H. R. 2603
One Hundred Seventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and one
An Act
To implement the agreement establishing a United States-Jordan free trade area.
Be it enacted by the Senate and House of Representatives 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 relations
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 Agree-
ment between the United States of America and the Hashemite
Kingdom of Jordan on the Establishment of a Free Trade
Area, entered into on October 24, 2000.
(2) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff
Schedule of the United States.
TITLE I—TARIFF MODIFICATIONS;
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 treatment; 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;
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(2) such continuation of duty-free or excise treatment; 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 elimination 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 manufac-
ture of Jordan; or
(II) is a new or different article of commerce
that has been grown, produced, 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 materials 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 entered.
(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 appraised value
of the article at the time it is entered that is attrib-
utable 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 virtue of having merely
undergone—
(A) simple combining or packaging operations; or
(B) mere dilution with water or mere dilution with
another substance that does not materially 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 mer-
chandise, including fringe benefits, on-the-job training, and
the cost of engineering, supervisory, quality control, and
similar personnel; and
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(B) dies, molds, tooling, and depreciation on machinery
and equipment which are allocable to the specific merchan-
dise.
(2) EXCLUDED COSTS.—The term ‘‘direct costs of processing
operations’’ does not include costs which are not directly attrib-
utable to the merchandise concerned, or are not costs of manu-
facturing the product, such as—
(A) profit; and
(B) general expenses of doing business which are either
not allocable to the specific merchandise or are not related
to the growth, production, manufacture, or assembly of
the merchandise, such as administrative salaries, casualty
and liability insurance, advertising, and salesmen’s sala-
ries, commissions, or expenses.
(c) TEXTILE AND APPAREL ARTICLES.—
(1) IN
GENERAL.—A textile or apparel article imported
directly from Jordan into the customs territory of the United
States shall be considered to meet the requirements of para-
graph (1)(A) of subsection (a) only if—
(A) the article is wholly obtained or produced 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 fabric 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 process in Jordan; or
(D) the article is any other textile or apparel 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 Jordan’’ if it is wholly the
growth, product, or manufacture of Jordan.
(3) SPECIAL RULES.—
(A) CERTAIN MADE-UP ARTICLES, TEXTILE ARTICLES IN
THE PIECE, AND CERTAIN OTHER TEXTILES AND TEXTILE ARTI-
CLES.—Notwithstanding paragraph (1)(D) and except as
provided in subparagraphs (C) and (D) of this paragraph,
subparagraph (A), (B), or (C) of paragraph (1), as appro-
priate, shall determine whether a good that is classified
under one of the following headings or subheadings of
the HTS shall be considered to meet the requirements
of paragraph (1)(A) of subsection (a): 5609, 5807, 5811,
6209.20.50.40, 6213, 6214, 6301, 6302, 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 which is knit-to-shape in Jordan
shall be considered to meet the requirements of paragraph
(1)(A) of subsection (a).
(C) CERTAIN DYED AND PRINTED TEXTILES AND TEXTILE
ARTICLES.—Notwithstanding paragraph (1)(D), a good
classified 
under 
heading 
6117.10, 
6213.00, 
6214.00.
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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
a good classified under any such heading 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 requirements of paragraph (1)(A) of subsection (a) if
the fabric in the good is both dyed and printed in Jordan,
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 embossing, or moireing.
(D) FABRICS OF SILK, COTTON, MANMADE FIBER OR VEGE-
TABLE FIBER.—Notwithstanding paragraph (1)(C), a fabric
classified under the HTS as of silk, cotton, man-made fiber,
or vegetable fiber shall be considered to meet the require-
ments of paragraph (1)(A) of subsection (a) if the fabric
is both dyed and printed in Jordan, 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
embossing, or moireing.
(4) MULTICOUNTRY
RULE.—If the origin of a textile or
apparel article cannot be determined under paragraph (1) or
(3), then that article shall be considered to meet the require-
ments of paragraph (1)(A) of subsection (a) if—
(A) the most important assembly or manufacturing
process occurs in Jordan; or
(B) if the applicability of paragraph (1)(A) of subsection
(a) cannot be determined under subparagraph (A), the last
important assembly or manufacturing occurs in Jordan.
(d) EXCLUSION.—A good shall not be considered to meet the
requirements of paragraph (1)(A) of subsection (a) if the good—
(1) is imported into Jordan, and, at the time of importation,
would be classified under heading 0805 of the HTS; and
(2) is processed in Jordan into a good classified under
any of subheadings 2009.11 through 2009.30 of the HTS.
(e) REGULATIONS.—The Secretary of the Treasury, after con-
sultation with the United States Trade Representative, shall pre-
scribe 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 Commission.
