108TH CONGRESS
2D SESSION
H. R. 4103
AN ACT
To extend and modify the trade benefits under the
African Growth and Opportunity Act.
108TH CONGRESS
2D SESSION
H. R. 4103
AN ACT
To extend and modify the trade benefits under the African
Growth and Opportunity Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘AGOA Acceleration
Act of 2004’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The African Growth and Opportunity Act
(in this section and section 3 referred to as ‘‘the
Act’’) has helped to spur economic growth and bol-
ster economic reforms in the countries of sub-Saha-
ran Africa and has fostered stronger economic ties
between the countries of sub-Saharan Africa and the
United States; as a result, exports from the United
States to sub-Saharan Africa reached record levels
after the enactment of the Act, while exports from
sub-Saharan Africa to the United States have in-
creased considerably.
(2) The Act’s eligibility requirements have rein-
forced democratic values and the rule of law, and
have strengthened adherence to internationally rec-
ognized worker rights in eligible sub-Saharan Afri-
can countries.
(3) The Act has helped to bring about substan-
tial increases in foreign investment in sub-Saharan
Africa, especially in the textile and apparel sectors,
where tens of thousands of new jobs have been cre-
ated.
(4) As a result of the Agreement on Textiles
and Apparel of the World Trade Organization, under
which quotas maintained by WTO member countries
on textile and apparel products end on January 1,
2005, sub-Saharan Africa’s textile and apparel in-
dustry will be severely challenged by countries whose
industries are more developed and have greater ca-
pacity, economies of scale, and better infrastructure.
(5) The underdeveloped physical and financial
infrastructure in sub-Saharan Africa continues to
discourage investment in the region.
(6) Regional integration establishes a founda-
tion on which sub-Saharan African countries can co-
ordinate and pursue policies grounded in African in-
terests and history to achieve sustainable develop-
ment.
(7) Expanded trade because of the Act has im-
proved fundamental economic conditions within sub-
Saharan Africa. The Act has helped to create jobs
in the poorest region of the world, and most sub-Sa-
haran African countries have sought to take advan-
tage of the opportunities provided by the Act.
(8) Agricultural biotechnology holds promise for
helping solve global food security and human health
crises in Africa and, according to recent studies, has
made contributions to the protection of the environ-
ment by reducing the application of pesticides, re-
ducing soil erosion, and creating an environment
more hospitable to wildlife.
(9) (A) One of the greatest challenges facing
African countries continues to be the HIV/AIDS epi-
demic, which has infected as many as one out of
every four people in some countries, creating tre-
mendous social, political, and economic costs. Afri-
can countries need continued United States financial
and technical assistance to combat this epidemic.
(B) More awareness and involvement by govern-
ments are necessary. Countries like Uganda, recog-
nizing the threat of HIV/AIDS, have boldly attacked
it through a combination of education, public aware-
ness, enhanced medical infrastructure and resources,
and greater access to medical treatment. An effec-
tive HIV/AIDS prevention and treatment strategy
involves all of these steps.
(10) African countries continue to need trade
capacity assistance to establish viable economic ca-
pacity, a well-grounded rule of law, and efficient
government practices.
SEC. 3. STATEMENT OF POLICY.
