I 
110TH CONGRESS 
2D SESSION 
H. R. 6387 
To provide duty-free treatment for certain goods from designated Reconstruc-
tion Opportunity Zones in Afghanistan and Pakistan, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2008 
Mr. VAN HOLLEN (for himself, Mr. HOEKSTRA, Mr. LEVIN, Mr. KIRK, Mr. 
ACKERMAN, and Ms. JACKSON-LEE of Texas) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide duty-free treatment for certain goods from des-
ignated Reconstruction Opportunity Zones in Afghani-
stan and Pakistan, and for other purposes. 
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 ‘‘Afghanistan-Pakistan 
Security and Prosperity Enhancement Act’’. 
SEC. 2. DEFINITIONS; PURPOSES. 
(a) DEFINITIONS.—In this Act: 
(1) AGREEMENT
ON
TEXTILES
AND
CLOTH-
ING.—The term ‘‘Agreement on Textiles and Cloth-
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ing’’ means the Agreement on Textiles and Clothing 
referred to in section 101(d)(4) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(4)). 
(2) CATEGORY; TEXTILE
AND
APPAREL
CAT-
EGORY NUMBER.—The terms ‘‘category’’ and ‘‘tex-
tile and apparel category number’’ mean the number 
assigned under the U.S. Textile and Apparel Cat-
egory System of the Office of Textiles and Apparel 
of the Department of Commerce, as listed in the 
HTS under the applicable heading or subheading (as 
in effect on September 1, 2007). 
(3) CORE LABOR STANDARDS.—The term ‘‘core 
labor standards’’ means— 
(A) freedom of association; 
(B) the effective recognition of the right to 
bargain collectively; 
(C) the elimination of all forms of compul-
sory or forced labor; 
(D) the effective abolition of child labor 
and a prohibition on the worst forms of child 
labor; and 
(E) the elimination of discrimination in re-
spect of employment and occupation. 
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(4) ENTERED.—The term ‘‘entered’’ means en-
tered, or withdrawn from warehouse for consump-
tion, in the customs territory of the United States. 
(5) ENTITY.—The term ‘‘entity’’ means— 
(A) a natural person, corporation, com-
pany, business association, partnership, society, 
trust, any other nongovernmental entity, orga-
nization, or group, whether or not for profit; 
(B) any governmental entity or instrumen-
tality of a government; and 
(C) any successor, subunit, or subsidiary of 
any entity described in subparagraph (A) or 
(B). 
(6) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States. 
(7) NAFTA.—The term ‘‘NAFTA’’ means the 
North American Free Trade Agreement concluded 
between the United States, Mexico, and Canada on 
December 17, 1992. 
(8) RECONSTRUCTION
OPPORTUNITY
ZONE.— 
The term ‘‘Reconstruction Opportunity Zone’’ means 
any area that— 
(A) solely encompasses portions of the ter-
ritory of— 
(i) Afghanistan; or 
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(ii) 1 or more of the following areas of 
Pakistan: 
(I) the Federally Administered 
Tribal Areas; 
(II) areas of Pakistan-adminis-
tered Kashmir that the President de-
termines were harmed by the earth-
quake of October 8, 2005; 
(III) areas of Baluchistan that 
are within 100 miles of Pakistan’s 
border with Afghanistan; and 
(IV) the North West Frontier 
Province; 
(B) has been designated by the competent 
authorities in Afghanistan or Pakistan, as the 
case may be, as an area in which merchandise 
may be introduced without payment of duty or 
excise tax; and 
(C) has been designated by the President 
as a Reconstruction Opportunity Zone pursuant 
to section 3(a). 
(b) PURPOSES.—The purposes of this Act are— 
(1) to stimulate economic activity and develop-
ment in Afghanistan and the border region of Paki-
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stan, critical fronts in the struggle against violent 
extremism; 
(2) to reflect the strong support that the 
United States has pledged to Afghanistan and Paki-
stan for their sustained commitment in the global 
war on terrorism; 
(3) to support the 3-pronged United States 
strategy in Afghanistan and the border region of 
Pakistan that leverages political, military, and eco-
nomic tools, with Reconstruction Opportunity Zones 
as a critical part of the economic component of that 
strategy; and 
(4) to offer a vital opportunity to improve liveli-
hoods of indigenous populations of Reconstruction 
Opportunity Zones, promote good governance, im-
prove economic and commercial ties between the 
people of Afghanistan and Pakistan, and extend and 
strengthen the Governments of Afghanistan and 
Pakistan. 
SEC. 3. DESIGNATION OF RECONSTRUCTION OPPORTUNITY 
ZONES. 
(a) AUTHORITY TO DESIGNATE.—The President is 
authorized to designate an area within Afghanistan or 
Pakistan described in section 2(a), (7) (A) and (B) as a 
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Reconstruction Opportunity Zone if the President deter-
mines that— 
(1) Afghanistan or Pakistan, as the case may 
be, meets the eligibility criteria set forth in sub-
section (b); 
(2) Afghanistan or Pakistan, as the case may 
be, meets the eligibility criteria set forth in sub-
section (c) of section 502 of the Trade Act of 1974 
(19 U.S.C. 2462(c)) for designation as a beneficiary 
developing country under that section and is not in-
eligible under subsection (b) of such section; and 
(3) designation of the area as a Reconstruction 
Opportunity Zone is appropriate taking into account 
the factors listed in subsection (c). 
(b) ELIGIBILITY CRITERIA.—Afghanistan or Paki-
stan, as the case may be, meets the eligibility criteria set 
forth in this subsection if that country— 
(1) has established, or is making continual 
progress toward establishing— 
(A) a market-based economy that protects 
private property rights, incorporates an open 
rules-based trading system, and minimizes gov-
ernment interference in the economy through 
measures such as price controls, subsidies, and 
government ownership of economic assets; 
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(B) the rule of law, political pluralism, and 
the right to due process, a fair trial, and equal 
protection under the law; 
(C) economic policies to— 
(i) reduce poverty; 
(ii) increase the availability of health 
care and educational opportunities; 
(iii) expand physical infrastructure; 
(iv) promote the development of pri-
vate enterprise; and 
(v) encourage the formation of capital 
markets through microcredit or other pro-
grams; 
(D) a system to combat corruption and 
bribery, such as ratifying and implementing the 
United Nations Convention Against Corruption; 
and 
(E) protection of core labor standards; 
(2) is eliminating or has eliminated barriers to 
trade and investment, including by— 
(A) providing national treatment and 
measures to create an environment conducive to 
domestic and foreign investment; 
(B) protecting intellectual property; and 
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(C) resolving bilateral trade and invest-
ment disputes; 
(3) does not engage in activities that undermine 
United States national security or foreign policy in-
terests; 
(4) does not engage in gross violations of inter-
nationally recognized human rights; 
(5) does not provide support for acts of inter-
national terrorism; and 
(6) cooperates in international efforts to elimi-
nate human rights violations and terrorist activities. 
(c) ADDITIONAL FACTORS.—In determining whether 
to designate an area in Afghanistan or Pakistan as a Re-
construction Opportunity Zone, the President shall take 
into account— 
(1) an expression by the government of the 
country of its desire to have a particular area des-
ignated as a Reconstruction Opportunity Zone under 
this Act; 
(2) whether the government of the country has 
provided the United States with a monitoring and 
enforcement plan outlining specific steps the country 
will take to cooperate with the United States to— 
(A) facilitate legitimate cross-border com-
merce; 
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(B) ensure that articles for which duty-free 
treatment is sought pursuant to this Act satisfy 
the applicable rules of origin described in sec-
tion 4 (c) and (d) or section 5 (c) and (d), 
whichever is applicable; and 
(C) prevent unlawful transshipment, as de-
scribed in section 6(b)(4). 
