[107th Congress Public Law 43]
[From the U.S. Government Printing Office]


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[DOCID: f:publ043.107]


[[Page 115 STAT. 243]]

Public Law 107-43
107th Congress

                                 An Act


 
  To implement the agreement establishing a United States-Jordan free 
          trade area. <<NOTE: Sept. 28, 2001 -  [H.R. 2603]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: United States-
Jordan Free Trade Area Implementation Act. Exports and imports. 19 USC 
2112 note.>> 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Jordan Free Trade Area 
Implementation Act''.

SEC. 2. PURPOSES. <<NOTE: 19 USC 2112 note.>> 

    The purposes of this Act are--
            (1) to implement the agreement between the United States and 
        Jordan establishing a free trade area;
            (2) to strengthen and develop the economic relations between 
        the United States and Jordan for their mutual benefit; and
            (3) to establish free trade between the 2 nations through 
        the removal of trade barriers.

SEC. 3. DEFINITIONS. <<NOTE: 19 USC 2112 note.>> 

    For purposes of this Act:
            (1) Agreement.--The term ``Agreement'' means the Agreement 
        between the United States of America and the Hashemite Kingdom 
        of Jordan on the Establishment of a Free Trade Area, entered 
        into on October 24, 2000.
            (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.

             TITLE I--TARIFF MODIFICATIONS; RULES OF ORIGIN

SEC. 101. TARIFF MODIFICATIONS. <<NOTE: 19 USC 2112 note.>> 

    (a) Tariff Modifications Provided for in the Agreement.--The 
President may proclaim--
            (1) such modifications or continuation of any duty;
            (2) such continuation of duty-free or excise treatment; or
            (3) such additional duties,

as the President determines to be necessary or appropriate to carry out 
article 2.1 of the Agreement and the schedule of duty reductions with 
respect to Jordan set out in Annex 2.1 of the Agreement.
    (b) Other Tariff Modifications.--The President may proclaim--
            (1) such modifications or continuation of any duty;

[[Page 115 STAT. 244]]

            (2) such continuation of duty-free or excise treatment; or
            (3) such additional duties,

as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Jordan provided for by the Agreement.

SEC. 102. <<NOTE: 19 USC 2112 note.>>  RULES OF ORIGIN.

    (a) In General.--
            (1) Eligible articles.--
                    (A) In general.--The reduction or elimination of any 
                duty imposed on any article by the United States 
                provided for in the Agreement shall apply only if--
                          (i) that article is imported directly from 
                      Jordan into the customs territory of the United 
                      States; and
                          (ii) that article--
                                    (I) is wholly the growth, product, 
                                or manufacture of Jordan; or
                                    (II) is a new or different article 
                                of commerce that has been grown, 
                                produced, or manufactured in Jordan and 
                                meets the requirements of subparagraph 
                                (B).
                    (B) Requirements.--
                          (i) General rule.--The requirements of this 
                      subparagraph are that with respect to an article 
                      described in subparagraph (A)(ii)(II), the sum 
                      of--
                                    (I) the cost or value of the 
                                materials produced in Jordan, plus
                                    (II) the direct costs of processing 
                                operations performed in Jordan,
                      is not less than 35 percent of the appraised value 
                      of such article at the time it is entered.
                          (ii) Materials produced in united states.--If 
                      the cost or value of materials produced in the 
                      customs territory of the United States is included 
                      with respect to an article to which this paragraph 
                      applies, an amount not to exceed 15 percent of the 
                      appraised value of the article at the time it is 
                      entered that is attributable to such United States 
                      cost or value may be applied toward determining 
                      the percentage referred to in clause (i).
            (2) Exclusions.--No article may be considered to meet the 
        requirements of paragraph (1)(A) by virtue of having merely 
        undergone--
                    (A) simple combining or packaging operations; or
                    (B) mere dilution with water or mere dilution with 
                another substance that does not materially alter the 
                characteristics of the article.

