I 
109TH CONGRESS 
2D SESSION 
H. R. 6346 
To extend certain trade preference programs, to authorize the extension 
of nondiscriminatory treatment (normal trade relations treatment) to 
the products of Vietnam, to modify temporarily certain rates of duty 
and make other technical amendments to the trade laws, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2006 
Mr. THOMAS introduced the following bill; which was referred to the 
Committee on Ways and Means; which was considered and agreed to 
A BILL 
To extend certain trade preference programs, to authorize 
the extension of nondiscriminatory treatment (normal 
trade relations treatment) to the products of Vietnam, 
to modify temporarily certain rates of duty and make 
other technical amendments to the trade laws, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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DIVISION A—TRADE 
PREFERENCE PROGRAMS 
TITLE I—AFRICAN GROWTH AND 
OPPORTUNITY ACT 
SEC. 101. SHORT TITLE. 
This title may be referred to as the ‘‘Africa Invest-
ment Incentive Act of 2006’’. 
SEC. 102. PREFERENTIAL TREATMENT OF APPAREL PROD-
UCTS OF LESSER DEVELOPED COUNTRIES. 
(a) IN
GENERAL.—Section 112 of the African 
Growth and Opportunity Act (19 U.S.C. 3721) is amend-
ed— 
(1) by redesignating subsections (c) through (e) 
as subsections (d) through (f); 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘The’’ and inserting ‘‘Subject to 
subsection (c), the’’ ; and 
(B) by striking subparagraph (B) and re-
designating subparagraph (C) as subparagraph 
(B); and 
(3) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) LESSER DEVELOPED COUNTRIES.— 
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‘‘(1) PREFERENTIAL TREATMENT OF PRODUCTS 
THROUGH SEPTEMBER 30, 2008.— 
‘‘(A) PRODUCTS COVERED.—In addition to 
the products described in subsection (b), and 
subject to paragraph (4), the preferential treat-
ment described in subsection (a) shall apply 
through September 30, 2008, to apparel articles 
wholly assembled, or knit-to-shape and wholly 
assembled, or both, in one or more lesser devel-
oped beneficiary sub-Saharan African countries, 
regardless of the country of origin of the fabric 
or the yarn used to make such articles, in an 
amount not to exceed the applicable percentage 
of the aggregate square meter equivalents of all 
apparel articles imported into the United States 
in the preceding 12-month period for which 
data are available. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the term ‘appli-
cable percentage’ means— 
‘‘(i) 2.9285 percent for the 1-year pe-
riod beginning October 1, 2005; 
‘‘(ii) 3.5 percent for the 1-year period 
beginning October 1, 2006; and 
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‘‘(iii) 3.5 percent for the 1-year period 
beginning October 1, 2007. 
‘‘(2) PREFERENTIAL TREATMENT OF PRODUCTS 
BEGINNING OCTOBER 1, 2008.— 
‘‘(A) IN
GENERAL.—In addition to the 
products described in subsection (b), the pref-
erential treatment described in subsection (a) 
shall apply to apparel articles described in sub-
paragraph (B) of a producer or entity control-
ling production that are imported directly from 
a lesser developed beneficiary sub-Saharan Afri-
can country during an applicable 1-year period, 
subject to the limitations set forth in subpara-
graph (H). 
‘‘(B) ARTICLES DESCRIBED.—The apparel 
articles referred to in subparagraph (A) are ap-
parel articles that are wholly assembled, or are 
knit-to-shape, in a lesser developed beneficiary 
sub-Saharan African country from any com-
bination of fabrics, fabric components, compo-
nents knit-to-shape, and yarns. 
