IB
Union Calendar No. 175
107TH CONGRESS
1ST SESSION
H. R. 3009
[Report No. 107–290]
To extend the Andean Trade Preference Act, to grant additional trade benefits
under that Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 3, 2001
Mr. CRANE (for himself and Mr. THOMAS) introduced the following bill; which
was referred to the Committee on Ways and Means
NOVEMBER 14, 2001
Additional sponsors: Mr. KIRK, Mr. DIAZ-BALART, Mr. SHAW, Mr. KNOLLEN-
BERG, Mr. MORAN of Virginia, Mr. CANTOR, Mr. JEFFERSON, Mr. RAN-
GEL, Mr. RAMSTAD, Mrs. TAUSCHER, Mr. GOSS, Mr. HYDE, Mr.
PORTMAN, Mr. ENGLISH, Mr. KOLBE, Mr. MCDERMOTT, Mr. BRADY of
Texas, Ms. PRYCE of Ohio, Mr. ROYCE, and Mr. DREIER
NOVEMBER 14, 2001
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on October 3, 2001]
A BILL
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, 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 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 IMPORT-
SENSITIVE.—The President may proclaim duty-free
treatment under this title for any article described in
subparagraph (A), (B), (C), or (D) that is the growth,
product, or manufacture of an ATPDEA beneficiary
country and that meets the requirements of this sec-
tion, if the President determines that such article is
not import-sensitive in the context of imports from
ATPDEA beneficiary countries:
‘‘(A) Footwear not designated at the time of
the effective date of this Act as eligible for the
purpose of the generalized system of preferences
under title V of the Trade Act of 1974.
‘‘(B) Petroleum, or any product derived
from petroleum, provided for in headings 2709
and 2710 of the HTS.
‘‘(C) Watches and watch parts (including
cases, 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.
‘‘(D) Handbags, luggage, flat goods, work
gloves, and leather wearing apparel that were
not designated on August 5, 1983, as eligible ar-
ticles 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 effect
on that date;
‘‘(B) rum and tafia classified in subheading
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 restrictions,
limitations, or consultation levels, but only if
such articles are described in subparagraph (B).
‘‘(B) COVERED ARTICLES.—The apparel ar-
ticles referred to in subparagraph (A) are the fol-
lowing:
‘‘(i) APPAREL
ARTICLES
ASSEMBLED
FROM PRODUCTS OF THE UNITED STATES
AND ATPDEA BENEFICIARY COUNTRIES OR
PRODUCTS NOT AVAILABLE IN COMMERCIAL
QUANTITIES.—Apparel articles sewn or oth-
erwise assembled in 1 or more ATPDEA
beneficiary countries, or the United States,
or both, exclusively from any one or any
combination of the following:
‘‘(I) Fabrics or fabric components
formed, or components knit-to-shape,
in the United States, from yarns
formed in the United States or 1 or
more ATPDEA beneficiary countries
(including fabrics not formed from
yarns, if such fabrics are classifiable
under heading 5602 or 5603 of the
HTS and are formed in the United
States).
‘‘(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 coun-
tries, if such fabrics (including fabrics
not formed from yarns, if such fabrics
are classifiable under heading 5602 or
5603 of the HTS and are formed in 1
or more ATPDEA beneficiary coun-
tries) 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 articles
of such fabrics or yarn would be eligi-
ble for preferential treatment, without
regard to the source of the fabrics or
yarn, under Annex 401 of the NAFTA.
‘‘(ii) ADDITIONAL FABRICS.—At the re-
quest of any interested party, the President
is authorized to proclaim additional fabrics
and yarns as eligible for preferential treat-
ment under clause (i)(III) if—
‘‘(I) the President determines that
such fabrics or yarns 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 action, 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).
‘‘(iii) APPAREL ARTICLES ASSEMBLED
IN 1 OR MORE ATPDEA BENEFICIARY COUN-
TRIES
FROM
REGIONAL
FABRICS
OR
RE-
GIONAL
COMPONENTS.—(I) Subject to the
the United States in the preceding 12-
month period for which data are available.
‘‘(III) For purposes of subclause (II),
the term ‘applicable percentage’ means 3
percent for the 1-year period beginning De-
cember 1, 2001, increased in each of the 5
succeeding 1-year periods by equal incre-
ments, so that for the period beginning De-
cember 1, 2005, the applicable percentage
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 otherwise
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 assem-
bled product. Examples of findings and
trimmings are sewing thread, hooks
and eyes, snaps, buttons, ‘bow buds’,
decorative lace, trim, elastic strips,
zippers, including zipper tapes and la-
bels, and other similar products.
