United States-Jordan Free Trade Area Implementation Act
PL 107-43 (H.R.2603), enacted 09/28/2001

PUBLIC LAW 107-43—SEPT. 28, 2001 
115 STAT. 243 
Public Law 107-43 
107th Congress 
An Act 
To implement the agreement establishing a United States-Jordan free trade area. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "United States-Jordan Free Trade 
Area Implementation Act". 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to implement the agreement between the United States 
and Jordan establishing a free trade area; 
(2) to strengthen and develop the economic relations 
between the United States and Jordan for their mutual benefit; 
and 
(3) to establish free trade between the 2 nations through 
the removal of trade barriers. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) AGREEMENT.—The term "Agreement" means the Agree-
ment between the United States of America and the Hashemite 
Kingdom of Jordan on the Establishment of a Free Trade 
Area, entered into on October 24, 2000. 
(2) HTS.—The term "HTS" means the Harmonized Tariff 
Schedule of the United States. 
TITLE I—TARIFF MODIFICATIONS; 
RULES OF ORIGIN 
Sept. 28, 2001 
[H.R. 2603] 
United States-
Jordan Free 
Trade Area 
Implementation 
Act. 
Exports and 
imports. 
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note. 
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note. 
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note. 
SEC. 101. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.— 
The President may proclaim— 
(1) such modifications or continuation of any duty; 
(2) such continuation of duty-free or excise treatment; or 
(3) such additional duties, 
as the President determines to be necessary or appropriate to 
carry out article 2.1 of the Agreement and the schedule of duty 
reductions with respect to Jordan set out in Annex 2.1 of the 
Agreement. 
(b) 
OTHER 
TARIFF 
MODIFICATIONS.—^The 
President 
may 
proclaim— 
(1) such modifications or continuation of any duty; 
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115 STAT. 244 
PUBLIC LAW 107-43—SEPT. 28, 2001 
(2) such continuation of duty-free or excise treatment; or 
(3) such additional duties, 
as the President determines to be necessary or appropriate to 
maintain the general level of reciprocal and mutually advantageous 
concessions with respect to Jordan provided for by the Agreement. 
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SEC. 102. RULES OF ORIGIN. 
(a) IN GENERAL.— 
(1) ELIGIBLE ARTICLES.— 
(A) IN GENERAL.—The reduction or elimination of any 
duty imposed on any article by the United States provided 
for in the Agreement shall apply only if— 
(i) that article is imported directly from Jordan 
into the customs territory of the United States; and 
(ii) that article— 
(I) is wholly the growth, product, or manufac-
ture of Jordan; or 
(II) is a new or different article of commerce 
that has been grown, produced, or manufactured 
in Jordan and meets the requirements of subpara-
graph (B). 
(B) REQUIREMENTS.— 
(i) GENERAL RULE.—The requirements of this 
subparagraph are that with respect to an article 
described in subparagraph (A)(ii)(II), the sum of— 
(I) the cost or value of the materials produced 
in Jordan, plus 
(II) the direct costs of processing operations 
performed in Jordan, 
is not less than 35 percent of the appraised value 
of such article at the time it is entered. 
(ii) MATERIALS PRODUCED IN UNITED STATES.—If 
the cost or value of materials produced in the customs 
territory of the United States is included with respect 
to an article to which this paragraph applies, an 
amount not to exceed 15 percent of the appraised value 
of the article at the time it is entered that is attrib-
utable to such United States cost or value may be 
applied toward determining the percentage referred 
to in clause (i). 
(2) EXCLUSIONS.—No article may be considered to meet 
the requirements of paragraph (1)(A) by virtue of having merely 
undergone— 
(A) simple combining or packaging operations; or 
(B) mere dilution with water or mere dilution with 
another substance that does not materially alter the 
characteristics of the article. 
(b) DIRECT COSTS OF PROCESSING OPERATIONS.— 
(1) IN GENERAL.—^As used in this section, the term "direct 
costs of processing operations" includes, but is not limited to— 
(A) all actual labor costs involved in the growth, 
production, manufacture, or assembly of the specific mer-
chandise, including fringe benefits, on-the-job training, and 
the cost of engineering, supervisory, quality control, and 
similar personnel; and 
PUBLIC LAW 107-43—SEPT. 28, 2001 
115 STAT. 245 
(B) dies, molds, tooling, and depreciation on machinery 
and equipment which are allocable to the specific merchan-
dise. 
