[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[Senate]
[Pages 27662-27666]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

                   AFRICAN GROWTH AND OPPORTUNITY ACT

                                 ______
                                 

                   FEINGOLD AMENDMENTS NOS. 2427-2428

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted two amendments intended to be proposed by him 
to the bill (H.R. 434) to authorize a new trade and investment policy 
for sub-Sahara Africa; as follows:

                           Amendment No. 2427

       Strike sections 111 through 114 and insert the following:

     SEC. 111. ENCOURAGING MUTUALLY BENEFICIAL TRADE AND 
                   INVESTMENT.

       (a) Findings.--Congress makes the following findings:
       (1) A mutually beneficial United States Sub-Saharan Africa 
     trade policy will grant new access to the United States 
     market for a broad range of goods produced in Africa, by 
     Africans, and include safeguards to ensure that the 
     corporations manufacturing these goods (or the product or 
     manufacture of the oil or mineral extraction industry) 
     respect the rights of their employees and the local 
     environment. Such trade opportunities will promote equitable 
     economic development and thus increase demand in African 
     countries for United States goods and service exports.
       (2) Recognizing that the global system of textile and 
     apparel quotas under the MultiFiber Arrangement will be 
     phased out under the Uruguay Round Agreements over the next 5 
     years with the total termination of the quota system in 2005, 
     the grant of additional access to the United States market in 
     these sectors is a short-lived benefit.
       (b) Treatment of Quotas.--
       (1) Kenya and mauritius.--Pursuant to the Agreement on 
     Textiles and Clothing, the United States shall eliminate the 
     existing quotas on textile and apparel imports to the United 
     States from Kenya and Mauritius, respectively, not later than 
     30 days after each country demonstrates the following:
       (A) The country is not ineligible for benefits under 
     section 502(b)(2) of the Trade Act of 1974 (19 U.S.C. 
     2462(b)(2)).
       (B) The country does not engage in significant violations 
     of internationally recognized human rights and the Secretary 
     of State agrees with this determination.
       (C)(i) The country is providing for effective enforcement 
     of internationally recognized worker rights throughout the 
     country (including in export processing zones) as determined 
     under paragraph (5), including the core labor standards 
     enumerated in the appropriate treaties of the International 
     Labor Organization, and including--
       (I) the right of association;
       (II) the right to organize and bargain collectively;
       (III) a prohibition on the use of any form of coerced or 
     compulsory labor;
       (IV) the international minimum age for the employment of 
     children (age 15); and
       (V) acceptable conditions of work with respect to minimum 
     wages, hours of work, and occupational safety and health.
       (ii) The government of the country ensures that the 
     Secretary of Labor, the head of the national labor agency of 
     the government of that country, and the head of the 
     International Confederation of Free Trade Unions-Africa 
     Region Office (ICFTU-AFRO) each has access to all appropriate 
     records and other information of all business enterprises in 
     the country.
       (D) The country is taking adequate measures to prevent 
     illegal transshipment of goods that is carried out by 
     rerouting, false declaration concerning country of origin or 
     place of origin, falsification of official documents, evasion 
     of United States rules of origin for textile and apparel 
     goods, or any other means, in accordance with the 
     requirements of subsection (d).
       (E) The country is taking adequate measures to prevent 
     being used as a transit point for the shipment of goods in 
     violation of the Agreement on Textiles and Clothing or any 
     other applicable textile agreement.
       (F) The cost or value of the textile or apparel product 
     produced in the country, or by companies in any 2 or more 
     sub-Saharan African countries, plus the direct costs of 
     processing operations performed in the country or such 
     countries, is not less than 60 percent of the appraised value 
     of the product at the time it is entered into the customs 
     territory of the United States.
       (G) Not less than 90 percent of employees in business 
     enterprises producing the textile and apparel goods are 
     citizens of that country, or any 2 or more sub-Saharan 
     African countries.
       (H) The country has established, or is making continual 
     progress toward establishing--
       (i) a market-based economy, where private property rights 
     are protected and the principles of an open, rules-based 
     trading system are observed;
       (ii) a democratic society, where the rule of law, political 
     freedom, participatory democracy, and the right to due 
     process and a fair trial are observed;
       (iii) an open trading system through the elimination of 
     barriers to United States trade and investment and the 
     resolution of bilateral trade and investment disputes; and
       (iv) economic policies to reduce poverty, increase the 
     availability of health care and educational opportunities, 
     expand physical infrastructure, and promote the establishment 
     of private enterprise.
       (2) Other sub-saharan countries.--The President shall 
     continue the existing no quota policy for each other country 
     in sub-Saharan Africa if the country is in compliance with 
     the requirements applicable to Kenya and Mauritius under 
     subparagraphs (A) through (H) of paragraph (1).
       (3) Technical assistance.--The Customs Service shall 
     provide the necessary technical assistance to sub-Saharan 
     African countries in the development and implementation of 
     adequate measures against the illegal transshipment of goods.
       (4) Offsetting reduction of chinese quota.--When the quota 
     for textile and apparel products imported from Kenya or 
     Mauritius is eliminated, the quota for textile and apparel 
     products from the People's Republic

