II
Calendar No. 295
107TH CONGRESS
1ST SESSION
H. R. 3009
[Report No. 107–126]
To extend the Andean Trade Preference Act, to grant additional trade benefits
under that Act, and for other purposes.
IN THE SENATE OF THE UNITED STATES
NOVEMBER 16, 2001
Received; read twice and referred to the Committee on Finance
DECEMBER 14, 2001
Reported by Mr. BAUCUS, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To extend the Andean Trade Preference Act, to grant addi-
tional trade benefits under that Act, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Andean Trade Pro-
motion and Drug Eradication Act’’.
SEC. 2. 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, Ecua-
dor, and Peru. Two-way trade has doubled, with the
United States serving as the leading source of im-
ports and leading export market for each of the An-
dean beneficiary countries. This has resulted in in-
creased jobs and expanded export opportunities in
both the United States and the Andean region.
(2) The Andean Trade Preference Act has been
a key element in the United States counternarcotics
strategy in the Andean region, promoting export di-
versification and broad-based economic development
that provides sustainable economic alternatives to
drug-crop production, strengthening the legitimate
economies of Andean countries and creating viable
alternatives to illicit trade in coca.
(3) Notwithstanding the success of the Andean
Trade Preference Act, the Andean region remains
threatened by political and economic instability and
fragility, vulnerable to the consequences of the drug
war and fierce global competition for its legitimate
trade.
(4) The continuing instability in the Andean re-
gion 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
alternative means for reviving and stabilizing the
economies in the Andean region.
(5) The Andean Trade Preference Act con-
stitutes a tangible commitment by the United States
to the promotion of prosperity, stability, and democ-
racy in the beneficiary countries.
(6) Renewal and enhancement of the Andean
Trade Preference Act will bolster the confidence of
domestic private enterprise 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
beneficiary
countries
will
promote
the
growth of free enterprise and economic opportunity
in these countries and serve the security interests of
the United States, the region, and the world.
SEC. 3. ARTICLES ELIGIBLE FOR PREFERENTIAL TREAT-
MENT.
(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 fol-
lows:
‘‘(b) EXCEPTIONS AND SPECIAL RULES.—
‘‘(1) CERTAIN
ARTICLES
THAT
ARE
NOT
IM-
PORT-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 and that meets the re-
quirements of this section, if the President deter-
mines that such article is not import-sensitive in the
context of imports from ATPDEA beneficiary coun-
tries:
‘‘(A) Footwear not designated at the time
of the effective date of this Act as eligible for
the purpose of the generalized system of pref-
erences 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, bracelets 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 treatment under this title may not be ex-
tended 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 ef-
fect on that date;
‘‘(B) rum and tafia classified in sub-
heading 2208.40 of the HTS; or
‘‘(C) sugars, syrups, and sugar-containing
products subject to over-quota duty rates under
applicable tariff-rate quotas.
‘‘(3) APPAREL ARTICLES.—
‘‘(A) IN GENERAL.—Apparel articles that
are imported directly into the customs territory
of the United States from an ATPDEA bene-
ficiary country shall enter the United States
free of duty and free of any quantitative restric-
tions, limitations, or consultation levels, but
only if such articles are described in subpara-
graph (B).
‘‘(B) COVERED
ARTICLES.—The apparel
articles referred to in subparagraph (A) are the
following:
‘‘(i) APPAREL ARTICLES ASSEMBLED
FROM PRODUCTS OF THE UNITED STATES
AND ATPDEA BENEFICIARY COUNTRIES OR
PRODUCTS
NOT
AVAILABLE
IN
COMMER-
CIAL QUANTITIES.—Apparel articles sewn
or
otherwise
assembled
in
or
more
ATPDEA
beneficiary
countries,
or
the
United States, or both, exclusively from
any one or any combination of the fol-
lowing:
‘‘(I) Fabrics or fabric compo-
nents formed, or components knit-to-
shape, in the United States, from
yarns formed in the United States or
1 or more ATPDEA beneficiary coun-
tries (including fabrics not formed
from yarns, if such fabrics are classi-
fiable under heading 5602 or 5603 of
the
HTS
and
are
formed
in
the
United States).
‘‘(II) Fabrics or fabric compo-
nents formed or components knit-to-
shape, in 1 or more ATPDEA bene-
ficiary countries, from yarns 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 bene-
ficiary countries) or components are
in chief weight of llama or alpaca.
‘‘(III) Fabrics or yarn that is not
formed in the United States or in one
or more ATPDEA beneficiary coun-
tries, to the extent that apparel arti-
cles of such fabrics or yarn would be
eligible
for
preferential
treatment,
without regard to the source of the
fabrics or yarn, under Annex 401 of
the NAFTA.
‘‘(ii) ADDITIONAL
FABRICS.—At the
request of any interested party, the Presi-
dent is authorized to proclaim additional
fabrics and yarns as eligible for pref-
erential treatment under clause (i)(III)
if—
‘‘(I)
the
President
determines
that such fabrics or yarns cannot be
supplied by the domestic industry in
commercial
quantities
in
a
timely
manner;
‘‘(II) the President has obtained
advice regarding the proposed action
from the appropriate advisory com-
mittee established under section 135
of the Trade Act of 1974 (19 U.S.C.
2155) and the United States Inter-
national Trade Commission;
‘‘(III) within 60 days after the
request, the President has submitted
a report to the Committee on Ways
and Means of the House of Rep-
resentatives and the Committee on Fi-
nance of the Senate that sets forth
the action proposed to be proclaimed
and the reasons for such action, and
the advice obtained under subclause
(II);
‘‘(IV) a period of 60 calendar
days, beginning with the first day on
which the President has met the re-
quirements of subclause (III), has ex-
pired; and
‘‘(V) the President has consulted
with such committees regarding the
proposed action during the period re-
ferred to in subclause (III).
‘‘(iii) APPAREL ARTICLES ASSEMBLED
IN
OR
MORE
ATPDEA
BENEFICIARY
COUNTRIES FROM REGIONAL FABRICS OR
REGIONAL
COMPONENTS.—(I) Subject to
the limitation set forth in subclause (II),
apparel articles sewn or otherwise assem-
bled in 1 or more ATPDEA beneficiary
countries from fabrics or from fabric com-
ponents formed or from components knit-
to-shape, in 1 or more ATPDEA bene-
ficiary countries, from yarns formed in the
United States or 1 or more ATPDEA ben-
eficiary countries (including fabrics not
formed from yarns, if such fabrics are clas-
sifiable under heading 5602 or 5603 of the
HTS
and
are
formed
in
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 de-
scribed in clause (i).
‘‘(II) The preferential treatment re-
ferred to in subclause (I) shall be extended
in the 1-year period beginning December
1, 2001, and in each of the 5 succeeding
1-year periods, to imports of apparel arti-
cles in an amount not to exceed the appli-
cable percentage of the aggregate square
meter equivalents of all apparel articles im-
ported into the United States in the pre-
ceding 12-month period for which data are
available.
‘‘(III) For purposes of subclause (II),
the term ‘applicable percentage’ means 3
percent for the 1-year period beginning
December 1, 2001, increased in each of the
5 succeeding 1-year periods by equal incre-
ments, so that for the period beginning
December 1, 2005, the applicable percent-
age does not exceed 6 percent.
