S 496 ISCommentsClose CommentsPermalink

To provide duty-free treatment for certain goods from designated Reconstruction Opportunity Zones in Afghanistan and Pakistan, and for other purposes.CommentsClose CommentsPermalink

February 26, 2009CommentsClose CommentsPermalink

Ms. CANTWELL (for herself, Mr. HATCH, and Mr. CASEY) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To provide duty-free treatment for certain goods from designated Reconstruction Opportunity Zones in Afghanistan and Pakistan, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Afghanistan and Pakistan Reconstruction Opportunity Zones Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS; PURPOSES.

(a) Definitions- In this Act:CommentsClose CommentsPermalink





(1) AGREEMENT ON TEXTILES AND CLOTHING- The term ‘Agreement on Textiles and Clothing’ means the Agreement on Textiles and Clothing referred to in section 101(d)(4) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).CommentsClose CommentsPermalink





(2) CATEGORY; TEXTILE AND APPAREL CATEGORY NUMBER- The terms ‘category’ and ‘textile and apparel category number’ mean the number assigned under the U.S. Textile and Apparel Category System of the Office of Textiles and Apparel of the Department of Commerce, as listed in the HTS under the applicable heading or subheading (as in effect on September 1, 2007).CommentsClose CommentsPermalink





(3) ENTERED- The term ‘entered’ means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States.CommentsClose CommentsPermalink





(4) ENTITY- The term ‘entity’ means--CommentsClose CommentsPermalink





(A) a natural person, corporation, company, business association, partnership, society, trust, any other nongovernmental entity, organization, or group, whether or not for profit;CommentsClose CommentsPermalink





(B) any governmental entity or instrumentality of a government; andCommentsClose CommentsPermalink





(C) any successor, subunit, or subsidiary of any entity described in subparagraph (A) or (B).CommentsClose CommentsPermalink





(5) HTS- The term ‘HTS’ means the Harmonized Tariff Schedule of the United States.CommentsClose CommentsPermalink





(6) NAFTA- The term ‘NAFTA’ means the North American Free Trade Agreement concluded between the United States, Mexico, and Canada on December 17, 1992.CommentsClose CommentsPermalink





(7) RECONSTRUCTION OPPORTUNITY ZONE- The term ‘Reconstruction Opportunity Zone’ means any area that--CommentsClose CommentsPermalink





(A) encompasses portions of the territory of--CommentsClose CommentsPermalink





(i) Afghanistan; orCommentsClose CommentsPermalink





(ii) 1 or more of the following areas of Pakistan:CommentsClose CommentsPermalink





(I) the Federally Administered Tribal Areas;CommentsClose CommentsPermalink





(II) areas of Pakistan-administered Kashmir that the President determines were harmed by the earthquake of October 8, 2005;CommentsClose CommentsPermalink





(III) areas of Baluchistan that are within 100 miles of Pakistan’s border with Afghanistan; andCommentsClose CommentsPermalink





(IV) the North West Frontier Province;CommentsClose CommentsPermalink





(B) has been designated by the competent authorities in Afghanistan or Pakistan, as the case may be, as an area in which merchandise may be introduced without payment of duty or excise tax; andCommentsClose CommentsPermalink





(C) has been designated by the President as a Reconstruction Opportunity Zone pursuant to section 3(a).CommentsClose CommentsPermalink





(b) Purposes- The purposes of this Act are--CommentsClose CommentsPermalink





(1) to stimulate economic activity and development in Afghanistan and the border region of Pakistan, critical fronts in the struggle against violent extremism;CommentsClose CommentsPermalink





(2) to reflect the strong support that the United States has pledged to Afghanistan and Pakistan for their sustained commitment in the global war on terrorism;CommentsClose CommentsPermalink





(3) to support the 3-pronged United States strategy in Afghanistan and the border region of Pakistan that leverages political, military, and economic tools, with Reconstruction Opportunity Zones as a critical part of the economic component of that strategy; andCommentsClose CommentsPermalink





(4) to offer a vital opportunity to improve livelihoods, promote good governance, and extend and strengthen the Governments of Afghanistan and Pakistan.CommentsClose CommentsPermalink

SEC. 3. DESIGNATION OF RECONSTRUCTION OPPORTUNITY ZONES.

(a) Authority To Designate- The President is authorized to designate an area within Afghanistan or Pakistan described in section 2(a)(7) (A) and (B) as a Reconstruction Opportunity Zone if the President determines that--CommentsClose CommentsPermalink





(1) Afghanistan or Pakistan, as the case may be, meets the eligibility criteria set forth in subsection (b);CommentsClose CommentsPermalink





(2) Afghanistan or Pakistan, as the case may be, meets the eligibility criteria set forth in subsection (c) of section 502 of the Trade Act of 1974 (19 U.S.C. 2462(c)) for designation as a beneficiary developing country under that section and is not ineligible under subsection (b) of such section; andCommentsClose CommentsPermalink





(3) designation of the area as a Reconstruction Opportunity Zone is appropriate taking into account the factors listed in subsection (c).CommentsClose CommentsPermalink





(b) Eligibility Criteria- Afghanistan or Pakistan, as the case may be, meets the eligibility criteria set forth in this subsection if that country--CommentsClose CommentsPermalink





(1) has established, or is making continual progress toward establishing--CommentsClose CommentsPermalink





(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimizes government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets;CommentsClose CommentsPermalink





