[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Reported in Senate (RS)]






                                                       Calendar No. 295
107th CONGRESS
  1st Session
                                H. R. 3009

                          [Report No. 107-126]

 To extend the Andean Trade Preference Act, to grant additional trade 
            benefits under that Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2001

     Received; read twice and referred to the Committee on Finance

                           December 14, 2001

               Reported by Mr. Baucus, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
 To extend the Andean Trade Preference Act, to grant additional trade 
            benefits under that Act, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Andean Trade Promotion and 
Drug Eradication Act''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) The Andean Trade Preference Act has been a key 
        element in the United States counternarcotics strategy in the 
        Andean region, promoting export diversification and broad-based 
        economic development that provides sustainable economic 
        alternatives to drug-crop production, strengthening the 
        legitimate economies of Andean countries and creating viable 
        alternatives to illicit trade in coca.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) The continuing instability in the Andean 
        region poses a threat to the security interests of the United 
        States and the world. This problem has been partially addressed 
        through foreign aid, such as Plan Colombia, enacted by Congress 
        in 2000. However, foreign aid alone is not sufficient. 
        Enhancement of legitimate trade with the United States provides 
        an alternative means for reviving and stabilizing the economies 
        in the Andean region.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Renewal and enhancement of the Andean Trade 
        Preference Act will bolster the confidence of domestic private 
        enterprise and foreign investors in the economic prospects of 
        the region, ensuring that legitimate private enterprise can be 
        the engine of economic development and political stability in 
        the region.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (8) Temporarily enhancing trade benefits for 
        Andean 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.</DELETED>

