H. R. 6124—633 
(b) KANSAS DISASTER AREA.—For purposes of this section, the 
term ‘‘Kansas disaster area’’ means an area with respect to which 
a major disaster has been declared by the President under section 
401 of the Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (FEMA–1699–DR, as in effect on the date of the enactment 
of this Act) by reason of severe storms and tornados beginning 
on May 4, 2007, and determined by the President to warrant 
individual or individual and public assistance from the Federal 
Government under such Act with respect to damages attributable 
to such storms and tornados. 
(c) REFERENCES TO AREA OR LOSS.— 
(1) AREA.—Any reference in such provisions to the Katrina 
disaster area or the Gulf Opportunity Zone shall be treated 
as a reference to the Kansas disaster area. 
(2) LOSS.—Any reference in such provisions to any loss 
or damage attributable to Hurricane Katrina shall be treated 
as a reference to any loss or damage attributable to the May 
4, 2007, storms and tornados. 
(d) REFERENCES TO DATES, ETC.— 
(1) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED 
ON OR AFTER MAY 5, 2007.—Section 1400N(d) of such Code— 
(A) by substituting ‘‘qualified Recovery Assistance prop-
erty’’ for ‘‘qualified Gulf Opportunity Zone property’’ each 
place it appears, 
(B) by substituting ‘‘May 5, 2007’’ for ‘‘August 28, 2005’’ 
each place it appears, 
(C) by substituting ‘‘December 31, 2008’’ for ‘‘December 
31, 2007’’ in paragraph (2)(A)(v), 
(D) by substituting ‘‘December 31, 2009’’ for ‘‘December 
31, 2008’’ in paragraph (2)(A)(v), 
(E) by substituting ‘‘May 4, 2007’’ for ‘‘August 27, 2005’’ 
in paragraph (3)(A), 
(F) by substituting ‘‘January 1, 2009’’ for ‘‘January 
1, 2008’’ in paragraph (3)(B), and 
(G) determined without regard to paragraph (6) 
thereof. 
(2) INCREASE IN EXPENSING UNDER SECTION 179.—Section 
1400N(e) of such Code, by substituting ‘‘qualified section 179 
Recovery Assistance property’’ for ‘‘qualified section 179 Gulf 
Opportunity Zone property’’ each place it appears. 
(3) EXPENSING
FOR
CERTAIN
DEMOLITION
AND
CLEAN-UP 
COSTS.—Section 1400N(f) of such Code— 
(A) by substituting ‘‘qualified Recovery Assistance 
clean-up cost’’ for ‘‘qualified Gulf Opportunity Zone clean- 
up cost’’ each place it appears, and 
(B) by substituting ‘‘beginning on May 4, 2007, and 
ending on December 31, 2009’’ for ‘‘beginning on August 
28, 2005, and ending on December 31, 2007’’ in paragraph 
(2) thereof. 
(4) TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE 
TO STORM LOSSES.—Section 1400N(k) of such Code— 
(A) by substituting ‘‘qualified Recovery Assistance loss’’ 
for ‘‘qualified Gulf Opportunity Zone loss’’ each place it 
appears, 
(B) by substituting ‘‘after May 3, 2007, and before 
on January 1, 2010’’ for ‘‘after August 27, 2005, and before 
January 1, 2008’’ each place it appears,
H. R. 6124—634 
(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 
in paragraph (2)(B)(ii)(I) thereof, 
(D) by substituting ‘‘qualified Recovery Assistance 
property’’ for ‘‘qualified Gulf Opportunity Zone property’’ 
in paragraph (2)(B)(iv) thereof, and 
(E) by substituting ‘‘qualified Recovery Assistance cas-
ualty loss’’ for ‘‘qualified Gulf Opportunity Zone casualty 
loss’’ each place it appears. 
(5) SPECIAL RULES FOR USE OF RETIREMENT FUNDS.—Section 
1400Q of such Code— 
(A) by substituting ‘‘qualified Recovery Assistance dis-
tribution’’ for ‘‘qualified hurricane distribution’’ each place 
it appears, 
(B) by substituting ‘‘on or after May 4, 2007, and 
before January 1, 2009’’ for ‘‘on or after August 25, 2005, 
and before January 1, 2007’’ in subsection (a)(4)(A)(i), 
(C) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 
in subsections (a)(4)(A)(i) and (c)(3)(B), 
(D) disregarding clauses (ii) and (iii) of subsection 
(a)(4)(A), 
(E) by substituting ‘‘qualified storm distribution’’ for 
‘‘qualified Katrina distribution’’ each place it appears, 
(F) by substituting ‘‘after November 4, 2006, and before 
May 5, 2007’’ for ‘‘after February 28, 2005, and before 
August 29, 2005’’ in subsection (b)(2)(B)(ii), 
(G) by substituting ‘‘the Kansas disaster area (as 
defined in section 15345(b) of the Food, Conservation, and 
Energy Act of 2008) but which was not so purchased or 
constructed on account of the May 4, 2007, storms and 
tornados’’ for ‘‘the Hurricane Katrina disaster area, but 
not so purchased or constructed on account of Hurricane 
Katrina’’ in subsection (b)(2)(B)(iii), 
(H) by substituting ‘‘beginning on May 4, 2007, and 
ending on the date which is 5 months after the date of 
the enactment of the Heartland, Habitat, Harvest, and 
Horticulture Act of 2008’’ for ‘‘beginning on August 25, 
2005, and ending on February 28, 2006’’ in subsection 
(b)(3)(A), 
(I) by substituting ‘‘qualified storm individual’’ for 
‘‘qualified Hurricane Katrina individual’’ each place it 
appears, 
(J) by substituting ‘‘December 31, 2008’’ for ‘‘December 
31, 2006’’ in subsection (c)(2)(A), 
(K) by substituting ‘‘beginning on the date of the enact-
ment of the Food, Conservation, and Energy Act of 2008 
and ending on December 31, 2008’’ for ‘‘beginning on Sep-
tember 24, 2005, and ending on December 31, 2006’’ in 
subsection (c)(4)(A)(i), 
(L) by substituting ‘‘May 4, 2007’’ for ‘‘August 25, 2005’’ 
in subsection (c)(4)(A)(ii), and 
(M) by substituting ‘‘January 1, 2009’’ for ‘‘January 
1, 2007’’ in subsection (d)(2)(A)(ii). 
(6) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED 
BY
MAY
STORMS
AND
TORNADOS.—Section 1400R(a) of the 
Internal Revenue Code of 1986— 
(A) by substituting ‘‘May 4, 2007’’ for ‘‘August 28, 2005’’ 
each place it appears,
H. R. 6124—635 
(B) by substituting ‘‘January 1, 2008’’ for ‘‘January 
1, 2006’’ both places it appears, and 
(C) only with respect to eligible employers who 
employed an average of not more than 200 employees on 
business days during the taxable year before May 4, 2007. 
(7) SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CAS-
UALTY LOSSES.—Section 1400S(b)(1) of the Internal Revenue 
Code of 1986, by substituting ‘‘May 4, 2007’’ for ‘‘August 25, 
2005’’. 
(8) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNI-
TION
OF
GAIN.—Section 405 of the Katrina Emergency Tax 
Relief Act of 2005, by substituting ‘‘on or after May 4, 2007’’ 
for ‘‘on or after August 25, 2005’’. 
SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION 
AUTHORITY. 
(a) IN GENERAL.—Section 48A (relating to qualifying advanced 
coal project credit) is amended by adding at the end the following 
new subsection: 
‘‘(h) 
COMPETITIVE
CERTIFICATION
AWARDS
MODIFICATION 
AUTHORITY.—In implementing this section or section 48B, the Sec-
retary is directed to modify the terms of any competitive certification 
award and any associated closing agreement where such modifica-
tion— 
‘‘(1) is consistent with the objectives of such section, 
‘‘(2) is requested by the recipient of the competitive certifi-
cation award, and 
‘‘(3) involves moving the project site to improve the poten-
tial to capture and sequester carbon dioxide emissions, reduce 
costs of transporting feedstock, and serve a broader customer 
base, 
unless the Secretary determines that the dollar amount of tax 
credits available to the taxpayer under such section would increase 
as a result of the modification or such modification would result 
in such project not being originally certified. In considering any 
such modification, the Secretary shall consult with other relevant 
Federal agencies, including the Department of Energy.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act and 
is applicable to all competitive certification awards entered into 
under section 48A or 48B of the Internal Revenue Code of 1986, 
whether such awards were issued before, on, or after such date 
of enactment. 
PART IV—OTHER REVENUE PROVISIONS 
SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAX-
PAYERS. 
(a) IN GENERAL.—Section 461 (relating to general rule for tax-
able year of deduction) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(j) LIMITATION
ON EXCESS FARM LOSSES
OF CERTAIN TAX-
PAYERS.— 
‘‘(1) LIMITATION.—If a taxpayer other than a C corporation 
receives any applicable subsidy for any taxable year, any excess 
farm loss of the taxpayer for the taxable year shall not be 
allowed.
H. R. 6124—636 
‘‘(2) DISALLOWED LOSS CARRIED TO NEXT TAXABLE YEAR.— 
Any loss which is disallowed under paragraph (1) shall be 
treated as a deduction of the taxpayer attributable to farming 
businesses in the next taxable year. 
‘‘(3) APPLICABLE SUBSIDY.—For purposes of this subsection, 
the term ‘applicable subsidy’ means— 
‘‘(A) any direct or counter-cyclical payment under title 
I of the Food, Conservation, and Energy Act of 2008, or 
any payment elected to be received in lieu of any such 
payment, or 
‘‘(B) any Commodity Credit Corporation loan. 