(B) the rule of law, political pluralism, and the right to due process, a fair trial, and equal protection under the law;CommentsClose CommentsPermalink





(C) economic policies to--CommentsClose CommentsPermalink





(i) reduce poverty;CommentsClose CommentsPermalink





(ii) increase the availability of health care and educational opportunities;CommentsClose CommentsPermalink





(iii) expand physical infrastructure;CommentsClose CommentsPermalink





(iv) promote the development of private enterprise; andCommentsClose CommentsPermalink





(v) encourage the formation of capital markets through microcredit or other programs;CommentsClose CommentsPermalink





(D) a system to combat corruption and bribery, such as ratifying and implementing the United Nations Convention Against Corruption; andCommentsClose CommentsPermalink





(E) protection of internationally recognized worker rights, as defined in section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4));CommentsClose CommentsPermalink





(2) is eliminating or has eliminated barriers to trade and investment, including by--CommentsClose CommentsPermalink





(A) providing national treatment and measures to create an environment conducive to domestic and foreign investment;CommentsClose CommentsPermalink





(B) protecting intellectual property; andCommentsClose CommentsPermalink





(C) resolving bilateral trade and investment disputes;CommentsClose CommentsPermalink





(3) does not engage in activities that undermine United States national security or foreign policy interests;CommentsClose CommentsPermalink





(4) does not engage in gross violations of internationally recognized human rights;CommentsClose CommentsPermalink





(5) does not provide support for acts of international terrorism; andCommentsClose CommentsPermalink





(6) cooperates in international efforts to eliminate human rights violations and terrorist activities.CommentsClose CommentsPermalink





(c) Additional Factors- In determining whether to designate an area in Afghanistan or Pakistan as a Reconstruction Opportunity Zone, the President shall take into account--CommentsClose CommentsPermalink





(1) an expression by the government of the country of its desire to have a particular area designated as a Reconstruction Opportunity Zone under this Act;CommentsClose CommentsPermalink





(2) whether the government of the country has provided the United States with a monitoring and enforcement plan outlining specific steps the country will take to cooperate with the United States to--CommentsClose CommentsPermalink





(A) facilitate legitimate cross-border commerce;CommentsClose CommentsPermalink





(B) ensure that articles for which duty-free treatment is sought pursuant to this Act satisfy the applicable rules of origin described in section 4 (c) and (d) or section 5 (c) and (d), whichever is applicable;CommentsClose CommentsPermalink





(C) prevent unlawful transshipment, as described in section 6(b)(3); andCommentsClose CommentsPermalink





(D) protect internationally recognized worker rights, as defined in section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4));CommentsClose CommentsPermalink





(3) the potential for such designation to create local employment and to promote local and regional economic development;CommentsClose CommentsPermalink





(4) the physical security of the proposed Reconstruction Opportunity Zone;CommentsClose CommentsPermalink





(5) the economic viability of the proposed Reconstruction Opportunity Zone, including--CommentsClose CommentsPermalink





(A) whether there are commitments to finance economic activity proposed for the Reconstruction Opportunity Zone; andCommentsClose CommentsPermalink





(B) whether there is existing or planned infrastructure for power, water, transportation, and communications in the area;CommentsClose CommentsPermalink





(6) whether such designation would be compatible with and contribute to the foreign policy and national security objectives of the United States, taking into account the information provided under subsection (d); andCommentsClose CommentsPermalink





(7) the views of interested persons submitted pursuant to subsection (e).CommentsClose CommentsPermalink





(d) Information Relating to Compatibility With and Contribution to Foreign Policy and National Security Objectives of the United States- In determining whether designation of a Reconstruction Opportunity Zone would be compatible with and contribute to the foreign policy and national security objectives of the United States in accordance with subsection (c)(6), the President shall take into account whether Afghanistan or Pakistan, as the case may be, has provided the United States with a plan outlining specific steps it will take to verify the ownership and nature of the activities of entities to be located in the proposed Reconstruction Opportunity Zone. The specific steps outlined in a country’s plan shall include a mechanism by which a competent authority of the country--CommentsClose CommentsPermalink





(1) collects from each entity operating in, or proposing to operate in, a Reconstruction Opportunity Zone, information including--CommentsClose CommentsPermalink





(A) the name and address of the entity;CommentsClose CommentsPermalink





(B) the name and location of all facilities owned or operated by the entity that are operating in or proposed to be operating in a Reconstruction Opportunity Zone;CommentsClose CommentsPermalink





(C) the name, nationality, date and place of birth, and position title of each person who is an owner, director, or officer of the entity; andCommentsClose CommentsPermalink





(D) the nature of the activities of each entity;CommentsClose CommentsPermalink





(2) updates the information required under paragraph (1) as changes occur; andCommentsClose CommentsPermalink





(3) provides such information promptly to the Secretary of State.CommentsClose CommentsPermalink





(e) Opportunity for Public Comment- Before the President designates an area as a Reconstruction Opportunity Zone pursuant to subsection (a), the President shall afford an opportunity for interested persons to submit their views concerning the designation.CommentsClose CommentsPermalink





(f) Notification to Congress- Before the President designates an area as a Reconstruction Opportunity Zone pursuant to subsection (a), the President shall notify Congress of the President’s intention to make the designation, together with the reasons for making the designation.CommentsClose CommentsPermalink

SEC. 4. DUTY-FREE TREATMENT FOR CERTAIN NONTEXTILE AND NONAPPAREL ARTICLES.