[[Page 27663]]

     of China for each calendar year in each product category 
     shall be reduced by the amount equal to the volume of all 
     textile and apparel products in that product category 
     imported from all sub-Saharan African countries into the 
     United States in the preceding calendar year, plus 5 percent 
     of that amount.
       (5) Determination of compliance with internationally 
     recognized worker rights.--
       (A) Determination.--
       (i) In general.--For purposes of carrying out paragraph 
     (1)(C), the Secretary of Labor, in consultation with the 
     individuals described in clause (ii) and pursuant to the 
     procedures described in clause (iii), shall determine whether 
     or not each sub-Saharan African country is providing for 
     effective enforcement of internationally recognized worker 
     rights throughout the country (including in export processing 
     zones).
       (ii) Individuals described.--The individuals described in 
     this clause are the head of the national labor agency of the 
     government of the sub-Saharan African country in question and 
     the head of the International Confederation of Free Trade 
     Unions-Africa Region Office (ICFTU-AFRO).
       (iii) Public comment.--Not later than 90 days before the 
     Secretary of Labor makes a determination that a country is in 
     compliance with the requirements of paragraph (1)(C), the 
     Secretary shall publish notice in the Federal Register and an 
     opportunity for public comment. The Secretary shall take into 
     consideration the comments received in making a determination 
     under such paragraph (1)(C).
       (B) Continuing compliance.--In the case of a country for 
     which the Secretary of Labor has made an initial 
     determination under subparagraph (A) that the country is in 
     compliance with the requirements of paragraph (1)(C), the 
     Secretary, in consultation with the individuals described in 
     subparagraph (A), shall, not less than once every 3 years 
     thereafter, conduct a review and make a determination with 
     respect to that country to ensure continuing compliance with 
     the requirements of paragraph (1)(C). The Secretary shall 
     submit the determination to Congress.
       (C) Report.--Not later than 6 months after the date of 
     enactment of this Act, and on an annual basis thereafter, the 
     Secretary of Labor shall prepare and submit to Congress a 
     report containing--
       (i) a description of each determination made under this 
     paragraph during the preceding year;
       (ii) a description of the position taken by each of the 
     individuals described in subparagraph (A)(ii) with respect to 
     each such determination; and
       (iii) a report on the public comments received pursuant to 
     subparagraph (A)(iii).
       (6) Report.--Not later than March 31 of each year, the 
     President shall publish in the Federal Register and submit to 
     Congress a report on the growth in textiles and apparel 
     imported into the United States from countries in sub-Saharan 
     Africa in order to inform United States consumers, workers, 
     and textile manufacturers about the effects of the no quota 
     policy.
       (c) Treatment of Tariffs.--The President shall provide an 
     additional benefit of a 50 percent tariff reduction for any 
     textile and apparel product of a sub-Saharan African country 
     that meets the requirements of subparagraphs (A) through (H) 
     of subsection (b)(1) and subsection (d) and that is imported 
     directly into the United States from such sub-Saharan African 
     country if the business enterprise, or a subcontractor of the 
     enterprise, producing the product is in compliance with the 
     following:
       (1) Citizens of 1 or more sub-Saharan African countries own 
     not less than 51 percent of the business enterprise.
       (2) If the business enterprise involves a joint-venture 
     arrangement with, or related to as a subsidiary, trust, or 
     subcontractor, a business enterprise organized under the laws 
     of the United States, the European Union, Japan, or any other 
     developed country (or group of developed countries), or 
     operating in such countries, the business enterprise complies 
     with the environmental standards that would apply to a 
     similar operation in the United States, the European Union, 
     Japan, or any other developed country (or group of developed 
     countries), as the case may be.
       (d) Customs Procedures and Enforcement.--
       (1) Obligations of importers and parties on whose behalf 
     apparel and textiles are imported.--
       (A) In general.--Notwithstanding any other provision of 
     law, all imports to the United States of textile and apparel 
     goods pursuant to this Act shall be accompanied by--
       (i)(I) the name and address of the manufacturer or producer 
     of the goods, and any other information with respect to the 
     manufacturer or producer that the Customs Service may 
     require; and
       (II) if there is more than one manufacturer or producer, or 
     if there is a contractor or subcontractor of the manufacturer 
     or producer with respect to the manufacture or production of 
     the goods, the information required under subclause (I) with 
     respect to each such manufacturer, producer, contractor, or 
     subcontractor, including a description of the process 
     performed by each such entity;
       (ii) a certification by the importer of record that the 
     importer has exercised reasonable care to ascertain the true 
     country of origin of the textile and apparel goods and the 
     accuracy of all other information provided on the 
     documentation accompanying the imported goods, as well as a 
     certification of the specific action taken by the importer to 
     ensure reasonable care for purposes of this paragraph; and
       (iii) a certification by the importer that the goods being 
     entered do not violate applicable trademark, copyright, and 
     patent laws.
       (B) Liability.--The importer of record and the final retail 
     seller of the merchandise shall be jointly liable for any 
     material false statement, act, or omission made with the 
     intention or effect of--
       (i) circumventing any quota that applies to the 
     merchandise; or
       (ii) avoiding any duty that would otherwise be applicable 
     to the merchandise.
       (2) Obligations of countries to take action against 
     transshipment and circumvention.--The President shall ensure 
     that any country in sub-Saharan Africa that intends to import 
     textile and apparel goods into the United States--
       (A) has in place adequate measures to guard against 
     unlawful transshipment of textile and apparel goods and the 
     use of counterfeit documents; and
       (B) will cooperate fully with the United States to address 
     and take action necessary to prevent circumvention of any 
     provision of this section or of any agreement regulating 
     trade in apparel and textiles between that country and the 
     United States.
       (3) Standards of proof.--
       (A) For importers and retailers.--
       (i) In general.--The United States Customs Service (in this 
     Act referred to as the ``Customs Service'') shall seek 
     imposition of a penalty against an importer or retailer for a 
     violation of any provision of this section if the Customs 
     Service determines, after appropriate investigation, that 
     there is a substantial likelihood that the violation 
     occurred.
       (ii) Use of best available information.--If an importer or 
     retailer fails to cooperate with the Customs Service in an 
     investigation to determine if there has been a violation of 
     any provision of this section, the Customs Service shall base 
     its determination on the best available information.
       (B) For countries.--
       (i) In general.--The President may determine that a country 
     is not taking adequate measures to prevent illegal 
     transshipment of goods or to prevent being used as a transit 
     point for the shipment of goods in violation of this section 
     if the Customs Service determines, after consultations with 
     the country concerned, that there is a substantial likelihood 
     that a violation of this section occurred.
       (ii) Use of best available information.--

