[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 886 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 886

    To extend certain trade preferences to certain least-developed 
                   countries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 17, 2005

Mr. Kolbe (for himself and Mr. Crowley) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To extend certain trade preferences to certain least-developed 
                   countries, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tariff Relief Assistance for 
Developing Economies Act of 2005'' or as the ``TRADE Act of 2005''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) It is in the mutual interest of the United States and 
        least developed countries to promote stable and sustainable 
        economic growth and development.
            (2) Increased trade and investment are powerful tools 
        countries can use to reduce poverty and raise living standards.
            (3) Openness to trade boosts economic growth.
            (4) Twenty-five percent of the world's population survives 
        on less than one dollar per day.
            (5) Unemployment rates in least developed countries are 
        extremely high, including rates in some countries of up to 70 
        percent.
            (6) Trade and investment lead to employment opportunities 
        and can help alleviate poverty.
            (7) Least developed countries have a particular challenge 
        in meeting the economic requirements and competitiveness of 
        globalization and international markets.
            (8) The United States has recognized the importance of 
        these challenges and the benefits of trade to least developed 
        countries by enacting the Generalized System of Preferences and 
        subsequent benefits for developing countries in the Caribbean, 
        Andean, and sub-Saharan African regions of the world.
            (9) The challenges of the global trading environment for 
        least developed countries are even greater given the expiration 
        of the Multi-Fiber Arrangement in 2005, and certain least 
        developed countries, including Bangladesh, Cambodia, and Nepal, 
        are particularly vulnerable to the changes that will result 
        from the expiration of that Arrangement.
            (10) Responding to the needs of least developed countries 
        would be consistent with other trade objectives of the United 
        States, including encouraging forward progress on the WTO Doha 
        Development Round.
            (11) Enhanced trade with the Muslim least developed 
        countries, including Yemen, Afghanistan, and Bangladesh, would 
        be consistent with other objectives of the United States of 
        encouraging strong private sectors and individual economic 
        empowerment in those countries.
            (12) Offering the least developed countries enhanced trade 
        preferences will encourage both higher levels of trade and 
        direct investment in support of positive economic and political 
        developments throughout the region and the world.
            (13) Encouraging the reciprocal reduction of trade and 
        investment barriers will enhance the benefits of trade and 
        investment as well as enhance commercial and political ties 
        between the United States and the beneficiary countries.
            (14) Economic opportunity and engagement in the global 
        trading system, together with support for democratic 
        institutions and a respect for human rights, are mutually 
        reinforcing objectives and key elements of a policy to confront 
        and defeat global terrorism.
            (15) A powerful earthquake and tsunami struck in the Indian 
        Ocean on December 26, 2004.
            (16) The destruction caused by the tsunami in Sri Lanka 
        caused the death of more than 30,000 people and left physical 
        damage equal to approximately 6.5 percent of the Sri Lankan 
        economy.
            (17) The effects of lost businesses and reconstruction 
        costs due to the tsunami damage will lead to a drop in the 
        economic growth of Sri Lanka.
            (18) Senate Resolution 4 of the 109th Congress, agreed to 
        unanimously on January 4, 2005, expressed the support of the 
        Senate for the long-term commitment of the United States to 
        provide financial aid and other forms of assistance to the 
        countries and peoples of the region affected by the earthquake 
        and the tsunami.
            (19) Duty preferences given to imports into the United 
        States of products of Sri Lanka will help Sri Lanka rebuild and 
        overcome the economic destruction caused by the tsunami.

SEC. 3. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIREMENTS.