    (b) Direct Costs of Processing Operations.--
            (1) In general.--As used in this section, the term ``direct 
        costs of processing operations'' includes, but is not limited 
        to--
                    (A) all actual labor costs involved in the growth, 
                production, manufacture, or assembly of the specific 
                merchandise, including fringe benefits, on-the-job 
                training, and the cost of engineering, supervisory, 
                quality control, and similar personnel; and

[[Page 115 STAT. 245]]

                    (B) dies, molds, tooling, and depreciation on 
                machinery and equipment which are allocable to the 
                specific merchandise.
            (2) Excluded costs.--The term ``direct costs of processing 
        operations'' does not include costs which are not directly 
        attributable to the merchandise concerned, or are not costs of 
        manufacturing the product, such as--
                    (A) profit; and
                    (B) general expenses of doing business which are 
                either not allocable to the specific merchandise or are 
                not related to the growth, production, manufacture, or 
                assembly of the merchandise, such as administrative 
                salaries, casualty and liability insurance, advertising, 
                and salesmen's salaries, commissions, or expenses.

    (c) Textile and Apparel Articles.--
            (1) In general.--A textile or apparel article imported 
        directly from Jordan into the customs territory of the United 
        States shall be considered to meet the requirements of paragraph 
        (1)(A) of subsection (a) only if--
                    (A) the article is wholly obtained or produced in 
                Jordan;
                    (B) the article is a yarn, thread, twine, cordage, 
                rope, cable, or braiding, and--
                          (i) the constituent staple fibers are spun in 
                      Jordan, or
                          (ii) the continuous filament is extruded in 
                      Jordan;
                    (C) the article is a fabric, including a fabric 
                classified under chapter 59 of the HTS, and the 
                constituent fibers, filaments, or yarns are woven, 
                knitted, needled, tufted, felted, entangled, or 
                transformed by any other fabric-making process in 
                Jordan; or
                    (D) the article is any other textile or apparel 
                article that is wholly assembled in Jordan from its 
                component pieces.
            (2) Definition.--For purposes of paragraph (1), an article 
        is ``wholly obtained or produced in Jordan'' if it is wholly the 
        growth, product, or manufacture of Jordan.
            (3) Special rules.--
                    (A) Certain made-up articles, textile articles in 
                the piece, and certain other textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, subparagraph (A), (B), or (C) of paragraph 
                (1), as appropriate, shall determine whether a good that 
                is classified under one of the following headings or 
                subheadings of the HTS shall be considered to meet the 
                requirements of paragraph (1)(A) of subsection (a): 
                5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 
                6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
                    (B) Certain knit-to-shape textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, a textile or apparel article which is knit-
                to-shape in Jordan shall be considered to meet the 
                requirements of paragraph (1)(A) of subsection (a).
                    (C) Certain dyed and printed textiles and textile 
                articles.--Notwithstanding paragraph (1)(D), a good 
                classified under heading 6117.10, 6213.00, 6214.00.

[[Page 115 STAT. 246]]

                6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 
                6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 
                6304.99, 9404.90.85, or 9404.90.95 of the HTS, except 
                for a good classified under any such heading as of 
                cotton or of wool or consisting of fiber blends 
                containing 16 percent or more by weight of cotton, shall 
                be considered to meet the requirements of paragraph 
                (1)(A) of subsection (a) if the fabric in the good is 
                both dyed and printed in Jordan, and such dyeing and 
                printing is accompanied by 2 or more of the following 
                finishing operations: bleaching, shrinking, fulling, 
                napping, decating, permanent stiffening, weighting, 
                permanent embossing, or moireing.
                    (D) Fabrics of silk, cotton, manmade fiber or 
                vegetable fiber.--Notwithstanding paragraph (1)(C), a 
                fabric classified under the HTS as of silk, cotton, man-
                made fiber, or vegetable fiber shall be considered to 
                meet the requirements of paragraph (1)(A) of subsection 
                (a) if the fabric is both dyed and printed in Jordan, 
                and such dyeing and printing is accompanied by 2 or more 
                of the following finishing operations: bleaching, 
                shrinking, fulling, napping, decating, permanent 
                stiffening, weighting, permanent embossing, or moireing.
            (4) Multicountry rule.--If the origin of a textile or 
        apparel article cannot be determined under paragraph (1) or (3), 
        then that article shall be considered to meet the requirements 
        of paragraph (1)(A) of subsection (a) if--
                    (A) the most important assembly or manufacturing 
                process occurs in Jordan; or
                    (B) if the applicability of paragraph (1)(A) of 
                subsection (a) cannot be determined under subparagraph 
                (A), the last important assembly or manufacturing occurs 
                in Jordan.

