518
nization, a prohibited subsidy to its textile or 
apparel industry. 
(2) LIMITATIONS DESCRIBED.—The quantitative 
limitations referred to in paragraph (1) are those 
quantitative limitations that were in effect under the 
Bilateral Textile Agreement during the most recent 
full calendar year in which the Bilateral Textile 
Agreement was in effect. 
(c) DETERMINATION OF COMPLIANCE.—If, after im-
posing quantitative limitations under subsection (b) be-
cause of a prohibited subsidy, the Trade Representative de-
termines that the Government of Vietnam is not providing, 
on or after the date on which Vietnam accedes to the World 
Trade Organization, a prohibited subsidy to its textile or 
apparel industry, the quantitative limitations shall cease 
to be effective on the date on which that determination is 
made. 
SEC. 4007. DEFINITIONS. 
In this title: 
(1) BILATERAL TEXTILE AGREEMENT.—The term 
‘‘Bilateral Textile Agreement’’ means the Agreement 
Relating to Trade in Cotton, Wool, Man-Made Fiber, 
Non-Cotton Vegetable Fiber and Silk Blend Textiles 
and Textile Products Between the Governments of the
519
United States of America and the Socialist Republic 
of Vietnam, entered into on July 17, 2003. 
(2) DISPUTE
SETTLEMENT
UNDERSTANDING.—
The term ‘‘Dispute Settlement Understanding’’ means 
the Understanding on Rules and Procedures Gov-
erning the Settlement of Disputes referred to in sec-
tion 101(d)(16) of the Uruguay Round Agreements 
Act (19 U.S.C. 3511(d)(16)). 
(3) INTERESTED PERSON.—The term ‘‘interested 
person’’ includes, but is not limited to, domestic firms 
and workers, representatives of consumer interests, 
United States product exporters, and any industrial 
user of any goods or services that may be affected by 
action taken under section 4006(b). 
(4) PROHIBITED SUBSIDY.—
(A) IN
GENERAL.—The term ‘‘prohibited 
subsidy’’ means a subsidy described in article 
3.1 of the Agreement on Subsidies and Counter-
vailing Measures. 
(B) SUBSIDY.—The term ‘‘subsidy’’ means 
a subsidy within the meaning of article 1.1 of 
the Agreement on Subsidies and Countervailing 
Measures. 
(C) AGREEMENT ON SUBSIDIES AND COUN-
TERVAILING MEASURES.—The term ‘‘Agreement
520
on Subsidies and Countervailing Measures’’ 
means the Agreement on Subsidies and Counter-
vailing 
Measures 
referred 
to 
in 
section 
101(d)(12) of the Uruguay Round Agreements 
Act (19 U.S.C. 3511(d)(12)). 
(5) TEXTILE OR APPAREL PRODUCT.—The term 
‘‘textile or apparel product’’ means a good listed in 
the Annex to 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)). 
(6) TRADE REPRESENTATIVE.—The term ‘‘Trade 
Representative’’ means the United States Trade Rep-
resentative.
TITLE V—HAITI 
SEC. 5001. SHORT TITLE. 
This title may be cited as the ‘‘Haitian Hemispheric 
Opportunity through Partnership Encouragement Act of 
2006’’ . 
SEC. 5002. TRADE BENEFITS FOR HAITI. 
(a) IN GENERAL.—The Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2701 et seq.) is amended by insert-
ing after section 213 the following new section: 
‘‘SEC. 213A. SPECIAL RULES FOR HAITI. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) APPLICABLE 1-YEAR PERIOD.—
521
‘‘(A) IN GENERAL.—The term ‘‘applicable 
1-year period’’ means each of the 1-year periods 
described in subparagraphs (B) through (F). 
‘‘(B) INITIAL
APPLICABLE
1-YEAR
PE-
RIOD.—The term ‘initial applicable 1-year pe-
riod’ means the 1-year period beginning on the 
date of the enactment of the Haitian Hemi-
spheric Opportunity through Partnership En-
couragement Act of 2006. 
‘‘(C) SECOND
APPLICABLE
1-YEAR
PE-
RIOD.—The term ‘second applicable 1-year pe-
riod’ means the 1-year period beginning on the 
day after the last day of the initial applicable 1-
year period. 
‘‘(D) THIRD APPLICABLE 1-YEAR PERIOD.—
The term ‘third applicable 1-year period’ means 
the 1-year period beginning on the day after the 
last day of the second applicable 1-year period. 
‘‘(E) FOURTH
APPLICABLE
1-YEAR
PE-
RIOD.—The term ‘fourth applicable 1-year pe-
riod’ means the 1-year period beginning on the 
day after the last day of the third applicable 1-
year period. 
‘‘(F) FIFTH APPLICABLE 1-YEAR PERIOD.—
The term ‘fifth applicable 1-year period’ means
522
the 1-year period beginning on the day after the 
last day of the fourth applicable 1-year period. 