(2) EXCLUDED COSTS.—The term "direct costs of processing 
operations" does not include costs which are not directly attrib-
utable to the merchandise concerned, or are not costs of manu-
facturing the product, such as— 
(A) profit; and 
(B) general expenses of doing business which are either 
not allocable to the specific merchandise or are not related 
_ 
to the growth, production, manufacture, or assembly of 
the merchandise, such as administrative salaries, casualty 
and liability insurance, advertising, and salesmen's sala-
ries, commissions, or expenses. 
(c) TEXTILE AND APPAREL ARTICLES.— 
(1) IN GENERAL.—^A textile or apparel article imported 
directly from Jordan into the customs territory of the United 
States shall be considered to meet the requirements of para-
graph (1)(A) of subsection (a) only if— 
(A) the article is wholly obtained or produced in Jordan; 
(B) the article is a yam, thread, twine, cordage, rope, 
cable, or braiding, and— 
(i) the constituent staple fibers are spun in Jordan, 
or 
(ii) the continuous filament is extruded in Jordan; 
(C) the article is a fabric, including a fabric classified 
under chapter 59 of the HTS, and the constituent fibers, 
filaments, or yams are woven, knitted, needled, tufted, 
felted, entangled, or transformed by any other fabric-
making process in Jordan; or 
(D) the article is any other textile or apparel article 
that is wholly assembled in Jordan from its component 
pieces. 
(2) DEFINITION.—For purposes of paragraph (1), an article 
is "wholly obtained or produced in Jordan" if it is wholly the 
growth, product, or manufacture of Jordan. 
(3) SPECIAL RULES.— 
(A) CERTAIN MADE-UP ARTICLES, TEXTILE ARTICLES IN 
THE PIECE, AND CERTAIN OTHER TEXTILES AND TEXTILE ARTI-
CLES.—Notwithstanding paragraph (1)(D) and except as 
provided in subparagraphs (C) and (D) of this paragraph, 
subparagraph (A), (B), or (C) of paragraph (1), as appro-
priate, shall determine whether a good that is classified 
under one of the following headings or subheadings of 
the HTS shall be considered to meet the requirements 
of paragraph (1)(A) of subsection (a): 5609, 5807, 5811, 
6209.20.50.40, 6213, 6214, 6301, 6302, 6304, 6305, 6306, 
6307.10, 6307.90, 6308, and 9404.90. 
(B) 
CERTAIN KNIT-TO-SHAPE TEXTILES AND TEXTILE 
ARTICLES.—Notwithstanding paragraph (1)(D) and except 
as provided in subparagraphs (C) and (D) of this paragraph, 
a textile or apparel article which is knit-to-shape in Jordan 
shall be considered to meet the requirements of paragraph 
(1)(A) of subsection (a). 
(C) CERTAIN DYED AND PRINTED TEXTILES AND TEXTILE 
> ARTICLES.—Notwithstanding paragraph 
dXD), a good 
classified 
under 
heading 
6117.10, 
6213.00, 
6214.00. 
115 STAT. 246 
PUBLIC LAW 107-43—SEPT. 28, 2001 
6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 
6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 
6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for 
a good classified under any such heading as of cotton 
or of wool or consisting of fiber blends containing 16 percent 
or more by weight of cotton, shall be considered to meet 
the requirements of paragraph (1)(A) of subsection (a) if 
the fabric in the good is both dyed and printed in Jordan, 
and such dyeing and printing is accompanied by 2 or more 
of the following finishing operations: bleaching, shrinking, 
fulling, napping, decating, permanent stiffening, weighting, 
permanent embossing, or moireing. 
(D) FABRICS OF SILK, COTTON, MANMADE FIBER OR VEGE-
TABLE FIBER.—Notwithstanding paragraph (1)(C), a fabric 
classified under the HTS as of silk, cotton, man-made fiber, 
or vegetable fiber shall be considered to meet the require-
ments of paragraph (1)(A) of subsection (a) if the fabric 
is both dyed and printed in Jordan, and such dyeing and 
printing is accompanied by 2 or more of the following 
finishing operations: bleaching, shrinking, fulling, napping, 
decating, permanent 
stiffening, 
weighting, 
permanent 
embossing, or moireing. 
(4) MULTICOUNTRY RULE.—If the origin of a textile or 
apparel article cannot be determined under paragraph (1) or 
(3), then that article shall be considered to meet the require-
ments of paragraph (1)(A) of subsection (a) if— 
(A) the most important assembly or manufacturing 
process occurs in Jordan; or 
(B) if the applicability of paragraph (1)(A) of subsection 
(a) cannot be determined under subparagraph (A), the last 
important assembly or manufacturing occurs in Jordan. 
