[Congressional Record Volume 161, Number 76 (Monday, May 18, 2015)]
[Senate]
[Page S2997]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1340. Mrs. FEINSTEIN submitted an amendment intended to be
proposed to amendment SA 1221 proposed by Mr. Hatch to the bill H.R.
1314, to amend the Internal Revenue Code of 1986 to provide for a right
to an administrative appeal relating to adverse determinations of tax-
exempt status of certain organizations; which was ordered to lie on the
table; as follows:
At the end, add the following:
TITLE III--TRADE PREFERENCES FOR NEPAL
SEC. 301. SHORT TITLE.
This title may be cited as the ``Nepal Trade Preferences
Act''.
SEC. 302. ELIGIBILITY REQUIREMENTS.
(a) In General.--The President may authorize the provision
of preferential treatment under this title to articles that
are imported directly from Nepal into the customs territory
of the United States pursuant to section 303 if the President
determines--
(1) that Nepal meets the requirements set forth in
paragraphs (1), (2), and (3) of section 104(a) of the African
Growth and Opportunity Act (19 U.S.C. 3703(a)); and
(2) after taking into account the factors set forth in
paragraphs (1) through (7) of subsection (c) of section 502
of the Trade Act of 1974 (19 U.S.C. 2462), that Nepal meets
the eligibility requirements of such section 502.
(b) Withdrawal, Suspension, or Limitation of Preferential
Treatment; Mandatory Graduation.--The provisions of
subsections (d) and (e) of section 502 of the Trade Act of
1974 (19 U.S.C. 2462) shall apply with respect to Nepal to
the same extent and in the same manner as such provisions
apply with respect to beneficiary developing countries under
title V of that Act (19 U.S.C. 2461 et seq.).
SEC. 303. ELIGIBLE ARTICLES.
(a) Certain Manufactured and Other Articles.--
(1) In general.--An article described in paragraph (2) may
enter the customs territory of the United States free of
duty.
(2) Articles described.--
(A) In general.--An article is described in this paragraph
if--
(i) the article is the growth, product, or manufacture of
Nepal;
(ii) the article is imported directly from Nepal into the
customs territory of the United States;
(iii) the article is described in subparagraphs (B) through
(G) of subsection (b)(1) of section 503 of the Trade Act of
1974 (19 U.S.C. 2463);
(iv) the President determines, after receiving the advice
of the United States International Trade Commission in
accordance with subsection (e) of that section, that the
article is not import-sensitive in the context of imports
from Nepal; and
(v) subject to subparagraph (C), the sum of the cost or
value of the materials produced in, and the direct costs of
processing operations performed in, Nepal or the customs
territory of the United States is not less than 35 percent of
the appraised value of the article at the time it is entered.
(B) Exclusions.--An article shall not be treated as the
growth, product, or manufacture of Nepal for purposes of
subparagraph (A)(i) by virtue of having merely undergone--
(i) simple combining or packaging operations; or
(ii) mere dilution with water or mere dilution with another
substance that does not materially alter the characteristics
of the article.
(C) Limitation on united states cost.--For purposes of
subparagraph (A)(v), the cost or value of materials produced
in, and the direct costs of processing operations performed
in, the customs territory of the United States and attributed
to the 35-percent requirement under that subparagraph may not
exceed 15 percent of the appraised value of the article at
the time it is entered.
(b) Textile and Apparel Articles.--
(1) In general.--A textile or apparel article described in
paragraph (2) or (3) may enter the customs territory of the
United States free of duty.
(2) Textile and apparel articles wholly assembled in
nepal.--
(A) In general.--A textile or apparel article is described
in this paragraph if the textile or apparel article is--
(i) wholly assembled in Nepal, without regard to the
country of origin of the yarn or fabric used to make the
articles; and
(ii) imported directly from Nepal into the customs
territory of the United States.
(B) Aggregate limit.--The aggregate quantity of textile and
apparel articles described in subparagraph (A) imported into
the customs territory of the United States from Nepal during
a calendar year under this subsection may not exceed one half
of one percent of the aggregate square meter equivalents of
all textile and apparel articles imported into the customs
territory of the United States in the most recent 12-month
period for which data are available.
