H. R. 3009—76
(ii) shall be referred, in the House of Representatives,
to the Committee on Ways and Means and, in addition,
to the Committee on Rules.
(C) The provisions of section 152(d) and (e) of the Trade
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor
consideration of certain resolutions in the House and Senate)
apply to extension disapproval resolutions.
(D) It is not in order for—
(i) the Senate to consider any extension disapproval
resolution not reported by the Committee on Finance;
(ii) the House of Representatives to consider any exten-
sion disapproval resolution not reported by the Committee
on Ways and Means and, in addition, by the Committee
on Rules; or
(iii) either House of the Congress to consider an exten-
sion disapproval resolution after June 30, 2005.
(d) COMMENCEMENT OF NEGOTIATIONS.—In order to contribute
to the continued economic expansion of the United States, the
President shall commence negotiations covering tariff and nontariff
barriers affecting any industry, product, or service sector, and
expand existing sectoral agreements to countries that are not par-
ties to those agreements, in cases where the President determines
that such negotiations are feasible and timely and would benefit
the United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital goods,
government procurement, information technology products, environ-
mental technology and services, medical equipment and services,
civil aircraft, and infrastructure products. In so doing, the President
shall take into account all of the principal negotiating objectives
set forth in section 2102(b).
SEC. 2104. CONSULTATIONS AND ASSESSMENT.
(a) NOTICE
AND CONSULTATION BEFORE NEGOTIATION.—The
President, with respect to any agreement that is subject to the
provisions of section 2103(b), shall—
(1) provide, at least 90 calendar days before initiating
negotiations, written notice to the Congress of the President’s
intention to enter into the negotiations and set forth therein
the date the President intends to initiate such negotiations,
the specific United States objectives for the negotiations, and
whether the President intends to seek an agreement, or changes
to an existing agreement;
(2) before and after submission of the notice, consult
regarding the negotiations with the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives, such other committees of the House
and Senate as the President deems appropriate, and the
Congressional Oversight group convened under section 2107;
and
(3) upon the request of a majority of the members of the
Congressional Oversight Group under section 2107(c), meet
with the Congressional Oversight Group before initiating the
negotiations or at any other time concerning the negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE.—
(1) IN GENERAL.—Before initiating or continuing negotia-
tions the subject matter of which is directly related to the
subject matter under section 2102(b)(10)(A)(i) with any country,
H. R. 3009—77
the President shall assess whether United States tariffs on
agricultural products that were bound under the Uruguay
Round Agreements are lower than the tariffs bound by that
country. In addition, the President shall consider whether the
tariff levels bound and applied throughout the world with
respect to imports from the United States are higher than
United States tariffs and whether the negotiation provides an
opportunity to address any such disparity. The President shall
consult with the Committee on Ways and Means and the Com-
mittee on Agriculture of the House of Representatives and
the Committee on Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate concerning the results
of the assessment, whether it is appropriate for the United
States to agree to further tariff reductions based on the conclu-
sions reached in the assessment, and how all applicable negoti-
ating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SENSITIVE PROD-
UCTS.—(A) Before initiating negotiations with regard to agri-
culture, and, with respect to the Free Trade Area for the
Americas and negotiations with regard to agriculture under
the auspices of the World Trade Organization, as soon as prac-
ticable after the enactment of this Act, the United States Trade
Representative shall—
(i) identify those agricultural products subject to tariff-
rate quotas on the date of enactment of this Act, and
agricultural products subject to tariff reductions by the
United States as a result of the Uruguay Round Agree-
ments, for which the rate of duty was reduced on January
1, 1995, to a rate which was not less than 97.5 percent
of the rate of duty that applied to such article on December
31, 1994;
(ii) consult with the Committee on Ways and Means
and the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Finance and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate
concerning—
(I) whether any further tariff reductions on the
products identified under clause (i) should be appro-
priate, taking into account the impact of any such
tariff reduction on the United States industry pro-
ducing the product concerned;
(II) whether the products so identified face unjusti-
fied sanitary or phytosanitary restrictions, including
those not based on scientific principles in contravention
of the Uruguay Round Agreements; and
(III) whether the countries participating in the
negotiations maintain export subsidies or other pro-
grams, policies, or practices that distort world trade
in such products and the impact of such programs,
policies, and practices on United States producers of
the products;
(iii) request that the International Trade Commission
prepare an assessment of the probable economic effects
of any such tariff reduction on the United States industry
producing the product concerned and on the United States
economy as a whole; and
H. R. 3009—78
(iv) upon complying with clauses (i), (ii), and (iii), notify
the Committee on Ways and Means and the Committee
on Agriculture of the House of Representatives and the
Committee on Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate of those products
identified under clause (i) for which the Trade Representa-
tive intends to seek tariff liberalization in the negotiations
and the reasons for seeking such tariff liberalization.
(B) If, after negotiations described in subparagraph (A)
are commenced—
(i) the United States Trade Representative identifies
any additional agricultural product described in subpara-
graph (A)(i) for tariff reductions which were not the subject
of a notification under subparagraph (A)(iv), or
(ii) any additional agricultural product described in
subparagraph (A)(i) is the subject of a request for tariff
reductions by a party to the negotiations,
the Trade Representative shall, as soon as practicable, notify
the committees referred to in subparagraph (A)(iv) of those
products and the reasons for seeking such tariff reductions.
(3) NEGOTIATIONS
REGARDING
THE
FISHING
INDUSTRY.—
Before initiating, or continuing, negotiations which directly
relate to fish or shellfish trade with any country, the President
shall consult with the Committee on Ways and Means and
the Committee on Resources of the House of Representatives,
and the Committee on Finance and the Committee on Com-
merce, Science, and Transportation of the Senate, and shall
keep the Committees apprised of negotiations on an ongoing
and timely basis.
(c) NEGOTIATIONS REGARDING TEXTILES.—Before initiating or
continuing negotiations the subject matter of which is directly
related to textiles and apparel products with any country, the
President shall assess whether United States tariffs on textile and
apparel products that were bound under the Uruguay Round Agree-
ments are lower than the tariffs bound by that country and whether
the negotiation provides an opportunity to address any such dis-
parity. The President shall consult with the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate concerning the results of the assessment,
whether it is appropriate for the United States to agree to further
tariff reductions based on the conclusions reached in the assess-
ment, and how all applicable negotiating objectives will be met.
(d) CONSULTATION
WITH
CONGRESS
BEFORE
AGREEMENTS
ENTERED INTO.—
(1) CONSULTATION.—Before entering into any trade agree-
ment under section 2103(b), the President shall consult with—
(A) the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate;
(B) each other committee of the House and the Senate,
and each joint committee of the Congress, which has juris-
diction over legislation involving subject matters which
would be affected by the trade agreement; and
(C) the Congressional Oversight Group convened under
section 2107.
(2) SCOPE.—The consultation described in paragraph (1)
shall include consultation with respect to—
H. R. 3009—79
(A) the nature of the agreement;
(B) how and to what extent the agreement will achieve
the applicable purposes, policies, priorities, and objectives
of this title; and
(C) the implementation of the agreement under section
2105, including the general effect of the agreement on
existing laws.
(3) REPORT
REGARDING
UNITED
STATES
TRADE
REMEDY
LAWS.—
(A) CHANGES IN CERTAIN TRADE LAWS.—The President,
at least 180 calendar days before the day on which the
President enters into a trade agreement under section
2103(b), shall report to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate—
(i) the range of proposals advanced in the negotia-
tions with respect to that agreement, that may be
in the final agreement, and that could require amend-
ments to title VII of the Tariff Act of 1930 or to
chapter 1 of title II of the Trade Act of 1974; and
(ii) how these proposals relate to the objectives
described in section 2102(b)(14).
(B) CERTAIN AGREEMENTS.—With respect to a trade
agreement entered into with Chile or Singapore, the report
referred to in subparagraph (A) shall be submitted by the
President at least 90 calendar days before the day on
which the President enters into that agreement.
(C) RESOLUTIONS.—(i) At any time after the trans-
mission of the report under subparagraph (A), if a resolu-
tion is introduced with respect to that report in either
House of Congress, the procedures set forth in clauses
(iii) through (vi) shall apply to that resolution if—
(I) no other resolution with respect to that report
has previously been reported in that House of Congress
by the Committee on Ways and Means or the Com-
mittee on Finance, as the case may be, pursuant to
those procedures; and
(II) no procedural disapproval resolution under sec-
tion 2105(b) introduced with respect to a trade agree-
ment entered into pursuant to the negotiations to
which the report under subparagraph (A) relates has
previously been reported in that House of Congress
by the Committee on Ways and Means or the Com-
mittee on Finance, as the case may be.
(ii) For purposes of this subparagraph, the term ‘‘reso-
lution’’ means only a resolution of either House of Congress,
the matter after the resolving clause of which is as follows:
‘‘That the ll finds that the proposed changes to United
States trade remedy laws contained in the report of the
President transmitted to the Congress on ll under sec-
tion 2104(d)(3) of the Bipartisan Trade Promotion Authority
Act of 2002 with respect to ll, are inconsistent with
the negotiating objectives described in section 2102(b)(14)
of that Act.’’, with the first blank space being filled with
the name of the resolving House of Congress, the second
blank space being filled with the appropriate date of the
H. R. 3009—80
report, and the third blank space being filled with the
name of the country or countries involved.
(iii) Resolutions in the House of Representatives—
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways
and Means and, in addition, to the Committee on
Rules; and
(III) may not be amended by either Committee.
(iv) Resolutions in the Senate—
(I) may be introduced by any Member of the
Senate;
(II) shall be referred to the Committee on Finance;
and
(III) may not be amended.
(iv) It is not in order for the House of Representatives
to consider any resolution that is not reported by the Com-
mittee on Ways and Means and, in addition, by the Com-
mittee on Rules.
(v) It is not in order for the Senate to consider any
resolution that is not reported by the Committee on
Finance.
(vi) The provisions of section 152(d) and (e) of the
Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating
to floor consideration of certain resolutions in the House
and Senate) shall apply to resolutions.