<DELETED>SEC. 3. ARTICLES ELIGIBLE FOR PREFERENTIAL 
              TREATMENT.</DELETED>

<DELETED>    (a) Eligibility of Certain Articles.--Section 204 of the 
Andean Trade Preference Act (19 U.S.C. 3203) is amended--</DELETED>
        <DELETED>    (1) by striking subsection (c) and redesignating 
        subsections (d) through (g) as subsections (c) through (f), 
        respectively; and</DELETED>
        <DELETED>    (2) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) Exceptions and Special Rules.--</DELETED>
        <DELETED>    ``(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 section, if the President determines that such article 
        is not import-sensitive in the context of imports from ATPDEA 
        beneficiary countries:</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Petroleum, or any product derived 
                from petroleum, provided for in headings 2709 and 2710 
                of the HTS.</DELETED>
                <DELETED>    ``(C) Watches and watch parts (including 
                cases, bracelets and straps), of whatever type 
                including, 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.</DELETED>
                <DELETED>    ``(D) Handbags, luggage, flat goods, work 
                gloves, and leather wearing apparel that were not 
                designated on August 5, 1983, as eligible articles for 
                purposes of the generalized system of preferences under 
                title V of the Trade Act of 1974.</DELETED>
        <DELETED>    ``(2) Exclusions.--Subject to paragraph (3), duty-
        free treatment under this title may not be extended to--
        </DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) rum and tafia classified in 
                subheading 2208.40 of the HTS; or</DELETED>
                <DELETED>    ``(C) sugars, syrups, and sugar-containing 
                products subject to over-quota duty rates under 
                applicable tariff-rate quotas.</DELETED>
        <DELETED>    ``(3) Apparel articles.--</DELETED>
                <DELETED>    ``(A) In general.--Apparel articles that 
                are imported directly into the customs territory of the 
                United States from an ATPDEA beneficiary 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).</DELETED>
                <DELETED>    ``(B) Covered articles.--The apparel 
                articles referred to in subparagraph (A) are the 
                following:</DELETED>
                        <DELETED>    ``(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 otherwise assembled in 1 or more ATPDEA 
                        beneficiary countries, or the United States, or 
                        both, exclusively from any one or any 
                        combination of the following:</DELETED>
                                <DELETED>    ``(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).</DELETED>
                                <DELETED>    ``(II) Fabrics or fabric 
                                components formed or components knit-
                                to-shape, in 1 or more ATPDEA 
                                beneficiary countries, from yarns 
                                formed in 1 or more ATPDEA beneficiary 
                                countries, if such fabrics (including 
                                fabrics not formed from yarns, if such 
                                fabrics are classifiable under heading 
                                5602 or 5603 of the HTS and are formed 
                                in 1 or more ATPDEA beneficiary 
                                countries) or components are in chief 
                                weight of llama or alpaca.</DELETED>
                                <DELETED>    ``(III) Fabrics or yarn 
                                that is not formed in the United States 
                                or in one or more ATPDEA beneficiary 
                                countries, to the extent that apparel 
                                articles of such fabrics or yarn would 
                                be eligible for preferential treatment, 
                                without regard to the source of the 
                                fabrics or yarn, under Annex 401 of the 
                                NAFTA.</DELETED>
                        <DELETED>    ``(ii) Additional fabrics.--At the 
                        request of any interested party, the President 
                        is authorized to proclaim additional fabrics 
                        and yarns as eligible for preferential 
                        treatment under clause (i)(III) if--</DELETED>
                                <DELETED>    ``(I) the President 
                                determines that such fabrics or yarns 
                                cannot be supplied by the domestic 
                                industry in commercial quantities in a 
                                timely manner;</DELETED>
                                <DELETED>    ``(II) the President has 
                                obtained advice regarding the proposed 
                                action from the appropriate advisory 
                                committee established under section 135 
                                of the Trade Act of 1974 (19 U.S.C. 
                                2155) and the United States 
                                International Trade 
                                Commission;</DELETED>
                                <DELETED>    ``(III) within 60 days 
                                after the request, the President has 
                                submitted a report 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 proposed to be proclaimed 
                                and the reasons for such action, and 
                                the advice obtained under subclause 
                                (II);</DELETED>
                                <DELETED>    ``(IV) a period of 60 
                                calendar days, beginning with the first 
                                day on which the President has met the 
                                requirements of subclause (III), has 
                                expired; and</DELETED>
                                <DELETED>    ``(V) the President has 
                                consulted with such committees 
                                regarding the proposed action during 
                                the period referred to in subclause 
                                (III).</DELETED>
                        <DELETED>    ``(iii) Apparel articles assembled 
                        in 1 or more atpdea beneficiary countries from 
                        regional fabrics or regional components.--(I) 
                        Subject to the limitation set forth in 
                        subclause (II), apparel articles sewn or 
                        otherwise assembled in 1 or more ATPDEA 
                        beneficiary countries from fabrics or from 
                        fabric components formed or from components 
                        knit-to-shape, in 1 or more ATPDEA beneficiary 
                        countries, 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 1 or more ATPDEA beneficiary countries), 
                        whether or not the apparel articles are also 
                        made from any of the fabrics, fabric components 
                        formed, or components knit-to-shape described 
                        in clause (i).</DELETED>
                        <DELETED>    ``(II) The preferential treatment 
                        referred to in subclause (I) shall be extended 
                        in the 1-year period beginning December 1, 
                        2001, and in each of the 5 succeeding 1-year 
                        periods, to imports of apparel articles in an 
                        amount not to exceed the applicable percentage 
                        of the aggregate square meter equivalents of 
                        all apparel articles imported into the United 
                        States in the preceding 12-month period for 
                        which data are available.</DELETED>
                        <DELETED>    ``(III) For purposes of subclause 
                        (II), the term `applicable percentage' means 3 
                        percent for the 1-year period beginning 
                        December 1, 2001, increased in each of the 5 
                        succeeding 1-year periods by equal increments, 
                        so that for the period beginning December 1, 
                        2005, the applicable percentage does not exceed 
                        6 percent.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(v) Special rules.--</DELETED>
                                <DELETED>    ``(I) Exception for 
                                findings and trimmings.--An article 
                                otherwise eligible for preferential 
                                treatment under this paragraph shall 
                                not be ineligible 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 assembled 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 labels, and other 
                                similar products.</DELETED>
                                <DELETED>    ``(II) Certain 
                                interlining.--(aa) An article otherwise 
                                eligible for preferential treatment 
                                under this paragraph shall not be 
                                ineligible for such treatment because 
                                the article contains certain 
                                interlinings of foreign origin, if the 
                                value of such interlinings (and any 
                                findings and trimmings) does not exceed 
                                25 percent of the cost of the 
                                components of the assembled 
                                article.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(cc) The treatment 
                                described in this subclause shall 
                                terminate if the President makes a 
                                determination that United States 
                                manufacturers are producing such 
                                interlinings in the United States in 
                                commercial quantities.</DELETED>
                                <DELETED>    ``(III) De minimis rule.--
                                An article that would otherwise be 
                                ineligible for preferential treatment 
                                under this subparagraph because the 
                                article contains fibers or yarns not 
                                wholly formed in the United States or 
                                in one or more ATPDEA beneficiary 
                                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.</DELETED>
                <DELETED>    ``(C) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (B)(iv), the 
                President shall consult with representatives of the 
                ATPDEA beneficiary countries concerned for the purpose 
                of identifying particular textile and apparel goods 
                that are mutually agreed upon as being handloomed, 
                handmade, or folklore goods of a kind described in 
                section 2.3(a), (b), or (c) of the Annex or Appendix 
                3.1.B.11 of the Annex.</DELETED>
                <DELETED>    ``(D) Penalties for transshipment.--
                </DELETED>
                        <DELETED>    ``(i) Penalties for exporters.--If 
                        the President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to apparel articles 
                        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.</DELETED>
                        <DELETED>    ``(ii) Penalties for countries.--
                        Whenever the President finds, based on 
                        sufficient evidence, that transshipment has 
                        occurred, the President shall request that the 
