.—The term ‘‘direct costs of
processing operations’’ does not include costs which
are not directly attributable to the merchandise con-
cerned, or are not costs of manufacturing the product,
such as—
(A) profit; and
(B) general expenses of doing business
which are either not allocable to the specific mer-
chandise or are not related to the growth, pro-
duction, manufacture, or assembly of the mer-
chandise, such as administrative salaries, cas-
ualty and liability insurance, advertising, and
salesmen’s salaries, commissions, or expenses.
(c) TEXTILE AND APPAREL ARTICLES.—
(1) IN GENERAL.—A textile or apparel article
imported directly from Jordan into the customs terri-
tory of the United States shall be considered to meet
the requirements of paragraph (1)(A) of subsection (a)
only if—
(A) the article is wholly obtained or pro-
duced in Jordan;
(B) the article is a yarn, thread, twine,
cordage, rope, cable, or braiding, and—
(i) the constituent staple fibers are
spun in Jordan, or
(ii) the continuous filament is extruded
in Jordan;
(C) the article is a fabric, including a fab-
ric classified under chapter 59 of the HTS, and
the constituent fibers, filaments, or yarns are
woven, knitted, needled, tufted, felted, entangled,
or transformed by any other fabric-making proc-
ess in Jordan; or
(D) the article is any other textile or ap-
parel article that is wholly assembled in Jordan
from its component pieces.
(2) DEFINITION.—For purposes of paragraph
(1), an article is ‘‘wholly obtained or produced in
(e) REGULATIONS.—The Secretary of the Treasury,
after consultation with the United States Trade Representa-
tive, shall prescribe such regulations as may be necessary
to carry out this section.
TITLE II—RELIEF FROM
IMPORTS
Subtitle A—General Provisions
SEC. 201. DEFINITIONS.
As used in this title:
(1) 
COMMISSION.—The 
term 
‘‘Commission’’
means the United States International Trade Com-
mission.
(2) JORDANIAN ARTICLE.—The term ‘‘Jordanian
article’’ means an article that qualifies for reduction
or elimination of a duty under section 102.
Subtitle B—Relief From Imports
Benefiting From The Agreement
SEC. 211. COMMENCING OF ACTION FOR RELIEF.
(a) FILING OF PETITION.—
(1) IN GENERAL.—A petition requesting action
under this subtitle for the purpose of adjusting to the
obligations of the United States under the Agreement
may be filed with the Commission by an entity, in-
cluding a trade association, firm, certified or recog-
nized union, or group of workers that is representa-
tive of an industry. The Commission shall transmit
a copy of any petition filed under this subsection to
the United States Trade Representative.
(2) PROVISIONAL RELIEF.—An entity filing a
petition under this subsection may request that provi-
sional relief be provided as if the petition had been
filed under section 202(a) of the Trade Act of 1974.
(3) CRITICAL CIRCUMSTANCES.—Any allegation
that critical circumstances exist shall be included in
the petition.
(b) INVESTIGATION AND DETERMINATION.—
(1) IN GENERAL.—Upon the filing of a petition
under subsection (a), the Commission, unless sub-
section (d) applies, shall promptly initiate an inves-
tigation to determine whether, as a result of the re-
duction or elimination of a duty provided for under
the Agreement, a Jordanian article is being imported
into the United States in such increased quantities,
in absolute terms or relative to domestic production,
and under such conditions that imports of the Jor-
danian article alone constitute a substantial cause of
serious injury or threat thereof to the domestic indus-
try producing an article that is like, or directly com-
petitive with, the imported article.
(2) CAUSATION.—For purposes of this subtitle, a
Jordanian article is being imported into the United
States in increased quantities as a result of the reduc-
tion or elimination of a duty provided for under the
Agreement if the reduction or elimination is a cause
that contributes significantly to the increase in im-
ports. Such cause need not be equal to or greater than
any other cause.
(c) APPLICABLE PROVISIONS.—The following provi-
sions of section 202 of the Trade Act of 1974 (19 U.S.C.
2252) apply with respect to any investigation initiated
under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (d).
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No in-
vestigation may be initiated under this section with respect
to any Jordanian article if import relief has been provided
under this subtitle with respect to that article.
