[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3344 Introduced in Senate (IS)]


109th CONGRESS
  2d Session
                                S. 3344

 To provide temporary duty reductions for certain cotton fabrics, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2006

  Mr. Specter introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide temporary duty reductions for certain cotton fabrics, 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. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON SHIRTING 
              FABRIC.

    (a) Certain Cotton Shirting Fabrics.--
            (1) In general.--Subchapter II of chapter 99 of the 
        Harmonized Tariff Schedule of the United States is amended by 
        inserting in numerical sequence the following new headings:

      

``      9902.52.08       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.21, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.09       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.22, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.10       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.29, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.11       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.31, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.12       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.32, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.13       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.39, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.14       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.41, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.15       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.42, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.16       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.49, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.17       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.51, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.18       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.52, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.19       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, of a type                                                 31/2009
                          described in
                          subheading
                          5208.59, other
                          than fabrics
                          provided for in
                          headings
                          9902.52.20 through
                          9902.52.31,
                          certified by the
                          importer to be
                          suitable for use
                          in men's and boys'
                          shirts, the
                          foregoing imported
                          by or for the
                          benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S.
                          Notes 18 and 19 of
                          this subchapter...
        9902.52.20       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.21, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.21       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.22, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.22       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.29, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.23       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.31, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.24       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.32, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.25       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.39, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.26       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.41, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.27       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.42, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.28       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.49, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.29       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.51, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.30       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009
                          described in
                          subheading
                          5208.52, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........
        9902.52.31       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton of a type                                                  31/2009           ''
                          described in                                                                         .
                          subheading
                          5208.59, of
                          average yarn
                          number exceeding
                          135 metric,
                          certified by the
                          importer to be
                          wholly of pima
                          cotton grown in
                          the United States
                          and to be suitable
                          for use in men's
                          and boys' shirts,
                          the foregoing
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts under the
                          terms of U.S. Note
                          18 of this
                          subchapter........

            (2) Definitions and limitation on quantity of imports.--The 
        U.S. Notes to subchapter II of chapter 99 of the Harmonized 
        Tariff Schedule of the United States are amended by adding at 
        the end the following:
``18. For purposes of headings 9902.52.08 through 9902.52.31, the term 
``manufacturer'' means a person or entity that cuts and sews men's and 
boys' shirts in the United States.
``19. The aggregate quantity of fabrics entered under headings 
9902.52.08 through 9902.52.19 from January 1 to December 31 of each 
year, inclusive, by or on behalf of each manufacturer of men's and 
boys' shirts shall be limited to 85 percent of the total square meter 
equivalents of all imported woven fabrics of cotton containing 85 
percent or more by weight of cotton used by such manufacturer in 
cutting and sewing men's and boys' cotton shirts in the United States 
and purchased by such manufacturer during calendar year 2000.''.
    (b) Determination of Tariff-Rate Quotas.--
            (1) Authority to issue licenses and license use.--In order 
        to implement the limitation on the quantity of cotton woven 
        fabrics that may be entered under headings 9902.52.08 through 
        9902.52.19 of the Harmonized Tariff Schedule of the United 
        States, as required by U.S. Note 19 to subchapter II of chapter 
        99 of such Schedule, the Secretary of Commerce shall issue 
        licenses to eligible manufacturers under such headings 
        9902.52.08 through 9902.52.19, specifying the restrictions 
        under each such license on the quantity of cotton woven fabrics 
        that may be entered each year by or on behalf of the 
        manufacturer. A licensee may assign the authority (in whole or 
        in part) under the license to import fabric under headings 
        9902.52.08 through 9902.52.19 of such Schedule.
            (2) Licenses under u.s. note 19.--For purposes of U.S. Note 
        19 to subchapter II of chapter 99 of the Harmonized Tariff 
        Schedule of the United States, the Secretary of Commerce shall 
        issue a license to a manufacturer within 60 days after the 
        manufacturer files with the Secretary of Commerce an 
        application containing a notarized affidavit from an officer of 
        the manufacturer that the manufacturer is eligible to receive a 
        license and stating the quantity of imported woven fabrics of 
        cotton containing 85 percent or more by weight of cotton 
        purchased during calendar year 2000 for use in the cutting and 
        sewing men's and boys' shirts in the United States.
            (3) Affidavits.--For purposes of an affidavit described in 
        this subsection, the date of purchase shall be--
                    (A) the invoice date if the manufacturer is not the 
                importer of record; and
                    (B) the date of entry if the manufacturer is the 
                importer of record.

SEC. 2. COTTON TRUST FUND.

