[Congressional Record (Bound Edition), Volume 157 (2011), Part 10]
[Senate]
[Pages 14059-14064]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 644. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 633 submitted by Mr. Casey (for himself, Mr. Brown of 
Ohio, and Mr. Baucus) to the bill H.R. 2832, to extend the Generalized 
System of Preferences, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 9, line 23, insert ``but not more than 10 percent'' 
     after ``not less than 5 percent''.
                                 ______
                                 
  SA 645. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 633 submitted by Mr. Casey (for himself, Mr. Brown of 
Ohio, and Mr. Baucus) to the bill H.R. 2832, to extend the Generalized 
System of Preferences, and for other purposes; as follows:

       Strike section 221 and insert the following:

     SEC. 221. REPEAL OF TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

       (a) In General.--Notwithstanding section 233 or any other 
     provision of this subtitle--
       (1) effective October 1, 2011, chapter 3 of title II of the 
     Trade Act of 1974 (19 U.S.C. 2341 et seq.) is repealed; and
       (2) no technical assistance or grants may be provided under 
     that chapter on or after that date.
       (b) Clerical Amendment.--The table of contents for the 
     Trade Act of 1974 is amended by striking the items relating 
     to chapter 3 of title II.
                                 ______
                                 
  SA 646. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 633 submitted by Mr. Casey (for himself, Mr. Brown of 
Ohio, and Mr. Baucus) to the bill H.R. 2832, to extend the Generalized 
System of Preferences, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 45, between lines 5 and 6, insert the following:

     SEC. 234. REPEAL OF TRADE ADJUSTMENT ASSISTANCE.

       Effective January 1, 2015--
       (1) chapters 2, 3, 4, 5, and 6 of title II of the Trade Act 
     of 1974 (19 U.S.C. 2271 et seq.) are repealed; and
       (2) the table of contents for the Trade Act of 1974 is 
     amended by striking the items relating to chapters 2, 3, 4, 
     5, and 6 of title II.
                                 ______
                                 
  SA 647. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 633 submitted by Mr. Casey (for himself, Mr. Brown of 
Ohio, and Mr. Baucus) to the bill H.R. 2832, to extend the Generalized 
System of Preferences, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 19, between lines 2 and 3, insert the following:

     SEC. 217. IMPOSITION OF FEE ON FIRMS THAT BENEFIT FROM TRADE 
                   ADJUSTMENT ASSISTANCE FOR WORKERS.

       (a) Establishment.--Not later than January 1, 2012, the 
     Secretary of Labor shall establish a system to impose a fee 
     on a fiscal year basis on firms described in subsection (b) 
     to recoup the costs incurred by the Federal Government of 
     providing benefits under and administering trade adjustment 
     assistance for workers under chapter 2 of title II of the 
     Trade Act of 1974 (19 U.S.C. 2271 et seq.).
       (b) Firms Described.--
       (1) In general.--Except as provided in paragraph (2), a 
     firm described in this paragraph is a firm from which a group 
     of workers is totally or partially separated on or after the 
     date of the enactment of this Act if that group of workers is 
     subsequently certified under section 222 of the Trade Act of 
     1974 (19 U.S.C. 2272) as eligible to apply for trade 
     adjustment assistance under chapter 2 of title II of that Act 
     (19 U.S.C. 2271 et seq.) as a result of the workers' 
     separation from that firm.
       (2) Exception for firms in bankruptcy.--The fee imposed 
     under subsection (a) shall not be imposed on a firm that has 
     filed for bankruptcy protection under title 11, United States 
     Code.
       (c) Total Amount of Fee.--The Secretary of Labor shall 
     determine the amount of fees to be imposed under subsection 
     (a) so that the amount of fees collected equals the amount 
     expended by the Federal Government in the fiscal year 
     preceding the fiscal year in which the fees are imposed to 
     provide benefits under and administer trade adjustment 
     assistance for workers under chapter 2 of title II of the 
     Trade Act of 1974 (19 U.S.C. 2271 et seq.).
       (d) Imposition of Fee.--The Secretary of Labor shall impose 
     the fee under subsection (a) on a firm described in 
     subsection (b)--
       (1) for each fiscal year during which any worker separated 
     from the firm receives trade adjustment assistance under 
     chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 
     2271 et seq.) or remains eligible to apply for such 
     assistance; and
       (2) based on the number of workers described in paragraph 
     (1) separated from the firm.
       (e) Use of Fees.--Any fees collected pursuant to subsection 
     (a) shall be deposited in the general fund of the Treasury 
     and used to offset the costs of providing benefits under and 
     administering trade adjustment assistance for workers under 
     chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 
     2271 et seq.).
       (f) Termination.--This section shall terminate on the date 
     that is one year after the