‘‘(iv) HANDLOOMED, HANDMADE, AND
FOLKLORE
ARTICLES.—A
handloomed,
handmade,
or
folklore
article
of
an
ATPDEA
beneficiary
country
identified
under subparagraph (C) that is certified as
such by the competent authority of such
beneficiary country.
‘‘(v) SPECIAL RULES.—
‘‘(I) EXCEPTION
FOR
FINDINGS
AND
TRIMMINGS.—An article other-
wise eligible for preferential treatment
under this paragraph shall not be in-
eligible for such treatment because the
article contains findings or trimmings
of foreign origin, if such findings and
trimmings do not exceed 25 percent of
the cost of the components of the as-
sembled product. Examples of find-
ings and trimmings are sewing thread,
hooks and eyes, snaps, buttons, ‘bow
buds’, decorative lace, trim, elastic
strips, zippers, including zipper tapes
and labels, and other similar products.
‘‘(II) CERTAIN
INTERLINING.—
(aa) An article otherwise eligible for
preferential
treatment
under
this
paragraph shall not be ineligible for
such treatment because the article
contains certain interlinings of foreign
origin, if the value of such interlinings
(and
any
findings
and
trimmings)
does not exceed 25 percent of the cost
of the components of the assembled
article.
‘‘(bb) Interlinings eligible for the
treatment described in division (aa)
include only a chest type plate, ‘hymo’
piece, or ‘sleeve header’, of woven or
weft-inserted warp knit construction
and of coarse animal hair or man-
made filaments.
‘‘(cc) The treatment described in
this subclause shall terminate if the
President makes a determination that
United States manufacturers are pro-
ducing such interlinings in the United
States in commercial quantities.
‘‘(III) DE
MINIMIS
RULE.—An
article that would otherwise be ineli-
gible for preferential treatment under
this subparagraph because the article
contains fibers or yarns not wholly
formed in the United States or in one
or more ATPDEA beneficiary coun-
tries shall not be ineligible for such
treatment if the total weight of all
such fibers or yarns is not more than
7 percent of the total weight of the
good.
‘‘(C)
HANDLOOMED,
HANDMADE,
AND
FOLKLORE
ARTICLES.—For purposes of sub-
paragraph (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 suffi-
cient evidence, that an exporter has en-
gaged in transshipment with respect to ap-
parel articles from an ATPDEA bene-
ficiary country, then the President shall
deny all benefits under this title to such
exporter, and any successor of such ex-
porter, 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 trans-
shipment has occurred take all necessary
and appropriate actions to prevent such
transshipment. If the President determines
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 articles
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
pref-
erential treatment under subparagraph (A)
has been claimed for an apparel article on
the basis of material false information con-
cerning 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 treat-
ment 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 treat-
ment under subparagraph (A) to such arti-
cle 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 ap-
plying bilateral emergency action under
this subparagraph—
‘‘(I) the requirements of para-
graph (5) of section 4 of the Annex
(relating to providing compensation)
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 con-
sult 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 pe-
riod specified under section 4.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i)
REGULATIONS.—Any
importer
that claims preferential treatment under
paragraph (1) or (3) shall comply with
customs procedures similar in all material
respects to the requirements of Article
502(1) of the NAFTA as implemented
pursuant to United States law, in accord-
ance with regulations promulgated by the
Secretary of the Treasury.
‘‘(ii) DETERMINATION.—
‘‘(I) IN GENERAL.—In order to
qualify for the preferential treatment
under paragraph (1) or (3) and for a
Certificate of Origin to be valid with
respect to any article for which such
treatment is claimed, there shall be in
effect a determination by the Presi-
dent that each country described in
subclause (II)—
‘‘(aa) has implemented and
follows; or
‘‘(bb) is making substantial
progress
toward
implementing
and following,
procedures and requirements similar
in all material respects to the relevant
procedures and requirements under
chapter 5 of the NAFTA.
‘‘(II) COUNTRY
DESCRIBED.—A
country is described in this subclause
if
it
is
an
ATPDEA
beneficiary
country—
‘‘(aa) from which the article
is exported; or
‘‘(bb)
in
which
materials
used in the production of the ar-
ticle originate or in which the ar-
ticle or such materials undergo
production that contributes to a
claim that the article is eligible
for preferential treatment under
paragraph (1) or (3).
‘‘(B) CERTIFICATE OF ORIGIN.—The Cer-
tificate of Origin that otherwise would be re-
quired pursuant to the provisions of subpara-
graph (A) shall not be required in the case of
an article imported under paragraph (1) or (3)
if such Certificate of Origin would not be re-
quired under Article 503 of the NAFTA (as im-
plemented pursuant to United States law), if
the article were imported from Mexico.
‘‘(5) DEFINITIONS.—In this subsection—
‘‘(A)
ANNEX.—The
term
‘the
Annex’
means Annex 300-B of the NAFTA.
‘‘(B) 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 des-
ignates as an ATPDEA beneficiary country,
taking into account the criteria contained in
subsections (c) and (d) of section 203 and other
appropriate criteria, including the following:
‘‘(i) Whether the beneficiary country
has demonstrated a commitment to—
‘‘(I)
undertake
its
obligations
under
the
WTO,
including
those
agreements listed in section 101(d) of
the Uruguay Round Agreements Act,
on or ahead of schedule; and
‘‘(II) participate in negotiations
toward the completion of the FTAA
or another free trade agreement.
‘‘(ii) The extent to which the country
provides protection of intellectual property
rights consistent with or greater than the
protection afforded under the Agreement
on Trade-Related Aspects of Intellectual
Property
Rights
described
in
section
101(d)(15) of the Uruguay Round Agree-
ments Act.
‘‘(iii) The extent to which the country
provides internationally recognized worker
rights, including—
‘‘(I) the right of association;
‘‘(II) the right to organize and
bargain collectively;
‘‘(III) a prohibition on the use of
any form of forced or compulsory
labor;
‘‘(IV) a minimum age for the em-
ployment of children; and
‘‘(V)
acceptable
conditions
of
work with respect to minimum wages,
hours of work, and occupational safe-
ty and health;
‘‘(iv) Whether the country has imple-
mented its commitments to eliminate the
worst forms of child labor, as defined in
section 507(6) of the Trade Act of 1974.
‘‘(v) The extent to which the country
has met the counternarcotics certification
criteria set forth in section 490 of the For-
eign Assistance Act of 1961 (22 U.S.C.
2291j) for eligibility for United States as-
sistance.
‘‘(vi) The extent to which the country
has taken steps to become a party to and
implements the Inter-American Convention
Against Corruption.
‘‘(vii)
The
extent
to
which
the
country—
‘‘(I)
applies
transparent,
non-
discriminatory, and competitive proce-
dures
in
government
procurement
equivalent to those contained in the
Agreement on Government Procure-
ment described in section 101(d)(17)
of the Uruguay Round Agreements
Act; and
‘‘(II) contributes to efforts in
international fora to develop and im-
plement international rules in trans-
parency in government procurement.
‘‘(C) NAFTA.—The term ‘NAFTA’ means
the North American Free Trade Agreement en-
tered into between the United States, Mexico,
and Canada on December 17, 1992.