       (I) In general.--If a country fails to cooperate with the 
     Customs Service in an investigation to determine if an 
     illegal transshipment has occurred, the Customs Service shall 
     base its determination on the best available information.
       (II) Examples.--Actions indicating failure of a country to 
     cooperate under subclause (I) include--

       (aa) denying or unreasonably delaying entry of officials of 
     the Customs Service to investigate violations of, or promote 
     compliance with, this section or any textile agreement;
       (bb) providing appropriate United States officials with 
     inaccurate or incomplete information, including information 
     required under the provisions of this section; and
       (cc) denying appropriate United States officials access to 
     information or documentation relating to production capacity 
     of, and outward processing done by, manufacturers, producers, 
     contractors, or subcontractors within the country.
       (4) Penalties.--
       (A) For importers and retailers.--The penalty for a 
     violation of any provision of this section by an importer or 
     retailer of textile and apparel goods--
       (i) for a first offense (except as provided in clause 
     (iii)), shall be a civil penalty in an amount equal to 200 
     percent of the declared value of the merchandise, plus 
     forfeiture of the merchandise;
       (ii) for a second offense (except as provided in clause 
     (iii)), shall be a civil penalty in an amount equal to 400 
     percent of the declared value of the merchandise, plus 
     forfeiture of the merchandise, and, shall be punishable by a 
     fine of not more than $100,000, imprisonment for not more 
     than 1 year, or both; and
       (iii) for a third or subsequent offense, or for a first or 
     second offense if the violation of the provision of this 
     section is committed knowingly and willingly, shall be 
     punishable by a fine of not more than $1,000,000, 
     imprisonment for not more than 5 years, or both, and, in 
     addition, shall result in forfeiture of the merchandise.
       (B) For countries.--If a country fails to undertake the 
     measures or fails to cooperate as required by this section, 
     the President shall impose a quota on textile and apparel 
     goods imported from the country, based on the volume of such 
     goods imported during the first 12 of the preceding 24 
     months, or

[[Page 27664]]

     shall impose a duty on the apparel or textile goods of the 
     country, at a level designed to secure future cooperation.
       (5) Applicability of united states laws and procedures.--
     All provisions of the laws, regulations, and procedures of 
     the United States relating to the denial of entry of articles 
     or penalties against individuals or entities for engaging in 
     illegal transshipment, fraud, or other violations of the 
     customs laws, shall apply to imports of textiles and apparel 
     from sub-Saharan African countries, in addition to the 
     specific provisions of this section.
       (6) Monitoring and reports to congress.--Not later than 
     March 31 of each year, the Customs Service shall monitor and 
     the Commissioner of Customs shall submit to Congress a report 
     on the measures taken by each country in sub-Saharan Africa 
     that imports textiles or apparel goods into the United 
     States--
       (A) to prevent transshipment; and
       (B) to prevent circumvention of this section or of any 
     agreement regulating trade in textiles and apparel between 
     that country and the United States.
       (e) Definition.--In this section, the term ``Agreement on 
     Textiles and Clothing'' means 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)).

