Tariff Relief Assistance for Developing Economies Act of 2005 (TRADE Act of 2005) - Authorizes the President to designate Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao People's Democratic Republic, Maldives, Nepal, Samoa, Solomon Islands, Timor-Leste (East Timor), Tuvalu, Vanuatu, Yemen, and Sri Lanka or their successor political entities as TRADE Act of 2005 beneficiary countries eligible to receive duty-free treatment for certain articles that are the growth, product, or manufacture of such countries, if after receiving the advice of the International Trade Commission (ITC) the President determines that such articles are not import-sensitive in the context of imports from such countries.
Basis such designation upon eligibility requirements of the African Growth and Opportunity Act (AGOA) and theTrade Act of 1974.
Prescribes the rule of origin for such articles for the duty-free treatment.
Applies duty-free treatment, without any quantitative limitations, and under certain conditions, to textile and apparel articles assembled in one or more TRADE Act of 2005 beneficiary countries, apparel articles from regional fabric or yarns, and sweaters knit-to-shape from cashmere or merino wool that are imported directly into the U.S. customs territory from TRADE Act of 2005 beneficiary countries if the countries have satisfied AGOA protections against transshipment requirements.
Applies duty-free treatment for apparel articles assembled in one or more TRADE Act of 2005 beneficiary countries if their assembly meets specified U.S. origin requirements.
Establishes: (1) limitations on such preferential treatment; and (2) special rules for apparel articles wholly assembled in one or more TRADE Act of 2005 beneficiary countries or former beneficiary countries (or both) regardless of the country of origin of the yarn or fabric used to make such articles; and (3) applicable percentages of such benefits.
Applies the AGOA surge mechanism (requiring the Secretary of Commerce to monitor imports of apparel articles from regional fabric or yarns and to make certain determinations) with respect to the preferential treatment extended to TRADE Act of 2005 beneficiary countries.
Grants duty-free treatment to certain sweaters knit-to-shape from cashmere or merino wool and other specified apparel articles.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 886 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 886
To extend certain trade preferences to certain least-developed
countries, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 17, 2005
Mr. Kolbe (for himself and Mr. Crowley) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To extend certain trade preferences to certain least-developed
countries, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tariff Relief Assistance for
Developing Economies Act of 2005'' or as the ``TRADE Act of 2005''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) It is in the mutual interest of the United States and
least developed countries to promote stable and sustainable
economic growth and development.
(2) Increased trade and investment are powerful tools
countries can use to reduce poverty and raise living standards.
(3) Openness to trade boosts economic growth.
(4) Twenty-five percent of the world's population survives
on less than one dollar per day.
(5) Unemployment rates in least developed countries are
extremely high, including rates in some countries of up to 70
percent.
(6) Trade and investment lead to employment opportunities
and can help alleviate poverty.
(7) Least developed countries have a particular challenge
in meeting the economic requirements and competitiveness of
globalization and international markets.
(8) The United States has recognized the importance of
these challenges and the benefits of trade to least developed
countries by enacting the Generalized System of Preferences and
subsequent benefits for developing countries in the Caribbean,
Andean, and sub-Saharan African regions of the world.
(9) The challenges of the global trading environment for
least developed countries are even greater given the expiration
of the Multi-Fiber Arrangement in 2005, and certain least
developed countries, including Bangladesh, Cambodia, and Nepal,
are particularly vulnerable to the changes that will result
from the expiration of that Arrangement.
(10) Responding to the needs of least developed countries
would be consistent with other trade objectives of the United
States, including encouraging forward progress on the WTO Doha
Development Round.
(11) Enhanced trade with the Muslim least developed
countries, including Yemen, Afghanistan, and Bangladesh, would
be consistent with other objectives of the United States of
encouraging strong private sectors and individual economic
empowerment in those countries.
(12) Offering the least developed countries enhanced trade
preferences will encourage both higher levels of trade and
direct investment in support of positive economic and political
developments throughout the region and the world.
(13) Encouraging the reciprocal reduction of trade and
investment barriers will enhance the benefits of trade and
investment as well as enhance commercial and political ties
between the United States and the beneficiary countries.