(e) ADVISORY COMMITTEE REPORTS.—The report required under
section 135(e)(1) of the Trade Act of 1974 regarding any trade
agreement entered into under section 2103(a) or (b) of this Act
shall be provided to the President, the Congress, and the United
States Trade Representative not later than 30 days after the date
on which the President notifies the Congress under section
2103(a)(1) or 2105(a)(1)(A) of the President’s intention to enter
into the agreement.
(f) ITC ASSESSMENT.—
(1) IN GENERAL.—The President, at least 90 calendar days
before the day on which the President enters into a trade
agreement under section 2103(b), shall provide the Inter-
national Trade Commission (referred to in this subsection as
‘‘the Commission’’) with the details of the agreement as it
exists at that time and request the Commission to prepare
and submit an assessment of the agreement as described in
paragraph (2). Between the time the President makes the
request under this paragraph and the time the Commission
submits the assessment, the President shall keep the Commis-
sion current with respect to the details of the agreement.
(2) ITC ASSESSMENT.—Not later than 90 calendar days
after the President enters into the agreement, the Commission
shall submit to the President and the Congress a report
assessing the likely impact of the agreement on the United
States economy as a whole and on specific industry sectors,
including the impact the agreement will have on the gross
domestic product, exports and imports, aggregate employment
and employment opportunities, the production, employment,
and competitive position of industries likely to be significantly
affected by the agreement, and the interests of United States
consumers.
H. R. 3009—81
(3) REVIEW OF EMPIRICAL LITERATURE.—In preparing the
assessment, the Commission shall review available economic
assessments regarding the agreement, including literature
regarding any substantially equivalent proposed agreement,
and shall provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a discussion
of areas of consensus and divergence between the various anal-
yses and conclusions, including those of the Commission
regarding the agreement.
SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) IN GENERAL.—
(1) 
NOTIFICATION
AND
SUBMISSION.—Any 
agreement
entered into under section 2103(b) shall enter into force with
respect to the United States if (and only if)—
(A) the President, at least 90 calendar days before
the day on which the President enters into the trade agree-
ment, notifies the House of Representatives and the Senate
of the President’s intention to enter into the agreement,
and promptly thereafter publishes notice of such intention
in the Federal Register;
(B) within 60 days after entering into the agreement,
the President submits to the Congress a description of
those changes to existing laws that the President considers
would be required in order to bring the United States
into compliance with the agreement;
(C) after entering into the agreement, the President
submits to the Congress, on a day on which both Houses
of Congress are in session, a copy of the final legal text
of the agreement, together with—
(i) a draft of an implementing bill described in
section 2103(b)(3);
(ii) a statement of any administrative action pro-
posed to implement the trade agreement; and
(iii) the supporting information described in para-
graph (2); and
(D) the implementing bill is enacted into law.
(2) SUPPORTING INFORMATION.—The supporting information
required under paragraph (1)(C)(iii) consists of—
(A) an explanation as to how the implementing bill
and proposed administrative action will change or affect
existing law; and
(B) a statement—
(i) asserting that the agreement makes progress
in achieving the applicable purposes, policies, prior-
ities, and objectives of this title; and
(ii) setting forth the reasons of the President
regarding—
(I) how and to what extent the agreement
makes progress in achieving the applicable pur-
poses, policies, and objectives referred to in clause
(i);
(II) whether and how the agreement changes
provisions of an agreement previously negotiated;
(III) how the agreement serves the interests
of United States commerce;
H. R. 3009—82
(IV) how the implementing bill meets the
standards set forth in section 2103(b)(3); and
(V) how and to what extent the agreement
makes progress in achieving the applicable pur-
poses, policies, and objectives referred to in section
2102(c) regarding the promotion of certain prior-
ities.
(3) RECIPROCAL BENEFITS.—In order to ensure that a for-
eign country that is not a party to a trade agreement entered
into under section 2103(b) does not receive benefits under the
agreement unless the country is also subject to the obligations
under the agreement, the implementing bill submitted with
respect to the agreement shall provide that the benefits and
obligations under the agreement apply only to the parties to
the agreement, if such application is consistent with the terms
of the agreement. The implementing bill may also provide that
the benefits and obligations under the agreement do not apply
uniformly to all parties to the agreement, if such application
is consistent with the terms of the agreement.
(4) DISCLOSURE OF COMMITMENTS.—Any agreement or other
understanding with a foreign government or governments
(whether oral or in writing) that—
(A) relates to a trade agreement with respect to which
the Congress enacts an implementing bill under trade
authorities procedures, and
(B) is not disclosed to the Congress before an imple-
menting bill with respect to that agreement is introduced
in either House of Congress,
shall not be considered to be part of the agreement approved
by the Congress and shall have no force and effect under
United States law or in any dispute settlement body.
(b) LIMITATIONS ON TRADE AUTHORITIES PROCEDURES.—
(1) FOR LACK OF NOTICE OR CONSULTATIONS.—
(A) IN
GENERAL.—The trade authorities procedures
shall not apply to any implementing bill submitted with
respect to a trade agreement or trade agreements entered
into under section 2103(b) if during the 60-day period begin-
ning on the date that one House of Congress agrees to
a procedural disapproval resolution for lack of notice or
consultations with respect to such trade agreement or
agreements, the other House separately agrees to a proce-
dural disapproval resolution with respect to such trade
agreement or agreements.
(B) PROCEDURAL
DISAPPROVAL
RESOLUTION.—(i) For
purposes of this paragraph, the term ‘‘procedural dis-
approval resolution’’ means a resolution of either House
of Congress, the sole matter after the resolving clause
of which is as follows: ‘‘That the President has failed or
refused to notify or consult in accordance with the Bipar-
tisan Trade Promotion Authority Act of 2002 on negotia-
tions with respect to llllll and, therefore, the trade
authorities procedures under that Act shall not apply to
any implementing bill submitted with respect to such trade
agreement or agreements.’’, with the blank space being
filled with a description of the trade agreement or agree-
ments with respect to which the President is considered
to have failed or refused to notify or consult.
H. R. 3009—83
(ii) For purposes of clause (i), the President has ‘‘failed
or refused to notify or consult in accordance with the Bipar-
tisan Trade Promotion Authority Act of 2002’’ on negotia-
tions with respect to a trade agreement or trade agreements
if—
(I) the President has failed or refused to consult
(as the case may be) in accordance with section 2104
or 2105 with respect to the negotiations, agreement,
or agreements;
(II) guidelines under section 2107(b) have not been
developed or met with respect to the negotiations,
agreement, or agreements;
(III) the President has not met with the Congres-
sional Oversight Group pursuant to a request made
under section 2107(c) with respect to the negotiations,
agreement, or agreements; or
(IV) the agreement or agreements fail to make
progress in achieving the purposes, policies, priorities,
and objectives of this title.
(2) PROCEDURES
FOR
CONSIDERING
RESOLUTIONS.—(A)
Procedural disapproval resolutions—
(i) in the House of Representatives—
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways
and Means and, in addition, to the Committee on
Rules; and
(III) may not be amended by either Committee;
and
(ii) in the Senate—
(I) may be introduced by any Member of the
Senate;
(II) shall be referred to the Committee on Finance;
and
(III) may not be amended.
(B) The provisions of section 152(d) and (e) of the Trade
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor
consideration of certain resolutions in the House and Senate)
apply to a procedural disapproval resolution introduced with
respect to a trade agreement if no other procedural disapproval
resolution with respect to that trade agreement has previously
been reported in that House of Congress by the Committee
on Ways and Means or the Committee on Finance, as the
case may be, and if no resolution described in section
2104(d)(3)(C)(ii) with respect to that trade agreement has been
reported in that House of Congress by the Committee on Ways
and Means or the Committee on Finance, as the case may
be, pursuant to the procedures set forth in clauses (iii) through
(vi) of such section 2104(d)(3)(C).
(C) It is not in order for the House of Representatives
to consider any procedural disapproval resolution not reported
by the Committee on Ways and Means and, in addition, by
the Committee on Rules.
(D) It is not in order for the Senate to consider any proce-
dural disapproval resolution not reported by the Committee
on Finance.
H. R. 3009—84
(3) FOR FAILURE TO MEET OTHER REQUIREMENTS.—Not later
than December 31, 2002, the Secretary of Commerce, in con-
sultation with the Secretary of State, the Secretary of the
Treasury, the Attorney General, and the United States Trade
Representative, shall transmit to the Congress a report setting
forth the strategy of the executive branch to address concerns
of the Congress regarding whether dispute settlement panels
and the Appellate Body of the WTO have added to obligations,
or diminished rights, of the United States, as described in
section 2101(b)(3). Trade authorities procedures shall not apply
to any implementing bill with respect to an agreement nego-
tiated under the auspices of the WTO unless the Secretary
of Commerce has issued such report in a timely manner.
(c) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—Sub-
section (b) of this section, section 2103(c), aand section 2104(d)(3)(C)
are enacted by the Congress—
(1) as an exercise of the rulemaking power of the House
of Representatives and the Senate, respectively, and as such
are deemed a part of the rules of each House, respectively,
and such procedures supersede other rules only to the extent
that they are inconsistent with such other rules; and
(2) with the full recognition of the constitutional right
of either House to change the rules (so far as relating to
the procedures of that House) at any time, in the same manner,
and to the same extent as any other rule of that House.
SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH
NEGOTIATIONS HAVE ALREADY BEGUN.
(a) CERTAIN AGREEMENTS.—Notwithstanding the prenegotiation
notification and consultation requirement described in section
2104(a), if an agreement to which section 2103(b) applies—
(1) is entered into under the auspices of the World Trade
Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the
date of the enactment of this Act, subsection (b) shall apply.
(b) TREATMENT OF AGREEMENTS.—In the case of any agreement
to which subsection (a) applies—
(1) the applicability of the trade authorities procedures
to implementing bills shall be determined without regard to
the requirements of section 2104(a) (relating only to 90 days
notice prior to initiating negotiations), and any procedural dis-
approval resolution under section 2105(b)(1)(B) shall not be
in order on the basis of a failure or refusal to comply with
the provisions of section 2104(a); and
(2) the President shall, as soon as feasible after the enact-
ment of this Act—
(A) notify the Congress of the negotiations described
in subsection (a), the specific United States objectives in
the negotiations, and whether the President is seeking
a new agreement or changes to an existing agreement;
and
(B) before and after submission of the notice, consult
regarding the negotiations with the committees referred
H. R. 3009—85
to in section 2104(a)(2) and the Congressional Oversight
Group convened under section 2107.
SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.
(a) MEMBERS AND FUNCTIONS.—
(1) IN GENERAL.—By not later than 60 days after the date
of the enactment of this Act, and not later than 30 days after
the convening of each Congress, the chairman of the Committee
on Ways and Means of the House of Representatives and the
chairman of the Committee on Finance of the Senate shall
convene the Congressional Oversight Group.
(2) MEMBERSHIP FROM THE HOUSE.—In each Congress, the
Congressional Oversight Group shall be comprised of the fol-
lowing Members of the House of Representatives:
(A) The chairman and ranking member of the Com-
mittee on Ways and Means, and 3 additional members
of such Committee (not more than 2 of whom are members
of the same political party).
(B) The chairman and ranking member, or their des-
ignees, of the committees of the House of Representatives
which would have, under the Rules of the House of Rep-
resentatives, jurisdiction over provisions of law affected
by a trade agreement negotiations for which are conducted
at any time during that Congress and to which this title
would apply.
(3) MEMBERSHIP
FROM
THE
SENATE.—In each Congress,
the Congressional Oversight Group shall also be comprised
of the following members of the Senate:
(A) The chairman and ranking member of the Com-
mittee on Finance and 3 additional members of such Com-
mittee (not more than 2 of whom are members of the
same political party).
(B) The chairman and ranking member, or their des-
ignees, of the committees of the Senate which would have,
under the Rules of the Senate, jurisdiction over provisions
of law affected by a trade agreement negotiations for which
are conducted at any time during that Congress and to
which this title would apply.
(4) ACCREDITATION.—Each member of the Congressional
Oversight Group described in paragraph (2)(A) and (3)(A) shall
be accredited by the United States Trade Representative on
behalf of the President as an official adviser to the United
States delegation in negotiations for any trade agreement to
which this title applies. Each member of the Congressional
Oversight Group described in paragraph (2)(B) and (3)(B) shall
be accredited by the United States Trade Representative on
behalf of the President as an official adviser to the United
States delegation in the negotiations by reason of which the
member is in the Congressional Oversight Group. The Congres-
sional Oversight Group shall consult with and provide advice
to the Trade Representative regarding the formulation of spe-
cific objectives, negotiating strategies and positions, the
development of the applicable trade agreement, and compliance
and enforcement of the negotiated commitments under the
trade agreement.
(5) CHAIR.—The Congressional Oversight Group shall be
chaired by the Chairman of the Committee on Ways and Means
H. R. 3009—86
of the House of Representatives and the Chairman of the Com-
mittee on Finance of the Senate.
(b) GUIDELINES.—
(1) PURPOSE AND REVISION.—The United States Trade Rep-
resentative, in consultation with the chairmen and ranking
minority members of the Committee on Ways and Means of
the House of Representatives and the Committee on Finance
of the Senate—
(A) shall, within 120 days after the date of the enact-
ment of this Act, develop written guidelines to facilitate
the useful and timely exchange of information between
the Trade Representative and the Congressional Oversight
Group convened under this section; and
(B) may make such revisions to the guidelines as may
be necessary from time to time.
(2) CONTENT.—The guidelines developed under paragraph
(1) shall provide for, among other things—
(A) regular, detailed briefings of the Congressional
Oversight Group regarding negotiating objectives, including
the promotion of certain priorities referred to in section
2102(c), and positions and the status of the applicable
negotiations, beginning as soon as practicable after the
Congressional Oversight Group is convened, with more fre-
quent briefings as trade negotiations enter the final stage;
(B) access by members of the Congressional Oversight
Group, and staff with proper security clearances, to perti-
nent documents relating to the negotiations, including
classified materials;
(C) the closest practicable coordination between the
Trade Representative and the Congressional Oversight
Group at all critical periods during the negotiations,
including at negotiation sites;
(D) after the applicable trade agreement is concluded,
consultation regarding ongoing compliance and enforce-
ment of negotiated commitments under the trade agree-
ment; and
(E) the time frame for submitting the report required
under section 2102(c)(8).
(c) REQUEST FOR MEETING.—Upon the request of a majority
of the Congressional Oversight Group, the President shall meet
with the Congressional Oversight Group before initiating negotia-
tions with respect to a trade agreement, or at any other time
concerning the negotiations.
SEC. 
2108. 
ADDITIONAL 
IMPLEMENTATION 
AND 
ENFORCEMENT
REQUIREMENTS.
(a) IN GENERAL.—At the time the President submits to the
Congress the final text of an agreement pursuant to section
2105(a)(1)(C), the President shall also submit a plan for imple-
menting and enforcing the agreement. The implementation and
enforcement plan shall include the following:
(1) BORDER PERSONNEL REQUIREMENTS.—A description of
additional personnel required at border entry points, including
a list of additional customs and agricultural inspectors.
(2) AGENCY
STAFFING
REQUIREMENTS.—A description of
additional personnel required by Federal agencies responsible
for monitoring and implementing the trade agreement,
H. R. 3009—87
including personnel required by the Office of the United States
Trade Representative, the Department of Commerce, the
Department of Agriculture (including additional personnel
required to implement sanitary and phytosanitary measures
in order to obtain market access for United States exports),
the Department of the Treasury, and such other agencies as
may be necessary.
(3) CUSTOMS INFRASTRUCTURE REQUIREMENTS.—A descrip-
tion of the additional equipment and facilities needed by the
United States Customs Service.
(4) IMPACT ON STATE AND LOCAL GOVERNMENTS.—A descrip-
tion of the impact the trade agreement will have on State
and local governments as a result of increases in trade.
(5) COST ANALYSIS.—An analysis of the costs associated
with each of the items listed in paragraphs (1) through (4).
(b) BUDGET SUBMISSION.—The President shall include a request
for the resources necessary to support the plan described in sub-
section (a) in the first budget that the President submits to the
Congress after the submission of the plan.
SEC. 2109. COMMITTEE STAFF.
The grant of trade promotion authority under this title is
likely to increase the activities of the primary committees of jurisdic-
tion in the area of international trade. In addition, the creation
of the Congressional Oversight Group under section 2107 will
increase the participation of a broader number of Members of Con-
gress in the formulation of United States trade policy and oversight
of the international trade agenda for the United States. The primary
committees of jurisdiction should have adequate staff to accommo-
date these increases in activities.
SEC. 2110. CONFORMING AMENDMENTS.
(a) IN GENERAL.—Title I of the Trade Act of 1974 (19 U.S.C.
2111 et seq.) is amended as follows:
(1) IMPLEMENTING BILL.—
(A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended
by striking ‘‘section 1103(a)(1) of the Omnibus Trade and
Competitiveness Act of 1988, or section 282 of the Uruguay
Round Agreements Act’’ and inserting ‘‘section 282 of the
Uruguay Round Agreements Act, or section 2105(a)(1) of
the Bipartisan Trade Promotion Authority Act of 2002’’.
(B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended
by striking ‘‘or section 282 of the Uruguay Round Agree-
ments Act’’ and inserting ‘‘, section 282 of the Uruguay
Round Agreements Act, or section 2105(a)(1) of the Bipar-
tisan Trade Promotion Authority Act of 2002’’.
(2) ADVICE FROM INTERNATIONAL TRADE COMMISSION.—Sec-
tion 131 (19 U.S.C. 2151) is amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘section 123 of
this Act or section 1102 (a) or (c) of the Omnibus
Trade and Competitiveness Act of 1988,’’ and inserting
‘‘section 123 of this Act or section 2103(a) or (b) of
the Bipartisan Trade Promotion Authority Act of
2002,’’; and
(ii) in paragraph (2), by striking ‘‘section 1102
(b) or (c) of the Omnibus Trade and Competitiveness
H. R. 3009—88
Act of 1988’’ and inserting ‘‘section 2103(b) of the Bipar-
tisan Trade Promotion Authority Act of 2002’’;
(B) in subsection (b), by striking ‘‘section 1102(a)(3)(A)’’
and inserting ‘‘section 2103(a)(3)(A) of the Bipartisan Trade
Promotion Authority Act of 2002’’; and
(C) in subsection (c), by striking ‘‘section 1102 of the
Omnibus Trade and Competitiveness Act of 1988,’’ and
inserting ‘‘section 2103 of the Bipartisan Trade Promotion
Authority Act of 2002,’’.
(3) HEARINGS AND ADVICE.—Sections 132, 133(a), and 134(a)
(19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by
striking ‘‘section 1102 of the Omnibus Trade and Competitive-
ness Act of 1988,’’ each place it appears and inserting ‘‘section
2103 of the Bipartisan Trade Promotion Authority Act of 2002,’’.
(4) PREREQUISITES FOR OFFERS.—Section 134(b) (19 U.S.C.
2154(b)) is amended by striking ‘‘section 1102 of the Omnibus
Trade and Competitiveness Act of 1988’’ and inserting ‘‘section
2103 of the Bipartisan Trade Promotion Authority Act of 2002’’.
(5) ADVICE FROM PRIVATE AND PUBLIC SECTORS.—Section
135 (19 U.S.C. 2155) is amended—
(A) in subsection (a)(1)(A), by striking ‘‘section 1102
of the Omnibus Trade and Competitiveness Act of 1988’’
and inserting ‘‘section 2103 of the Bipartisan Trade Pro-
motion Authority Act of 2002’’;
(B) in subsection (e)(1)—
(i) by striking ‘‘section 1102 of the Omnibus Trade
and Competitiveness Act of 1988’’ each place it appears
and inserting ‘‘section 2103 of the Bipartisan Trade
Promotion Authority Act of 2002’’; and
(ii) by striking ‘‘section 1103(a)(1)(A) of such Act
of 1988’’ and inserting ‘‘section 2105(a)(1)(A) of the
Bipartisan Trade Promotion Authority Act of 2002’’;
and
(C) in subsection (e)(2), by striking ‘‘section 1101 of
the Omnibus Trade and Competitiveness Act of 1988’’ and
inserting ‘‘section 2102 of the Bipartisan Trade Promotion
Authority Act of 2002’’.
