Congressional Record, Volume 161 Issue 78 (Wednesday, May 20, 2015)

[Congressional Record Volume 161, Number 78 (Wednesday, May 20, 2015)]
[Senate]
[Pages S3194-S3195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SA 1424. 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. SENSE OF CONGRESS.

It is the sense of Congress that it should be an objective
of the United States to use trade policies and trade
agreements to contribute to the reduction of poverty and the
elimination of hunger.

SEC. 303. 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 304 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. 304. ELIGIBLE ARTICLES.

(a) In General.--An article described in subsection (b) may
enter the customs territory of the United States free of
duty.
(b) Articles Described.--
(1) In general.--An article is described in this subsection
if--
(A)(i) the article is the growth, product, or manufacture
of Nepal; and
(ii) in the case of a textile or apparel article, Nepal is
the country of origin of the article, as determined under
section 102.1 of title 19, Code of Federal Regulations (as in
effect on the day before the date of the enactment of this
Act);
(B) the article is imported directly from Nepal into the
customs territory of the United States;
(C) the article is classified under any of the following
subheadings of the Harmonized Tariff Schedule of the United
States (as in effect on the day before the date of the
enactment of this Act):

4202.11.00........................ 4202.22.60........... 4202.92.08
4202.12.20........................ 4202.22.70........... 4202.92.15
4202.12.40........................ 4202.22.80........... 4202.92.20
4202.12.60........................ 4202.29.50........... 4202.92.30
4202.12.80........................ 4202.29.90........... 4202.92.45
4202.21.60........................ 4202.31.60........... 4202.92.60
4202.21.90........................ 4202.32.40........... 4202.92.90
4202.22.15........................ 4202.32.80........... 4202.99.90
4202.22.40........................ 4202.32.95........... 4203.29.50
4202.22.45........................ 4202.91.00 .............
.............
5701.10.90........................ 5702.91.30........... 5703.10.80
5702.31.20........................ 5702.91.40........... 5703.90.00
5702.49.20........................ 5702.92.90........... 5705.00.20
5702.50.40........................ 5702.99.15 .............
5702.50.59........................ 5703.10.20 .............
.............
6117.10.60........................ 6214.20.00........... 6217.10.85
6117.80.85........................ 6214.40.00........... 6301.90.00
6214.10.10........................ 6214.90.00........... 6308.00.00
6214.10.20........................ 6216.00.80 .............
.............
6504.00.90........................ 6505.00.30........... 6505.00.90
6505.00.08........................ 6505.00.40........... 6506.99.30
6505.00.15........................ 6505.00.50........... 6506.99.60
6505.00.20........................ 6505.00.60 .............
6505.00.25........................ 6505.00.80 .............

(D) the President determines, after receiving the advice of
the United States International Trade Commission in
accordance with section 503(e) of the Trade Act of 1974 (19
U.S.C. 2463(e)), that the article is not import-sensitive in
the context of imports from Nepal; and
(E) subject to paragraph (3), 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.
(2) Exclusions.--An article shall not be treated as the
growth, product, or manufacture of Nepal for purposes of
paragraph (1)(A)(i) by virtue of having merely undergone--
(A) simple combining or packaging operations; or
(B) mere dilution with water or mere dilution with another
substance that does not materially alter the characteristics
of the article.
(3) Limitation on united states cost.--For purposes of
paragraph (1)(E), 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 paragraph may not
exceed 15 percent of the appraised value of the article at
the time it is entered.
(c) Verification With Respect to Transshipment for Textile
and Apparel Articles.--
(1) 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 title are not
being unlawfully transshipped into the United States.
(2) Report to president.--If the Commissioner determines
pursuant to paragraph (1) that textile and apparel articles
imported from Nepal to which preferential treatment is
extended under this title are being unlawfully transshipped
into the United States, the Commissioner shall report that
determination to the President.

SEC. 305. TRADE FACILITATION AND CAPACITY BUILDING.

(a) Findings.--Congress makes the following findings:
(1) As a land-locked least-developed country, Nepal has
severe challenges reaching markets and developing capacity to
export goods. As of 2015, exports from Nepal are
approximately $800,000,000 per year, with India the major
market at $450,000,000 annually. The United States imports
about $80,000,000 worth of goods from Nepal, or 10 percent of
the total goods exported from Nepal.
(2) The World Bank has found evidence that the overall
export competitiveness of Nepal has been declining since
2005. Indices compiled by the World Bank and the Organization
for Economic Co-operation and Development found that export
costs in Nepal are high with respect to both air cargo and
container shipments relative to other low-income countries.
Such indices also identify particular weaknesses in Nepal
with respect to automation of customs and other trade
functions, involvement of local exporters and importers in
preparing regulations and trade rules, and export finance.
(3) Implementation by Nepal of the Agreement on Trade
Facilitation of the World Trade Organization could directly
address some of the weaknesses described in paragraph (2).
(b) Establishment of Trade Facilitation and Capacity
Building Program.--Not later than 180 days after the date of
the enactment of this Act, the President shall, in
consultation with the Government of Nepal, establish a trade
facilitation and capacity building program for Nepal--
(1) to enhance the central export promotion agency of Nepal
to support successful exporters and to build awareness among
potential exporters in Nepal about opportunities abroad and
ways to manage trade documentation and regulations in the
United States and other countries;
(2) to provide export finance training for financial
institutions in Nepal and the Government of Nepal;
(3) to assist the Government of Nepal in maintaining
publication of all trade regulations, forms for exporters and
importers, tax and tariff rates, and other documentation
relating to exporting goods on the Internet and developing a
robust public-private dialogue, through its National Trade
Facilitation Committee, for Nepal to identify timelines for
implementation of key reforms and solutions, as provided for
under the Agreement on Trade Facilitation of the World Trade
Organization; and
(4) to increase access to guides for importers and
exporters on the Internet, including rules and documentation
for United States tariff preference programs.

SEC. 306. REPORTING REQUIREMENT.

Not later than one year after the date of the enactment of
this Act, and annually thereafter, the President shall
monitor, review, and report to Congress on the implementation
of this title, the compliance of Nepal with section 303(a),
and the trade and investment policy of the United States with
respect to Nepal.

SEC. 307. TERMINATION OF PREFERENTIAL TREATMENT.

No preferential treatment extended under this title shall
remain in effect after December 31, 2025.

[[Page S3195]]

SEC. 308. EFFECTIVE DATE.

The provisions of this title shall take effect on January
1, 2016.
______