‘‘(2) ENTER; ENTRY.—The terms ‘enter’ and 
‘entry’ refer to the entry, or withdrawal from ware-
house for consumption, in the customs territory of the 
United States. 
‘‘(b) APPAREL ARTICLES.—
‘‘(1) IN
GENERAL.—In addition to any other 
preferential treatment under this title, apparel arti-
cles described in paragraph (2) of a producer or enti-
ty controlling production that are imported directly 
from Haiti shall enter the United States free of duty 
during an applicable 1-year period, subject to the 
limitations set forth in paragraphs (2) and (3), if 
Haiti has met the requirements of subsections (d) and 
(e). 
‘‘(2) APPAREL ARTICLES DESCRIBED.—
‘‘(A) IN GENERAL.—In any applicable 1-
year period, apparel articles described in this 
paragraph are apparel articles that are wholly 
assembled, or are knit-to-shape, in Haiti from 
any combination of fabrics, fabric components, 
components knit-to-shape, and yarns, only if, for 
each entry in the applicable 1-year period, the 
sum of—
523
‘‘(i) the cost or value of the materials 
produced in Haiti or one or more countries 
described in subparagraph (C), or any com-
bination thereof, plus 
‘‘(ii) the direct costs of processing oper-
ations (as defined in section 213(a)(3)) per-
formed in Haiti or one or more countries 
described in subparagraph (C), or any com-
bination thereof, 
is not less than the applicable percentage (as de-
fined in subparagraph (E)(i)) of the declared 
customs value of such apparel articles. 
‘‘(B) DEDUCTIONS.—In calculating cost or 
value under subparagraph (A)(i), there shall be 
deducted the cost or value of—
‘‘(i) any foreign materials that are 
used in the production of the apparel arti-
cles in Haiti; and 
‘‘(ii) any foreign materials that are 
used in the production of the materials de-
scribed in subparagraph (A)(i). 
‘‘(C) COUNTRIES
DESCRIBED.—The coun-
tries referred to in subparagraph (A) are the fol-
lowing: 
‘‘(i) The United States.
524
‘‘(ii) Any country that is a party to a 
free trade agreement with the United States 
that is in effect on the date of the enactment 
of the Haitian Hemispheric Opportunity 
through Partnership Encouragement Act of 
2006, or that enters into force under the Bi-
partisan Trade Promotion Authority Act of 
2002 (19 U.S.C. 3801 et seq.). 
‘‘(iii) Any country designated as a 
beneficiary 
country 
under 
section 
213(b)(5)(B) of this Act. 
‘‘(iv) Any country designated as a ben-
eficiary country under section 506A(a)(1) of 
the 
Trade 
Act 
of 
1974 
(19 
U.S.C. 
2466a(a)(1)), if a finding has been made by 
the President or the President’s designee, 
and published in the Federal Register, that 
the country has satisfied the requirements of 
section 113 of the African Growth and Op-
portunity Act (19 U.S.C. 3722). 
‘‘(v) Any country designated as a bene-
ficiary country under section 204(b)(6)(B) 
of the Andean Trade Preference Act (19 
U.S.C. 3203(b)(6)(B)). 
‘‘(D) ANNUAL AGGREGATION.—
525
‘‘(i) INITIAL APPLICABLE 1-YEAR PE-
RIOD.—In the initial applicable 1-year pe-
riod, the requirements under subparagraph 
(A) relating to applicable percentage may 
also be met for articles of a producer or an 
entity controlling production that enter 
during the initial applicable 1-year period 
by aggregating—
‘‘(I) the cost or value of materials 
under clause (i) of subparagraph (A), 
and 
‘‘(II) the direct costs of processing 
operations under clause (ii) of sub-
paragraph (A), 
of all apparel articles of that producer or 
entity controlling production that are whol-
ly assembled, or are knit-to-shape, in Haiti 
and are entered during the initial applica-
ble 1-year period. 
‘‘(ii) OTHER APPLICABLE 1-YEAR PERI-
ODS.—In each of the second, third, fourth, 
and fifth applicable 1-year periods, the re-
quirements under subparagraph (A) relat-
ing to applicable percentage may also be 
met for articles of a producer or an entity
526
controlling production that enter during the 
applicable 1-year period by aggregating—
‘‘(I) the cost or value of materials 
under clause (i) of subparagraph (A), 
and 
‘‘(II) the direct costs of processing 
operations under clause (ii) of sub-
paragraph (A), 
of all apparel articles of that producer or 
entity controlling production that are whol-
ly assembled, or are knit-to-shape, in Haiti 
and are entered during the preceding appli-
cable 1-year period. 
‘‘(iii) DEDUCTIONS.—In calculating 
cost or value under clause (i)(I) or (ii)(I), 
there shall be deducted the cost or value of—
‘‘(I) any foreign materials that 
are used in the production of the ap-
parel articles in Haiti; and 
‘‘(II) any foreign materials that 
are used in the production of the mate-
rials described in clause (i)(I) or 
(ii)(I) (as the case may be). 