(a) In General- The President is authorized to proclaim duty-free treatment for--CommentsClose CommentsPermalink





(1) any article from a Reconstruction Opportunity Zone that the President has designated as an eligible article under section 503(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)(A));CommentsClose CommentsPermalink





(2) any article from a Reconstruction Opportunity Zone located in Afghanistan that the President has designated as an eligible article under section 503(a)(1)(B) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)(B)); orCommentsClose CommentsPermalink





(3) any article from a Reconstruction Opportunity Zone that is not a textile or apparel article, regardless of whether the article has been designated as an eligible article under section 503(a)(1)(A) or (B) of the Trade Act of 1974 (19 U.S.C. 2463(a)(1)(A) or (B)), if, after receiving the advice of the International Trade Commission pursuant to subsection (b), the President determines that such article is not import-sensitive in the context of imports from a Reconstruction Opportunity Zone.CommentsClose CommentsPermalink





(b) Advice Concerning Certain Eligible Articles- Before proclaiming duty-free treatment for an article pursuant to subsection (a)(3), the President shall publish in the Federal Register and provide the International Trade Commission a list of articles which may be considered for such treatment. The provisions of sections 131 through 134 of the Trade Act of 1974 (19 U.S.C. 2151 through 2154) shall apply to any designation under subsection (a)(3) in the same manner as such sections apply to action taken under section 123 of the Trade Act of 1974 (19 U.S.C. 2133) regarding a proposed trade agreement.CommentsClose CommentsPermalink





(c) General Rules of Origin-CommentsClose CommentsPermalink





(1) IN GENERAL- The duty-free treatment proclaimed with respect to an article described in paragraph (1) or (3) of subsection (a) shall apply to any article subject to such proclamation which is the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones if--CommentsClose CommentsPermalink





(A) that article is imported directly from a Reconstruction Opportunity Zone into the customs territory of the United States; andCommentsClose CommentsPermalink





(B)(i) with respect to an article that is an article of a Reconstruction Opportunity Zone in Pakistan, the sum of--CommentsClose CommentsPermalink





(I) the cost or value of the materials produced in 1 or more Reconstruction Opportunity Zones in Pakistan or Afghanistan,CommentsClose CommentsPermalink





(II) the direct costs of processing operations performed in 1 or more Reconstruction Opportunity Zones in Pakistan or Afghanistan, andCommentsClose CommentsPermalink





(III) the cost or value of materials produced in the United States, determined in accordance with paragraph (2),CommentsClose CommentsPermalink





is not less than 35 percent of the appraised value of the article at the time it is entered into the United States; orCommentsClose CommentsPermalink





(ii) with respect to an article that is an article of a Reconstruction Opportunity Zone in Afghanistan, the sum of--CommentsClose CommentsPermalink





(I) the cost or value of the materials produced in 1 or more Reconstruction Opportunity Zones in Pakistan or Afghanistan,CommentsClose CommentsPermalink





(II) the cost or value of the materials produced in 1 or more countries that are members of the South Asian Association for Regional Cooperation,CommentsClose CommentsPermalink





(III) the direct costs of processing operations performed in 1 or more Reconstruction Opportunity Zones in Pakistan or Afghanistan, andCommentsClose CommentsPermalink





(IV) the cost or value of materials produced in the United States, determined in accordance with paragraph (2),CommentsClose CommentsPermalink





is not less than 35 percent of the appraised value of the article at the time it is entered into the United States.CommentsClose CommentsPermalink





(2) DETERMINATION OF 35 PERCENT FOR ARTICLES FROM RECONSTRUCTION OPPORTUNITY ZONES IN PAKISTAN AND AFGHANISTAN- If the cost or value of materials produced in the customs territory of the United States is included with respect to an article described in paragraph (1)(B), for purposes of determining the 35 percent appraised value requirement under clause (i) or (ii) of paragraph (1)(B), not more than 15 percent of the appraised value of the article at the time the article is entered into the United States may be attributable to the cost or value of such United States materials.CommentsClose CommentsPermalink





(d) Rules of Origin for Certain Articles of Reconstruction Opportunity Zones in Afghanistan-CommentsClose CommentsPermalink





(1) IN GENERAL- The duty-free treatment proclaimed with respect to an article described in paragraph (2) of subsection (a) shall apply to any article subject to such proclamation which is the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones in Afghanistan if--CommentsClose CommentsPermalink





(A) that article is imported directly from a Reconstruction Opportunity Zone in Afghanistan into the customs territory of the United States; andCommentsClose CommentsPermalink





(B) with respect to that article, the sum of--CommentsClose CommentsPermalink





(i) the cost or value of the materials produced in 1 or more Reconstruction Opportunity Zones in Afghanistan,CommentsClose CommentsPermalink





(ii) the cost or value of the materials produced in 1 or more countries that are members of the South Asian Association for Regional Cooperation,CommentsClose CommentsPermalink





(iii) the direct costs of processing operations performed in 1 or more Reconstruction Opportunity Zones in Afghanistan, andCommentsClose CommentsPermalink





(iv) the cost or value of materials produced in the United States, determined in accordance with paragraph (2),CommentsClose CommentsPermalink





is not less than 35 percent of the appraised value of the product at the time it is entered into the United States.CommentsClose CommentsPermalink