[[Page 14060]]

     date on which all expenditures by the Federal Government to 
     provide benefits under or administer trade adjustment 
     assistance for workers under chapter 2 of title II of the 
     Trade Act of 1974 (19 U.S.C. 2271 et seq.) have terminated.
                                 ______
                                 
  SA 648. Mr. MERKLEY (for himself, Mr. Enzi, and Mr. Barrasso) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2832, to extend the Generalized System of Preferences, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

                        TITLE __--MISCELLANEOUS

     SEC. _01. MANDATORY DISCLOSURE BY THE UNITED STATES IF 
                   MEMBERS OF THE WORLD TRADE ORGANIZATION FAIL TO 
                   DISCLOSE SUBSIDIES UNDER THE AGREEMENT ON 
                   SUBSIDIES AND COUNTERVAILING MEASURES.

       (a) In General.--The United States Trade Representative 
     shall--
       (1) review each notification of subsidies submitted under 
     Article 25 of the Agreement on Subsidies and Countervailing 
     Measures by a member of the World Trade Organization with 
     which the United States maintains a material and persistent 
     trade deficit;
       (2) identify any such member that, for 2 consecutive 
     years--
       (A) fails to submit such a notification; or
       (B) omits information or includes inaccurate information in 
     such a notification that is material with respect to the 
     totality of the subsidies of the member; and
       (3) notify the Committee on Subsidies and Countervailing 
     Measures under Article 25 of the Agreement on Subsidies and 
     Countervailing Measures of the subsidies of a member 
     identified under paragraph (2) not later than 180 days 
     after--
       (A) in the case of a member identified under paragraph 
     (2)(A), the date on which the second notification not 
     submitted by the member was required to be submitted; or
       (B) in the case of a member identified under paragraph 
     (2)(B), the date of the submission of the second notification 
     in which the information was omitted or the inaccurate 
     information was included, as the case may be.
       (b) Agreement on Subsidies and Countervailing Measures 
     Defined.--The term ``Agreement on Subsidies and 
     Countervailing Measures'' means the Agreement on Subsidies 
     and Countervailing Measures referred to in section 101(d)(12) 
     of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
                                 ______
                                 
  SA 649. Mr. BROWN of Ohio (for himself, Ms. Snowe, and Mr. Casey) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2832, to extend the Generalized System of Preferences, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

              TITLE _--FUNDAMENTALLY UNDERVALUED CURRENCY

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Currency Reform for Fair 
     Trade Act''.

     SEC. _02. CLARIFICATION REGARDING DEFINITION OF 
                   COUNTERVAILABLE SUBSIDY.