SEC. 212. COMMISSION ACTION ON PETITION.
(a) DETERMINATION.—By no later than 120 days (180
days if critical circumstances have been alleged) after the
date on which an investigation is initiated under section
211(b) with respect to a petition, the Commission shall
make the determination required under that section.
(b) ADDITIONAL FINDING AND RECOMMENDATION IF
DETERMINATION
AFFIRMATIVE.—If the determination
made by the Commission under subsection (a) with respect
to imports of an article is affirmative, the Commission shall
find, and recommend to the President in the report required
under subsection (c), the amount of import relief that is
necessary to remedy or prevent the injury found by the
Commission in the determination and to facilitate the ef-
forts of the domestic industry to make a positive adjustment
to import competition. The import relief recommended by
the Commission under this subsection shall be limited to
that described in section 213(c).
(c) REPORT TO PRESIDENT.—No later than the date
that is 30 days after the date on which a determination
is made under subsection (a) with respect to an investiga-
tion, the Commission shall submit to the President a report
that shall include—
(1) a statement of the basis for the determina-
tion;
(2) dissenting and separate views; and
(3) any finding made under subsection (b) re-
garding import relief.
(d) PUBLIC NOTICE.—Upon submitting a report to the
President under subsection (c), the Commission shall
promptly make public such report (with the exception of
information which the Commission determines to be con-
fidential) and shall cause a summary thereof to be published
in the Federal Register.
(e) APPLICABLE PROVISIONS.—For purposes of this
subtitle, the provisions of paragraphs (1), (2), and (3) of
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d))
shall be applied with respect to determinations and findings
made under this section as if such determinations and find-
ings were made under section 202 of the Trade Act of 1974
(19 U.S.C. 2252).
SEC. 213. PROVISION OF RELIEF.
(a) IN GENERAL.—No later than the date that is 30
days after the date on which the President receives the re-
port of the Commission containing an affirmative deter-
mination of the Commission under section 212(a), the
President shall provide relief from imports of the article
that is the subject of such determination to the extent that
the President determines necessary to prevent or remedy the
injury found by the Commission and to facilitate the efforts
of the domestic industry to make a positive adjustment to
import competition, unless the President determines that
the provision of such relief is not in the national economic
interest of the United States or, in extraordinary cir-
cumstances, that the provision of such relief would cause
serious harm to the national security of the United States.
(b) NATIONAL ECONOMIC INTEREST.—The President
may determine under subsection (a) that providing import
relief is not in the national economic interest of the United
States only if the President finds that taking such action
would have an adverse impact on the United States econ-
omy clearly greater than the benefits of taking such action.
(c) NATURE OF RELIEF.—The import relief (including
provisional relief) that the President is authorized to pro-
vide under this subtitle with respect to imports of an article
is—
(1) the suspension of any further reduction pro-
vided for under the United States Schedule to Annex
2.1 of the Agreement in the duty imposed on that ar-
ticle;
(2) an increase in the rate of duty imposed on
such article to a level that does not exceed the lesser
of—
(A) the column 1 general rate of duty im-
posed under the HTS on like articles at the time
the import relief is provided; or
(B) the column 1 general rate of duty im-
posed under the HTS on like articles on the day
before the date on which the Agreement enters
into force; or
(3) in the case of a duty applied on a seasonal
basis to that article, an increase in the rate of duty
imposed on the article to a level that does not exceed
the column 1 general rate of duty imposed under the
HTS on the article for the corresponding season oc-
curring immediately before the date on which the
Agreement enters into force.
(d) PERIOD OF RELIEF.—The import relief that the
President is authorized to provide under this section may
not exceed 4 years.
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—
When import relief under this subtitle is terminated with
respect to an article—
(1) the rate of duty on that article after such ter-
mination and on or before December 31 of the year
in which termination occurs shall be the rate that, ac-
cording to the United States Schedule to Annex 2.1
of the Agreement for the staged elimination of the tar-
iff, would have been in effect 1 year after the initi-
ation of the import relief action under section 211;
and
(2) the tariff treatment for that article after De-
cember 31 of the year in which termination occurs
shall be, at the discretion of the President, either—
Jordan are a substantial cause of the serious injury found
by the Commission and, if such determination is in the neg-
ative, may exclude from such action imports from Jordan.
