[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 738 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 738

            To provide relief for the cotton shirt industry.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 6, 2005

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

_______________________________________________________________________

                                 A BILL


 
            To provide relief for the cotton shirt industry.

    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 shall be known as the ``Cotton Shirt Industry Tariff 
Relief and Technical Corrections Act''.

SEC. 2. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON SHIRTING FABRIC.

    (a) Certain Cotton Shirting Fabrics.--
            (1) In general.--Subchapter II of chapter 99 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, all the                                                   31/2006
                          foregoing
                          certified by the
                          importer as
                          suitable for use
                          in making men's
                          and boys' shirts
                          and as imported by
                          or for the benefit
                          of a manufacturer
                          of men's and boys'
                          shirts, subject to
                          the quantity
                          limitations
                          contained in
                          general note 18 of
                          this subchapter
                          (provided for in
                          section
                          204(b)(3)(B)(i)(II
                          I) of the Andean
                          Trade Preference
                          Act (19 U.S.C.
                          3203))............
        9902.52.09       Woven fabrics of     Free       No change        No change        On or before 12/
                          cotton, all the                                                   31/2005           ''
                          foregoing                                                                            .
                          certified by the
                          importer as
                          containing 100
                          percent pima
                          cotton grown in
                          the United States,
                          as suitable for
                          use in making
                          men's and boys'
                          shirts, and as
                          imported by or for
                          the benefit of a
                          manufacturer of
                          men's and boys'
                          shirts (provided
                          for in section
                          204(b)(3)(B)(i)(II
                          I) of the Andean
                          Trade Preference
                          Act (19 U.S.C.
                          3203))............

            (2) Definitions and limitation on quantity of imports.--The 
        U.S. Notes to chapter 99 are amended by adding at the end the 
        following:
``18. For purposes of subheadings 9902.52.08 and 9902.52.09, the term 
`making' means cutting and sewing in the United States, and the term 
`manufacturer' means a person or entity that cuts and sews in the 
United States.
``19. The aggregate quantity of cotton fabrics entered under subheading 
9902.52.08 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 cotton woven fabric 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.--To 
        implement the limitation on the quantity of imports of cotton 
        woven fabrics under subheading 9902.52.08 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, for the 
        entry, or withdrawal from warehouse for consumption, the 
        Secretary of Commerce shall issue licenses to eligible 
        manufacturers with respect to items entered under subheading 
        9902.52.08 specifying the annual quantity restrictions under 
        each such license. A licensee may assign the authority (in 
        whole or in part) to import fabric under subheading 9902.52.08 
        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 within 60 days of 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 cotton woven fabric purchased during 
        calendar year 2000 for use in the cutting and sewing of 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. 3. PIMA COTTON TRUST FUND.

    (a) Establishment of Trust Fund.--
            (1) In general.--There is hereby established within the 
        Treasury of the United States a trust fund to be known as the 
        ``Pima Cotton Trust Fund'' (hereinafter in this section 
        referred to 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, 2005, the 
                Secretary of the Treasury shall transfer to the Trust 
                Fund out of the general fund of the Treasury of the 
                United States amounts determined by the Secretary of 
                the Treasury to be equivalent to the amounts received 
                in the general fund that are attributable to the duty 
                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, 
                5208.59.80, 5210.21.80, and 5210.31.80 of the 
                Harmonized Tariff Schedule of the United States, 
                subject to the limitation in subparagraph (B).
                    (B) Limitation.--The Secretary shall not transfer 
                more than $16,000,000 to the Trust fund in any fiscal 
                year, and shall not transfer any amount beginning on or 
                after October 1, 2007.
    (b) Distribution of Funds.--
            (1) In general.--From amounts in the Trust Fund, the 
        Commissioner of Customs and Border Protection shall make the 
        following payments annually beginning in fiscal year 2005:
                    (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 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 such 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 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 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 (2)) 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.
            (2) Affidavit of shirting manufacturers.--The affidavit 
        required by paragraph (1)(C) is a notarized affidavit of an 
        officer of the manufacturer of men's and boys' shirts 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.
            (3) Date of purchase.--For purposes of the affidavit 
        required by paragraph (2), the date of purchase shall be the 
        invoice date, and the dollar value shall be determined 
        excluding duty, shipping, and related costs.
            (4) Affidavit of yarn spinners.--The affidavit required by 
        paragraph (1)(B), is a notarized affidavit of an officer of a 
        company that produces 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.
            (5) No appeal.--Any amount paid by the Commissioner of 
        Customs and Border Protection under this section shall be final 
        and not subject to appeal or protest.
                                 <all>