The Congress supports—
(1) a continued commitment to increase trade
between the United States and sub-Saharan Africa
and increase investment in sub-Saharan Africa to
the benefit of workers, businesses, and farmers in
the United States and in sub-Saharan Africa, in-
cluding by developing innovative approaches to en-
courage development and investment in sub-Saharan
Africa;
(2) a reduction of tariff and nontariff barriers
and other obstacles to trade between the countries of
sub-Saharan Africa and the United States, with par-
ticular emphasis on reducing barriers to trade in
emerging sectors of the economy that have the
greatest potential for development;
(3) development of sub-Saharan Africa’s phys-
ical and financial infrastructure;
(4) international efforts to fight HIV/AIDS,
malaria, tuberculosis, other infectious diseases, and
serious public health problems;
(5) many of the aims of the New Partnership
for African Development (NEPAD), which include—
(A) reducing poverty and increasing eco-
nomic growth;
(B) promoting peace, democracy, security,
and human rights;
(C) promoting African integration by deep-
ening linkages between African countries and
by accelerating Africa’s economic and political
integration into the rest of the world;
(D) attracting investment, debt relief, and
development assistance;
(E) promoting trade and economic diver-
sification;
(F) broadening global market access for
United States and African exports;
(G) improving transparency, good govern-
ance, and political accountability;
(H) expanding access to social services,
education, and health services with a high pri-
ority given to addressing HIV/AIDS, malaria,
tuberculosis, other infectious diseases, and
other public health problems;
(I) promoting the role of women in social
and economic development by reinforcing edu-
cation and training and by assuring their par-
ticipation in political and economic arenas; and
(J) building the capacity of governments in
sub-Saharan Africa to set and enforce a legal
framework, as well as to enforce the rule of law;
(6) negotiation of reciprocal trade agreements
between the United States and sub-Saharan African
countries, with the overall goal of expanding trade
across all of sub-Saharan Africa;
(7) the President seeking to negotiate, with in-
terested eligible sub-Saharan African countries, bi-
lateral trade agreements that provide investment op-
portunities, in accordance with section 2102(b)(3) of
the Trade Act of 2002 (19 U.S.C. 3802(b)(3));
(8) efforts by the President to negotiate with
the member countries of the Southern African Cus-
toms Union in order to provide the opportunity to
deepen and make permanent the benefits of the Act
while giving the United States access to the markets
of these African countries for United States goods
and services, by reducing tariffs and non-tariff bar-
riers, strengthening intellectual property protection,
improving transparency, establishing general dispute
settlement mechanisms, and investor-state and state-
to-state dispute settlement mechanisms in invest-
ment;
(9) a comprehensive and ambitious trade agree-
ment with the Southern African Customs Union,
covering all products and sectors, in order to mature
the economic relationship between sub-Saharan Afri-
can countries and the United States and because
such an agreement would deepen United States eco-
nomic and political ties to the region, lend momen-
tum to United States development efforts, encourage
greater United States investment, and promote re-
gional integration and economic growth;
(10) regional integration among sub-Saharan
African countries and business partnerships between
United States and African firms; and
(11) economic diversification in sub-Saharan
African countries and expansion of trade beyond tex-
tiles and apparel.
SEC. 4. SENSE OF CONGRESS ON RECIPROCITY AND RE-
GIONAL ECONOMIC INTEGRATION.
It is the sense of the Congress that—
(1) the preferential market access opportunities
for eligible sub-Saharan African countries will be
complemented and enhanced if those countries are
implementing actively and fully, consistent with any
remaining applicable phase-in periods, their obliga-
tions under the World Trade Organization, including
obligations under the Agreement on Trade-Related
Aspects of Intellectual Property, the Agreement on
the Application of Sanitary and Phytosanitary Meas-
ures, and the Agreement on Trade-Related Invest-
ment Measures, as well as the other agreements de-
scribed in section 101(d) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d));
(2) eligible sub-Saharan African countries
should participate in and support mutual trade liber-
alization in ongoing negotiations under the auspices
of the World Trade Organization, including by mak-
ing reciprocal commitments with respect to improv-
ing market access for industrial and agricultural
goods, and for services, recognizing that such com-
mitments may need to reflect special and differential
treatment for developing countries;
(3) some of the most pernicious trade barriers
against exports by developing countries are the trade
barriers maintained by other developing countries;
therefore, eligible sub-Saharan African countries will
benefit from the reduction of trade barriers in other
developing countries, especially in developing coun-
tries that represent some of the greatest potential
markets for African goods and services; and
(4) all countries should make sanitary and
phytosanitary decisions on the basis of sound
science.