(14) Economic opportunity and engagement in the global
trading system, together with support for democratic
institutions and a respect for human rights, are mutually
reinforcing objectives and key elements of a policy to confront
and defeat global terrorism.
(15) A powerful earthquake and tsunami struck in the Indian
Ocean on December 26, 2004.
(16) The destruction caused by the tsunami in Sri Lanka
caused the death of more than 30,000 people and left physical
damage equal to approximately 6.5 percent of the Sri Lankan
economy.
(17) The effects of lost businesses and reconstruction
costs due to the tsunami damage will lead to a drop in the
economic growth of Sri Lanka.
(18) Senate Resolution 4 of the 109th Congress, agreed to
unanimously on January 4, 2005, expressed the support of the
Senate for the long-term commitment of the United States to
provide financial aid and other forms of assistance to the
countries and peoples of the region affected by the earthquake
and the tsunami.
(19) Duty preferences given to imports into the United
States of products of Sri Lanka will help Sri Lanka rebuild and
overcome the economic destruction caused by the tsunami.
SEC. 3. AUTHORITY TO DESIGNATE; ELIGIBILITY REQUIREMENTS.
(a) Authority to Designate.--
(1) In general.--Notwithstanding any other provision of
law, the President is authorized to designate a country listed
under subsection (b) as a TRADE Act of 2005 beneficiary country
eligible for benefits described in section 4--
(A) if the President determines that the country
meets the requirements set forth in section 104 of the
African Growth and Opportunity Act (19 U.S.C. 3703);
and
(B) subject to the authority granted to the
President under subsections (a), (d), and (e) of
section 502 of the Trade Act of 1974 (19 U.S. C. 2462
(a), (d), and (e)), if the country otherwise meets the
eligibility criteria set forth in section 502 of that
Act.
(2) Application of section 104.--Section 104 of the African
Growth and Opportunity Act shall be applied for purposes of
paragraph (1) by substituting ``TRADE Act of 2005 beneficiary
country'' for ``beneficiary sub-Saharan African country'' each
place that term appears.
(b) Countries Eligible for Designation.--
(1) In general.--The countries eligible for designation
under subsection (a) are the following or their successor
political entities:
(A) Afghanistan.
(B) Bangladesh.
(C) Bhutan.
(D) Cambodia.
(E) Kiribati.
(F) Lao People's Democratic Republic.
(G) Maldives.
(H) Nepal.
(I) Samoa.
(J) Solomon Islands.
(K) Timor-Leste (East Timor).
(L) Tuvalu.
(M) Vanuatu.
(N) Yemen.
(2) Sri lanka economic emergency support.--The President
may also designate Sri Lanka as a TRADE Act of 2005 beneficiary
country eligible for benefits described in section 4.
SEC. 4. TRADE ENHANCEMENT.
(a) 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) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1)(B)
through (G)) that is the growth, product, or manufacture of a
TRADE Act of 2005 beneficiary country if, after receiving the
advice of the International Trade Commission in accordance with
section 503(e) of the Trade Act of 1974, the President
determines that such article is not import-sensitive in the
context of imports from TRADE Act of 2005 beneficiary
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)
of the Trade Act of 1974, 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) of the Trade Act of 1974; and
(B) the cost or value of the materials included
with respect to that article that are produced in one
or more TRADE Act of 2005 beneficiary countries or
former TRADE Act of 2005 beneficiary countries shall be
applied in determining such percentage.
(b) Textile and Apparel Articles.--
(1) Preferential treatment.--Textile and apparel articles
described in paragraphs (2), (3), and (4) that are imported
directly into the customs territory of the United States from a
TRADE Act of 2005 beneficiary country shall enter the United
States free of duty and free of any quantitative limitations in
accordance with the requirements of such paragraphs, if the
country has satisfied the requirements set forth in section 113
of the African Growth and Opportunity Act (19 U.S.C. 3722). In
applying such section 113--
(A) ``TRADE Act of 2005 beneficiary country'' and
``TRADE Act of 2005 beneficiary countries'' shall be
substituted for ``beneficiary sub-Saharan African
country'' and ``beneficiary sub-Saharan African
countries'', respectively, each place such terms
appear;
(B) ``TRADE Act of 2005 beneficiary countries''
shall be substituted for ``countries in sub-Saharan
Africa'' in section 113(b)(5); and
(C) any reference to preferential treatment under
``section 112(a)'', ``section 112'', or ``this Act''
shall be deemed to refer to preferential treatment
under this subsection.