       (a) Benefit Conferred.--Section 771(5)(E) of the Tariff Act 
     of 1930 (19 U.S.C. 1677(5)(E)) is amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) in clause (iv), by striking the period at the end and 
     inserting ``, and''; and
       (3) by inserting after clause (iv) the following new 
     clause:
       ``(v) in the case in which the currency of a country in 
     which the subject merchandise is produced is exchanged for 
     foreign currency obtained from export transactions, and the 
     currency of such country is a fundamentally undervalued 
     currency, as defined in paragraph (37), the difference 
     between the amount of the currency of such country provided 
     and the amount of the currency of such country that would 
     have been provided if the real effective exchange rate of the 
     currency of such country were not undervalued, as determined 
     pursuant to paragraph (38).''.
       (b) Export Subsidy.--Section 771(5A)(B) of the Tariff Act 
     of 1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the 
     end the following new sentence: ``In the case of a subsidy 
     relating to a fundamentally undervalued currency, the fact 
     that the subsidy may also be provided in circumstances not 
     involving export shall not, for that reason alone, mean that 
     the subsidy cannot be considered contingent upon export 
     performance.''.
       (c) Definition of Fundamentally Undervalued Currency.--
     Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is 
     amended by adding at the end the following new paragraph:
       ``(37) Fundamentally undervalued currency.--The 
     administering authority shall determine that the currency of 
     a country in which the subject merchandise is produced is a 
     `fundamentally undervalued currency' if--
       ``(A) the government of the country (including any public 
     entity within the territory of the country) engages in 
     protracted, large-scale intervention in one or more foreign 
     exchange markets during part or all of the 18-month period 
     that represents the most recent 18 months for which the 
     information required under paragraph (38) is reasonably 
     available, but that does not include any period of time later 
     than the final month in the period of investigation or the 
     period of review, as applicable;
       ``(B) the real effective exchange rate of the currency is 
     undervalued by at least 5 percent, on average and as 
     calculated under paragraph (38), relative to the equilibrium 
     real effective exchange rate for the country's currency 
     during the 18-month period;
       ``(C) during the 18-month period, the country has 
     experienced significant and persistent global current account 
     surpluses; and
       ``(D) during the 18-month period, the foreign asset 
     reserves held by the government of the country exceed--
       ``(i) the amount necessary to repay all debt obligations of 
     the government falling due within the coming 12 months;
       ``(ii) 20 percent of the country's money supply, using 
     standard measures of M2; and
       ``(iii) the value of the country's imports during the 
     previous 4 months.''.
       (d) Definition of Real Effective Exchange Rate 
     Undervaluation.--Section 771 of the Tariff Act of 1930 (19 
     U.S.C. 1677), as amended by subsection (c) of this section, 
     is further amended by adding at the end the following new 
     paragraph:
       ``(38) Real effective exchange rate undervaluation.--The 
     calculation of real effective exchange rate undervaluation, 
     for purposes of paragraph (5)(E)(v) and paragraph (37), 
     shall--
       ``(A)(i) rely upon, and where appropriate be the simple 
     average of, the results yielded from application of the 
     approaches described in the guidelines of the International 
     Monetary Fund's Consultative Group on Exchange Rate Issues; 
     or
       ``(ii) if the guidelines of the International Monetary 
     Fund's Consultative Group on Exchange Rate Issues are not 
     available, be based on generally accepted economic and 
     econometric techniques and methodologies to measure the level 
     of undervaluation;
       ``(B) rely upon data that are publicly available, reliable, 
     and compiled and maintained by the International Monetary 
     Fund or, if the International Monetary Fund cannot provide 
     the data, by other international organizations or by national 
     governments; and
       ``(C) use inflation-adjusted, trade-weighted exchange 
     rates.''.

     SEC. _03. REPORT ON IMPLEMENTATION OF TITLE.

       (a) In General.--Not later than 9 months after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a report on the 
     implementation of the amendments made by this title.
       (b) Matters To Be Included.--The report required by 
     subsection (a) shall include a description of the extent to 
     which United States industries that have been materially 
     injured by reason of imports of subject merchandise produced 
     in foreign countries with fundamentally undervalued 
     currencies have received relief under title VII of the Tariff 
     Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this 
     title.

     SEC. _04. APPLICATION TO GOODS FROM CANADA AND MEXICO.

       Pursuant to article 1902 of the North American Free Trade 
     Agreement and section 408 of the North American Free Trade 
     Agreement Implementation Act of 1993 (19 U.S.C. 3438), the 
     amendments made by section _02 of this title shall apply to 
     goods from Canada and Mexico.
                                 ______
                                 
  SA 650. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill H.R. 2832, to extend the Generalized System of 
Preferences, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                         TITLE ___--ITC REPORT

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Quantifying the Effects of 
     Failure to Act on Trade Act''.

     SEC. __02. ITC REPORT.

       (a) In General.--
       (1) Failure to act on agreement.--Not later than 2 years 
     after the date that the President enters into a trade 
     agreement, the International Trade Commission shall submit a 
     report described in subsection (b) to Congress, if --
       (A) legislation to implement the agreement has not been 
     submitted to Congress;
       (B) a bill to implement the agreement has not been 
     considered by either House of Congress; or
       (C) the agreement has not entered into force with respect 
     to the United States.
       (2) Follow up report.--The International Trade Commission 
     shall update the report required by paragraph (1) each year 
     thereafter, if legislation to implement the agreement has not 
     been submitted to Congress, a bill to implement the agreement 
     has not been considered by either House of Congress, or the 
     agreement has not entered into force.
       (b) Contents of Report.--The report required by subsection 
     (a) shall contain the following:

[[Page 14061]]

