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
connections. The United States has developed preferential trading relations
with former colonies such as the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
(2)The Philippines
represents a tremendous economic potential and enduring political and security
significance to the United States.
(3)The United States
and the Philippines maintain a fair trading relationship that should be
expanded to the mutual benefit of both countries. In 2008, United States
exports to the Philippines were valued at $8,300,000,000, and United States
imports from the Philippines were valued at $8,700,000,000.
(4)United States
textile exports to the Philippines were valued at nearly $20,000,000 in 2008,
consisting mostly of broadwoven, industrial or specialty, and nonwoven fabrics.
The potential for export growth in this area can sustain and create thousands
of jobs.
(5)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 safeguards
that controlled apparel imports from the People's Republic of China until
January 1, 2009.
(6)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 75
percent 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.
(7)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.
(8)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 8-digit subheading under which the article is classified in the HTS.
(2)The
term HTS means the Harmonized Tariff Schedule of the United
States.
(3)The
term entered means entered, or withdrawn from warehouse for
consumption, in the customs territory of the United States.
(4)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, appliques, 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.
(5)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.
(6)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, or 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, 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, 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.
(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 the 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 the
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)Duty reduction
for certain eligible apparel articles
(1)An eligible apparel article shall enter the United
States at a reduced rate of duty specified in paragraph (2) if it 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 or the Philippines, or both, from yarns wholly formed in the
United States;
(B)components
knit-to-shape in the United States or the Philippines, or both, from yarns
wholly formed in the United States; or
(C)any combination
of fabric or components knit-to-shape that are described in subparagraphs (A)
and (B).
(2)An eligible apparel article described in paragraph (1) shall
be subject to duty in an amount that is equal to 50 percent of the column 1
rate of duty that applies to the apparel article's classification under the
HTS.
(d)Articles
eligible under both subsection (b) and
subsection (c)An eligible
apparel article that meets the requirements of both subsections (b) and (c)
shall be eligible for duty-free treatment under subsection (b).
(e)
(1)An eligible apparel article that is otherwise eligible
for preferential treatment under this section shall not be ineligible for such
preferential treatment because fibers or yarns used in the production of the
component that determines the article's classification under the HTS do not
meet the requirements of subsection (b) or (c), if the total weight of all such
fibers or yarns in the component that determines the article's classification
under the HTS is not more than 10 percent of the total weight of that
component.
(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.
(f)Single
transformation rulesAny of the following apparel articles that
are 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)Any apparel
article that is of a type listed in chapter rule 3, 4, or 5 for chapter 61 of
the HTS (as such chapter rules are contained in paragraph 1 of section A of the
Annex to Presidential Proclamation 8213 of December 20, 2007 (72 Fed. Reg.
73555)) as being excluded from the scope of such chapter rule, when such
chapter rule is applied to determine whether an apparel article is an
originating good for purposes of General Note 29(n) to the HTS, except that,
for purposes of this paragraph, a reference in any such chapter rule to
6104.12.00
shall be deemed to be a reference to
6104.19.60
.
(2)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 Presidential Proclamation 8213 of December 20, 2007.
(3)Any article not
described in paragraph (1) or (2) 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, overcoats, 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, 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 subheading 6205.20, 6205.90, or 6211.32 of the
HTS.
(F)Cotton pajamas
and sleepwear classifiable under subheading 6107.21, 6107.91, 6108.31, 6207.21,
6207.91, or 6208.21 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, 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)Wool skirts
classifiable under subheading 6104.51, 6104.53, 6104.59, 6204.51, 6204.53, or
6204.59 of the HTS.
(J)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.
(K)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.
(L)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.
(M)Men’s and boys’
wool 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,
6201.11, 6201.13, 6201.19, 6201.91, 6201.93, 6201.99, 6211.20, or 6211.39 of
the HTS.
(N)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
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.
(O)Cotton skirts
classifiable under subheading 6104.19, 6104.52, 6104.59, 6204.12, 6204.19,
6204.52, or 6204.59 of the HTS.
(P)Manmade fiber
skirts classifiable under subheading 6104.53, 6104.59, 6204.53, or 6204.59 of
the HTS.
(Q)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.
(R)Women's and
girls' cotton slips, petticoats, briefs, panties, and underwear classifiable
under subheading 6108.19, 6108.21, 6108.91, 6109.10, 6208.19, or 6208.91 of the
HTS.
(S)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.
(g)The Comptroller General of the United States shall, not
later than 24 months after the date of the enactment of this Act, review the
program established under this section for the purpose of evaluating the
effectiveness of, and making recommendations to Congress for improvements in,
the program.
(h)
(1)Presidential
certification of conditionsNo apparel article shall be afforded
the preferential treatment under this section unless the President certifies to
Congress that the Philippines is meeting the following conditions:
(A)The Philippines
has reestablished the Electronic Visa Information System (ELVIS) to assist with
prevention of transshipment of apparel articles and the use of counterfeit
documents relating to the importation of apparel articles into the United
States.
(B)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.
(C)The Philippines
agrees to provide, on a timely basis at the request of U.S. Customs and Border
Protection, and consistent 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.
(D)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)).
(E)The Philippines
agrees to require Philippine 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.
(F)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 reimplementing an effective visa system.
(G)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.
(H)The Philippines
has enacted legislation or promulgated regulations to allow for the seizure of
merchandise physically transiting the territory of the Philippines and appears
to be destined for the United States in circumvention of the provisions of this
Act.
(i)
(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 section 4 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 section 4 to such importer, any successor of such importer, or
any entity owned or operated by the principal of the importer.
(2)Definition of
transshipmentAs used in paragraph (1), 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, or assembly of the article or of
any fabric, fabric component, or component knit-to-shape from which the apparel
article was 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.
(j)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 Ways and Means of the
House of Representatives and the Committee on Finance of the Senate 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(j).
6.
(a)The preferential duty treatment provided under this Act
shall remain in effect for a period of 10 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.).