    (d) Exclusion.--A good shall not be considered to meet the 
requirements of paragraph (1)(A) of subsection (a) if the good--
            (1) is imported into Jordan, and, at the time of 
        importation, would be classified under heading 0805 of the HTS; 
        and
            (2) is processed in Jordan into a good classified under any 
        of subheadings 2009.11 through 2009.30 of the HTS.

    (e) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section.

                      TITLE II--RELIEF FROM IMPORTS

                     Subtitle A--General Provisions

SEC. 201. <<NOTE: 19 USC 2112 note.>>  DEFINITIONS.

    As used in this title:
            (1) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.
            (2) Jordanian article.--The term ``Jordanian article'' means 
        an article that qualifies for reduction or elimination of a duty 
        under section 102.

[[Page 115 STAT. 247]]

      Subtitle B--Relief From Imports Benefiting From The Agreement

SEC. 211. <<NOTE: 19 USC 2112 note.>>  COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
            (1) In general.--A petition requesting action under this 
        subtitle for the purpose of adjusting to the obligations of the 
        United States under the Agreement may be filed with the 
        Commission by an entity, including a trade association, firm, 
        certified or recognized union, or group of workers that is 
        representative of an industry. The Commission shall transmit a 
        copy of any petition filed under this subsection to the United 
        States Trade Representative.
            (2) Provisional relief.--An entity filing a petition under 
        this subsection may request that provisional relief be provided 
        as if the petition had been filed under section 202(a) of the 
        Trade Act of 1974.
            (3) Critical circumstances.--Any allegation that critical 
        circumstances exist shall be included in the petition.

    (b) Investigation and Determination.--
            (1) In general.--Upon the filing of a petition under 
        subsection (a), the Commission, unless subsection (d) applies, 
        shall promptly initiate an investigation to determine whether, 
        as a result of the reduction or elimination of a duty provided 
        for under the Agreement, a Jordanian article is being imported 
        into the United States in such increased quantities, in absolute 
        terms or relative to domestic production, and under such 
        conditions that imports of the Jordanian article alone 
        constitute a substantial cause of serious injury or threat 
        thereof to the domestic industry producing an article that is 
        like, or directly competitive with, the imported article.
            (2) Causation.--For purposes of this subtitle, a Jordanian 
        article is being imported into the United States in increased 
        quantities as a result of the reduction or elimination of a duty 
        provided for under the Agreement if the reduction or elimination 
        is a cause that contributes significantly to the increase in 
        imports. Such cause need not be equal to or greater than any 
        other cause.

    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
            (1) Paragraphs (1)(B) and (3) of subsection (b).
            (2) Subsection (c).
            (3) Subsection (d).

    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Jordanian article if 
import relief has been provided under this subtitle with respect to that 
article.

SEC. 212. <<NOTE: 19 USC 2112 note.>>  COMMISSION ACTION ON PETITION.

    (a) <<NOTE: Deadline.>>  Determination.--By no later than 120 days 
(180 days if critical circumstances have been alleged) after the date on 
which an investigation is initiated under section 211(b) with respect to 
a petition, the Commission shall make the determination required under 
that section.

[[Page 115 STAT. 248]]

    (b) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, the 
Commission shall find, and recommend to the President in the report 
required under subsection (c), the amount of import relief that is 
necessary to remedy or prevent the injury found by the Commission in the 
determination and to facilitate the efforts of the domestic industry to 
make a positive adjustment to import competition. The import relief 
recommended by the Commission under this subsection shall be limited to 
that described in section 213(c).
    (c) <<NOTE: Deadline.>>  Report to President.--No later than the 
date that is 30 days after the date on which a determination is made 
under subsection (a) with respect to an investigation, the Commission 
shall submit to the President a report that shall include--
            (1) a statement of the basis for the determination;
            (2) dissenting and separate views; and
            (3) any finding made under subsection (b) regarding import 
        relief.

    (d) <<NOTE: Federal Register, publication.>>  Public Notice.--Upon 
submitting a report to the President under subsection (c), the 
Commission shall promptly make public such report (with the exception of 
information which the Commission determines to be confidential) and 
shall cause a summary thereof to be published in the Federal Register.

    (e) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect to 
determinations and findings made under this section as if such 
determinations and findings were made under section 202 of the Trade Act 
of 1974 (19 U.S.C. 2252).

