duced in a country other than Haiti or any 
country described in subparagraph (C). 
‘‘(F) DEVELOPMENT
OF
PROCEDURE
TO 
ENSURE COMPLIANCE.— 
‘‘(i) IN
GENERAL.—The Bureau of 
Customs and Border Protection of the De-
partment of Homeland Security shall de-
velop and implement methods and proce-
dures to ensure ongoing compliance with 
the requirements set forth in subpara-
graphs (A) and (D). 
‘‘(ii) NONCOMPLIANCE.—If the Bu-
reau of Customs and Border Protection 
finds that a producer or an entity control-
ling production has not satisfied such re-
quirements in any applicable 1-year period, 
either for individual entries entered pursu-
ant to subparagraph (A) or for entries en-
tered in aggregate pursuant to subpara-
graph (D), then apparel articles described 
in subparagraph (A) of that producer or 
entity shall be ineligible for preferential 
treatment under paragraph (1) during any 
succeeding applicable 1-year period until— 
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‘‘(I) the cost or value of mate-
rials under clause (i) of subparagraph 
(A), plus 
‘‘(II) the direct costs of proc-
essing operations under clause (ii) of 
subparagraph (A), 
of that producer or entity controlling pro-
duction, is not less than the applicable per-
centage under subparagraph (E)(i), plus 
10 percent, of the aggregate declared cus-
toms value of all apparel articles of that 
producer or entity controlling production 
that are wholly assembled, or are knit-to- 
shape, in Haiti and are entered during the 
preceding applicable 1-year period. 
‘‘(iii) RETROACTIVE APPLICATION OF 
DUTY-FREE TREATMENT.—If— 
‘‘(I) a producer or an entity con-
trolling production is ineligible for 
preferential treatment under para-
graph (1) in an applicable 1-year pe-
riod because that producer or entity 
controlling production did not satisfy 
the requirements of subparagraph (A) 
or (D), and 
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‘‘(II) that producer or entity con-
trolling production satisfies the re-
quirements of clause (ii) of this sub-
paragraph in that applicable 1-year 
period, 
then, notwithstanding section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) or 
any other provision of law, upon proper re-
quest filed with the Bureau of Customs 
and Border Protection before the 90th day 
after the Bureau of Customs and Border 
Protection determines that subclause (II) 
applies, the entry of any articles— 
‘‘(aa) that was made during that 
applicable 1-year period, and 
‘‘(bb) with respect to which there 
would have been preferential treat-
ment under paragraph (1) if the pro-
ducer or entity controlling production 
had satisfied the requirements in sub-
paragraph (A) or (D) (as the case 
may be), 
shall be liquidated or reliquidated as 
though such preferential treatment under 
paragraph (1) applied to such entry. 
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‘‘(G) FABRICS
NOT
AVAILABLE
IN
COM-
MERCIAL QUANTITIES.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining 
the 
applicable 
percentage 
under subparagraph (A) or (D), there may 
be included in that percentage— 
‘‘(I) the cost of fabrics or yarns 
to the extent that apparel articles of 
such fabrics or yarns would be eligible 
for preferential treatment, without re-
gard to the source of the fabrics or 
yarns, under Annex 401 of the 
NAFTA; and 
‘‘(II) the cost of fabrics or yarns 
that are designated as not being avail-
able in commercial quantities for pur-
poses of— 
‘‘(aa) 
section 
213(b)(2)(A)(v) of this Act, 
‘‘(bb) section 112(b)(5) of 
the African Growth and Oppor-
tunity Act, 
‘‘(cc) 
section 
204(b)(3)(B)(i)(III) or (ii) of the 
Andean Trade Preference Act, or 
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‘‘(dd) any other provision, 
relating to determining whether a 
textile or apparel article is an 
originating good eligible for pref-
erential treatment, of a law that 
implements a free trade agree-
ment that enters into force under 
the Bipartisan Trade Promotion 
Authority Act of 2002, 
without regard to the source of the 
fabrics or yarns. 
‘‘(ii) REMOVAL OF DESIGNATION OF 
FABRICS
OR
YARNS
NOT
AVAILABLE
IN 
COMMERCIAL
QUANTITIES.—If the Presi-
dent determines that— 
‘‘(I) any fabric or yarn described 
in clause (i)(I) was determined to be 
eligible for preferential treatment, or 
‘‘(II) any fabric or yarn described 
in clause (i)(II) was designated as not 
being available in commercial quan-
tities, 
on the basis of fraud, the President is au-
thorized to remove the eligibility or des-
ignation (as the case may be) of that fab-
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ric or yarn with respect to articles entered 
after such removal. 