‘‘(4) EXCESS FARM LOSS.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘excess farm loss’ means 
the excess of— 
‘‘(i) the aggregate deductions of the taxpayer for 
the taxable year which are attributable to farming 
businesses of such taxpayer (determined without 
regard to whether or not such deductions are dis-
allowed for such taxable year under paragraph (1)), 
over 
‘‘(ii) the sum of— 
‘‘(I) the aggregate gross income or gain of such 
taxpayer for the taxable year which is attributable 
to such farming businesses, plus 
‘‘(II) the threshold amount for the taxable year. 
‘‘(B) THRESHOLD AMOUNT.— 
‘‘(i) IN
GENERAL.—The term ‘threshold amount’ 
means, with respect to any taxable year, the greater 
of— 
‘‘(I) $300,000 ($150,000 in the case of married 
individuals filing separately), or 
‘‘(II) the excess (if any) of the aggregate 
amounts described in subparagraph (A)(ii)(I) for 
the 5-consecutive taxable year period preceding 
the taxable year over the aggregate amounts 
described in subparagraph (A)(i) for such period. 
‘‘(ii) SPECIAL RULES FOR DETERMINING AGGREGATE 
AMOUNTS.—For purposes of clause (i)(II)— 
‘‘(I) notwithstanding the disregard in subpara-
graph (A)(i) of any disallowance under paragraph 
(1), in the case of any loss which is carried forward 
under paragraph (2) from any taxable year, such 
loss (or any portion thereof) shall be taken into 
account for the first taxable year in which a deduc-
tion for such loss (or portion) is not disallowed 
by reason of this subsection, and 
‘‘(II) the Secretary shall prescribe rules for 
the 
computation 
of 
the 
aggregate 
amounts 
described in such clause in cases where the filing 
status of the taxpayer is not the same for the 
taxable year and each of the taxable years in the 
period described in such clause. 
‘‘(C) FARMING BUSINESS.— 
‘‘(i) IN GENERAL.—The term ‘farming business’ has 
the meaning given such term in section 263A(e)(4). 
‘‘(ii) CERTAIN TRADES AND BUSINESSES INCLUDED.— 
If, without regard to this clause, a taxpayer is engaged
H. R. 6124—637 
in a farming business with respect to any agricultural 
or horticultural commodity— 
‘‘(I) the term ‘farming business’ shall include 
any trade or business of the taxpayer of the proc-
essing of such commodity (without regard to 
whether the processing is incidental to the 
growing, raising, or harvesting of such commodity), 
and 
‘‘(II) if the taxpayer is a member of a coopera-
tive to which subchapter T applies, any trade or 
business of the cooperative described in subclause 
(I) shall be treated as the trade or business of 
the taxpayer. 
‘‘(D) CERTAIN LOSSES DISREGARDED.—For purposes of 
subparagraph (A)(i), there shall not be taken into account 
any deduction for any loss arising by reason of fire, storm, 
or other casualty, or by reason of disease or drought, 
involving any farming business. 
‘‘(5) APPLICATION OF SUBSECTION IN CASE OF PARTNERSHIPS 
AND S CORPORATIONS.—In the case of a partnership or S cor-
poration— 
‘‘(A) this subsection shall be applied at the partner 
or shareholder level, and 
‘‘(B) each partner’s or shareholder’s proportionate share 
of the items of income, gain, or deduction of the partnership 
or S corporation for any taxable year from farming 
businesses attributable to the partnership or S corporation, 
and of any applicable subsidies received by the partnership 
or S corporation during the taxable year, shall be taken 
into account by the partner or shareholder in applying 
this subsection to the taxable year of such partner or 
shareholder with or within which the taxable year of the 
partnership or S corporation ends. 
The Secretary may provide rules for the application of this 
paragraph to any other pass-thru entity to the extent necessary 
to carry out the provisions of this subsection. 
‘‘(6) ADDITIONAL REPORTING.—The Secretary may prescribe 
such additional reporting requirements as the Secretary deter-
mines appropriate to carry out the purposes of this subsection. 
‘‘(7) COORDINATION
WITH
SECTION
469.—This subsection 
shall be applied before the application of section 469.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2009. 
SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING 
NET EARNINGS FROM SELF-EMPLOYMENT. 
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 
(1) IN GENERAL.—The matter following paragraph (17) of 
section 1402(a) is amended— 
(A) by striking ‘‘$2,400’’ each place it appears and 
inserting ‘‘the upper limit’’, and 
(B) by striking ‘‘$1,600’’ each place it appears and 
inserting ‘‘the lower limit’’. 
(2) DEFINITIONS.—Section 1402 is amended by adding at 
the end the following new subsection: 
‘‘(l) UPPER
AND LOWER LIMITS.—For purposes of subsection 
(a)—
H. R. 6124—638 
‘‘(1) LOWER LIMIT.—The lower limit for any taxable year 
is the sum of the amounts required under section 213(d) of 
the Social Security Act for a quarter of coverage in effect 
with respect to each calendar quarter ending with or within 
such taxable year. 
‘‘(2) UPPER LIMIT.—The upper limit for any taxable year 
is the amount equal to 150 percent of the lower limit for 
such taxable year.’’. 
(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.— 
(1) IN GENERAL.—The matter following paragraph (16) of 
section 211(a) of the Social Security Act is amended— 
(A) by striking ‘‘$2,400’’ each place it appears and 
inserting ‘‘the upper limit’’, and 
(B) by striking ‘‘$1,600’’ each place it appears and 
inserting ‘‘the lower limit’’. 
(2) DEFINITIONS.—Section 211 of such Act is amended by 
adding at the end the following new subsection: 
‘‘(k) UPPER AND LOWER LIMITS.—For purposes of subsection 
(a)— 
‘‘(1) The lower limit for any taxable year is the sum of 
the amounts required under section 213(d) for a quarter of 
coverage in effect with respect to each calendar quarter ending 
with or within such taxable year. 
‘‘(2) The upper limit for any taxable year is the amount 
equal to 150 percent of the lower limit for such taxable year.’’. 
(3) CONFORMING
AMENDMENT.—Section 212 of such Act 
is amended— 
(A) in subsection (b), by striking ‘‘For’’ and inserting 
‘‘Except as provided in subsection (c), for’’; and 
(B) by adding at the end the following new subsection: 
‘‘(c) For the purpose of determining average indexed monthly 
earnings, average monthly wage, and quarters of coverage in the 
case of any individual who elects the option described in clause 
(ii) or (iv) in the matter following section 211(a)(16) for any taxable 
year that does not begin with or during a particular calendar 
year and end with or during such year, the self-employment income 
of such individual deemed to be derived during such taxable year 
shall be allocated to the two calendar years, portions of which 
are included within such taxable year, in the same proportion 
to the total of such deemed self-employment income as the sum 
of the amounts applicable under section 213(d) for the calendar 
quarters ending with or within each such calendar year bears 
to the lower limit for such taxable year specified in section 
211(k)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007. 
SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT COR-
PORATION TRANSACTIONS. 
(a) IN GENERAL.—Subpart A of part III of subchapter A of 
chapter 61 (relating to information concerning persons subject to 
special provisions) is amended by inserting after section 6039I 
the following new section: 
‘‘SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COM-
MODITY CREDIT CORPORATION TRANSACTIONS. 
‘‘(a) REQUIREMENT OF REPORTING.—The Commodity Credit Cor-
poration, through the Secretary of Agriculture, shall make a return,
H. R. 6124—639 
according to the forms and regulations prescribed by the Secretary 
of the Treasury, setting forth any market gain realized by a tax-
payer during the taxable year in relation to the repayment of 
a loan issued by the Commodity Credit Corporation, without regard 
to the manner in which such loan was repaid. 
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS WITH RESPECT 
TO WHOM INFORMATION IS REQUIRED.—The Secretary of Agriculture 
shall furnish to each person whose name is required to be set 
forth in a return required under subsection (a) a written statement 
showing the amount of market gain reported in such return.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for subpart 
A of part III of subchapter A of chapter 61 is amended by inserting 
after the item relating to section 6039I the following new item: 
‘‘Sec. 6039J. Information reporting with respect to Commodity Credit Corporation 
transactions.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to loans repaid on or after January 1, 2007. 
PART V—PROTECTION OF SOCIAL SECURITY 
SEC. 15361. PROTECTION OF SOCIAL SECURITY. 
To ensure that the assets of the trust funds established under 
section 201 of the Social Security Act (42 U.S.C. 401) are not 
reduced as a result of the enactment of this Act, the Secretary 
of the Treasury shall transfer annually from the general revenues 
of the Federal Government to those trust funds the following 
amounts: 
(1) For fiscal year 2009, $5,000,000. 
(2) For fiscal year 2010, $9,000,000. 
(3) For fiscal year 2011, $8,000,000. 
(4) For fiscal year 2012, $7,000,000. 
(5) For fiscal year 2013, $8,000,000. 
(6) For fiscal year 2014, $8,000,000. 
(7) For fiscal year 2015, $8,000,000. 
(8) For fiscal year 2016, $6,000,000. 
(9) For fiscal year 2017, $7,000,000. 
Subtitle D—Trade Provisions 
PART I—EXTENSION OF CERTAIN TRADE 
BENEFITS 
SEC. 15401. SHORT TITLE. 
This part may be cited as the ‘‘Haitian Hemispheric Oppor-
tunity through Partnership Encouragement Act of 2008’’ or the 
‘‘HOPE II Act’’. 
SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES. 
(a) VALUE-ADDED RULE.—Section 213A(b) of the Carribean 
Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended 
as follows: 
(1) The subsection heading is amended to read as follows: 
‘‘APPAREL AND OTHER TEXTILE ARTICLES’’. 