(d) EXCLUSION.—^A good shall not be considered to meet the 
requirements of paragraph (1)(A) of subsection (a) if the good— 
(1) is imported into Jordan, and, at the time of importation, 
would be classified under heading 0805 of the HTS; and 
(2) is processed in Jordan into a good classified under 
any of subheadings 2009.11 through 2009.30 of the HTS. 
(e) REGULATIONS.—The Secretary of the Treasury, after con-
sultation with the United States Trade Representative, shall pre-
scribe such regulations as may be necessary to carry out this 
section. 
TITLE II—RELIEF FROM IMPORTS 
Subtitle A—General Provisions 
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SEC. 201. DEFINITIONS. 
As used in this title: 
(1) COMMISSION.—The term "Commission" means the 
United States International Trade Commission. 
(2) JORDANIAN ARTICLE.—The term "Jordanian article" 
means an article that qualifies for reduction or elimination 
of a duty under section 102. 
PUBLIC LAW 107-43—SEPT. 28, 2001 
115 STAT. 247 
Subtitle B—Relief From Imports 
Benefiting From The Agreement 
SEC. 211. COMMENCING OF ACTION FOR RELIEF. 
(a) FILING OF PETITION.— 
(1) IN GENERAL.—^A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the 
United States under the Agreement may be filed with the 
Commission by an entity, including a trade association, firm, 
certified or recognized union, or group of workers that is rep-
resentative of an industry. The Commission shall transmit 
a copy of any petition filed under this subsection to the United 
States Trade Representative. 
(2) PROVISIONAL RELIEF.—^An entity filing a petition under 
this subsection may request that provisional relief be provided 
as if the petition had been filed under section 202(a) of the 
Trade Act of 1974. 
(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical 
circumstances exist shall be included in the petition. 
(b) INVESTIGATION AND DETERMINATION.— 
(1) IN GENERAL.—^Upon the filing of a petition under sub-
section (a), the Commission, unless subsection (d) applies, shall 
promptly initiate an investigation to determine whether, as 
a result of the reduction or elimination of a duty provided 
for under the Agreement, a Jordanian article is being imported 
into the United States in such increased quantities, in absolute 
terms or relative to domestic production, and under such condi-
tions that imports of the Jordanian article alone constitute 
a substantial cause of serious injury or threat thereof to the 
domestic industry producing an article that is like, or directly 
competitive with, the imported article. 
(2) CAUSATION.—For purposes of this subtitle, a Jordanian 
article is being imported into the United States in increased 
quantities as a result of the reduction or elimination of a 
duty provided for under the Agreement if the reduction or 
elimination is a cause that contributes significantly to the 
increase in imports. Such cause need not be equal to or greater 
than any other cause. 
(c) APPLICABLE PROVISIONS.—The following provisions of section 
202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect 
to any investigation initiated under subsection (b): 
(1) Paragraphs (1)(B) and (3) of subsection (b). 
(2) Subsection (c). 
(3) Subsection (d). 
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation 
may be initiated under this section with respect to any Jordanian 
article if import relief has been provided under this subtitle with 
respect to that article. 
SEC. 212. COMMISSION ACTION ON PETITION. 
(a) DETERMINATION.—By no later than 120 days (180 days 
if critical circumstances have been alleged) after the date on which 
an investigation is initiated under section 211(b) with respect to 
a petition, the Commission shall make the determination required 
under that section. 
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115 STAT. 248 
PUBLIC LAW 107-43—SEPT. 28, 2001 
Deadline. 
Federal Register, 
publication. 
President. 
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Deadline. 
(b) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-
TION AFFIRMATIVE.—If the determination made by the Commission 
under subsection (a) with respect to imports of an article is affirma-
tive, the Commission shall find, and recommend to the President 
in the report required under subsection (c), the amount of import 
relief that is necessary to remedy or prevent the injury found 
by the Commission in the determination and to facilitate the efforts 
of the domestic industry to make a positive adjustment to import 
competition. The import relief recommended by the Commission 
under this subsection shall be limited to that described in section 
213(c). 
(c) REPORT TO PRESIDENT.—^No later than the date that is 
30 days after the date on which a determination is made under 
subsection (a) with respect to an investigation, the Commission 
shall submit to the President a report that shall include— 
(1) a statement of the basis for the determination; 
(2) dissenting and separate views; and 
(3) any finding made under subsection (b) regarding import 
relief. 
(d) PUBLIC NOTICE.—Upon submitting a report to the President 
under subsection (c), the Commission shall promptly make public 
such report (with the exception of information which the Commis-
sion determines to be confidential) and shall cause a summary 
thereof to be published in the Federal Register. 