                        ATPDEA beneficiary country or countries through 
                        whose territory the transshipment has occurred 
                        take all necessary and appropriate actions to 
                        prevent such transshipment. If the President 
                        determines that a country is not taking such 
                        actions, the President shall reduce the 
                        quantities of apparel articles that may be 
                        imported into the United States from such 
                        country by the quantity of the transshipped 
                        articles multiplied by 3, to the extent 
                        consistent with the obligations of the United 
                        States under the WTO.</DELETED>
                        <DELETED>    ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment under subparagraph (A) has been 
                        claimed for an apparel article 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 this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph 
                        (A).</DELETED>
                <DELETED>    ``(E) Bilateral emergency actions.--
                </DELETED>
                        <DELETED>    ``(i) In general.--The President 
                        may take bilateral emergency tariff actions of 
                        a kind described in section 4 of the Annex with 
                        respect to any apparel article imported from an 
                        ATPDEA beneficiary country if the application 
                        of tariff treatment under subparagraph (A) to 
                        such article results in conditions that would 
                        be cause for the taking of such actions under 
                        such section 4 with respect to a like article 
                        described in the same 8-digit subheading of the 
                        HTS that is imported from Mexico.</DELETED>
                        <DELETED>    ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--</DELETED>
                                <DELETED>    ``(I) the requirements of 
                                paragraph (5) of section 4 of the Annex 
                                (relating to providing compensation) 
                                shall not apply;</DELETED>
                                <DELETED>    ``(II) the term 
                                `transition period' in section 4 of the 
                                Annex shall mean the period ending 
                                December 31, 2006; and</DELETED>
                                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Customs procedures.--</DELETED>
                <DELETED>    ``(A) In general.--</DELETED>
                        <DELETED>    ``(i) Regulations.--Any importer 
                        that claims preferential treatment under 
                        paragraph (1) or (3) shall comply with customs 
                        procedures similar in all material respects to 
                        the requirements of Article 502(1) of the NAFTA 
                        as implemented pursuant to United States law, 
                        in accordance with regulations promulgated by 
                        the Secretary of the Treasury.</DELETED>
                        <DELETED>    ``(ii) Determination.--</DELETED>
                                <DELETED>    ``(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 subclause (II)--</DELETED>
                                        <DELETED>    ``(aa) has 
                                        implemented and follows; 
                                        or</DELETED>
                                        <DELETED>    ``(bb) is making 
                                        substantial progress toward 
                                        implementing and 
                                        following,</DELETED>
                                <DELETED>procedures and requirements 
                                similar in all material respects to the 
                                relevant procedures and requirements 
                                under chapter 5 of the NAFTA.</DELETED>
                                <DELETED>    ``(II) Country 
                                described.--A country is described in 
                                this subclause if it is an ATPDEA 
                                beneficiary country--</DELETED>
                                        <DELETED>    ``(aa) from which 
                                        the article is exported; 
                                        or</DELETED>
                                        <DELETED>    ``(bb) in which 
                                        materials used in the 
                                        production of the article 
                                        originate or in which the 
                                        article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment under 
                                        paragraph (1) or (3).</DELETED>
                <DELETED>    ``(B) Certificate of origin.--The 
                Certificate of Origin that otherwise would be required 
                pursuant to the provisions of subparagraph (A) shall 
                not be required in the case of an article imported 
                under paragraph (1) or (3) if such Certificate of 
                Origin would not be required under Article 503 of the 
                NAFTA (as implemented pursuant to United States law), 
                if the article were imported from Mexico.</DELETED>
        <DELETED>    ``(5) Definitions.--In this subsection--</DELETED>
                <DELETED>    ``(A) Annex.--The term `the Annex' means 
                Annex 300-B of the NAFTA.</DELETED>
                <DELETED>    ``(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 designates as an 
                ATPDEA beneficiary country, taking into account the 
                criteria contained in subsections (c) and (d) of 
                section 203 and other appropriate criteria, including 
                the following:</DELETED>
                        <DELETED>    ``(i) Whether the beneficiary 
                        country has demonstrated a commitment to--
                        </DELETED>
                                <DELETED>    ``(I) undertake its 
                                obligations under the WTO, including 
                                those agreements listed in section 
                                101(d) of the Uruguay Round Agreements 
                                Act, on or ahead of schedule; 
                                and</DELETED>
                                <DELETED>    ``(II) participate in 
                                negotiations toward the completion of 
                                the FTAA or another free trade 
                                agreement.</DELETED>
                        <DELETED>    ``(ii) The extent to which the 
                        country provides protection of intellectual 
                        property rights consistent with or greater than 
                        the protection afforded under the Agreement on 
                        Trade-Related Aspects of Intellectual Property 
                        Rights described in section 101(d)(15) of the 
                        Uruguay Round Agreements Act.</DELETED>
                        <DELETED>    ``(iii) The extent to which the 
                        country provides internationally recognized 
                        worker rights, including--</DELETED>
                                <DELETED>    ``(I) the right of 
                                association;</DELETED>
                                <DELETED>    ``(II) the right to 
                                organize and bargain 
                                collectively;</DELETED>
                                <DELETED>    ``(III) a prohibition on 
                                the use of any form of forced or 
                                compulsory labor;</DELETED>
                                <DELETED>    ``(IV) a minimum age for 
                                the employment of children; 
                                and</DELETED>
                                <DELETED>    ``(V) acceptable 
                                conditions of work with respect to 
                                minimum wages, hours of work, and 
                                occupational safety and 
                                health;</DELETED>
                        <DELETED>    ``(iv) Whether the country has 
                        implemented its commitments to eliminate the 
                        worst forms of child labor, as defined in 
                        section 507(6) of the Trade Act of 
                        1974.</DELETED>
                        <DELETED>    ``(v) The extent to which the 
                        country has met the counternarcotics 
                        certification criteria set forth in section 490 
                        of the Foreign Assistance Act of 1961 (22 
                        U.S.C. 2291j) for eligibility for United States 
                        assistance.</DELETED>
                        <DELETED>    ``(vi) The extent to which the 
                        country has taken steps to become a party to 
                        and implements the Inter-American Convention 
                        Against Corruption.</DELETED>
                        <DELETED>    ``(vii) The extent to which the 
                        country--</DELETED>
                                <DELETED>    ``(I) applies transparent, 
                                nondiscriminatory, and competitive 
                                procedures in government procurement 
                                equivalent to those contained in the 
                                Agreement on Government Procurement 
                                described in section 101(d)(17) of the 
                                Uruguay Round Agreements Act; 
                                and</DELETED>
                                <DELETED>    ``(II) contributes to 
                                efforts in international fora to 
                                develop and implement international 
                                rules in transparency in government 
                                procurement.</DELETED>
                <DELETED>    ``(C) NAFTA.--The term `NAFTA' means the 
                North American Free Trade Agreement entered into 
                between the United States, Mexico, and Canada on 
                December 17, 1992.</DELETED>
                <DELETED>    ``(D) WTO.--The term `WTO' has the meaning 
                given that term in section 2 of the Uruguay Round 
                Agreements Act (19 U.S.C. 3501).</DELETED>
                <DELETED>    ``(E) ATPDEA.--The term `ATPDEA' means the 
                Andean Trade Promotion and Drug Eradication 
                Act.''.</DELETED>
<DELETED>    (b) Determination Regarding Retention of Designation.--
Section 203(e)(1) of the Andean Trade Preference Act (19 U.S.C. 
3202(e)(1)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraphs (A) and (B) as 
        clauses (i) and (ii), respectively;</DELETED>
        <DELETED>    (2) by inserting ``(A)'' after ``(1)''; 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(B) The President may, after the requirements of 
paragraph (2) have been met--</DELETED>
        <DELETED>    ``(i) withdraw or suspend the designation of any 
        country as an ATPDEA beneficiary country, or</DELETED>
        <DELETED>    ``(ii) withdraw, suspend, or limit the application 
        of preferential treatment under section 204(b)(1) or (3) to any 
        article of any country,</DELETED>
<DELETED>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).''.</DELETED>
<DELETED>    (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''.</DELETED>
<DELETED>    (2) Section 204(a) of the Andean Trade Preference Act (19 
U.S.C. 3203(a)) is amended--</DELETED>
        <DELETED>    (A) in paragraph (1), by inserting ``(or otherwise 
        provided for)'' after ``eligibility''; and</DELETED>
        <DELETED>    (B) in paragraph (2), by striking ``subsection 
        (a)'' and inserting ``paragraph (1)''.</DELETED>