‘‘(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.’’.
(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 preferential treatment under section 204(b)(1) or
(3) 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)(5)(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), by inserting ‘‘(or other-
wise provided for)’’ after ‘‘eligibility’’; and
(B) in paragraph (2), by striking ‘‘subsection
(a)’’ and inserting ‘‘paragraph (1)’’.
SEC. 4. TERMINATION OF PREFERENTIAL TREATMENT.
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 treat-
ment extended to beneficiary countries under this title
shall remain in effect after December 31, 2006.’’.
SEC. 5. TRADE BENEFITS UNDER THE CARIBBEAN BASIN
ECONOMIC RECOVERY ACT.
Section 213(b)(2)(A) of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amend-
ed as follows:
(1) Clause (i) is amended by striking the mat-
ter preceding subclause (I) and inserting the fol-
lowing:
‘‘(i) APPAREL ARTICLES ASSEMBLED
IN
ONE
OR
MORE
CBTPA
BENEFICIARY
COUNTRIES.—Apparel articles sewn or oth-
erwise assembled in one or more CBTPA
beneficiary 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, (in-
cluding 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—’’.
(2) Clause (ii) is amended to read as follows:
‘‘(ii) OTHER APPAREL ARTICLES AS-
SEMBLED IN ONE OR MORE CBTPA BENE-
FICIARY
COUNTRIES.—Apparel
articles
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 beneficiary
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).’’.
(3) Clause (iii)(II) is amended to read as fol-
lows:
‘‘(II) The amount referred to in sub-
clause (I) is as follows:
‘‘(aa) 290,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2001.
‘‘(bb) 500,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2002.
‘‘(cc) 850,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2003.
‘‘(dd) 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 fol-
lows:
‘‘(IV) The amount referred to in sub-
clause (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 Octo-
ber 1, 2003.
‘‘(dd) 12,000,000 dozen in each
succeeding 1-year period through Sep-
tember 30, 2008.’’.
(5) Section 213(b)(2)(A) of such Act is further
amended by adding at the end the following new
clause:
‘‘(ix) APPAREL ARTICLES ASSEMBLED
IN
ONE
OR
MORE
CBTPA
BENEFICIARY
COUNTRIES
FROM
UNITED
STATES
AND
CBTPA
BENEFICIARY
COUNTRY
COMPO-
NENTS.—Apparel articles sewn or other-
wise assembled in one or more CBTPA
beneficiary countries with thread formed in
the United States from components cut in
the United States and in one or more
CBTPA beneficiary countries 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 CBTPA
beneficiary countries from yarns wholly
formed in the United States, or both (in-
cluding fabrics not formed from yarns, if
such fabrics are classifiable under heading
5602 or 5603 of the HTS).’’.
SEC. 6. TRADE BENEFITS UNDER THE AFRICAN GROWTH
AND OPPORTUNITY ACT.
Section 112(b) of the African Growth and Oppor-
tunity Act (19 U.S.C. 3721(b)) is amended as follows:
(1) Paragraph (1) is amended by amending the
matter preceding subparagraph (A) to read as fol-
lows:
‘‘(1) APPAREL ARTICLES ASSEMBLED IN ONE
OR
MORE
BENEFICIARY
SUB-SAHARAN
AFRICAN
COUNTRIES.—Apparel articles sewn or otherwise as-
sembled in one or more beneficiary sub-Saharan Af-
rican 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—’’.
(2) Paragraph (2) is amended to read as fol-
lows:
‘‘(2) OTHER APPAREL ARTICLES ASSEMBLED IN
ONE OR MORE BENEFICIARY SUB-SAHARAN AFRICAN
COUNTRIES.—Apparel articles sewn or otherwise as-
sembled in one or more beneficiary sub-Saharan Af-
rican countries with thread formed in the United
States from fabrics wholly formed in the United
States and cut in one or more beneficiary sub-Saha-
ran African 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).’’.
(3) Paragraph (3) is amended—
(A) by amending the matter preceding sub-
paragraph (A) to read as follows:
‘‘(3) APPAREL ARTICLES FROM REGIONAL FAB-
RIC OR YARNS.—Apparel articles wholly assembled
in one or more beneficiary sub-Saharan African
countries from fabric wholly formed 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
(including fabrics not formed from yarns, if such
fabrics are classified under heading 5602 or 5603 of
the HTS and are wholly formed in one or more ben-
eficiary sub-Saharan African countries), or from
components knit-to-shape in one or more beneficiary
sub-Saharan African countries from yarns origi-
nating either in the United States or one or more
beneficiary sub-Saharan African countries, or ap-
parel articles wholly formed on seamless knitting
machines in a beneficiary sub-Saharan African coun-
try from yarns originating either in the United
States or one or more beneficiary sub-Saharan Afri-
can countries, subject to the following:’’;
(B) in subparagraph (A)(ii)—
(i) by striking ‘‘1.5’’ and inserting
‘‘3’’; and
(ii) by striking ‘‘3.5’’ and inserting
‘‘7’’; and
(C) by amending subparagraph (B) to read
as follows:
‘‘(B) SPECIAL RULES FOR LESSER DEVEL-
OPED COUNTRIES.—
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph
(A),
preferential
treatment
under this paragraph shall be extended
through September 30, 2004, for apparel
articles wholly assembled, or knit-to-shape
and wholly assembled, or both, in one or
more lesser developed beneficiary sub-Sa-
haran African countries regardless of the
country of origin of the fabric or the yarn
used to make such articles.
‘‘(ii)
LESSER
DEVELOPED
BENE-
FICIARY
SUB-SAHARAN
AFRICAN
COUN-
TRY.—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
BENEFICIARY
SUB-SAHARAN
AFRICAN
COUNTRIES
FROM
UNITED
STATES
AND
BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRY COMPO-
NENTS.—Apparel articles sewn or otherwise assem-
bled 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 countries
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 coun-
tries 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).’’.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Andean Trade Pref-
erence Expansion Act’’.
TITLE I—ANDEAN TRADE
PREFERENCE
SEC. 101. 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 element in the United States counternarcotics
strategy in the Andean region, promoting export di-
versification and broad-based economic development
that provides sustainable economic alternatives to
drug-crop production, strengthening the legitimate
economies of Andean countries and creating viable al-
ternatives to illicit trade in coca.
(3) Notwithstanding the success of the Andean
Trade Preference Act, the Andean region remains
threatened by political and economic instability and
fragility, vulnerable to the consequences of the drug
war and fierce global competition for its legitimate
trade.
(4) The continuing instability in the Andean re-
gion 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, for-
eign aid alone is not sufficient. Enhancement of le-
gitimate trade with the United States provides an al-
ternative 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 prosperity, stability, and democracy in
the beneficiary countries.
(6) Renewal and enhancement of the Andean
Trade Preference Act will bolster the confidence of do-
mestic private enterprise and foreign investors in the
economic prospects of the region, ensuring that legiti-
mate 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 An-
dean beneficiaries countries will promote the growth
of free enterprise and economic opportunity in these
countries and serve the security interests of the
United States, the region, and the world.
SEC. 102. TEMPORARY PROVISIONS.