(2) Apparel articles assembled in trade act of 2005
beneficiary countries.--The preferential treatment under
paragraph (1) shall apply to apparel articles described in
paragraphs (1) and (2) of subsection (b) of section 112 of the
African Growth and Opportunity Act (19 U.S.C. 3721(b)(1) and
(2)), except that such paragraphs shall be applied for purposes
of this paragraph by substituting ``TRADE Act of 2005
beneficiary country'' and ``TRADE Act of 2005 beneficiary
countries'' for ``beneficiary sub-Saharan African country'' and
``beneficiary sub-Saharan African countries'', respectively,
each place such terms appear.
(3) Apparel articles assembled from regional and other
fabric.--The preferential treatment under paragraph (1) shall
apply to apparel articles that are wholly assembled in one or
more TRADE Act of 2005 beneficiary countries or former TRADE
Act of 2005 beneficiary countries, or both, from fabric wholly
formed in one or more TRADE Act of 2005 beneficiary countries
or former TRADE Act of 2005 beneficiary countries, or both,
from yarn originating either in the United States or one or
more TRADE Act of 2005 beneficiary countries or former TRADE
Act of 2005 beneficiary countries, or both (including fabrics
not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of the
United States and are wholly formed and cut in the United
States, one or more TRADE Act of 2005 beneficiary countries or
former TRADE Act of 2005 beneficiary countries, or any
combination thereof), whether or not the apparel articles are
also made from any of the fabrics, fabric components formed, or
components knit-to-shape to which paragraph (1) of this
subsection applies (unless the apparel articles are made
exclusively from any of the fabrics, fabric components formed,
or components knit-to-shape to which paragraph (1) of this
subsection applies), subject to the following:
(A) Limitations on benefits.--
(i) In general.--Preferential treatment
under this paragraph shall be extended in the
1-year period beginning January 1, 2005, and in
each of the succeeding 10 1-year periods, to
imports of apparel articles described in this
subparagraph in an amount not to exceed the
applicable percentage of the aggregate square
meter equivalents of all apparel articles
imported into the United States in the
preceding 12-month period for which data are
available.
(ii) Applicable percentage.--For purposes
of this subparagraph, the term ``applicable
percentage'' means 11 percent for the 1-year
period beginning January 1, 2005, increased in
each of the 10 succeeding 1-year periods by
equal increments, so that for the period
beginning January 1, 2014, the applicable
percentage does not exceed 14 percent.
(B) Special rule.--
(i) In general.--Subject to subparagraph
(A), preferential treatment described in this
paragraph shall be extended through December
31, 2011, to apparel articles wholly assembled
in one or more TRADE Act of 2005 beneficiary
countries or former TRADE Act of 2005
beneficiary countries, or both, regardless of
the country of origin of the yarn or fabric
used to make such articles.
(ii) Country limitations.--
(I) Small suppliers.--If during the
preceding 1-year period beginning on
January 1 for which data are available,
imports into the United States of
apparel articles from a TRADE Act of
2005 beneficiary country are less than
1 percent of the aggregate square meter
equivalents of all apparel articles
imported into the United States during
such period, then imports under this
subparagraph from that country may
increase to an amount that is equal to
not more than 1.5 percent of the
aggregate square meter equivalents of
all apparel articles imported into the
United States during such period.
(II) Other suppliers.--If during
the preceding 1-year period beginning
on January 1 for which data are
available, imports from a TRADE Act of
2005 beneficiary country are at least 1
percent (or, in the case of a country
to which subclause (I) applies, 1.5
percent) of the aggregate square meter
equivalents of all apparel articles
imported into the United States during
such period, imports under this clause
from that country may increase, during
each subsequent 12-month period, by an
amount that is equal to not more than
one-third of 1 percent of the aggregate
square meter equivalents of all apparel
articles imported into the United
States.
