(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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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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