(6) TRANSMISSION OF AGREEMENTS TO CONGRESS.—Section
162(a) (19 U.S.C. 2212(a)) is amended by striking ‘‘or under
section 1102 of the Omnibus Trade and Competitiveness Act
of 1988’’ and inserting ‘‘or under section 2103 of the Bipartisan
Trade Promotion Authority Act of 2002’’.
(b) APPLICATION
OF CERTAIN PROVISIONS.—For purposes of
applying sections 125, 126, and 127 of the Trade Act of 1974
(19 U.S.C. 2135, 2136(a), and 2137)—
(1) any trade agreement entered into under section 2103
shall be treated as an agreement entered into under section
101 or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C.
2111 or 2112); and
(2) any proclamation or Executive order issued pursuant
to a trade agreement entered into under section 2103 shall
be treated as a proclamation or Executive order issued pursuant
to a trade agreement entered into under section 102 of the
Trade Act of 1974.
H. R. 3009—89
SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.
(a) IN GENERAL.—Not later than 1 year after the date of enact-
ment of this Act, the International Trade Commission shall report
to the Committee on Finance of the Senate and the Committee
on Ways and Means of the House of Representatives regarding
the economic impact on the United States of the trade agreements
described in subsection (b).
(b) AGREEMENTS.—The trade agreements described in this sub-
section are the following:
(1) The United States-Israel Free Trade Agreement.
(2) The United States-Canada Free Trade Agreement.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Negotiations.
SEC. 2112. INTERESTS OF SMALL BUSINESS.
The Assistant United States Trade Representative for Industry
and Telecommunications shall be responsible for ensuring that the
interests of small business are considered in all trade negotiations
in accordance with the objective described in section 2102(a)(8).
It is the sense of the Congress that the small business functions
should be reflected in the title of the Assistant United States
Trade Representative assigned the responsibility for small business.
SEC. 2113. DEFINITIONS.
In this title:
(1) AGREEMENT ON AGRICULTURE.—The term ‘‘Agreement
on Agriculture’’ means the agreement referred to in section
101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(2)).
(2) AGREEMENT
ON
SAFEGUARDS.—The term ‘‘Agreement
on Safeguards means the agreement referred to in section
101(d)(12) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(12)).
(2) AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEAS-
URES.—The term ‘‘Agreement on Subsidies and Countervailing
Measures’’ means the agreement referred to in section
101(d)(13) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(13)).
(4) ANTIDUMPING
AGREEMENT.—The term ‘‘Antidumping
Agreement‘‘ means the Agreement on Implementation of Article
VI of the General Agreement on Tariffs and Trade 1994 referred
to in section 101(d)(7) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(d)(7)).
(5) APPELLATE BODY.—The term ‘‘Appellate Body’’ means
the Appellate Body established under Article 17.1 of the Dispute
Settlement Understanding.
(6) CORE LABOR STANDARDS.—The term ‘‘core labor stand-
ards’’ means—
(A) the right of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on the use of any form of forced
or compulsory labor;
(D) a minimum age for the employment of children;
and
H. R. 3009—90
(E) acceptable conditions of work with respect to min-
imum wages, hours of work, and occupational safety and
health.
(7) DISPUTE SETTLEMENT UNDERSTANDING.—The term ‘‘Dis-
pute Settlement Understanding’’ means the Understanding on
Rules and Procedures Governing the Settlement of Disputes
referred to in section 101(d)(16) of the Uruguay Round Agree-
ments Act.
(8) GATT 1994.—The term ‘‘GATT 1994’’ has the meaning
given that term in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).
(9) ILO.—The term ‘‘ILO’’ means the International Labor
Organization.
(10) IMPORT SENSITIVE AGRICULTURAL PRODUCT.—The term
‘‘import sensitive agricultural product’’ means an agricultural
product—
(A) with respect to which, as a result of the Uruguay
Round Agreements the rate of duty was the subject of
tariff reductions by the United States and, pursuant to
such Agreements, was reduced on January 1, 1995, to
a rate that was not less than 97.5 percent of the rate
of duty that applied to such article on December 31, 1994;
or
(B) which was subject to a tariff-rate quota on the
date of the enactment of this Act.
(11) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ means—
(A) a United States citizen;
(B) a partnership, corporation, or other legal entity
organized under the laws of the United States; and
(C) a partnership, corporation, or other legal entity
that is organized under the laws of a foreign country and
is controlled by entities described in subparagraph (B) or
United States citizens, or both.
(12) URUGUAY ROUND AGREEMENTS.—The term ‘‘Uruguay
Round Agreements’’ has the meaning given that term in section
2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
(13) WORLD TRADE ORGANIZATION; WTO.—The terms ‘‘World
Trade Organization’’ and ‘‘WTO’’ mean the organization estab-
lished pursuant to the WTO Agreement.
(14) WTO 
AGREEMENT.—The term ‘‘WTO Agreement’’
means the Agreement Establishing the World Trade Organiza-
tion entered into on April 15, 1994.
(15) WTO MEMBER.—The term ‘‘WTO member’’ has the
meaning given that term in section 2(10) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(10)).
H. R. 3009—91
DIVISION C—ANDEAN TRADE
PREFERENCE ACT
TITLE XXXI—ANDEAN TRADE
PREFERENCE
SEC. 3101. SHORT TITLE.
This title may be cited as the ‘‘Andean Trade Promotion and
Drug Eradication Act’’.
SEC. 3102. FINDINGS.
Congress makes the following findings:
(1) Since the Andean Trade Preference Act was enacted
in 1991, it has had a positive impact on United States trade
with Bolivia, Colombia, Ecuador, and Peru. Two-way trade
has doubled, with the United States serving as the leading
source of imports and leading export market for each of the
Andean beneficiary countries. This has resulted in increased
jobs and expanded export opportunities in both the United
States and the Andean region.
(2) The Andean Trade Preference Act has been a key ele-
ment in the United States counternarcotics strategy in the
Andean region, promoting export diversification and broad-
based economic development that provides sustainable economic
alternatives to drug-crop production, strengthening the legiti-
mate economies of Andean countries and creating viable alter-
natives to illicit trade in coca.
(3) Notwithstanding the success of the Andean Trade Pref-
erence Act, the Andean region remains threatened by political
and economic instability and fragility, vulnerable to the con-
sequences of the drug war and fierce global competition for
its legitimate trade.
(4) The continuing instability in the Andean region poses
a threat to the security interests of the United States and
the world. This problem has been partially addressed through
foreign aid, such as Plan Colombia, enacted by Congress in
2000. However, foreign aid alone is not sufficient. Enhancement
of legitimate trade with the United States provides an alter-
native means for reviving and stabilizing the economies in
the Andean region.
(5) The Andean Trade Preference Act constitutes a tangible
commitment by the United States to the promotion of pros-
perity, stability, and democracy in the beneficiary countries.
(6) Renewal and enhancement of the Andean Trade Pref-
erence Act will bolster the confidence of domestic private enter-
prise and foreign investors in the economic prospects of the
region, ensuring that legitimate private enterprise can be the
engine of economic development and political stability in the
region.
(7) Each of the Andean beneficiary countries is committed
to conclude negotiation of a Free Trade Area of the Americas
by the year 2005, as a means of enhancing the economic security
of the region.
(8) Temporarily enhancing trade benefits for Andean bene-
ficiary countries will promote the growth of free enterprise
H. R. 3009—92
and economic opportunity in these countries and serve the
security interests of the United States, the region, and the
world.
SEC. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.
(a) ELIGIBILITY
OF CERTAIN ARTICLES.—Section 204 of the
Andean Trade Preference Act (19 U.S.C. 3203) is amended—
(1) by striking subsection (c) and redesignating subsections
(d) through (g) as subsections (c) through (f), respectively; and
(2) by amending subsection (b) to read as follows:
‘‘(b) EXCEPTIONS AND SPECIAL RULES.—
‘‘(1) CERTAIN ARTICLES THAT ARE NOT IMPORT-SENSITIVE.—
The President may proclaim duty-free treatment under this
title for any article described in subparagraph (A), (B), (C),
or (D) that is the growth, product, or manufacture of an
ATPDEA beneficiary country, that is imported directly into
the customs territory of the United States from an ATPDEA
beneficiary country, and that meets the requirements of this
section, if the President determines that such article is not
import-sensitive in the context of imports from ATPDEA bene-
ficiary countries:
‘‘(A) Footwear not designated at the time of the effec-
tive date of this title as eligible for purposes of the general-
ized system of preferences under title V of the Trade Act
of 1974.
‘‘(B) Petroleum, or any product derived from petroleum,
provided for in headings 2709 and 2710 of the HTS.
‘‘(C) Watches and watch parts (including cases, brace-
lets and straps), of whatever type including, but not limited
to, mechanical, quartz digital or quartz analog, if such
watches or watch parts contain any material which is the
product of any country with respect to which HTS column
2 rates of duty apply.
‘‘(D) Handbags, luggage, flat goods, work gloves, and
leather wearing apparel that were not designated on
August 5, 1983, as eligible articles for purposes of the
generalized system of preferences under title V of the Trade
Act of 1974.
‘‘(2) EXCLUSIONS.—Subject to paragraph (3), duty-free treat-
ment under this title may not be extended to—
‘‘(A) textiles and apparel articles which were not
eligible articles for purposes of this title on January 1,
1994, as this title was in effect on that date;
‘‘(B) rum and tafia classified in subheading 2208.40
of the HTS;
‘‘(C) sugars, syrups, and sugar-containing products sub-
ject to over-quota duty rates under applicable tariff-rate
quotas; or
‘‘(D) tuna prepared or preserved in any manner in
airtight containers, except as provided in paragraph (4).