    (a) Establishment of Trust Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Pima Cotton 
        Trust Fund'' (in this section referred to as the ``Trust 
        Fund''), consisting of such amounts as may be transferred to 
        the Trust Fund under paragraph (2).
            (2) Transfer of amounts.--
                    (A) In general.--Beginning October 1, 2006, the 
                Secretary of the Treasury shall transfer to the Trust 
                Fund, from the general fund of the Treasury, amounts 
                determined by the Secretary of the Treasury to be 
                equivalent to the amounts received in the general fund 
                that are attributable to duties received since January 
                1, 1994, on articles under subheadings 5208.21.60, 
                5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50, 
                5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 
                5208.51.80, 5208.52.50, and 5208.59.80 of the 
                Harmonized Tariff Schedule of the United States, 
                subject to the limitation in subparagraph (B).
                    (B) Limitation.--The Secretary may not transfer 
                more than $16,000,000 to the Trust fund in any fiscal 
                year, and may not transfer any amount beginning on or 
                after October 1, 2008.
            (3) Distribution of funds.--From amounts in the Trust Fund, 
        the Commissioner of the Bureau of Customs and Border Protection 
        shall make the following payments annually beginning in fiscal 
        year 2007:
                    (A) 25 percent of the amounts in the Trust Fund 
                shall be paid annually to a nationally recognized 
                association established for the promotion of pima 
                cotton grown in the United States for the use in 
                textile and apparel goods.
                    (B) 25 percent of the amounts in the Trust Fund 
                shall be paid annually to yarn spinners of pima cotton 
                grown in the United States, and shall be allocated to 
                each spinner in an amount that bears the same ratio 
                as--
                            (i) the spinner's production of ring spun 
                        cotton yarns, measuring less than 83.33 decitex 
                        (exceeding 120 metric number) from pima cotton 
                        grown in the United States in single and plied 
                        form during calendar year 2002 (as evidenced by 
                        an affidavit provided by the spinner) bears 
                        to--
                            (ii) the production of the yarns described 
                        in clause (i) during calendar year 2002 for all 
                        spinners who qualify under this subparagraph.
                    (C) 50 percent of the amounts in the Trust Fund 
                shall be paid annually to those manufacturers who cut 
                and sew cotton shirts in the United States who certify 
                that they used imported cotton fabric during the period 
                January 1, 1998, through July 1, 2003, and shall be 
                allocated to each such manufacturer in an amount that 
                bears the same ratio as--
                            (i) the dollar value (excluding duty, 
                        shipping, and related costs) of imported woven 
                        cotton shirting fabric of 80s or higher count 
                        and 2-ply in warp purchased by the manufacturer 
                        during calendar year 2002 (as evidenced by an 
                        affidavit from the manufacturer that meets the 
                        requirements of paragraph (4)) used in the 
                        manufacturing of men's and boys' cotton shirts, 
                        bears to--
                            (ii) the dollar value (excluding duty, 
                        shipping, and related costs) of the fabric 
                        described in clause (i) purchased during 
                        calendar year 2002 by all manufacturers who 
                        qualify under this subparagraph.
            (4) Affidavit of shirting manufacturers.--The affidavit 
        required by paragraph (3)(C) is a notarized affidavit provided 
        by an officer of the manufacturer of men's and boys' shirts 
        concerned that affirms--
                    (A) that the manufacturer used imported cotton 
                fabric during the period January 1, 1998, through July 
                1, 2003, to cut and sew men's and boys' woven cotton 
                shirts in the United States;
                    (B) the dollar value of imported woven cotton 
                shirting fabric of 80s or higher count and 2-ply in 
                warp purchased during calendar year 2002;
                    (C) that the manufacturer maintains invoices along 
                with other supporting documentation (such as price 
                lists and other technical descriptions of the fabric 
                qualities) showing the dollar value of such fabric 
                purchased, the date of purchase, and evidencing the 
                fabric as woven cotton fabric of 80s or higher count 
                and 2-ply in warp; and
                    (D) that the fabric was suitable for use in the 
                manufacturing of men's and boys' cotton shirts.
            (5) Date of purchase.--For purposes of the affidavit under 
        paragraph (4), the date of purchase shall be the invoice date, 
        and the dollar value shall be determined excluding duty, 
        shipping, and related costs.
            (6) Affidavit of yarn spinners.--The affidavit required by 
        paragraph (3)(B) is a notarized affidavit provided by an 
        officer of the producer of ring spun yarns that affirms--
                    (A) that the producer used pima cotton grown in the 
                United States during the period January 1, 2002, 
                through December 31, 2002, to produce ring spun cotton 
                yarns, measuring less than 83.33 decitex (exceeding 120 
                metric number), in single and plied form during 2002;
                    (B) the quantity, measured in pounds, of ring spun 
                cotton yarns, measuring less than 83.33 decitex 
                (exceeding 120 metric number), in single and plied form 
                during calendar year 2002; and
                    (C) that the producer maintains supporting 
                documentation showing the quantity of such yarns 
                produced, and evidencing the yarns as ring spun cotton 
                yarns, measuring less than 83.33 decitex (exceeding 120 
                metric number), in single and plied form during 
                calendar year 2002.
            (7) No appeal.--Any amount paid by the Commissioner of the 
        Bureau of Customs and Border Protection under this section 
        shall be final and not subject to appeal or protest.
                                 <all>