(2) Paragraph (1) is amended to read as follows: 
‘‘(1) VALUE-ADDED RULE FOR APPAREL ARTICLES.—
H. R. 6124—640 
‘‘(A) IN
GENERAL.—Apparel articles described in 
subparagraph (B) of a producer or entity controlling produc-
tion that are imported directly from Haiti or the Dominican 
Republic shall enter the United States free of duty during 
an applicable 1-year period, subject to the limitations set 
forth in subparagraphs (B) and (C), and subject to subpara-
graph (D).’’. 
(3) Paragraph (2) is amended— 
(A) in subparagraph (A)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in clause (i), by striking ‘‘subparagraph (C)’’ 
and inserting ‘‘clause (iii)’’; 
(iii) in clause (ii), by striking ‘‘subparagraph (C)’’ 
and inserting ‘‘clause (iii)’’; 
(iv) in the matter following clause (ii), by striking 
‘‘subparagraph (E)(I)’’ and inserting ‘‘clause (v)(I)’’; 
(v) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively; and 
(vi) by redesignating subparagraph (A) as clause 
(i); 
(B) in subparagraph (B)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) by striking ‘‘subparagraph (A)(i)’’ each place 
it appears and inserting ‘‘clause (i)(I)’’; 
(iii) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively; and 
(iv) by redesignating subparagraph (B) as clause 
(ii); 
(C) in subparagraph (C)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in the matter preceding clause (i), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘clause (i)’’; 
(iii) in clause (ii), by striking ‘‘that enters into 
force’’ and all that follows through ‘‘et seq.)’’ and 
inserting ‘‘that enters into force thereafter’’; 
(iv) by redesignating clauses (i) through (v) as 
subclauses (I) through (V), respectively; and 
(v) by redesignating subparagraph (C) as clause 
(iii); 
(D) in subparagraph (D)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in clause (i)— 
(I) in the matter preceding subclause (I), by 
striking ‘‘subparagraph (A)’’ and inserting ‘‘clause 
(i)’’; 
(II) in subclause (I), by striking ‘‘clause (i) 
of subparagraph (A)’’ and inserting ‘‘subclause (I) 
of clause (i)’’; 
(III) in subclause (II), by striking ‘‘clause (ii) 
of subparagraph (A)’’ and inserting ‘‘subclause (II) 
of clause (i)’’; 
(IV) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and
H. R. 6124—641 
(V) by redesignating clause (i) as subclause 
(I); 
(iii) in clause (ii)— 
(I) in the matter preceding subclause (I), by 
striking ‘‘subparagraph (A)’’ and inserting ‘‘clause 
(i)’’; 
(II) in subclause (I), by striking ‘‘clause (i) 
of subparagraph (A)’’ and inserting ‘‘subclause (I) 
of clause (i)’’; 
(III) in subclause (II), by striking ‘‘clause (ii) 
of subparagraph (A)’’ and inserting ‘‘subclause (II) 
of clause (i)’’; 
(IV) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and 
(V) by redesignating clause (ii) as subclause 
(II); 
(iv) in clause (iii)— 
(I) by striking ‘‘clause (i)(I) or (ii)(I)’’ each place 
it appears and inserting ‘‘subclause (I)(aa) or 
(II)(aa)’’; 
(II) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and 
(III) by redesignating clause (iii) as subclause 
(III); 
(v) by amending clause (iv) to read as follows: 
‘‘(IV) INCLUSION
IN
CALCULATION
OF
OTHER 
ARTICLES RECEIVING PREFERENTIAL TREATMENT.— 
Entries of apparel articles that receive preferential 
treatment under any provision of law other than 
this subparagraph or are subject to the ‘General’ 
column 1 rate of duty under the HTS are not 
included in the annual aggregation under sub-
clause (I) or (II) unless the producer or entity 
controlling production elects, at the time the 
annual aggregation calculation is made, to include 
such entries in such aggregation.’’; and 
(vi) by redesignating subparagraph (D) as clause 
(iv); 
(E) in subparagraph (E)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in clause (i)— 
(I) by redesignating subclauses (I) through 
(III) as items (aa) through (cc), respectively; and 
(II) by redesignating clause (i) as subclause 
(I); 
(iii) in clause (ii)— 
(I) 
by 
striking 
‘‘subparagraph 
(C)’’ 
and 
inserting ‘‘clause (iii)’’; and 
(II) by redesignating clause (ii) as subclause 
(II); and 
(iv) by redesignating subparagraph (E) as clause 
(v); 
(F) in subparagraph (F)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in clause (i)—
H. R. 6124—642 
(I) by striking ‘‘The Bureau of Customs and 
Border Protection’’ and inserting ‘‘U.S. Customs 
and Border Protection’’; 
(II) by striking ‘‘subparagraphs (A) and (D)’’ 
and inserting ‘‘clauses (i) and (iv)’’; and 
(III) by redesignating clause (i) as subclause 
(I); 
(iii) in clause (ii)— 
(I) in the matter preceding subclause (I)— 
(aa) by striking ‘‘the Bureau of Customs 
and Border Protection’’ and inserting ‘‘U.S. 
Customs and Border Protection’’; 
(bb) by striking ‘‘subparagraph (A)’’ each 
place it appears and inserting ‘‘clause (i)’’; and 
(cc) by striking ‘‘subparagraph (D)’’ and 
inserting ‘‘clause (iv)’’; 
(II) in subclause (I), by striking ‘‘clause (i) 
of subparagraph (A)’’ and inserting ‘‘subclause (I) 
of clause (i)’’; 
(III) in subclause (II), by striking ‘‘clause (ii) 
of subparagraph (A)’’ and inserting ‘‘subclause (II) 
of clause (i)’’; 
(IV) in the matter following subclause (II), 
by striking ‘‘subparagraph (E)(i)’’ and inserting 
‘‘clause (v)(I)’’; 
(V) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and 
(VI) by redesignating clause (ii) as subclause 
(II); 
(iv) in clause (iii)— 
(I) in subclause (I)— 
(aa) by striking ‘‘paragraph (1)’’ and 
inserting ‘‘subparagraph (A)’’; and 
(bb) by striking ‘‘subparagraph (A) or (D)’’ 
and inserting ‘‘clause (i) or (iv)’’; 
(II) in subclause (II), by striking ‘‘clause (ii) 
of this subparagraph’’ and inserting ‘‘subclause (II) 
of this clause’’; 
(III) in the matter following subclause (II)— 
(aa) by striking ‘‘the Bureau of Customs 
and Border Protection’’ each place it appears 
and inserting ‘‘U.S. Customs and Border 
Protection’’; and 
(bb) by striking ‘‘subclause (II)’’ and 
inserting ‘‘item (bb)’’; and 
(IV) in item (bb)— 
(aa) by striking ‘‘paragraph (1)’’ and 
inserting ‘‘subparagraph (A)’’; and 
(bb) by striking ‘‘subparagraph (A) or (D)’’ 
and inserting ‘‘clause (i) or (iv)’’; and 
(V) in the matter following item (bb), by 
striking ‘‘paragraph (1)’’ and inserting ‘‘subpara-
graph (A)’’; 
(VI) by redesignating items (aa) and (bb) as 
subitems (AA) and (BB), respectively; 
(VII) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and
H. R. 6124—643 
(VIII) by redesignating clause (iii) as subclause 
(III); and 
(v) by redesignating subparagraph (F) as clause 
(vi); 
(G) in subparagraph (G)— 
(i) by moving such subparagraph 2 ems to the 
right; 
(ii) in clause (i)— 
(I) in the matter preceding subclause (I), by 
striking ‘‘subparagraph (A) or (D)’’ and inserting 
‘‘clause (i) or (iv)’’; 
(II) in subclause (II)— 
(aa) in item (dd), by striking ‘‘under the 
Bipartisan Trade Promotion Authority Act of 
2002’’ and inserting ‘‘with respect to the 
United States’’; and 
(bb) by redesignating items (aa) through 
(dd) as subitems (AA) through (DD), respec-
tively; 
(III) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and 
(IV) by redesignating clause (i) as subclause 
(I); 
(iii) in clause (ii)— 
(I) in subclause (I), by striking ‘‘clause (i)(I)’’ 
and inserting ‘‘subclause (I)(aa)’’; 
(II) in subclause (II), by striking ‘‘clause (i)(II)’’ 
and inserting ‘‘subclause (I)(bb)’’; 
(III) by redesignating subclauses (I) and (II) 
as items (aa) and (bb), respectively; and 
(IV) by redesignating clause (ii) as subclause 
(II); and 
(iv) by redesignating subparagraph (G) as clause 
(vii); and 
(H) by striking ‘‘(2) APPAREL ARTICLES DESCRIBED.— 
’’ and inserting the following: 
‘‘(B) APPAREL ARTICLES DESCRIBED.—’’. 
(4) Paragraph (3) is amended— 
(A) by redesignating such paragraph as subparagraph 
(C) and moving it 2 ems to the right; 
(B) by striking ‘‘paragraph (1)’’ each place it appears 
and inserting ‘‘subparagraph (A)’’; and 
(C) in the table— 
(i) by striking ‘‘1.5 percent’’ and inserting ‘‘1.25 
percent’’; 
(ii) by striking ‘‘1.75 percent’’ and inserting ‘‘1.25 
percent’’; and 
(iii) by striking ‘‘2 percent’’ and inserting ‘‘1.25 
percent’’. 
(5) The following is added after subparagraph (C), as 
redesignated by paragraph (4)(A) of this subsection: 
‘‘(D) OTHER PREFERENTIAL TREATMENT NOT AFFECTED 
BY QUANTITATIVE LIMITATIONS.—Any apparel article that 
qualifies for preferential treatment under paragraph (2), 
(3), (4), or (5) or any other provision of this title shall 
not be subject to, or included in the calculation of, the 
quantitative limitations under subparagraph (C).’’.