‘‘(3) APPAREL ARTICLES AND CERTAIN TEXTILE ARTICLES.—
‘‘(A) IN GENERAL.—Apparel articles that are imported
directly into the customs territory of the United States
from an ATPDEA beneficiary country shall enter the
United States free of duty and free of any quantitative
restrictions, limitations, or consultation levels, but only
if such articles are described in subparagraph (B).
H. R. 3009—93
‘‘(B) COVERED ARTICLES.—The apparel articles referred
to in subparagraph (A) are the following:
‘‘(i) APPAREL ARTICLES ASSEMBLED FROM PRODUCTS
OF THE UNITED STATES OR ATPDEA BENEFICIARY COUN-
TRIES
OR
PRODUCTS
NOT
AVAILABLE
IN
COMMERCIAL
QUANTITIES.—Apparel articles sewn or otherwise
assembled in 1 or more ATPDEA beneficiary countries,
or the United States, or both, exclusively from any
one or any combination of the following:
‘‘(I) Fabrics or fabric components wholly
formed, or components knit-to-shape, in the United
States, from yarns wholly formed in the United
States or 1 or more ATPDEA beneficiary countries
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603
of the HTS and are formed in the United States).
Apparel articles shall qualify under this subclause
only if all dyeing, printing, and finishing of the
fabrics from which the articles are assembled, if
the fabrics are knit fabrics, is carried out in the
United States. Apparel articles shall qualify under
this subclause only if all dyeing, printing, and
finishing of the fabrics from which the articles
are assembled, if the fabrics are woven fabrics,
is carried out in the United States.
‘‘(II) Fabrics or fabric components formed or
components knit-to-shape, in 1 or more ATPDEA
beneficiary countries, from yarns wholly formed
in 1 or more ATPDEA 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 ATPDEA beneficiary countries) or compo-
nents are in chief value of llama, alpaca, or vicun˜a.
‘‘(III) Fabrics or yarns, 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 of the NAFTA.
‘‘(ii) ADDITIONAL FABRICS.—At the request of any
interested party, the President is authorized to pro-
claim 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 committee established under section 135
of the Trade Act of 1974 (19 U.S.C. 2155) and
the United States International Trade Commis-
sion;
‘‘(III) within 60 days after the request, the
President has submitted a report to the Committee
on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate
H. R. 3009—94
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 requirements of subclause (III), has
expired; and
‘‘(V) the President has consulted with such
committees regarding the proposed action during
the period referred to in subclause (III).
‘‘(iii) APPAREL ARTICLES ASSEMBLED IN 1 OR MORE
ATPDEA BENEFICIARY COUNTRIES FROM REGIONAL FAB-
RICS
OR
REGIONAL
COMPONENTS.—(I) Subject to the
limitation set forth in subclause (II), apparel articles
sewn or otherwise assembled in 1 or more ATPDEA
beneficiary countries from fabrics or from fabric compo-
nents formed or from components knit-to-shape, in 1
or more ATPDEA beneficiary countries, from yarns
wholly formed in the United States or 1 or more
ATPDEA beneficiary countries (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 ATPDEA beneficiary countries), whether
or not the apparel articles are also made from any
of the fabrics, fabric components formed, or components
knit-to-shape described in clause (i) (unless the apparel
articles are made exclusively from any of the fabrics,
fabric components formed, or components knit-to-shape
described in clause (i)).
‘‘(II) The preferential treatment referred to in sub-
clause (I) shall be extended in the 1-year period begin-
ning October 1, 2002, and in each of the 4 succeeding
1-year periods, to imports of apparel articles in an
amount not to exceed the applicable percentage of the
aggregate square meter equivalents of all apparel arti-
cles imported into the United States in the preceding
12-month period for which data are available.
‘‘(III) For purposes of subclause (II), the term
‘applicable percentage’ means 2 percent for the 1-year
period beginning October 1, 2002, increased in each
of the 4 succeeding 1-year periods by equal increments,
so that for the period beginning October 1, 2006, the
applicable percentage does not exceed 5 percent.
‘‘(iv) HANDLOOMED, HANDMADE, AND
FOLKLORE
ARTICLES.—A handloomed, handmade, or folklore
article of an ATPDEA beneficiary country identified
under subparagraph (C) that is certified as such by
the competent authority of such beneficiary country.
‘‘(v) CERTAIN OTHER APPAREL ARTICLES.—
‘‘(I) GENERAL
RULE.—Any apparel article
classifiable under subheading 6212.10 of the HTS,
except for articles entered under clause (i), (ii),
(iii), or (iv), if the article is both cut and sewn
or otherwise assembled in the United States, or
one or more ATPDEA beneficiary countries, or
both.
H. R. 3009—95
‘‘(II) LIMITATION.—During the 1-year period
beginning on October 1, 2003, and during each
of the 3 succeeding 1-year periods, apparel articles
described in subclause (I) of a producer or an entity
controlling production shall be eligible for pref-
erential treatment under this paragraph only if
the aggregate cost of fabrics (exclusive of all
findings and trimmings) formed in the United
States that are used in the production of all such
articles of that producer or entity that are entered
and eligible under this clause during the preceding
1-year period is at least 75 percent of the aggregate
declared customs value of the fabric (exclusive of
all findings and trimmings) contained in all such
articles of that producer or entity that are entered
and eligible under this clause during the preceding
1-year period.
‘‘(III) DEVELOPMENT OF PROCEDURE TO ENSURE
COMPLIANCE.—The United States Customs Service
shall develop and implement methods and proce-
dures to ensure ongoing compliance with the
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or an entity
controlling production has not satisfied such
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer
or entity shall be ineligible for preferential treat-
ment under this paragraph during any succeeding
1-year period until the aggregate cost of fabrics
(exclusive of all findings and trimmings) formed
in the United States that are used in the produc-
tion of such articles of that producer or entity
entered during the preceding 1-year period is at
least 85 percent of the aggregate declared customs
value of the fabric (exclusive of all findings and
trimmings) contained in all such articles of that
producer or entity that are entered and eligible
under this clause during the preceding 1-year
period.
‘‘(vi) SPECIAL RULES.—
‘‘(I) EXCEPTION
FOR
FINDINGS
AND
TRIM-
MINGS.—An article otherwise eligible for pref-
erential treatment under this paragraph shall not
be ineligible 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 assem-
bled product. Examples of findings and trimmings
are sewing thread, hooks and eyes, snaps, buttons,
‘bow buds’, decorative lace, trim, elastic strips, zip-
pers, 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
H. R. 3009—96
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.
‘‘(cc) The treatment described in this subclause
shall terminate if the President makes a deter-
mination that United States manufacturers are
producing such interlinings in the United States
in commercial quantities.
‘‘(III) DE MINIMIS RULE.—An article that would
otherwise be ineligible for preferential treatment
under this subparagraph because the article con-
tains yarns not wholly formed in the United States
or in one or more ATPDEA beneficiary countries
shall not be ineligible for such treatment if the
total weight of all such yarns is not more than
7 percent of the total weight of the good.
‘‘(IV) SPECIAL ORIGIN RULE.—An article other-
wise eligible for preferential treatment under
clause (i) or (iii) shall not be ineligible for such
treatment because the article contains nylon fila-
ment yarn (other than elastomeric yarn) that is
classifiable 
under 
subheading 
5402.10.30,
5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30,
5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or
5402.61.00 of the HTS from a country that is a
party to an agreement with the United States
establishing a free trade area, which entered into
force before January 1, 1995.
‘‘(vii) TEXTILE LUGGAGE.—Textile luggage—
‘‘(I) assembled in an ATPDEA beneficiary
country from fabric wholly formed and cut in the
United States, from yarns wholly formed in the
United States, that is entered under subheading
9802.00.80 of the HTS; or
‘‘(II) assembled from fabric cut in an ATPDEA
beneficiary country from fabric wholly formed in
the United States from yarns wholly formed in
the United States.
‘‘(C) HANDLOOMED, HANDMADE, AND
FOLKLORE
ARTI-
CLES.—For purposes of subparagraph (B)(iv), the President
shall consult with representatives of the ATPDEA bene-
ficiary countries concerned for the purpose of identifying
particular textile and apparel goods that are mutually
agreed upon as being handloomed, handmade, or folklore
goods of a kind described in section 2.3(a), (b), or (c) of
the Annex or Appendix 3.1.B.11 of the Annex.
‘‘(D) PENALTIES FOR TRANSSHIPMENT.—
‘‘(i) PENALTIES FOR EXPORTERS.—If the President
determines, based on sufficient evidence, that an
exporter has engaged in transshipment with respect
to apparel articles from an ATPDEA beneficiary
country, then the President shall deny all benefits
H. R. 3009—97
under this title to such exporter, and any successor
of such exporter, for a period of 2 years.
‘‘(ii) PENALTIES
FOR
COUNTRIES.—Whenever the
President finds, based on sufficient evidence, that
transshipment has occurred, the President shall
request that the ATPDEA beneficiary country or coun-
tries through whose territory the transshipment has
occurred take all necessary and appropriate actions
to prevent such transshipment. If the President deter-
mines that a country is not taking such actions, the
President shall reduce the quantities of apparel articles
that may be imported into the United States from
such country by the quantity of the transshipped arti-
cles multiplied by 3, to the extent consistent with
the obligations of the United States under the WTO.
‘‘(iii) TRANSSHIPMENT DESCRIBED.—Transshipment
within the meaning of this subparagraph has occurred
when preferential treatment under subparagraph (A)
has been claimed for an apparel article on the basis
of material false information concerning the country
of origin, manufacture, processing, or assembly of the
article or any of its components. For purposes of this
clause, false information is material if disclosure of
the true information would mean or would have meant
that the article is or was ineligible for preferential
treatment under subparagraph (A).
‘‘(E) BILATERAL EMERGENCY ACTIONS.—
‘‘(i) IN GENERAL.—The President may take bilateral
emergency tariff actions of a kind described in section
4 of the Annex with respect to any apparel article
imported from an ATPDEA beneficiary country if the
application of tariff treatment under subparagraph (A)
to such article results in conditions that would be
cause for the taking of such actions under such section
4 with respect to a like article described in the same
8-digit subheading of the HTS that is imported from
Mexico.