(2) DETERMINATION OF 35 PERCENT FOR ARTICLES FROM RECONSTRUCTION OPPORTUNITY ZONES IN PAKISTAN AND AFGHANISTAN- If the cost or value of materials produced in the customs territory of the United States is included with respect to an article described in paragraph (1)(B), for purposes of determining the 35 percent appraised value requirement under paragraph (1)(B), not more than 15 percent of the appraised value of the article at the time the article is entered into the United States may be attributable to the cost or value of such United States materials.CommentsClose CommentsPermalink





(e) Exclusions- An article shall not be treated as the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones, and no material shall be included for purposes of determining the 35 percent appraised value requirement under subsection (c)(1) or (d)(1), by virtue of having merely undergone--CommentsClose CommentsPermalink





(1) simple combining or packaging operations; orCommentsClose CommentsPermalink





(2) mere dilution with water or with another substance that does not materially alter the characteristics of the article or material.CommentsClose CommentsPermalink





(f) Direct Costs of Processing Operations-CommentsClose CommentsPermalink





(1) IN GENERAL- As used in subsections (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the term ‘direct costs of processing operations’ includes, but is not limited to--CommentsClose CommentsPermalink





(A) all actual labor costs involved in the growth, production, manufacture, or assembly of the article, including--CommentsClose CommentsPermalink





(i) fringe benefits;CommentsClose CommentsPermalink





(ii) on-the-job training; andCommentsClose CommentsPermalink





(iii) costs of engineering, supervisory, quality control, and similar personnel; andCommentsClose CommentsPermalink





(B) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the article.CommentsClose CommentsPermalink





(2) EXCLUDED COSTS- As used in subsections (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the term ‘direct costs of processing operations’ does not include costs which are not directly attributable to the article or are not costs of manufacturing the article, such as--CommentsClose CommentsPermalink





(A) profit; andCommentsClose CommentsPermalink





(B) general expenses of doing business which are either not allocable to the article or are not related to the growth, production, manufacture, or assembly of the article, such as administrative salaries, casualty and liability insurance, advertising, and salesmen’s salaries, commissions, or expenses.CommentsClose CommentsPermalink





(g) Regulations- The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this section. The regulations may provide that, in order for an article to be eligible for duty-free treatment under this section, the article--CommentsClose CommentsPermalink





(1) shall be wholly the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones; orCommentsClose CommentsPermalink





(2) shall be a new or different article of commerce which has been grown, produced, or manufactured in 1 or more Reconstruction Opportunity Zones.CommentsClose CommentsPermalink

SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE AND APPAREL ARTICLES.

(a) Duty-Free Treatment- The President is authorized to proclaim duty-free treatment for any textile or apparel article described in subsection (b), if--CommentsClose CommentsPermalink





(1) the article is a covered article described in subsection (b); andCommentsClose CommentsPermalink





(2) the President determines that the country in which the Reconstruction Opportunity Zone is located has satisfied the requirements set forth in section 6.CommentsClose CommentsPermalink





(b) Covered Articles- A covered article described in this subsection is an article in 1 of the following categories:CommentsClose CommentsPermalink





(1) ARTICLES OF RECONSTRUCTION OPPORTUNITY ZONES- An article that is the product of 1 or more Reconstruction Opportunity Zones and falls within the scope of 1 of the following textile and apparel category numbers, as set forth in the HTS (as in effect on September 1, 2007):CommentsClose CommentsPermalink

--------------CommentsClose CommentsPermalink

--------------CommentsClose CommentsPermalink

237  641  751 CommentsClose CommentsPermalink

330  642  752 CommentsClose CommentsPermalink

331  643  758 CommentsClose CommentsPermalink

333  644  759 CommentsClose CommentsPermalink

334  650  831 CommentsClose CommentsPermalink

 335  651 832 CommentsClose CommentsPermalink

 336 653  833 CommentsClose CommentsPermalink

341  654  834 CommentsClose CommentsPermalink

342  665  835 CommentsClose CommentsPermalink

350  669  836 CommentsClose CommentsPermalink

351  733  838 CommentsClose CommentsPermalink

353  734  839 CommentsClose CommentsPermalink

354  735  840 CommentsClose CommentsPermalink

360  736  842 CommentsClose CommentsPermalink

361  738  843 CommentsClose CommentsPermalink

362  739  844 CommentsClose CommentsPermalink

363  740  845 CommentsClose CommentsPermalink

369  741  846 CommentsClose CommentsPermalink

465  742  850 CommentsClose CommentsPermalink

469  743  851 CommentsClose CommentsPermalink

630  744  852 CommentsClose CommentsPermalink

631  745  858 CommentsClose CommentsPermalink

633  746  859 CommentsClose CommentsPermalink

634  747  863 CommentsClose CommentsPermalink

635  748  899 CommentsClose CommentsPermalink

636  750      CommentsClose CommentsPermalink

--------------CommentsClose CommentsPermalink

(2) ARTICLES OF RECONSTRUCTION OPPORTUNITY ZONES IN AFGHANISTAN- The article is the product of 1 or more Reconstruction Opportunity Zones in Afghanistan and falls within the scope of 1 of the following textile and apparel category numbers, as set forth in the HTS (as in effect on September 1, 2007):CommentsClose CommentsPermalink