(3) Handloomed, handmade, folklore articles and ethnic
printed fabrics.--
(A) In general.--A textile or apparel article is described
in this paragraph if the textile or apparel article is--
(i) imported directly from Nepal into the customs territory
of the United States;
(ii) on a list of textile and apparel articles determined
by the President, after consultation with the Government of
Nepal, to be handloomed, handmade, folklore articles or
ethnic printed fabrics of Nepal; and
(iii) certified as a handloomed, handmade, folklore article
or an ethnic printed fabric of Nepal by the competent
authority of Nepal.
(B) Ethnic printed fabric.--For purposes of subparagraph
(A), an ethnic printed fabric of Nepal is fabric--
(i) containing a selvedge on both edges and having a width
of less than 50 inches;
(ii) classifiable under subheading 5208.52.30 or 5208.52.40
of the Harmonized Tariff Schedule of the United States;
(iii) of a type that contains designs, symbols, and other
characteristics of Nepal--
(I) normally produced for and sold in indigenous markets in
Nepal; and
(II) normally sold in Nepal by the piece as opposed to
being tailored into garments before being sold in indigenous
markets in Nepal;
(iv) printed, including waxed, in Nepal; and
(v) formed in the United States from yarns formed in the
United States or formed in Nepal from yarns originating in
either the United States or Nepal.
(4) Quantitative limitation.--Preferential treatment under
this subsection shall be extended in the 1-year period
beginning January 1, 2016, and in each of the succeeding 10
1-year periods, to imports of textile and apparel articles
from Nepal under this subsection in an amount not to exceed
one half of one percent of the aggregate square meter
equivalents of all textile and apparel articles imported into
the customs territory of the United States in the most recent
12-month period for which data are available.
(5) Verification with respect to transshipment for certain
apparel articles.--
(A) In general.--Not later than April 1, July 1, October 1,
and January 1 of each year, the Commissioner responsible for
U.S. Customs and Border Protection shall verify that textile
and apparel articles imported from Nepal to which
preferential treatment is extended under this subsection are
not being unlawfully transshipped into the United States.
(B) Report to president.--If the Commissioner determines
pursuant to subparagraph (A) that textile and apparel
articles imported from Nepal to which preferential treatment
is extended under this subsection are being unlawfully
transshipped into the United States, the Commissioner shall
report that determination to the President.
(C) Authority to reduce quantitative limitation.--If, in
any 1-year period with respect to which the President extends
preferential treatment to textile and apparel articles under
this subsection, the Commissioner reports to the President
pursuant to subparagraph (B) regarding unlawful
transshipments, the President--
(i) may modify the quantitative limitation under paragraph
(4) as the President considers appropriate to account for
such transshipments; and
(ii) if the President modifies that limitation under clause
(i), shall publish notice of the modification in the Federal
Register.
(6) Surge mechanism.--The provisions of subparagraph (B) of
section 112(b)(3) of the African Growth and Opportunity Act
(19 U.S.C. 3721(b)(3)) shall apply to textile and apparel
articles imported from Nepal to which preferential treatment
is extended under this subsection to the same extent and in
the same manner that such provisions apply to textile and
apparel articles described in such section 112(b)(3) and
imported from a beneficiary sub-Saharan African country.
(7) Special eligibility rules; protections against
transshipment.--The provisions of subsection (e) of section
112 and section 113 of the African Growth and Opportunity Act
(19 U.S.C. 3721 and 3722) shall apply to textile and apparel
articles imported from Nepal to which preferential treatment
is extended under this subsection to the same extent and in
the same manner that such provisions apply to textile and
apparel articles imported from beneficiary sub-Saharan
countries to which preferential treatment is extended under
such section 112.
SEC. 304. REPORTING REQUIREMENT.
The President shall monitor, review, and report to
Congress, not later than one year after the date of the
enactment of this Act, and annually thereafter, on the
implementation of this title and on the trade and investment
policy of the United States with respect to Nepal.
SEC. 305. TERMINATION OF PREFERENTIAL TREATMENT.
No preferential treatment extended under this title shall
remain in effect after December 31, 2025.
SEC. 306. EFFECTIVE DATE.
The provisions of this title shall take effect on January
1, 2016.
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