‘‘(ii) RULES
RELATING
TO
BILATERAL
EMERGENCY
ACTION.—For purposes of applying bilateral emergency
action under this subparagraph—
‘‘(I) the requirements of paragraph (5) of sec-
tion 4 of the Annex (relating to providing com-
pensation) shall not apply;
‘‘(II) the term ‘transition period’ in section 4
of the Annex shall mean the period ending
December 31, 2006; and
‘‘(III) the requirements to consult specified in
section 4 of the Annex shall be treated as satisfied
if the President requests consultations with the
ATPDEA beneficiary country in question and the
country does not agree to consult within the time
period specified under section 4 of the Annex.
‘‘(4) TUNA.—
‘‘(A) GENERAL RULE.—Tuna that is harvested by United
States vessels or ATPDEA beneficiary country vessels, that
is prepared or preserved in any manner, in an ATPDEA
H. R. 3009—98
beneficiary country, in foil or other flexible airtight con-
tainers weighing with their contents not more than 6.8
kilograms each, and that is imported directly into the cus-
toms territory of the United States from an ATPDEA bene-
ficiary country, shall enter the United States free of duty
and free of any quantitative restrictions.
‘‘(B) DEFINITIONS.—In this paragraph—
‘‘(i) UNITED
STATES
VESSEL.—A ‘United States
vessel’ is a vessel having a certificate of documentation
with a fishery endorsement under chapter 121 of title
46, United States Code.
‘‘(ii) ATPDEA VESSEL.—An ‘ATPDEA vessel’ is a
vessel—
‘‘(I) which is registered or recorded in an
ATPDEA beneficiary country;
‘‘(II) which sails under the flag of an ATPDEA
beneficiary country;
‘‘(III) which is at least 75 percent owned by
nationals of an ATPDEA beneficiary country or
by a company having its principal place of business
in an ATPDEA beneficiary country, of which the
manager or managers, chairman of the board of
directors or of the supervisory board, and the
majority of the members of such boards are
nationals of an ATPDEA beneficiary country and
of which, in the case of a company, at least 50
percent of the capital is owned by an ATPDEA
beneficiary country or by public bodies or nationals
of an ATPDEA beneficiary country;
‘‘(IV) of which the master and officers are
nationals of an ATPDEA beneficiary country; and
‘‘(V) of which at least 75 percent of the crew
are nationals of an ATPDEA beneficiary country.
‘‘(5) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) REGULATIONS.—Any importer that claims pref-
erential treatment under paragraph (1), (3), or (4) 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 accordance 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), (3),
or (4) and for a Certificate of Origin to be valid
with respect to any article for which such treat-
ment is claimed, there shall be in effect a deter-
mination by the President 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 mate-
rial respects to the relevant procedures and
requirements under chapter 5 of the NAFTA.
H. R. 3009—99
‘‘(II) 
COUNTRY
DESCRIBED.—A 
country 
is
described in this subclause if it is an ATPDEA
beneficiary country—
‘‘(aa) from which the article is exported;
or
‘‘(bb) in which materials used in the
production of the article originate or in which
the article or such materials undergo produc-
tion that contributes to a claim that the article
is eligible for preferential treatment under
paragraph (1), (3), or (4).
‘‘(B) CERTIFICATE OF ORIGIN.—The Certificate of Origin
that otherwise would be required pursuant to the provisions
of subparagraph (A) shall not be required in the case of
an article imported under paragraph (1), (3), or (4) if such
Certificate of Origin would not be required under Article
503 of the NAFTA (as implemented pursuant to United
States law), if the article were imported from Mexico.
‘‘(C) REPORT ON COOPERATION OF ATPDEA COUNTRIES
CONCERNING CIRCUMVENTION.—The United States Commis-
sioner of Customs shall conduct a study analyzing the
extent to which each ATPDEA beneficiary country—
‘‘(i) has cooperated fully with the United States,
consistent with its domestic laws and procedures, in
instances of circumvention or alleged circumvention
of existing quotas on imports of textile and apparel
goods, to establish necessary relevant facts in the
places of import, export, and, where applicable, trans-
shipment, including investigation of circumvention
practices, exchanges of documents, correspondence,
reports, and other relevant information, to the extent
such information is available;
‘‘(ii) has taken appropriate measures, consistent
with its domestic laws and procedures, against
exporters and importers involved in instances of false
declaration concerning quantities, description, classi-
fication, or origin of textile and apparel goods; and
‘‘(iii) has penalized the individuals and entities
involved in any such circumvention, consistent with
its domestic laws and procedures, and has worked
closely to seek the cooperation of any third country
to prevent such circumvention from taking place in
that third country.
The Commissioner of Customs shall submit to the Con-
gress, not later than October 1, 2003, a report on the
study conducted under this subparagraph.
‘‘(6) DEFINITIONS.—In this subsection—
‘‘(A) ANNEX.—The term ‘the Annex’ means Annex 300-
B of the NAFTA.
‘‘(B) 
ATPDEA 
BENEFICIARY
COUNTRY.—The 
term
‘ATPDEA beneficiary country’ means any ‘beneficiary
country’, as defined in section 203(a)(1) of this title, which
the President designates as an ATPDEA beneficiary
country, taking into account the criteria contained in sub-
sections (c) and (d) of section 203 and other appropriate
criteria, including the following:
H. R. 3009—100
‘‘(i) Whether the beneficiary country has dem-
onstrated 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 Agreements 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 collec-
tively;
‘‘(III) a prohibition on the use of any form
of forced or compulsory labor;
‘‘(IV) a minimum age for the employment of
children; and
‘‘(V) acceptable conditions of work with respect
to minimum wages, hours of work, and occupa-
tional safety and health.
‘‘(iv) Whether the country has implemented 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
counternarcotics certification criteria set forth in sec-
tion 490 of the Foreign Assistance Act of 1961 (22
U.S.C. 2291j) for eligibility for United States assist-
ance.
‘‘(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, nondiscriminatory,
and 
competitive 
procedures 
in 
government
procurement equivalent to those contained in the
Agreement on Government Procurement described
in section 101(d)(17) of the Uruguay Round Agree-
ments Act; and
‘‘(II) contributes to efforts in international fora
to develop and implement international rules in
transparency in government procurement.
‘‘(viii) The extent to which the country has taken
steps to support the efforts of the United States to
combat terrorism.
‘‘(C) NAFTA.—The term ‘NAFTA’ means the North
American Free Trade Agreement entered into between the
United States, Mexico, and Canada on December 17, 1992.
H. R. 3009—101
‘‘(D) WTO.—The term ‘WTO’ has the meaning given
that term in section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).
‘‘(E) ATPDEA.—The term ‘ATPDEA’ means the Andean
Trade Promotion and Drug Eradication Act.
‘‘(F) FTAA.—The term ‘FTAA’ means the Free Trade
Area for the Americas.’’.
(b) DETERMINATION REGARDING RETENTION OF DESIGNATION.—
Section 203(e)(1) of the Andean Trade Preference Act (19 U.S.C.
3202(e)(1)) is amended—
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(3) by adding at the end the following:
‘‘(B) The President may, after the requirements of paragraph
(2) have been met—
‘‘(i) withdraw or suspend the designation of any country
as an ATPDEA beneficiary country, or
‘‘(ii) withdraw, suspend, or limit the application of pref-
erential treatment under section 204(b)(1), (3), or (4) to any
article of any country,
if, after such designation, the President determines that, as a
result of changed circumstances, the performance of such country
is not satisfactory under the criteria set forth in section
204(b)(6)(B).’’.
(c) CONFORMING AMENDMENTS.—(1) Section 202 of the Andean
Trade Preference Act (19 U.S.C. 3201) is amended by inserting
‘‘(or other preferential treatment)’’ after ‘‘treatment’’.
(2) Section 204(a) of the Andean Trade Preference Act (19
U.S.C. 3203(a)) is amended—
(A) in paragraph (1)—
(i) by inserting ‘‘(or otherwise provided for)’’ after ‘‘eligi-
bility’’; and
(ii) by inserting ‘‘(or preferential treatment)’’ after
‘‘duty-free treatment’’; and
(B) in paragraph (2), by striking ‘‘subsection (a)’’ and
inserting ‘‘paragraph (1)’’.
(d) PETITIONS FOR REVIEW.—
(1) IN GENERAL.—Not later than 180 days after the date
of the enactment of this Act, the President shall promulgate
regulations regarding the review of eligibility of articles and
countries under the Andean Trade Preference Act, consistent
with section 203(e) of such Act, as amended by this title.
(2) CONTENT OF REGULATIONS.—The regulations shall be
similar to the regulations regarding eligibility under the
generalized system of preferences under title V of the Trade
Act of 1974 with respect to the timetable for reviews and
content, and shall include procedures for requesting with-
drawal, suspension, or limitations of preferential duty treat-
ment under the Andean Trade Preference Act, conducting
reviews of such requests, and implementing the results of the
reviews.
(e) REPORTING REQUIREMENTS.—Section 203(f) of the Andean
Trade Preference Act (19 U.S.C. 3202(f)) is amended to read as
follows:
‘‘(f) REPORTING REQUIREMENTS.—
H. R. 3009—102
‘‘(1) IN GENERAL.—Not later than April 30, 2003, and every
2 years thereafter during the period this title is in effect,
the United States Trade Representative shall submit to the
Congress a report regarding the operation of this title,
including—
‘‘(A) with respect to subsections (c) and (d), the results
of a general review of beneficiary countries based on the
considerations described in such subsections; and
‘‘(B) the performance of each beneficiary country or
ATPEA beneficiary country, as the case may be, under
the criteria set forth in section 204(b)(6)(B).
‘‘(2) PUBLIC
COMMENT.—Before submitting the report
described in paragraph (1), the United States Trade Represent-
ative shall publish a notice in the Federal Register requesting
public comments on whether beneficiary countries are meeting
the criteria listed in section 204(b)(6)(B).’’.
SEC. 3104. TERMINATION.
(a) IN GENERAL.—Section 208 of the Andean Trade Preference
Act (19 U.S.C. 3206) is amended to read as follows:
‘‘SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.
