pated in the garment industry in Mongolia at high 
rates, and that industry has historically provided 
safe and stable employment for women in Mongolia. 
The United Nations has recognized the high num-
bers of women deployed as part of Mongolia’s con-
tribution to peacekeeping operations. 
(10) In developing and expanding the cashmere 
industry in Mongolia, it is critical for Mongolia to 
take steps to ensure the protection of its grasslands 
and prevent overgrazing of cashmere goats. Since 
2018, Mongolia has been working with the United 
Nations Development Programme to implement the 
Mongolian Sustainable Cashmere Platform. The 
Platform’s objectives aim to improve cashmere 
traceability and Mongolia’s sustainable cashmere 
value chain. 
(11) Preferential treatment for imports into the 
United States of Mongolian products would benefit 
Mongolia at this critical time. 
SEC. 3. DUTY-FREE TREATMENT FOR CERTAIN IMPORTS 
FROM MONGOLIA. 
(a) IN GENERAL.—Subject to subsection (c), the 
President may provide duty-free treatment for any article 
described in subsection (b) that is imported directly from 
Mongolia into the customs territory of the United States. 
VerDate Sep 11 2014 
07:27 Dec 07, 2023
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6539.IH
H6539
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(b) ARTICLE DESCRIBED.— 
(1) IN GENERAL.—An article is described in 
this subsection if— 
(A) the article is the growth, product, or 
manufacture of Mongolia; 
(B) the article is classified under chapter 
51, 57, 60, 61, 62, 63, or 94 of the Har-
monized Tariff Schedule of the United States; 
(C)(i) the article is an apparel or textile 
article made of fabrics or fibers containing not 
less than 23 percent by weight of cashmere; or 
(ii) the sum of the cost or value of cash-
mere components of the article is not less than 
51 percent of the appraised value of the article 
at the time it is entered; 
(D) in the case of an article that is a tex-
tile or apparel article— 
(i) the yarn and fabric used to manu-
facture the article are wholly produced in 
Mongolia; and 
(ii) the article is wholly formed and 
cut, or its components are wholly knit-to- 
shape, in Mongolia; 
(E) the sum of the cost or value of the ma-
terials produced in, and the direct costs of proc-
VerDate Sep 11 2014 
07:27 Dec 07, 2023
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6539.IH
H6539
kjohnson on DSK7ZCZBW3PROD with $$_JOB
essing operations performed in, Mongolia or the 
customs territory of the United States is not 
less than 50 percent of the appraised value of 
the article at the time it is entered; and 
(F) the President determines that the arti-
cle is not import-sensitive, after receiving the 
advice of the United States International Trade 
Commission as described in section 503(e) of 
the Trade Act of 1974 (19 U.S.C. 2463(e)). 
(2) EXCLUSIONS.—An article shall not be treat-
ed as the growth, product, or manufacture of Mon-
golia for purposes of paragraph (1)(A) by virtue of 
having merely undergone— 
(A) simple combining or packaging oper-
ations; or 
(B) mere dilution with water or mere dilu-
tion with another substance that does not mate-
rially alter the characteristics of the article. 
(c) ELIGIBILITY REQUIREMENTS.—Duty-free treat-
ment may not be provided under this section unless the 
President determines and certifies to Congress that— 
(1) Mongolia meets each of the requirements 
set forth in— 
VerDate Sep 11 2014 
07:27 Dec 07, 2023
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6539.IH
H6539
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) paragraphs (1), (2), and (3) of section 
104(a) of the African Growth and Opportunity 
Act (19 U.S.C. 3703(a)); and 
(B) subparagraphs (A) through (F) of sec-
tion 113(a)(1) of such Act (19 U.S.C. 
3722(a)(1)); 
(2) Mongolia has effectively enforced environ-
mental laws, regulations, or other measures and ful-
filled its obligations under international agreements 
relating to the environment, including as such obli-
gations relate to public health; and 
(3) after taking into account the factors set 
forth in paragraphs (1) through (7) of subsection (c) 
of section 502 of the Trade Act of 1974 (19 U.S.C. 
2462), Mongolia meets the eligibility requirements 
described in such section 502. 
(d) VERIFICATION
WITH
RESPECT
TO
TRANS-
SHIPMENT FOR TEXTILE AND APPAREL ARTICLES.— 
(1) IN GENERAL.—Not later than January 1 of 
each year, the Commissioner of U.S. Customs and 
Border Protection shall verify that textile and ap-
parel articles imported from Mongolia to which duty- 
free treatment is extended under this section are not 
being unlawfully transshipped into the United 
States. 
VerDate Sep 11 2014 
07:27 Dec 07, 2023
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6539.IH
H6539
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(2) REPORT TO PRESIDENT AND CONGRESS.— 
If the Commissioner determines pursuant to para-
graph (1) that textile and apparel articles described 
in that paragraph are being unlawfully transshipped 
into the United States, the Commissioner shall re-
port that determination to the President and the ap-
propriate congressional committees. 
(e) WITHDRAWAL, SUSPENSION, OR LIMITATION OF 
PREFERENTIAL TREATMENT AND MANDATORY GRADUA-
TION.—The provisions of subsections (d) and (e) of sec-
tion 502 of the Trade Act of 1974 (19 U.S.C. 2462) shall 
apply with respect to Mongolia, without regard to whether 
title V of that Act (19 U.S.C. 2461 et seq.) is in effect 
pursuant to section 505 of that Act (19 U.S.C. 2465). 
(f) TERMINATION OF DUTY-FREE TREATMENT.—No 
duty-free treatment extended under this section shall re-
main in effect after December 31, 2029. 
(g) DEFINITIONS.—In this section: 
(1) CASHMERE.—The term ‘‘cashmere’’ means 
fine hair obtained from a cashmere goat (capra 
hircus laniger). 
(2) CUSTOMS
TERRITORY
OF
THE
UNITED 
STATES.—The term ‘‘customs territory of the United 
States’’ has the meaning given the term in General 
VerDate Sep 11 2014 
07:27 Dec 07, 2023
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6539.IH
H6539
kjohnson on DSK7ZCZBW3PROD with $$_JOB