(3) the potential for such designation to create 
local employment and to promote local and regional 
economic development; 
(4) the physical security of the proposed Recon-
struction Opportunity Zone; 
(5) the economic viability of the proposed Re-
construction Opportunity Zone, including— 
(A) whether there are commitments to fi-
nance economic activity proposed for the Recon-
struction Opportunity Zone; and 
(B) whether there is existing or planned 
infrastructure for power, water, transportation, 
and communications in the area; 
(6) whether such designation would be compat-
ible with and contribute to the foreign policy and na-
tional security objectives of the United States, tak-
ing into account the information provided under sub-
section (d); and 
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(7) the views of interested persons submitted 
pursuant to subsection (e). 
(d) INFORMATION RELATING
TO COMPATIBILITY 
WITH AND CONTRIBUTION TO FOREIGN POLICY AND NA-
TIONAL
SECURITY
OBJECTIVES
OF
THE
UNITED 
STATES.—In determining whether designation of a Recon-
struction Opportunity Zone would be compatible with and 
contribute to the foreign policy and national security ob-
jectives of the United States in accordance with subsection 
(c)(6), the President shall take into account whether Af-
ghanistan or Pakistan, as the case may be, has provided 
the United States with a plan outlining specific steps it 
will take to verify the ownership and nature of the activi-
ties of entities to be located in the proposed Reconstruc-
tion Opportunity Zone. The specific steps outlined in a 
country’s plan shall include a mechanism to annually reg-
ister each entity by a competent authority of the country 
and— 
(1) to collect from each entity operating in, or 
proposing to operate in, a Reconstruction Oppor-
tunity Zone, information including— 
(A) the name and address of the entity; 
(B) the name and location of all facilities 
owned or operated by the entity that are oper-
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ating in or proposed to be operating in a Recon-
struction Opportunity Zone; 
(C) the name, nationality, date and place 
of birth, and position title of each person who 
is an owner, director, or officer of the entity; 
and 
(D) the nature of the activities of each en-
tity; 
(2) to update the information required under 
paragraph (1) as changes occur; and 
(3) to provide such information promptly to the 
Secretary of State. 
(e) OPPORTUNITY FOR PUBLIC COMMENT.—Before 
the President designates an area as a Reconstruction Op-
portunity Zone pursuant to subsection (a), the President 
shall afford an opportunity for interested persons to sub-
mit their views concerning the designation. 
(f) NOTIFICATION TO CONGRESS.—Before the Presi-
dent designates an area as a Reconstruction Opportunity 
Zone pursuant to subsection (a), the President shall notify 
Congress of the President’s intention to make the designa-
tion, together with the reasons for making the designation. 
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SEC. 4. DUTY-FREE TREATMENT FOR CERTAIN NONTEX-
TILE AND NONAPPAREL ARTICLES. 
(a) IN GENERAL.—The President is authorized to 
proclaim duty-free treatment for— 
(1) any article from a Reconstruction Oppor-
tunity Zone that the President has designated as an 
eligible article under section 503(a)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2463(a)(1)(A)); 
(2) any article from a Reconstruction Oppor-
tunity Zone located in Afghanistan that the Presi-
dent has designated as an eligible article under sec-
tion 503(a)(1)(B) of the Trade Act of 1974 (19 
U.S.C. 2463(a)(1)(B)); or 
(3) any article from a Reconstruction Oppor-
tunity Zone that is not a textile or apparel article, 
regardless of whether the article has been designated 
as an eligible article under section 503(a)(1)(A) or 
(B) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1) 
(A) or (B)), if, after receiving the advice of the 
International Trade Commission pursuant to sub-
section (b), the President determines that such arti-
cle is not import-sensitive in the context of imports 
from a Reconstruction Opportunity Zone. 
(b) ADVICE CONCERNING CERTAIN ELIGIBLE ARTI-
CLES.—Before proclaiming duty-free treatment for an ar-
ticle pursuant to subsection (a)(3), the President shall 
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publish in the Federal Register and provide the Inter-
national Trade Commission a list of articles which may 
be considered for such treatment. The provisions of sec-
tions 131 through 134 of the Trade Act of 1974 (19 
U.S.C. 2151 through 2154) shall apply to any designation 
under subsection (a)(3) in the same manner as such sec-
tions apply to action taken under section 123 of the Trade 
Act of 1974 (19 U.S.C. 2133) regarding a proposed trade 
agreement. 
(c) GENERAL RULES OF ORIGIN.— 
(1) IN
GENERAL.—The duty-free treatment 
proclaimed with respect to an article described in 
paragraph (1) or (3) of subsection (a) shall apply to 
any article subject to such proclamation which is the 
growth, product, or manufacture of 1 or more Re-
construction Opportunity Zones if— 
(A) that article is imported directly from a 
Reconstruction Opportunity Zone into the cus-
toms territory of the United States; and 
(B)(i) with respect to an article that is an 
article of a Reconstruction Opportunity Zone in 
Pakistan, the sum of— 
(I) the cost or value of the materials 
produced in 1 or more Reconstruction Op-
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portunity Zones in Pakistan or Afghani-
stan, 
(II) the direct costs of processing op-
erations performed in 1 or more Recon-
struction Opportunity Zones in Pakistan or 
Afghanistan, and 
(III) the cost or value of materials 
produced in the United States, determined 
in accordance with paragraph (2), 
is not less than 35 percent of the appraised 
value of the article at the time it is entered into 
the United States; or 
(ii) with respect to an article that is an ar-
ticle of a Reconstruction Opportunity Zone in 
Afghanistan, the sum of— 
(I) the cost or value of the materials 
produced in 1 or more Reconstruction Op-
portunity Zones in Pakistan or Afghani-
stan, 
(II) the cost or value of the materials 
produced in 1 or more countries that are 
members of the South Asian Association 
for Regional Cooperation, 
(III) the direct costs of processing op-
erations performed in 1 or more Recon-
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struction Opportunity Zones in Pakistan or 
Afghanistan, and 
(IV) the cost or value of materials 
produced in the United States, determined 
in accordance with paragraph (2), 
is not less than 35 percent of the appraised 
value of the article at the time it is entered into 
the United States. 
(2) DETERMINATION OF 35 PERCENT FOR ARTI-
CLES FROM RECONSTRUCTION OPPORTUNITY ZONES 
IN
PAKISTAN
AND
AFGHANISTAN.—If the cost or 
value of materials produced in the customs territory 
of the United States is included with respect to an 
article described in paragraph (1)(B), for purposes 
of determining the 35-percent appraised value re-
quirement under clause (i) or (ii) of paragraph 
(1)(B), not more than 15 percent of the appraised 
value of the article at the time the article is entered 
into the United States may be attributable to the 
cost or value of such United States materials. 