     SEC. 112. GENERALIZED SYSTEM OF PREFERENCES.

       (a) Preferential Tariff Treatment for Certain Articles.--
     Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C. 
     2463(a)(1)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Eligible countries in sub-saharan africa.--
       ``(i) In general.--

       ``(I) Duty-free treatment.--Subject to clause (ii), the 
     President may provide duty-free treatment for any article 
     described in subclause (II) that is imported directly into 
     the United States from a sub-Saharan African country.
       ``(II) Article described.--

       ``(aa) In general.--An article described in this subclause 
     is an article set forth in the most current Lome Treaty 
     product list, that is the growth, product, or manufacture of 
     a sub-Saharan African country that is a beneficiary 
     developing country and that is in compliance with the 
     requirements of subsections (b) and (d) of section 111 of the 
     African Growth and Opportunity Act, with respect to such 
     article, if, after receiving the advice of the International 
     Trade Commission in accordance with subsection (e), the 
     President determines that such article is not import-
     sensitive in the context of all articles imported from United 
     States Trading partners. This subparagraph shall not affect 
     the designation of eligible articles under subparagraph (B).
       ``(bb) Other requirements.--In addition to meeting the 
     requirements of division (aa), in the case of an article that 
     is the product or manufacture of the oil or mineral 
     extraction industry, and the business enterprise that 
     produces or manufactures the article is involved in a joint-
     venture arrangement with, or related to as a subsidiary, 
     trust, or subcontractor, a business enterprise organized 
     under the laws of the United States, the European Union, 
     Japan, or any other developed country (or group of developed 
     countries), or operating in such countries, the business 
     enterprise complies with the environmental standards that 
     would apply to a similar operation in the United States, the 
     European Union, Japan, or any other developed country (or 
     group of developed countries), as the case may be.
       ``(ii) Rule of construction.--For purposes of clause (i), 
     in applying section 111(b)(1) (A) through (H) and section 
     111(d) of the African Growth and Opportunity Act, any 
     reference to textile and apparel goods or products shall be 
     deemed to refer to the article provided duty-free treatment 
     under clause (i).''.
       (b) Termination.--Title V of the Trade Act of 1974 is 
     amended by inserting after section 505 the following new 
     section:

     ``SEC. 505A. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN 
                   COUNTRIES.

       ``No duty-free treatment provided under this title shall 
     remain in effect after September 30, 2006 in the case of a 
     beneficiary developing country that is a sub-Saharan African 
     country.''.
       (d) Definitions.--Section 507 of the Trade Act of 1974 (19 
     U.S.C. 2467) is amended by adding at the end the following:
       ``(6) Sub-saharan african country.--The terms `sub-Saharan 
     African country' and `sub-Saharan African countries' mean a 
     country or countries in sub-Saharan Africa, as defined in 
     section 104 of the African Growth and Opportunity Act.
       ``(7) Lome treaty product list.--The term `Lome Treaty 
     product list' means the list of products that may be granted 
     duty-free access into the European Union according to the 
     provisions of the fourth iteration of the Lome Covention 
     between the European Union and the African-Caribbean and 
     Pacific States (commonly referred to as `Lome IV') signed on 
     November 4, 1995.''.
       (e) Clerical Amendment.--The table of contents for title V 
     of the Trade Act of 1974 is amended by inserting after the 
     item relating to section 505 the following new item:

``505A. Termination of benefits for sub-Saharan African countries.''.
       (f) Effective Date.--The amendments made by this section 
     take effect on the date that is 30 days after the date 
     enactment of this Act.

     SEC. 113. ADDITIONAL ENFORCEMENT.

       A citizen of the United States shall have a cause of action 
     in the United States district court in the district in which 
     the citizen resides or in any other appropriate district to 
     seek compliance with the standards set forth under 
     subparagraphs (A) through (H) of section 111(b)(1), section 
     111(c), and section 111(d) of this Act with respect to any 
     sub-Saharan African country, including a cause of action in 
     an appropriate United States district court for other 
     appropriate equitable relief. In addition to any other relief 
     sought in such an action, a citizen may seek three times the 
     value of any damages caused by the failure of a country or 
     company to comply. The amount of damages described in the 
     preceding sentence shall be paid by the business enterprise 
     (or business enterprises) the operations or conduct of which 
     is responsible for the failure to meet the standards set 
     forth under subparagraphs (A) through (H) of section 
     111(b)(1), section 111(c), and section 111(d).