SEC. 5. SENSE OF CONGRESS ON INTERPRETATION OF TEX-
TILE AND APPAREL PROVISIONS OF AGOA.
It is the sense of the Congress that the executive
branch, particularly the Committee for the Implementa-
tion of Textile Agreements (CITA), the Bureau of Cus-
toms and Border Protection of the Department of Home-
land Security, and the Department of Commerce, should
interpret, implement, and enforce the provisions of section
112 of the African Growth and Opportunity Act, relating
to preferential treatment of textile and apparel articles,
broadly in order to expand trade by maximizing opportuni-
ties for imports of such articles from eligible sub-Saharan
African countries.
SEC. 6. DEFINITION.
In this Act, the term ‘‘eligible sub-Saharan African
country’’ means an eligible sub-Saharan African country
under the African Growth and Opportunity Act.
SEC. 7. EXTENSION OF AFRICAN GROWTH AND OPPOR-
TUNITY ACT.
(a) GENERALIZED SYSTEM OF PREFERENCES.—
(1) EXTENSION OF PROGRAM.—Section 506B
of the Trade Act of 1974 (19 U.S.C. 2466b) is
amended by striking ‘‘2008’’ and inserting ‘‘2015’’.
(2) INPUTS FROM FORMER BENEFICIARY COUN-
TRIES.—Section 506A of the Trade Act of 1974 (19
U.S.C. 2466a) is amended—
(A) in subsection (b)(2)(B), by inserting
‘‘or former beneficiary sub-Saharan African
countries’’ after ‘‘countries’’; and
(B) in subsection (c)—
(i) by striking ‘‘title, the terms’’ and
inserting ‘‘title—
‘‘(1) the terms’’; and
(ii) by adding at the end the fol-
lowing:
‘‘(2) the term ‘former beneficiary sub-Saharan
African country’ means a country that, after being
designated as a beneficiary sub-Saharan African
country under the African Growth and Opportunity
Act, ceased to be designated as such a country by
reason of its entering into a free trade agreement
with the United States.’’.
(b) APPAREL ARTICLES.—(1) Section 112(b)(1) of
the African Growth and Opportunity Act (19 U.S.C.
3721(b)(1)) is amended by striking ‘‘(including’’ and in-
serting ‘‘or both (including’’.
(2) Section 112(b)(3) of the African Growth and Op-
portunity Act (19 U.S.C. 3721 (b)(3)) is amended—
(A) in the matter preceding subparagraph
(A)—
(i) by striking ‘‘either in the United States
or one or more beneficiary sub-Saharan African
countries’’ each place it appears and inserting
‘‘in the United States or one or more bene-
ficiary sub-Saharan African countries or former
beneficiary sub-Saharan African countries, or
both’’; and
(ii) by striking ‘‘subject to the following:’’
and inserting ‘‘whether or not the apparel arti-
cles are also made from any of the fabrics, fab-
ric components formed, or components knit-to-
shape described in paragraph (1) or (2) (unless
the apparel articles are made exclusively from
any of the fabrics, fabric components formed, or
components knit-to-shape described in para-
graph (1) or (2)), subject to the following:’’;
and
(B) by striking subparagraphs (A) and (B) and
inserting the following:
‘‘(A) LIMITATIONS ON BENEFITS.—
‘‘(i) IN GENERAL.—Preferential treat-
ment under this paragraph shall be ex-
tended in the 1-year period beginning Oc-
tober 1, 2003, and in each of the 11 suc-
ceeding 1-year periods, to imports of ap-
parel articles in an amount not to exceed
the applicable percentage of the aggregate
square meter equivalents of all apparel ar-
ticles imported into the United States in
the preceding 12-month period for which
data are available.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of this subparagraph, the term
‘applicable percentage’ means—
‘‘(I) 4.747 percent for the 1-year
period beginning October 1, 2003, in-
creased in each of the 5 succeeding 1-
year periods by equal increments, so
that for the 1-year period beginning
October 1, 2007, the applicable per-
centage does not exceed 7 percent;
and
‘‘(II) for each succeeding 1-year
period until September 30, 2015, not
to exceed 7 percent.