‘‘(C) FOR EACH APPLICABLE 1-YEAR PE-
RIOD.—The preferential treatment under sub-
paragraph (A) applies to apparel articles de-
scribed in subparagraph (B) in any applicable 
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1-year period only if, for each entry in such pe-
riod, the sum of— 
‘‘(i) the cost or value of the materials 
produced in one or more beneficiary sub- 
Saharan African countries or one or more 
countries described in subparagraph (E), 
or any combination thereof, plus 
‘‘(ii) the direct costs of processing op-
erations (as defined in section 213(a)(3)) 
of the Caribbean Basin Economic Recovery 
Act performed in one or more beneficiary 
developed beneficiary sub-Saharan African 
countries or one or more countries de-
scribed in subparagraph (E), or any com-
bination thereof, 
is not less than the applicable percentage (as 
defined in subparagraph (I)(ii)) of the declared 
customs value of such apparel articles. 
‘‘(D) DEDUCTIONS.—In calculating cost or 
value under subparagraph (C)(i), there shall be 
deducted the cost or value of— 
‘‘(i) any foreign materials that are 
used in the production of the apparel arti-
cles in a lesser developed beneficiary sub- 
Saharan African country; and 
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‘‘(ii) any foreign materials that are 
used in the production of the materials de-
scribed in subparagraph (C)(i). 
‘‘(E) COUNTRIES DESCRIBED.—The coun-
tries referred to in subparagraph (C) are the 
following: 
‘‘(i) The United States. 
‘‘(ii) Any country that is a party to a 
free trade agreement with the United 
States that is in effect on the date of the 
enactment of the Africa Investment Incen-
tive Act of 2006, or that enters into force 
under the Bipartisan Trade Promotion Au-
thority Act of 2002 (19 U.S.C. 3801 et 
seq.). 
‘‘(iii) Any country designated as a 
beneficiary 
country 
under 
section 
213(b)(5)(B) of the Caribbean Basin Eco-
nomic Recovery Act. 
‘‘(iv) Any country designated as a 
beneficiary 
country 
under 
section 
204(b)(6)(B) of the Andean Trade Pref-
erence Act (19 U.S.C. 3203(b)(6)(B)). 
‘‘(F) ANNUAL AGGREGATION.— 
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‘‘(i) INITIAL APPLICABLE 1-YEAR PE-
RIOD.—In the initial applicable 1-year pe-
riod, the requirements under subparagraph 
(C) relating to applicable percentage may 
also be met for articles of a producer or an 
entity controlling production that enter 
during the initial applicable 1-year period 
by aggregating— 
‘‘(I) the cost or value of mate-
rials under clause (i) of subparagraph 
(C), and 
‘‘(II) the direct costs of proc-
essing operations under clause (ii) of 
subparagraph (C), 
of all apparel articles of that producer or 
entity controlling production that are whol-
ly assembled, or are knit-to-shape, in a 
lesser developed beneficiary sub-Saharan 
African country and are entered during the 
initial applicable 1-year period. 
‘‘(ii) OTHER APPLICABLE 1-YEAR PE-
RIODS.—In each of the second, third, 
fourth, fifth, sixth, and seventh applicable 
1-year periods, the requirements under 
subparagraph (C) relating to applicable 
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percentage may also be met for articles of 
a producer or an entity controlling produc-
tion that enter during the applicable 1-year 
period by aggregating— 
‘‘(I) the cost or value of mate-
rials under clause (i) of subparagraph 
(C), and 
‘‘(II) the direct costs of proc-
essing operations under clause (ii) of 
subparagraph (C), 
of all apparel articles of that producer or 
entity controlling production that are whol-
ly assembled, or are knit-to-shape, in a 
lesser developed beneficiary sub-Saharan 
African country and are entered during the 
preceding applicable 1-year period. 
‘‘(G) DEDUCTIONS.—In calculating the 
cost or value under subparagraph (F)(i)(I) or 
(F)(ii)(I), there shall be deducted the cost or 
value of— 
‘‘(i) any foreign materials that are 
used in the production of the articles in a 
lesser developed beneficiary sub-Saharan 
African country; and 
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‘‘(ii) any foreign materials that are 
used in the production of the materials de-
scribed 
in 
subparagraph 
(F)(i)(I) 
or 
(F)(ii)(I) (as the case may be). 