‘‘(3) QUANTITATIVE
LIMITATIONS.—The pref-
erential treatment described in paragraph (1) shall 
be extended, during each of the applicable 1-year pe-
riods set forth in the following table, to not more 
than the corresponding percentage of the aggregate 
square meter equivalents of all apparel articles im-
ported into the United States in the most recent 12- 
month period for which data are available: 
‘‘During the: 
the corresponding percent-
age is: 
‘‘initial applicable 1-year period .......................
1 percent. 
‘‘second applicable 1-year period ......................
1.25 percent. 
‘‘third applicable 1-year period .........................
1.5 percent. 
‘‘fourth applicable 1-year period .......................
1.75 percent. 
‘‘fifth applicable 1-year period ..........................
2 percent. 
No preferential treatment shall be provided under 
paragraph (1) after the last day of the fifth applica-
ble 1-year period. 
‘‘(4) SPECIAL RULE FOR WOVEN APPAREL.—In 
the case of apparel articles classifiable under chapter 
62 of the HTS (other than articles classifiable under 
subheading 6212.10 of the HTS), as in effect on the 
date of the enactment of the Haitian Hemispheric 
Opportunity through Partnership Encouragement 
Act of 2006, that do not qualify for preferential 
treatment under paragraph (1) because they do not 
meet the percentage requirements under paragraph 
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(2)(A), (2)(B), or (2)(D), the preferential treatment 
under paragraph (1)— 
‘‘(A) shall be extended, in addition to the 
quantities permitted under paragraph (3) to— 
‘‘(i) not more than 50,000,000 square 
meter equivalents of such apparel articles 
for the initial applicable 1-year period; 
‘‘(ii) 
not 
more 
than 
50,000,000 
square meter equivalents of such apparel 
articles for the second applicable 1-year pe-
riod; and 
‘‘(iii) not more than 33,500,000 
square meter equivalents for the third ap-
plicable 1-year period; and 
‘‘(B) may not be extended to such apparel 
articles after the last day of the third applicable 
1-year period. 
‘‘(5) SPECIAL
RULE
FOR
BRASSIERES.—The 
preferential treatment under paragraph (1) shall, 
subject to the limitations under paragraph (3), be 
extended to any article classifiable under heading 
6212.10 of the HTS, if the article is both cut and 
sewn or otherwise assembled in Haiti or the United 
States, or both, without regard to the source of the 
fabric or components from which the article is made, 
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and if Haiti has met the requirements of subsections 
(d) and (e). 
‘‘(c) SPECIAL RULE FOR CERTAIN WIRE HARNESS 
AUTOMOTIVE COMPONENTS.— 
(1) IN GENERAL.—Any wire harness automotive 
component that is the product or manufacture of 
Haiti and is imported directly from Haiti into the 
customs territory of the United States shall enter 
the United States free of duty, during the 5-year pe-
riod beginning on the date of the enactment of the 
Haitian Hemispheric Opportunity through Partner-
ship Encouragement Act of 2006, if Haiti has met 
the requirements of subsection (d) and if the sum 
of— 
‘‘(A) the cost or value of the materials pro-
duced in Haiti or one or more countries de-
scribed in subsection (b)(2)(C), or any combina-
tion thereof, plus 
‘‘(B) the direct costs of processing oper-
ations (as defined in section 213(a)(3)) per-
formed in Haiti or the United States, or both, 
is not less than 50 percent of the declared customs 
value of such wire harness automotive component. 
‘‘(2) WIRE
HARNESS
AUTOMOTIVE
COMPO-
NENT.—For purposes of this subsection, the term 
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‘‘wire harness automotive component’’ means any ar-
ticle provided for in subheading 8544.30.00 of the 
HTS, as in effect on the date of the enactment of 
the Haitian Hemispheric Opportunity through Part-
nership Encouragement Act of 2006. 
