(4) The Philippines agrees to provide, on a 
timely basis at the request of U.S. Customs and 
Border Protection, and consistently with the manner 
in which the records are kept in the Philippines, a 
report on exports from the Philippines of apparel ar-
ticles eligible for preferential treatment under this 
section, and on imports into the Philippines of 
yarns, fabrics, fabric components, or components 
knit-to-shape that are wholly formed in the United 
States. 
(5) The Philippines 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 
referred to in section 101(d)(4) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(4)). 
(6) The Philippines agrees to require Phil-
ippines producers and exporters of articles eligible 
for preferential treatment under this section to 
maintain, for at least 5 years after the date of ex-
port, complete records of the production and the ex-
port of such articles, including records of yarns, fab-
rics, fabric components, and components knit-to- 
shape and used in the production of such articles. 
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(7) The Philippines agrees to provide, on a 
timely basis, at the request of U.S. Customs and 
Border Protection, documentation establishing the 
country of origin of articles eligible for preferential 
treatment under this section, as used by that coun-
try in implementing an effective visa system. 
(8) The Philippines is to establish, within 60 
days after the date of the President’s certification 
under this paragraph, procedures that allow the Of-
fice of Textiles and Apparel of the Department of 
Commerce (OTEXA) to obtain information when 
fabric wholly formed in the United States is ex-
ported to the Philippines to allow for monitoring and 
verification before the imports of apparel articles 
containing the fabric for which preferential treat-
ment is sought under this section reach the United 
States. The information provided upon export of the 
fabrics shall include, among other things, the name 
of the importer of the fabric in the Philippines, the 
8-digit HTS subheading covering the apparel articles 
to be made from the fabric, and the quantity of the 
apparel articles to be made from the fabric for im-
portation into the United States. 
(9) The Philippines has enacted legislation or 
promulgated regulations to allow for the seizure of 
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merchandise physically transiting the territory of the 
Philippines and that appears to be destined for the 
United States in circumvention of the provisions of 
this Act. 
(h) CUSTOMS PROCEDURES.— 
(1) IN GENERAL.— 
(A) PENALTIES FOR EXPORTERS.—If the 
President determines, based on sufficient evi-
dence, that an exporter has engaged in trans-
shipments as defined in paragraph (2), then the 
President shall deny for a period of 5 years all 
benefits under this section to such exporter, any 
successor of such exporter, and any other entity 
owned or operated by the principal of the ex-
porter. 
(B) PENALTIES FOR IMPORTERS.—If the 
President determines, based on sufficient evi-
dence, that an importer has engaged in trans-
shipments as defined in paragraph (2), then the 
President shall deny for a period of 5 years all 
benefits under this section to such importer, 
any successor of such importer, or any entity 
owned or operated by the principal of the im-
porter. 
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(2) DEFINITION OF TRANSHIPMENT.—For pur-
poses of paragraph (1) and subsection (g), trans-
shipment has occurred when preferential treatment 
for an apparel article under this section has been 
claimed on the basis of material false information 
concerning the country of origin, manufacture, proc-
essing, cutting, or assembly of the article or of any 
fabric, fabric component, or component knit-to-shape 
from which the apparel article was cut and assem-
bled. For purposes of this paragraph, false informa-
tion is material if disclosure of the true information 
would have meant that the article is or was ineligible 
for preferential treatment under this section. 
(i) PROCLAMATION
AUTHORITY.—The President 
shall issue a proclamation to carry out this section not 
later than 60 days after the date of the enactment of this 
Act. The President shall consult with the Committee on 
Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives in preparing such 
proclamation. 
SEC. 5. EFFECTIVE DATE. 
This Act shall apply to articles entered, or withdrawn 
from warehouse for consumption, on or after the 15th day 
after the date on which the President issues the proclama-
tion required by section 4(i). 
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SEC. 6. TERMINATION. 
(a) IN GENERAL.—The preferential duty treatment 
provided under this Act shall remain in effect for a period 
of 7 years beginning on the effective date provided for in 
section 5. 
(b) GSP ELIGIBILITY.—The preferential duty treat-
ment provided under this Act shall terminate if and when 
the Philippines becomes ineligible for designation as a ben-
eficiary developing country under title V of the Trade Act 
of 1974 (19 U.S.C. 2461 et seq.). 
Æ 
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