‘‘(B) SPECIAL RULE FOR LESSER DEVEL-
OPED COUNTRIES.—
‘‘(i) IN GENERAL.—Preferential treat-
ment under this paragraph shall be ex-
tended though September 30, 2007, for ap-
parel articles wholly assembled, or knit-to-
shape and wholly assembled, or both, in
one or more lesser developed beneficiary
sub-Saharan African countries, regardless
of the country of origin of the fabric or the
yarn used to make such articles, in an
amount not to exceed the applicable per-
centage of the aggregate square meter
equivalents of all apparel articles imported
into the United States in the preceding 12-
month period for which data are available.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of the subparagraph, the term
‘applicable percentage’ means—
‘‘(I) 2.3571 percent for the 1-
year period beginning October 1,
2003;
‘‘(II) 2.6428 percent for the 1-
year period beginning October 1,
2004;
‘‘(III) 2.9285 percent for the 1-
year period beginning October 1,
2005; and
‘‘(IV) 1.6071 percent for the 1-
year period beginning October 1,
2006.
‘‘(iii) LESSER
DEVELOPED
BENE-
FICIARY
SUB-SAHARAN
AFRICAN
COUN-
TRY.—For purposes of this subparagraph,
the term ‘lesser developed beneficiary sub-
Saharan African country’ means—
‘‘(I) a beneficiary sub-Saharan
African country that had a per capita
gross national product of less than
$1,500 in 1998, as measured by the
International Bank for Reconstruction
and Development;
‘‘(II) Botswana; and
‘‘(III) Namibia.’’.
(3) Section 112(b)(5)(A) of the African Growth and
Opportunity Act (19 U.S.C. 3721(b)(5)(A)) is amended
to read as follows:
‘‘(A) IN GENERAL.—Apparel articles that
are both cut (or knit-to-shape) and sewn or oth-
erwise assembled in one or more beneficiary
sub-Saharan African countries, to the extent
that apparel articles of such fabrics or yarns
would be eligible for preferential treatment,
without regard to the source of the fabrics or
yarns, under Annex 401 to the NAFTA.’’.
(c) HANDLOOMED, HANDMADE, FOLKLORE ARTI-
CLES
AND
ETHNIC
PRINTED
FABRICS.—Section
112(b)(6) of the African Growth and Opportunity Act (19
U.S.C. 3721(b)(6)) is amended to read as follows:
‘‘(6) HANDLOOMED, 
HANDMADE, 
FOLKLORE
ARTICLES AND ETHNIC PRINTED FABRICS.—
‘‘(A) IN GENERAL.—A handloomed, hand-
made, folklore article or an ethnic printed fab-
ric of a beneficiary sub-Saharan African coun-
try or countries that is certified as such by the
competent authority of such beneficiary country
or countries. For purposes of this section, the
President, after consultation with the bene-
ficiary sub-Saharan African country or coun-
tries concerned, shall determine which, if any,
particular textile and apparel goods of the coun-
try (or countries) shall be treated as being
handloomed, handmade, or folklore articles or
an ethic printed fabric.