‘‘(d) ELIGIBILITY REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Haiti shall be eligible for 
preferential treatment under this section if the 
President determines and certifies to Congress that 
Haiti— 
‘‘(A) has established, or is making con-
tinual progress toward establishing— 
‘‘(i) a market-based economy that pro-
tects private property rights, incorporates 
an open rules-based trading system, and 
minimizes government interference in the 
economy through measures such as price 
controls, subsidies, and government owner-
ship of economic assets; 
‘‘(ii) the rule of law, political plu-
ralism, and the right to due process, a fair 
trial, and equal protection under the law; 
‘‘(iii) the elimination of barriers to 
United States trade and investment, in-
cluding by— 
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‘‘(I) the provision of national 
treatment and measures to create an 
environment conducive to domestic 
and foreign investment; 
‘‘(II) the protection of intellectual 
property; and 
‘‘(III) the resolution of bilateral 
trade and investment disputes; 
‘‘(iv) economic policies to reduce pov-
erty, increase the availability of health care 
and 
educational 
opportunities, 
expand 
physical infrastructure, promote the devel-
opment of private enterprise, and encour-
age the formation of capital markets 
through microcredit or other programs; 
‘‘(v) a system to combat corruption 
and bribery, such as signing and imple-
menting the Convention on Combating 
Bribery of Foreign Public Officials in 
International Business Transactions; and 
‘‘(vi) protection of internationally rec-
ognized worker rights, including the right 
of association, the right to organize and 
bargain collectively, a prohibition on the 
use of any form of forced or compulsory 
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labor, a minimum age for the employment 
of children, and acceptable conditions of 
work with respect to minimum wages, 
hours of work, and occupational safety and 
health; 
‘‘(B) does not engage in activities that un-
dermine United States national security or for-
eign policy interests; and 
‘‘(C) does not engage in gross violations of 
internationally recognized human rights or pro-
vide support for acts of international terrorism 
and cooperates in international efforts to elimi-
nate human rights violations and terrorist ac-
tivities. 
‘‘(2) TIME LIMIT FOR DETERMINATION..—The 
President shall determine whether Haiti meets the 
requirements of paragraph (1) not later than 90 
days after the date of the enactment of the Haitian 
Hemispheric Opportunity through Partnership En-
couragement Act of 2006. 
‘‘(3) CONTINUING COMPLIANCE.—If the Presi-
dent determines that Haiti is not making continual 
progress in meeting the requirements described in 
paragraph (1)(A), the President shall terminate the 
preferential treatment under this section. 
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‘‘(e) CONDITIONS REGARDING ENFORCEMENT
OF 
CIRCUMVENTION.— 
‘‘(1) IN GENERAL.—The preferential treatment 
under subsection (b)(1) shall not apply unless the 
President certifies to Congress that Haiti is meeting 
the following conditions: 
‘‘(A) Haiti has adopted an effective visa 
system, domestic laws, and enforcement proce-
dures applicable to articles described in sub-
section (b) to prevent unlawful transshipment 
of the articles and the use of counterfeit docu-
ments relating to the importation of the articles 
into the United States. 
‘‘(B) Haiti has enacted legislation or pro-
mulgated regulations that would permit the Bu-
reau of Customs and Border Protection 
verification teams to have the access necessary 
to investigate thoroughly allegations of trans-
shipment through such country. 
‘‘(C) Haiti agrees to report, on a timely 
basis, at the request of the Bureau of Customs 
and Border Protection, on the total exports 
from and imports into that country of articles 
described in subsection (b), consistent with the 
manner in which the records are kept by Haiti. 
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‘‘(D) Haiti agrees to cooperate fully with 
the United States to address and take action 
necessary to prevent circumvention as provided 
in Article 5 of the Agreement on Textiles and 
Clothing. 
‘‘(E) Haiti agrees to require all producers 
and exporters of articles described in subsection 
(b) in that country to maintain complete 
records of the production and the export of 
such articles, including materials used in the 
production, for at least 5 years after the pro-
duction or export (as the case may be). 
‘‘(F) Haiti agrees to report, on a timely 
basis, at the request of the Bureau of Customs 
and Border Protection, documentation estab-
lishing the country of origin of articles de-
scribed in subsection (b) as used by that coun-
try in implementing an effective visa system. 
‘‘(2) DEFINITION OF TRANSSHIPMENT.—Trans-
shipment within the meaning of this subsection has 
occurred when preferential treatment for a textile or 
apparel article under this section has been claimed 
on the basis of material false information concerning 
the country of origin, manufacture, processing, or 
assembly of the article or any of its components. For 
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