‘‘No duty-free treatment or other preferential treatment
extended to beneficiary countries under this title shall remain in
effect after December 31, 2006.’’.
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND
RELIQUIDATIONS.—
(1) IN GENERAL.—Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to
paragraph (3), the entry—
(A) of any article to which duty-free treatment (or
preferential treatment) under the Andean Trade Preference
Act (19 U.S.C. 3201 et seq.) would have applied if the
entry had been made on December 4, 2001, and
(B) that was made after December 4, 2001, and before
the date of the enactment of this Act,
shall be liquidated or reliquidated as if such duty-free treatment
(or preferential treatment) applied, and the Secretary of the
Treasury shall refund any duty paid with respect to such entry.
(2) ENTRY.—As used in this subsection, the term ‘‘entry’’
includes a withdrawal from warehouse for consumption.
(3) REQUESTS.—Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service—
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located.
SEC. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL.
(a) REPORT TO CONGRESS.—The United States Trade Represent-
ative shall review the implementation of the United States-Israel
Free Trade Agreement and shall submit to the Speaker of the
House of Representatives, the President of the Senate, the Com-
mittee on Ways and Means of the House of Representatives, and
the Committee on Finance of the Senate a report on the results
of such review.
H. R. 3009—103
(b) CONTENTS OF REPORT.—The report under subsection (a)
shall include the following:
(1) A review of the terms of the United States-Israel Free
Trade Agreement, particularly the terms with respect to market
access commitments.
(2) A review of subsequent agreements which may have
been reached between the parties to the Agreement and of
unilateral concessions of additional benefits received by each
party from the other.
(3) A review of any current negotiations between the parties
to the Agreement with respect to implementation of the Agree-
ment and other pertinent matters.
(4) An assessment of the degree of fulfillment of obligations
under the Agreement by the United States and Israel.
(5) An assessment of improvements in structuring future
trade agreements that should be considered based on the experi-
ence of the United States under the Agreement.
(c) TIMING OF REPORT.—The United States Trade Representa-
tive shall submit the report under subsection (a) not later than
6 months after the date of the enactment of this Act.
(d) DEFINITION.—In this section, the terms ‘‘United States-
Israel Free Trade Agreement’’ and ‘‘Agreement’’ means the Agree-
ment on the Establishment of a Free Trade Area between the
Government of the United States of America and the Government
of Israel entered into on April 22, 1985.
SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA.
Subheading 1604.14.20 of the Harmonized Tariff Schedule of
the United States is amended—
(1) in the article description, by striking ‘‘20 percent of
the United States pack of canned tuna’’ and inserting ‘‘4.8
percent of apparent United States consumption of tuna in air-
tight containers’’; and
(2) by redesignating such subheading as subheading
1604.14.22.
SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC
RECOVERY ACT.
(a) IN GENERAL.—Section 213(b)(2)(A) of the Carribean Basin
Economic Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as
follows:
(1) Clause (i) is amended—
(A) by striking the matter preceding subclause (I) and
inserting the following:
‘‘(i) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE
CBTPA BENEFICIARY COUNTRIES.—Apparel articles sewn
or otherwise assembled in one or more CBTPA bene-
ficiary countries from fabrics wholly formed and cut,
or from components knit-to-shape, in the United States
from yarns wholly formed in the United States,
(including fabrics not formed from yarns, if such fabrics
are classifiable under heading 5602 or 5603 of the
HTS and are wholly formed and cut in the United
States) that are—’’; and
(B) by adding at the end the following:
‘‘Apparel articles entered on or after September 1,
2002, shall qualify under the preceding sentence only
if all dyeing, printing, and finishing of the fabrics
H. R. 3009—104
from which the articles are assembled, if the fabrics
are knit fabrics, is carried out in the United States.
Apparel articles entered on or after September 1, 2002,
shall qualify under the first sentence of this clause
only if all dyeing, printing, and finishing of the fabrics
from which the articles are assembled, if the fabrics
are woven fabrics, is carried out in the United States.’’.
(2) Clause (ii) is amended to read as follows:
‘‘(ii) OTHER APPAREL ARTICLES ASSEMBLED IN ONE
OR MORE CBTPA BENEFICIARY COUNTRIES.—Apparel arti-
cles sewn or otherwise assembled in one or more
CBTPA beneficiary countries with thread formed in
the United States from fabrics wholly formed in the
United States and cut in one or more CBTPA bene-
ficiary countries from yarns wholly formed in the
United States, or from components knit-to-shape in
the United States from yarns wholly formed in the
United States, or both (including fabrics not formed
from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the HTS and are wholly
formed in the United States). Apparel articles entered
on or after September 1, 2002, shall qualify under
the preceding sentence only if all dyeing, printing,
and finishing of the fabrics from which the articles
are assembled, if the fabrics are knit fabrics, is carried
out in the United States. Apparel articles entered on
or after September 1, 2002, shall qualify under the
first sentence of this clause only if all dyeing, printing,
and finishing of the fabrics from which the articles
are assembled, if the fabrics are woven fabrics, is car-
ried out in the United States.’’.
(3) Clause (iii)(II) is amended to read as follows:
‘‘(II) The amount referred to in subclause (I) is
as follows:
‘‘(aa) 500,000,000 square meter equivalents
during the 1-year period beginning on October 1,
2002.
‘‘(bb) 850,000,000 square meter equivalents
during the 1-year period beginning on October 1,
2003.
‘‘(cc) 970,000,000 square meter equivalents in
each succeeding 1-year period through September
30, 2008.’’.
(4) Clause (iii)(IV) is amended to read as follows:
‘‘(IV) The amount referred to in subclause (III)
is as follows:
‘‘(aa) 4,872,000 dozen during the 1-year period
beginning on October 1, 2001.
‘‘(bb) 9,000,000 dozen during the 1-year period
beginning on October 1, 2002.
‘‘(cc) 10,000,000 dozen during the 1-year period
beginning on October 1, 2003.
‘‘(dd) 12,000,000 dozen in each succeeding 1-
year period through September 30, 2008.’’.
(5) Clause (iv) is amended to read as follows:
‘‘(iv) CERTAIN OTHER APPAREL ARTICLES.—
H. R. 3009—105
‘‘(I) GENERAL RULE.—Subject to subclause (II),
any apparel article classifiable under subheading
6212.10 of the HTS, except for articles entered
under clause (i), (ii), (iii), (v), or (vi), if the article
is both cut and sewn or otherwise assembled in
the United States, or one or more CBTPA bene-
ficiary countries, or both.
‘‘(II) LIMITATION.—During the 1-year period
beginning on October 1, 2001, and during each
of the 6 succeeding 1-year periods, apparel articles
described in subclause (I) of a producer or an entity
controlling production shall be eligible for pref-
erential treatment under subparagraph (B) only
if the aggregate cost of fabrics (exclusive of all
findings and trimmings) formed in the United
States that are used in the production of all such
articles of that producer or entity that are entered
and eligible under this clause during the preceding
1-year period is at least 75 percent of the aggregate
declared customs value of the fabric (exclusive of
all findings and trimmings) contained in all such
articles of that producer or entity that are entered
and eligible under this clause during the preceding
1-year period.
‘‘(III) DEVELOPMENT OF PROCEDURE TO ENSURE
COMPLIANCE.—The United States Customs Service
shall develop and implement methods and proce-
dures to ensure ongoing compliance with the
requirement set forth in subclause (II). If the Cus-
toms Service finds that a producer or an entity
controlling production has not satisfied such
requirement in a 1-year period, then apparel arti-
cles described in subclause (I) of that producer
or entity shall be ineligible for preferential treat-
ment under subparagraph (B) during any suc-
ceeding 1-year period until the aggregate cost of
fabrics (exclusive of all findings and trimmings)
formed in the United States that are used in the
production of such articles of that producer or
entity entered during the preceding 1-year period
is at least 85 percent of the aggregate declared
customs value of the fabric (exclusive of all findings
and trimmings) contained in all such articles of
that producer or entity that are entered and
eligible under this clause during the preceding
1-year period.’’.
(6) Clause (vii) is amended by adding at the end the fol-
lowing new subclause:
‘‘(V) THREAD.—An article otherwise eligible for
preferential treatment under this paragraph shall
not be ineligible for such treatment because the
thread used to assemble the article is dyed,
printed, or finished in one or more CBTPA bene-
ficiary countries.’’.
(7) Section 213(b)(2)(A) of such Act is further amended
by adding at the end the following new clause:
H. R. 3009—107
one or more beneficiary sub-Saharan African countries from
yarns originating either in the United States or one or more
beneficiary sub-Saharan African countries (including fabrics
not formed from yarns, if such fabrics are classified under
heading 5602 or 5603 of the Harmonized Tariff Schedule of
the United States and are wholly formed in one or more bene-
ficiary sub-Saharan African countries), or from components
knit-to-shape in one or more beneficiary sub-Saharan African
countries from yarns originating either in the United States
or one or more beneficiary sub-Saharan African countries, or
apparel articles wholly formed on seamless knitting machines
in a beneficiary sub-Saharan African country from yarns origi-
nating either in the United States or one or more beneficiary
sub-Saharan African countries, subject to the following:’’; and
(B) by amending subparagraph (B) to read as follows:
‘‘(B) SPECIAL
RULE
FOR
LESSER
DEVELOPED
COUN-
TRIES.—
‘‘(i) IN
GENERAL.—Subject to subparagraph (A),
preferential treatment under this paragraph shall be
extended through September 30, 2004, for apparel arti-
cles 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.
‘‘(ii) LESSER DEVELOPED BENEFICIARY SUB-SAHARAN
AFRICAN COUNTRY.—For purposes of clause (i), 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.’’.
(4) Paragraph (4)(B) is amended by striking ‘‘18.5’’ and
inserting ‘‘21.5’’.