H. R. 6124—644 
(b) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT 
ARTICLES.—Section 213A(b) of the Carribean Basin Economic 
Recovery Act is amended by striking paragraph (4) and inserting 
the following: 
‘‘(2) SPECIAL RULE FOR WOVEN ARTICLES AND CERTAIN KNIT 
ARTICLES.— 
‘‘(A) SPECIAL RULE FOR ARTICLES OF CHAPTER 62 OF 
THE HTS.— 
‘‘(i) GENERAL RULE.—Any apparel article classifi-
able under chapter 62 of the HTS that is wholly assem-
bled, or knit-to-shape, in Haiti from any combination 
of fabrics, fabric components, components knit-to- 
shape, or yarns and is imported directly from Haiti 
or the Dominican Republic shall enter the United 
States free of duty, subject to clauses (ii) and (iii), 
without regard to the source of the fabric, fabric compo-
nents, components knit-to-shape, or yarns from which 
the article is made. 
‘‘(ii) 
LIMITATION.—The 
preferential 
treatment 
described in clause (i) shall be extended, in the 1- 
year period beginning October 1, 2008, and in each 
of the 9 succeeding 1-year periods, to not more than 
70,000,000 square meter equivalents of apparel articles 
described in such clause. 
‘‘(iii) 
OTHER
PREFERENTIAL
TREATMENT
NOT 
AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel 
article that qualifies for preferential treatment under 
paragraph (1), (3), (4), or (5) or subparagraph (B) of 
this paragraph or any other provision of this title shall 
not be subject to, or included in the calculation of, 
the quantitative limitation under clause (ii). 
‘‘(B) SPECIAL RULE FOR CERTAIN ARTICLES OF CHAPTER 
61 OF THE HTS.— 
‘‘(i) GENERAL RULE.—Any apparel article classifi-
able under chapter 61 of the HTS that is wholly assem-
bled, or knit-to-shape, in Haiti from any combination 
of fabrics, fabric components, components knit-to- 
shape, or yarns and is imported directly from Haiti 
or the Dominican Republic shall enter the United 
States free of duty, subject to clauses (ii), (iii), and 
(iv), without regard to the source of the fabric, fabric 
components, components knit-to-shape, or yarns from 
which the article is made. 
‘‘(ii) 
EXCLUSIONS.—The 
preferential 
treatment 
described in clause (i) shall not apply to the following: 
‘‘(I) The following apparel articles of cotton, 
for men or boys, that are classifiable under sub-
heading 6109.10.00 of the HTS: 
‘‘(aa) All white T-shirts, with short 
hemmed sleeves and hemmed bottom, with 
crew or round neckline or with V-neck and 
with a mitered seam at the center of the V, 
and without pockets, trim, or embroidery. 
‘‘(bb) All white singlets, without pockets, 
trim, or embroidery. 
‘‘(cc) Other T-shirts, but not including 
thermal undershirts.
H. R. 6124—645 
‘‘(II) T-shirts for men or boys that are classifi-
able under subheading 6109.90.10. 
‘‘(III) The following apparel articles of cotton, 
for men or boys, that are classifiable under sub-
heading 6110.20.20 of the HTS: 
‘‘(aa) Sweatshirts. 
‘‘(bb) Pullovers, other than sweaters, vests, 
or garments imported as part of playsuits. 
‘‘(IV) Sweatshirts for men or boys, of man- 
made fibers and containing less than 65 percent 
by weight of man-made fibers, that are classifiable 
under subheading 6110.30.30 of the HTS. 
‘‘(iii) 
LIMITATION.—The 
preferential 
treatment 
described in clause (i) shall be extended, in the 1- 
year period beginning October 1, 2008, and in each 
of the 9 succeeding 1-year periods, to not more than 
70,000,000 square meter equivalents of apparel articles 
described in such clause. 
‘‘(iv) 
OTHER
PREFERENTIAL
TREATMENT
NOT 
AFFECTED BY QUANTITATIVE LIMITATION.—Any apparel 
article that qualifies for preferential treatment under 
paragraph (1), (3), (4), or (5) or subparagraph (A) of 
this paragraph or any other provision of this title shall 
not be subject to, or included in the calculation of, 
the quantitative limitation under clause (iii).’’. 
(c) SINGLE TRANSFORMATION RULES NOT SUBJECT TO QUAN-
TITATIVE LIMITATIONS.—Section 213A(b) of the Caribbean Basin 
Economic Recovery Act is amended by striking paragraph (5) and 
inserting the following: 
‘‘(3) APPAREL AND OTHER ARTICLES SUBJECT TO CERTAIN 
ASSEMBLY RULES.— 
‘‘(A) BRASSIERES.—Any apparel article classifiable 
under subheading 6212.10 of the HTS that is wholly assem-
bled, or knit-to-shape, in Haiti from any combination of 
fabrics, fabric components, components knit-to-shape, or 
yarns and is imported directly from Haiti or the Dominican 
Republic shall enter the United States free of duty, without 
regard to the source of the fabric, fabric components, compo-
nents knit-to-shape, or yarns from which the article is 
made. 
‘‘(B) OTHER APPAREL ARTICLES.—Any of the following 
apparel articles that is wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric components, 
components knit-to-shape, or yarns and is imported directly 
from Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard to the source 
of the fabric, fabric components, components knit-to-shape, 
or yarns from which the article is made: 
‘‘(i) Any apparel article that is of a type listed 
in chapter rule 3, 4, or 5 for chapter 61 of the HTS 
(as such chapter rules are contained in section A of 
the Annex to Proclamation 8213 of the President of 
December 20, 2007) as being excluded from the scope 
of such chapter rule, when such chapter rule is applied 
to determine whether an apparel article is an origi-
nating good for purposes of general note 29(n) to the 
HTS, except that, for purposes of this clause, reference
H. R. 6124—646 
in such chapter rules to ‘6104.12.00’ shall be deemed 
to be a reference to ‘6104.19.60’. 
‘‘(ii)(I) Subject to subclause (II), any apparel article 
that is of a type listed in chapter rule 3(a), 4(a), or 
5(a) for chapter 62 of the HTS, as such chapter rules 
are contained in paragraph 9 of section A of the Annex 
to Proclamation 8213 of the President of December 
20, 2007. 
‘‘(II) Subclause (I) shall not include any apparel 
article to which subparagraph (A) of this paragraph 
applies. 
‘‘(C) LUGGAGE AND SIMILAR ITEMS.—Any article classifi-
able under subheading 4202.12, 4202.22, 4202.32 or 
4202.92 of the HTS that is wholly assembled in Haiti 
and is imported directly from Haiti or the Dominican 
Republic shall enter the United States free of duty, without 
regard to the source of the fabric, components, or materials 
from which the article is made. 
‘‘(D) 
HEADGEAR.—Any 
article 
classifiable 
under 
heading 6501, 6502, or 6504 of the HTS, or under sub-
heading 6505.90 of the HTS, that is wholly assembled, 
knit-to-shape, or formed in Haiti from any combination 
of fabrics, fabric components, components knit-to-shape, 
or yarns and is imported directly from Haiti or the Domini-
can Republic shall enter the United States free of duty, 
without regard to the source of the fabric, fabric compo-
nents, components knit-to-shape, or yarns from which the 
article is made. 
‘‘(E) CERTAIN
SLEEPWEAR.—Any of the following 
apparel articles that is wholly assembled, or knit-to-shape, 
in Haiti from any combination of fabrics, fabric components, 
components knit-to-shape, or yarns and is imported directly 
from Haiti or the Dominican Republic shall enter the 
United States free of duty, without regard to the source 
of the fabric, fabric components, components knit-to-shape, 
or yarns from which the article is made: 
‘‘(i) Pajama bottoms and other sleepwear for 
women and girls, of cotton, that are classifiable under 
subheading 6208.91.30, or of man-made fibers, that 
are classifiable under subheading 6208.92.00. 
‘‘(ii) Pajama bottoms and other sleepwear for girls, 
of other textile materials, that are classifiable under 
subheading 6208.99.20.’’. 
(d) EARNED IMPORT ALLOWANCE RULES.—Section 231A(b) of 
the Caribbean Basin Economic Recovery Act is amended by adding 
at the end the following new paragraph: 
‘‘(4) EARNED IMPORT ALLOWANCE RULE.— 
‘‘(A) IN GENERAL.—Apparel articles wholly assembled, 
or knit-to-shape, in Haiti from any combination of fabrics, 
fabric components, components knit-to-shape, or yarns and 
imported directly from Haiti or the Dominican Republic 
shall enter the United States free of duty, without regard 
to the source of the fabric, fabric components, components 
knit-to-shape, or yarns from which the articles are made, 
if such apparel articles are accompanied by an earned 
import allowance certificate that reflects the amount of 
credits equal to the total square meter equivalents of such
H. R. 6124—647 
apparel articles, in accordance with the program estab-
lished under subparagraph (B). For purposes of deter-
mining the quantity of square meter equivalents under 
this subparagraph, the conversion factors listed in ‘Correla-
tion: U.S. Textile and Apparel Industry Category System 
with the Harmonized Tariff Schedule of the United States 
of America, 2008’, or its successor publications, of the 
United States Department of Commerce, shall apply. 
‘‘(B) EARNED IMPORT ALLOWANCE PROGRAM.— 
‘‘(i) ESTABLISHMENT.—The Secretary of Commerce 
shall establish a program to provide earned import 
allowance certificates to any producer or entity control-
ling production for purposes of subparagraph (A), based 
on the elements described in clause (ii). 