     SEC. 114. UNITED STATES-SUB-SAHARAN AFRICAN TRADE AND 
                   ECONOMIC COOPERATION FORUM.

       (a) Declaration of Policy.--The President shall convene 
     annual meetings between senior officials of the United States 
     Government and officials of the governments of sub-Saharan 
     African countries in order to foster close economic ties 
     between the United States and sub-Saharan Africa.
       (b) Establishment.--Not later than 12 months after the date 
     of enactment of this Act, the President, after consulting 
     with the officials of interested sub-Saharan African 
     governments, shall establish a United States-Sub-Saharan 
     African Trade and Economic Cooperation Forum (in this section 
     referred to as the ``Forum'').
       (c) Requirements.--In creating the Forum, the President 
     shall meet the following requirements:
       (1) First meeting.--The President shall direct the 
     Secretary of Commerce, the Secretary of the Treasury, the 
     Secretary of State, and the United States Trade 
     Representative to invite their counterparts from interested 
     sub-Saharan African governments and representatives of 
     appropriate regional organizations to participate in the 
     first annual meeting to discuss expanding trade and 
     investment relations between the United States and sub-
     Saharan Africa.
       (2) Nongovernmental organizations.--
       (A) In general.--The President, in consultation with 
     Congress, shall invite United States nongovernmental 
     organizations to host meetings with their counterparts from 
     sub-Saharan Africa in conjunction with meetings of the Forum 
     for the purpose of discussing the issues described in 
     paragraph (1).
       (B) Private sector.--The President, in consultation with 
     Congress, shall invite United States representatives of the 
     private sector to host meetings with their counterparts from 
     sub-Saharan Africa in conjunction with meetings of the Forum 
     for the purpose of discussing the issues described in 
     paragraph (1).
       (3) Annual meetings.--As soon as practicable after the date 
     of enactment of this Act, the President shall meet with the 
     heads of the governments of interested sub-Saharan African 
     countries for the purpose of discussing the issues described 
     in paragraph (1).
                                  ____


                           Amendment No. 2428

       Strike sections 111 and 112, and insert:

     SEC. 111. ELIGIBILITY FOR CERTAIN BENEFITS.

       (a) In General.--Title V of the Trade Act of 1974 is 
     amended by inserting after section 506 the following new 
     section:

     ``SEC. 506A. DESIGNATION OF SUB-SAHARAN AFRICAN COUNTRIES FOR 
                   CERTAIN BENEFITS.

       ``(a) Authority To Designate.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the President is authorized to designate a country 
     listed in section 104 of the African Growth and Opportunity 
     Act as a beneficiary sub-Saharan African country eligible for 
     the benefits described in subsection (b), if the President 
     determines that the country--
       ``(A) has established, or is making continual progress 
     toward establishing--
       ``(i) a market-based economy, where private property rights 
     are protected and the principles of an open, rules-based 
     trading system are observed;
       ``(ii) a democratic society, where the rule of law, 
     political freedom, participatory democracy, and the right to 
     due process and a fair trial are observed;
       ``(iii) an open trading system through the elimination of 
     barriers to United States trade and investment and the 
     resolution of bilateral trade and investment disputes; and
       ``(iv) economic policies to reduce poverty, increase the 
     availability of health care and educational opportunities, 
     expand physical infrastructure, and promote the establishment 
     of private enterprise;
       ``(B) does not engage in gross violations of 
     internationally recognized human rights or

[[Page 27665]]

