IIB
107TH CONGRESS
1ST SESSION
H. R. 3009
IN THE SENATE OF THE UNITED STATES
NOVEMBER 16, 2001
Received; read twice and referred to the Committee on Finance
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
‘‘(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
effect 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 1 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 1 or more
ATPDEA beneficiary countries), whether
or not the apparel articles are also made
from any of the fabrics, fabric components
formed, or components knit-to-shape 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 Carribean 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).’’.
Passed the House of Representatives November 16,
2001.
Attest:
JEFF TRANDAHL,
Clerk.