by the competent authority of such
country; and
‘‘(iii) no quantitative restriction or
consultation level may be applied to the
importation into the United States of any
textile or apparel article that—
‘‘(I) originates in the territory of
a partnership country, or
‘‘(II) qualifies for duty-free treat-
ment under subclause (I), (II), (III),
(IV), or (V) of clause (ii).
‘‘(B) TRANSITION PERIOD TREATMENT OF
OTHER
NONORIGINATING
TEXTILE
AND
AP-
PAREL ARTICLES.—
‘‘(i) PREFERENTIAL
TARIFF
TREAT-
MENT.—Subject to clause (ii), the Presi-
dent may place in effect at any time dur-
ing the transition period with respect to
any textile or apparel article that—
‘‘(I) is a product of a partnership
country, but
‘‘(II) does not qualify as a good
that originates in the territory of a
partnership country or is eligible for
benefits under subparagraph (A)(ii),
tariff treatment that is identical to the in-
preference-level tariff treatment accorded
at such time under Appendix 6.B of the
Annex to an article described in the same
8-digit subheading of the HTS that is a
product of Mexico and is imported into the
United States. For purposes of this clause,
the ‘in-preference-level tariff treatment’ ac-
corded to an article that is a product of
Mexico is the rate of duty applied to that
article when imported in quantities less
than or equal to the quantities specified in
Schedule 6.B.1, 6.B.2., or 6.B.3. of the
Annex for imports of that article from
Mexico into the United States.
‘‘(ii) LIMITATIONS
ON
ALL
ARTI-
CLES.—(I) Tariff treatment under clause
(i) may be extended, during any calendar
year, to not more than 45,000,000 square
meter equivalents of cotton or man-made
fiber apparel, to not more than 1,500,000
square meter equivalents of wool apparel,
and to not more than 25,000,000 square
meter equivalents of goods entered under
subheading 9802.00.80 of the HTS.
‘‘(II) Except as provided in subclause
(III), the amounts set forth in subclause
(I) shall be allocated among the 7 partner-
ship countries with the largest volume of
exports to the United States of textile and
apparel goods in calendar year 1997, based
upon a pro rata share of the volume of tex-
tile and apparel goods of each of those 7
countries that entered the United States
under subheading 9802.00.80 of the HTS
during the first 12 months of the 14-
month period ending on the date of the en-
actment of the United States-Caribbean
Trade Partnership Act.
‘‘(III) Five percent of the amounts set
forth in subclause (I) shall be allocated
among the partnership countries, other
than those to which subclause (II) applies,
based upon a pro rata share of the exports
to the United States of textile and apparel
goods of each of those countries during the
first 12 months of the 14-month period
ending on the date of the enactment of the
United States-Caribbean Trade Partner-
ship Act.
‘‘(iii) 
PRIOR
CONSULTATION.—The
President may implement the preferential
tariff treatment described in clause (i) only
after consultation with representatives of
the United States textile and apparel in-
dustry 
and 
other 
interested 
parties
regarding—
‘‘(I) the specific articles to which
such treatment will be extended,
‘‘(II) the annual quantities of
such articles that may be imported at
the preferential duty rates described
in clause (i), and
‘‘(III) the allocation of such an-
nual quantities among partnership
countries.
‘‘(C) 
HANDLOOMED, 
HANDMADE, 
AND
FOLKLORE
ARTICLES.—For purposes of sub-
paragraph (A)(ii)(V), the Trade Representative
shall consult with representatives of a partner-
ship country for the purpose of identifying par-
ticular textile and apparel goods that are mutu-
ally agreed upon as being handloomed, hand-
made, or folklore goods of a kind described in
section 2.3 (a), (b), or (c) or Appendix 3.1.B.11
of the Annex.
‘‘(D) BILATERAL EMERGENCY ACTIONS.—
(i) The President may take—
‘‘(I) bilateral emergency tariff actions
of a kind described in section 4 of the
Annex with respect to any textile or ap-
parel article imported from a partnership
country if the application of tariff treat-
ment under subparagraph (A) to such arti-
cle results in conditions that would be
cause for the taking of such actions under
such section 4 with respect to an article
described in the same 8-digit subheading
of the HTS that is imported from Mexico;
or
‘‘(II) bilateral emergency quantitative
restriction actions of a kind described in
section 5 of the Annex with respect to im-
ports of any textile or apparel article de-
scribed in subparagraphs (B)(i) (I) and
(II) if the importation of such article into
the United States results in conditions that
would be cause for the taking of such ac-
tions under such section 5 with respect to
a like article that is a product of Mexico.
‘‘(ii) The requirement in paragraph (5) of
section 4 of the Annex (relating to providing
compensation) shall not be deemed to apply to
a bilateral emergency action taken under this
subparagraph.
‘‘(iii) For purposes of applying bilateral
emergency action under this subparagraph—
‘‘(I) the term ‘transition period’ in
sections 4 and 5 of the Annex shall be
deemed to be the period defined in para-
graph (5)(E); and
‘‘(II) any requirements to consult
specified in section 4 or 5 of the Annex are
deemed to be satisfied if the President re-
quests consultations with the partnership
country in question and the country does
not agree to consult within the time period
specified under such section 4 or 5, which-
ever is applicable.