(d) RULES OF ORIGIN FOR CERTAIN ARTICLES OF 
RECONSTRUCTION OPPORTUNITY ZONES
IN AFGHANI-
STAN.— 
(1) IN
GENERAL.—The duty-free treatment 
proclaimed with respect to an article described in 
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paragraph (2) of subsection (a) shall apply to any 
article subject to such proclamation which is the 
growth, product, or manufacture of 1 or more Re-
construction Opportunity Zones in Afghanistan if— 
(A) that article is imported directly from a 
Reconstruction Opportunity Zone in Afghani-
stan into the customs territory of the United 
States; and 
(B) with respect to that article, the sum 
of— 
(i) the cost or value of the materials 
produced in 1 or more Reconstruction Op-
portunity Zones in Afghanistan, 
(ii) the cost or value of the materials 
produced in 1 or more countries that are 
members of the South Asian Association 
for Regional Cooperation, 
(iii) the direct costs of processing op-
erations performed in 1 or more Recon-
struction Opportunity Zones in Afghani-
stan, and 
(iv) the cost or value of materials pro-
duced in the United States, determined in 
accordance with paragraph (2), 
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is not less than 35 percent of the appraised 
value of the product at the time it is entered 
into the United States. 
(2) DETERMINATION OF 35 PERCENT FOR ARTI-
CLES FROM RECONSTRUCTION OPPORTUNITY ZONES 
IN
PAKISTAN
AND
AFGHANISTAN.—If the cost or 
value of materials produced in the customs territory 
of the United States is included with respect to an 
article described in paragraph (1)(B), for purposes 
of determining the 35-percent appraised value re-
quirement under paragraph (1)(B), not more than 
15 percent of the appraised value of the article at 
the time the article is entered into the United States 
may be attributable to the cost or value of such 
United States materials. 
(e) EXCLUSIONS.—An article shall not be treated as 
the growth, product, or manufacture of 1 or more Recon-
struction Opportunity Zones, and no material shall be in-
cluded for purposes of determining the 35-percent ap-
praised value requirement under subsection (c)(1) or 
(d)(1), by virtue of having merely undergone— 
(1) simple combining or packaging operations; 
or 
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(2) mere dilution with water or with another 
substance that does not materially alter the charac-
teristics of the article or material. 
(f) DIRECT COSTS OF PROCESSING OPERATIONS.— 
(1) IN
GENERAL.—As used in subsections 
(c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), 
the term ‘‘direct costs of processing operations’’ in-
cludes, but is not limited to— 
(A) all actual labor costs involved in the 
growth, production, manufacture, or assembly 
of the article, including— 
(i) fringe benefits; 
(ii) on-the-job training; and 
(iii) costs of engineering, supervisory, 
quality control, and similar personnel; and 
(B) dies, molds, tooling, and depreciation 
on machinery and equipment which are allo-
cable to the article. 
(2) EXCLUDED COSTS.—As used in subsections 
(c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), 
the term ‘‘direct costs of processing operations’’ does 
not include costs which are not directly attributable 
to the article or are not costs of manufacturing the 
article, such as— 
(A) profit; and 
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(B) general expenses of doing business 
which are either not allocable to the article or 
are not related to the growth, production, man-
ufacture, or assembly of the article, such as ad-
ministrative salaries, casualty and liability in-
surance, advertising, and salesmen’s salaries, 
commissions, or expenses. 
(g) REGULATIONS.—The Secretary of the Treasury, 
after consultation with the United States Trade Rep-
resentative, shall prescribe such regulations as may be 
necessary to carry out this section. The regulations may 
provide that, in order for an article to be eligible for duty- 
free treatment under this section, the article— 
(1) shall be wholly the growth, product, or man-
ufacture of 1 or more Reconstruction Opportunity 
Zones; or 
(2) shall be a new or different article of com-
merce which has been grown, produced, or manufac-
tured in 1 or more Reconstruction Opportunity 
Zones. 
SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE 
AND APPAREL ARTICLES. 
(a) DUTY-FREE TREATMENT.—The President is au-
thorized to proclaim duty-free treatment for any textile or 
apparel article described in subsection (b), if— 
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(1) the article is a covered article described in 
subsection (b); and 
(2) the President determines that the country 
in which the Reconstruction Opportunity Zone is lo-
cated has satisfied the requirements set forth in sec-
tion 6. 
(b) COVERED ARTICLES.—A covered article described 
in this subsection is an article in 1 of the following cat-
egories: 
(1) ARTICLES
OF
RECONSTRUCTION
OPPOR-
TUNITY ZONES.—An article that is the product of 1 
or more Reconstruction Opportunity Zones and falls 
within the scope of 1 of the following textile and ap-
parel category numbers, as set forth in the HTS (as 
in effect on September 1, 2007): 
237 .................................
641 ................................
751 
330 .................................
642 ................................
752 
331 .................................
643 ................................
758 
333 .................................
644 ................................
759 
334 .................................
650 ................................
831 
335 ................................
651 ................................
832 
336 ................................
653 ................................
833 
341 .................................
654 ................................
834 
342 .................................
665 ................................
835 
350 .................................
669 ................................
836 
351 .................................
733 ................................
838 
353 .................................
734 ................................
839 
354 .................................
735 ................................
840 
360 .................................
736 ................................
842 
361 .................................
738 ................................
843 
362 .................................
739 ................................
844 
363 .................................
740 ................................
845 
369 .................................
741 ................................
846 
465 .................................
742 ................................
850 
469 .................................
743 ................................
851 
630 .................................
744 ................................
852 
631 .................................
745 ................................
858 
633 .................................
746 ................................
859 
634 .................................
747 ................................
863 
635 .................................
748 ................................
899 
636 .................................
750 
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(2) ARTICLES
OF
RECONSTRUCTION
OPPOR-
TUNITY ZONES IN AFGHANISTAN.—The article is the 
product of 1 or more Reconstruction Opportunity 
Zones in Afghanistan and falls within the scope of 
1 of the following textile and apparel category num-
bers, as set forth in the HTS (as in effect on Sep-
tember 1, 2007): 
201 .................................
439 ................................
459 
414 .................................
440 ................................
464 
431 .................................
442 ................................
670 
433 .................................
444 ................................
800 
434 .................................
445 ................................
810 
435 .................................
446 ................................
870 
436 .................................
448 ................................
871 
438 
(3) CERTAIN
OTHER
TEXTILE
AND
APPAREL 
ARTICLES.—The article is the product of 1 or more 
Reconstruction Opportunity Zones and falls within 
the scope of 1 of the following textile and apparel 
category numbers as set forth in the HTS (as in ef-
fect on September 1, 2007) and is covered by the 
corresponding description for such category: 
(A) CATEGORY 239.—An article in category 
239 (relating to cotton and man-made fiber ba-
bies’ garments) except for baby socks and baby 
booties described in subheading 6111.20.6050, 
6111.30.5050, or 6111.90.5050 of the HTS. 
(B) CATEGORY 338.—An article in category 
338 (relating to men’s and boys’ cotton knit 
shirts) if the article is a certain knit-to-shape 
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garment that meets the definition included in 
Statistical Note 6 to Chapter 61 of the HTS, 
and 
is 
provided 
for 
in 
subheading 
6110.20.1026, 6110.20.2067 or 6110.90.9067 
of the HTS. 
(C) CATEGORY 339.—An article in category 
339 (relating to women’s and girls’ cotton knit 
shirts and blouses) if the article is a knit-to- 
shape garment that meets the definition in-
cluded in Statistical Note 6 to Chapter 61 of 
the HTS, and is provided for in subheading 
6110.20.1031, 6110.20.2077, or 6110.90.9071 
of the HTS. 