(e) APPLICABLE PROVISIONS.—For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect 
to determinations and findings made under this section as if such 
determinations and findings were made under section 202 of the 
Trade Act of 1974 (19 U.S.C. 2252). 
SEC. 213. PROVISION OF RELIEF. 
(a) IN GENERAL.—No later than the date that is 30 days after 
the date on which the President receives the report of the Commis-
sion containing an affirmative determination of the Commission 
under section 212(a), the President shall provide relief from imports 
of the article that is the subject of such determination to the 
extent that the President determines necessary to prevent or rem-
edy the injury found by the Commission and to facilitate the efforts 
of the domestic industry to make a positive adjustment to import 
competition, unless the President determines that the provision 
of such relief is not in the national economic interest of the United 
States or, in extraordinary circumstances, that the provision of 
such relief would cause serious harm to the national security of 
the United States. 
(b) NATIONAL ECONOMIC INTEREST.—The President may deter-
mine under subsection (a) that providing import relief is not in 
the national economic interest of the United States only if the 
President finds that taking such action would have an adverse 
impact on the United States economy clearly greater than the 
benefits of taking such action. 
(c) NATURE OF RELIEF.—The import relief (including provisional 
relief) that the President is authorized to provide under this subtitle 
with respect to imports of an article is— 
(1) the suspension of any further reduction provided for 
under the United States Schedule to Annex 2.1 of the Agree-
ment in the duty imposed on that article; 
PUBLIC LAW 107-43—SEPT. 28, 2001 
115 STAT. 249 
(2) an increase in the rate of duty imposed on such article 
to a level that does not exceed the lesser of— 
(A) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided; or 
(B) the column 1 general rate of duty imposed under 
the HTS on like articles on the day before the date on 
which the Agreement enters into force; or 
(3) in the case of a duty applied on a seasonal basis to 
that article, an increase in the rate of duty imposed on the 
article to a level that does not exceed the column 1 general 
rate of duty imposed under the HTS on the article for the 
corresponding season occurring immediately before the date 
on which the Agreement enters into force. 
(d) PERIOD OF RELIEF.—The import relief that the President 
is authorized to provide under this section may not exceed 4 years. 
\ 
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—When import 
relief iinder this subtitle is terminated with respect to an article— 
(1) the rate of duty on that article after such termination 
and on or before December 31 of the year in which termination 
occurs shall be the rate that, according to the United States 
Schedule to Annex 2.1 of the Agreement for the staged elimi-
nation of the tariff, would have been in effect 1 year after 
the initiation of the import relief action under section 211; 
and 
(2) the tariff treatment for that article after December 
31 of the year in which termination occurs shall be, at the 
discretion of the President, either— 
(A) the rate of duty conforming to the applicable rate 
set out in the United States Schedule to Annex 2.1; or 
(B) the rate of duty resulting from the elimination 
of the tariff in equal annual stages ending on the date 
set out in the United States Schedule to Annex 2.1 for 
the elimination of the tariff. 
SEC. 214. TERMINATION OF RELIEF AUTHORITY. 
19 USC 2112 
(a) GENERAL RULE.—Except as provided in subsection (b), no 
import relief may be provided under this subtitle after the date 
that is 15 years after the date on which the Agreement enters 
into force. 
(b) EXCEPTION.—Import relief may be provided under this sub-
title in the case of a Jordanian article after the date on which 
such relief would, but for this subsection, terminate under sub-
section (a), but only if the Government of Jordan consents to such 
provision. 
SEC. 215. COMPENSATION AUTHORITY. 
19 USC 2112 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
section 213 shall be treated as action taken under chapter 1 of 
title II of such Act. 
SEC. 216. SUBMISSION OF PETITIONS. 
19 USC 2112 
A petition for import relief may be submitted to the Commission 
under— 
(1) this subtitle; 
(2) chapter 1 of title II of the Trade Act of 1974; or 
115 STAT. 250 
PUBLIC LAW 107-43—SEPT. 28, 2001 
(3) under both this subtitle and such chapter 1 at the 
same time, in which case the Commission shall consider such 
petitions jointly. 
Subtitle C—Cases Under Title II of The 
Trade Act of 1974 
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SEC. 221. FINDINGS AND ACTION ON JORDANIAN IMPORTS. 