     provide support for acts of international terrorism and 
     cooperates in international efforts to eliminate human rights 
     violations and terrorist activities;
       ``(C) is taking adequate measures to prevent illegal 
     transshipment of goods that is carried out by routing, false 
     declaration concerning country of origin or place of origin, 
     falsification of official documents, evasion of United States 
     rules of origin for textile and apparel goods, or any other 
     means, in accordance with the requirements of subsection (c) 
     of section 112 of the African Growth and Opportunity Act;
       ``(D) is taking adequate measures to prevent being used as 
     a transit point for the shipment of goods in violation of the 
     Agreement on Textiles and Clothing or any other applicable 
     textile agreement; and
       ``(E) subject to the authority granted to the President 
     under section 502 (a), (d), and (e), otherwise satisfies the 
     eligibility criteria set forth in section 502.
       ``(2) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of each 
     country listed in section 104 of the African Growth and 
     Opportunity Act in meeting the requirements described in 
     paragraph (1) in order to determine the current or potential 
     eligibility of each country to be designated as a beneficiary 
     sub-Saharan African country for purposes of subsection (a). 
     The President shall include the reasons for the President's 
     determinations in the annual report required by section 115 
     of the African Growth and Opportunity Act.
       ``(3) Continuing compliance.--If the President determines 
     that a beneficiary sub-Saharan African country is not making 
     continual progress in meeting the requirements described in 
     paragraph (1), the President shall terminate the designation 
     of that country as a beneficiary sub-Saharan African country 
     for purposes of this section, effective on January 1 of the 
     year following the year in which such determination is made.
       ``(b) Preferential Tariff Treatment for Certain Articles.--
       ``(1) In general.--The President may provide duty-free 
     treatment for any article described in section 503(b)(1) (B) 
     through (G) (except for textile luggage) that is the growth, 
     product, or manufacture of a beneficiary sub-Saharan African 
     country described in subsection (a), if, after receiving the 
     advice of the International Trade Commission in accordance 
     with section 503(e), the President determines that such 
     article is not import-sensitive in the context of imports 
     from beneficiary sub-Saharan African countries.
       ``(2) Rules of origin.--The duty-free treatment provided 
     under paragraph (1) shall apply to any article described in 
     that paragraph that meets the requirements of section 
     503(a)(2), except that--
       ``(A) if the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to that article, an amount not to exceed 15 percent 
     of the appraised value of the article at the time it is 
     entered that is attributed to such United States cost or 
     value may be applied toward determining the percentage 
     referred to in subparagraph (A) of section 503(a)(2); and
       ``(B) the cost or value of the materials included with 
     respect to that article that are produced in one or more 
     beneficiary sub-Saharan African countries shall be applied in 
     determining such percentage.
       ``(c) Beneficiary Sub-Saharan African Countries, etc.--For 
     purposes of this title, the terms `beneficiary sub-Saharan 
     African country' and `beneficiary sub-Saharan African 
     countries' mean a country or countries listed in section 104 
     of the African Growth and Opportunity Act that the President 
     has determined is eligible under subsection (a) of this 
     section.''.
       (b) Waiver of Competitive Need Limitation.--Section 
     503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C. 
     2463(c)(2)(D)) is amended to read as follows:
       ``(D) Least-developed beneficiary developing countries and 
     beneficiary sub-saharan african countries.--Subparagraph (A) 
     shall not apply to any least-developed beneficiary developing 
     country or any beneficiary sub-Saharan African country.''.
       (c) Termination.--Title V of the Trade Act of 1974 is 
     amended by inserting after section 506A, as added by 
     subsection (a), the following new section:

     ``SEC. 506B. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN 
                   COUNTRIES.

       ``In the case of a country listed in section 104 of the 
     African Growth and Opportunity Act that is a beneficiary 
     developing country, duty-free treatment provided under this 
     title shall remain in effect through September 30, 2006.''.
       (d) Clerical Amendments.--The table of contents for title V 
     of the Trade Act of 1974 is amended by inserting after the 
     item relating to section 505 the following new items:

``506A. Designation of sub-Saharan African countries for certain 
              benefits.
``506B. Termination of benefits for sub-Saharan African countries.''.
       (e) Effective Date.--The amendments made by this section 
     take effect on October 1, 2000.

     SEC. 112. TREATMENT OF CERTAIN TEXTILES AND APPAREL.

