1.This Act may be cited as the
Save Our Industries Act of
2011
or the SAVE
Act
.
2.
(a)Congress
finds the following:
(1)The United States
and the Republic of the Philippines (in this Act referred to as the
Philippines
), a former colony, share deep historical and
cultural ties. The Philippines holds enduring political and security
significance to the United States. The 2 countries have partnered very
successfully in combating terrorism in Southeast Asia.
(2)The United States
and the Philippines maintain a fair trading relationship that should be
expanded to the mutual benefit of both countries. In 2010, United States
exports to the Philippines were valued at $7,375,000,000, and United States
imports from the Philippines were valued at $7,960,000,000.
(3)United States
textile exports to the Philippines were valued at just over $48,000,000 in
2010, consisting mostly of industrial, specialty, broadwoven, and nonwoven
fabrics. The potential for export growth in this area can sustain and create
thousands of jobs.
(4)The Philippines’
textile and apparel industries, like that of their counterparts in the United
States, share the same challenges and risks stemming from the end of the
textile and apparel quota system and from the end of United States safe-guards
that continued to control apparel imports from the People’s Republic of China
until January 1, 2009.
(5)The United States
apparel fabrics industry is heavily dependent on sewing outside the United
States, and, for the first time, United States textile manufacturers would have
a program that utilizes sewing done in an Asian country. In contrast, most
sewing of United States fabric occurs in the Western Hemisphere, with about
two-thirds of United States fabric exports presently going to countries that
are parties to the North American Free Trade Agreement and the Dominican
Republic-Central America-United States Free Trade Agreement. Increased demand
for United States fabric in Asia will increase opportunities for the United
States industry.
(6)Apparel producers
in the Western Hemisphere are excellent at making basic garments such as
T-shirts and standard 5-pocket jeans. However, the needle capability does not
exist to make high fashion, more sophisticated garments such as embroidered
T-shirts and fashion jeans with embellishments. Such apparel manufacturing is
done almost exclusively in Asia.
(7)A
program that provides preferential duty treatment for certain apparel articles
of the Philippines will provide a strong incentive for Philippine apparel
manufacturers to use United States fabrics, which will open new opportunities
for the United States textile industry and increase opportunities for United
States yarn manufacturers. At the same time, the United States would be
provided a more diverse range of sourcing opportunities.
(b)The
purposes of this Act are—
(1)to encourage
higher levels of trade in textiles and apparel between the United States and
the Philippines and enhance the commercial well-being of their respective
industries in times of global economic hardship;
(2)to enhance and
broaden the economic, security, and political ties between the United States
and the Philippines;
(3)to stimulate
economic activity and development throughout the Philippines, including regions
such as Manila and Mindanao; and
(4)to provide a
stepping stone to an eventual free trade agreement between the United States
and the Philippines, either bilaterally or as part of a regional
agreement.
3.In this Act:
(1)Classification
under the HTSThe term classification under the HTS
means, with respect to an article, the 6-digit subheading or 10-digit
statistical reporting number under which the article is classified in the
HTS.
(2)The term “dobby woven fabric” means fabric, other than
jacquard fabric, woven with the use of a dobby attachment that raises or lowers
the warp threads during the weaving process to create patterns including,
stripes, and checks and similar designs.
(3)The
term entered means entered, or withdrawn from warehouse for
consumption, in the customs territory of the United States.
(4)The
term HTS means the Harmonized Tariff Schedule of the United
States.
(5)An
article is knit-to shape
if 50 percent or more of the exterior
surface area of the article is formed by major parts that have been knitted or
crocheted directly to the shape used in the article, with no consideration
being given to patch pockets, appliqués, or the like. Minor cutting, trimming,
or sewing of those major parts shall not affect the determination of whether an
article is knit-to-shape
.
(6)An article is wholly assembled
in the
Philippines or the United States if—
(A)all components of
the article pre-existed in essentially the same condition as the components
exist in the finished article and the components were combined to form the
finished article in the Philippines or the United States; and
(B)the article is
comprised of at least 2 components.