<DELETED>SEC. 4. TERMINATION OF PREFERENTIAL TREATMENT.</DELETED>

<DELETED>    Section 208 of the Andean Trade Preference Act (19 U.S.C. 
3206) is amended to read as follows:</DELETED>

<DELETED>``SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.</DELETED>

<DELETED>    ``No duty-free treatment or other preferential treatment 
extended to beneficiary countries under this title shall remain in 
effect after December 31, 2006.''.</DELETED>

<DELETED>SEC. 5. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC 
              RECOVERY ACT.</DELETED>

<DELETED>    Section 213(b)(2)(A) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(b)(2)(A)) is amended as follows:</DELETED>
        <DELETED>    (1) Clause (i) is amended by striking the matter 
        preceding subclause (I) and inserting the following:</DELETED>
                        <DELETED>    ``(i) Apparel articles assembled 
                        in one or more cbtpa beneficiary countries.--
                        Apparel articles sewn or otherwise 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, 
                        (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--
                        ''.</DELETED>
        <DELETED>    (2) Clause (ii) is amended to read as 
        follows:</DELETED>
                        <DELETED>    ``(ii) Other apparel articles 
                        assembled in one or more cbtpa beneficiary 
                        countries.--Apparel articles sewn or otherwise 
                        assembled in one or more CBTPA beneficiary 
                        countries with thread formed in the United 
                        States from fabrics wholly formed in the United 
                        States and cut in one or more CBTPA beneficiary 
                        countries from yarns wholly formed in the 
                        United States, or from components knit-to-shape 
                        in the United States from yarns wholly formed 
                        in the United States, or both (including 
                        fabrics not formed from yarns, if such fabrics 
                        are classifiable under heading 5602 or 5603 of 
                        the HTS and are wholly formed in the United 
                        States).''.</DELETED>
        <DELETED>    (3) Clause (iii)(II) is amended to read as 
        follows:</DELETED>
                        <DELETED>    ``(II) The amount referred to in 
                        subclause (I) is as follows:</DELETED>
                                <DELETED>    ``(aa) 290,000,000 square 
                                meter equivalents during the 1-year 
                                period beginning on October 1, 
                                2001.</DELETED>
                                <DELETED>    ``(bb) 500,000,000 square 
                                meter equivalents during the 1-year 
                                period beginning on October 1, 
                                2002.</DELETED>
                                <DELETED>    ``(cc) 850,000,000 square 
                                meter equivalents during the 1-year 
                                period beginning on October 1, 
                                2003.</DELETED>
                                <DELETED>    ``(dd) 970,000,000 square 
                                meter equivalents in each succeeding 1-
                                year period through September 30, 
                                2008.''.</DELETED>
        <DELETED>    (4) Clause (iii)(IV) is amended to read as 
        follows:</DELETED>
                        <DELETED>    ``(IV) The amount referred to in 
                        subclause (III) is as follows:</DELETED>
                                <DELETED>    ``(aa) 4,872,000 dozen 
                                during the 1-year period beginning on 
                                October 1, 2001.</DELETED>
                                <DELETED>    ``(bb) 9,000,000 dozen 
                                during the 1-year period beginning on 
                                October 1, 2002.</DELETED>
                                <DELETED>    ``(cc) 10,000,000 dozen 
                                during the 1-year period beginning on 
                                October 1, 2003.</DELETED>
                                <DELETED>    ``(dd) 12,000,000 dozen in 
                                each succeeding 1-year period through 
                                September 30, 2008.''.</DELETED>
        <DELETED>    (5) Section 213(b)(2)(A) of such Act is further 
        amended by adding at the end the following new 
        clause:</DELETED>
                        <DELETED>    ``(ix) Apparel articles assembled 
                        in one or more cbtpa beneficiary countries from 
                        united states and cbtpa beneficiary country 
                        components.--Apparel articles sewn or otherwise 
                        assembled in one or more CBTPA beneficiary 
                        countries with thread formed in the United 
                        States from components cut in the United States 
                        and in one or more CBTPA beneficiary countries 
                        from fabric wholly formed in the United States 
                        from yarns wholly formed in the United States, 
                        or from components knit-to-shape in the United 
                        States and one or more CBTPA beneficiary 
                        countries from yarns wholly formed in the 
                        United States, or both (including fabrics not 
                        formed from yarns, if such fabrics are 
                        classifiable under heading 5602 or 5603 of the 
                        HTS).''.</DELETED>

<DELETED>SEC. 6. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND 
              OPPORTUNITY ACT.</DELETED>

<DELETED>    Section 112(b) of the African Growth and Opportunity Act 
(19 U.S.C. 3721(b)) is amended as follows:</DELETED>
        <DELETED>    (1) Paragraph (1) is amended by amending the 
        matter preceding subparagraph (A) to read as follows:</DELETED>
        <DELETED>    ``(1) Apparel articles assembled in one or more 
        beneficiary sub-saharan african countries.--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--''.</DELETED>
        <DELETED>    (2) Paragraph (2) is amended to read as 
        follows:</DELETED>
        <DELETED>    ``(2) Other apparel articles assembled in one or 
        more beneficiary sub-saharan african countries.--Apparel 
        articles sewn or otherwise assembled in one or more beneficiary 
        sub-Saharan African 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).''.</DELETED>
        <DELETED>    (3) Paragraph (3) is amended--</DELETED>
                <DELETED>    (A) by amending the matter preceding 
                subparagraph (A) to read as follows:</DELETED>
        <DELETED>    ``(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 originating either in the United States or one or 
        more beneficiary sub-Saharan African countries (including 
        fabrics not formed from yarns, if such fabrics are classified 
        under heading 5602 or 5603 of the HTS and are wholly formed in 
        one or more 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 either in the United States or one or 
        more beneficiary sub-Saharan African countries, subject to the 
        following:'';</DELETED>
                <DELETED>    (B) in subparagraph (A)(ii)--</DELETED>
                        <DELETED>    (i) by striking ``1.5'' and 
                        inserting ``3''; and</DELETED>
                        <DELETED>    (ii) by striking ``3.5'' and 
                        inserting ``7''; and</DELETED>
                <DELETED>    (C) by amending subparagraph (B) to read 
                as follows:</DELETED>
                <DELETED>    ``(B) Special rules for lesser developed 
                countries.--</DELETED>
                        <DELETED>    ``(i) In general.--Subject to 
                        subparagraph (A), preferential treatment under 
                        this paragraph shall be extended through 
                        September 30, 2004, for apparel articles wholly 
                        assembled, or knit-to-shape and wholly 
                        assembled, or both, in one or more lesser 
                        developed beneficiary sub-Saharan African 
                        countries regardless of the country of origin 
                        of the fabric or the yarn used to make such 
                        articles.</DELETED>
                        <DELETED>    ``(ii) Lesser developed 
                        beneficiary sub-saharan african country.--For 
                        purposes of clause (i), the term `lesser 
                        developed beneficiary sub-Saharan African 
                        country' means--</DELETED>
                                <DELETED>    ``(I) a beneficiary sub-
                                Saharan African country that had a per 
                                capita gross national product of less 
                                than $1,500 in 1998, as measured by the 
                                International Bank for Reconstruction 
                                and Development;</DELETED>
                                <DELETED>    ``(II) Botswana; 
                                and</DELETED>
                                <DELETED>    ``(III) 
                                Namibia.''.</DELETED>
        <DELETED>    (4) Paragraph (4)(B) is amended by striking 
        ``18.5'' and inserting ``21.5''.</DELETED>
        <DELETED>    (5) Section 112(b) of such Act is further amended 
        by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(7) Apparel articles assembled in one or more 
        beneficiary sub-saharan african countries from united states 
        and beneficiary sub-saharan african country components.--
        Apparel articles sewn or otherwise assembled in one or more 
        beneficiary sub-Saharan African countries with thread formed in 
        the United States from components cut in the United States and 
        one or more beneficiary sub-Saharan African countries from 
        fabric wholly formed in the United States from yarns wholly 
        formed in the United States, or from components knit-to-shape 
        in the United States and one or more beneficiary sub-Saharan 
        African 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).''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Andean Trade Preference Expansion 
Act''.