(a) IN GENERAL.—Section 204(b) of the Andean Trade
Preference Act (19 U.S.C. 3203(b)) is amended to read as
follows:
‘‘(b) IMPORT-SENSITIVE ARTICLES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
through (5), the duty-free treatment provided under
this title does not apply to—
‘‘(A) textile 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) footwear not designated at the time of
the effective date of this title as eligible articles
for the purpose of the generalized system of pref-
erences under title V of the Trade Act of 1974;
‘‘(C) tuna, prepared or preserved in any
manner, in airtight containers;
‘‘(D) petroleum, or any product derived
from petroleum, provided for in headings 2709
and 2710 of the HTS;
‘‘(E) watches and watch parts (including
cases, bracelets, and straps), of whatever type in-
cluding, 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;
‘‘(F) articles to which reduced rates of duty
apply under subsection (c);
‘‘(G) sugars, syrups, and sugar containing
products subject to tariff-rate quotas; or
‘‘(H) rum and tafia classified in sub-
heading 2208.40 of the HTS.
‘‘(2) TRANSITION PERIOD TREATMENT OF CER-
TAIN TEXTILE AND APPAREL ARTICLES.—
‘‘(A) 
ARTICLES
COVERED.—During 
the
transition period, the preferential treatment de-
scribed in subparagraph (B) shall apply to the
following articles:
‘‘(i) APPAREL
ARTICLES
ASSEMBLED
FROM PRODUCTS OF THE UNITED STATES
AND
ATPEA
BENEFICIARY
COUNTRIES
OR
PRODUCTS NOT AVAILABLE IN COMMERCIAL
QUANTITIES.—Apparel articles sewn or
otherwise assembled in 1 or more ATPEA
beneficiary countries, or the United States,
or both, exclusively from any one or any
combination of the following:
‘‘(I) Fabrics or fabric components
formed, or components knit-to-shape,
in the United States, from yarns whol-
ly formed in the United States (includ-
ing 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), pro-
vided that apparel articles sewn or
otherwise assembled from materials de-
scribed in this subclause are assembled
with thread formed in the United
States.
‘‘(II) Fabric components knit-to-
shape in the United States from yarns
wholly formed in the United States
and fabric components knit-to-shape in
1 or more ATPEA beneficiary coun-
tries from yarns wholly formed in the
United States.
‘‘(III) Fabrics or fabric compo-
nents formed or components knit-to-
shape, in 1 or more ATPEA bene-
ficiary countries, from yarns wholly
formed in 1 or more ATPEA bene-
ficiary countries, if such fabrics (in-
cluding fabrics not formed from yarns,
if such fabrics are classifiable under
heading 5602 or 5603 of the HTS and
are formed in 1 or more ATPEA bene-
ficiary countries) or components are in
chief weight of llama, alpaca, or vi-
cuna.
‘‘(IV) Fabrics or yarns that are
not formed in the United States or in
1 or more ATPEA beneficiary coun-
tries, to the extent that apparel articles
of such fabrics or yarns would be eligi-
ble for preferential treatment, without
regard to the source of the fabrics or
yarns, 
under 
Annex 
401 
of 
the
NAFTA.
‘‘(ii) KNIT-TO-SHAPE
APPAREL
ARTI-
CLES.—Apparel articles knit-to-shape (other
than socks provided for in heading 6115 of
the HTS) in 1 or more ATPEA beneficiary
countries from yarns wholly formed in the
United States.
‘‘(iii) REGIONAL FABRIC.—
‘‘(I) GENERAL
RULE.—Knit ap-
parel articles wholly assembled in 1 or
more ATPEA beneficiary countries ex-
clusively from fabric formed, or fabric
components formed, or components
knit-to-shape, 
or 
any 
combination
thereof, in 1 or more ATPEA bene-
ficiary countries from yarns wholly
formed in the United States, in an
amount not exceeding the amount set
forth in subclause (II).
‘‘(II) LIMITATION.—The amount
referred 
to 
in 
subclause 
(I) 
is
70,000,000 square meter equivalents
during the 1-year period beginning on
March 1, 2002, increased by 16 per-
cent, compounded annually, in each
succeeding 1-year period through Feb-
ruary 28, 2006.
‘‘(iv) CERTAIN OTHER APPAREL ARTI-
CLES.—
‘‘(I) GENERAL RULE.—Subject to
subclause (II), any apparel article
classifiable under subheading 6212.10
of the HTS, if the article is both cut
and sewn or otherwise assembled in the
United States, or one or more of the
ATPEA beneficiary countries, or both.
‘‘(II) LIMITATION.—During the 1-
year period beginning on March 1,
2003, and during each of the 2 suc-
ceeding 1-year periods, apparel articles
described in subclause (I) of a producer
or an entity controlling production
shall be eligible for preferential treat-
ment under subparagraph (B) only if
the aggregate cost of fabric components
formed in the United States that are
used in the production of all such arti-
cles of that producer or entity that are
entered during the preceding 1-year pe-
riod is at least 75 percent of the aggre-
gate declared customs value of the fab-
ric contained in all such articles of
that producer or entity that are en-
tered during the preceding 1-year pe-
riod.
‘‘(III) DEVELOPMENT OF PROCE-
DURE TO ENSURE COMPLIANCE.—The
United States Customs Service shall
develop and implement methods and
procedures to ensure ongoing compli-
ance with the requirement set forth in
subclause (II). If the Customs Service
finds that a producer or an entity con-
trolling production has not satisfied
such requirement in a 1-year period,
then apparel articles described in sub-
clause (I) of that producer or entity
shall be ineligible for preferential treat-
ment under subparagraph (B) during
any succeeding 1-year period until the
aggregate cost of fabric components
formed in the United States used in
the production of such articles of that
producer or entity that are entered
during the preceding 1-year period is
at least 85 percent of the aggregate de-
clared customs value of the fabric con-
tained in all such articles of that pro-
ducer or entity that are entered during
the preceding 1-year period.
‘‘(v) APPAREL
ARTICLES
ASSEMBLED
FROM FABRICS OR YARN NOT WIDELY AVAIL-
ABLE IN COMMERCIAL QUANTITIES.—At the
request of any interested party, the Presi-
dent is authorized to proclaim additional
fabrics and yarn as eligible for preferential
treatment under clause (i)(IV) if—
‘‘(I) the President determines that
such fabrics or yarn cannot be sup-
plied by the domestic industry in com-
mercial quantities in a timely manner;
‘‘(II) the President has obtained
advice regarding the proposed action
from the appropriate advisory com-
mittee established under section 135 of
the Trade Act of 1974 (19 U.S.C.
2155) and the United States Inter-
national Trade Commission;
‘‘(III) within 60 days after the re-
quest, the President has submitted a re-
port to the Committee on Ways and
Means of the House of Representatives
and the Committee on Finance of the
Senate that sets forth the action pro-
posed to be proclaimed and the reasons
for such actions, and the advice ob-
tained under subclause (II);
‘‘(IV) a period of 60 calendar
days, beginning with the first day on
which the President has met the re-
quirements of subclause (III), has ex-
pired; and
‘‘(V) the President has consulted
with such committees regarding the
proposed action during the period re-
ferred to in subclause (III).
‘‘(vi) HANDLOOMED, HANDMADE, AND
FOLKLORE
ARTICLES.—A 
handloomed,
handmade, or folklore article of an ATPEA
beneficiary country identified under sub-
paragraph (C) that is certified as such by
the competent authority of such beneficiary
country.