(7)A yarn is wholly formed in the United
States
if all of the yarn forming and finishing operations, starting
with the extrusion of filaments, strips, film, or sheet, and including slitting
a film or sheet into strip, or the spinning of all fibers into yarn, or both,
and ending with a finished yarn or plied yarn, takes place in the United
States.
4.
(a)For purposes of this section, an eligible apparel article
is any one of the following:
(1)Men’s and boys’
cotton shirts, T-shirts and tank tops (other than underwear T-shirts and tank
tops), pullovers, sweatshirts, tops, and similar articles classifiable under
subheading 6105.10, 6105.90, 6109.10, 6110.20, 6110.90, 6112.11, or 6114.20 of
the HTS.
(2)Women’s and girls’
cotton shirts, blouses, T-shirts and tank tops (other than underwear T-shirts
and tank tops), pullovers, sweatshirts, tops, and similar articles classifiable
under subheading 6106.10, 6106.90, 6109.10, 6110.20, 6110.90, 6112.11, 6114.20,
or 6117.90 of the HTS.
(3)Men’s and boys’
cotton trousers, breeches, and shorts classifiable under subheading 6103.10,
6103.42, 6103.49, 6112.11, 6113.00, 6203.19, 6203.42, 6203.49, 6210.40,
6211.20, 6211.32 of the HTS.
(4)Women’s and girls’
cotton trousers, breeches, and shorts classifiable under subheading 6104.19,
6104.62, 6104.69, 6112.11, 6113.00, 6117.90, 6204.12, 6204.19, 6204.62,
6204.69, 6210.50, 6211.20, 6211.42, or 6217.90 of the HTS.
(5)Men’s and boys’
cotton underpants, briefs, underwear-type T-shirts and singlets, thermal
undershirts, other undershirts, and similar articles classifiable under
subheading 6107.11, 6109.10, 6207.11, or 6207.91 of the HTS.
(6)Men’s and boys’
manmade fiber underpants, briefs, underwear-type T-shirts and singlets, thermal
undershirts, other undershirts, and similar articles classifiable under
subheading 6107.12, 6109.90, 6207.19, or 6207.99 of the HTS.
(7)Men’s and boys’
manmade fiber shirts, T-shirts and tank tops (other than underwear T-shirts and
tank tops), pullovers, sweatshirts, tops, and similar articles classifiable
under subheading 6105.20, 6105.90, 6110.30, 6110.90, 6112.12, 6112.19, or
6114.30 of the HTS.
(8)Women’s and girls’
manmade fiber shirts, blouses, T-shirts and tank tops (other than underwear
T-shirts and tank tops), pullovers, sweatshirts, tops, and similar articles
classifiable under subheading 6106.20, 6106.90, 6110.30, 6110.90, 6112.12,
6112.19, 6114.30, or 6117.90 of the HTS.
(9)Men’s and boys’
manmade fiber trousers, breeches, and shorts classifiable under subheading
6103.43, 6103.49, 6112.12, 6112.19, 6112.20, 6113.00, 6203.43, 6203.49,
6210.40, 6211.20, or 6211.33 of the HTS.
(10)Women’s and
girls’ manmade fiber trousers, breeches, and shorts classifiable under
subheading 6104.63, 6104.69, 6112.12, 6112.19, 6112.20, 6113.00, 6117.90,
6204.63, 6204.69, 6210.50, 6211.20, 6211.43, or 6217.90 of the HTS.
(11)Men’s and boys’
manmade fiber shirts classifiable under subheading 6205.30, 6205.90, or 6211.33
of the HTS.
(12)Cotton brassieres
and other body support garments classifiable under subheading 6212.10, 6212.20,
or 6212.30 of the HTS.
(13)Manmade fiber
brassieres and other body support garments classifiable under subheading
6212.10, 6212.20, or 6212.30 of the HTS.
(14)Manmade fiber
swimwear classifiable under subheading 6112.31, 6112.41, 6211.11, or 6211.12 of
the HTS.
(15)Cotton swimwear
classifiable under subheading 6112.39, 6112.49, 6211.11, or 6211.12 of the
HTS.
(16)Men’s and boys’
manmade fiber coats, overcoats, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading 6101.30, 6101.90,
6112.12, 6112.19, 6112.20, or 6113.00 of the HTS.