‘‘(H) QUANTITATIVE
LIMITATIONS.—The 
preferential treatment described in this para-
graph shall be extended, during each applicable 
1-year period, to not more than 3.5 percent of 
the aggregate square meter equivalents of all 
apparel articles imported into the United States 
in the most recent 12-month period for which 
data are available. No preferential treatment 
shall be provided under this paragraph after the 
last day of the seventh applicable 1-year period. 
‘‘(I) DEFINITIONS.—In this paragraph: 
‘‘(i) APPLICABLE 1-YEAR PERIOD.— 
‘‘(I) IN
GENERAL.—The term 
‘applicable 1-year period’ means each 
of the 1-year periods described in sub-
clauses (II) through (VIII). 
‘‘(II) INITIAL
APPLICABLE
1- 
YEAR PERIOD.—The term ‘initial ap-
plicable 1-year period’ means the 1- 
year period beginning October 1, 
2008. 
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‘‘(III) SECOND
APPLICABLE
1- 
YEAR PERIOD.—The term ‘second ap-
plicable 1-year period’ means the 1- 
year period beginning October 1, 
2009. 
‘‘(IV) THIRD APPLICABLE 1-YEAR 
PERIOD.—The term ‘third applicable 
1-year period’ means the 1-year pe-
riod beginning October 1, 2010. 
‘‘(V) FOURTH
APPLICABLE
1- 
YEAR PERIOD.—The term ‘fourth ap-
plicable 1-year period’ means the 1- 
year period beginning October 1, 
2011. 
‘‘(VI) FIFTH APPLICABLE 1-YEAR 
PERIOD.—The term ‘fifth applicable 
1-year period’ means the 1-year pe-
riod beginning October 1, 2012. 
‘‘(VII) SIXTH
APPLICABLE
1- 
YEAR PERIOD.—The term ‘sixth appli-
cable 1-year period’ means the 1-year 
period beginning October 1, 2013. 
‘‘(VIII) SEVENTH APPLICABLE 1- 
YEAR PERIOD..—the term ‘seventh ap-
plicable 1-year period’ means the 1- 
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year period beginning October 1, 
2014. 
‘‘(ii) APPLICABLE PERCENTAGE.—The 
term ‘applicable percentage’ means— 
‘‘(I) 50 percent or more during 
the initial applicable 1-year period, 
the second applicable 1-year period, 
and the third applicable 1-year period; 
‘‘(II) 55 percent or more during 
the fourth applicable 1-year period; 
and 
‘‘(III) 60 percent or more during 
the fifth, sixth, and seventh applicable 
1-year periods. 
‘‘(3) DEVELOPMENT
OF
PROCEDURE
TO
EN-
SURE COMPLIANCE.— 
‘‘(A) IN GENERAL.—The Bureau of Cus-
toms and Border Protection of the Department 
of Homeland Security shall, not later than 1 
year after the date of enactment of the Africa 
Investment Incentive Act of 2006, develop and 
implement methods and procedures to ensure 
ongoing compliance with the requirements set 
forth in paragraph (2). 
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‘‘(B) NONCOMPLIANCE.—If the Bureau of 
Customs and Border Protection finds that a 
producer or an entity controlling production has 
not satisfied the requirements of paragraph (2) 
in any applicable 1-year period, either for indi-
vidual entries entered pursuant to paragraph 
(2)(C) or for entries entered in the aggregate 
pursuant to paragraph (2)(F), then apparel ar-
ticles described in paragraph (2)(B) of that 
producer or entity shall be ineligible for pref-
erential treatment under paragraph (2) during 
any succeeding applicable 1-year period until— 
‘‘(i) the cost or value of materials 
under paragraph (2)(C)(i), plus 
‘‘(ii) the direct costs of processing op-
erations under paragraph (2)(C)(ii), 
of that producer or entity controlling produc-
tion, is not less than the applicable percentage 
that would otherwise apply under paragraph 
(2)(I)(ii), plus 10 percent, of the aggregate de-
clared customs value of all apparel articles of 
that producer or entity controlling production 
that are wholly assembled, or are knit-to-shape, 
in a sub-Saharan African country and are en-
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tered during the preceding applicable 1-year pe-
riod. 