‘‘(vii) SPECIAL RULES.—
‘‘(I) EXCEPTION
FOR
FINDINGS
AND TRIMMINGS.—(aa) An article oth-
erwise eligible for preferential treat-
ment under this paragraph shall not be
ineligible for such treatment because
the article contains findings or trim-
mings of foreign origin, if such find-
ings and trimmings do not exceed 25
percent of the cost of the components of
the assembled product. Examples of
findings and trimmings are sewing
thread, hooks and eyes, snaps, buttons,
‘bow buds’, decorative lace, trim, elas-
tic strips, zippers, including zipper
tapes and labels, and other similar
products. Elastic strips are considered
findings or trimmings only if they are
each less than 1 inch in width and are
used in the production of brassieres.
‘‘(bb) In the case of an article de-
scribed in clause (i)(I) of this subpara-
graph, sewing thread shall not be treat-
ed as findings or trimmings under this
subclause.
‘‘(II) CERTAIN
INTERLININGS.—
(aa) An article otherwise eligible for
preferential treatment under this para-
graph shall not be ineligible for such
treatment because the article contains
certain interlinings of foreign origin, if
the value of such interlinings (and any
findings and trimmings) does not ex-
ceed 25 percent of the cost of the com-
ponents 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 determination that
United States manufacturers are pro-
ducing such interlinings in the United
States in commercial quantities.
‘‘(III) DE MINIMIS RULE.—An ar-
ticle that would otherwise be ineligible
for preferential treatment under this
paragraph because the article contains
yarns not wholly formed in the United
States or in 1 or more ATPEA bene-
ficiary countries shall not be ineligible
for such treatment if the total weight of
all such yarns is not more than 7 per-
cent of the total weight of the good.
Notwithstanding the preceding sen-
tence, an apparel article containing
elastomeric yarns shall be eligible for
preferential treatment under this para-
graph only if such yarns are wholly
formed in the United States.
‘‘(IV) SPECIAL ORIGIN RULE.—An
article otherwise eligible for pref-
erential treatment under clause (i) of
this subparagraph shall not be ineli-
gible for such treatment because the ar-
ticle contains nylon filament 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 duty-free from
a country that is a party to an agree-
ment with the United States estab-
lishing a free trade area, which entered
into force before January 1, 1995.
‘‘(V) CLARIFICATION OF CERTAIN
KNIT
APPAREL
ARTICLES.—Notwith-
standing any other provision of law,
an article otherwise eligible for pref-
erential treatment under clause (iii)(I)
of this subparagraph, shall not be in-
eligible for such treatment because the
article, or a component thereof, con-
tains fabric formed in the United
States from yarns wholly formed in the
United States.
‘‘(viii) 
TEXTILE
LUGGAGE.—Textile
luggage—
‘‘(I) assembled in an ATPEA ben-
eficiary 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 ATPEA beneficiary country from
fabric wholly formed in the United
States from yarns wholly formed in the
United States.
‘‘(B) PREFERENTIAL TREATMENT.—Except
as provided in subparagraph (E), during the
transition period, the articles to which subpara-
graph (A) applies shall enter the United States
free of duty and free of any quantitative restric-
tions, limitations, or consultation levels.
‘‘(C) HANDLOOMED, HANDMADE, AND FOLK-
LORE ARTICLES.—For purposes of subparagraph
(A)(vi), the President shall consult with rep-
resentatives of the ATPEA beneficiary countries
concerned for the purpose of identifying par-
ticular textile and apparel goods that are mutu-
ally agreed upon as being handloomed, hand-
made, or folklore goods of a kind described in
section 2.3(a), (b), or (c) of the Annex or Appen-
dix 3.1.B.11 of the Annex.
‘‘(D) PENALTIES FOR TRANSSHIPMENTS.—
‘‘(i) PENALTIES FOR EXPORTERS.—If
the President determines, based on sufficient
evidence, that an exporter has engaged in
transshipment with respect to textile or ap-
parel articles from an ATPEA beneficiary
country, then the President shall deny all
benefits under this title to such exporter,
and any successor of such exporter, for a pe-
riod of 2 years.
‘‘(ii) PENALTIES
FOR
COUNTRIES.—
Whenever the President finds, based on suf-
ficient evidence, that transshipment has oc-
curred, the President shall request that the
ATPEA beneficiary country or countries
through whose territory the transshipment
has occurred take all necessary and appro-
priate actions to prevent such trans-
shipment. If the President determines that a
country is not taking such actions, the
President shall reduce the quantities of tex-
tile and apparel articles that may be im-
ported into the United States from such
country by the quantity of the transshipped
articles multiplied by 3, to the extent con-
sistent with the obligations of the United
States under the WTO.
‘‘(iii) TRANSSHIPMENT DESCRIBED.—
Transshipment within the meaning of this
subparagraph has occurred when pref-
erential treatment under subparagraph (B)
has been claimed for a textile or apparel ar-
ticle on the basis of material false informa-
tion concerning the country of origin, man-
ufacture, processing, or assembly of the arti-
cle 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 treat-
ment under subparagraph (B).
‘‘(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 im-
ported from an ATPEA beneficiary country
if the application of tariff treatment under
subparagraph (B) to such article results in
conditions that would be cause for the tak-
ing 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 ap-
plying bilateral emergency action under
this subparagraph—
‘‘(I) the requirements of para-
graph (5) of section 4 of the Annex (re-
lating 
to 
providing 
compensation)
shall not apply;
‘‘(II) the term ‘transition period’
in section 4 of the Annex shall have the
meaning given that term in paragraph
(5)(D) of this subsection; 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 ATPEA beneficiary country in
question and the country does not
agree to consult within the time period
specified under section 4.
‘‘(3) TRANSITION PERIOD TREATMENT OF CER-
TAIN OTHER ARTICLES ORIGINATING IN BENEFICIARY
COUNTRIES.—
‘‘(A) EQUIVALENT TARIFF TREATMENT.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the tariff treatment accorded at any
time during the transition period to any
article referred to in any of subparagraphs
(B), (D) through (F), or (H) of paragraph
(1) that is an ATPEA originating good
shall be identical to the tariff treatment that
is accorded at such time under Annex 302.2
of the NAFTA to an article described in the
same 8-digit subheading of the HTS that is
a good of Mexico and is imported into the
United States.
‘‘(ii) EXCEPTION.—Clause (i) does not
apply to any article accorded duty-free
treatment under U.S. Note 2(b) to sub-
chapter II of chapter 98 of the HTS.
‘‘(B) RELATIONSHIP
TO
SUBSECTION
(C)
DUTY REDUCTIONS.—If at any time during the
transition period the rate of duty that would
(but for action taken under subparagraph (A)(i)
in regard to such period) apply with respect to
any article under subsection (c) is a rate of duty
that is lower than the rate of duty resulting from
such action, then such lower rate of duty shall be
applied for the purposes of implementing such
action.
‘‘(C) SPECIAL RULE FOR SUGARS, SYRUPS,
AND SUGAR CONTAINING PRODUCTS.—Duty-free
treatment under this Act shall not be extended to
sugars, syrups, and sugar-containing products
subject to over-quota duty rates under applicable
tariff-rate quotas.