    (a) Authority to Designate.--
            (1) In general.--Notwithstanding any other provision of 
        law, the President is authorized to designate a country listed 
        under subsection (b) as a TRADE Act of 2005 beneficiary country 
        eligible for benefits described in section 4--
                    (A) if the President determines that the country 
                meets the requirements set forth in section 104 of the 
                African Growth and Opportunity Act (19 U.S.C. 3703); 
                and
                    (B) subject to the authority granted to the 
                President under subsections (a), (d), and (e) of 
                section 502 of the Trade Act of 1974 (19 U.S. C. 2462 
                (a), (d), and (e)), if the country otherwise meets the 
                eligibility criteria set forth in section 502 of that 
                Act.
            (2) Application of section 104.--Section 104 of the African 
        Growth and Opportunity Act shall be applied for purposes of 
        paragraph (1) by substituting ``TRADE Act of 2005 beneficiary 
        country'' for ``beneficiary sub-Saharan African country'' each 
        place that term appears.
    (b) Countries Eligible for Designation.--
            (1) In general.--The countries eligible for designation 
        under subsection (a) are the following or their successor 
        political entities:
                    (A) Afghanistan.
                    (B) Bangladesh.
                    (C) Bhutan.
                    (D) Cambodia.
                    (E) Kiribati.
                    (F) Lao People's Democratic Republic.
                    (G) Maldives.
                    (H) Nepal.
                    (I) Samoa.
                    (J) Solomon Islands.
                    (K) Timor-Leste (East Timor).
                    (L) Tuvalu.
                    (M) Vanuatu.
                    (N) Yemen.
            (2) Sri lanka economic emergency support.--The President 
        may also designate Sri Lanka as a TRADE Act of 2005 beneficiary 
        country eligible for benefits described in section 4.

SEC. 4. TRADE ENHANCEMENT.