‘‘(C) 
RETROACTIVE
APPLICATION
OF 
DUTY-FREE TREATMENT.— 
‘‘(i) IN GENERAL.—If— 
‘‘(I) a producer or an entity con-
trolling production is ineligible for 
preferential treatment under para-
graph (2) in an applicable 1-year pe-
riod because that producer or entity 
controlling production did not satisfy 
the requirements of paragraph (2)(C) 
or (2)(F), and 
‘‘(II) that producer or entity con-
trolling production satisfies the re-
quirements of subparagraph (B) of 
this paragraph in that applicable 1- 
year period, 
then, notwithstanding section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) or 
any other provision on law, upon proper 
request filed with the Bureau of Customs 
and Border Protection before the 90th day 
after the Bureau of Customs and Border 
Protection determines that subclause (II) 
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applies, any entry described in clause (ii) 
shall be liquidated or reliquidated as 
though such preferential treatment applied 
to such entry. 
‘‘(ii) ENTRIES.—An entry is described 
in this clause if it is an entry of any arti-
cles— 
‘‘(I) that was made during the 
applicable 1-year period referred to in 
clause (i)(I); and 
‘‘(II) with respect to which there 
would have been preferential treat-
ment under paragraph (2) if the pro-
ducer or entity controlling production 
had satisfied the requirements of 
paragraph (2)(C) or (2)(F) (as the 
case may be). 
‘‘(D) FABRICS
NOT
AVAILABLE
IN
COM-
MERCIAL QUANTITIES.—For purposes of deter-
mining the applicable percentage under para-
graph (2)(C) or (2)(F), there may be included 
in that percentage— 
‘‘(i) the cost of fabrics or yarns to the 
extent that apparel articles of such fabrics 
or yarns would be eligible for preferential 
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treatment, without regard to the source of 
the fabrics or yarns, under Annex 401 of 
the NAFTA; and 
‘‘(ii) the cost of fabrics or yarns that 
are designated as not being available in 
commercial quantities for purposes of— 
‘‘(I) section 213(b)(2)(A)(v) of 
the Caribbean Basin Economic Recov-
ery Act, 
‘‘(II) paragraph (5) of this sub-
section, 
‘‘(III) 
section 
204(b)(3)(B)(i)(III) or (ii) of the An-
dean Trade Preference Act, or 
‘‘(IV) any other provision, relat-
ing to determining whether a textile 
or apparel article is an originating 
good eligible for preferential treat-
ment, of a law that implements a free 
trade agreement that enters into force 
under the Bipartisan Trade Pro-
motion Authority Act of 2002, 
without regard to the source of the fabrics 
or yarns. 
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‘‘(4) SPECIAL RULES FOR PRODUCTS IN COM-
MERCIAL QUANTITIES IN AFRICA.— 
‘‘(A) PETITION PROCESS.—Upon a petition 
filed by an interested party (which may include 
a foreign manufacturer), the Commission shall 
determine whether a fabric or yarn produced in 
beneficiary sub-Saharan African countries is 
available in commercial quantities for use by 
lesser developed beneficiary sub-Saharan Afri-
can countries. 
‘‘(B) EFFECT
OF
AFFIRMATIVE
DETER-
MINATION.— 
‘‘(i) DETERMINATION
OF
QUANTITY 
AVAILABLE.—If the Commission deter-
mines under subparagraph (A) that a fab-
ric or yarn produced in beneficiary sub-Sa-
haran African countries is available in 
commercial quantities for use by lesser de-
veloped beneficiary sub-Saharan African 
countries, the Commission shall determine 
the quantity of the fabric or yarn that will 
be so available in lesser developed bene-
ficiary sub-Saharan African countries in 
the applicable 1-year period (as defined in 
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paragraph (2)(I)(i)) beginning after the 
determination is made. 