       (a) Preferential Treatment.--Notwithstanding any other 
     provision of law, textile and apparel articles described in 
     subsection (b) (including textile luggage) imported from a 
     beneficiary sub-Saharan African country, described in section 
     506A(c) of the Trade Act of 1974, shall enter the United 
     States free of duty and free of any quantitative limitations, 
     if--
       (1) the country is taking adequate measures to prevent 
     illegal transshipment of goods that is carried out by 
     rerouting, false declaration concerning country of origin or 
     place of origin, falsification of official documents, evasion 
     of United States rules of origin for textile and apparel 
     goods, or any other means, in accordance with the 
     requirements of subsection (c); and
       ``(2) the country is taking adequate measures to prevent 
     being used as a transit point for the shipment of goods in 
     violation of the Agreement on Textiles and Clothing or any 
     other applicable textile agreement.
       (b) Products Covered.--The preferential treatment described 
     in subsection (a) shall apply only to the following textile 
     and apparel products:
       (1) Apparel articles assembled in beneficiary sub-saharan 
     african countries.--Apparel articles assembled in one or more 
     beneficiary sub-Saharan African countries from fabrics wholly 
     formed and cut in the United States, from yarns wholly formed 
     in the United States that are--
       (A) entered under subheading 9802.00.80 of the Harmonized 
     Tariff Schedule of the United States; or
       (B) entered under chapter 61 or 62 of the Harmonized Tariff 
     Schedule of the United States, if, after such assembly, the 
     articles would have qualified for entry under subheading 
     9802.00.80 of the Harmonized Tariff Schedule of the United 
     States but for the fact that the articles were subjected to 
     stone-washing, enzyme-washing, acid washing, perma-pressing, 
     oven-baking, bleaching, garment-dyeing, or other similar 
     processes.
       (2) Apparel articles cut and assembled in beneficiary sub-
     saharan african countries.--Apparel articles cut in one or 
     more beneficiary sub-Saharan African countries from fabric 
     wholly formed in the United States from yarns wholly formed 
     in the United States, if such articles are assembled in one 
     or more beneficiary sub-Saharan African countries with thread 
     formed in the United States.
       (3) Handloomed, handmade, and folklore articles.--A 
     handloomed, handmade, or folklore article of a beneficiary 
     sub-Saharan African country or countries that is certified as 
     such by the competent authority of such beneficiary country 
     or countries. For purposes of this paragraph, the President, 
     after consultation with the beneficiary sub-Saharan African 
     country or countries concerned, shall determine which, if 
     any, particular textile and apparel goods of the country (or 
     countries) shall be treated as being handloomed, handmade, or 
     folklore goods.
       (c) Customs Procedures and Enforcement.--
       (1) Obligations of importers and parties on whose behalf 
     apparel and textiles are imported.--
       (A) In general.--Notwithstanding any other provision of 
     law, all imports to the United States of textile and apparel 
     goods pursuant to this Act shall be accompanied by--
       (i)(I) the name and address of the manufacturer or producer 
     of the goods, and any other information with respect to the 
     manufacturer or producer that the Customs Service may 
     require; and
       (II) if there is more than one manufacturer or producer, or 
     if there is a contractor or subcontractor of the manufacturer 
     or producer with respect to the manufacture or production of 
     the goods, the information required under subclause (I) with 
     respect to each such manufacturer, producer, contractor, or 
     subcontractor, including a description of the process 
     performed by each such entity;
       (ii) a certification by the importer of record that the 
     importer has exercised reasonable care to ascertain the true 
     country of origin of the textile and apparel goods and the 
     accuracy of all other information provided on the 
     documentation accompanying the imported goods, as well as a 
     certification of the specific action taken by the importer to 
     ensure reasonable care for purposes of this paragraph; and
       (iii) a certification by the importer that the goods being 
     entered do not violate applicable trademark, copyright, and 
     patent laws.
       (B) Liability.--The importer of record and the final retail 
     seller of the merchandise shall be jointly liable for any 
     material false statement, act, or omission made with the 
     intention or effect of--
       (i) circumventing any quota that applies to the 
     merchandise; or
       (ii) avoiding any duty that would otherwise be applicable 
     to the merchandise.
       (2) Obligations of countries to take action against 
     transshipment and circumvention.--The President shall ensure 
     that any country in sub-Saharan Africa that intends to import 
     textile and apparel goods into the United States--
       (A) has in place adequate measures to guard against 
     unlawful transshipment of textile and apparel goods and the 
     use of counterfeit documents; and

[[Page 27666]]

       (B) will cooperate fully with the United States to address 
     and take action necessary to prevent circumvention of any 
     provision of this section or of any agreement regulating 
     trade in apparel and textiles between that country and the 
     United States.
       (3) Standards of proof.--
       (A) For importers and retailers.--
       (i) In general.--The United States Customs Service (in this 
     Act referred to as the ``Customs Service'') shall seek 
     imposition of a penalty against an importer or retailer for a 
     violation of any provision of this section if the Customs 
     Service determines, after appropriate investigation, that 
     there is a substantial likelihood that the violation 
     occurred.
       (ii) Use of best available information.--If an importer or 
     retailer fails to cooperate with the Customs Service in an 
     investigation to determine if there has been a violation of 
     any provision of this section, the Customs Service shall base 
     its determination on the best available information.
       (B) For countries.--
       (i) In general.--The President may determine that a country 
     is not taking adequate measures to prevent illegal 
     transshipment of goods or to prevent being used as a transit 
     point for the shipment of goods in violation of this section 
     if the Customs Service determines, after consultations with 
     the country concerned, that there is a substantial likelihood 
     that a violation of this section occurred.
       (ii) Use of best available information.--

       (I) In general.--If a country fails to cooperate with the 
     Customs Service in an investigation to determine if an 
     illegal transshipment has occurred, the Customs Service shall 
     base its determination on the best available information.
       (II) Examples.--Actions indicating failure of a country to 
     cooperate under subclause (I) include--