                    TITLE I--ANDEAN TRADE PREFERENCE

SEC. 101. 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 diversification and broad-based 
        economic development that provides sustainable economic 
        alternatives to drug-crop production, strengthening the 
        legitimate economies of Andean countries and creating viable 
        alternatives to illicit trade in coca.
            (3) Notwithstanding the success of the Andean Trade 
        Preference Act, the Andean region remains threatened by 
        political and economic instability and fragility, vulnerable to 
        the consequences of the drug war and fierce global competition 
        for its legitimate trade.
            (4) The continuing instability in the Andean region poses a 
        threat to the security interests of the United States and the 
        world. This problem has been partially addressed through 
        foreign aid, such as Plan Colombia, enacted by Congress in 
        2000. However, foreign aid alone is not sufficient. Enhancement 
        of legitimate trade with the United States provides an 
        alternative means for reviving and stabilizing the economies in 
        the Andean region.
            (5) The Andean Trade Preference Act 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 domestic private enterprise 
        and foreign investors in the economic prospects of the region, 
        ensuring that legitimate private enterprise can be the engine 
        of economic development and political stability in the region.
            (7) Each of the Andean beneficiary countries is committed 
        to conclude negotiation of a Free Trade 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 Andean 
        beneficiaries 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. 102. TEMPORARY PROVISIONS.