(17)Women’s and
girls’ manmade fiber coats, overcoats, carcoats, capes, cloaks, anoraks
(including ski-jackets), windbreakers, padded sleeveless jackets with
attachments for sleeves, and similar articles classifiable under subheading
6102.30, 6102.90, 6104.33, 6104.39, 6112.12, 6112.19, 6112.20, 6113.00, or
6117.90 of the HTS.
(18)Gloves, mittens,
and mitts of manmade fibers classifiable under subheading 6116.10, 6116.93,
6116.99, or 6216.00 of the HTS.
(b)Duty-Free
treatment for certain eligible apparel articles
(1)Subject to paragraphs (2) and (3), an eligible apparel
article shall enter the United States free of duty if the article is wholly
assembled in the United States or the Philippines, or both, and if the
component determining the article’s classification under the HTS consists
entirely of—
(A)fabric cut in the
United States or the Philippines, or both, from fabric wholly formed in the
United States from yarns wholly formed in the United States;
(B)components
knit-to-shape in the United States from yarns wholly formed in the United
States; or
(C)any combination of
fabric or components knit-to-shape described in subparagraphs (A) and
(B).
(2)Dyeing,
printing, or finishingAn apparel article described in paragraph
(1) shall be ineligible for duty-free treatment under such paragraph if any
component determining the article’s classification under the HTS comprises any
fabric, fabric component, or component knit-to-shape in the United States that
was dyed, printed, or finished at any place other than in the United
States.
(3)An apparel article described in paragraph (1) shall not
be disqualified from eligibility for duty-free treatment under such paragraph
because it undergoes stone-washing, enzyme-washing, acid-washing,
permapressing, oven baking, bleaching, garment-dyeing, screen printing, or
other similar processes in either the United States or the Philippines.
(c)Knit-to-Shape
apparel articlesA knit-to-shape apparel article shall enter the
United States free of duty if it is wholly assembled in the Philippines and if
the component determining the article’s classification under the HTS consists
entirely of components knit-to-shape in the Philippines from yarns wholly
formed in the United States.
(d)
(1)An article that would otherwise be ineligible for
preferential treatment under this section because the article contains fibers
or yarns not wholly formed in the United States or in the Philippines shall not
be ineligible for such treatment if the total weight of all such fibers or
yarns is not more than 10 percent of the total weight of the article.
(2)Notwithstanding paragraph (1), an article described in
subsection (b) or (c) that contains elastomeric yarns in the component of the
article that determines the article’s classification under the HTS shall be
eligible for duty-free treatment under this section only if such elastomeric
yarns are wholly formed in the United States or the Philippines.
(3)Any apparel article described in subsection (b) or (c)
is an eligible article only if it is imported directly into the United States
from the Philippines.
(e)Single
transformation rulesAny of the following apparel articles that
are cut and wholly assembled, or knit-to-shape, in the Philippines from any
combination of fabrics, fabric components, components knit-to-shape, or yarns
and are imported directly into the United States from the Philippines shall
enter the United States free of duty, without regard to the source of the
fabric, fabric components, components knit-to-shape, or yarns from which the
articles are made:
(1)Except for
brassieres classified in subheading 6212.10 of the HTS, any apparel article
that is of a type listed in chapter rule 3(a), 4(a), or 5(a) for chapter 62 of
the HTS, as such chapter rule is contained in paragraph 9 of section A of the
Annex to Proclamation 8213 of the President of December 20, 2007, (as amended
by Proclamation 8272 of June 30, 2008, or any subsequent proclamation by the
President).
(2)Any article not
described in paragraph (1) that is any of the following:
(A)Baby garments,
clothing accessories, and headwear classifiable under subheading 6111.20,
6111.30, 6111.90, 6209.20, 6209.30, 6209.90, or 6505.90 of the HTS.
(B)Women’s and girls’
cotton coats, over coats, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading 6102.20, 6102.90,
6104.19, 6104.32, 6104.39, 6112.11, 6113.00, 6117.90, 6202.12, 6202.19,
6202.92, 6202.99, 6204.12, 6204.19, 6204.32, 6204.39, 6210.30, 6210.50,
6211.20, 6211.42, or 6217.90 of the HTS.