SEC. 213. PROVISION OF RELIEF. <<NOTE: President. 19 USC 2112 note.>> 

    (a) <<NOTE: Deadline.>>  In General.--No later than the date that is 
30 days after the date on which the President receives the report of the 
Commission containing an affirmative determination of the Commission 
under section 212(a), the President shall provide relief from imports of 
the article that is the subject of such determination to the extent that 
the President determines necessary to prevent or remedy the injury found 
by the Commission and to facilitate the efforts of the domestic industry 
to make a positive adjustment to import competition, unless the 
President determines that the provision of such relief is not in the 
national economic interest of the United States or, in extraordinary 
circumstances, that the provision of such relief would cause serious 
harm to the national security of the United States.

    (b) National Economic Interest.--The President may determine under 
subsection (a) that providing import relief is not in the national 
economic interest of the United States only if the President finds that 
taking such action would have an adverse impact on the United States 
economy clearly greater than the benefits of taking such action.
    (c) Nature of Relief.--The import relief (including provisional 
relief) that the President is authorized to provide under this subtitle 
with respect to imports of an article is--
            (1) the suspension of any further reduction provided for 
        under the United States Schedule to Annex 2.1 of the Agreement 
        in the duty imposed on that article;

[[Page 115 STAT. 249]]

            (2) an increase in the rate of duty imposed on such article 
        to a level that does not exceed the lesser of--
                    (A) the column 1 general rate of duty imposed under 
                the HTS on like articles at the time the import relief 
                is provided; or
                    (B) the column 1 general rate of duty imposed under 
                the HTS on like articles on the day before the date on 
                which the Agreement enters into force; or
            (3) in the case of a duty applied on a seasonal basis to 
        that article, an increase in the rate of duty imposed on the 
        article to a level that does not exceed the column 1 general 
        rate of duty imposed under the HTS on the article for the 
        corresponding season occurring immediately before the date on 
        which the Agreement enters into force.

    (d) Period of Relief.--The import relief that the President is 
authorized to provide under this section may not exceed 4 years.
    (e) Rate After Termination of Import Relief.--When import relief 
under this subtitle is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which termination 
        occurs shall be the rate that, according to the United States 
        Schedule to Annex 2.1 of the Agreement for the staged 
        elimination of the tariff, would have been in effect 1 year 
        after the initiation of the import relief action under section 
        211; and
            (2) the tariff treatment for that article after December 31 
        of the year in which termination occurs shall be, at the 
        discretion of the President, either--
                    (A) the rate of duty conforming to the applicable 
                rate set out in the United States Schedule to Annex 2.1; 
                or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the United States Schedule to Annex 2.1 for 
                the elimination of the tariff.

SEC. 214. <<NOTE: 19 USC 2112 note.>>  TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Except as provided in subsection (b), no import 
relief may be provided under this subtitle after the date that is 15 
years after the date on which the Agreement enters into force.
    (b) Exception.--Import relief may be provided under this subtitle in 
the case of a Jordanian article after the date on which such relief 
would, but for this subsection, terminate under subsection (a), but only 
if the Government of Jordan consents to such provision.

SEC. 215. <<NOTE: 19 USC 2112 note.>>  COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 213 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 216. <<NOTE: 19 USC 2112 note.>>  SUBMISSION OF PETITIONS.

    A petition for import relief may be submitted to the Commission 
under--
            (1) this subtitle;
            (2) chapter 1 of title II of the Trade Act of 1974; or

[[Page 115 STAT. 250]]

            (3) under both this subtitle and such chapter 1 at the same 
        time, in which case the Commission shall consider such petitions 
        jointly.

        Subtitle C--Cases Under Title II of The Trade Act of 1974

SEC. 221. <<NOTE: 19 USC 2112 note.>>  FINDINGS AND ACTION ON JORDANIAN 
            IMPORTS.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974, the Commission makes an 
affirmative determination (or a determination which the President may 
treat as an affirmative determination under such chapter by reason of 
section 330(d) of the Tariff Act of 1930), the Commission shall also 
find (and report to the President at the time such injury determination 
is submitted to the President) whether imports of the article from 
Jordan are a substantial cause of serious injury or threat thereof.
    (b) Presidential Action Regarding Jordanian Imports.--In determining 
the nature and extent of action to be taken under chapter 1 of title II 
of the Trade Act of 1974, the President shall determine whether imports 
from Jordan are a substantial cause of the serious injury found by the 
Commission and, if such determination is in the negative, may exclude 
from such action imports from Jordan.