    (a) In General.--Section 204(b) of the Andean Trade Preference Act 
(19 U.S.C. 3203(b)) is amended to read as follows:
    ``(b) Import-Sensitive Articles.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile 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) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets, and straps), of whatever type including, 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;
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (c);
                    ``(G) sugars, syrups, and sugar containing products 
                subject to tariff-rate quotas; or
                    ``(H) rum and tafia classified in subheading 
                2208.40 of the HTS.
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Articles covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following articles:
                            ``(i) Apparel articles assembled from 
                        products of the united states and atpea 
                        beneficiary countries or products not available 
                        in commercial quantities.--Apparel articles 
                        sewn or
                        otherwise assembled in 1 or more ATPEA 
                        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 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 formed 
                                in the United States), provided that 
                                apparel articles sewn or
                                otherwise assembled from materials 
                                described in this subclause are 
                                assembled with thread formed in the 
                                United States.
                                    ``(II) Fabric components knit-to-
                                shape in the United States from yarns 
                                wholly formed in the United States and 
                                fabric components knit-to-shape in 1 or 
                                more ATPEA beneficiary countries from 
                                yarns wholly formed in the United 
                                States.
                                    ``(III) Fabrics or fabric 
                                components formed or components knit-
                                to-shape, in 1 or more ATPEA 
                                beneficiary countries, from yarns 
                                wholly formed in 1 or more ATPEA 
                                beneficiary countries, if such fabrics 
                                (including fabrics not formed from 
                                yarns, if such fabrics are classifiable 
                                under heading 5602 or 5603 of the HTS 
                                and are formed in 1 or more ATPEA 
                                beneficiary countries) or components 
                                are in chief weight of llama, alpaca, 
or vicuna.
                                    ``(IV) Fabrics or yarns that are 
                                not formed in the United States or in 1 
                                or more ATPEA beneficiary countries, to 
                                the extent that apparel articles of 
                                such fabrics or yarns would be eligible 
                                for preferential treatment, without 
                                regard to the source of the fabrics or 
                                yarns, under Annex 401 of the NAFTA.
                            ``(ii) Knit-to-shape apparel articles.--
                        Apparel articles knit-to-shape (other than 
                        socks provided for in heading 6115 of the HTS) 
                        in 1 or more ATPEA beneficiary countries from 
                        yarns wholly formed in the United States.
                            ``(iii) Regional fabric.--
                                    ``(I) General rule.--Knit apparel 
                                articles wholly assembled in 1 or more 
                                ATPEA beneficiary countries exclusively 
                                from fabric formed, or fabric 
                                components formed, or components knit-
                                to-shape, or any combination thereof, 
                                in 1 or more ATPEA beneficiary 
                                countries from yarns wholly formed in 
                                the United States, in an amount not 
                                exceeding the amount set forth in 
                                subclause (II).
                                    ``(II) Limitation.--The amount 
                                referred to in subclause (I) is 
                                70,000,000 square meter equivalents 
                                during the 1-year period beginning on 
                                March 1, 2002, increased by 16 percent, 
                                compounded annually, in each succeeding 
                                1-year period through February 28, 
                                2006.
                            ``(iv) Certain other apparel articles.--
                                    ``(I) General rule.--Subject to 
                                subclause (II), any apparel article 
                                classifiable under subheading 6212.10 
                                of the HTS, if the article is both cut 
                                and sewn or otherwise assembled in the 
                                United States, or one or more of the 
                                ATPEA beneficiary countries, or both.
                                    ``(II) Limitation.--During the 1-
                                year period beginning on March 1, 2003, 
                                and during each of the 2 succeeding 1-
                                year periods, apparel articles 
                                described in subclause (I) of a 
                                producer or an entity controlling 
                                production shall be eligible for 
                                preferential treatment under 
                                subparagraph (B) only if the aggregate 
                                cost of fabric components formed in the 
                                United States that are used in the 
                                production of all such articles of that 
                                producer or entity that are entered 
                                during the preceding 1-year period is 
                                at least 75 percent of the aggregate 
                                declared customs value of the fabric 
                                contained in all such articles of that 
                                producer or entity that are entered 
                                during the preceding 1-year period.
                                    ``(III) Development of procedure to 
                                ensure compliance.--The United States 
                                Customs Service shall develop and 
                                implement methods and procedures to 
                                ensure ongoing compliance with the 
                                requirement set forth in subclause 
                                (II). If the Customs Service finds that 
                                a producer or an entity controlling 
                                production has not satisfied such 
                                requirement in a 1-year period, then 
                                apparel articles described in subclause 
                                (I) of that producer or entity shall be 
                                ineligible for preferential treatment 
                                under subparagraph (B) during any 
                                succeeding 1-year period until the 
                                aggregate cost of fabric components 
                                formed in the United States used in the 
                                production of such articles of that 
                                producer or entity that are entered 
                                during the preceding 1-year period is 
                                at least 85 percent of the aggregate 
                                declared customs value of the fabric 
                                contained in all such articles of that 
                                producer or entity that are entered 
                                during the preceding 1-year period.
                            ``(v) Apparel articles assembled from 
                        fabrics or yarn not widely available in 
                        commercial quantities.--At the request of any 
                        interested party, the President is authorized 
                        to proclaim additional fabrics and yarn as 
                        eligible for preferential treatment under 
                        clause (i)(IV) if--
                                    ``(I) the President determines that 
                                such fabrics or yarn cannot be supplied 
                                by the domestic industry in commercial 
                                quantities in a timely manner;
                                    ``(II) the President has obtained 
                                advice regarding the proposed action 
                                from the appropriate advisory committee 
                                established under section 135 of the 
                                Trade Act of 1974 (19 U.S.C. 2155) and 
                                the United States International Trade 
                                Commission;
                                    ``(III) within 60 days after the 
                                request, the President has submitted a 
                                report to the Committee on Ways and 
                                Means of the House of Representatives 
                                and the Committee on Finance of the 
                                Senate that sets forth the action 
                                proposed to be proclaimed and the 
                                reasons for such actions, and the 
                                advice obtained under subclause (II);
                                    ``(IV) a period of 60 calendar 
                                days, beginning with the first day on 
                                which the President has met the 
                                requirements of subclause (III), has 
                                expired; and
                                    ``(V) the President has consulted 
                                with such committees regarding the 
                                proposed action during the period 
                                referred to in subclause (III).
                            ``(vi) Handloomed, handmade, and folklore 
                        articles.--A handloomed, handmade, or folklore 
                        article of an ATPEA beneficiary country 
                        identified under subparagraph (C) that is 
                        certified as such by the competent authority of 
                        such beneficiary country.
                            ``(vii) Special rules.--
                                    ``(I) Exception for findings and 
                                trimmings.--(aa) An article otherwise 
                                eligible for preferential treatment 
                                under this paragraph shall not be 
                                ineligible 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 assembled 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 labels, and other 
                                similar products. Elastic strips are 
considered findings or trimmings only if they are each less than 1 inch 
in width and are used in the production of brassieres.
                                    ``(bb) In the case of an article 
                                described in clause (i)(I) of this 
                                subparagraph, sewing thread shall not 
                                be treated as findings or trimmings 
                                under this subclause.
                                    ``(II) Certain interlinings.--(aa) 
                                An article otherwise eligible for 
                                preferential treatment under this 
                                paragraph shall not be ineligible for 
                                such treatment because the article 
                                contains certain interlinings of 
                                foreign origin, if the value of such 
                                interlinings (and any findings and 
                                trimmings) does not exceed 25 percent 
                                of the cost of the components of the 
                                assembled article.
                                    ``(bb) Interlinings eligible for 
                                the treatment described in division 
                                (aa) include only a chest type plate, 
                                `hymo' piece, or `sleeve header', of 
                                woven or weft-inserted warp knit 
                                construction and of coarse animal hair 
                                or man-made filaments.
                                    ``(cc) The treatment described in 
                                this subclause shall terminate if the 
                                President makes a determination that 
                                United States manufacturers are 
                                producing such interlinings in the 
                                United States in commercial quantities.
                                    ``(III) De minimis rule.--An 
                                article that would otherwise be 
                                ineligible for preferential treatment 
                                under this paragraph because the 
                                article contains yarns not wholly 
                                formed in the United States or in 1 or 
                                more ATPEA beneficiary countries shall 
                                not be ineligible for such treatment if 
                                the total weight of all such yarns is 
                                not more than 7 percent of the total 
                                weight of the good. Notwithstanding the 
                                preceding sentence, an apparel article 
                                containing elastomeric yarns shall be 
                                eligible for preferential treatment 
                                under this paragraph only if such yarns 
                                are wholly formed in the United States.
                                    ``(IV) Special origin rule.--An 
                                article otherwise eligible for 
                                preferential treatment under clause (i) 
                                of this subparagraph shall not be 
                                ineligible for such treatment because 
                                the article contains nylon filament 
                                yarn (other than elastomeric yarn) that 
                                is classifiable under subheading 
                                5402.10.30, 5402.10.60, 5402.31.30, 
                                5402.31.60, 5402.32.30, 5402.32.60, 
                                5402.41.10, 5402.41.90, 5402.51.00, or 
                                5402.61.00 of the HTS duty-free from a 
                                country that is a party to an agreement 
                                with the United States establishing a 
                                free trade area, which entered into 
                                force before January 1, 1995.
                                    ``(V) Clarification of certain knit 
                                apparel articles.--Notwithstanding any 
                                other provision of law, an article 
                                otherwise eligible for preferential 
                                treatment under clause (iii)(I) of this 
                                subparagraph, shall not be ineligible 
                                for such treatment because the article, 
                                or a component thereof, contains fabric 
                                formed in the United States from yarns 
                                wholly formed in the United States.
                            ``(viii) Textile luggage.--Textile 
                        luggage--
                                    ``(I) assembled in an ATPEA 
                                beneficiary country from fabric wholly 
                                formed and cut in the United States, 
                                from yarns wholly formed in the United 
                                States, that is entered under 
                                subheading 9802.00.80 of the HTS; or
                                    ``(II) assembled from fabric cut in 
                                an ATPEA beneficiary country from 
                                fabric wholly formed in the United 
                                States from yarns wholly formed in the 
                                United States.
                    ``(B) Preferential treatment.--Except as provided 
                in subparagraph (E), during the transition period, the 
                articles to which subparagraph (A) applies shall enter 
                the United States free of duty and free of any 
                quantitative restrictions, limitations, or consultation 
                levels.
                    ``(C) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (A)(vi), the 
                President shall consult with representatives of the 
                ATPEA beneficiary countries concerned for the purpose 
                of identifying particular textile and apparel goods 
                that are mutually agreed upon as being handloomed, 
                handmade, or folklore goods of a kind described in 
                section 2.3(a), (b), or (c) of the Annex or Appendix 
                3.1.B.11 of the Annex.
                    ``(D) Penalties for transshipments.--
                            ``(i) Penalties for exporters.--If the 
                        President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to textile or 
                        apparel articles from an ATPEA 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 sufficient 
                        evidence, that transshipment has occurred, the 
                        President shall request that the ATPEA 
                        beneficiary country or countries through whose 
                        territory the transshipment has occurred take 
                        all necessary and appropriate actions to 
                        prevent such transshipment. If the President 
                        determines that a country is not taking such 
                        actions, the President shall reduce the 
                        quantities of textile and apparel articles that 
                        may be imported into the United States from 
                        such country by the quantity of the 
                        transshipped articles multiplied by 3, to the 
                        extent consistent with the obligations of the 
                        United States under the WTO.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment under subparagraph (B) has been 
                        claimed for a textile or apparel article 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 this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph (B).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take 