‘‘(iv) INCLUSION IN CALCULATION OF 
OTHER ARTICLES RECEIVING PREFERENTIAL
527
TREATMENT.—(I) The entry of a woven ap-
parel article receiving preferential treat-
ment under paragraph (4) is not included 
in an annual aggregation under clause (i) 
or (ii). 
‘‘(II) Entries of articles receiving pref-
erential treatment under paragraph (5) are 
not included in an annual aggregation 
under clause (i) or (ii) unless the producer 
or entity controlling production elects, at 
the time the annual aggregation calculation 
is made, to include such entries in such ag-
gregation. 
‘‘(III) Entries of apparel articles that 
receive preferential treatment under any 
provision of law other than this subsection 
or are subject to the ‘General’ column 1 rate 
of duty under the HTS are not included in 
an annual aggregation under clause (i) or 
(ii) unless the producer or entity controlling 
production elects, at the time the annual ag-
gregation calculation is made, to include 
such entries in such aggregation. 
‘‘(E) DEFINITIONS.—In this paragraph:
528
‘‘(i) APPLICABLE
PERCENTAGE.—The 
term ‘‘applicable percentage’’ means—
‘‘(I) 50 percent or more during 
the initial applicable 1-year period, the 
second applicable 1-year period, and 
the third applicable 1-year period; 
‘‘(II) 55 percent or more during 
the fourth applicable 1-year period; 
and 
‘‘(III) 60 percent or more during 
the fifth applicable 1-year period. 
‘‘(ii) FOREIGN
MATERIAL.—The term 
‘foreign material’ means a material pro-
duced in a country other than Haiti or any 
country described in subparagraph (C). 
‘‘(F) DEVELOPMENT OF PROCEDURE TO EN-
SURE COMPLIANCE.—
‘‘(i) IN GENERAL.—The Bureau of Cus-
toms and Border Protection of the Depart-
ment of Homeland Security shall develop 
and implement methods and procedures to 
ensure ongoing compliance with the require-
ments set forth in subparagraphs (A) and 
(D).
529
‘‘(ii) NONCOMPLIANCE.—If the Bureau 
of Customs and Border Protection finds 
that a producer or an entity controlling 
production has not satisfied such require-
ments in any applicable 1-year period, ei-
ther for individual entries entered pursuant 
to subparagraph (A) or for entries entered 
in aggregate pursuant to subparagraph (D), 
then apparel articles described in subpara-
graph (A) of that producer or entity shall be 
ineligible for preferential treatment under 
paragraph (1) during any succeeding appli-
cable 1-year period until—
‘‘(I) the cost or value of materials 
under clause (i) of subparagraph (A), 
plus 
‘‘(II) the direct costs of processing 
operations under clause (ii) of sub-
paragraph (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 customs 
value of all apparel articles of that producer 
or entity controlling production that are
530
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 
‘‘(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 request 
filed with the Bureau of Customs and Bor-
der Protection before the 90th day after the 
Bureau of Customs and Border Protection
531
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 treatment 
under paragraph (1) if the producer or 
entity controlling production had satis-
fied the requirements in subparagraph 
(A) or (D) (as the case may be), 
shall be liquidated or reliquidated as though 
such preferential treatment under para-
graph (1) applied to such entry. 
‘‘(G) FABRICS NOT AVAILABLE IN COMMER-
CIAL QUANTITIES.—
‘‘(i) IN GENERAL.—For purposes of de-
termining the applicable percentage under 
subparagraph (A) or (D), there may be in-
cluded 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 regard 
to the source of the fabrics or yarns, 
under Annex 401 of the NAFTA; and
532
‘‘(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 Opportunity 
Act, 
‘‘(cc) 
section 
204(b)(3)(B)(i)(III) or (ii) of the 
Andean Trade Preference Act, or 
‘‘(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 agreement 
that enters into force under the 
Bipartisan Trade Promotion Au-
thority Act of 2002, 
without regard to the source of the fab-
rics or yarns. 
‘‘(ii) REMOVAL
OF
DESIGNATION
OF 
FABRICS OR YARNS NOT AVAILABLE IN COM-
533
MERCIAL QUANTITIES.—If the President de-
termines 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 designa-
tion (as the case may be) of that fabric 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 periods 
set forth in the following table, to not more than the 
corresponding percentage of the aggregate square 
meter equivalents of all apparel articles imported into 
the United States in the most recent 12-month period 
for which data are available:
‘‘During the: 
the corresponding percentage 
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.
534
No preferential treatment shall be provided under 
paragraph (1) after the last day of the fifth applicable 
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 (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 period; and 
‘‘(iii) not more than 33,500,000 square 
meter equivalents for the third applicable 1-
year period; and