‘‘(ii) DETERMINATIONS.—In each case 
in which the Commission determines that a 
fabric or yarn is available in commercial 
quantities under subparagraph (A) for an 
applicable 1-year period, the Commission 
shall determine, before the end of that ap-
plicable 1-year period— 
‘‘(I) whether the fabric or yarn 
produced in beneficiary sub-Saharan 
African countries will be available in 
commercial quantities in the suc-
ceeding applicable 1-year period; and 
‘‘(II) if so, the quantity of the 
fabric or yarn that will be so available 
in that succeeding 1-year period, sub-
ject to clause (iii). 
‘‘(iii) 
DETERMINATION
REGARDING 
IMPORTED
ARTICLES.—After the end of 
each applicable 1-year period for which a 
determination under clause (i) is in effect, 
the Commission shall determine to what 
extent the quantity of the fabric or yarn 
determined under clause (i) to be available 
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in commercial quantities for use by lesser 
developed beneficiary sub-Saharan African 
countries was used in the production of ap-
parel articles receiving preferential treat-
ment under paragraph (1) or (2) that were 
entered in that applicable 1-year period. 
To the extent that the quantity so deter-
mined was not so used, then the Commis-
sion shall add to the quantity of that fabric 
or yarn determined to be available in the 
next applicable 1-year period the quantity 
not so used in the preceding applicable 1- 
year period. 
‘‘(C) DENIM.—Denim articles provided for 
in subheading 5209.42.00 of the Harmonized 
Tariff Schedule of the United States shall be 
deemed to have been determined to be in abun-
dant supply under subparagraph (A) in an 
amount of 30,000,000 square meter equivalents 
for the 1-year period beginning October 1, 
2006. 
‘‘(D) PRESIDENTIAL
AUTHORITY
TO
RE-
STRICT IMPORTS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the President may by proclamation 
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provide that apparel articles otherwise eli-
gible for preferential treatment under 
paragraph (1) or (2) that contain a fabric 
or yarn determined to be available in com-
mercial quantities under subparagraph (A) 
may not receive such preferential treat-
ment in an applicable 1-year period un-
less— 
‘‘(I) the fabric or yarn in such 
articles was produced in 1 or more 
beneficiary sub-Saharan African coun-
tries; or 
‘‘(II) the Commission has deter-
mined that the quantity of the fabric 
or yarn determined under subpara-
graph (B) (or (C), as the case may 
be) to be available in lesser developed 
beneficiary sub-Saharan African coun-
tries for that applicable 1-year period 
has already been used in the produc-
tion of apparel articles receiving pref-
erential treatment under paragraph 
(1) or (2) that were entered in that 
applicable 1-year period. 
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‘‘(ii) MANDATORY RESTRICTION.—If a 
fabric or yarn is determined to be available 
in commercial quantities under subpara-
graph (A) in an applicable 1-year period, 
and for 2 consecutive applicable 1-year pe-
riods the quantities determined to be so 
available are not used in the production of 
apparel articles receiving preferential treat-
ment under paragraph (1) or (2) that were 
entered during those 2 applicable 1-year 
periods, then beginning in the succeeding 
applicable 1-year period, apparel articles 
containing that fabric or yarn are ineligible 
for preferential treatment under paragraph 
(1) or (2) in any succeeding applicable 1- 
year period unless the Commission has de-
termined that the quantity of the fabric or 
yarn determined under subparagraph (B) 
(or (C), as the case may be) to be available 
in lesser developed beneficiary sub-Saharan 
African countries for that applicable 1-year 
period has already been used in the pro-
duction of apparel articles receiving pref-
erential treatment under paragraph (1) or 
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(2) that were entered in that applicable 1- 
year period. 
‘‘(E) 
PROCEDURES.—The 
Commission 
shall use the procedures prescribed in sub-
section (b)(3)(C)(iv) for the Secretary of Com-
merce in making determinations under this 
paragraph. 
‘‘(5) REMOVAL OF DESIGNATION OF FABRICS 
OR YARNS NOT AVAILABLE IN COMMERCIAL QUAN-
TITIES.—If the President determines that— 
‘‘(A) any fabric or yarn described in para-
graph (4)(A) was determined to be eligible for 
preferential treatment, or 
‘‘(B) any fabric or yarn described in para-
graph (4)(B) was designated as not being avail-
able in commercial quantities, 
on the basis of fraud, the President may remove the 
eligibility or designation (as the case may be) of that 
fabric or yarn with respect to articles entered after 
such removal. 