       (aa) denying or unreasonably delaying entry of officials of 
     the Customs Service to investigate violations of, or promote 
     compliance with, this section or any textile agreement;
       (bb) providing appropriate United States officials with 
     inaccurate or incomplete information, including information 
     required under the provisions of this section; and
       (cc) denying appropriate United States officials access to 
     information or documentation relating to production capacity 
     of, and outward processing done by, manufacturers, producers, 
     contractors, or subcontractors within the country.
       (4) Penalties.--
       (A) For importers and retailers.--The penalty for a 
     violation of any provision of this section by an importer or 
     retailer of textile and apparel goods--
       (i) for a first offense (except as provided in clause 
     (iii)), shall be a civil penalty in an amount equal to 200 
     percent of the declared value of the merchandise, plus 
     forfeiture of the merchandise;
       (ii) for a second offense (except as provided in clause 
     (iii)), shall be a civil penalty in an amount equal to 400 
     percent of the declared value of the merchandise, plus 
     forfeiture of the merchandise, and, shall be punishable by a 
     fine of not more than $100,000, imprisonment for not more 
     than 1 year, or both; and
       (iii) for a third or subsequent offense, or for a first or 
     second offense if the violation of the provision of this 
     section is committed knowingly and willingly, shall be 
     punishable by a fine of not more than $1,000,000, 
     imprisonment for not more than 5 years, or both, and, in 
     addition, shall result in forfeiture of the merchandise.
       (B) For countries.--If a country fails to undertake the 
     measures or fails to cooperate as required by this section, 
     the President shall impose a quota on textile and apparel 
     goods imported from the country, based on the volume of such 
     goods imported during the first 12 of the preceding 24 
     months, or shall impose a duty on the apparel or textile 
     goods of the country, at a level designed to secure future 
     cooperation.
       (5) Applicability of united states laws and procedures.--
     All provisions of the laws, regulations, and procedures of 
     the United States relating to the denial of entry of articles 
     or penalties against individuals or entities for engaging in 
     illegal transshipment, fraud, or other violations of the 
     customs laws, shall apply to imports of textiles and apparel 
     from sub-Saharan African countries, in addition to the 
     specific provisions of this section.
       (6) Monitoring and reports to congress.--Not later than 
     March 31 of each year, the Customs Service shall monitor and 
     the Commissioner of Customs shall submit to Congress a report 
     on the measures taken by each country in sub-Saharan Africa 
     that imports textiles or apparel goods into the United 
     States--
       (A) to prevent transshipment; and
       (B) to prevent circumvention of this section or of any 
     agreement regulating trade in textiles and apparel between 
     that country and the United States.
       (d) Additional Enforcement.--A citizen of the United States 
     shall have a cause of action in the United States district 
     court in the district in which the citizen resides or in any 
     other appropriate district to seek compliance with the 
     standards set forth under section 506A(a)(1) (C) and (D) of 
     the Trade Act of 1974 and subsection (c) of this section, 
     with respect to any sub-Saharan African country, including a 
     cause of action in an appropriate United States district 
     court for other appropriate equitable relief. In addition to 
     any other relief sought in such an action, a citizen may seek 
     three times the value of any damages caused by the failure of 
     a country or company to comply. The amount of damages 
     described in the preceding sentence shall be paid by the 
     business enterprise (or business enterprises) the operations 
     or conduct of which is responsible for the failure to meet 
     the standards set forth under subparagraphs (A) through (E) 
     of section 506A(a)(1) of the Trade Act of 1974 and subsection 
     (c) of this section.
       (e) Definition.--In this section, the term ``Agreement on 
     Textiles and Clothing'' means 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)).
       (f) Effective Date.--The amendments made by this section 
     take effect on October 1, 2000 and shall remain in effect 
     through September 30, 2006.
                                 ______
                                 

                      HOLLINGS AMENDMENT NO. 2429

  (Ordered to lie on the table.)
  Mr. HOLLINGS submitted an amendment intended to be proposed by him to 
the bill, H.R. 434, supra; as follows:

       At the appropriate place in the bill, insert the following:

     SEC.   . ENVIRONMENTAL AGREEMENT REQUIRED.

       The benefits provided by the amendments made by this Act 
     shall not be available to any country until--
       (1) the President has negotiated with that country a side 
     agreement concerning a side agreement concerning the 
     environment, similar to the North American Environment 
     Cooperation Agreement; and
       (2) submitted that agreement to the Congress.
                                 ______
                                 

                      LANDRIEU AMENDMENT NO. 2430

  (Ordered to lie on the table.)
  Ms. LANDRIEU submitted an amendment intended to be proposed by her to 
the bill, H.R. 434, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC.  . LIMITATIONS ON PREFERENTIAL TREATMENT.

       Notwithstanding any other provision of law, the President 
     may not exercise the authority to extend preferential tariff 
     treatment to any country in sub-Saharan Africa provided for 
     in this Act, unless the President determines that the per 
     capita gross national product of the country (calculated on 
     the basis of the best available information including that of 
     the International Bank for Reconstruction and Development) is 
     not more than 5 times the average per capita gross national 
     product of all sub-Saharan African countries eligible for 
     such preferential tariff treatment under the Act.

                          ____________________