‘‘(D) SPECIAL
RULE
FOR
CERTAIN
TUNA
PRODUCTS.—
‘‘(i) IN GENERAL.—The President may
proclaim duty-free treatment under this Act
for tuna that is harvested by United States
vessels or ATPEA beneficiary country ves-
sels, and is prepared or preserved in any
manner, in airtight containers in an
ATPEA beneficiary country. Such duty-free
treatment may be proclaimed in any cal-
endar year for a quantity of such tuna that
does not exceed 20 percent of the domestic
United States tuna pack in the preceding
calendar year. As used in the preceding sen-
tence, the term ‘tuna pack’ means tuna pack
as defined by the National Marine Fisheries
Service of the United States Department of
Commerce 
for 
purposes 
of 
subheading
1604.14.20 of the HTS as in effect on the
date of enactment of the Andean Trade
Preference Expansion Act.
‘‘(ii) UNITED
STATES
VESSEL.—For
purposes of this subparagraph, a ‘United
States vessel’ is a vessel having a certificate
of documentation with a fishery endorse-
ment under chapter 121 of title 46, United
States Code.
‘‘(iii) ATPEA VESSEL.—For purposes
of this subparagraph, an ‘ATPEA vessel’ is
a vessel—
‘‘(I) which is registered or re-
corded in an ATPEA beneficiary coun-
try;
‘‘(II) which sails under the flag of
an ATPEA beneficiary country;
‘‘(III) which is at least 75 percent
owned by nationals of an ATPEA ben-
eficiary country or by a company hav-
ing its principal place of business in
an ATPEA beneficiary country, of
which the manager or managers, chair-
man of the board of directors or of the
supervisory board, and the majority of
the members of such boards are nation-
als of an ATPEA beneficiary country
and of which, in the case of a com-
pany, at least 50 percent of the capital
is owned by an ATPEA beneficiary
country or by public bodies or nation-
als of an ATPEA beneficiary country;
‘‘(IV) of which the master and of-
ficers are nationals of an ATPEA ben-
eficiary country; and
‘‘(V) of which at least 75 percent
of the crew are nationals of an ATPEA
beneficiary country.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential treatment under
paragraph (2) or (3) shall comply with cus-
toms procedures similar in all material re-
spects to the requirements of Article 502(1)
of the NAFTA as implemented pursuant to
United States law, in accordance with regu-
lations promulgated by the Secretary of the
Treasury.
‘‘(ii) DETERMINATION.—
‘‘(I) IN
GENERAL.—In order to
qualify for the preferential treatment
under paragraph (2) or (3) and for a
Certificate of Origin to be valid with
respect to any article for which such
treatment is claimed, there shall be in
effect a determination by the President
that each country described in sub-
clause (II)—
‘‘(aa) has implemented and
follows; or
‘‘(bb) is making substantial
progress 
toward 
implementing
and following, procedures and re-
quirements similar in all material
respects to the relevant procedures
and requirements under chapter 5
of the NAFTA.
‘‘(II) COUNTRY
DESCRIBED.—A
country is described in this subclause if
it is an ATPEA beneficiary country—
‘‘(aa) from which the article
is exported; or
‘‘(bb) in which materials
used in the production of the arti-
cle originate or in which the arti-
cle or such materials undergo pro-
duction that contributes to a
claim that the article is eligible
for preferential treatment under
paragraph (2) or (3).
‘‘(B) CERTIFICATE OF ORIGIN.—The Certifi-
cate of Origin that otherwise would be required
pursuant to the provisions of subparagraph (A)
shall not be required in the case of an article im-
ported under paragraph (2) or (3) if such Cer-
tificate of Origin would not be required under
Article 503 of the NAFTA (as implemented pur-
suant to United States law), if the article were
imported from Mexico.
‘‘(C) REPORT BY USTR ON COOPERATION OF
OTHER
COUNTRIES
CONCERNING
CIRCUMVEN-
TION.—The United States Commissioner of Cus-
toms shall conduct a study analyzing the extent
to which each ATPEA beneficiary country—
‘‘(i) has cooperated fully with the
United States, consistent with its domestic
laws and procedures, in instances of cir-
cumvention or alleged circumvention of ex-
isting quotas on imports of textile and ap-
parel goods, to establish necessary relevant
facts in the places of import, export, and,
where applicable, transshipment, including
investigation of circumvention practices, ex-
changes of documents, correspondence, re-
ports, and other relevant information, to the
extent such information is available;
‘‘(ii) has taken appropriate measures,
consistent with its domestic laws and proce-
dures, against exporters and importers in-
volved in instances of false declaration con-
cerning fiber content, quantities, descrip-
tion, classification, or origin of textile and
apparel goods; and
‘‘(iii) has penalized the individuals
and entities involved in any such cir-
cumvention, 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 Trade Representative shall submit to Con-
gress, not later than October 1, 2002, a report on
the study conducted under this subparagraph.
‘‘(5) DEFINITIONS
AND
SPECIAL
RULES.—For
purposes of this subsection—
‘‘(A) ANNEX.—The term ‘the Annex’ means
Annex 300–B of the NAFTA.
‘‘(B) ATPEA BENEFICIARY COUNTRY.—The
term ‘ATPEA beneficiary country’ means any
‘beneficiary country’, as defined in section
203(a)(1) of this title, which the President des-
ignates as an ATPEA beneficiary country, tak-
ing into account the criteria contained in sub-
sections (c) and (d) of section 203 and other ap-
propriate criteria, including the following:
‘‘(i) Whether the beneficiary country
has demonstrated a commitment to—
‘‘(I) 
undertake 
its 
obligations
under the WTO, including those agree-
ments 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 Prop-
erty 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 collectively;
‘‘(III) a prohibition on the use of
any form of forced or compulsory
labor;
‘‘(IV) a minimum age for the em-
ployment of children; and
‘‘(V) acceptable conditions of work
with respect to minimum wages, hours
of work, and occupational safety and
health;
‘‘(iv) Whether the country has imple-
mented its commitments to eliminate the
worst forms of child labor, as defined in sec-
tion 507(6) of the Trade Act of 1974.
‘‘(v) The extent to which the country
has met the counter-narcotics certification
criteria set forth in section 490 of the For-
eign Assistance Act of 1961 (22 U.S.C.
2291j) for eligibility for United States as-
sistance.
‘‘(vi) The extent to which the country
has taken steps to become a party to and
implements the Inter-American Convention
Against Corruption.
‘‘(vii) 
The 
extent 
to 
which 
the
country—
‘‘(I) applies transparent, non-
discriminatory, and competitive proce-
dures 
in 
government 
procurement
equivalent to those contained in the
Agreement on Government Procure-
ment described in section 101(d)(17) of
the Uruguay Round Agreements Act;
and
‘‘(II) contributes to efforts in
international fora to develop and im-
plement international rules in trans-
parency in government procurement.
‘‘(C) ATPEA ORIGINATING GOOD.—
‘‘(i) IN GENERAL.—The term ‘ATPEA
originating good’ means a good that meets
the rules of origin for a good set forth in
chapter 4 of the NAFTA as implemented
pursuant to United States law.