(III) Aggregate country limit.--In
no case may the aggregate quantity of
textile and apparel articles imported
into the United States under this
subparagraph exceed the applicable
percentage set forth in subparagraph
(A).
(C) Surge mechanism.--Subparagraph (C) of section
112(b)(3) of the African Growth and Opportunity Act (19
U.S.C. 3721(b)(3)) shall apply with respect to the
preferential treatment extended under this paragraph to
a TRADE Act of 2005 beneficiary country, except that,
in applying such paragraph--
(i) ``TRADE Act of 2005 country'' shall be
substituted for ``sub-Saharan African
country''; and
(ii) references to ``this paragraph'' shall
be deemed to refer to subparagraphs (A) and (B)
of this paragraph.
(4) Other provisions.--The preferential treatment described
in paragraph (1) shall apply to articles described in
paragraphs (4), (5), (6), and (7) of section 112(b) of the
African Growth and Opportunity Act (19 U.S.C. 3721(b)(4), (5),
(6), and (7)), except that--
(A) such paragraphs shall be applied by
substituting ``TRADE Act of 2005 beneficiary country''
for ``beneficiary sub-Saharan African country'' and
``TRADE Act of 2005 beneficiary countries'' for
``beneficiary sub-Saharan African countries'' each
place such terms appear; and
(B) in applying paragraph (6)(B) of such section--
(i) the references to ``African'' prints
and ``African'' market or markets shall be
deemed to refer to prints and the market of the
TRADE Act of 2005 beneficiary country
concerned; and
(ii) the reference to ``Africa'' shall be
deemed to refer to the TRADE Act of 2005
beneficiary country concerned.
(5) Special rules.--Subsection (d) of section 112 of the
African Growth and Opportunity Act (19 U.S.C. 3721(d)) shall
apply to articles of TRADE Act of 2005 beneficiary countries to
the same extent that such subsection applies to articles of
beneficiary sub-Saharan African countries, except that, in
applying such subsection--
(A) references to preferential treatment ``under
this section'' shall be deemed to refer to preferential
treatment under this subsection;
(B) the reference in paragraph (1)(C) of such
subsection (d) to ``an article described in subsection
(b)(2)'' shall be deemed to refer to such an article as
applied under paragraph (2) of this subsection; and
(C) the reference in paragraph (3) of such
subsection (d) to the ``requirements set forth in
subsection (b)'' shall be deemed to refer to the
requirements under this subsection.
SEC. 5. REPORTING REQUIREMENT.
The President shall monitor, review, and report to Congress, not
later than 1 year after the date of the enactment of this Act, and
annually thereafter, on the implementation of this Act and on the trade
and investment policy of the United States with respect to the TRADE
Act of 2005 beneficiary countries.
SEC. 6. DEFINITIONS.
In this Act:
(1) TRADE act of 2005 beneficiary country.--The term
``TRADE Act of 2005 beneficiary country'' means a country
listed in subsection (b) of section 3 that the President has
determined is eligible for preferential treatment under this
Act.
(2) Former trade act of 2005 beneficiary country.--The term
``former TRADE Act of 2005 beneficiary country'' means a
country that, after being designated as a TRADE Act of 2005
beneficiary country under this Act, ceased to be designated as
such a country by reason of its entering into a free trade
agreement with the United States.
SEC. 7. TERMINATION OF PREFERENTIAL TREATMENT.
No duty-free treatment or other preferential treatment extended
under this Act to a TRADE Act of 2005 beneficiary country shall remain
in effect after December 31, 2014.
SEC. 8. EFFECTIVE DATE.
(a) In General.--Subject to subsection (b), this Act applies to
goods entered, or withdrawn from warehouse for consumption, on or after
the date of the enactment of this Act.
(b) Retroactive Application.--Notwithstanding section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law, upon
proper request filed with the Bureau of Customs and Border Protection
before the 90th day after the date of the enactment of this Act, any
entry, or withdrawal from warehouse for consumption, of any good--
(1) that was made on or after January 1, 2005, and before
the date of the enactment of this Act, and
(2) with respect to which there would have been no duty if
such entry or withdrawal had been made on such date of
enactment,
shall be liquidated or reliquidated as if such entry or withdrawal had
occurred on such date of enactment.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Trade.
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