‘‘(ii) ELEMENTS.—The elements referred to in 
clause (i) are the following: 
‘‘(I) One credit shall be issued to a producer 
or an entity controlling production for every three 
square meter equivalents of qualifying woven 
fabric or qualifying knit fabric that the producer 
or entity controlling production can demonstrate 
that it purchased for the manufacture in Haiti 
of articles like or similar to any article eligible 
for preferential treatment under subparagraph (A). 
The Secretary of Commerce shall, if requested by 
a producer or entity controlling production, create 
and maintain an account for such producer or 
entity controlling production, into which such 
credits shall be deposited. 
‘‘(II) Such producer or entity controlling 
production may redeem credits issued under sub-
clause (I) for earned import allowance certificates 
reflecting such number of earned credits as the 
producer or entity may request and has available. 
‘‘(III) The Secretary of Commerce may require 
any textile mill or other entity located in the 
United States that exports to Haiti qualifying 
woven fabric or qualifying knit fabric to submit, 
upon such export or upon request, documentation, 
such as a Shipper’s Export Declaration, to the 
Secretary of Commerce— 
‘‘(aa) verifying that the qualifying woven 
fabric or qualifying knit fabric was exported 
to a producer in Haiti or to an entity control-
ling production; and 
‘‘(bb) identifying such producer or entity 
controlling production, and the quantity and 
description of qualifying woven fabric or quali-
fying knit fabric exported to such producer 
or entity controlling production. 
‘‘(IV) The Secretary of Commerce may require 
that a producer or entity controlling production 
submit documentation to verify purchases of quali-
fying woven fabric or qualifying knit fabric. 
‘‘(V) The Secretary of Commerce may make 
available to each person or entity identified in 
documentation submitted under subclause (III) or
H. R. 6124—648 
(IV) information contained in such documentation 
that relates to the purchase of qualifying woven 
fabric or qualifying knit fabric involving such per-
son or entity. 
‘‘(VI) The program under this subparagraph 
shall be established so as to allow, to the extent 
feasible, the submission, storage, retrieval, and 
disclosure of information in electronic format, 
including information with respect to the earned 
import 
allowance 
certificates 
required 
under 
subparagraph (A)(i). 
‘‘(VII) The Secretary of Commerce may rec-
oncile discrepancies in information provided under 
subclause (III) or (IV) and verify the accuracy of 
such information. 
‘‘(VIII) The Secretary of Commerce shall estab-
lish procedures to carry out the program under 
this subparagraph and may establish additional 
requirements to carry out this subparagraph. Such 
additional requirements may include— 
‘‘(aa) submissions by textile mills or other 
entities in the United States documenting 
exports of yarns wholly formed in the United 
States to countries described in paragraph 
(1)(B)(iii) for the manufacture of qualifying 
knit fabric; and 
‘‘(bb) procedures imposed on producers or 
entities controlling production to allow the 
Secretary of Commerce to obtain and verify 
information relating to the production of quali-
fying knit fabric. 
‘‘(iii) QUALIFYING
WOVEN
FABRIC
DEFINED.—For 
purposes of this subparagraph, the term ‘qualifying 
woven fabric’ means fabric wholly formed in the United 
States from yarns wholly formed in the United States, 
except that— 
‘‘(I) fabric otherwise eligible as qualifying 
woven fabric shall not be ineligible as qualifying 
woven fabric because the fabric contains nylon fila-
ment yarn to which section 213(b)(2)(A)(vii)(IV) 
applies; 
‘‘(II) fabric that would otherwise be ineligible 
as qualifying woven fabric because the fabric con-
tains yarns not wholly formed in the United States 
shall not be ineligible as qualifying woven fabric 
if the total weight of all such yarns is not more 
than 10 percent of the total weight of the fabric; 
and 
‘‘(III) fabric otherwise eligible as qualifying 
woven fabric shall not be ineligible as qualifying 
fabric because the fabric contains yarns covered 
by clause (i) or (ii) of paragraph (5)(A). 
‘‘(iv) QUALIFYING KNIT FABRIC DEFINED.—For pur-
poses of this subparagraph, the term ‘qualifying knit 
fabric’ means fabric or knit-to-shape components 
wholly formed or knit-to-shape in any country or any 
combination of countries described in paragraph
H. R. 6124—649 
(1)(B)(iii), from yarns wholly formed in the United 
States, except that— 
‘‘(I) fabric or knit-to-shape components other-
wise eligible as qualifying knit fabric shall not 
be ineligible as qualifying knit fabric because the 
fabric or knit-to-shape components contain nylon 
filament yarn to which section 213(b)(2)(A)(vii)(IV) 
applies; 
‘‘(II) fabric or knit-to-shape components that 
would otherwise be ineligible as qualifying knit 
fabric because the fabric or knit-to-shape compo-
nents contain yarns not wholly formed in the 
United States shall not be ineligible as qualifying 
knit fabric if the total weight of all such yarns 
is not more than 10 percent of the total weight 
of the fabric or knit-to-shape components; and 
‘‘(III) fabric or knit-to-shape components other-
wise eligible as qualifying knit fabric shall not 
be ineligible as qualifying knit fabric because the 
fabric or knit-to-shape components contain yarns 
covered by clause (i) or (ii) of paragraph (5)(A). 
‘‘(C) REVIEW BY UNITED STATES GOVERNMENT ACCOUNT-
ABILITY OFFICE.—The United States Government Account-
ability Office shall review the program established under 
subparagraph (B) annually for the purpose of evaluating 
the effectiveness of, and making recommendations for 
improvements in, the program. 
‘‘(D) ENFORCEMENT PROVISIONS.— 
‘‘(i) FRAUDULENT
CLAIMS
OF
PREFERENCE.—Any 
person who makes a false claim for preference under 
the program established under subparagraph (B) shall 
be subject to any applicable civil or criminal penalty 
that may be imposed under the customs laws of the 
United States or under title 18, United States Code. 
‘‘(ii) PENALTIES FOR OTHER FRAUDULENT INFORMA-
TION.—The Secretary of Commerce may establish and 
impose penalties for the submission to the Secretary 
of Commerce of fraudulent information under the pro-
gram established under subparagraph (B), other than 
a claim described in clause (i).’’. 
(e) SHORT SUPPLY RULES .—Section 213A(b) of the Caribbean 
Basin Economic Recovery Act is amended by adding at the end 
the following: 
‘‘(5) SHORT SUPPLY PROVISION.— 
‘‘(A) IN GENERAL.—Any apparel article that is wholly 
assembled, or knit-to-shape, in Haiti from any combination 
of fabrics, fabric components, components knit-to-shape, 
or yarns and is imported directly from Haiti or the Domini-
can Republic shall enter the United States free of duty, 
without regard to the source of the fabrics, fabric compo-
nents, components knit-to-shape, or yarns from which the 
article is made, if the fabrics, fabric components, compo-
nents knit-to-shape, or yarns comprising the component 
that determines the tariff classification of the article are 
of any of the following: 
‘‘(i) Fabrics or yarns, to the extent that apparel 
articles of such fabrics or yarns would be eligible for
H. R. 6124—650 
preferential treatment, without regard to the source 
of the fabrics or yarns, under Annex 401 of the NAFTA. 
‘‘(ii) Fabrics or yarns, to the extent that such fab-
rics or yarns are designated as not being available 
in commercial quantities for purposes of— 
‘‘(I) section 213(b)(2)(A)(v) of this Act; 
‘‘(II) section 112(b)(5) of the African Growth 
and Opportunity Act; 
‘‘(III) clause (i)(III) or (ii) of section 204(b)(3)(B) 
of the Andean Trade Preference Act; or 
‘‘(IV) any other provision, relating to deter-
mining whether a textile or apparel article is an 
originating good eligible for preferential treatment, 
of a law that implements a free trade agreement 
entered into by the United States that is in effect 
at the time the claim for preferential treatment 
is made. 
‘‘(B) REMOVAL OF DESIGNATION OF FABRICS OR YARNS 
NOT AVAILABLE IN COMMERCIAL QUANTITIES.—If the Presi-
dent determines that— 
‘‘(i) any fabric or yarn described in clause (i) of 
subparagraph (A) was determined to be eligible for 
preferential treatment, or 
‘‘(ii) any fabric or yarn described in clause (ii) 
of subparagraph (A) was designated as not being avail-
able in commercial quantities, 
on the basis of fraud, the President is authorized to remove 
the eligibility or designation (as the case may be) of that 
fabric or yarn with respect to articles entered after such 
removal.’’. 
(f) MISCELLANEOUS PROVISIONS.— 
(1) RELATIONSHIP
TO
OTHER
PREFERENTIAL
PROGRAMS.— 
Section 213A(b) of the Caribbean Basin Economic Recovery 
Act is amended by adding at the end the following: 
‘‘(6) OTHER PREFERENTIAL TREATMENT NOT AFFECTED.—The 
duty-free treatment provided under this subsection is in addi-
tion to any other preferential treatment under this title.’’. 
(2) DEFINITIONS.—Section 213A(a) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by 
adding at the end the following: 
‘‘(3) IMPORTED DIRECTLY FROM HAITI OR THE DOMINICAN 
REPUBLIC.—Articles are ‘imported directly from Haiti or the 
Dominican Republic’ if— 
‘‘(A) the articles are shipped directly from Haiti or 
the Dominican Republic into the United States without 
passing through the territory of any intermediate country; 
or 
‘‘(B) the articles are shipped from Haiti or the Domini-
can Republic into the United States through the territory 
of an intermediate country, and— 
‘‘(i) the articles in the shipment do not enter into 
the commerce of any intermediate country, and the 
invoices, bills of lading, and other shipping documents 
specify the United States as the final destination; or 
‘‘(ii) the invoices and other documents do not 
specify the United States as the final destination, but 
the articles in the shipment—
H. R. 6124—651 
‘‘(I) remain under the control of the customs 
authority in the intermediate country; 
‘‘(II) do not enter into the commerce of the 
intermediate country except for the purpose of a 
sale other than at retail; and 
‘‘(III) have not been subjected to operations 
in the intermediate country other than loading, 
unloading, or other activities necessary to preserve 
the articles in good condition. 