(D) CATEGORY
359.—An article in cat-
egory 359 (relating to other cotton apparel) ex-
cept swimwear provided for in subheading 
6112.39.0010, 6112.49.0010, 6211.11.8010, 
6211.11.8020, 6211.12.8010, or 6211.12.8020 
of the HTS. 
(E) CATEGORY 632.—An article in category 
632 (relating to man-made fiber hosiery) if the 
article is panty hose provided for in subheading 
6115.21.0020 of the HTS. 
(F) CATEGORY 638.—An article in category 
638 (relating to men’s and boys’ man-made 
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fiber knit shirts) if the article is a knit-to-shape 
garment that meets the definition included in 
Statistical Note 6 to Chapter 61 of the HTS, 
and 
is 
provided 
for 
in 
subheading 
6110.30.2051, 6110.30.3051, or 6110.90.9079 
of the HTS. 
(G) CATEGORY 639.—An article in category 
639 (relating to women’s and girls’ man-made 
fiber knit shirts and blouses) if the article is a 
knit-to-shape garment that meets the definition 
included in Statistical Note 6 to Chapter 61 of 
the HTS, and is provided for in subheading 
6110.30.2061, 6110.30.3057, or 6110.90.9081 
of the HTS. 
(H) CATEGORY
647.—An article in cat-
egory 647 (relating to men’s and boys’ man- 
made fiber trousers) if the article is ski/ 
snowboard pants that meets the definition in-
cluded in Statistical Note 4 to Chapter 62 of 
the HTS, and is provided for in subheading 
6203.43.3510, 6210.40.5031, or 6211.20.1525 
of the HTS. 
(I) CATEGORY 648.—An article in category 
648 (relating to women’s and girls’ man-made 
fiber trousers) if the article is ski/snowboard 
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pants that meets the definition included in Sta-
tistical Note 4 to Chapter 62 of the HTS, and 
is provided for in subheading 6204.63.3010, 
6210.50.5031, or 6211.20.1555 of the HTS. 
(J) CATEGORY 659.—An article in category 
659 (relating to other man-made fiber apparel) 
except for swimwear provided for in subheading 
6112.31.0010, 6112.31.0020, 6112.41.0010, 
6112.41.0020, 6112.41.0030, 6112.41.0040, 
6211.11.1010, 6211.11.1020, 6211.12.1010, or 
6211.12.1020 of the HTS. 
(K) CATEGORY
666.—An article in cat-
egory 666 (relating to other man-made fiber 
furnishings) except for window shades and win-
dow 
blinds 
provided 
for 
in 
subheading 
6303.12.0010 or 6303.92.2030 of the HTS. 
(4) CERTAIN OTHER ARTICLES.—The article is 
the product of 1 or more Reconstruction Oppor-
tunity Zones and falls within the scope of 1 of the 
following statistical reporting numbers of the HTS 
(as in effect on September 1, 2007): 
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4202.12.8010 .................
6210.20.3000 ................
6304.99.1000 
4202.12.8050 .................
6210.20.7000 ................
6304.99.2500 
4202.22.4010 .................
6210.30.3000 ................
6304.99.4000 
4202.22.7000 .................
6210.30.7000 ................
6304.99.6030 
4202.22.8070 .................
6210.40.3000 ................
6306.22.9010 
4202.92.3010 .................
6210.40.7000 ................
6306.29.1100 
4202.92.6010 .................
6210.50.3000 ................
6306.29.2100 
4202.92.9010 .................
6210.50.7000 ................
6306.40.4100 
4202.92.9015 .................
6211.20.0810 ................
6306.40.4900 
5601.29.0010 .................
6211.20.0820 ................
6306.91.0000 
5702.39.2090 .................
6211.32.0003 ................
6306.99.0000 
5702.49.2000 .................
6211.33.0003 ................
6307.10.2030 
5702.50.5900 .................
6211.42.0003 ................
6307.20.0000 
5702.99.2000 .................
6211.43.0003 ................
6307.90.7200 
5703.90.0000 .................
6212.10.3000 ................
6307.90.7500 
5705.00.2090 .................
6212.10.7000 ................
6307.90.8500 
6108.22.1000 .................
6212.90.0050 ................
6307.90.8950 
6111.90.7000 .................
6213.90.0500 ................
6307.90.8985 
6113.00.1005 .................
6214.10.1000 ................
6310.90.1000 
6113.00.1010 .................
6216.00.0800 ................
6406.99.1580 
6113.00.1012 .................
6216.00.1300 ................
6501.00.6000 
6115.29.4000 .................
6216.00.1900 ................
6502.00.2000 
6115.30.1000 .................
6216.00.2600 ................
6502.00.4000 
6115.99.4000 .................
6216.00.3100 ................
6502.00.9060 
6116.10.0800 .................
6216.00.3500 ................
6504.00.3000 
6116.10.1300 .................
6216.00.4600 ................
6504.00.6000 
6116.10.4400 .................
6217.10.1010 ................
6504.00.9045 
6116.10.6500 .................
6217.10.8500 ................
6504.00.9075 
6116.10.9500 .................
6301.90.0020 ................
6505.10.0000 
6116.92.0800 .................
6302.29.0010 ................
6505.90.8015 
6116.93.0800 .................
6302.39.0020 ................
6505.90.9050 
6116.99.3500 .................
6302.59.3010 ................
6505.90.9076 
6117.10.4000 .................
6302.99.1000 ................
9404.90.2000 
6117.80.3010 .................
6303.99.0030 ................
9404.90.8523 
6117.80.8500 .................
6304.19.3030 ................
9404.90.9523 
6210.10.2000 .................
6304.91.0060 ................
9404.90.9570 
6210.10.7000 
(c) RULES OF ORIGIN FOR CERTAIN COVERED ARTI-
CLES.— 
(1) GENERAL RULES.—Except with respect to 
an article listed in paragraph (2) of subsection (b), 
duty-free treatment may be proclaimed for an article 
listed in subsection (b) only if the article is imported 
directly into the customs territory of the United 
States from a Reconstruction Opportunity Zone 
and— 
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(A) the article is wholly the growth, prod-
uct, or manufacture of 1 or more Reconstruc-
tion Opportunity Zones; 
(B) the article is a yarn, thread, twine, 
cordage, rope, cable, or braiding, and— 
(i) the constituent staple fibers are 
spun in, or 
(ii) the continuous filament fiber is 
extruded in, 
1 or more Reconstruction Opportunity Zones; 
(C) the article is a fabric, including a fab-
ric classifiable 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 1 or more Reconstruction 
Opportunity Zones; or 
(D) the article is any other textile or ap-
parel article that is cut (or knit-to-shape) and 
sewn or otherwise assembled in 1 or more Re-
construction Opportunity Zones from its compo-
nent pieces. 
(2) SPECIAL RULES.— 
(A) CERTAIN MADE-UP ARTICLES, TEXTILE 
ARTICLES IN THE PIECE, AND CERTAIN OTHER 
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TEXTILES AND TEXTILE ARTICLES.—Notwith-
standing paragraph (1)(D) and except as pro-
vided in subparagraphs (C) and (D) of this 
paragraph, subparagraph (A), (B), or (C) of 
paragraph (1), as appropriate, shall determine 
whether a good that is classifiable under 1 of 
the following headings or subheadings of the 
HTS shall be considered to meet the rules of 
origin of this subsection: 5609, 5807, 5811, 
6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
6304, 6305, 6306, 6307.10, 6307.90, 6308, 
and 9404.90. 