------------CommentsClose CommentsPermalink

------------CommentsClose CommentsPermalink

201 439 459 CommentsClose CommentsPermalink

414 440 464 CommentsClose CommentsPermalink

431 442 670 CommentsClose CommentsPermalink

433 444 800 CommentsClose CommentsPermalink

434 445 810 CommentsClose CommentsPermalink

435 446 870 CommentsClose CommentsPermalink

436 448 871 CommentsClose CommentsPermalink

438         CommentsClose CommentsPermalink

------------CommentsClose CommentsPermalink

(3) CERTAIN OTHER TEXTILE AND APPAREL ARTICLES- The article is the product of 1 or more Reconstruction Opportunity Zones and falls within the scope of 1 of the following textile and apparel category numbers as set forth in the HTS (as in effect on September 1, 2007) and is covered by the corresponding description for such category:CommentsClose CommentsPermalink





(A) CATEGORY 239- An article in category 239 (relating to cotton and man-made fiber babies’ garments) except for baby socks and baby booties described in subheading 6111.20.6050, 6111.30.5050, or 6111.90.5050 of the HTS.CommentsClose CommentsPermalink





(B) CATEGORY 338- An article in category 338 (relating to men’s and boys’ cotton knit shirts) if the article is a certain knit-to-shape garment that meets the definition included in Statistical Note 6 to Chapter 61 of the HTS, and is provided for in subheading 6110.20.1026, 6110.20.2067 or 6110.90.9067 of the HTS.CommentsClose CommentsPermalink





(C) CATEGORY 339- An article in category 339 (relating to women’s and girls’ cotton knit shirts and blouses) if the article is a knit-to-shape garment that meets the definition included in Statistical Note 6 to Chapter 61 of the HTS, and is provided for in subheading 6110.20.1031, 6110.20.2077, or 6110.90.9071 of the HTS.CommentsClose CommentsPermalink





(D) CATEGORY 359- An article in category 359 (relating to other cotton apparel) except swimwear provided for in subheading 6112.39.0010, 6112.49.0010, 6211.11.8010, 6211.11.8020, 6211.12.8010, or 6211.12.8020 of the HTS.CommentsClose CommentsPermalink





(E) CATEGORY 632- An article in category 632 (relating to man-made fiber hosiery) if the article is panty hose provided for in subheading 6115.21.0020 of the HTS.CommentsClose CommentsPermalink





(F) CATEGORY 638- An article in category 638 (relating to men’s and boys’ man-made fiber knit shirts) if the article is a knit-to-shape garment that meets the definition included in Statistical Note 6 to Chapter 61 of the HTS, and is provided for in subheading 6110.30.2051, 6110.30.3051, or 6110.90.9079 of the HTS.CommentsClose CommentsPermalink





(G) CATEGORY 639- An article in category 639 (relating to women’s and girls’ man-made fiber knit shirts and blouses) if the article is a knit-to-shape garment that meets the definition included in Statistical Note 6 to Chapter 61 of the HTS, and is provided for in subheading 6110.30.2061, 6110.30.3057, or 6110.90.9081 of the HTS.CommentsClose CommentsPermalink





(H) CATEGORY 647- An article in category 647 (relating to men’s and boys’ man-made fiber trousers) if the article is ski/snowboard pants that meets the definition included in Statistical Note 4 to Chapter 62 of the HTS, and is provided for in subheading 6203.43.3510, 6210.40.5031, or 6211.20.1525 of the HTS.CommentsClose CommentsPermalink





(I) CATEGORY 648- An article in category 648 (relating to women’s and girls’ man-made fiber trousers) if the article is ski/snowboard pants that meets the definition included in Statistical Note 4 to Chapter 62 of the HTS, and is provided for in subheading 6204.63.3010, 6210.50.5031, or 6211.20.1555 of the HTS.CommentsClose CommentsPermalink





(J) CATEGORY 659- An article in category 659 (relating to other man-made fiber apparel) except for swimwear provided for in subheading 6112.31.0010, 6112.31.0020, 6112.41.0010, 6112.41.0020, 6112.41.0030, 6112.41.0040, 6211.11.1010, 6211.11.1020, 6211.12.1010, or 6211.12.1020 of the HTS.CommentsClose CommentsPermalink





(K) CATEGORY 666- An article in category 666 (relating to other man-made fiber furnishings) if the article is window shades and window blinds provided for in subheading 6303.12.0010 or 6303.92.2030 of the HTS.CommentsClose CommentsPermalink





(4) CERTAIN OTHER ARTICLES- The article is the product of 1 or more Reconstruction Opportunity Zones and falls within the scope of 1 of the following statistical reporting numbers of the HTS (as in effect on September 1, 2007):CommentsClose CommentsPermalink

