I
103D CONGRESS
1ST SESSION
H. R. 997
To amend General Note 3(a)(iv) of the Harmonized Tariff Schedule of the
United States to deny special tariff treatment to goods of the Common-
wealth of the Northern Mariana Islands unless certain conditions are
met, to require the Secretary of Labor to assign a full-time resident
compliance officer to the Commonwealth of the Northern Mariana Is-
lands, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 18, 1993
Mr. PAYNE of Virginia introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend General Note 3(a)(iv) of the Harmonized Tariff
Schedule of the United States to deny special tariff treat-
ment to goods of the Commonwealth of the Northern
Mariana Islands unless certain conditions are met, to
require the Secretary of Labor to assign a full-time resi-
dent compliance officer to the Commonwealth of the
Northern Mariana Islands, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONDITIONS ON SPECIAL TARIFF TREATMENT
FOR GOODS OF GUAM AND THE COMMON-
WEALTH OF THE NORTHERN MARIANA IS-
LANDS.
General Note 3(a)(iv) of the Harmonized Tariff
Schedule of the United States is amended—
(1) in subparagraph (A), by striking ‘‘Except’’
and inserting ‘‘Subject to subparagraph (E) and ex-
cept’’;
(2) in subparagraph (C), by inserting ‘‘and sub-
ject to subparagraph (E)’’ after ‘‘1974’’;
(3) in subparagraph (D), by inserting ‘‘and
subject to subparagraph (E)’’ after ‘‘Act’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(E)(I) Notwithstanding any other provi-
sion of this paragraph except as provided in
clause (II), goods which are imported from the
Commonwealth of the Northern Mariana Is-
lands (in this subparagraph referred to as the
‘Commonwealth’) shall be subject to the rates
of duty set forth in column 1 of the tariff
schedule, and may not be labeled as having
been produced or manufactured in the United
States, unless the Commonwealth establishes
that the labor rate paid to the workers produc-
ing such goods is greater than or equal to the
prevailing United States minimum wage rate
and that not less than 50 percent of the direct
labor cost of producing such goods is paid to
residents of the Commonwealth.
‘‘(II) For purposes of this subparagraph,
the term ‘direct labor’ includes all work re-
quired for preparation, processing, packing, and
shipping of a commodity, but not supervision,
management, administration, or inspection; and
the term ‘resident’ includes United States citi-
zens and nationals, citizens of the Trust Terri-
tory of the Pacific Islands, citizens of states in
free association with the United States entitled
to enter the United States and its territories
pursuant to law, and permanent residents (as
such term is used in the Immigration and Na-
tionality Act.’’.
SEC. 2. RESIDENT LABOR COMPLIANCE OFFICER.
(a) IN GENERAL.—The Secretary of Labor shall as-
sign a full-time, resident compliance officer to the Com-
monwealth of the Northern Mariana Islands for purposes
of monitoring the Commonwealth’s compliance with Gen-
eral Note 3(a)(iv)(E) of the Harmonized Tariff Schedule
of the United States and monitoring the Commonwealth’s
compliance with applicable Federal labor laws and regula-
tions issued thereunder.
(b) ANNUAL REPORT.—The Secretary of Labor shall
submit a report annually to the Congress describing the
extent to which the Commonwealth of the Northern Mari-
ana Islands is in compliance with applicable Federal labor
laws and regulations issued thereunder.
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