‘‘(3) NAFTA TRANSITION PERIOD TREATMENT
OF CERTAIN OTHER ARTICLES ORIGINATING IN BEN-
EFICIARY COUNTRIES.—
‘‘(A) EQUIVALENT TARIFF TREATMENT.—
duty shall be applied for the purposes of imple-
menting such action.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential tariff treatment
under paragraph (2) or (3) shall comply
with customs procedures similar in all ma-
terial respects to the requirements of Arti-
cle 502(1) of the NAFTA as implemented
pursuant to United States law, in accord-
ance with regulations promulgated by the
Secretary of the Treasury.
‘‘(ii) DETERMINATION.—In order to
qualify for such preferential tariff treat-
ment and for a Certificate of Origin to be
valid with respect to any article for which
such treatment is claimed, there shall be in
effect a determination by the President
that—
‘‘(I) 
the 
partnership 
country
from which the article is exported,
and
‘‘(II) each partnership country in
which materials used in the produc-
tion of the article originate or undergo
production that contributes to a claim
that the article qualifies for such pref-
erential tariff treatment,
has implemented and follows, or is making
substantial progress toward implementing
and following, procedures and require-
ments similar in all material respects to
the relevant procedures and requirements
under chapter 5 of the NAFTA.
‘‘(B) CERTIFICATE OF ORIGIN.—The Cer-
tificate of Origin that otherwise would be re-
quired pursuant to the provisions of subpara-
graph (A) shall not be required in the case of
an article imported under paragraph (2) or (3)
if such Certificate of Origin would not be re-
quired under Article 503 of the NAFTA (as im-
plemented pursuant to United States law), if
the article were imported from Mexico.
‘‘(C) PENALTIES FOR TRANSSHIPMENTS.—
If the President determines, based on sufficient
evidence, that an exporter has engaged in will-
ful illegal transshipment or willful customs
fraud with respect to textile or apparel articles
for which preferential tariff treatment under
subparagraph (A) or (B) of paragraph (2) is
claimed, then the President shall deny all bene-
fits under this title to such exporter, and any
successors of such exporter, for a period of 2
years.
‘‘(D) REPORT BY USTR ON COOPERATION
OF
OTHER
COUNTRIES
CONCERNING
CIR-
CUMVENTION.—The United States Commis-
sioner of Customs shall conduct a study analyz-
ing the extent to which each partnership
country—
‘‘(i) has cooperated fully with the
United States, consistent with its domestic
laws and procedures, in instances of cir-
cumvention or alleged circumvention of ex-
isting quotas on imports of textile and ap-
parel goods, to establish necessary relevant
facts in the places of import, export, and,
where applicable, transshipment, including
investigation of circumvention practices,
exchanges of documents, correspondence,
reports, and other relevant information, to
the extent such information is available;
‘‘(ii) has taken appropriate measures,
consistent with its domestic laws and pro-
cedures, against exporters and importers
involved in instances of false declaration
concerning fiber content, quantities, de-
scription, classification, or origin of textile
and apparel goods; and
‘‘(iii) has penalized the individuals
and entities involved in any such cir-
cumvention, consistent with its domestic
laws and procedures, and has worked
closely to seek the cooperation of any third
country to prevent such circumvention
from taking place in that third country.
The Trade Representative shall submit to the
Congress, not later than October 1, 1999, a re-
port on the study conducted under this sub-
paragraph.
‘‘(5) DEFINITIONS.—For purposes of this
subsection—
‘‘(A) The term ‘the Annex’ means Annex
300–B of the NAFTA.
‘‘(B) The term ‘NAFTA’ means the North
American Free Trade Agreement entered into
between the United States, Mexico, and Canada
on December 17, 1992.
‘‘(C) The term ‘partnership country’
means a beneficiary country.
‘‘(D) The term ‘textile or apparel article’
means any article referred to in paragraph
(1)(A) that is a good listed in Appendix 1.1 of
the Annex.
‘‘(E) The term ‘transition period’ means,
with respect to a partnership country, the pe-
riod that begins on the date of the enactment
of the United States-Caribbean Trade Partner-
ship Act and ends on the earlier of—
‘‘(i) the date that is 5 years after such
date of enactment; or
‘‘(ii) the date on which—
‘‘(I) the United States first ap-
plies the NAFTA to the partnership
country upon its accession to the
NAFTA, or
‘‘(II) there enters into force with
respect to the United States and the
partnership country a free trade
agreement comparable to the NAFTA
that makes substantial progress in
achieving the negotiating objectives
set forth in section 108(b)(5) of the
North American Free Trade Agree-
ment Implementation Act (19 U.S.C.
3317(b)(5)).
‘‘(F) An article shall be deemed as origi-
nating in the territory of a partnership country
if the article meets the rules of origin for a
good set forth in chapter 4 of the NAFTA, and,
in the case of an article described in Appendix
6.A of the Annex, the requirements stated in
such Appendix 6.A for such article to be treated
as if it were an originating good. In applying
such chapter 4 or Appendix 6.A with respect to
a partnership country for purposes of this
subsection—
‘‘(i) no countries other than the
United States and partnership countries
may be treated as being Parties to the
NAFTA,
‘‘(ii) references to trade between the
United States and Mexico shall be deemed
to refer to trade between the United States
and partnership countries, and
‘‘(iii) references to a Party shall be
deemed to refer to the United States or a
partnership country, and references to the