‘‘(F) FIFTH
APPLICABLE
1-YEAR
PE-
RIOD.—The term ‘fifth applicable 1-year period’ 
means 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 en-
tity 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, 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
components knit-to-shape, and yarns, only if, 
for each entry in the applicable 1-year period, 
the sum of— 
‘‘(i) the cost or value of the materials 
produced in Haiti or one or more countries 
described in subparagraph (C), or any 
combination thereof, plus 
‘‘(ii) the direct costs of processing op-
erations (as defined in section 213(a)(3)) 
performed in Haiti or one or more coun-
tries described in subparagraph (C), or any 
combination thereof, 
is not less than the applicable percentage (as 
defined 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). 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
‘‘(C) COUNTRIES DESCRIBED.—The coun-
tries referred to in subparagraph (A) are the 
following: 
‘‘(i) The United States. 
‘‘(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 Op-
portunity through Partnership Encourage-
ment Act of 2006, or that enters into force 
under the Bipartisan Trade Promotion Au-
thority 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 
beneficiary 
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 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
Growth and Opportunity Act (19 U.S.C. 
3722). 
‘‘(v) Any country designated as a ben-
eficiary 
country 
under 
section 
204(b)(6)(B) of the Andean Trade Pref-
erence Act (19 U.S.C. 3203(b)(6)(B)). 
‘‘(D) ANNUAL AGGREGATION.— 
‘‘(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 mate-
rials under clause (i) of subparagraph 
(A), and 
‘‘(II) the direct costs of proc-
essing operations under clause (ii) of 
subparagraph (A), 
of all apparel articles of that producer or 
entity controlling production that are whol-
ly assembled, or are knit-to-shape, in Haiti 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
and are entered during the initial applica-
ble 1-year period. 
‘‘(ii) OTHER APPLICABLE 1-YEAR PE-
RIODS.—In each of the second, third, 
fourth, and fifth applicable 1-year periods, 
the requirements under subparagraph (A) 
relating to applicable percentage may also 
be met for articles of a producer or an en-
tity controlling production that enter dur-
ing the applicable 1-year period by aggre-
gating— 
‘‘(I) the cost or value of mate-
rials under clause (i) of subparagraph 
(A), and 
‘‘(II) the direct costs of proc-
essing operations under clause (ii) of 
subparagraph (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 ap-
plicable 1-year period. 
‘‘(iii) DEDUCTIONS.—In calculating 
cost or value under clause (i)(I) or (ii)(I), 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
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 ma-
terials described in clause (i)(I) or 
(ii)(I) (as the case may be). 
‘‘(iv) INCLUSION IN CALCULATION OF 
OTHER
ARTICLES
RECEIVING
PREF-
ERENTIAL TREATMENT.—(I) The entry of 
a woven apparel article receiving pref-
erential treatment 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 calcula-
tion is made, to include such entries in 
such aggregation. 
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS
‘‘(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 in-
cluded in an annual aggregation under 
clause (i) or (ii) unless the producer or en-
tity controlling production elects, at the 
time the annual aggregation calculation is 
made, to include such entries in such ag-
gregation. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(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-
VerDate Aug 31 2005 
02:19 Dec 06, 2006
Jkt 059200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H6346.ATH
H6346
hmoore on PROD1PC68 with HMBILLS