‘‘(II) 
CERTAIN
INTERLINING.—
(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
subparagraph because the article con-
tains fibers or yarns not wholly formed
in the United States or in one or more
ATPDEA beneficiary countries shall
not be ineligible for such treatment if
the total weight of all such fibers or
yarns is not more than 7 percent of the
total weight of the good.
‘‘(C) HANDLOOMED, HANDMADE, AND FOLK-
LORE ARTICLES.—For purposes of subparagraph
(B)(iv), the President shall consult with rep-
resentatives of the ATPDEA beneficiary coun-
tries 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 Ap-
pendix 3.1.B.11 of the Annex.
‘‘(D) PENALTIES FOR TRANSSHIPMENT.—
‘‘(i) PENALTIES FOR EXPORTERS.—If
the President determines, based on sufficient
evidence, that an exporter has engaged in
transshipment with respect to apparel arti-
cles from an ATPDEA beneficiary country,
then the President shall deny all benefits
under this title to such exporter, and any
successor of such exporter, for a period of 2
years.
‘‘(ii) PENALTIES
FOR
COUNTRIES.—
Whenever the President finds, based on suf-
ficient evidence, that transshipment has oc-
curred, the President shall request that the
ATPDEA 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 ap-
parel articles that may be imported into the
United States from such country by the
quantity of the transshipped articles multi-
plied 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 dis-
closure of the true information would mean
or would have meant that the article is or
was ineligible for preferential treatment
under subparagraph (A).
‘‘(E) BILATERAL EMERGENCY ACTIONS.—
‘‘(i) IN GENERAL.—The President may
take bilateral emergency tariff actions of a
kind described in section 4 of the Annex
with respect to any apparel article im-
ported from an ATPDEA beneficiary coun-
try if the application of tariff treatment
under subparagraph (A) to such article re-
sults in conditions that would be cause for
the taking of such actions under such sec-
tion 4 with respect to a like article de-
scribed 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 mean
the period ending December 31, 2006;
and
‘‘(III) the requirements to consult
specified in section 4 of the Annex
shall be treated as satisfied if the
President requests consultations with
the ATPDEA beneficiary country in
question and the country does not
agree to consult within the time period
specified under section 4.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential treatment under
paragraph (1) 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 (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 President
that each country described in sub-
clause (II)—
‘‘(aa) has implemented and
follows; or
ported under paragraph (1) 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.
‘‘(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, 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 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 Uru-
guay 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 DES-
IGNATION.—Section 203(e)(1) of the Andean Trade Pref-
erence 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 Economic
Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as fol-
lows:
(1) Clause (i) is amended by striking the matter
preceding subclause (I) and inserting the following:
‘‘(i) APPAREL
ARTICLES
ASSEMBLED
IN
ONE
OR
MORE
CBTPA
BENEFICIARY
COUNTRIES.—Apparel articles sewn or 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, (includ-
ing 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 coun-
tries 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 October 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 otherwise
assembled in one or more CBTPA bene-
ficiary 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 (including 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 Opportunity
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 follows:
‘‘(1) APPAREL ARTICLES ASSEMBLED IN ONE OR
MORE
BENEFICIARY
SUB-SAHARAN
AFRICAN
COUN-
TRIES.—Apparel articles sewn or otherwise assembled
in one or more beneficiary sub-Saharan African
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 follows:
‘‘(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 Afri-
can countries with thread formed in the United States
from fabrics wholly formed in the United States and
cut in one or more beneficiary sub-Saharan 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 FABRIC
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 origi-
nating 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 beneficiary
sub-Saharan African countries), or from components
knit-to-shape in one or more beneficiary sub-Saharan
African countries from yarns originating either in the
United States or one or more beneficiary sub-Saharan
African countries, or apparel articles wholly formed
on seamless knitting machines in a beneficiary sub-
Saharan African country from yarns originating ei-
ther in the United States or one or more beneficiary
sub-Saharan African countries, subject to the fol-
lowing:’’;
(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 subpara-
graph (A), preferential treatment under this
paragraph shall be extended through Sep-
tember 30, 2004, for apparel articles wholly
assembled, or knit-to-shape and wholly as-
sembled, or both, in one or more lesser devel-
oped beneficiary sub-Saharan African coun-
tries regardless of the country of origin of
the fabric or the yarn used to make such ar-
ticles.
‘‘(ii) 
LESSER
DEVELOPED
BENE-
FICIARY SUB-SAHARAN AFRICAN COUNTRY.—
For purposes of clause (i), the term ‘lesser
developed beneficiary sub-Saharan African
country’ means—
‘‘(I) a beneficiary sub-Saharan
African country that had a per capita
gross national product of less than
$1,500 in 1998, as measured by the