---------------------------------------CommentsClose CommentsPermalink

---------------------------------------CommentsClose CommentsPermalink

4202.12.8010 6210.20.3000 6304.99.1000 CommentsClose CommentsPermalink

4202.12.8050 6210.20.7000 6304.99.2500 CommentsClose CommentsPermalink

4202.22.4010 6210.30.3000 6304.99.4000 CommentsClose CommentsPermalink

4202.22.7000 6210.30.7000 6304.99.6030 CommentsClose CommentsPermalink

4202.22.8070 6210.40.3000 6306.22.9010 CommentsClose CommentsPermalink

4202.92.3010 6210.40.7000 6306.29.1100 CommentsClose CommentsPermalink

4202.92.6010 6210.50.3000 6306.29.2100 CommentsClose CommentsPermalink

4202.92.9010 6210.50.7000 6306.40.4100 CommentsClose CommentsPermalink

4202.92.9015 6211.20.0810 6306.40.4900 CommentsClose CommentsPermalink

5601.29.0010 6211.20.0820 6306.91.0000 CommentsClose CommentsPermalink

5702.39.2090 6211.32.0003 6306.99.0000 CommentsClose CommentsPermalink

5702.49.2000 6211.33.0003 6307.10.2030 CommentsClose CommentsPermalink

5702.50.5900 6211.42.0003 6307.20.0000 CommentsClose CommentsPermalink

5702.99.2000 6211.43.0003 6307.90.7200 CommentsClose CommentsPermalink

5703.90.0000 6212.10.3000 6307.90.7500 CommentsClose CommentsPermalink

5705.00.2090 6212.10.7000 6307.90.8500 CommentsClose CommentsPermalink

6108.22.1000 6212.90.0050 6307.90.8950 CommentsClose CommentsPermalink

6111.90.7000 6213.90.0500 6307.90.8985 CommentsClose CommentsPermalink

6113.00.1005 6214.10.1000 6310.90.1000 CommentsClose CommentsPermalink

6113.00.1010 6216.00.0800 6406.99.1580 CommentsClose CommentsPermalink

6113.00.1012 6216.00.1300 6501.00.6000 CommentsClose CommentsPermalink

6115.29.4000 6216.00.1900 6502.00.2000 CommentsClose CommentsPermalink

6115.30.1000 6216.00.2600 6502.00.4000 CommentsClose CommentsPermalink

6115.99.4000 6216.00.3100 6502.00.9060 CommentsClose CommentsPermalink

6116.10.0800 6216.00.3500 6504.00.3000 CommentsClose CommentsPermalink

6116.10.1300 6216.00.4600 6504.00.6000 CommentsClose CommentsPermalink

6116.10.4400 6217.10.1010 6504.00.9045 CommentsClose CommentsPermalink

6116.10.6500 6217.10.8500 6504.00.9075 CommentsClose CommentsPermalink

6116.10.9500 6301.90.0020 6505.10.0000 CommentsClose CommentsPermalink

6116.92.0800 6302.29.0010 6505.90.8015 CommentsClose CommentsPermalink

6116.93.0800 6302.39.0020 6505.90.9050 CommentsClose CommentsPermalink

6116.99.3500 6302.59.3010 6505.90.9076 CommentsClose CommentsPermalink

6117.10.4000 6302.99.1000 9404.90.2000 CommentsClose CommentsPermalink

6117.80.3010 6303.99.0030 9404.90.8523 CommentsClose CommentsPermalink

6117.80.8500 6304.19.3030 9404.90.9523 CommentsClose CommentsPermalink

6210.10.2000 6304.91.0060 9404.90.9570 CommentsClose CommentsPermalink

6210.10.7000                           CommentsClose CommentsPermalink

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(c) Rules of Origin for Certain Covered Articles-CommentsClose CommentsPermalink





(1) GENERAL RULES- Except with respect to an article listed in paragraph (2) of subsection (b), duty-free treatment may be proclaimed for an article listed in subsection (b) only if the article is imported directly into the customs territory of the United States from a Reconstruction Opportunity Zone and--CommentsClose CommentsPermalink





(A) the article is wholly the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones;CommentsClose CommentsPermalink





(B) the article is a yarn, thread, twine, cordage, rope, cable, or braiding, and--CommentsClose CommentsPermalink





(i) the constituent staple fibers are spun in, orCommentsClose CommentsPermalink





(ii) the continuous filament fiber is extruded in,CommentsClose CommentsPermalink





1 or more Reconstruction Opportunity Zones;CommentsClose CommentsPermalink





(C) the article is a fabric, including a fabric classifiable under chapter 59 of the HTS, and the constituent fibers, filaments, or yarns are woven, knitted, needled, tufted, felted, entangled, or transformed by any other fabric-making process in 1 or more Reconstruction Opportunity Zones; orCommentsClose CommentsPermalink





(D) the article is any other textile or apparel article that is cut (or knit-to-shape) and sewn or otherwise assembled in 1 or more Reconstruction Opportunity Zones from its component pieces.CommentsClose CommentsPermalink





(2) SPECIAL RULES-CommentsClose CommentsPermalink





(A) CERTAIN MADE-UP ARTICLES, TEXTILE ARTICLES IN THE PIECE, AND CERTAIN OTHER TEXTILES AND TEXTILE ARTICLES- 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 appropriate, shall determine whether a good that is classifiable under 1 of the following headings or subheadings of the HTS shall be considered to meet the rules of origin of this subsection: 5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.CommentsClose CommentsPermalink





(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 that is wholly formed on seamless knitting machines or by hand-knitting in 1 or more Reconstruction Opportunity Zones shall be considered to meet the rules of origin of this subsection.CommentsClose CommentsPermalink





(C) CERTAIN DYED AND PRINTED TEXTILES AND TEXTILE ARTICLES- Notwithstanding paragraph (1)(D), an article classifiable under subheading 6117.10, 6213.00, 6214.00, 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 an article classifiable under 1 of such subheadings 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 rules of origin of this subsection if the fabric in the article is both dyed and printed in 1 or more Reconstruction Opportunity Zones, 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.CommentsClose CommentsPermalink





(D) FABRICS OF SILK, COTTON, MAN-MADE FIBER, OR VEGETABLE FIBER- Notwithstanding paragraph (1)(C), a fabric classifiable under the HTS as of silk, cotton, man-made fiber, or vegetable fiber shall be considered to meet the rules of origin of this subsection if the fabric is both dyed and printed in 1 or more Reconstruction Opportunity Zones, 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.CommentsClose CommentsPermalink