SEC. 222. TECHNICAL AMENDMENT.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C.
2252(a)(8)) is amended in the first sentence—
(1) by striking ‘‘and part 1’’ and inserting ‘‘,
part 1’’; and
(2) by inserting before the period at the end ‘‘,
and title II of the United States-Jordan Free Trade
Area Implementation Act’’.
TITLE III—TEMPORARY ENTRY
SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS.
Upon the basis of reciprocity secured by the Agreement,
an alien who is a national of Jordan (and any spouse or
child (as defined in section 101(b)(1) of the Immigration
and Nationality Act (8 U.S.C. 1101(b)(1)) of the alien, if
accompanying or following to join the alien) shall be con-
sidered as entitled to enter the United States under and
in pursuance of the provisions of the Agreement as a non-
immigrant described in section 101(a)(15)(E) of the Immi-
gration and Nationality Act (8 U.S.C. 1101(a)(15)(E)), if
the entry is solely for a purpose described in clause (i) or
(ii) of such section and the alien is otherwise admissible
to the United States as such a nonimmigrant.
TITLE IV—GENERAL PROVISIONS
SEC. 401. RELATIONSHIP OF THE AGREEMENT TO UNITED
STATES AND STATE LAW.
(a) RELATIONSHIP
OF
AGREEMENT
TO
UNITED
STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the Agreement, nor the appli-
cation of any such provision to any person or cir-
cumstance, that is inconsistent with any law of the
United States shall have effect.
(2) CONSTRUCTION.—Nothing in this Act shall
be construed—
(A) to amend or modify any law of the
United States, or
(B) to limit any authority conferred under
any law of the United States,
unless specifically provided for in this Act.
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.—
(1) LEGAL CHALLENGE.—No State law, or the
application thereof, may be declared invalid as to any
person or circumstance on the ground that the provi-
sion or application is inconsistent with the Agree-
ment, except in an action brought by the United
States for the purpose of declaring such law or appli-
cation invalid.
(2) DEFINITION OF STATE LAW.—For purposes of
this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a
State; and
(B) any State law regulating or taxing the
business of insurance.
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE
REMEDIES.—No person other than the United
States—
(1) shall have any cause of action or defense
under the Agreement; or
(2) may challenge, in any action brought under
any provision of law, any action or inaction by any
department, agency, or other instrumentality of the
United States, any State, or any political subdivision
of a State on the ground that such action or inaction
is inconsistent with the Agreement.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for each fiscal
year after fiscal year 2001 to the Department of Commerce
not more than $100,000 for the payment of the United
States share of the expenses incurred in dispute settlement
proceedings under article 17 of the Agreement.
SEC. 403. IMPLEMENTING REGULATIONS.
After the date of enactment of this Act—
(1) the President may proclaim such actions,
and
(2) other appropriate officers of the United
States may issue such regulations,
as may be necessary to ensure that any provision of this
Act, or amendment made by this Act, that takes effect on
the date the Agreement enters into force is appropriately
implemented on such date, but no such proclamation or reg-
ulation may have an effective date earlier than the date
the Agreement enters into force.
SEC. 404. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), the provisions of this Act and the amendments
made by this Act take effect on the date the Agreement enters
into force.
(b) EXCEPTIONS.—Sections 1 through 3 and this title
take effect on the date of the enactment of this Act.
(c) TERMINATION OF THE AGREEMENT.—On the date
on which the Agreement ceases to be in force, the provisions
of this Act (other than this subsection) and the amendments
made by this Act, shall cease to be effective.
Union Calendar No. 105
107TH CONGRESS
1ST SESSION
H. R. 2603
[Report No. 107–176, Part I]
A BILL
To implement the agreement establishing a United
States-Jordan free trade area.
JULY 31, 2001
Referred to the Committee on the Judiciary extended for
a period ending not later than July 31, 2001
JULY 31, 2001
The Committee on the Judiciary discharged. Committed
to the Committee of the Whole House on the State of
the Union and ordered to be printed