(5) Section 112(b) of such Act is further amended by adding
at the end the following new paragraph:
‘‘(7) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM UNITED STATES
AND
BENEFICIARY
SUB-SAHARAN
AFRICAN
COUNTRY
COMPO-
NENTS.—Apparel articles sewn or otherwise assembled in one
or more beneficiary sub-Saharan African countries with thread
formed in the United States from components cut in the United
States and one or more beneficiary sub-Saharan African coun-
tries from fabric wholly formed in the United States from
yarns wholly formed in the United States, or from components
knit-to-shape in the United States and one or more beneficiary
sub-Saharan African countries from yarns wholly formed in
the United States, or both (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602 or
5603 of the Harmonized Tariff Schedule of the United States).’’.
(b) INCREASE
IN
LIMITATION
ON
CERTAIN
BENEFITS.—The
applicable percentage under clause (ii) of section 112(b)(3)(A) of
H. R. 3009—108
the African Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A))
shall be increased—
(1) by 2.17 percent for the 1-year period beginning on
October 1, 2002, and
(2) by equal increments in each succeeding 1-year period
provided for in such clause, so that for the 1-year period begin-
ning October 1, 2007, the applicable percentage is increased
by 3.5 percent,
except that such increase shall not apply with respect to articles
eligible under subparagraph (B) of section 112(b)(3) of that Act.
DIVISION D—EXTENSION OF CERTAIN
PREFERENTIAL TRADE TREATMENT
TITLE XLI—EXTENSION OF GENERAL-
IZED SYSTEM OF PREFERENCES
SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) EXTENSION OF DUTY-FREE TREATMENT UNDER SYSTEM.—
Section 505 of the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended
by striking ‘‘September 30, 2001’’ and inserting ‘‘December 31,
2006’’.
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND
RELIQUIDATIONS.—
(1) IN GENERAL.—Notwithstanding section 514 of the Tariff
Act of 1930 or any other provision of law, and subject to
paragraph (2), the entry—
(A) of any article to which duty-free treatment under
title V of the Trade Act of 1974 would have applied if
the entry had been made on September 30, 2001,
(B) that was made after September 30, 2001, and before
the date of the enactment of this Act, and
(C) to which duty-free treatment under title V of that
Act did not apply,
shall be liquidated or reliquidated as free of duty, and the
Secretary of the Treasury shall refund any duty paid with
respect to such entry.
(2) REQUESTS.—Liquidation or reliquidation may be made
under paragraph (1) with respect to an entry only if a request
therefor is filed with the Customs Service, within 180 days
after the date of the enactment of this Act, that contains
sufficient information to enable the Customs Service—
(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located.
(3) DEFINITION.—As used in this subsection, the term
‘‘entry’’ includes a withdrawal from warehouse for consumption.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) ELIGIBILITY FOR GENERALIZED SYSTEM OF PREFERENCES.—
Section 502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C.
2462(b)(2)(F)) is amended by striking the period at the end and
inserting ‘‘or such country has not taken steps to support the
efforts of the United States to combat terrorism.’’.
H. R. 3009—109
(b) DEFINITION
OF
INTERNATIONALLY
RECOGNIZED
WORKER
RIGHTS.—Section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4))
is amended by amending subparagraph (D) to read as follows:
‘‘(D) a minimum age for the employment of children,
and a prohibition on the worst forms of child labor, as
defined in paragraph (6); and’’.
DIVISION E—MISCELLANEOUS
PROVISIONS
TITLE L—MISCELLANEOUS TRADE
BENEFITS
Subtitle A—Wool Provisions
SEC. 5101. WOOL PROVISIONS.
(a) SHORT TITLE.—This section may be cited as the ‘‘Wool
Manufacturer Payment Clarification and Technical Corrections
Act’’.
(b) CLARIFICATION OF TEMPORARY DUTY SUSPENSION.—Heading
9902.51.13 of the Harmonized Tariff Schedule of the United States
is amended by inserting ‘‘average’’ before ‘‘diameters’’.
(c) PAYMENTS TO MANUFACTURERS OF CERTAIN WOOL PROD-
UCTS.—
(1) PAYMENTS.—Section 505 of the Trade and Development
Act of 2000 (Public Law 106–200; 114 Stat. 303) is amended
as follows:
(A) Subsection (a) is amended—
(i) by striking ‘‘In each of the calendar years’’ and
inserting ‘‘For each of the calendar years’’; and
(ii) by striking ‘‘for a refund of duties’’ and all
that follows through the end of the subsection and
inserting ‘‘for a payment equal to an amount deter-
mined pursuant to subsection (d)(1).’’.
(B) Subsection (b) is amended to read as follows:
‘‘(b) WOOL YARN.—
‘‘(1) IMPORTING MANUFACTURERS.—For each of the calendar
years 2000, 2001, and 2002, a manufacturer of worsted wool
fabrics who imports wool yarn of the kind described in heading
5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of
the United States shall be eligible for a payment equal to
an amount determined pursuant to subsection (d)(2).
‘‘(2) NONIMPORTING MANUFACTURERS.—For each of the cal-
endar years 2001 and 2002, any other manufacturer of worsted
wool fabrics of imported wool yarn of the kind described in
heading 5107.10 or 9902.51.13 of the Harmonized Tariff
Schedule of the United States shall be eligible for a payment
equal to an amount determined pursuant to subsection (d)(2).’’.
(C) Subsection (c) is amended to read as follows:
‘‘(c) WOOL FIBER AND WOOL TOP.—
‘‘(1) IMPORTING MANUFACTURERS.—For each of the calendar
years 2000, 2001, and 2002, a manufacturer of wool yarn or
wool fabric who imports wool fiber or wool top of the kind
described in heading 5101.11, 5101.19, 5101.21, 5101.29,
H. R. 3009—110
5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or
9902.51.14 of the Harmonized Tariff Schedule of the United
States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(3).
‘‘(2) NONIMPORTING MANUFACTURERS.—For each of the cal-
endar years 2001 and 2002, any other manufacturer of wool
yarn or wool fabric of imported wool fiber or wool top of the
kind described in heading 5101.11, 5101.19, 5101.21, 5101.29,
5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or
9902.51.14 of the Harmonized Tariff Schedule of the United
States shall be eligible for a payment equal to an amount
determined pursuant to subsection (d)(3).’’.
(D) Section 505 is further amended by striking sub-
section (d) and inserting the following new subsections:
‘‘(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFACTURERS.—
‘‘(1) MANUFACTURERS OF MEN’S SUITS, ETC. OF IMPORTED
WORSTED WOOL FABRICS.—
‘‘(A) ELIGIBLE
TO
RECEIVE
MORE
THAN
$5,000.—Each
annual payment to manufacturers described in subsection
(a) who, according to the records of the Customs Service
as of September 11, 2001, are eligible to receive more
than $5,000 for each of the calendar years 2000, 2001,
and 2002, shall be in an amount equal to one-third of
the amount determined by multiplying $30,124,000 by a
fraction—
‘‘(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products
imported in calendar year 1999 by the manufacturer
making the claim, and
‘‘(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the manufactur-
ers described in subsection (a) who, according to the
records of the Customs Service as of September 11,
2001, are eligible to receive more than $5,000 for each
such calendar year under this section as it was in
effect on that date.
‘‘(B) ELIGIBLE
WOOL
PRODUCTS.—For purposes of
subparagraph (A), the term ‘eligible wool products’ refers
to imported worsted wool fabrics described in subsection
(a).
‘‘(C) OTHERS.—All manufacturers described in sub-
section (a), other than the manufacturers to which subpara-
graph (A) applies, shall each receive an annual payment
in an amount equal to one-third of the amount determined
by dividing $1,665,000 by the number of all such other
manufacturers.
‘‘(2) MANUFACTURERS
OF
WORSTED
WOOL
FABRICS
OF
IMPORTED WOOL YARN.—
‘‘(A) IMPORTING MANUFACTURERS.—Each annual pay-
ment to an importing manufacturer described in subsection
(b)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $2,202,000 by a
fraction—
‘‘(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products
H. R. 3009—111
imported in calendar year 1999 by the importing manu-
facturer making the claim, and
‘‘(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the importing
manufacturers described in subsection (b)(1).
‘‘(B) ELIGIBLE
WOOL
PRODUCTS.—For purposes of
subparagraph (A), the term ‘eligible wool products’ refers
to imported wool yarn described in subsection (b)(1).
‘‘(C) NONIMPORTING
MANUFACTURERS.—Each annual
payment to a nonimporting manufacturer described in sub-
section (b)(2) shall be in an amount equal to one-half of
the amount determined by multiplying $141,000 by a
fraction—
‘‘(i) the numerator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer making the claim, and
‘‘(ii) the denominator of which is the total amount
attributable to the purchases of imported eligible wool
products in calendar year 1999 by all the nonimporting
manufacturers described in subsection (b)(2).
‘‘(3) MANUFACTURERS OF WOOL YARN OR WOOL FABRIC OF
IMPORTED WOOL FIBER OR WOOL TOP.—
‘‘(A) IMPORTING MANUFACTURERS.—Each annual pay-
ment to an importing manufacturer described in subsection
(c)(1) shall be in an amount equal to one-third of the
amount determined by multiplying $1,522,000 by a
fraction—
‘‘(i) the numerator of which is the amount attrib-
utable to the duties paid on eligible wool products
imported in calendar year 1999 by the importing manu-
facturer making the claim, and
‘‘(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the importing
manufacturers described in subsection (c)(1).
‘‘(B) ELIGIBLE
WOOL
PRODUCTS.—For purposes of
subparagraph (A), the term ‘eligible wool products’ refers
to imported wool fiber or wool top described in subsection
(c)(1).
‘‘(C) NONIMPORTING
MANUFACTURERS.—Each annual
payment to a nonimporting manufacturer described in sub-
section (c)(2) shall be in an amount equal to one-half of
the amount determined by multiplying $597,000 by a
fraction—
‘‘(i) the numerator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by the nonimporting manu-
facturer making the claim, and
‘‘(ii) the denominator of which is the amount attrib-
utable to the purchases of imported eligible wool prod-
ucts in calendar year 1999 by all the nonimporting
manufacturers described in subsection (c)(2).
‘‘(4) LETTERS
OF
INTENT.—Except for the nonimporting
manufacturers described in subsections (b)(2) and (c)(2) who
may make claims under this section by virtue of the enactment