‘‘(4) KNIT-TO-SHAPE.—A good is ‘knit-to-shape’ if 50 percent 
or more of the exterior surface area of the good is formed 
by major parts that have been knitted or crocheted directly 
to the shape used in the good, with no consideration being 
given to patch pockets, applique´s, or the like. Minor cutting, 
trimming, or sewing of those major parts shall not affect the 
determination of whether a good is ‘knit-to-shape.’ 
‘‘(5) WHOLLY
ASSEMBLED.—A good is ‘wholly assembled’ 
in Haiti if all components, of which there must be at least 
two, pre-existed in essentially the same condition as found 
in the finished good and were combined to form the finished 
good in Haiti. Minor attachments and minor embellishments 
(for example, applique´s, beads, spangles, embroidery, and but-
tons) not appreciably affecting the identity of the good, and 
minor subassemblies (for example, collars, cuffs, plackets, and 
pockets), shall not affect the determination of whether a good 
is ‘wholly assembled’ in Haiti.’’. 
(g) TERMINATION.—Section 213A of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2703a) is amended by adding at 
the end the following new subsection: 
‘‘(g) TERMINATION.—Except as provided in subsection (b)(1), 
the duty-free treatment provided under this section shall remain 
in effect until September 30, 2018.’’. 
(h) CONFORMING AMENDMENTS.—Subsection (e)(1) of section 
213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2703a(e)(1)) is amended by striking ‘‘the Bureau of Customs and 
Border Protection’’ each place it appears and inserting ‘‘U.S. Cus-
toms and Border Protection’’. 
SEC. 
15403. 
LABOR 
OMBUDSMAN 
AND 
TECHNICAL 
ASSISTANCE 
IMPROVEMENT AND COMPLIANCE NEEDS ASSESSMENT 
AND REMEDIATION PROGRAM. 
Section 213A of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703a), as amended by section 15402 of this Act, is 
amended— 
(1) in subsection (a)— 
(A) by redesignating paragraph (5) as paragraph (8): 
(B) by redesignating paragraphs (2) through (4) as 
paragraphs (4) through (6), respectively; 
(C) by inserting after paragraph (1) the following new 
paragraphs: 
‘‘(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—. The term 
‘‘appropriate congressional committees’’ means the Committee 
on Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives. 
‘‘(3) CORE LABOR STANDARDS.—The term ‘‘core labor stand-
ards’’ means— 
‘‘(A) freedom of association;
H. R. 6124—652 
‘‘(B) the effective recognition of the right to bargain 
collectively; 
‘‘(C) the elimination of all forms of compulsory or forced 
labor; 
‘‘(D) the effective abolition of child labor and a prohibi-
tion on the worst forms of child labor; and 
‘‘(E) the elimination of discrimination in respect of 
employment and occupation.’’; and 
(D) by inserting after paragraph (6) (as redesignated) 
the following new paragraph: 
‘‘(7) TAICNAR PROGRAM.—The term ‘TAICNAR Program’ 
means the Technical Assistance Improvement and Compliance 
Needs Assessment and Remediation Program established 
pursuant to subsection (e).’’; 
(2) by redesignating subsections (e), (f), and (g) as sub-
sections (f), (g), and (h), respectively; and 
(3) by inserting after subsection (d) the following new sub-
section: 
‘‘(e) TECHNICAL ASSISTANCE IMPROVEMENT
AND COMPLIANCE 
NEEDS ASSESSMENT AND REMEDIATION PROGRAM.— 
‘‘(1) CONTINUED ELIGIBILITY FOR PREFERENCES.— 
‘‘(A) PRESIDENTIAL CERTIFICATION OF COMPLIANCE BY 
HAITI
WITH
REQUIREMENTS.—Upon the expiration of the 
16-month period beginning on the date of the enactment 
of the Haitian Hemispheric Opportunity through Partner-
ship Encouragement Act of 2008, Haiti shall continue to 
be eligible for the preferential treatment provided under 
subsection (b) only if the President determines and certifies 
to the Congress that— 
‘‘(i) Haiti has implemented the requirements set 
forth in paragraphs (2) and (3); and 
‘‘(ii) Haiti has agreed to require producers of arti-
cles for which duty-free treatment may be requested 
under subsection (b) to participate in the TAICNAR 
Program described in paragraph (3) and has developed 
a system to ensure participation in such program by 
such 
producers, 
including 
by 
developing 
and 
maintaining the registry described in paragraph 
(2)(B)(i). 
‘‘(B) EXTENSION.—The President may extend the period 
for compliance by Haiti under subparagraph (A) if the 
President— 
‘‘(i) determines that Haiti has made a good faith 
effort toward such compliance and has agreed to take 
additional steps to come into full compliance that are 
satisfactory to the President; and 
‘‘(ii) provides to the appropriate congressional 
committees, not later than 6 months after the last 
day of the 16-month period specified in subparagraph 
(A), and every 6 months thereafter, a report identifying 
the steps that Haiti has agreed to take to come into 
full compliance and the progress made over the pre-
ceding 6-month period in implementing such steps. 
‘‘(C) CONTINUING COMPLIANCE.— 
‘‘(i) TERMINATION OF PREFERENTIAL TREATMENT.— 
If, after making a certification under subparagraph 
(A), the President determines that Haiti is no longer
H. R. 6124—653 
meeting the requirements set forth in subparagraph 
(A), the President shall terminate the preferential 
treatment provided under subsection (b), unless the 
President determines, after consulting with the appro-
priate congressional committees, that meeting such 
requirements is not practicable because of extraor-
dinary circumstances existing in Haiti when the deter-
mination is made. 
‘‘(ii) SUBSEQUENT COMPLIANCE.—If the President, 
after terminating preferential treatment under clause 
(i), determines that Haiti is meeting the requirements 
set forth in subparagraph (A), the President shall 
reinstate the application of preferential treatment 
under subsection (b). 
‘‘(2) LABOR OMBUDSMAN.— 
‘‘(A) IN GENERAL.—The requirement under this para-
graph is that Haiti has established an independent Labor 
Ombudsman’s Office within the national government that— 
‘‘(i) reports directly to the President of Haiti; 
‘‘(ii) is headed by a Labor Ombudsman chosen 
by the President of Haiti, in consultation with Haitian 
labor unions and industry associations; and 
‘‘(iii) is vested with the authority to perform the 
functions described in subparagraph (B). 
‘‘(B) FUNCTIONS.—The functions of the Labor Ombuds-
man’s Office shall include— 
‘‘(i) developing and maintaining a registry of pro-
ducers of articles for which duty-free treatment may 
be requested under subsection (b), and developing, in 
consultation and coordination with any other appro-
priate officials of the Government of Haiti, a system 
to ensure participation by such producers in the 
TAICNAR Program described in paragraph (3); 
‘‘(ii) 
overseeing 
the 
implementation 
of 
the 
TAICNAR Program described in paragraph (3); 
‘‘(iii) receiving and investigating comments from 
any interested party regarding the conditions described 
in paragraph (3)(B) in facilities of producers listed 
in the registry described in clause (i) and, where appro-
priate, referring such comments or the result of such 
investigations to the appropriate Haitian authorities, 
or to the entity operating the TAICNAR Program 
described in paragraph (3); 
‘‘(iv) assisting, in consultation and coordination 
with any other appropriate Haitian authorities, pro-
ducers listed in the registry described in clause (i) 
in meeting the conditions set forth in paragraph (3)(B); 
and 
‘‘(v) coordinating, with the assistance of the entity 
operating the TAICNAR Program described in para-
graph (3), a tripartite committee comprised of appro-
priate 
representatives 
of 
government 
agencies, 
employers, and workers, as well as other relevant 
interested parties, for the purposes of evaluating 
progress in implementing the TAICNAR Program 
described 
in 
paragraph 
(3), 
and 
consulting 
on 
improving core labor standards and working conditions
H. R. 6124—654 
in the textile and apparel sector in Haiti, and on other 
matters of common concern relating to such core labor 
standards and working conditions. 
‘‘(3) TECHNICAL ASSISTANCE IMPROVEMENT AND COMPLIANCE 
NEEDS ASSESSMENT AND REMEDIATION PROGRAM.— 
‘‘(A) IN GENERAL.—The requirement under this para-
graph is that Haiti, in cooperation with the International 
Labor Organization, has established a Technical Assistance 
Improvement and Compliance Needs Assessment and 
Remediation Program meeting the requirements under 
subparagraph (C)— 
‘‘(i) to assess compliance by producers listed in 
the registry described in paragraph (2)(B)(i) with the 
conditions set forth in subparagraph (B) and to assist 
such producers in meeting such conditions; and 
‘‘(ii) to provide assistance to improve the capacity 
of the Government of Haiti— 
‘‘(I) to inspect facilities of producers listed in 
the registry described in paragraph (2)(B)(i); and 
‘‘(II) to enforce national labor laws and resolve 
labor 
disputes, 
including 
through 
measures 
described in subparagraph (E). 