                        bilateral emergency tariff actions of a kind 
described in section 4 of the Annex with respect to any apparel article 
imported from an ATPEA beneficiary country if the application of tariff 
treatment under subparagraph (B) to such article results in conditions 
that would be cause for the taking of such actions under such section 4 
with respect to a like article described in the same 8-digit subheading 
of the HTS that is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                (5) of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in section 4 of the Annex shall have 
                                the meaning given that term in 
                                paragraph (5)(D) of this subsection; 
                                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 ATPEA beneficiary country in 
                                question and the country does not agree 
                                to consult within the time period 
                                specified under section 4.
            ``(3) Transition period treatment of certain other articles 
        originating in beneficiary countries.--
                    ``(A) Equivalent tariff treatment.--
                            ``(i) In general.--Subject to clause (ii), 
                        the tariff treatment accorded at any time 
                        during the transition period to any article 
                        referred to in any of subparagraphs (B), (D) 
                        through (F), or (H) of paragraph (1) that is an 
                        ATPEA originating good shall be identical to 
                        the tariff treatment that is accorded at such 
                        time under Annex 302.2 of the NAFTA to an 
                        article described in the same 8-digit 
                        subheading of the HTS that is a good of Mexico 
                        and is imported into the United States.
                            ``(ii) Exception.--Clause (i) does not 
                        apply to any article accorded duty-free 
                        treatment under U.S. Note 2(b) to subchapter II 
                        of chapter 98 of the HTS.
                    ``(B) Relationship to subsection (c) duty 
                reductions.--If at any time during the transition 
                period the rate of duty that would (but for action 
                taken under subparagraph (A)(i) in regard to such 
                period) apply with respect to any article under 
                subsection (c) is a rate of duty that is lower than the 
                rate of duty resulting from such action, then such 
                lower rate of duty shall be applied for the purposes of 
                implementing such action.
                    ``(C) Special rule for sugars, syrups, and sugar 
                containing products.--Duty-free treatment under this 
                Act shall not be extended to sugars, syrups, and sugar-
                containing products subject to over-quota duty rates 
                under applicable tariff-rate quotas.
                    ``(D) Special rule for certain tuna products.--
                            ``(i) In general.--The President may 
                        proclaim duty-free treatment under this Act for 
                        tuna that is harvested by United States vessels 
                        or ATPEA beneficiary country vessels, and is 
                        prepared or preserved in any manner, in 
                        airtight containers in an ATPEA beneficiary 
                        country. Such duty-free treatment may be 
                        proclaimed in any calendar year for a quantity 
                        of such tuna that does not exceed 20 percent of 
                        the domestic United States tuna pack in the 
                        preceding calendar year. As used in the 
                        preceding sentence, the term `tuna pack' means 
                        tuna pack as defined by the National Marine 
                        Fisheries Service of the United States 
                        Department of Commerce for purposes of 
                        subheading 1604.14.20 of the HTS as in effect 
                        on the date of enactment of the Andean Trade 
                        Preference Expansion Act.
                            ``(ii) United states vessel.--For purposes 
                        of this subparagraph, a `United States vessel' 
                        is a vessel having a certificate of 
                        documentation with a fishery endorsement under 
                        chapter 121 of title 46, United States Code.
                            ``(iii) ATPEA vessel.--For purposes of this 
                        subparagraph, an `ATPEA vessel' is a vessel--
                                    ``(I) which is registered or 
                                recorded in an ATPEA beneficiary 
                                country;
                                    ``(II) which sails under the flag 
                                of an ATPEA beneficiary country;
                                    ``(III) which is at least 75 
                                percent owned by nationals of an ATPEA 
                                beneficiary country or by a company 
                                having its principal place of business 
                                in an ATPEA beneficiary country, of 
                                which the manager or managers, chairman 
                                of the board of directors or of the 
                                supervisory board, and the majority of 
                                the members of such boards are 
                                nationals of an ATPEA beneficiary 
                                country and of which, in the case of a 
                                company, at least 50 percent of the 
                                capital is owned by an ATPEA 
                                beneficiary country or by public bodies 
                                or nationals of an ATPEA beneficiary 
                                country;
                                    ``(IV) of which the master and 
                                officers are nationals of an ATPEA 
                                beneficiary country; and
                                    ``(V) of which at least 75 percent 
                                of the crew are nationals of an ATPEA 
                                beneficiary country.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (2) or (3) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States law, in 
                        accordance with regulations promulgated by the 
                        Secretary of the Treasury.
                            ``(ii) Determination.--
                                    ``(I) In general.--In order to 
                                qualify for the preferential treatment 
                                under paragraph (2) 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 
                                subclause (II)--
                                            ``(aa) has implemented and 
                                        follows; or
                                            ``(bb) is making 
                                        substantial progress toward 
                                        implementing and 
following, procedures and requirements similar in all material respects 
to the relevant procedures and requirements under chapter 5 of the 
NAFTA.
                                    ``(II) Country described.--A 
                                country is described in this subclause 
                                if it is an ATPEA beneficiary country--
                                            ``(aa) from which the 
                                        article is exported; or
                                            ``(bb) in which materials 
                                        used in the production of the 
                                        article originate or in which 
                                        the article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment under 
                                        paragraph (2) or (3).
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented pursuant 
                to United States law), if the article were imported 
                from Mexico.
                    ``(C) Report by ustr on cooperation of other 
                countries concerning circumvention.--The United States 
                Commissioner of Customs shall conduct a study analyzing 
                the extent to which each ATPEA beneficiary country--
                            ``(i) has cooperated fully with the United 
                        States, consistent with its domestic laws and 
                        procedures, in instances of circumvention or 
                        alleged circumvention of existing quotas on 
                        imports of textile and apparel goods, to 
                        establish necessary relevant facts in the 
                        places of import, export, and, where 
                        applicable, transshipment, including 
                        investigation of circumvention practices, 
                        exchanges of documents, correspondence, 
                        reports, and other relevant information, to the 
                        extent such information is available;
                            ``(ii) has taken appropriate measures, 
                        consistent with its domestic laws and 
                        procedures, against exporters and importers 
                        involved in instances of false declaration 
                        concerning fiber content, quantities, 
                        description, classification, or origin of 
                        textile and apparel goods; and
                            ``(iii) has penalized the individuals and 
                        entities involved in any such circumvention, 
                        consistent with its domestic laws and 
                        procedures, and has worked closely to seek the 
                        cooperation of any third country to prevent 
                        such circumvention from taking place in that 
                        third country.
                The Trade Representative shall submit to Congress, not 
                later than October 1, 2002, a report on the study 
                conducted under this subparagraph.
            ``(5) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) ATPEA beneficiary country.--The term `ATPEA 
                beneficiary country' means any `beneficiary country', 
                as defined in section 203(a)(1) of this title, which 
                the President designates as an ATPEA beneficiary 
                country, taking into account the criteria contained in 
                subsections (c) and (d) of section 203 and other 
                appropriate criteria, including the following:
                            ``(i) Whether the beneficiary country has 
                        demonstrated a commitment to--
                                    ``(I) undertake its obligations 
                                under the WTO, including those 
                                agreements listed in section 101(d) of 
                                the Uruguay Round Agreements Act, on or 
                                ahead of schedule; and
                                    ``(II) participate in negotiations 
                                toward the completion of the FTAA or 
                                another free trade agreement.
                            ``(ii) The extent to which the country 
                        provides protection of intellectual property 
                        rights consistent with or greater than the 
                        protection afforded under the Agreement on 
                        Trade-Related Aspects of Intellectual Property 
                        Rights described in section 101(d)(15) of the 
                        Uruguay Round 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 
                                employment 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 implemented 
                        its commitments to eliminate the worst forms of 
                        child labor, as defined in section 507(6) of 
                        the Trade Act of 1974.
                            ``(v) The extent to which the country has 
                        met the counter-narcotics certification 
                        criteria set forth in section 490 of the 
                        Foreign Assistance Act of 1961 (22 U.S.C. 
                        2291j) for eligibility for United States 
                        assistance.
                            ``(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, 
                                nondiscriminatory, and competitive 
                                procedures in government procurement 
                                equivalent to those contained in the 
                                Agreement on Government Procurement 
                                described in section 101(d)(17) of the 
                                Uruguay Round Agreements Act; and
                                    ``(II) contributes to efforts in 
                                international fora to develop and 
                                implement international rules in 
                                transparency in government procurement.
                    ``(C) ATPEA originating good.--
                            ``(i) In general.--The term `ATPEA 
                        originating good' means a good that meets the 
                        rules of origin for a good set forth in chapter 
                        4 of the NAFTA as implemented pursuant to 
                        United States law.
                            ``(ii) Application of chapter 4.--In 
                        applying chapter 4 of the NAFTA with respect to 
                        an ATPEA beneficiary country for purposes of 
                        this subsection--
                                    ``(I) no country other than the 
                                United States and an ATPEA beneficiary 
                                country may be treated as being a party 
                                to the NAFTA;
                                    ``(II) any reference to trade 
                                between the United States and Mexico 
                                shall be deemed to refer to trade 
                                between the United States and an ATPEA 
                                beneficiary country;
                                    ``(III) any reference to a party 
                                shall be deemed to refer to an ATPEA 
                                beneficiary country or the United 
                                States; and
                                    ``(IV) any reference to parties 
                                shall be deemed to refer to any 
                                combination of ATPEA beneficiary 
                                countries or to the United States and 
                                one or more ATPEA beneficiary countries 
                                (or any combination thereof).
                    ``(D) Transition period.--The term `transition 
                period' means, with respect to an ATPEA beneficiary 
                country, the period that begins on the date of 
                enactment, and ends on the earlier of--
                            ``(i) February 28, 2006; or
                            ``(ii) the date on which the FTAA or 
                        another free trade agreement that makes 
                        substantial progress in achieving the 
                        negotiating objectives set forth in section 
                        108(b)(5) of Public Law 103-182 (19 U.S.C. 
                        3317(b)(5)) enters into force with respect to 
                        the United States and the ATPEA beneficiary 
                        country.
                    ``(E) ATPEA.--The term `ATPEA' means the Andean 
                Trade Preference Expansion Act.
                    ``(F) FTAA.--The term `FTAA' means the Free Trade 
                Area of the Americas.''.
    (b) Determination Regarding Retention of Designation.--Section 
203(e) of the Andean Trade Preference Act (19 U.S.C. 3202(e)) is 
amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) by inserting ``(A)'' after ``(1)''; and
                    (C) 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 ATPEA beneficiary country; or
            ``(ii) withdraw, suspend, or limit the application of 
        preferential treatment under section 204(b) (2) and (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).''; 
and
            (2) by adding after paragraph (2) the following new 
        paragraph:
    ``(3) If preferential treatment under section 204(b) (2) and (3) is 
withdrawn, suspended, or limited with respect to an ATPEA beneficiary 
country, such country shall not be deemed to be a `party' for the 
purposes of applying section 204(b)(5)(C) to imports of articles for 
which preferential treatment has been withdrawn, suspended, or limited 
with respect to such country.''.
    (c) Reporting Requirements.--Section 203(f) of the Andean Trade 
Preference Act (19 U.S.C. 3202(f)) is amended to read as follows:
    ``(f) Reporting Requirements.--
            ``(1) In general.--Not later than December 31, 2002, and 
        every 2 years thereafter during the period this title is in 
        effect, the United States Trade Representative shall submit to 
        Congress a report regarding the operation of this title, 
        including--
                    ``(A) with respect to subsections (c) and (d), the 
                results of a general review of beneficiary countries 
                based on the considerations described in such 
                subsections; and
                    ``(B) the performance of each beneficiary country 
                or ATPEA beneficiary country, as the case may be, under 
                the criteria set forth in section 204(b)(5)(B).
            ``(2) Public comment.--Before submitting the report 
        described in paragraph (1), the United States Trade 
        Representative shall publish a notice in the Federal Register 
        requesting public comments on whether beneficiary countries are 
        meeting the criteria listed in section 204(b)(5)(B).''.
    (d) Conforming Amendments.--
            (1) In general.--
                    (A) Section 202 of the Andean Trade Preference Act 
                (19 U.S.C. 3201) is amended by inserting ``(or other 
                preferential treatment)'' after ``treatment''.
                    (B) Section 204(a)(1) of the Andean Trade 
                Preference Act (19 U.S.C. 3203(a)(1)) is amended by 
                inserting ``(or otherwise provided for)'' after 
                ``eligibility''.
                    (C) Section 204(a)(1) of the Andean Trade 
                Preference Act (19 U.S.C. 3203(a)(1)) is amended by 
                inserting ``(or preferential treatment)'' after ``duty-
                free treatment''.
            (2) Definitions.--Section 203(a) of the Andean Trade 
        Preference Act (19 U.S.C. 3202(a)) is amended by adding at the 
        end the following new paragraphs:
            ``(4) The term ``NAFTA'' means the North American Free 
        Trade Agreement entered into between the United States, Mexico, 
        and Canada on December 17, 1992.
            ``(5) The terms `WTO' and `WTO member' have the meanings 
        given those terms in section 2 of the Uruguay Round Agreements 
        Act (19 U.S.C. 3501).''.

