375
(i) the constituent staple fibers are
spun in that country, territory, or posses-
sion, or
(ii) the continuous filament is ex-
truded in that country, territory, or posses-
sion,
(C) the product is a fabric, including a
fabric classified under chapter 59 of the HTS,
and the constituent fibers, filaments, or yarns
are woven, knitted, needled, tufted, felted, en-
tangled, or transformed by any other fabric-
making process in that country, territory, or
possession; or
(D) the product is any other textile or ap-
parel product that is wholly assembled in that
country, territory, or possession from its compo-
nent pieces.
(2) SPECIAL
RULES.—Notwithstanding para-
graph (1)(D)—
(A) the origin of a good that is classified
under one of the following HTS headings or
subheadings shall be determined under subpara-
graph (A), (B), or (C) of paragraph (1), as ap-
propriate: 5609, 5807, 5811, 6209.20.50.40,
376
6213, 6214, 6301, 6302, 6303, 6304, 6305,
6306, 6307.10, 6307.90, 6308, or 9404.90; and
(B) a textile or apparel product which is
knit to shape shall be considered to originate in,
and be the growth, product, or manufacture of,
the country, territory, or possession in which it
is knit.
(3) MULTICOUNTRY RULE.—If the origin of a
good cannot be determined under paragraph (1) or
(2), then that good shall be considered to originate
in, and be the growth, product, or manufacture of—
(A) the country, territory, or possession in
which the most important assembly or manufac-
turing process occurs, or
(B) if the origin of the good cannot be de-
termined under subparagraph (A), the last
country, territory, or possession in which impor-
tant assembly or manufacturing occurs.
(4) 
COMPONENTS
CUT
IN
THE
UNITED
STATES.—(A) The value of a component that is cut
to shape (but not to length, width, or both) in the
United States from foreign fabric and exported to
another country, territory, or insular possession for
assembly into an article that is then returned to the
United States—
377
(i) shall not be included in the dutiable
value of such article, and
(ii) may be applied toward determining the
percentage 
referred 
to 
in 
General 
Note
7(b)(i)(B) of the HTS, subject to the limitation
provided in that note.
(B) No article (except a textile or apparel prod-
uct) assembled in whole of components described in
subparagraph (A), or of such components and com-
ponents that are products of the United States, in
a beneficiary country as defined in General Note
7(a) of the HTS shall be treated as a foreign article,
or as subject to duty if—
(i) the components after exportation from
the United States, and
(ii) the article itself before importation into
the United States
do not enter into the commerce of any foreign coun-
try other than such a beneficiary country.
(5) EXCEPTION
FOR
UNITED
STATES-ISRAEL
FREE TRADE AGREEMENT.—This section shall not
affect, for purposes of the customs laws and admin-
istration of quantitative restrictions, the status of
goods that, under rulings and administrative prac-
tices in effect immediately before the enactment of
378
this Act, would have originated in, or been the
growth, product, or manufacture of, a country that
is a party to an agreement with the United States
establishing a free trade area, which entered into
force before January 1, 1987. For such purposes,
such rulings and administrative practices that were
applied, immediately before the enactment of this
Act, to determine the origin of textile and apparel
products covered by such agreement shall continue
to apply after the enactment of this Act, and on and
after the effective date described in subsection (c),
unless such rulings and practices are modified by
the mutual consent of the parties to the agreement.
(c) EFFECTIVE DATE.—This section shall apply to
goods entered, or withdrawn from warehouse, for con-
sumption on or after July 1, 1996, except that this section
shall not apply to goods if—
(1) the contract for the sale of such goods to
the United States is entered into before July 20,
1994;
(2) all of the material terms of sale in such con-
tract, including the price and quantity of the goods,
are fixed and determinable before July 20, 1994;
(3) a copy of the contract is filed with the Com-
missioner of Customs within 60 days after the date
379
of the enactment of this Act, together with a certifi-
cation that the contract meets the requirements of
paragraphs (1) and (2); and
(4) the goods are entered, or withdrawn from
warehouse, for consumption on or before January 1,
1998.
The origin of goods to which this section does not apply
shall be determined in accordance with the applicable rules
in effect on July 20, 1994.
SEC. 335. EFFECTIVE DATE.
Except as provided in section 334, this subtitle and
the amendments made by this subtitle take effect on the
date on which the WTO Agreement enters into force with
respect to the United States.
Subtitle E—Government
Procurement
SEC. 341. MONITORING AND ENFORCEMENT OF THE
AGREEMENT ON GOVERNMENT PROCURE-
MENT.
(a) IN GENERAL.—Section 305(f)(2) of the Trade
Agreements Act of 1979 (19 U.S.C. 2515(f)(2)) is amend-
ed—
(1) in the matter preceding subparagraph (A),
by striking ‘‘a year’’ and inserting ‘‘the 18 months’’,
380
(2) by striking ‘‘or’’ at the end of subparagraph
(B),
(3) by redesignating subparagraph (C) as sub-
paragraph (D), and
(4) by inserting after subparagraph (B), the
following new subparagraph:
‘‘(C) the procedures result in a determina-
tion providing a specific period of time for the
other participant to bring its practices into
compliance with the Agreement, or’’.
(b) SANCTIONS
AFTER
DISPUTE
RESOLUTION
FAILS.—
(1) SANCTIONS.—Paragraph (3) of section
305(f) of such Act (19 U.S.C. 2515(f)(3)) is amend-
ed to read as follows:
‘‘(3) SANCTIONS AFTER DISPUTE RESOLUTION
FAILS.—
‘‘(A) FAILURES
RESULTING
IN
SANC-
TIONS.—If—
‘‘(i) within 18 months from the date
dispute settlement procedures are initiated
with a signatory country pursuant to this
section—
‘‘(I) such procedures are not con-
cluded, or