[Congressional Record Volume 157, Number 90 (Wednesday, June 22, 2011)]
[Senate]
[Pages S4025-S4028]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. INOUYE (for himself, Mr. Blunt, Mr. Reid, and Mr. Akaka):
S. 1244. A bill to provide for preferential duty treatment to certain
apparel articles of the Philippines; to the Committee on Finance.
Mr. INOUYE. Mr. President, I am pleased to introduce legislation
today, cosponsored by my colleagues Senator Reid of Nevada, Senator
Blunt of Missouri, and Senator Akaka of Hawaii, that will provide duty-
free treatment to U.S. imports of finished Philippine apparel in return
for purchasing and using fabrics and yarns made in the United States.
This bill will promptly create an incentivized export market for our
shrinking textile industry, and create new jobs.
The Philippine apparel industry estimates that U.S. fabric sales
spurred by the SAVE Act could reach potentially hundreds of millions of
dollars and translate into upwards of 2,000 additional jobs in the
United States fabric mill sector. With almost 99 percent of the U.S.
apparel market now served by imports, U.S. textile manufacturers are
reliant on export markets for their survival.
The SAVE Act is patterned after the Dominican Republic, Central
America Free Trade Agreement, or CAFTA, which permits tariff-free
import of apparel assembled in those countries in return for using
cotton and manmade fiber fabrics still made in the United States. The
SAVE Act will provide our textile companies with a new opportunity to
export fabrics into the dynamic Asian market.
[[Page S4026]]
The Philippine apparel manufacturing industry is well established and
known for its quality needlework and high-end fashion. It has been
supplying top American brands and U.S. retailers for decades. With the
growth of China in apparel production and the end of the quota system,
Philippine apparel exports to the United States have dropped by 50
percent in the last five years. The Philippine apparel sector is in
critical decline, with employment dropping by 75 percent since 2003.
The Philippines has been, arguably, our closest and most steadfast
friend in Southeast Asia. They were our protectorate and strategic
partner from the Spanish-American War through World War II. 10,000
American and Filipino servicemen died together in the infamous Bataan
Death March after our forces were overwhelmed by the Japanese Army in
1942. More than 100,000 Filipinos then volunteered to fight alongside
the United States and under U.S. command.
More recently, the United States and the Philippines have partnered
in successful efforts to combat terrorists in and around their islands.
Campaigns by the Armed Forces of the Philippines, trained in
counterterrorism by U.S. troops, resulted in the deaths of the Abu
Sayyaf leader and his deputy in 2006, as well as two other leaders in
2010.
Our close partnership deserves to be mutually rewarding on an
economic level. The SAVE Act would represent the first trade initiative
with the Philippines in nearly four decades. Unlike other countries in
the region, the United States and the Philippines share a balanced
trade relationship. The SAVE Act would continue to build on this
positive trade relationship and strengthen our economic ties with the
Philippines by helping each other reestablish competitive textile
industries.
The SAVE Act would also allow duty-free treatment for a limited range
of apparel not using U.S. fabrics so Philippine manufacturers can offer
a complementary product line to U.S. brands and retailers. This
category of apparel, which includes certain lines of coats, dresses,
skirts, blouses, and infants' wear, will not contain any components
that could have been made in the United States. These lines of apparel
also will not compete against imports from third countries using U.S.
components.
With the Republic of the Philippines as a partner, we can expect
proper customs enforcement. We believe the enforcement provisions of
the SAVE Act are more rigorous than any comparable bill. At our
request, Customs and Border Patrol, CBP, conducted an informal
technical review of the SAVE bill. With their recommendations included,
CBP concluded that the SAVE Act can be administered and enforced. The
Philippine Department of Trade and Industry then reviewed and agreed to
all the enforcement provisions.
This bill will provide our manufacturers with new export markets and
provide mutual benefits to a longstanding and erstwhile friend in
Southeast Asia. The Philippines, in my view, should never be relegated
to secondary consideration even as our focus shifts from one priority
to another.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1244
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Save Our Industries Act of
2011'' or the ``SAVE Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--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) Purposes.--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.
SEC. 3. DEFINITIONS.
In this Act:
(1) Classification under the hts.--The 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) Dobby woven fabric.--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) Entered.--The term ``entered'' means entered, or
withdrawn from warehouse for consumption, in the customs
territory of the United States.
(4) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(5) Knit-to-shape.--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''.
(6) Wholly assembled.--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) Wholly formed.--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.
SEC. 4. TRADE BENEFITS.
(a) Eligible Apparel Article.--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,
[[Page S4027]]
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) Duty-free treatment.--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 finishing.--An 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) Other processes.--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 Articles.--A 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) De Minimis Rules.--
(1) In general.--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) Elastomeric yarns.--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) Direct shipment.--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 Rules.--Any 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.
[[Page S4028]]
(R) Other men's or boys' garments classifiable under
statistical reporting number 6211.32.0081 of the HTS.
(f) Review and Report.--
(1) In general.--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) Recommendations.--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) Enforcement.--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) Customs Procedures.--
(1) In general.--
(A) Penalties for exporters.--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) Penalties for importers.--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 transhipment.--For 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) Proclamation Authority.--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.
SEC. 5. EFFECTIVE DATE.
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).
SEC. 6. TERMINATION.
(a) In General.--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) GSP Eligibility.--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.).
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