‘‘(6) APPLICABILITY OF OTHER PROVISIONS.— 
Subsection (b)(3)(C) applies to apparel articles eligi-
ble for preferential treatment under this subsection 
to the same extent as that subsection applies to ap-
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parel articles eligible for preferential treatment 
under subsection (b)(3). 
‘‘(7) DEFINITIONS.—In this subsection: 
‘‘(A) COMMISSION.—The term ‘Commis-
sion’ means the United States International 
Trade Commission. 
‘‘(B) ENTER; ENTRY.—The terms ‘enter’ 
and ‘entry’ refer to the entry, or withdrawal 
from warehouse for consumption, in the cus-
toms territory of the United States. 
‘‘(C) FOREIGN MATERIAL.—The term ‘for-
eign material’ means a material produced in a 
country other than a sub-Saharan African 
country or a country described in paragraph 
(2)(E). 
‘‘(D) LESSER
DEVELOPED
BENEFICIARY 
SUB-SAHARAN
AFRICAN
COUNTRY.—The term 
‘lesser developed beneficiary sub-Saharan Afri-
can country’ means— 
‘‘(i) a beneficiary sub-Saharan African 
country that had a per capita gross na-
tional product of less than $1,500 in 1998, 
as measured by the International Bank for 
Reconstruction and Development; 
‘‘(ii) Botswana; and 
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‘‘(iii) Namibia.’’. 
(b) ADDITIONAL PREFERENTIAL TREATMENT.—Sec-
tion 112(b) of the African Growth and Opportunity Act 
(19 U.S.C. 3721(b)) is amended by adding at the end the 
following new paragraph: 
‘‘(8) TEXTILE
ARTICLES
ORIGINATING
EN-
TIRELY IN ONE OR MORE LESSER DEVELOPED BEN-
EFICIARY SUB-SAHARAN AFRICAN COUNTRIES.—Tex-
tile and textile articles classifiable under chapters 50 
through 60 or chapter 63 of the Harmonized Tariff 
Schedule of the United States that are products of 
a lesser developed beneficiary sub-Saharan African 
country and are wholly formed in one or more such 
countries from fibers, yarns, fabrics, fabric compo-
nents, or components knit-to-shape that are the 
product of one or more such countries.’’. 
(c) TECHNICAL AMENDMENT.—Section 112(e)(3) of 
the African Growth and Opportunity Act (as redesignated 
by subsection (a)(1) of this section) is amended by striking 
‘‘subsection (b)’’ and inserting ‘‘subsections (b) and (c)’’. 
SEC. 103. TECHNICAL CORRECTIONS. 
Section 112 of the African Growth and Opportunity 
Act (19 U.S.C. 3721) is amended as follows: 
(1) Subsection (b)(5) is amended by adding at 
the end the following new subparagraph: 
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‘‘(C) REMOVAL OF DESIGNATION OF FAB-
RICS OR YARNS NOT AVAILABLE IN COMMER-
CIAL QUANTITIES.—If the President determines 
that any fabric or yarn was determined to be el-
igible for preferential treatment under subpara-
graph (A) on the basis of fraud, the President 
is authorized to remove that designation from 
that fabric or yarn with respect to articles en-
tered after such removal.’’. 
(2) Subsection (e) is amended by adding at the 
end the following: 
‘‘(4) ENTER; ENTERED.—The terms ‘enter’ and 
‘entered’ refer to the entry, or withdrawal from 
warehouse for consumption, in the customs territory 
of the United States.’’. 
(3) Subsection (f) is amended by striking 
‘‘2008’’ and inserting ‘‘2015’’. 
SEC. 104. SUB-SAHARAN AFRICA ECONOMIC ACTIVITY 
CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to other credits) is amended by adding at 
the end the following new section: 
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