(2) JORDANIAN
ARTICLE.—The term ‘‘Jordanian article’’
means an article that qualifies for reduction or elimination
of a duty under section 102.
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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, including a trade association, firm,
certified or recognized union, or group of workers that is rep-
resentative 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 provisional 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 sub-
section (a), the Commission, unless subsection (d) applies, shall
promptly initiate an investigation to determine whether, as
a result of the reduction 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 condi-
tions that imports of the Jordanian article alone constitute
a substantial cause of serious injury or threat thereof to the
domestic industry producing an article that is like, or directly
competitive 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 reduction 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 imports. Such cause need not be equal to or greater
than any other cause.
(c) APPLICABLE PROVISIONS.—The following provisions 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 investigation
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.
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(b) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-
TION AFFIRMATIVE.—If the determination made by the Commission
under subsection (a) with respect to imports of an article is affirma-
tive, 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 efforts
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 investigation, the Commission
shall submit to the President a report that shall include—
(1) a statement of the basis for the determination;
(2) dissenting and separate views; and
(3) any finding made under subsection (b) regarding 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 Commis-
sion determines to be confidential) 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 findings 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 report of the Commis-
sion containing an affirmative determination 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 circumstances, 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 deter-
mine 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 economy 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 provide under this subtitle
with respect to imports of an article is—
(1) the suspension of any further reduction provided for
under the United States Schedule to Annex 2.1 of the Agree-
ment in the duty imposed on that article;
H. R. 2603—7
(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 imposed under
the HTS on like articles at the time the import relief
is provided; or
(B) the column 1 general rate of duty imposed 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 occurring 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 termination
and on or before December 31 of the year in which termination
occurs shall be the rate that, according to the United States
Schedule to Annex 2.1 of the Agreement for the staged elimi-
nation of the tariff, would have been in effect 1 year after
the initiation of the import relief action under section 211;
and
(2) the tariff treatment for that article after December
31 of the year in which termination occurs shall be, at the
discretion of the President, either—
(A) the rate of duty conforming to the applicable rate
set out in the United States Schedule to Annex 2.1; or
(B) the rate of duty resulting from the elimination
of the tariff in equal annual stages ending on the date
set out in the United States Schedule to Annex 2.1 for
the elimination of the tariff.
SEC. 214. TERMINATION OF RELIEF AUTHORITY.
(a) GENERAL RULE.—Except as provided in subsection (b), no
import relief may be provided under this subtitle after the date
that is 15 years after the date on which the Agreement enters
into force.
(b) EXCEPTION.—Import relief may be provided under this sub-
title in the case of a Jordanian article after the date on which
such relief would, but for this subsection, terminate under sub-
section (a), but only if the Government of Jordan consents to such
provision.
SEC. 215. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under
section 213 shall be treated as action taken under chapter 1 of
title II of such Act.
SEC. 216. SUBMISSION OF PETITIONS.
A petition for import relief may be submitted to the Commission
under—
(1) this subtitle;
(2) chapter 1 of title II of the Trade Act of 1974; or
H. R. 2603—8
(3) under both this subtitle and such chapter 1 at the
same time, in which case the Commission shall consider such
petitions jointly.
Subtitle C—Cases Under Title II of The
Trade Act of 1974
SEC. 221. FINDINGS AND ACTION ON JORDANIAN IMPORTS.
(a) EFFECT OF IMPORTS.—If, in any investigation initiated under
chapter 1 of title II of the Trade Act of 1974, the Commission
makes an affirmative determination (or a determination which the
President may treat as an affirmative determination under such
chapter by reason of section 330(d) of the Tariff Act of 1930),
the Commission shall also find (and report to the President at
the time such injury determination is submitted to the President)
whether imports of the article from Jordan are a substantial cause
of serious injury or threat thereof.
(b) PRESIDENTIAL ACTION REGARDING JORDANIAN IMPORTS.—
In determining the nature and extent of action to be taken under
chapter 1 of title II of the Trade Act of 1974, the President shall
determine whether imports from Jordan are a substantial cause
of the serious injury found by the Commission and, if such deter-
mination is in the negative, 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 considered as entitled to enter the United
States under and in pursuance of the provisions of the Agreement
as a nonimmigrant described in section 101(a)(15)(E) of the
Immigration 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.—
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(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi-
sion of the Agreement, nor the application of any such provision
to any person or circumstance, 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 cir-
cumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action brought
by the United States for the purpose of declaring such law
or application invalid.
(2) DEFINITION OF STATE LAW.—For purposes of this sub-
section, 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 PRIVATE REM-
EDIES.—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 provi-
sion 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 regulation 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 subsection (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.
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(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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.