‘‘(ii) APPLICATION OF CHAPTER 4.—In
applying chapter 4 of the NAFTA with re-
spect to an ATPEA beneficiary country for
purposes of this subsection—
‘‘(I) no country other than the
United States and an ATPEA bene-
ficiary country may be treated as
being a party to the NAFTA;
‘‘(II) any reference to trade be-
tween the United States and Mexico
shall be deemed to refer to trade be-
tween the United States and an
ATPEA beneficiary country;
‘‘(III) any reference to a party
shall be deemed to refer to an ATPEA
beneficiary country or the United
States; and
‘‘(IV) any reference to parties
shall be deemed to refer to any com-
bination of ATPEA beneficiary coun-
tries or to the United States and one
or more ATPEA beneficiary countries
(or any combination thereof ).
‘‘(D) TRANSITION PERIOD.—The term ‘tran-
sition period’ means, with respect to an ATPEA
beneficiary country, the period that begins on the
date of enactment, and ends on the earlier of—
‘‘(i) February 28, 2006; or
‘‘(ii) the date on which the FTAA or
another free trade agreement that makes
substantial progress in achieving the negoti-
ating 
objectives 
set 
forth 
in 
section
108(b)(5) of Public Law 103–182 (19
U.S.C. 3317(b)(5)) enters into force with re-
spect to the United States and the ATPEA
beneficiary country.
‘‘(E) ATPEA.—The term ‘ATPEA’ means
the Andean Trade Preference Expansion Act.
‘‘(F) FTAA.—The term ‘FTAA’ means the
Free Trade Area of the Americas.’’.
(b) DETERMINATION REGARDING RETENTION OF DES-
IGNATION.—Section 203(e) of the Andean Trade Preference
Act (19 U.S.C. 3202(e)) is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively;
(B) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(C) 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 ATPEA beneficiary country; or
‘‘(ii) withdraw, suspend, or limit the application
of preferential treatment under section 204(b) (2) and
(3) 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)(5)(B).’’; and
(2) by adding after paragraph (2) the following
new paragraph:
‘‘(3) If preferential treatment under section 204(b) (2)
and (3) is withdrawn, suspended, or limited with respect
to an ATPEA beneficiary country, such country shall not
be deemed to be a ‘party’ for the purposes of applying sec-
tion 204(b)(5)(C) to imports of articles for which pref-
erential treatment has been withdrawn, suspended, or lim-
ited with respect to such country.’’.
(c) 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.—
‘‘(1) IN GENERAL.—Not later than December 31,
2002, and every 2 years thereafter during the period
this title is in effect, the United States Trade Rep-
resentative shall submit to Congress a report regard-
ing 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 sec-
tion 204(b)(5)(B).
‘‘(2) PUBLIC COMMENT.—Before submitting the
report described in paragraph (1), the United States
Trade Representative shall publish a notice in the
Federal Register requesting public comments on
whether beneficiary countries are meeting the criteria
listed in section 204(b)(5)(B).’’.
(d) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—
(A) Section 202 of the Andean Trade Pref-
erence Act (19 U.S.C. 3201) is amended by in-
serting ‘‘(or other preferential treatment)’’ after
‘‘treatment’’.
(B) Section 204(a)(1) of the Andean Trade
Preference Act (19 U.S.C. 3203(a)(1)) is amend-
ed by inserting ‘‘(or otherwise provided for)’’
after ‘‘eligibility’’.
(C) Section 204(a)(1) of the Andean Trade
Preference Act (19 U.S.C. 3203(a)(1)) is amend-
ed by inserting ‘‘(or preferential treatment)’’
after ‘‘duty-free treatment’’.
(2) DEFINITIONS.—Section 203(a) of the Andean
Trade Preference Act (19 U.S.C. 3202(a)) is amended
by adding at the end the following new paragraphs:
‘‘(4) The term ‘‘NAFTA’’ means the North Amer-
ican Free Trade Agreement entered into between the
United States, Mexico, and Canada on December 17,
1992.
‘‘(5) The terms ‘WTO’ and ‘WTO member’ have
the meanings given those terms in section 2 of the
Uruguay Round Agreements Act (19 U.S.C. 3501).’’.
SEC. 103. TERMINATION.
Section 208(b) of the Andean Trade Preference Act (19
U.S.C. 3206(b)) is amended to read as follows:
‘‘(b) TERMINATION OF PREFERENTIAL TREATMENT.—
No preferential duty treatment extended to beneficiary
countries under this Act shall remain in effect after Feb-
ruary 28, 2006.’’.
TITLE II—MISCELLANEOUS
TRADE PROVISIONS
SEC. 201. 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 SUSPEN-
SION.—Heading 9902.51.13 of the Harmonized Tariff
Schedule of the United States is amended by inserting ‘‘av-
erage’’ before ‘‘diameters’’.
(c) PAYMENTS
TO MANUFACTURERS
OF CERTAIN
WOOL PRODUCTS.—
(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 cal-
endar 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 determined 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 manufac-
turer of worsted wool fabrics who imports wool yarn
of the kind described in heading 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 calendar years 2001 and 2002, any other
manufacturer of worsted wool fabrics of imported
wool yarn of the kind described in heading 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 manufac-
turer of wool yarn or wool fabric who imports wool
fiber or wool top of the kind described in heading
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 calendar 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 head-
ing 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 sub-
section (d)(3).’’.
(D) Section 505 is further amended by
striking subsection (d) and inserting the fol-
lowing new subsections:
‘‘(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFAC-
TURERS.—
‘‘(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 attributable 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 cal-
endar year 1999 by all the 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 such calendar
year under this section as it was in effect
on that date.
‘‘(B) ELIGIBLE WOOL PRODUCTS.—For pur-
poses of subparagraph (A), the term ‘eligible
wool products’ refers to imported worsted wool
fabrics described in subsection (a).
‘‘(C) OTHERS.—All manufacturers described
in subsection (a), other than the manufacturer’s
to which subparagraph (A) applies, shall each
receive an annual payment in an amount equal
to one-third of the amount determined by divid-
ing $1,665,000 by the number of all such other
manufacturers.
‘‘(2) MANUFACTURERS OF WORSTED WOOL FAB-
RICS OF IMPORTED WOOL YARN.—
‘‘(A) IMPORTING
MANUFACTURERS.—Each
annual payment to an importing manufacturer
described in subsection (b)(1) shall be in an
amount equal to one-third of the amount deter-
mined 
by 
multiplying 
$2,202,000 
by 
a
fraction—
‘‘(i) the numerator of which is the
amount attributable to the duties paid on
eligible wool products imported in calendar
year 1999 by the importing 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 cal-
endar year 1999 by all the importing man-
ufacturers described in subsection (b)(1).
‘‘(B) ELIGIBLE WOOL PRODUCTS.—For pur-
poses of subparagraph (A), the term ‘eligible
wool products’ refers to imported wool yarn de-
scribed in subsection (b)(1).