‘‘(B) CONDITIONS DESCRIBED.—The conditions referred 
to in subparagraph (A) are— 
‘‘(i) compliance with core labor standards; and 
‘‘(ii) compliance with the labor laws of Haiti that 
relate directly to core labor standards and to ensuring 
acceptable conditions of work with respect to minimum 
wages, hours of work, and occupational health and 
safety. 
‘‘(C) 
REQUIREMENTS.—The 
requirements 
for 
the 
TAICNAR Program are that the program— 
‘‘(i) be operated by the International Labor 
Organization (or any subdivision, instrumentality, or 
designee thereof), which prepares the biannual reports 
described in subparagraph (D); 
‘‘(ii) be developed through a participatory process 
that includes the Labor Ombudsman described in para-
graph (2) and appropriate representatives of govern-
ment agencies, employers, and workers; 
‘‘(iii) assess compliance by each producer listed 
in the registry described in paragraph (2)(B)(i) with 
the conditions set forth in subparagraph (B) and iden-
tify any deficiencies by such producer with respect 
to meeting such conditions, including by— 
‘‘(I) conducting unannounced site visits to 
manufacturing facilities of the producer; 
‘‘(II) conducting confidential interviews sepa-
rately with workers and management of the facili-
ties of the producer; 
‘‘(III) providing to management and workers, 
and where applicable, worker organizations in the 
facilities of the producer, on a confidential basis— 
‘‘(aa) the results of the assessment carried 
out under this clause; and 
‘‘(bb) specific suggestions for remediating 
any such deficiencies;
H. R. 6124—655 
‘‘(iv) assist the producer in remediating any defi-
ciencies identified under clause (iii); 
‘‘(v) conduct prompt follow-up site visits to the 
facilities of the producer to assess progress on remedi-
ation of any deficiencies identified under clause (iii); 
and 
‘‘(vi) provide training to workers and management 
of the producer, and where appropriate, to other per-
sons or entities, to promote compliance with subpara-
graph (B). 
‘‘(D) BIANNUAL REPORT.—The biannual reports referred 
to in subparagraph (C)(i) are a report, by the entity oper-
ating the TAICNAR Program, that is published (and avail-
able to the public in a readily accessible manner) on a 
biannual basis, beginning 6 months after Haiti implements 
the TAICNAR Program under this paragraph, covering 
the preceding 6-month period, and that includes the fol-
lowing: 
‘‘(i) The name of each producer listed in the reg-
istry described in paragraph (2)(B)(i) that has been 
identified as having met the conditions under subpara-
graph (B). 
‘‘(ii) The name of each producer listed in the reg-
istry described in paragraph (2)(B)(i) that has been 
identified as having deficiencies with respect to the 
conditions under subparagraph (B), and has failed to 
remedy such deficiencies. 
‘‘(iii) For each producer listed under clause (ii)— 
‘‘(I) a description of the deficiencies found to 
exist and the specific suggestions for remediating 
such deficiencies made by the entity operating the 
TAICNAR Program; 
‘‘(II) a description of the efforts by the producer 
to remediate the deficiencies, including a descrip-
tion of assistance provided by any entity to assist 
in such remediation; and 
‘‘(III) with respect to deficiencies that have 
not been remediated, the amount of time that has 
elapsed since the deficiencies were first identified 
in a report under this subparagraph. 
‘‘(iv) For each producer identified as having defi-
ciencies with respect to the conditions described under 
subparagraph (B) in a prior report under this subpara-
graph, a description of the progress made in remedi-
ating such deficiencies since the submission of the 
prior report, and an assessment of whether any aspect 
of such deficiencies persists. 
‘‘(E) CAPACITY
BUILDING.—The assistance to the 
Government of Haiti referred to in subparagraph (A)(ii) 
shall include programs— 
‘‘(i) to review the labor laws and regulations of 
Haiti and to develop and implement strategies for 
bringing the laws and regulations into conformity with 
core labor standards; 
‘‘(ii) to develop additional strategies for facilitating 
protection of core labor standards and providing accept-
able conditions of work with respect to minimum
H. R. 6124—656 
wages, hours of work, and occupational safety and 
health, including through legal, regulatory, and institu-
tional reform; 
‘‘(iii) to increase awareness of worker rights, 
including under core labor standards and national 
labor laws; 
‘‘(iv) to promote consultation and cooperation 
between 
government 
representatives, 
employers, 
worker representatives, and United States importers 
on matters relating to core labor standards and 
national labor laws; 
‘‘(v) to assist the Labor Ombudsman appointed 
pursuant to paragraph (2) in establishing and coordi-
nating operation of the committee described in para-
graph (2)(B)(v); 
‘‘(vi) to assist worker representatives in more fully 
and effectively advocating on behalf of their members; 
and 
‘‘(vii) to provide on-the-job training and technical 
assistance to labor inspectors, judicial officers, and 
other relevant personnel to build their capacity to 
enforce national labor laws and resolve labor disputes. 
‘‘(4) COMPLIANCE WITH ELIGIBILITY CRITERIA.— 
‘‘(A) COUNTRY COMPLIANCE WITH WORKER RIGHTS ELIGI-
BILITY CRITERIA.—In making a determination of whether 
Haiti is meeting the requirement set forth in subsection 
(d)(1)(A)(vi) relating to internationally recognized worker 
rights, the President shall consider the reports produced 
under paragraph (3)(D). 
‘‘(B) PRODUCER ELIGIBILITY.— 
‘‘(i) IDENTIFICATION OF PRODUCERS.—Beginning in 
the second calendar year after the President makes 
the certification under paragraph (1)(A), the President 
shall identify on a biennial basis whether a producer 
listed in the registry described in paragraph (2)(B)(i) 
has failed to comply with core labor standards and 
with the labor laws of Haiti that directly relate to 
and are consistent with core labor standards. 
‘‘(ii) ASSISTANCE TO PRODUCERS; WITHDRAWAL, ETC., 
OF PREFERENTIAL TREATMENT.—For each producer that 
the President identifies under clause (i), the President 
shall seek to assist such producer in coming into 
compliance with core labor standards and with the 
labor laws of Haiti that directly relate to and are 
consistent with core labor standards. If such efforts 
fail, the President shall withdraw, suspend, or limit 
the application of preferential treatment under sub-
section (b) to articles of such producer. 
‘‘(iii) REINSTATING PREFERENTIAL TREATMENT.—If 
the President, after withdrawing, suspending, or lim-
iting the application of preferential treatment under 
clause (ii) to articles of a producer, determines that 
such producer is complying with core labor standards 
and with the labor laws of Haiti that directly relate 
to and are consistent with core labor standards, the 
President shall reinstate the application of preferential
H. R. 6124—657 
treatment under subsection (b) to the articles of the 
producer. 
‘‘(iv) CONSIDERATION OF REPORTS.—In making the 
identification under clause (i) and the determination 
under clause (iii), the President shall consider the 
reports made available under paragraph (3)(D). 
‘‘(5) REPORTS BY THE PRESIDENT.— 
‘‘(A) IN GENERAL.—Not later than one year after the 
date of the enactment of the Haitian Hemispheric Oppor-
tunity through Partnership Encouragement Act of 2008, 
and annually thereafter, the President shall transmit to 
the appropriate congressional committees a report on the 
implementation of this subsection during the preceding 
1-year period. 
‘‘(B) MATTERS TO BE INCLUDED.—Each report required 
by subparagraph (A) shall include the following: 
‘‘(i) An explanation of the efforts of Haiti, the Presi-
dent, and the International Labor Organization to 
carry out this subsection. 
‘‘(ii) A summary of each report produced under 
paragraph (3)(D) during the preceding 1-year period 
and a summary of the findings contained in such 
report. 
‘‘(iii) 
Identifications 
made 
under 
paragraph 
(4)(B)(i) and determinations made under paragraph 
(4)(B)(iii). 
‘‘(6) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection the sum 
of $10,000,000 for the period beginning on October 1, 2008, 
and ending on September 30, 2013.’’. 
SEC. 15404. PETITION PROCESS. 
Section 213A(d) of the Caribbean Basin Economic Recovery 
Act (19 U.S.C. 2703A(d)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) PETITION PROCESS.—Any interested party may file a 
request to have the status of Haiti reviewed with respect to 
the eligibility requirements listed in paragraph (1), and the 
President shall provide for this purpose the same procedures 
as those that are provided for reviewing the status of eligible 
beneficiary developing countries with respect to the designation 
criteria listed in subsections (b) and (c) of section 502 of the 
Trade Act of 1974 (19 U.S.C. 2642 (b) and (c)).’’. 
SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVEN-
TION. 
Section 213A(f) of the Caribbean Basin Economic Recovery 
Act, as redesignated by section 15403(2) of this Act, is amended 
by adding at the end the following new paragraph: 
‘‘(3) LIMITATION ON GOODS SHIPPED FROM THE DOMINICAN 
REPUBLIC.— 
‘‘(A) LIMITATION.—Notwithstanding subsection (a)(5), 
relating to the definition of ‘imported directly from Haiti 
or the Dominican Republic’, articles described in subsection 
(b) that are shipped from the Dominican Republic, directly 
or through the territory of an intermediate country, 
whether or not such articles undergo processing in the 
Dominican Republic, shall not be considered to be ‘imported
H. R. 6124—658 
directly from Haiti or the Dominican Republic’ until the 
President certifies to the Congress that Haiti and the 
Dominican Republic have developed procedures to prevent 
unlawful transshipment of the articles and the use of 
counterfeit documents related to the importation of the 
articles into the United States. 
‘‘(B) TECHNICAL AND OTHER ASSISTANCE.—The Commis-
sioner responsible for U.S. Customs and Border Protection 
shall provide technical and other assistance to Haiti and 
the Dominican Republic to develop expeditiously the proce-
dures described in subparagraph (A).’’. 
SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY. 
The President may exercise the authority under section 604 
of the Trade Act of 1974 to proclaim such modifications to the 
Harmonized Tariff Schedule of the United States as may be nec-
essary to carry out this part and the amendments made by this 
part. 
SEC. 15407. REGULATIONS AND PROCEDURES. 
The President shall issue such regulations as may be necessary 
to carry out the amendments made by sections 15402, 15403, and 
15404. Regulations to carry out the amendments made by section 
15402 shall be issued not later than September 30, 2008. The 
Secretary of Commerce shall issue such procedures as may be 
necessary to carry out the amendment made by section 15402(d) 
not later than September 30, 2008. 
SEC. 15408. EXTENSION OF CBTPA. 
Section 213(b) of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703(b)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (iii)— 
(i) in subclause (II)(cc), by striking ‘‘2008’’ and 
inserting ‘‘2010’’; and 
(ii) in subclause (IV)(dd), by striking ‘‘2008’’ and 
inserting ‘‘2010’’; and 
(B) in clause (iv)(II), by striking ‘‘6’’ and inserting 
‘‘8’’; and 
(2) in paragraph (5)(D)— 
(A) in clause (i), by striking ‘‘2008’’ and inserting 
‘‘2010’’; and 
(B) in clause (ii), by striking ‘‘108(b)(5)’’ and inserting 
‘‘section 108(b)(5)’’. 
SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE 
AND APPAREL PROVISIONS FOR HAITI. 
It is the sense of the Congress that the executive branch, 
particularly the Committee for the Implementation of Textile Agree-
ments (CITA), U.S. Customs and Border Protection of the Depart-
ment of Homeland Security, and the Department of Commerce, 
should interpret, implement, and enforce the provisions of section 
213A(b) of the Caribbean Basin Economic Recovery Act, as amended 
by section 15402 of this Act, relating to preferential treatment 
of textile and apparel articles, broadly in order to expand trade 
by maximizing opportunities for imports of articles eligible for pref-
erential treatment under such section 213A(b).
H. R. 6124—659 
SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI. 
It is the sense of the Congress that the Secretary of Commerce, 
in coordination with the United States Trade Representative, the 
Secretary of State, and the Commissioner responsible for U.S. Cus-
toms and Border Protection of the Department of Homeland Secu-
rity, should lead a trade mission to Haiti, within 6 months after 
the date of the enactment of this Act, to promote trade between 
the United States and Haiti, to promote new economic opportunities 
afforded under the amendments made by section 15402 of this 
Act, and to help educate United States and Haitian business con-
cerns about such opportunities. 
SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS. 
It is the sense of the Congress that Haiti, and other countries 
that receive preferences under trade preference programs of the 
United States that require effective visa systems to prevent trans-
shipment, should ensure that monetary compensation for such visas 
is not required beyond the costs of processing the visa, including 
ensuring that such monetary compensation does not violate an 
applicable system to combat corruption and bribery. 
SEC. 15412. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection (b), this 
part and the amendments made by this part shall take effect 
on the date of the enactment of this Act. 
(b) EXCEPTION.—The amendments made by section 15402 shall 
take effect on October 1, 2008, and shall apply to articles entered, 
or withdrawn from warehouse for consumption, on or after that 
date. 
PART II—MISCELLANEOUS TRADE 
PROVISIONS 
SEC. 15421. UNUSED MERCHANDISE DRAWBACK. 
(a) IN GENERAL.—Section 313(j)(2) of the Tariff Act of 1930 
(19 U.S.C. 1313(j)(2)) is amended by adding at the end the following: 
‘‘For purposes of subparagraph (A) of this paragraph, wine of the 
same color having a price variation not to exceed 50 percent between 
the imported wine and the exported wine shall be deemed to be 
commercially interchangeable.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to claims filed for drawback under section 
313(j)(2) of the Tariff Act of 1930 on or after the date of the 
enactment of this Act. 
SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANS-
ACTION VALUE OF IMPORTED MERCHANDISE. 
(a) REQUIREMENT ON IMPORTERS.— 
(1) IN GENERAL.—Pursuant to sections 484 and 485 of the 
Tariff Act of 1930 (19 U.S.C. 1484 and 1485), the Commissioner 
responsible for U.S. Customs and Border Protection shall 
require each importer of merchandise to provide to U.S. Cus-
toms and Border Protection at the time of entry of the merchan-
dise the information described in paragraph (2). 
(2) INFORMATION REQUIRED.—The information referred to 
in paragraph (1) is a declaration as to whether the transaction 
value of the imported merchandise is determined on the basis
H. R. 6124—660 
of the price paid by the buyer in the first or earlier sale 
occurring prior to introduction of the merchandise into the 
United States. 
(3) EFFECTIVE DATE.—The requirement to provide informa-
tion under this subsection shall be effective for the 1-year 
period beginning 90 days after the date of the enactment of 
this Act. 
(b) REPORT TO INTERNATIONAL TRADE COMMISSION.— 
(1) IN GENERAL.—The Commissioner responsible for U.S. 
Customs and Border Protection shall submit to the United 
States International Trade Commission on a monthly basis 
for the 1-year period specified in subsection (a)(3) a report 
on the information provided by importers under subsection 
(a)(2) during the preceding month. The report required under 
this paragraph shall be submitted in a form agreed upon 
between U.S. Customs and Border Protection and the United 
States International Trade Commission. 
(2) MATTERS TO BE INCLUDED.—The report required under 
paragraph (1) shall include— 
(A) the number of importers that declare the trans-
action value of the imported merchandise is determined 
on the basis of the method described in subsection (a)(2); 
(B) the tariff classification of such imported merchan-
dise under the Harmonized Tariff Schedule of the United 
States; and 
(C) the transaction value of such imported merchan-
dise. 
(c) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 90 days after the submis-
sion of the final report under subsection (b), the United States 
International Trade Commission shall submit to the appro-
priate congressional committees a report on the information 
contained in all reports submitted under subsection (b). 
(2) MATTERS TO BE INCLUDED.—The report required under 
paragraph (1) shall include— 
(A) the aggregate number of importers that declare 
the transaction value of the imported merchandise is deter-
mined on the basis of the method described in subsection 
(a)(2), including a description of the frequency of the use 
of such method; 
(B) the tariff classification of such imported merchan-
dise under the Harmonized Tariff Schedule of the United 
States on an aggregate basis, including an analysis of 
the tariff classification of such imported merchandise on 
a sectoral basis; 
(C) the aggregate transaction value of such imported 
merchandise, including an analysis of the transaction value 
of such imported merchandise on a sectoral basis; and 
(D) the aggregate transaction value of all merchandise 
imported into the United States during the 1-year period 
specified in subsection (a)(3). 
(d) SENSE OF CONGRESS REGARDING PROHIBITION ON PROPOSED 
INTERPRETATION OF THE TERM ‘‘SOLD FOR EXPORTATION TO THE 
UNITED STATES’’.— 
(1) IN
GENERAL.—It is the sense of Congress that the 
Commissioner responsible for U.S. Customs and Border Protec-
tion should not implement a change to U.S. Customs and Border
H. R. 6124—661 
Protection’s interpretation (as such interpretation is in effect 
on the date of the enactment of this Act) of the term ‘‘sold 
for exportation to the United States’’, as described in section 
402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for pur-
poses of applying the transaction value of the imported mer-
chandise in a series of sales, before January 1, 2011. 
(2) EXCEPTION.—It is the sense of Congress that beginning 
on January 1, 2011, the Commissioner responsible for U.S. 
Customs and Border Protection may propose to change or 
change U.S. Customs and Border Protection’s interpretation 
of the term ‘‘sold for exportation to the United States’’, as 
described in paragraph (1), only if U.S. Customs and Border 
Protection— 
(A) consults with, and provides notice to, the appro-
priate congressional committees— 
(i) not less than 180 days prior to proposing a 
change; and 
(ii) not less than 90 days prior to publishing a 
change; 
(B) consults with, provides notice to, and takes into 
consideration views expressed by, the Commercial Oper-
ations Advisory Committee— 
(i) not less than 120 days prior to proposing a 
change; and 
(ii) not less than 60 days prior to publishing a 
change; and 
(C) receives the explicit approval of the Secretary of 
the Treasury prior to publishing a change. 
(3) CONSIDERATION OF INTERNATIONAL TRADE COMMISSION 
REPORT.—It is the sense of Congress that prior to publishing 
a change to U.S. Customs and Border Protection’s interpreta-
tion (as such interpretation is in effect on the date of the 
enactment of this Act) of the term ‘‘sold for exportation to 
the United States’’, as described in section 402(b) of the Tariff 
Act of 1930 (19 U.S.C. 1401a(b)), for purposes of applying 
the transaction value of the imported merchandise in a series 
of sales, the Commissioner responsible for U.S. Customs and 
Border Protection should take into consideration the matters 
included in the report prepared by the United States Inter-
national Trade Commission under subsection (c). 
(e) DEFINITIONS.—In this section: 
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’’ means the Committee 
on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate. 
(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The 
term ‘‘Commercial Operations Advisory Committee’’ means the 
Advisory Committee established pursuant to section 9503(c) 
of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 
2071 note) or any successor committee. 
(3) IMPORTER.—The term ‘‘importer’’ means one of the par-
ties qualifying as an ‘‘importer of record’’ under section 
484(a)(2)(B) in the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)). 
(4) TRANSACTION VALUE OF THE IMPORTED MERCHANDISE.— 
The term ‘‘transaction value of the imported merchandise’’ has
H. R. 6124—662 
the meaning described in section 402(b) of the Tariff Act of 
1930 (19 U.S.C. 1401a(b)). 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.