5602 or 5603 of the HTS and are
formed in the United States).
‘‘(II) Fabrics or fabric compo-
nents formed, or components knit-to-
shape, in 1 or more ATPEA bene-
ficiary countries, from yarns formed
in 1 or more ATPEA beneficiary
countries, if such fabrics (including
fabrics not formed from yarns, if such
fabrics are classifiable under heading
5602 or 5603 of the HTS and are
formed in 1 or more ATPEA bene-
ficiary countries) are in chief weight
of llama, or alpaca.
‘‘(III) Fabrics or yarns, without
regard to where they are formed, if
such fabrics or yarns are classifiable
under headings of the HTS from
which a change in tariff classification
is allowed under the applicable rules
for the good under General Note 12(t)
of the HTS (except for goods classifi-
able under heading 6212.10 of the
HTS), without regard to whether the
components of such yarns or fabrics
determine the tariff classification of
the apparel article, except that if such
yarns or fabrics are used to produce
knit-to-shape components, the compo-
nents must be knit-to-shape in the
United States or in 1 or more
ATPEA beneficiary countries.
‘‘(ii) ADDITIONAL
FABRICS.—At the
request of any interested party, the Presi-
dent is authorized to proclaim additional
fabrics and yarns as eligible for pref-
erential treatment under clause (i)(III)
if—
‘‘(I) the President determines
that such fabrics or yarns cannot be
supplied by the domestic industry in
commercial quantities in a timely
manner;
‘‘(II) the President has obtained
advice regarding the proposed action
from the appropriate advisory com-
mittee established under section 135
of the Trade Act of 1974 (19 U.S.C.
2155) and the United States Inter-
national Trade Commission;
‘‘(III) within 60 days after the
request, the President has submitted
a report to the Committee on Ways
and Means of the House of Rep-
resentatives and the Committee on Fi-
nance of the Senate that sets forth
the action proposed to be proclaimed
and the reasons for such action, and
the advice obtained under subclause
(II);
‘‘(IV) a period of 60 calendar
days, beginning with the first day on
which the President has met the re-
quirements of subclause (III), has ex-
pired; and
‘‘(V) the President has consulted
with such committees regarding the
proposed action during the period re-
ferred to in subclause (III).
‘‘(iii) APPAREL ARTICLES ASSEMBLED
IN 1 OR MORE ATPEA BENEFICIARY COUN-
TRIES
FROM
REGIONAL
FABRICS
OR
RE-
GIONAL COMPONENTS.—(I) Subject to the
limitation set forth in subclause (II), ap-
parel articles sewn or otherwise assembled
in 1 or more ATPEA beneficiary countries
from fabrics or from fabric components
formed or from components knit-to-shape,
in 1 or more ATPEA beneficiary countries,
from yarns formed in the United States or
in 1 or more ATPEA beneficiary countries
(including fabrics not formed from yarns,
if such fabrics are classifiable under head-
ing 5602 or 5603 of the HTS and are
formed in 1 or more ATPEA beneficiary
countries), whether or not the apparel arti-
cles are also made from any of the fabrics,
fabric components formed, or components
knit-to-shape described in clause (i).
‘‘(II) The preferential treatment re-
ferred to in subclause (I) shall be extended
in the 1-year period beginning December
1, 2001, and in each of the 5 succeeding
1-year periods, to imports of apparel arti-
cles in an amount not to exceed the appli-
cable percentage of the aggregate square
meter equivalents of all apparel articles im-
ported into the United States in the pre-
ceding 12-month period for which data are
available.
‘‘(III) For purposes of subclause (II),
the term ‘applicable percentage’ means 3
percent for the 1-year period beginning
December 1, 2001, increased in each of the
5 succeeding 1-year periods by equal incre-
ments, so that for the period beginning
December 1, 2005, the applicable percent-
age does not exceed 6 percent.
‘‘(iv) HANDLOOMED, HANDMADE, AND
FOLKLORE
ARTICLES.—A 
handloomed,
handmade, or folklore article of an ATPEA
beneficiary country identified under sub-
paragraph (C) that is certified as such by
the competent authority of such beneficiary
country.