(B) CERTAIN
KNIT-TO-SHAPE
TEXTILES 
AND
TEXTILE
ARTICLES.—Notwithstanding 
paragraph (1)(D) and except as provided in 
subparagraphs (C) and (D) of this paragraph, 
a textile or apparel article that is wholly formed 
on seamless knitting machines or by hand-knit-
ting in 1 or more Reconstruction Opportunity 
Zones shall be considered to meet the rules of 
origin of this subsection. 
(C) CERTAIN
DYED
AND
PRINTED
TEX-
TILES
AND
TEXTILE
ARTICLES.—Notwith-
standing paragraph (1)(D), an article classifi-
able under subheading 6117.10, 6213.00, 
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6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 
6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 
6303.99, 
6304.19, 
6304.93, 
6304.99, 
9404.90.85, or 9404.90.95 of the HTS, except 
for an article classifiable under 1 of such sub-
headings as of cotton or of wool or consisting 
of fiber blends containing 16 percent or more 
by weight of cotton, shall be considered to meet 
the rules of origin of this subsection if the fab-
ric in the article is both dyed and printed in 1 
or more Reconstruction Opportunity Zones, and 
such dyeing and printing is accompanied by 2 
or more of the following finishing operations: 
bleaching, shrinking, fulling, napping, decating, 
permanent stiffening, weighting, permanent em-
bossing, or moireing. 
(D) FABRICS OF SILK, COTTON, MAN-MADE 
FIBER, 
OR
VEGETABLE
FIBER.—Notwith-
standing paragraph (1)(C), a fabric classifiable 
under the HTS as of silk, cotton, man-made 
fiber, or vegetable fiber shall be considered to 
meet the rules of origin of this subsection if the 
fabric is both dyed and printed in 1 or more 
Reconstruction Opportunity Zones, and such 
dyeing and printing is accompanied by 2 or 
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more of the following finishing operations: 
bleaching, shrinking, fulling, napping, decating, 
permanent stiffening, weighting, permanent em-
bossing, or moireing. 
(d) RULES
OF ORIGIN
FOR COVERED ARTICLES 
THAT ARE PRODUCTS OF 1 OR MORE RECONSTRUCTION 
OPPORTUNITY ZONES IN AFGHANISTAN.— 
(1) GENERAL
RULES.—Duty-free treatment 
may be proclaimed for an article listed in paragraph 
(2) of subsection (b) only if the article is imported 
directly into the customs territory of the United 
States from a Reconstruction Opportunity Zone in 
Afghanistan and— 
(A) the article is wholly the growth, prod-
uct, or manufacture of 1 or more Reconstruc-
tion Opportunity Zones in Afghanistan, 
(B) the article is a yarn, thread, twine, 
cordage, rope, cable, or braiding, and— 
(i) the constituent staple fibers are 
spun in, or 
(ii) the continuous filament fiber is 
extruded in, 
1 or more Reconstruction Opportunity Zones in 
Afghanistan; 
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(C) the article is a fabric, including a fab-
ric classifiable 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 1 or more Reconstruction 
Opportunity Zones in Afghanistan; or 
(D) the article is any other textile or ap-
parel article that is cut (or knit-to-shape) and 
sewn or otherwise assembled in 1 or more Re-
construction Opportunity Zones in Afghanistan 
from its component pieces. 
(2) SPECIAL RULES.— 
(A) CERTAIN MADE-UP ARTICLES, TEXTILE 
ARTICLES IN THE PIECE, AND CERTAIN OTHER 
TEXTILES AND TEXTILE ARTICLES.—Notwith-
standing paragraph (1)(D) and except as pro-
vided in subparagraphs (C) and (D) of this 
paragraph, subparagraph (A), (B), or (C) of 
paragraph (1), as appropriate, shall determine 
whether a good that is classifiable under 1 of 
the following headings or subheadings of the 
HTS shall be considered to meet the rules of 
origin of this subsection: 5609, 5807, 5811, 
6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
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6304, 6305, 6306, 6307.10, 6307.90, 6308, 
and 9404.90. 
(B) CERTAIN
KNIT-TO-SHAPE
TEXTILES 
AND
TEXTILE
ARTICLES.—Notwithstanding 
paragraph (1)(D) and except as provided in 
subparagraphs (C) and (D) of this paragraph, 
a textile or apparel article that is wholly formed 
on seamless knitting machines or by hand-knit-
ting in 1 or more Reconstruction Opportunity 
Zones in Afghanistan shall be considered to 
meet the rules of origin of this subsection. 
(C) CERTAIN
DYED
AND
PRINTED
TEX-
TILES
AND
TEXTILE
ARTICLES.—Notwith-
standing paragraph (1)(D), an article classifi-
able under subheading 6117.10, 6213.00, 
6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 
6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 
6303.99, 
6304.19, 
6304.93, 
6304.99, 
9404.90.85, or 9404.90.95 of the HTS, except 
for an article classifiable under 1 of such sub-
headings as of cotton or of wool or consisting 
of fiber blends containing 16 percent or more 
by weight of cotton, shall be considered to meet 
the rules of origin of this subsection if the fab-
ric in the article is both dyed and printed in 1 
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or more Reconstruction Opportunity Zones in 
Afghanistan, and such dyeing and printing is 
accompanied by 2 or more of the following fin-
ishing operations: bleaching, shrinking, fulling, 
napping, 
decating, 
permanent 
stiffening, 
weighting, permanent embossing, or moireing. 
(D) FABRICS OF SILK, COTTON, MAN-MADE 
FIBER
OR
VEGETABLE
FIBER.—Notwith-
standing paragraph (1)(C), a fabric classifiable 
under the HTS as of silk, cotton, man-made 
fiber, or vegetable fiber shall be considered to 
meet the rules of origin of this subsection if the 
fabric is both dyed and printed in 1 or more 
Reconstruction Opportunity Zones in Afghani-
stan, and such dyeing and printing is accom-
panied by 2 or more of the following finishing 
operations: bleaching, shrinking, fulling, nap-
ping, decating, permanent stiffening, weighting, 
permanent embossing, or moireing. 
(e) REGULATIONS.—The Secretary of the Treasury, 
after consultation with the United States Trade Rep-
resentative, shall prescribe such regulations as may be 
necessary to carry out this section. 
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SEC. 
6. 
PROTECTIONS 
AGAINST 
UNLAWFUL 
TRANS-
SHIPMENT. 
(a) DUTY-FREE TREATMENT CONDITIONED ON EN-
FORCEMENT MEASURES.— 
(1) IN GENERAL.—The duty-free treatment de-
scribed in section 5 shall not be provided to covered 
articles that are imported from a Reconstruction Op-
portunity Zone in a country unless the President de-
termines that country meets the following criteria: 
(A) The country has adopted an effective 
visa or electronic certification system, domestic 
laws, and enforcement procedures applicable to 
covered articles to prevent unlawful trans-
shipment of the articles and the use of false 
documents relating to the importation of the ar-
ticles into the United States. 
(B) The country has enacted legislation or 
promulgated regulations that would permit U.S. 
Customs and Border Protection verification 
teams to have the access necessary to inves-
tigate thoroughly allegations of unlawful trans-
shipment through such country. 
(C) The country agrees to provide U.S. 
Customs and Border Protection with a monthly 
report on shipments of covered articles from 
each facility engaged in the production of those 
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articles in a Reconstruction Opportunity Zone 
in that country. 