‘‘(C) NONIMPORTING
MANUFACTURERS.—
Each annual payment to a nonimporting manu-
facturer described in subsection (b)(2) shall be in
an amount equal to one-half of the amount deter-
mined by multiplying $141,000 by a fraction—
‘‘(i) the numerator of which is the
amount attributable to the purchases of im-
ported eligible wool products in calendar
year 1999 by the nonimporting manufac-
turer making the claim, and
‘‘(ii) the denominator of which is the
total amount attributable to the purchases
of imported eligible wool products in cal-
endar 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 payment to an importing manufacturer
described in subsection (c)(1) shall be in an
amount equal to one-third of the amount deter-
mined 
by 
multiplying 
$1,522,000 
by 
a
fraction—
‘‘(i) the numerator of which is the
amount attributable to the duties paid on
eligible wool products imported in calendar
year 1999 by the importing 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 cal-
endar year 1999 by all the importing man-
ufacturers described in subsection (c)(1).
‘‘(B) ELIGIBLE WOOL PRODUCTS.—For pur-
poses 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 manu-
facturer described in subsection (c)(2) shall be in
an amount equal to one-half of the amount deter-
mined by multiplying $597,000 by a fraction—
‘‘(i) the numerator of which is the
amount attributable to the purchases of im-
ported eligible wool products in calendar
year 1999 by the nonimporting manufac-
turer making the claim, and
‘‘(ii) the denominator of which is the
amount attributable to the purchases of im-
ported eligible wool products in calendar
year 1999 by all the nonimporting manu-
facturers described in subsection (c)(2).
‘‘(4) LETTERS OF INTENT.—Except for the non-
importing manufacturers described in subsections
(b)(2) and (c)(2) who may make claims under this
section by virtue of the enactment of the Wool Manu-
facturer Payment Clarification and Technical Correc-
tions Act, only manufacturers who, according to the
records of the Customs Service, filed with the Customs
Service before September 11, 2001, letters of intent to
establish eligibility to be claimants are eligible to
make a claim for a payment under this section.
‘‘(5) AMOUNT ATTRIBUTABLE TO PURCHASES BY
NONIMPORTING MANUFACTURERS.—
‘‘(A) AMOUNT
ATTRIBUTABLE.—For pur-
poses of paragraphs (2)(C) and (3)(C), the
amount attributable to the purchases of imported
eligible wool products in calendar year 1999 by
a nonimporting manufacturer shall be the
amount the nonimporting manufacturer paid for
eligible wool products in calendar year 1999, as
evidenced by invoices. The nonimporting manu-
facturer shall make such calculation and submit
the resulting amount to the Customs Service,
within 45 days after the date of enactment of the
Wool Manufacturer Payment Clarification and
Technical Corrections Act, in a signed affidavit
that attests that the information contained there-
in is true and accurate to the best of the affiant’s
belief and knowledge. The nonimporting manu-
facturer shall retain the records upon which the
calculation is based for a period of five years be-
ginning on the date the affidavit is submitted to
the Customs Service.
‘‘(B) ELIGIBLE WOOL PRODUCT.—For pur-
poses of subparagraph (A)—
‘‘(i) the eligible wool product for non-
importing manufacturers of worsted wool
fabrics is wool yarn of the kind described in
heading 9902.51.13 of the Harmonized Tar-
iff Schedule of the United States purchased
in calendar year 1999; and
‘‘(ii) the eligible wool products for non-
importing manufacturers of wool yarn or
wool fabric are wool fiber or wool top of the
kind described in heading 9902.51.14 of
such Schedule purchased in calendar year
1999.
‘‘(6) AMOUNT ATTRIBUTABLE TO DUTIES PAID.—
For purposes of paragraphs (1), (2)(A), and (3)(A),
the amount attributable to the duties paid by a man-
ufacturer shall be the amount shown on the records of
the Customs Service as of September 11, 2001, under
this section as then in effect.
‘‘(7) SCHEDULE
OF
PAYMENTS; 
REALLOCA-
TIONS.—
‘‘(A) SCHEDULE.—Of the payments de-
scribed in paragraphs (1), (2)(A), and (3)(A),
the Customs Service shall make the first install-
ment on or before December 31, 2001, the second
installment on or before April 15, 2002, and the
third installment on or before April 15, 2003. Of
the payments described in paragraphs (2)(C)
and (3)(C), the Customs Service shall make the
first installment on or before April 15, 2002, and
the second installment on or before April 15,
2003.
‘‘(B) REALLOCATIONS.—In the event that a
manufacturer that would have received payment
under subparagraph (A) or (C) of paragraph
(1), (2), or (3) ceases to be qualified for such
payment as such a manufacturer, the amounts
otherwise payable to the remaining manufactur-
ers under such subparagraph shall be increased
on a pro rata basis by the amount of the pay-
ment such manufacturer would have received.
‘‘(8) REFERENCE.—For purposes of paragraphs
(1)(A) and (6), the ‘records of the Customs Service as
of September 11, 2001’ are the records of the Wool
Duty Unit of the Customs Service on September 11,
2001, as adjusted by the Customs Service to the extent
necessary to carry out this section. The amounts so
adjusted are not subject to administrative or judicial
review.
‘‘(e) AFFIDAVITS BY MANUFACTURERS.—
‘‘(1) AFFIDAVIT
REQUIRED.—A manufacturer
may not receive a payment under this section for cal-
endar year 2000, 2001, or 2002, as the case may be,
unless that manufacturer has submitted to the Cus-
toms Service for that calendar year a signed affidavit
that attests that, during that calendar year, the affi-
ant was a manufacturer in the United States de-
scribed in subsection (a), (b), or (c).
‘‘(2) TIMING.—An affidavit under paragraph (1)
shall be valid—
‘‘(A) in the case of a manufacturer de-
scribed in paragraph (1), (2)(A), or (3)(A) of
subsection (d) filing a claim for a payment for
calendar year 2000, only if the affidavit is post-
marked no later than 15 days after the date of
enactment of the Wool Manufacturer Payment
Clarification and Technical Corrections Act; and
‘‘(B) in the case of a claim for a payment
for calendar year 2001 or 2002, only if the affi-
davit is postmarked no later than March 1,
2002, or March 1, 2003, respectively.
‘‘(f) OFFSETS.—Notwithstanding any other provision
of this section, any amount otherwise payable under sub-
section (d) to a manufacturer in calendar year 2001 and,
where applicable, in calendar years 2002 and 2003, shall
be reduced by the amount of any payment received by that
manufacturer under this section before the enactment of the
Wool Manufacturer Payment Clarification and Technical
Corrections Act.
‘‘(g) DEFINITION.—For purposes of this section, the
manufacturer is the party that owns—
‘‘(1) imported worsted wool fabric, of the kind
described in heading 9902.51.11 or 9902.51.12 of the
Harmonized Tariff Schedule of the United States, at
the time the fabric is cut and sewn in the United
States into men’s or boys’ suits, suit-type jackets, or
trousers;
‘‘(2) imported wool yarn, of the kind described
in heading 9902.51.13 of such Schedule, at the time
the yarn is processed in the United States into wor-
sted wool fabric; or
‘‘(3) imported wool fiber or wool top, of the kind
described in heading 9902.51.14 of such Schedule, at
the time the wool fiber or wool top is processed in the
United States into wool yarn.’’.
(2) FUNDING.—There is authorized to be appro-
priated and is appropriated, out of amounts in the
General Fund of the Treasury not otherwise appro-
priated, $36,251,000 to carry out the amendments
made by paragraph (1).