‘‘(v) SPECIAL RULES.—
‘‘(I) EXCEPTION
FOR
FINDINGS
AND
TRIMMINGS.—An article other-
wise eligible for preferential treatment
under this paragraph shall not be in-
eligible for such treatment because the
article contains findings or trimmings
of foreign origin, if such findings and
trimmings do not exceed 25 percent of
the cost of the components of the as-
sembled product. Examples of find-
ings and trimmings are sewing thread,
hooks and eyes, snaps, buttons, ‘bow
buds’, decorative lace, trim, elastic
strips, zippers, including zipper tapes
and labels, and other similar products.
‘‘(II) CERTAIN
INTERLINING.—
(aa) An article otherwise eligible for
preferential 
treatment 
under 
this
paragraph shall not be ineligible for
such treatment because the article
contains certain interlinings of foreign
origin, if the value of such interlinings
(and any findings and trimmings)
does not exceed 25 percent of the cost
of the components of the assembled
article.
‘‘(bb) Interlinings eligible for the
treatment described in division (aa)
include only a chest type plate, ‘hymo’
piece, or ‘sleeve header’, of woven or
weft-inserted warp knit construction
and of coarse animal hair or man-
made filaments.
agree to consult within the time pe-
riod specified under section 4.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential treatment under
paragraph (1) or (3) shall comply with
customs procedures similar in all material
respects to the requirements of Article
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.—
‘‘(I) IN GENERAL.—In order to
qualify for the preferential treatment
under paragraph (1) or (3) 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 Presi-
dent that each country described in
subclause (II)—
‘‘(aa) has implemented and
follows; or
‘‘(bb) is making substantial
progress 
toward 
implementing
and following,
procedures and requirements similar
in all material respects to the relevant
procedures and requirements under
chapter 5 of the NAFTA.
‘‘(II) COUNTRY
DESCRIBED.—A
country is described in this subclause
if 
it 
is 
an 
ATPEA 
beneficiary
country—
‘‘(aa) from which the article
is exported; or
‘‘(bb) in which materials
used in the production of the ar-
ticle originate or in which the ar-
ticle or such materials undergo
production that contributes to a
claim that the article is eligible
for preferential treatment under
paragraph (1) or (3).
‘‘(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 (1) 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.
‘‘(5) DEFINITIONS.—In this subsection—
‘‘(A) ANNEX.—The term ‘the Annex’
means Annex 300-B of the NAFTA.
‘‘(B) ATPEA BENEFICIARY
COUNTRY.—
The term ‘ATPEA beneficiary country’ means
any ‘beneficiary country’, as defined in section
203(a)(1) of this title, which the President des-
ignates as an ATPEA beneficiary country, tak-
ing into account the criteria contained in sub-
sections (b) and (c) of section 203 and other
appropriate criteria, including the following:
‘‘(i) Whether the beneficiary country
has demonstrated a commitment to—
‘‘(I) undertake its obligations
under the WTO, including those
agreements listed in section 101(d) of
the Uruguay Round Agreements Act,
on or ahead of schedule; and
‘‘(II) participate in negotiations
toward the completion of the FTAA
or another free trade agreement.
‘‘(ii) The extent to which the country
provides protection of intellectual property
rights consistent with or greater than the
protection afforded under the Agreement
on Trade-Related Aspects of Intellectual
Property 
Rights 
described 
in 
section
101(d)(15) of the Uruguay Round Agree-
ments Act.
‘‘(iii) The extent to which the country
provides internationally recognized worker
rights, including—
‘‘(I) the right of association;
‘‘(II) the right to organize and
bargain collectively;
‘‘(III) a prohibition on the use of
any form of forced or compulsory
labor;
‘‘(IV) a minimum age for the em-
ployment of children; and
‘‘(V) acceptable conditions of
work with respect to minimum wages,
hours of work, and occupational safe-
ty and health;
‘‘(iv) Whether the country has imple-
mented its commitments to eliminate the
worst forms of child labor, as defined in
section 507(6) of the Trade Act of 1974.
‘‘(v) The extent to which the country
has met the counter-narcotics certification
criteria set forth in section 490 of the For-
eign Assistance Act of 1961 (22 U.S.C.
2291j) for eligibility for United States as-
sistance.
‘‘(vi) The extent to which the country
has taken steps to become a party to and
implements the Inter-American Convention
Against Corruption.
‘‘(vii) The extent to which the
country—
‘‘(I) applies transparent, non-
discriminatory, and competitive proce-
dures in government procurement
equivalent to those contained in the
Agreement on Government Procure-
ment described in section 101(d)(17)