(d) Rules of Origin for Covered Articles That Are Products of 1 or More Reconstruction Opportunity Zones in Afghanistan-CommentsClose CommentsPermalink





(1) GENERAL RULES- Duty-free treatment may be proclaimed for an article listed in paragraph (2) of subsection (b) only if the article is imported directly into the customs territory of the United States from a Reconstruction Opportunity Zone in Afghanistan and--CommentsClose CommentsPermalink





(A) the article is wholly the growth, product, or manufacture of 1 or more Reconstruction Opportunity Zones in Afghanistan,CommentsClose CommentsPermalink





(B) the article is a yarn, thread, twine, cordage, rope, cable, or braiding, and--CommentsClose CommentsPermalink





(i) the constituent staple fibers are spun in, orCommentsClose CommentsPermalink





(ii) the continuous filament fiber is extruded in,CommentsClose CommentsPermalink





1 or more Reconstruction Opportunity Zones in Afghanistan;CommentsClose CommentsPermalink





(C) the article is a fabric, including a fabric classifiable under chapter 59 of the HTS, and the constituent fibers, filaments, or yarns are woven, knitted, needled, tufted, felted, entangled, or transformed by any other fabric-making process in 1 or more Reconstruction Opportunity Zones in Afghanistan; orCommentsClose CommentsPermalink





(D) the article is any other textile or apparel article that is cut (or knit-to-shape) and sewn or otherwise assembled in 1 or more Reconstruction Opportunity Zones in Afghanistan from its component pieces.CommentsClose CommentsPermalink





(2) SPECIAL RULES-CommentsClose CommentsPermalink





(A) CERTAIN MADE-UP ARTICLES, TEXTILE ARTICLES IN THE PIECE, AND CERTAIN OTHER TEXTILES AND TEXTILE ARTICLES- 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 appropriate, shall determine whether a good that is classifiable under 1 of the following headings or subheadings of the HTS shall be considered to meet the rules of origin of this subsection: 5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.CommentsClose CommentsPermalink





(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 that is wholly formed on seamless knitting machines or by hand-knitting in 1 or more Reconstruction Opportunity Zones in Afghanistan shall be considered to meet the rules of origin of this subsection.CommentsClose CommentsPermalink





(C) CERTAIN DYED AND PRINTED TEXTILES AND TEXTILE ARTICLES- Notwithstanding paragraph (1)(D), an article classifiable under subheading 6117.10, 6213.00, 6214.00, 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 an article classifiable under 1 of such subheadings 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 rules of origin of this subsection if the fabric in the article is both dyed and printed in 1 or more Reconstruction Opportunity Zones in Afghanistan, 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.CommentsClose CommentsPermalink





(D) FABRICS OF SILK, COTTON, MAN-MADE FIBER OR VEGETABLE FIBER- Notwithstanding paragraph (1)(C), a fabric classifiable under the HTS as of silk, cotton, man-made fiber, or vegetable fiber shall be considered to meet the rules of origin of this subsection if the fabric is both dyed and printed in 1 or more Reconstruction Opportunity Zones in Afghanistan, 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.CommentsClose CommentsPermalink





(e) Regulations- The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this section.CommentsClose CommentsPermalink

SEC. 6. PROTECTIONS AGAINST UNLAWFUL TRANSSHIPMENT.

(a) Duty-Free Treatment Conditioned on Enforcement Measures-CommentsClose CommentsPermalink





(1) IN GENERAL- The duty-free treatment described in section 5 shall not be provided to covered articles that are imported from a Reconstruction Opportunity Zone in a country unless the President determines that country meets the following criteria:CommentsClose CommentsPermalink





(A) The country has adopted effective domestic law and enforcement procedures applicable to covered articles to prevent unlawful transshipment of the articles and the use of false documents relating to the importation of the articles into the United States.CommentsClose CommentsPermalink





(B) The country has enacted legislation or promulgated regulations that would permit U.S. Customs and Border Protection verification teams to have the access necessary to investigate thoroughly allegations of unlawful transshipment through such country.CommentsClose CommentsPermalink





(C) The country agrees to provide U.S. Customs and Border Protection with a monthly report on shipments of covered articles from each facility engaged in the production of those articles in a Reconstruction Opportunity Zone in that country.CommentsClose CommentsPermalink





(D) The country will cooperate fully with the United States to address and take action necessary to prevent circumvention, as described in article 5 of the Agreement on Textiles and Clothing.CommentsClose CommentsPermalink





(E) The country agrees to require each entity engaged in the production or manufacture of a covered article in a Reconstruction Opportunity Zone in that country to register with the competent government authority, to provide that authority with the following information, and to update that information as changes occur:CommentsClose CommentsPermalink





(i) The name and address of the entity, including the location of all textile or apparel facilities owned or operated by that entity in Afghanistan or Pakistan.CommentsClose CommentsPermalink





(ii) The telephone number, facsimile number, and electronic mail address of the entity.CommentsClose CommentsPermalink





(iii) The names and nationalities of the owners, directors, and corporate officers, and their positions within the entity.CommentsClose CommentsPermalink





(iv) The number of employees the entity employs and their occupations.CommentsClose CommentsPermalink





(v) A general description of the covered articles the entity produces and the entity’s production capacity.CommentsClose CommentsPermalink