       (1) A quantitative analysis of the impact on United States 
     businesses and individuals caused by the delay in the 
     implementation of the agreement. The analysis shall examine 
     all relevant factors impacting United States businesses and 
     individuals, including--
       (A) lost market shares for United States exports in foreign 
     markets resulting from new trade agreements implemented 
     between the country with respect to which the trade agreement 
     was entered into and any other country, and market shares 
     lost for United States exports resulting from any other 
     factor;
       (B) how the delay in implementing the agreement is 
     affecting the advancement of United States trade objectives, 
     described in the Bipartisan Trade Promotion Authority Act of 
     2002 (or any subsequent trade promotion authority); and
       (C) how the delay in implementing the agreement is 
     affecting the protection of intellectual property rights of 
     United States businesses operating in foreign markets.
       (2) The impact on employment in the United States resulting 
     from the delay in implementing the agreement.
       (3) An estimate of the probable impact on United States 
     businesses, in terms of exports, profitability, and 
     employment, if the trade agreement does not enter into force 
     by the end of the calendar year following the date of the 
     Commission report
       (c) Applicability.--The International Trade Commission 
     shall submit the report required by this section with respect 
     to--
       (1) any trade agreement entered into on or after the date 
     of the enactment of this Act; and
       (2) any trade agreement entered into before the date of the 
     enactment of this Act if such agreement has not entered into 
     force with respect to the United States by June 30, 2012.
                                 ______
                                 
  SA 651. Mr. RUBIO submitted an amendment intended to be proposed to 
amendment SA 633 submitted by Mr. Casey (for himself, Mr. Brown of 
Ohio, and Mr. Baucus) to the bill H.R. 2832, to extend the Generalized 
System of Preferences, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 5 of the amendment, between lines 6 and 7, insert 
     the following:

     SEC. 212. REQUIREMENT THAT TO BE ELIGIBLE FOR TRADE 
                   ADJUSTMENT ASSISTANCE WORKERS BE LAID OFF 
                   BECAUSE OF IMPORTS FROM, OR A SHIFT IN 
                   PRODUCTION TO, A COUNTRY WITH WHICH THE UNITED 
                   STATES HAS A FREE TRADE AGREEMENT IN EFFECT.

       Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as 
     amended by section 211 of this Act, is further amended by 
     striking subsection (a) and inserting the following:
       ``(a) In General.--A group of workers shall be certified by 
     the Secretary as eligible to apply for adjustment assistance 
     under this chapter pursuant to a petition filed under section 
     221 if the Secretary determines that--
       ``(1) a significant number or proportion of the workers in 
     such workers' firm have become totally or partially 
     separated, or are threatened to become totally or partially 
     separated; and
       ``(2)(A)(i) the sales or production, or both, of such firm 
     have decreased absolutely;
       ``(ii)(I) imports from a country with which the United 
     States has a free trade agreement in effect of articles or 
     services like or directly competitive with articles produced 
     or services supplied by such firm have increased;
       ``(II) imports from such a country of articles like or 
     directly competitive with articles--
       ``(aa) into which one or more component parts produced by 
     such firm are directly incorporated, or
       ``(bb) which are produced directly using services supplied 
     by such firm,
     have increased; or
       ``(III) imports of articles directly incorporating one or 
     more component parts produced in such a country that are like 
     or directly competitive with imports of articles 
     incorporating one or more component parts produced by such 
     firm have increased; and
       ``(iii) the increase in imports described in clause (ii) 
     contributed importantly to such workers' separation or threat 
     of separation and to the decline in the sales or production 
     of such firm; or
       ``(B)(i)(I) there has been a shift by such workers' firm to 
     a country with which the United States has a free trade 
     agreement in effect in the production of articles or the 
     supply of services like or directly competitive with articles 
     which are produced or services which are supplied by such 
     firm; or
       ``(II) such workers' firm has acquired from such a country 
     articles or services that are like or directly competitive 
     with articles which are produced or services which are 
     supplied by such firm; and
       ``(ii) the shift described in clause (i)(I) or the 
     acquisition of articles or services described in clause 
     (i)(II) contributed importantly to such workers' separation 
     or threat of separation.''.
                                 ______
                                 
  SA 652. Mr. REID (for Mrs. Murray) proposed an amendment to the bill 
S. 633, to prevent fraud in small business contracting, and for other 
purposes; as follows:

       On page 10, beginning on line 8, strike ``Not later than 1 
     year after the date of enactment of this Act, the'' and 
     insert ``The''.
       On page 10, between lines 15 and 16, insert the following:
       (d) Effective Date.--
       (1) In general.--The amendment made by subsection (b) and 
     the requirements under subsection (c) shall take effect on 
     the date on which the Secretary of Veterans Affairs (referred 
     to in this subsection as the ``Secretary'') publishes in the 
     Federal Register a determination that the Department of 
     Veterans Affairs has the necessary resources and capacity to 
     carry out the additional responsibility of determining 
     whether small business concerns registered with the VetBiz 
     database of the Department of Veterans Affairs are owned and 
     controlled by a veteran or a service-disabled veteran, as the 
     case may be, in accordance with subsection (g) of section 4 
     of the Small Business Act (15 U.S.C. 633), as added by 
     subsection (b).
       (2) Timeline.--If the Secretary determines that the 
     Secretary is not able to publish the determination under 
     paragraph (1) before the date that is 1 year after the date 
     of enactment of this Act, the Secretary shall, not later than 
     1 year after the date of enactment of this Act, submit a 
     report containing an estimate of the date on which the 
     Secretary will publish the determination under paragraph (1) 
     to the Committee on Small Business and Entrepreneurship and 
     the Committee on Veterans' Affairs of the Senate and the 
     Committee on Small Business and the Committee on Veterans' 
     Affairs of the House of Representatives.
                                 ______
                                 
  SA 653. Mr. INOUYE submitted an amendment intended to be proposed by 
him to the bill H.R. 2832, to extend the Generalized System of 
Preferences, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

         TITLE __--PREFERENTIAL DUTY TREATMENT FOR PHILIPPINES

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Save Our Industries Act of 
     2011'' or the ``SAVE Act''.

     SEC. __02. FINDINGS; PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The United States and the Republic of the Philippines 
     (in this title 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 title are--

[[Page 14062]]

       (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. __03. DEFINITIONS.

       In this title:
       (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. __04. 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, 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

[[Page 14063]]

     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.
       (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 title.
       (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 transshipment.--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 title. 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. __05. EFFECTIVE DATE.

       This title 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 __04(i).

[[Page 14064]]



     SEC. __06. TERMINATION.

       (a) In General.--The preferential duty treatment provided 
     under this title shall remain in effect for a period of 7 
     years beginning on the effective date provided for in section 
     __05.
       (b) GSP Eligibility.--The preferential duty treatment 
     provided under this title 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.).
                                 ______
                                 
  SA 654. Mr. INOUYE submitted an amendment intended to be proposed by 
him to the bill H.R. 2832, to extend the Generalized System of 
Preferences, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                  TITLE _--MODIFICATION OF TONNAGE TAX

     SEC. __. MODIFICATION OF THE APPLICATION OF THE TONNAGE TAX 
                   ON VESSELS OPERATING IN THE DUAL UNITED STATES 
                   DOMESTIC AND FOREIGN TRADES.

       (a) In General.--Subsection (f) of section 1355 of the 
     Internal Revenue Code of 1986 (relating to definitions and 
     special rules) is amended to read as follows:
       ``(f) Effect of Operating a Qualifying Vessel in the Dual 
     United States Domestic and Foreign Trades.--For purposes of 
     this subchapter--
       ``(1) an electing corporation shall be treated as 
     continuing to use a qualifying vessel in the United States 
     foreign trade during any period of use in the United States 
     domestic trade, and
       ``(2) gross income from such United States domestic trade 
     shall not be excluded under section 1357(a), but shall not be 
     taken into account for purposes of section 1353(b)(1)(B) or 
     for purposes of section 1356 in connection with the 
     application of section 1357 or 1358.''.
       (b) Regulatory Authority for Allocation of Credits, Income, 
     and Deductions.--Section 1358 of the Internal Revenue Code of 
     1986 (relating to allocation of credits, income, and 
     deductions) is amended--
       (1) by striking ``in accordance with this subsection'' in 
     subsection (c) and inserting ``to the extent provided in such 
     regulations as may be prescribed by the Secretary'', and
       (2) by adding at the end the following new subsection:
       ``(d) Regulations.--The Secretary shall prescribe 
     regulations consistent with the provisions of this subchapter 
     for the purpose of allocating gross income, deductions, and 
     credits between or among qualifying shipping activities and 
     other activities of a taxpayer.''.
       (c) Conforming Amendments.--
       (1) Section 1355(a)(4) of the Internal Revenue Code of 1986 
     is amended by striking ``exclusively''.
       (2) Section 1355(b)(1)(B) of such Code is amended by 
     striking ``as a qualifying vessel'' and inserting ``in the 
     transportation of goods or passengers''.
       (3) Section 1355 of such Code is amended--
       (A) by striking subsection (g), and
       (B) by redesignating subsection (h) as subsection (g).
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                          ____________________