‘‘(B) REQUIREMENTS FOR ETHNIC PRINT-
ED
FABRIC.—Ethnic printed fabrics qualified
under this paragraph are—
‘‘(i) fabrics containing a selvedge on
both edges, having a width of less than 50
inches, 
classifiable 
under 
subheading
5208.52.30 or 5208.52.40 of the Har-
monized Tariff Schedule of the United
States;
‘‘(ii) of the type that contains designs,
symbols, and other characteristics of Afri-
can prints—
‘‘(I) normally produced for and
sold on the indigenous African mar-
ket; and
‘‘(II) normally sold in Africa by
the piece as opposed to being tailored
into garments before being sold in in-
digenous African markets;
‘‘(iii) printed, including waxed, in one
or more eligible beneficiary sub-Saharan
countries; and
‘‘(iv) fabrics formed in the United
States, from yarns formed in the United
States, or from fabric formed in one or
more 
beneficiary 
sub-Saharan 
African
country from yarn originating in either the
United States or one or more beneficiary
sub-Saharan African countries.’’.
(d) 
REGIONAL
AND
U.S. 
SOURCES.—Section
112(b)(7) of the African Growth and Opportunity Act (19
U.S.C. 3721(b)(7)) is amended by inserting ‘‘or former
beneficiary sub-Saharan African countries’’ after ‘‘and one
or more beneficiary sub-Saharan African countries’’ each
place it appears.
(e) SPECIAL RULES.—
(1) CERTAIN COMPONENTS.—Section 112(d) of
the African Growth and Opportunity Act (19 U.S.C.
3721(d)) is amended by adding at the end the fol-
lowing:
‘‘(3) CERTAIN COMPONENTS.—An article other-
wise eligible for preferential treatment under this
section will not be ineligible for such treatment be-
cause the article contains—
‘‘(A) any collars or cuffs (cut or knit-to-
shape),
‘‘(B) drawstrings,
‘‘(C) shoulder pads or other padding,
‘‘(D) waistbands,
‘‘(E) belt attached to the article,
‘‘(F) straps containing elastic, or
‘‘(G) elbow patches,
that do not meet the requirements set forth in sub-
section (b), regardless of the country of origin of the
item referred to in the applicable subparagraph of
this paragraph.’’.
(2) DE MINIMIS RULE.—Section 112(d)(2) of
the African Growth and Opportunity Act (19 U.S.C.
3721(d)(2)) is amended—
(A) by inserting ‘‘or former beneficiary
sub-Saharan African countries’’ after ‘‘coun-
tries’’; and
(B) by striking ‘‘7 percent’’ and inserting
‘‘10 percent’’.
(f) DEFINITIONS.—Section 112(e) of the African
Growth and Opportunity Act (19 U.S.C. 3721(e)) is
amended by adding at the end the following:
‘‘(4) FORMER
SUB-SAHARAN
AFRICAN
COUN-
TRY.—The term ‘former sub-Saharan African coun-
try’ means a country that, after being designated as
a beneficiary sub-Saharan African country under
this Act, ceased to be designated as such a bene-
ficiary sub-Saharan country by reason of its entering
into a free trade agreement with the United
States.’’.
SEC. 8. ENTRIES OF CERTAIN APPAREL ARTICLES PURSU-
ANT TO THE AFRICAN GROWTH AND OPPOR-
TUNITY ACT.
(a) IN GENERAL.—Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro-
vision of law, the Secretary of the Treasury shall liquidate
or reliquidate as free of duty and free of any quantitative
restrictions, limitations, or consultation levels entries of
articles described in subsection (d) made on or after Octo-
ber 1, 2000, and before the date of the enactment of this
Act.
(b) REQUESTS.—Liquidation or reliquidation may be
made under subsection (a) with respect to an entry de-
scribed in subsection (d) only if a request therefor is filed
with the Secretary of the Treasury within 90 days after
the date of the enactment of this Act and the request con-
tains sufficient information to enable the Secretary to lo-
cate the entry or reconstruct the entry if it cannot be lo-
cated.
(c) PAYMENT OF AMOUNTS OWED.—Any amounts
owed by the United States pursuant to the liquidation or
reliquidation of any entry under subsection (a) shall be
paid not later than 180 days after the date of such liquida-
tion or reliquidation.
(d) ENTRIES.—The entries referred to in subsection
(a) are entries of apparel articles that meet the require-