(D) The country will cooperate fully with 
the United States to address and take action 
necessary to prevent circumvention, as de-
scribed in article 5 of the Agreement on Tex-
tiles and Clothing. 
(E) The country agrees to require each en-
tity engaged in the production or manufacture 
of a covered article in a Reconstruction Oppor-
tunity Zone in that country to register with the 
competent government authority, to provide 
that authority with the following information, 
and to update that information as changes 
occur: 
(i) The name and address of the enti-
ty, including the location of all textile or 
apparel facilities owned or operated by that 
entity in Afghanistan or Pakistan. 
(ii) The telephone number, facsimile 
number, and electronic mail address of the 
entity. 
(iii) The names and nationalities of 
the owners, directors, and corporate offi-
cers, and their positions within the entity. 
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(iv) The number of employees the en-
tity employs and their occupations. 
(v) A general description of the cov-
ered articles the entity produces and the 
entity’s production capacity. 
(vi) The number and type of machines 
the entity uses to produce textile or ap-
parel articles at each facility. 
(vii) The approximate number of 
hours the machines operate per week. 
(viii) The identity of any supplier to 
the entity of textile or apparel goods, or 
fabrics, yarns, or fibers used in the produc-
tion of textile or apparel goods. 
(ix) The name of, and contact infor-
mation for, each of the entity’s customers 
in the United States. 
(F) The country agrees to provide to U.S. 
Customs and Border Protection on a timely 
basis all of the information received by the com-
petent government authority in accordance with 
subparagraph (E) and to provide U.S. Customs 
and Border Protection with an annual update 
of that information. 
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(G) The country agrees to require that all 
producers and exporters of covered articles in a 
Reconstruction Opportunity Zone in that coun-
try maintain complete records of the production 
and the export of covered articles, including 
materials used in the production, for at least 5 
years after the production or export (as the 
case may be). 
(H) The country agrees to provide, on a 
timely basis, at the request of U.S. Customs 
and Border Protection, documentation estab-
lishing the eligibility of covered articles for 
duty-free treatment under section 5. 
(2) DOCUMENTATION
ESTABLISHING
ELIGI-
BILITY
OF
ARTICLES
FOR
DUTY-FREE
TREAT-
MENT.—For purposes of paragraph (1)(H), docu-
mentation establishing the eligibility of a covered ar-
ticle for duty-free treatment under section 5 includes 
documentation such as production records, informa-
tion relating to the place of production, the number 
and identification of the types of machinery used in 
production, the number of workers employed in pro-
duction, and certification from both the manufac-
turer and the exporter. 
(b) CUSTOMS PROCEDURES AND ENFORCEMENT.— 
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(1) IN GENERAL.— 
(A) REGULATIONS.—The Secretary of the 
Treasury, after consultation with the United 
States Trade Representative, shall promulgate 
regulations setting forth customs procedures 
similar in all material respects to the require-
ments of article 502(1) of the NAFTA as im-
plemented pursuant to United States law, which 
shall apply to any importer that claims duty- 
free treatment for an article under section 5. 
(B) DETERMINATION.—In order for arti-
cles produced in a Reconstruction Opportunity 
Zone to qualify for the duty-free treatment 
under section 5, there shall be in effect a deter-
mination by the President that Afghanistan or 
Pakistan, as the case may be— 
(i) has implemented and follows, or 
(ii) is making substantial progress to-
ward implementing and following, 
procedures and requirements similar in all ma-
terial respects to the relevant procedures and 
requirements under chapter 5 of the NAFTA. 
(2) CERTIFICATE OF ORIGIN.—A certificate of 
origin that otherwise would be required pursuant to 
the provisions of paragraph (1) shall not be required 
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in the case of an article imported under section 5 if 
such certificate of origin would not be required 
under article 503 of the NAFTA, as implemented 
pursuant to United States law, if the article were 
imported from Mexico. 
(3) PENALTIES.—If the President determines, 
based on sufficient evidence, that an entity has en-
gaged in unlawful transshipment described in para-
graph (4), the President shall deny for a period of 
5 years beginning on the date of the determination 
all benefits under section 5 to the entity, any suc-
cessor of the entity, and any other entity owned, op-
erated, or controlled by the principals of the entity. 
(4) UNLAWFUL TRANSSHIPMENT DESCRIBED.— 
For purposes of this section, unlawful transshipment 
occurs when duty-free treatment for a covered article 
has been claimed on the basis of material false infor-
mation concerning the country of origin, manufac-
ture, processing, or assembly of the article or any of 
its components. For purposes of the preceding sen-
tence, false information is material if disclosure of 
the true information would mean or would have 
meant that the article is or was ineligible for duty- 
free treatment under section 5. 
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(5) MONITORING
AND
REPORTS
TO
CON-
GRESS.—U.S. Customs and Border Protection shall 
monitor and the Commissioner responsible for U.S. 
Customs and Border Protection shall submit to Con-
gress, not later than March 31 of each year, a report 
on the effectiveness of the visa or electronic certifi-
cation systems and the implementation of legislation 
and regulations described in subsection (a) and on 
measures taken by Afghanistan and Pakistan to pre-
vent circumvention as described in article 5 of the 
Agreement on Textile and Clothing. 
(c) ADDITIONAL CUSTOMS ENFORCEMENT.—U.S. 
Customs and Border Protection shall— 
(1) make available technical assistance to Af-
ghanistan and Pakistan— 
(A) in the development and implementation 
of visa or electronic certification systems, legis-
lation, and regulations described in subsection 
(a)(1)(A) and (B); and 
(B) to train their officials in anti-trans-
shipment enforcement; 
(2) send production verification teams to Af-
ghanistan and Pakistan as necessary; and 
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(3) to the extent feasible, place Afghanistan 
and Pakistan on the Electronic Visa (ELVIS) pro-
gram or relevant e-certification program. 
(d) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out subsection (c), there are authorized to be appropriated 
to U.S. Customs and Border Protection $10,000,000 for 
each of the fiscal years 2009 through 2022. 
SEC. 7. TECHNICAL ASSISTANCE, CAPACITY BUILDING, 
COMPLIANCE ASSESSMENT, AND REMEDI-
ATION PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Finance of the 
Senate and the Committee on Ways and Means of 
the House of Representatives. 
(2) TEXTILE OR APPAREL EXPORTING ENTER-
PRISE.—The term ‘‘textile or apparel exporting en-
terprise’’ means a producer of textile or apparel arti-
cles that is located in a Reconstruction Opportunity 
Zone and is seeking or receiving any benefits under 
section 5. 
(b) ELIGIBILITY.— 
(1) PRESIDENTIAL CERTIFICATION OF COMPLI-
ANCE
BY
AFGHANISTAN
OR
PAKISTAN
WITH
RE-
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QUIREMENTS.—Upon the expiration of the 16-month 
period beginning on the date on which the President 
notifies Congress of the President’s intention to des-
ignate an area within Afghanistan or Pakistan, as 
the case may be, as a Reconstruction Opportunity 
Zone under section 3, each Reconstruction Oppor-
tunity Zone in Afghanistan or Pakistan, as the case 
may be, shall continue to receive duty-free treatment 
under this Act only if the President determines and 
certifies to Congress that Afghanistan or Pakistan, 
as the case may be— 
(A) has implemented the requirements set 
forth in subsections (c) and (d); and 
(B) has agreed to require textile or apparel 
exporting enterprises to participate in the pro-
gram described in subsection (d) and has devel-
oped a system to ensure participation in such 
program by such enterprises, including by de-
veloping and maintaining the registry described 
in subsection (c)(2)(A). 