    (a) Preferential Tariff Treatment for Certain Articles.--
            (1) In general.--The President may provide duty-free 
        treatment for any article described in section 503(b)(1) (B) 
        through (G) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1)(B) 
        through (G)) that is the growth, product, or manufacture of a 
        TRADE Act of 2005 beneficiary country if, after receiving the 
        advice of the International Trade Commission in accordance with 
        section 503(e) of the Trade Act of 1974, the President 
        determines that such article is not import-sensitive in the 
        context of imports from TRADE Act of 2005 beneficiary 
        countries.
            (2) Rules of origin.--The duty-free treatment provided 
        under paragraph (1) shall apply to any article described in 
        that paragraph that meets the requirements of section 503(a)(2) 
        of the Trade Act of 1974, except that--
                    (A) if the cost or value of materials produced in 
                the customs territory of the United States is included 
                with respect to that article, an amount not to exceed 
                15 percent of the appraised value of the article at the 
                time it is entered that is attributed to such United 
                States cost or value may be applied toward determining 
                the percentage referred to in subparagraph (A) of 
                section 503(a)(2) of the Trade Act of 1974; and
                    (B) the cost or value of the materials included 
                with respect to that article that are produced in one 
                or more TRADE Act of 2005 beneficiary countries or 
                former TRADE Act of 2005 beneficiary countries shall be 
                applied in determining such percentage.
    (b) Textile and Apparel Articles.--
            (1) Preferential treatment.--Textile and apparel articles 
        described in paragraphs (2), (3), and (4) that are imported 
        directly into the customs territory of the United States from a 
        TRADE Act of 2005 beneficiary country shall enter the United 
        States free of duty and free of any quantitative limitations in 
        accordance with the requirements of such paragraphs, if the 
        country has satisfied the requirements set forth in section 113 
        of the African Growth and Opportunity Act (19 U.S.C. 3722). In 
        applying such section 113--
                    (A) ``TRADE Act of 2005 beneficiary country'' and 
                ``TRADE Act of 2005 beneficiary countries'' shall be 
                substituted for ``beneficiary sub-Saharan African 
                country'' and ``beneficiary sub-Saharan African 
                countries'', respectively, each place such terms 
                appear;
                    (B) ``TRADE Act of 2005 beneficiary countries'' 
                shall be substituted for ``countries in sub-Saharan 
                Africa'' in section 113(b)(5); and
                    (C) any reference to preferential treatment under 
                ``section 112(a)'', ``section 112'', or ``this Act'' 
                shall be deemed to refer to preferential treatment 
                under this subsection.
            (2) Apparel articles assembled in trade act of 2005 
        beneficiary countries.--The preferential treatment under 
        paragraph (1) shall apply to apparel articles described in 
        paragraphs (1) and (2) of subsection (b) of section 112 of the 
        African Growth and Opportunity Act (19 U.S.C. 3721(b)(1) and 
        (2)), except that such paragraphs shall be applied for purposes 
        of this paragraph by substituting ``TRADE Act of 2005 
        beneficiary country'' and ``TRADE Act of 2005 beneficiary 
        countries'' for ``beneficiary sub-Saharan African country'' and 
        ``beneficiary sub-Saharan African countries'', respectively, 
        each place such terms appear.
            (3) Apparel articles assembled from regional and other 
        fabric.--The preferential treatment under paragraph (1) shall 
        apply to apparel articles that are wholly assembled in one or 
        more TRADE Act of 2005 beneficiary countries or former TRADE 
        Act of 2005 beneficiary countries, or both, from fabric wholly 
        formed in one or more TRADE Act of 2005 beneficiary countries 
        or former TRADE Act of 2005 beneficiary countries, or both, 
        from yarn originating either in the United States or one or 
        more TRADE Act of 2005 beneficiary countries or former TRADE 
        Act of 2005 beneficiary countries, or both (including fabrics 
        not formed from yarns, if such fabrics are classifiable under 
        heading 5602 or 5603 of the Harmonized Tariff Schedule of the 
        United States and are wholly formed and cut in the United 
        States, one or more TRADE Act of 2005 beneficiary countries or 
        former TRADE Act of 2005 beneficiary countries, or any 
        combination thereof), whether or not the apparel articles are 
        also made from any of the fabrics, fabric components formed, or 
        components knit-to-shape to which paragraph (1) of this 
        subsection applies (unless the apparel articles are made 
        exclusively from any of the fabrics, fabric components formed, 
        or components knit-to-shape to which paragraph (1) of this 
        subsection applies), subject to the following:
                    (A) Limitations on benefits.--
                            (i) In general.--Preferential treatment 
                        under this paragraph shall be extended in the 
                        1-year period beginning January 1, 2005, and in 
                        each of the succeeding 10 1-year periods, to 
                        imports of apparel articles described in this 
                        subparagraph 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.
                            (ii) Applicable percentage.--For purposes 
                        of this subparagraph, the term ``applicable 
                        percentage'' means 11 percent for the 1-year 
                        period beginning January 1, 2005, increased in 
                        each of the 10 succeeding 1-year periods by 
                        equal increments, so that for the period 
                        beginning January 1, 2014, the applicable 
                        percentage does not exceed 14 percent.
                    (B) Special rule.--
                            (i) In general.--Subject to subparagraph 
                        (A), preferential treatment described in this 
                        paragraph shall be extended through December 
                        31, 2011, to apparel articles wholly assembled 
                        in one or more TRADE Act of 2005 beneficiary 
                        countries or former TRADE Act of 2005 
                        beneficiary countries, or both, regardless of 
                        the country of origin of the yarn or fabric 
                        used to make such articles.
                            (ii) Country limitations.--
                                    (I) Small suppliers.--If during the 
                                preceding 1-year period beginning on 
                                January 1 for which data are available, 
                                imports into the United States of 
                                apparel articles from a TRADE Act of 
                                2005 beneficiary country are less than 
                                1 percent of the aggregate square meter 
                                equivalents of all apparel articles 
                                imported into the United States during 
                                such period, then imports under this 
                                subparagraph from that country may 
                                increase to an amount that is equal to 
                                not more than 1.5 percent of the 
                                aggregate square meter equivalents of 
                                all apparel articles imported into the 
                                United States during such period.
                                    (II) Other suppliers.--If during 
                                the preceding 1-year period beginning 
                                on January 1 for which data are 
                                available, imports from a TRADE Act of 
                                2005 beneficiary country are at least 1 
                                percent (or, in the case of a country 
                                to which subclause (I) applies, 1.5 
                                percent) of the aggregate square meter 
                                equivalents of all apparel articles 
                                imported into the United States during 
                                such period, imports under this clause 
                                from that country may increase, during 
                                each subsequent 12-month period, by an 
                                amount that is equal to not more than 
                                one-third of 1 percent of the aggregate 
                                square meter equivalents of all apparel 
                                articles imported into the United 
                                States.
                                    (III) Aggregate country limit.--In 
                                no case may the aggregate quantity of 
                                textile and apparel articles imported 
                                into the United States under this 
                                subparagraph exceed the applicable 
                                percentage set forth in subparagraph 
                                (A).
                    (C) Surge mechanism.--Subparagraph (C) of section 
                112(b)(3) of the African Growth and Opportunity Act (19 
                U.S.C. 3721(b)(3)) shall apply with respect to the 
                preferential treatment extended under this paragraph to 
                a TRADE Act of 2005 beneficiary country, except that, 
                in applying such paragraph--
                            (i) ``TRADE Act of 2005 country'' shall be 
                        substituted for ``sub-Saharan African 
                        country''; and
                            (ii) references to ``this paragraph'' shall 
                        be deemed to refer to subparagraphs (A) and (B) 
                        of this paragraph.
            (4) Other provisions.--The preferential treatment described 
        in paragraph (1) shall apply to articles described in 
        paragraphs (4), (5), (6), and (7) of section 112(b) of the 
        African Growth and Opportunity Act (19 U.S.C. 3721(b)(4), (5), 
        (6), and (7)), except that--
                    (A) such paragraphs shall be applied by 
                substituting ``TRADE Act of 2005 beneficiary country'' 
                for ``beneficiary sub-Saharan African country'' and 
                ``TRADE Act of 2005 beneficiary countries'' for 
                ``beneficiary sub-Saharan African countries'' each 
                place such terms appear; and
                    (B) in applying paragraph (6)(B) of such section--
                            (i) the references to ``African'' prints 
                        and ``African'' market or markets shall be 
                        deemed to refer to prints and the market of the 
                        TRADE Act of 2005 beneficiary country 
                        concerned; and
                            (ii) the reference to ``Africa'' shall be 
                        deemed to refer to the TRADE Act of 2005 
                        beneficiary country concerned.
            (5) Special rules.--Subsection (d) of section 112 of the 
        African Growth and Opportunity Act (19 U.S.C. 3721(d)) shall 
        apply to articles of TRADE Act of 2005 beneficiary countries to 
        the same extent that such subsection applies to articles of 
        beneficiary sub-Saharan African countries, except that, in 
        applying such subsection--
                    (A) references to preferential treatment ``under 
                this section'' shall be deemed to refer to preferential 
                treatment under this subsection;
                    (B) the reference in paragraph (1)(C) of such 
                subsection (d) to ``an article described in subsection 
                (b)(2)'' shall be deemed to refer to such an article as 
                applied under paragraph (2) of this subsection; and
                    (C) the reference in paragraph (3) of such 
                subsection (d) to the ``requirements set forth in 
                subsection (b)'' shall be deemed to refer to the 
                requirements under this subsection.