SEC. 222. <<NOTE: 19 USC 2112 note.>>  TECHNICAL AMENDMENT.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is 
amended in the first sentence--
            (1) by striking ``and part 1'' and inserting ``, part 1''; 
        and
            (2) by inserting before the period at the end ``, and title 
        II of the United States-Jordan Free Trade Area Implementation 
        Act''.

                       TITLE III--TEMPORARY ENTRY

SEC. 301. <<NOTE: 19 USC 2112 note.>>  NONIMMIGRANT TRADERS AND 
            INVESTORS.

    Upon the basis of reciprocity secured by the Agreement, an alien who 
is a national of Jordan (and any spouse or child (as defined in section 
101(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1101(b)(1)) 
of the alien, if accompanying or following to join the alien) shall be 
considered as entitled to enter the United States under and in pursuance 
of the provisions of the Agreement as a nonimmigrant described in 
section 101(a)(15)(E) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(E)), if the entry is solely for a purpose described in 
clause (i) or (ii) of such section and the alien is otherwise admissible 
to the United States as such a nonimmigrant.

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. <<NOTE: 19 USC 2112 note.>>  RELATIONSHIP OF THE AGREEMENT TO 
            UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--

[[Page 115 STAT. 251]]

            (1) United states law to prevail in conflict.--No provision 
        of the Agreement, nor the application of any such provision to 
        any person or circumstance, that is inconsistent with any law of 
        the United States shall have effect.
            (2) Construction.--Nothing in this Act shall be construed--
                    (A) to amend or modify any law of the United States; 
                or
                    (B) to limit any authority conferred under any law 
                of the United States,
        unless specifically provided for in this Act.

    (b) Relationship of Agreement to State Law.--
            (1) Legal challenge.--No State law, or the application 
        thereof, may be declared invalid as to any person or 
        circumstance on the ground that the provision or application is 
        inconsistent with the Agreement, except in an action brought by 
        the United States for the purpose of declaring such law or 
        application invalid.
            (2) Definition of state law.--For purposes of this 
        subsection, the term ``State law'' includes--
                    (A) any law of a political subdivision of a State; 
                and
                    (B) any State law regulating or taxing the business 
                of insurance.

    (c) Effect of Agreement With Respect to Private Remedies.--No person 
other than the United States--
            (1) shall have any cause of action or defense under the 
        Agreement; or
            (2) may challenge, in any action brought under any provision 
        of law, any action or inaction by any department, agency, or 
        other instrumentality of the United States, any State, or any 
        political subdivision of a State on the ground that such action 
        or inaction is inconsistent with the Agreement.

SEC. 402. <<NOTE: 19 USC 2112 note.>>  AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each fiscal year after 
fiscal year 2001 to the Department of Commerce not more than $100,000 
for the payment of the United States share of the expenses incurred in 
dispute settlement proceedings under article 17 of the Agreement.

SEC. 403. <<NOTE: 19 USC 2112 note.>>  IMPLEMENTING REGULATIONS.

    After the date of enactment of this Act--
            (1) the President may proclaim such actions; and
            (2) other appropriate officers of the United States may 
        issue such regulations,

as may be necessary to ensure that any provision of this Act, or 
amendment made by this Act, that takes effect on the date the Agreement 
enters into force is appropriately implemented on such date, but no such 
proclamation or regulation may have an effective date earlier than the 
date the Agreement enters into force.

SEC. 404. <<NOTE: 19 USC 2112 note.>>  EFFECTIVE DATES; EFFECT OF 
            TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.

[[Page 115 STAT. 252]]

    (c) Termination of the Agreement.--On the date on which the 
Agreement ceases to be in force, the provisions of this Act (other than 
this subsection) and the amendments made by this Act, shall cease to be 
effective.

    Approved September 28, 2001.

LEGISLATIVE HISTORY--H.R. 2603 (S. 643):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 107-176, Pt. 1 (Comm. on Ways and Means).
SENATE REPORTS: No. 107-59 accompanying S. 643 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 147 (2001):
            July 31, considered and passed House.
            Sept. 24, considered and passed Senate.

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