(C)Cotton dresses
classifiable under subheading 6104.42, 6104.49, 6204.42, or 6204.49 of the
HTS.
(D)Manmade fiber
dresses classifiable under subheading 6104.43, 6104.44, 6104.49, 6204.43,
6204.44, or 6204.49 of the HTS.
(E)Men’s and boys’
cotton shirts classifiable under statistical reporting number 6205.20.1000,
6205.20.2021, 6205.20.2026, 6205.20.2031, 6205.20.2061, 6205.20.2076, 6205.90,
or 6211.32 of the HTS.
(F)Men’s and boys’
cotton shirts not containing dobby woven fabric classifiable under statistical
reporting number 6205.20.2003, 6205.20.2016, 6205.20.2051, 6205.20.2066 of the
HTS.
(G)Manmade fiber
pajamas and sleepwear classifiable under subheading 6107.22, 6107.99, 6108.32,
6207.22, 6207.99, or 6208.22 of the HTS.
(H)Women’s and girls’
wool coats, overcoats, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading 6102.10, 6102.30,
6102.90, 6104.31, 6104.33, 6104.39, 6117.90, 6202.11, 6202.13, 6202.19,
6202.91, 6202.93, 6202.99, 6204.31, 6204.33, 6204.39, 6211.20, 6211.41, or
6117.90 of the HTS.
(I)Women’s and girls’
wool trousers, breeches, and shorts classifiable under subheading 6104.61,
6104.63, 6104.69, 6117.90, 6204.61, 6204.63, 6204.69, 6211.20, 6211.41, or
6217.90 of the HTS.
(J)Women’s and girls’
cotton shirts and blouses classifiable under subheading 6206.10, 6206.30,
6206.90, 6211.42, or 6217.90 of the HTS.
(K)Women’s and girls’
manmade fiber shirts, blouses, shirt-blouses, sleeveless tank styles, and
similar upper body garments classifiable under subheading 6206.10, 6206.40,
6206.90, 6211.43, or 6217.90 of the HTS.
(L)Women’s and girls’
manmade fiber coats, jackets, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading 6202.13, 6202.19,
6202.93, 6202.99, 6204.33, 6204.39, 6210.30, 6210.50, 6211.20, 6211.43, or
6217.90 of the HTS.
(M)Cotton skirts
classifiable under subheading 6104.19, 6104.52, 6104.59, 6204.12, 6204.19,
6204.52, or 6204.59 of the HTS.
(N)Manmade fiber
skirts classifiable under subheading 6104.53, 6104.59, 6204.53, or 6204.59 of
the HTS.
(O)Men’s and boys’
manmade fiber coats, overcoats, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading 6201.13, 6201.19,
6201.93, 6201.99, 6210.20, 6210.40, 6211.20, or 6211.33 of the HTS.
(P)Women’s and girls’
manmade fiber slips, petticoats, briefs, panties, and underwear classifiable
under subheading 6108.11, 6108.22, 6108.92, 6109.90, 6208.11, or 6208.92 of the
HTS.
(Q)Gloves, mittens,
and mitts of cotton classifiable under subheading 6116.10, 6116.92, 6116.99, or
6216.00 of the HTS.
(R)Other men’s or
boys’ garments classifiable under statistical reporting number 6211.32.0081 of
the HTS.
(f)
(1)The Comptroller General of the United States shall, not
later than 3 years after the date of the enactment of this Act, and every 3
years thereafter, review the effectiveness of this section in supporting the
use of United States fabrics and make recommendations necessary to improve or
expand the provisions of this section to ensure support for the use of United
States fabrics.
(2)After
the second review required under paragraph (1), the Comptroller General shall
make a determination regarding whether this section is effective in supporting
the use of United States fabrics and recommend to Congress whether or not this
section should be renewed.
(g)Preferential
treatment under this section shall not be provided to textile and apparel
articles that are imported from the Philippines unless the President certifies
to Congress that the Philippines is meeting the following conditions:
(1)A
valid original textile visa issued by the Philippines is provided to U.S.