(2) EXTENSION.—The President may extend 
the period for compliance by Afghanistan or Paki-
stan under paragraph (1) if the President— 
(A) determines that Afghanistan or Paki-
stan, as the case may be, has made a good faith 
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effort toward such compliance and has agreed 
to take additional steps to come into full com-
pliance that are satisfactory to the President; 
and 
(B) provides to the appropriate congres-
sional committees, not later than 6 months 
after the last day of the 16-month period speci-
fied in paragraph (1), and every 6 months 
thereafter, a report identifying the steps that 
Afghanistan or Pakistan, as the case may be, 
has agreed to take to come into full compliance 
and the progress made over the preceding 6- 
month period in implementing such steps. 
(3) CONTINUING COMPLIANCE.— 
(A) 
TERMINATION
OF
PREFERENTIAL 
TREATMENT.—If, after making a certification 
under paragraph (1), the President determines 
that Afghanistan or Pakistan is no longer meet-
ing the requirements set forth in paragraph (1), 
the President shall terminate the eligibility of 
Afghanistan or Pakistan, as the case may be, 
provided under section 3(b), unless the Presi-
dent determines, after consulting with the ap-
propriate congressional committees, that meet-
ing such requirements is not practicable be-
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cause of extraordinary circumstances existing in 
Afghanistan or Pakistan, as the case may be, 
when the determination is made. 
(B) SUBSEQUENT
COMPLIANCE.—If the 
President, after terminating eligibility of Af-
ghanistan or Pakistan, as the case may be, 
under subparagraph (A), determines that Af-
ghanistan or Pakistan, as the case may be, is 
meeting the requirements set forth in para-
graph (1), the President shall reinstate the eli-
gibility of Afghanistan or Pakistan, as the case 
may be, under section 3(b). 
(c) LABOR OFFICIAL.— 
(1) IN GENERAL.—The requirement under this 
subsection is that Afghanistan or Pakistan, as the 
case may be, has designated a labor official within 
the national government that— 
(A) reports directly to the President of Af-
ghanistan or Pakistan, as the case may be; 
(B) is chosen by the President of Afghani-
stan or Pakistan, as the case may be, in con-
sultation with labor unions and industry asso-
ciations; and 
(C) is vested with the authority to perform 
the functions described in paragraph (2). 
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(2) FUNCTIONS.—The functions of the labor of-
ficial shall include— 
(A) developing and maintaining a registry 
of textile or apparel exporting enterprises, and 
developing, in consultation and coordination 
with any other appropriate officials of the Gov-
ernment of Afghanistan or Pakistan, as the 
case may be, a system to ensure participation 
by such enterprises in the program described in 
subsection (d); 
(B) overseeing the implementation of the 
program described in subsection (d); 
(C) receiving and investigating comments 
from any interested party regarding the condi-
tions described in subsection (d)(2) in facilities 
of textile or apparel exporting enterprises listed 
in the registry described in subparagraph (A) 
and, where appropriate, referring such com-
ments or the result of such investigations to the 
appropriate authorities of Afghanistan or Paki-
stan, as the case may be, or to the entity oper-
ating the program described in subsection (d); 
(D) assisting, in consultation and coordina-
tion with any other appropriate authorities Af-
ghanistan or Pakistan, as the case may be, tex-
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tile or apparel exporting enterprises listed in 
the registry described in subparagraph (A) in 
meeting the conditions set forth in subsection 
(d)(2); and 
(E) coordinating, with the assistance of the 
entity operating the program described in sub-
section (d), a tripartite committee comprised of 
appropriate representatives of government agen-
cies, employers, and workers, as well as other 
relevant interested parties, for the purposes of 
evaluating progress in implementing the pro-
gram described in subsection (d), and con-
sulting on improving core labor standards and 
working conditions in the textile and apparel 
sector in Afghanistan or Pakistan, as the case 
may be, and on other matters of common con-
cern relating to such core labor standards and 
working conditions. 
(d) TECHNICAL ASSISTANCE, CAPACITY BUILDING, 
COMPLIANCE
ASSESSMENT, AND
REMEDIATION
PRO-
GRAM.— 
(1) IN GENERAL.—The requirement under this 
subsection is that Afghanistan or Pakistan, as the 
case may be, in cooperation with the International 
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Labor Organization, has established a program 
meeting the requirements under paragraph (3)— 
(A) to assess compliance by textile or ap-
parel exporting enterprises listed in the registry 
described in subsection (c)(2)(A) with the con-
ditions set forth in paragraph (2) and to assist 
such enterprises in meeting such conditions; 
and 
(B) to provide assistance to improve the 
capacity of the Government of Afghanistan or 
Pakistan, as the case may be— 
(i) to inspect facilities of textile or ap-
parel exporting enterprises listed in the 
registry described in subsection (c)(2)(A); 
and 
(ii) to enforce national labor laws and 
resolve labor disputes, including through 
measures described in paragraph (5). 
(2) CONDITIONS
DESCRIBED.—The conditions 
referred to in paragraph (1) are— 
(A) compliance with core labor standards; 
and 
(B) compliance with the labor laws of Af-
ghanistan or Pakistan, as the case may be, that 
relate directly to core labor standards and to 
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ensuring acceptable conditions of work with re-
spect to minimum wages, hours of work, and 
occupational health and safety. 
(3) REQUIREMENTS.—The requirements for the 
program are that the program— 
(A) be operated by the International Labor 
Organization (or any subdivision, instrumen-
tality, or designee thereof), which prepares the 
annual reports described in paragraph (4); 
(B) be developed through a participatory 
process that includes the labor official described 
in subsection (c) of Afghanistan or Pakistan, as 
the case may be, and appropriate representa-
tives of government agencies, employers, and 
workers; 
(C) assess compliance by each textile or 
apparel exporting enterprise listed in the reg-
istry described in subsection (c)(2)(A) with the 
conditions set forth in paragraph (2) and iden-
tify any deficiencies by such enterprise with re-
spect to meeting such conditions, including 
by— 
(i) conducting site visits to facilities of 
the enterprise; 
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(ii) conducting confidential interviews 
with workers and management of the fa-
cilities of the enterprise; 
(iii) providing to management and 
workers, and where applicable, worker or-
ganizations in the enterprise, on a con-
fidential basis— 
(I) the results of the assessment 
carried out under this subparagraph; 
and 
(II) specific suggestions for reme-
diating any such deficiencies; 
(D) assist the textile or apparel exporting 
enterprise in remediating any deficiencies iden-
tified under subparagraph (C); 
(E) conduct prompt follow-up site visits to 
the facilities of the textile or apparel exporting 
enterprise to assess progress on remediation of 
any deficiencies identified under subparagraph 
(C); and 
(F) provide training to workers and man-
agement of the textile or apparel exporting en-
terprise, and where appropriate, to other per-
sons or entities, to promote compliance with 
paragraph (2). 
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(4) ANNUAL REPORT.—The annual reports re-
ferred to in paragraph (3)(A) are a report, by the 
entity operating the program, that is published (and 
available to the public in a readily accessible man-
ner) on an annual basis, beginning 1 year after Af-
ghanistan or Pakistan, as the case may be, has im-
plemented the program under this subsection, cov-
ering the preceding 1-year period, and that includes 
the following: 
(A) The name of each textile or apparel ex-
porting enterprise listed in the registry de-
scribed in subsection (c)(2)(A) that has been 
identified as having met the conditions under 
paragraph (2). 