(a) EFFECT OF IMPORTS.—If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974, the Commission 
makes an affirmative determination (or a determination which the 
President may treat as an affirmative determination under such 
chapter by reason of section 330(d) of the Tariff Act of 1930), 
the Commission shall also find (and report to the President at 
the time such injury determination is submitted to the President) 
whether imports of the article from Jordan are a substantial cause 
of serious injury or threat thereof 
(b) PRESIDENTIAL ACTION REGARDING JORDANIAN IMPORTS.— 
In determining the nature and extent of action to be taken under 
chapter 1 of title II of the Trade Act of 1974, the President shall 
determine whether imports from Jordan are a substantial cause 
of the serious injury found by the Commission and, if such deter-
mination is in the negative, may exclude from such action imports 
from Jordan. 
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SEC. 222. TECHNICAL AMENDMENT. 
''°*^' 
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence— 
(1) by striking "and part 1" and inserting ", part 1"; and 
(2) by inserting before the period at the end ", and title 
II of the United States-Jordan Free Trade Area Implementation 
Act". 
TITLE III—TEMPORARY ENTRY 
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SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS. 
Upon the basis of reciprocity secured by the Agreement, an 
alien who is a national of Jordan (and any spouse or child (as 
defined in section 101(b)(1) of the Immigration and Nationality 
Act (8 U.S.C. 1101(b)(1)) of the alien, if accompanying or following 
to join the alien) shall be considered as entitled to enter the United 
States under and in pursuance of the provisions of the Agreement 
as a nonimmigrant described in section 101(a)(15)(E) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(E)), if the 
entry is solely for a purpose described in clause (i) or (ii) of such 
section and the alien is otherwise admissible to the United States 
as such a nonimmigrant. 
TITLE IV—GENERAL PROVISIONS 
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SEC. 401. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES 
note. 
AND STATE LAW. 
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.— 
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115 STAT. 251 
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi-
sion of the Agreement, nor the apphcation of any such provision 
to any person or circumstance, that is inconsistent with any 
law of the United States shall have effect. 
(2) 
CONSTRUCTION.—Nothing 
in 
this 
Act shall 
be 
construed— 
(A) to amend or modify any law of the United States; 
or 
(B) to limit any authority conferred under any law 
of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.— 
(1) LEGAL CHALLENGE.—^No State law, or the application 
thereof, may be declared invalid as to any person or cir-
cumstance on the ground that the provision or application 
is inconsistent with the Agreement, except in an action brought 
by the United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes of this sub-
section, the term "State law" includes— 
(A) any law of a political subdivision of a State; and 
(B) any State law regulating or taxing the business 
of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.—No person other than the United States— 
(1) shall have any cause of action or defense under the 
Agreement; or 
(2) may challenge, in any action brought under any provi-
sion of law, any action or inaction by any department, agency, 
or other instrumentality of the United States, any State, or 
any political subdivision of a State on the ground that such 
action or inaction is inconsistent with the Agreement. 
SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 
19 USC 2112 
There are authorized to be appropriated for each fiscal year 
after fiscal year 2001 to the Department of Commerce not more 
than $100,000 for the payment of the United States share of the 
expenses incurred in dispute settlement proceedings under article 
17 of the Agreement. 
SEC. 403. IMPLEMENTING REGULATIONS. 
19 USC 2112 
After the date of enactment of this Act— 
(1) the President may proclaim such actions; and 
(2) other appropriate officers of the United States may 
issue such regulations, 
as may be necessary to ensure that any provision of this Act, 
or amendment made by this Act, that takes effect on the date 
the Agreement enters into force is appropriately implemented on 
such date, but no such proclamation or regulation may have an 
effective date earlier than the date the Agreement enters into 
force. 
SEC. 404. EFFECTIVE DATES; EFFECT OF TERMINATION. 
19 USC 2112 
(a) EFFECTIVE DATES.—Except as provided in subsection (b), 
the provisions of this Act and the amendments made by this Act 
take effect on the date the Agreement enters into force. 
(b) EXCEPTIONS.—Sections 1 through 3 and this title take effect 
on the date of the enactment of this Act. 
115 STAT. 252 
PUBLIC LAW 107-43—SEPT. 28, 2001 
(c) TERMINATION OF THE AGREEMENT.—On the date on which 
the Agreement ceases to be in force, the provisions of this Act 
(other than this subsection) and the amendments made by this 
Act, shall cease to be effective. 
Approved September 28, 2001. 
LEGISLATIVE HISTORY—H.R. 2603 (S. 643): 
HOUSE REPORTS: No. 107-176, Pt. 1 (Comm. on Ways and Means). 
SENATE REPORTS: No. 107-59 accompanying S. 643 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 147 (2001): 
July 31, considered and passed House. 
Sept. 24, considered and passed Senate.