Customs and Border Protection with respect to any article for which
preferential treatment is claimed. The visa issued is in the standard 9-digit
format required under the Electronic Visa Information System (ELVIS) and meets
all reporting requirements of ELVIS.
(2)The Philippines is
implementing the Electronic Visa Information System (ELVIS) to assist in the
prevention of transshipment of apparel articles and the use of counterfeit
documents relating to the importation of apparel articles into the United
States.
(3)The Philippines is
enforcing the Memorandum of Understanding between the United States of America
and the Republic of the Philippines Concerning Cooperation in Trade in Textile
and Apparel Goods, signed on August 23, 2006.
(4)The Philippines
agrees to provide, on a timely basis at the request of U.S. Customs and Border
Protection, and consistently with the manner in which the records are kept in
the Philippines, a report on exports from the Philippines of apparel articles
eligible for preferential treatment under this section, and on imports into the
Philippines of yarns, fabrics, fabric components, or components knit-to-shape
that are wholly formed in the United States.
(5)The Philippines
agrees to cooperate fully with the United States to address and take action
necessary to prevent circumvention as provided in Article 5 of the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(4)).
(6)The Philippines
agrees to require Philippines producers and exporters of articles eligible for
preferential treatment under this section to maintain, for at least 5 years
after the date of export, complete records of the production and the export of
such articles, including records of yarns, fabrics, fabric components, and
components knit-to-shape and used in the production of such articles.
(7)The Philippines
agrees to provide, on a timely basis, at the request of U.S. Customs and Border
Protection, documentation establishing the country of origin of articles
eligible for preferential treatment under this section, as used by that country
in implementing an effective visa system.
(8)The Philippines is
to establish, within 60 days after the date of the President’s certification
under this paragraph, procedures that allow the Office of Textiles and Apparel
of the Department of Commerce (OTEXA) to obtain information when fabric wholly
formed in the United States is exported to the Philippines to allow for
monitoring and verification before the imports of apparel articles containing
the fabric for which preferential treatment is sought under this section reach
the United States. The information provided upon export of the fabrics shall
include, among other things, the name of the importer of the fabric in the
Philippines, the 8-digit HTS subheading covering the apparel articles to be
made from the fabric, and the quantity of the apparel articles to be made from
the fabric for importation into the United States.
(9)The Philippines
has enacted legislation or promulgated regulations to allow for the seizure of
merchandise physically transiting the territory of the Philippines and that
appears to be destined for the United States in circumvention of the provisions
of this Act.
(h)
(1)
(A)If the President determines, based on sufficient
evidence, that an exporter has engaged in transshipments as defined in
paragraph (2), then the President shall deny for a period of 5 years all
benefits under this section to such exporter, any successor of such exporter,
and any other entity owned or operated by the principal of the exporter.
(B)If the President determines, based on sufficient
evidence, that an importer has engaged in transshipments as defined in
paragraph (2), then the President shall deny for a period of 5 years all
benefits under this section to such importer, any successor of such importer,
or any entity owned or operated by the principal of the importer.
(2)Definition of
transhipmentFor purposes of paragraph (1) and subsection (g),
transshipment has occurred when preferential treatment for an apparel article
under this section has been claimed on the basis of material false information
concerning the country of origin, manufacture, processing, cutting, or assembly
of the article or of any fabric, fabric component, or component knit-to-shape
from which the apparel article was cut and assembled. For purposes of this
paragraph, false information is material if disclosure of the true information
would have meant that the article is or was ineligible for preferential
treatment under this section.
(i)The President shall issue a proclamation to carry out
this section not later than 60 days after the date of the enactment of this
Act. The President shall consult with the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives in
preparing such proclamation.
5.This Act shall apply to
articles entered, or withdrawn from warehouse for consumption, on or after the
15th day after the date on which the President issues the proclamation required
by section 4(i).
6.
(a)The preferential duty treatment provided under this Act
shall remain in effect for a period of 7 years beginning on the effective date
provided for in section 5.
(b)The preferential duty treatment provided under this
Act shall terminate if and when the Philippines becomes ineligible for
designation as a beneficiary developing country under title V of the Trade Act
of 1974 (19 U.S.C. 2461 et seq.).