SEC. 103. TERMINATION.

    Section 208(b) of the Andean Trade Preference Act (19 U.S.C. 
3206(b)) is amended to read as follows:
    ``(b) Termination of Preferential Treatment.--No preferential duty 
treatment extended to beneficiary countries under this Act shall remain 
in effect after February 28, 2006.''.

                TITLE II--MISCELLANEOUS TRADE PROVISIONS

SEC. 201. WOOL PROVISIONS.

    (a) Short Title.--This section may be cited as the ``Wool 
Manufacturer Payment Clarification and Technical Corrections Act''.
    (b) Clarification of Temporary Duty Suspension.--Heading 9902.51.13 
of the Harmonized Tariff Schedule of the United States is amended by 
inserting ``average'' before ``diameters''.
    (c) Payments to Manufacturers of Certain Wool Products.--
            (1) Payments.--Section 505 of the Trade and Development Act 
        of 2000 (Public Law 106-200; 114 Stat. 303) is amended as 
        follows:
                    (A) Subsection (a) is amended--
                            (i) by striking ``In each of the calendar 
                        years'' and inserting ``For each of the 
                        calendar years''; and
                            (ii) by striking ``for a refund of duties'' 
                        and all that follows through the end of the 
                        subsection and inserting ``for a payment equal 
                        to an amount determined pursuant to subsection 
                        (d)(1).''.
                    (B) Subsection (b) is amended to read as follows:
    ``(b) Wool Yarn.--
            ``(1) Importing manufacturers.--For each of the calendar 
        years 2000, 2001, and 2002, a manufacturer of worsted wool 
        fabrics who imports wool yarn of the kind described in heading 
        9902.51.13 of the Harmonized Tariff Schedule of the United 
        States shall be eligible for a payment equal to an amount 
        determined pursuant to subsection (d)(2).
            ``(2) Nonimporting manufacturers.--For each of the calendar 
        years 2001 and 2002, any other manufacturer of worsted wool 
        fabrics of imported wool yarn of the kind described in heading 
        9902.51.13 of the Harmonized Tariff Schedule of the United 
        States shall be eligible for a payment equal to an amount 
        determined pursuant to subsection (d)(2).''.
                    (C) Subsection (c) is amended to read as follows:
    ``(c) Wool Fiber and Wool Top.--
            ``(1) Importing manufacturers.--For each of the calendar 
        years 2000, 2001, and 2002, a manufacturer of wool yarn or wool 
        fabric who imports wool fiber or wool top of the kind described 
        in heading 9902.51.14 of the Harmonized Tariff Schedule of the 
        United States shall be eligible for a payment equal to an 
        amount determined pursuant to subsection (d)(3).
            ``(2) Nonimporting manufacturers.--For each of the calendar 
        years 2001 and 2002, any other manufacturer of wool yarn or 
        wool fabric of imported wool fiber or wool top of the kind 
        described in heading 9902.51.14 of the Harmonized Tariff 
        Schedule of the United States shall be eligible for a payment 
        equal to an amount determined pursuant to subsection (d)(3).''.
                    (D) Section 505 is further amended by striking 
                subsection (d) and inserting the following new 
                subsections:
    ``(d) Amount of Annual Payments to Manufacturers.--
            ``(1) Manufacturers of men's suits, etc. of imported 
        worsted wool fabrics.--
                    ``(A) Eligible to receive more than $5,000.--Each 
                annual payment to manufacturers described in subsection 
                (a) who, according to the records of the Customs 
                Service as of September 11, 2001, are eligible to 
                receive more than $5,000 for each of the calendar years 
                2000, 2001, and 2002, shall be in an amount equal to 
                one-third of the amount determined by multiplying 
                $30,124,000 by a fraction--
                            ``(i) the numerator of which is the amount 
                        attributable to the duties paid on eligible 
                        wool products imported in calendar year 1999 by 
                        the manufacturer making the claim, and
                            ``(ii) the denominator of which is the 
                        total amount attributable to the duties paid on 
                        eligible wool products imported in calendar 
                        year 1999 by all the manufacturers described in 
                        subsection (a) who, according to the records of 
                        the Customs Service as of September 11, 2001, 
                        are eligible to receive more than $5,000 for 
                        each such calendar year under this section as 
                        it was in effect on that date.
                    ``(B) Eligible wool products.--For purposes of 
                subparagraph (A), the term `eligible wool products' 
                refers to imported worsted wool fabrics described in 
                subsection (a).
                    ``(C) Others.--All manufacturers described in 
                subsection (a), other than the manufacturer's to which 
                subparagraph (A) applies, shall each receive an annual 
                payment in an amount equal to one-third of the amount 
                determined by dividing $1,665,000 by the number of all 
                such other manufacturers.
            ``(2) Manufacturers of worsted wool fabrics of imported 
        wool yarn.--
                    ``(A) Importing manufacturers.--Each annual payment 
                to an importing manufacturer described in subsection 
(b)(1) shall be in an amount equal to one-third of the amount 
determined by multiplying $2,202,000 by a fraction--
                            ``(i) the numerator of which is the amount 
                        attributable to the duties paid on eligible 
                        wool products imported in calendar year 1999 by 
                        the importing manufacturer making the claim, 
                        and
                            ``(ii) the denominator of which is the 
                        total amount attributable to the duties paid on 
                        eligible wool products imported in calendar 
                        year 1999 by all the importing manufacturers 
                        described in subsection (b)(1).
                    ``(B) Eligible wool products.--For purposes of 
                subparagraph (A), the term `eligible wool products' 
                refers to imported wool yarn described in subsection 
                (b)(1).
                    ``(C) Nonimporting manufacturers.--Each annual 
                payment to a nonimporting manufacturer described in 
                subsection (b)(2) shall be in an amount equal to one-
                half of the amount determined by multiplying $141,000 
                by a fraction--
                            ``(i) the numerator of which is the amount 
                        attributable to the purchases of imported 
                        eligible wool products in calendar year 1999 by 
                        the nonimporting manufacturer making the claim, 
                        and
                            ``(ii) the denominator of which is the 
                        total amount attributable to the purchases of 
                        imported eligible wool products in calendar 
                        year 1999 by all the nonimporting manufacturers 
                        described in subsection (b)(2).
            ``(3) Manufacturers of wool yarn or wool fabric of imported 
        wool fiber or wool top.--
                    ``(A) Importing manufacturers.--Each annual payment 
                to an importing manufacturer described in subsection 
                (c)(1) shall be in an amount equal to one-third of the 
                amount determined by multiplying $1,522,000 by a 
                fraction--
                            ``(i) the numerator of which is the amount 
                        attributable to the duties paid on eligible 
                        wool products imported in calendar year 1999 by 
                        the importing manufacturer making the claim, 
                        and
                            ``(ii) the denominator of which is the 
                        total amount attributable to the duties paid on 
                        eligible wool products imported in calendar 
                        year 1999 by all the importing manufacturers 
                        described in subsection (c)(1).
                    ``(B) Eligible wool products.--For purposes of 
                subparagraph (A), the term `eligible wool products' 
                refers to imported wool fiber or wool top described in 
                subsection (c)(1).
                    ``(C) Nonimporting manufacturers.--Each annual 
                payment to a nonimporting manufacturer described in 
                subsection (c)(2) shall be in an amount equal to one-
                half of the amount determined by multiplying $597,000 
                by a fraction--
                            ``(i) the numerator of which is the amount 
                        attributable to the purchases of imported 
                        eligible wool products in calendar year 1999 by 
                        the nonimporting manufacturer making the claim, 
                        and
                            ``(ii) the denominator of which is the 
                        amount attributable to the purchases of 
                        imported eligible wool products in calendar 
                        year 1999 by all the nonimporting manufacturers 
                        described in subsection (c)(2).
            ``(4) Letters of intent.--Except for the nonimporting 
        manufacturers described in subsections (b)(2) and (c)(2) who 
        may make claims under this section by virtue of the enactment 
        of the Wool Manufacturer Payment Clarification and Technical 
        Corrections Act, only manufacturers who, according to the 
        records of the Customs Service, filed with the Customs Service 
        before September 11, 2001, letters of intent to establish 
        eligibility to be claimants are eligible to make a claim for a 
        payment under this section.
            ``(5) Amount attributable to purchases by nonimporting 
        manufacturers.--
                    ``(A) Amount attributable.--For purposes of 
                paragraphs (2)(C) and (3)(C), the amount attributable 
                to the purchases of imported eligible wool products in 
                calendar year 1999 by a nonimporting manufacturer shall 
                be the amount the nonimporting manufacturer paid for 
                eligible wool products in calendar year 1999, as 
                evidenced by invoices. The nonimporting manufacturer 
                shall make such calculation and submit the resulting 
                amount to the Customs Service, within 45 days after the 
                date of enactment of the Wool Manufacturer Payment 
                Clarification and Technical Corrections Act, in a 
                signed affidavit that attests that the information 
                contained therein is true and accurate to the best of 
                the affiant's belief and knowledge. The nonimporting 
                manufacturer shall retain the records upon which the 
                calculation is based for a period of five years 
                beginning on the date the affidavit is submitted to the 
                Customs Service.
                    ``(B) Eligible wool product.--For purposes of 
                subparagraph (A)--
                            ``(i) the eligible wool product for 
                        nonimporting manufacturers of worsted wool 
                        fabrics is wool yarn of the kind described in 
                        heading 9902.51.13 of the Harmonized Tariff 
                        Schedule of the United States purchased in 
                        calendar year 1999; and
                            ``(ii) the eligible wool products for 
                        nonimporting manufacturers of wool yarn or wool 
                        fabric are wool fiber or wool top of the kind 
                        described in heading 9902.51.14 of such 
                        Schedule purchased in calendar year 1999.
            ``(6) Amount attributable to duties paid.--For purposes of 
        paragraphs (1), (2)(A), and (3)(A), the amount attributable to 
        the duties paid by a manufacturer shall be the amount shown on 
        the records of the Customs Service as of September 11, 2001, 
        under this section as then in effect.
            ``(7) Schedule of payments; reallocations.--
                    ``(A) Schedule.--Of the payments described in 
                paragraphs (1), (2)(A), and (3)(A), the Customs Service 
                shall make the first installment on or before December 
                31, 2001, the second installment on or before April 15, 
                2002, and the third installment on or before April 15, 
                2003. Of the payments described in paragraphs (2)(C) 
                and (3)(C), the Customs Service shall make the first 
                installment on or before April 15, 2002, and the second 
                installment on or before April 15, 2003.
                    ``(B) Reallocations.--In the event that a 
                manufacturer that would have received payment under 
                subparagraph (A) or (C) of paragraph (1), (2), or (3) 
                ceases to be qualified for such payment as such a 
                manufacturer, the amounts otherwise payable to the 
                remaining manufacturers under such subparagraph shall 
                be increased on a pro rata basis by the amount of the 
                payment such manufacturer would have received.
            ``(8) Reference.--For purposes of paragraphs (1)(A) and 
        (6), the `records of the Customs Service as of September 11, 
        2001' are the records of the Wool Duty Unit of the Customs 
        Service on September 11, 2001, as adjusted by the Customs 
        Service to the extent necessary to carry out this section. The 
        amounts so adjusted are not subject to administrative or 
        judicial review.
    ``(e) Affidavits by Manufacturers.--
            ``(1) Affidavit required.--A manufacturer may not receive a 
        payment under this section for calendar year 2000, 2001, or 
        2002, as the case may be, unless that manufacturer has 
        submitted to the Customs Service for that calendar year a 
        signed affidavit that attests that, during that calendar year, 
        the affiant was a manufacturer in the United States described 
        in subsection (a), (b), or (c).
            ``(2) Timing.--An affidavit under paragraph (1) shall be 
        valid--
                    ``(A) in the case of a manufacturer described in 
                paragraph (1), (2)(A), or (3)(A) of subsection (d) 
                filing a claim for a payment for calendar year 2000, 
                only if the affidavit is postmarked no later than 15 
                days after the date of enactment of the Wool 
                Manufacturer Payment Clarification and Technical 
                Corrections Act; and
                    ``(B) in the case of a claim for a payment for 
                calendar year 2001 or 2002, only if the affidavit is 
                postmarked no later than March 1, 2002, or March 1, 
                2003, respectively.
    ``(f) Offsets.--Notwithstanding any other provision of this 
section, any amount otherwise payable under subsection (d) to a 
manufacturer in calendar year 2001 and, where applicable, in calendar 
years 2002 and 2003, shall be reduced by the amount of any payment 
received by that manufacturer under this section before the enactment 
of the Wool Manufacturer Payment Clarification and Technical 
Corrections Act.
    ``(g) Definition.--For purposes of this section, the manufacturer 
is the party that owns--
            ``(1) imported worsted wool fabric, of the kind described 
        in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff 
        Schedule of the United States, at the time the fabric is cut 
        and sewn in the United States into men's or boys' suits, suit-
        type jackets, or trousers;
            ``(2) imported wool yarn, of the kind described in heading 
        9902.51.13 of such Schedule, at the time the yarn is processed 
        in the United States into worsted wool fabric; or
            ``(3) imported wool fiber or wool top, of the kind 
        described in heading 9902.51.14 of such Schedule, at the time 
        the wool fiber or wool top is processed in the United States 
        into wool yarn.''.
            (2) Funding.--There is authorized to be appropriated and is 
        appropriated, out of amounts in the General Fund of the 
        Treasury not otherwise appropriated, $36,251,000 to carry out 
        the amendments made by paragraph (1).

SEC. 202. CEILING FANS.

    (a) In General.--Notwithstanding any other provision of law, 
ceiling fans classified under subheading 8414.51.00 of the Harmonized 
Tariff Schedule of the United States imported from Thailand shall enter 
duty-free and without any quantitative limitations, if duty-free 
treatment under title V of the Trade Act of 1974 (19 U.S.C. 2461 et 
seq.) would have applied to such entry had the competitive need 
limitation been waived under section 503(d) of such Act.
    (b) Applicability.--The provisions of this section shall apply to 
ceiling fans described in subsection (a) that are entered, or withdrawn 
from warehouse for consumption--
            (1) on or after the date that is 15 days after the date of 
        enactment of this Act; and
            (2) before July 30, 2002.

SEC. 203. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN 
              NUCLEAR FACILITIES.

    (a) In General.--Subheading 9902.84.02 of the Harmonized Tariff 
Schedule of the United States is amended--
            (1) by striking ``4.9%'' and inserting ``Free''; and
            (2) by striking ``12/31/2003'' and inserting ``12/31/
        2006''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to goods entered, or withdrawn from warehouse for consumption, on 
or after January 1, 2002.




                                                       Calendar No. 295

107th CONGRESS

  1st Session

                               H. R. 3009

                          [Report No. 107-126]

_______________________________________________________________________

                                 AN ACT

 To extend the Andean Trade Preference Act, to grant additional trade 
            benefits under that Act, and for other purposes.

_______________________________________________________________________

                           December 14, 2001

                       Reported with an amendment