(B) The name of each textile or apparel 
exporting enterprise listed in the registry de-
scribed in subsection (c)(2)(A) that has been 
identified as having deficiencies with respect to 
the conditions under paragraph (2), and has 
failed to remedy such deficiencies. 
(C) For each textile or apparel exporting 
enterprise listed under subparagraph (B)— 
(i) a description of the deficiencies 
found to exist and the specific suggestions 
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for remediating such deficiencies made by 
the entity operating the program; 
(ii) a description of the efforts by the 
enterprise to remediate the deficiencies, in-
cluding a description of assistance provided 
by any entity to assist in such remediation; 
and 
(iii) with respect to deficiencies that 
have not been remediated, the amount of 
time that has elapsed since the deficiencies 
were first identified in a report under this 
subparagraph. 
(D) For each textile or apparel exporting 
enterprise identified as having deficiencies with 
respect to the conditions described under para-
graph (2) in a prior report under this para-
graph, a description of the progress made in re-
mediating such deficiencies since the submission 
of the prior report, and an assessment of 
whether any aspect of such deficiencies persists. 
(5) CAPACITY
BUILDING.—The assistance to 
the Government of Afghanistan or Pakistan referred 
to in paragraph (1)(B) shall include programs— 
(A) to review the labor laws and regula-
tions of Afghanistan or Pakistan, as the case 
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may be, and to develop and implement strate-
gies for improving labor laws and regulations; 
(B) to develop additional strategies for fa-
cilitating protection of core labor standards and 
providing acceptable conditions of work with re-
spect to minimum wages, hours of work, and 
occupational 
safety 
and 
health, 
including 
through legal, regulatory, and institutional re-
form; 
(C) to increase awareness of core labor 
standards and national labor laws; 
(D) to promote consultation and coopera-
tion between government representatives, em-
ployers, worker representatives, and United 
States importers on matters relating to core 
labor standards and national labor laws; 
(E) to assist the labor official of Afghani-
stan or Pakistan, as the case may be, des-
ignated pursuant to subsection (c) in estab-
lishing and coordinating operation of the com-
mittee described in subsection (c)(2)(E); 
(F) to assist worker representatives in 
more fully and effectively advocating on behalf 
of their members; and 
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(G) to provide on-the-job training and 
technical assistance to labor inspectors, judicial 
officers, and other relevant personnel to build 
their capacity to enforce national labor laws 
and resolve labor disputes. 
(e) COMPLIANCE WITH ELIGIBILITY CRITERIA.— 
(1) COUNTRY COMPLIANCE WITH CORE LABOR 
STANDARDS
ELIGIBILITY
CRITERIA.—In making a 
determination of whether Afghanistan or Pakistan is 
meeting the requirement set forth in section 
3(b)(1)(E) relating to core labor standards, the 
President shall consider the reports produced under 
subsection (d)(4). 
(2) ENTERPRISE ELIGIBILITY.— 
(A) IDENTIFICATION OF PRODUCERS.—Be-
ginning 2 years after the President makes the 
certification under subsection (b)(1), the Presi-
dent shall identify on a biennial basis whether 
a textile or apparel exporting enterprise listed 
in the registry described in subsection (c)(2)(A) 
has failed to comply with core labor standards 
and with the labor laws of Afghanistan or Paki-
stan, as the case may be, that directly relate to 
and are consistent with core labor standards. 
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(B) ASSISTANCE TO ENTERPRISES; WITH-
DRAWAL, 
ETC., 
OF
PREFERENTIAL
TREAT-
MENT.—For each textile or apparel exporting 
enterprise that the President identifies under 
subparagraph (A), the President shall seek to 
assist such enterprise in coming into compliance 
with core labor standards and with the labor 
laws of Afghanistan or Pakistan, as the case 
may be, that directly relate to and are con-
sistent with core labor standards. If such ef-
forts fail, the President shall withdraw, sus-
pend, or limit the application of preferential 
treatment under section 5 to articles of such 
enterprise. 
(C) REINSTATING PREFERENTIAL TREAT-
MENT.—If the President, after withdrawing, 
suspending, or limiting the application of pref-
erential treatment under subparagraph (B) to 
articles of a textile or apparel exporting enter-
prise, determines that such enterprise is com-
plying with core labor standards and with the 
labor laws of Afghanistan or Pakistan, as the 
case may be, that directly relate to and are con-
sistent with core labor standards, the President 
shall reinstate the application of preferential 
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treatment under section 5 to the articles of the 
enterprise. 
(D) CONSIDERATION
OF
REPORTS.—In 
making the identification under subparagraph 
(A) and the determination under subparagraph 
(C), the President shall consider the reports 
made available under subsection (d)(4). 
(f) REPORTS BY THE PRESIDENT.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, and an-
nually thereafter, the President shall transmit to the 
appropriate congressional committees a report on 
the implementation of this section during the pre-
ceding 1-year period. 
(2) MATTERS TO BE INCLUDED.—Each report 
required by paragraph (1) shall include the fol-
lowing: 
(A) An explanation of the efforts of Af-
ghanistan and Pakistan, the President, and the 
International Labor Organization to carry out 
this section. 
(B) A summary of each report produced 
under subsection (d)(4) during the preceding 1- 
year period and a summary of the findings con-
tained in such report. 
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(C) Identifications made under subsection 
(e)(2)(A) and determinations made under sub-
section (e)(2)(C). 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$20,000,000 for the period beginning on October 1, 2008, 
and ending on September 30, 2013. 
SEC. 8. PETITION PROCESS. 
Any interested party may file a request to have the 
status of Afghanistan or Pakistan reviewed with respect 
to the eligibility requirements listed in this Act, and the 
President shall provide for this purpose the same proce-
dures as those that are provided for reviewing the status 
of eligible beneficiary developing countries with respect to 
the designation criteria listed in subsections (b) and (c) 
of section 502 of the Trade Act of 1974 (19 U.S.C. 2642 
(b) and (c)). 
SEC. 9. LIMITATIONS ON PROVIDING DUTY-FREE TREAT-
MENT. 
(a) IN GENERAL.— 
(1) PROCLAMATION.—Except as provided in 
paragraph (2), and subject to subsection (b) and the 
conditions described in sections 3 through 7, the 
President shall exercise the President’s authority 
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under this Act, and the President shall proclaim any 
duty-free treatment pursuant to that authority. 
(2) WAIVER.—The President may waive the ap-
plication of duty-free treatment under this Act with 
respect to Reconstruction Opportunity Zones in Af-
ghanistan and Pakistan or enterprises receiving ben-
efits under section 4 or 5 if the President deter-
mines that providing such treatment is inconsistent 
with the national interests of the United States. In 
making such determination, the President shall con-
sider— 
(A) obligations of the United States under 
international agreements; 
(B) the national economic interests of the 
United States; and 
(C) the foreign policy interests of the 
United States, including the economic develop-
ment of Afghanistan and the border region of 
Pakistan. 
(b) WITHDRAWAL, SUSPENSION, OR LIMITATION OF 
DUTY-FREE TREATMENT.—The President may withdraw, 
suspend, or limit the application of the duty-free treat-
ment proclaimed under this Act. In taking any action to 
withdraw, suspend, or limit duty-free treatment with re-
spect to Reconstruction Opportunity Zones in Afghanistan 
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