(vi) The number and type of machines the entity uses to produce textile or apparel articles at each facility.CommentsClose CommentsPermalink





(vii) The approximate number of hours the machines operate per week.CommentsClose CommentsPermalink





(viii) The identity of any supplier to the entity of textile or apparel goods, or fabrics, yarns, or fibers used in the production of those goods.CommentsClose CommentsPermalink





(ix) The name of, and contact information for, each of the entity’s customers in the United States.CommentsClose CommentsPermalink





(F) The country agrees to provide to U.S. Customs and Border Protection on a timely basis all of the information received by the competent government authority in accordance with subparagraph (E) and to provide U.S. Customs and Border Protection with an annual update of that information.CommentsClose CommentsPermalink





(G) The country agrees to require that all producers and exporters of covered articles in a Reconstruction Opportunity Zone in that country maintain complete records of the production and the export of covered articles, including materials used in the production, for at least 5 years after the production or export (as the case may be).CommentsClose CommentsPermalink





(H) The country agrees to provide, on a timely basis, at the request of U.S. Customs and Border Protection, documentation establishing the eligibility of covered articles for duty-free treatment under section 5.CommentsClose CommentsPermalink





(2) DOCUMENTATION ESTABLISHING ELIGIBILITY OF ARTICLES FOR DUTY-FREE TREATMENT- For purposes of paragraph (1)(H), documentation establishing the eligibility of a covered article for duty-free treatment under section 5 includes documentation such as production records, information relating to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production.CommentsClose CommentsPermalink





(b) Customs Procedures and Enforcement-CommentsClose CommentsPermalink





(1) IN GENERAL-CommentsClose CommentsPermalink





(A) REGULATIONS- The Secretary of the Treasury, after consultation with the United States Trade Representative, shall promulgate regulations setting forth customs procedures similar in all material respects to the requirements of article 502(1) of the NAFTA as implemented pursuant to United States law, which shall apply to any importer that claims duty-free treatment for an article under section 5.CommentsClose CommentsPermalink





(B) DETERMINATION- In order for articles produced in a Reconstruction Opportunity Zone to qualify for the duty-free treatment under section 5, there shall be in effect a determination by the President that Afghanistan or Pakistan, as the case may be--CommentsClose CommentsPermalink





(i) has implemented and follows, orCommentsClose CommentsPermalink





(ii) is making substantial progress toward implementing and following,CommentsClose CommentsPermalink





procedures and requirements similar in all material respects to the relevant procedures and requirements under chapter 5 of the NAFTA.CommentsClose CommentsPermalink





(2) PENALTIES- If the President determines, based on sufficient evidence, that an entity has engaged in unlawful transshipment described in paragraph (3), the President shall deny for a period of 5 years beginning on the date of the determination all benefits under section 5 to the entity, any successor of the entity, and any other entity owned or operated by the principals of the entity.CommentsClose CommentsPermalink





(3) UNLAWFUL TRANSSHIPMENT DESCRIBED- For purposes of this section, unlawful transshipment occurs when duty-free treatment for a covered article has been claimed on the basis of material false information concerning the country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of the preceding sentence, false information is material if disclosure of the true information would mean or would have meant that the article is or was ineligible for duty-free treatment under section 5.CommentsClose CommentsPermalink

SEC. 7. LIMITATIONS ON PROVIDING DUTY-FREE TREATMENT.

(a) In General-CommentsClose CommentsPermalink





(1) PROCLAMATION- Except as provided in paragraph (2), and subject to subsection (b) and the conditions described in sections 3 through 6, the President shall exercise the President’s authority under this Act, and the President shall proclaim any duty-free treatment pursuant to that authority.CommentsClose CommentsPermalink





(2) WAIVER- The President may waive the application of duty-free treatment under this Act if the President determines that providing such treatment is inconsistent with the national interests of the United States. In making such determination, the President shall consider--CommentsClose CommentsPermalink





(A) obligations of the United States under international agreements;CommentsClose CommentsPermalink





(B) the national economic interests of the United States; andCommentsClose CommentsPermalink





(C) the foreign policy interests of the United States, including the economic development of Afghanistan and the border region of Pakistan.CommentsClose CommentsPermalink





(b) Withdrawal, Suspension, or Limitation of Duty-Free Treatment-CommentsClose CommentsPermalink





(1) IN GENERAL- The President may withdraw, suspend, or limit the application of the duty-free treatment proclaimed under this Act. In taking any action to withdraw, suspend, or limit duty-free treatment, the President shall consider the factors set forth in section 3 (b) and (c) of this Act, and section 502 (b) and (c) of the Trade Act of 1974 (19 U.S.C. 2462 (b) and (c)).CommentsClose CommentsPermalink





(2) NOTICE TO CONGRESS- The President shall advise Congress--CommentsClose CommentsPermalink





(A) of any action the President takes to withdraw, suspend, or limit the application of duty-free treatment with respect to Reconstruction Opportunity Zones in Afghanistan or Pakistan; andCommentsClose CommentsPermalink





(B) if either Afghanistan or Pakistan fails to adequately take the actions described in section 3 (b) and (c) of this Act or section 502 (b) and (c) of the Trade Act of 1974.CommentsClose CommentsPermalink

SEC. 8. TERMINATION OF BENEFITS.

Duty-free treatment provided under this Act shall remain in effect through September 30, 2023.CommentsClose CommentsPermalink