SEC. 5. REPORTING REQUIREMENT.

    The President shall monitor, review, and report to Congress, not 
later than 1 year after the date of the enactment of this Act, and 
annually thereafter, on the implementation of this Act and on the trade 
and investment policy of the United States with respect to the TRADE 
Act of 2005 beneficiary countries.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) TRADE act of 2005 beneficiary country.--The term 
        ``TRADE Act of 2005 beneficiary country'' means a country 
        listed in subsection (b) of section 3 that the President has 
        determined is eligible for preferential treatment under this 
        Act.
            (2) Former trade act of 2005 beneficiary country.--The term 
        ``former TRADE Act of 2005 beneficiary country'' means a 
        country that, after being designated as a TRADE Act of 2005 
        beneficiary country under this Act, ceased to be designated as 
        such a country by reason of its entering into a free trade 
        agreement with the United States.

SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT.

    No duty-free treatment or other preferential treatment extended 
under this Act to a TRADE Act of 2005 beneficiary country shall remain 
in effect after December 31, 2014.

SEC. 8. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this Act applies to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the date of the enactment of this Act.
    (b) Retroactive Application.--Notwithstanding section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law, upon 
proper request filed with the Bureau of Customs and Border Protection 
before the 90th day after the date of the enactment of this Act, any 
entry, or withdrawal from warehouse for consumption, of any good--
            (1) that was made on or after January 1, 2005, and before 
        the date of the enactment of this Act, and
            (2) with respect to which there would have been no duty if 
        such entry or withdrawal had been made on such date of 
        enactment,
shall be liquidated or reliquidated as if such entry or withdrawal had 
occurred on such date of enactment.
                                 <all>