Cotton Shirt Industry Tariff Relief and Technical Corrections Act - Amends the Harmonized Tariff Schedule of the United States to reduce, through December 31, 2005 or 2006 (as appropriate), the duty on certain cotton shirting fabrics.
Limits the quantity of imported cotton woven fabric entered by or on behalf of each manufacturer of men's and boy's shirts. Provides for the issuance of import licenses subject to such limitation.
Establishes the Pima Cotton Trust Fund within the Treasury, consisting of transfers from the general fund in amounts attributable to the duty received since January 1, 1994, on woven fabrics of cotten under specified headings of the Harmonized Tariff Schedule of the United States.
Provides for annual distribution of amounts from such Fund to a nationally recognized association of shirting manufacturers for the promotion of U.S.-grown pima cotton, and to yarn spinners of such cotton .
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 738 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 738
To provide relief for the cotton shirt industry.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 6, 2005
Mr. Specter introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide relief for the cotton shirt industry.
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 shall be known as the ``Cotton Shirt Industry Tariff
Relief and Technical Corrections Act''.
SEC. 2. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON SHIRTING FABRIC.
(a) Certain Cotton Shirting Fabrics.--
(1) In general.--Subchapter II of chapter 99 is amended by
inserting in numerical sequence the following new headings:
`` 9902.52.08 Woven fabrics of Free No change No change On or before 12/
cotton, all the 31/2006
foregoing
certified by the
importer as
suitable for use
in making men's
and boys' shirts
and as imported by
or for the benefit
of a manufacturer
of men's and boys'
shirts, subject to
the quantity
limitations
contained in
general note 18 of
this subchapter
(provided for in
section
204(b)(3)(B)(i)(II
I) of the Andean
Trade Preference
Act (19 U.S.C.
3203))............
9902.52.09 Woven fabrics of Free No change No change On or before 12/
cotton, all the 31/2005 ''
foregoing .
certified by the
importer as
containing 100
percent pima
cotton grown in
the United States,
as suitable for
use in making
men's and boys'
shirts, and as
imported by or for
the benefit of a
manufacturer of
men's and boys'
shirts (provided
for in section
204(b)(3)(B)(i)(II
I) of the Andean
Trade Preference
Act (19 U.S.C.
3203))............
(2) Definitions and limitation on quantity of imports.--The
U.S. Notes to chapter 99 are amended by adding at the end the
following:
``18. For purposes of subheadings 9902.52.08 and 9902.52.09, the term
`making' means cutting and sewing in the United States, and the term
`manufacturer' means a person or entity that cuts and sews in the
United States.
``19. The aggregate quantity of cotton fabrics entered under subheading
9902.52.08 from January 1 to December 31 of each year, inclusive, by or
on behalf of each manufacturer of men's and boys' shirts shall be
limited to 85 percent of the total square meter equivalents of all
imported cotton woven fabric used by such manufacturer in cutting and
sewing men's and boys' cotton shirts in the United States and purchased
by such manufacturer during calendar year 2000.''.
(b) Determination of Tariff-Rate Quotas.--
(1) Authority to issue licenses and license use.--To
implement the limitation on the quantity of imports of cotton
woven fabrics under subheading 9902.52.08 of the Harmonized
Tariff Schedule of the United States, as required by U.S. Note
19 to subchapter II of chapter 99 of such Schedule, for the
entry, or withdrawal from warehouse for consumption, the
Secretary of Commerce shall issue licenses to eligible
manufacturers with respect to items entered under subheading
9902.52.08 specifying the annual quantity restrictions under
each such license. A licensee may assign the authority (in
whole or in part) to import fabric under subheading 9902.52.08
of such Schedule.
(2) Licenses under u.s. note 19.--For purposes of U.S. Note
19 to subchapter II of chapter 99 of the Harmonized Tariff
Schedule of the United States, the Secretary of Commerce shall
issue a license within 60 days of an application containing a
notarized affidavit from an officer of the manufacturer that
the manufacturer is eligible to receive a license and stating
the quantity of imported cotton woven fabric purchased during
calendar year 2000 for use in the cutting and sewing of men's
and boys' shirts in the United States.
(3) Affidavits.--For purposes of an affidavit described in
this subsection, the date of purchase shall be--
(A) the invoice date if the manufacturer is not the
importer of record; and
(B) the date of entry if the manufacturer is the
importer of record.
SEC. 3. PIMA COTTON TRUST FUND.
(a) Establishment of Trust Fund.--
(1) In general.--There is hereby established within the
Treasury of the United States a trust fund to be known as the
``Pima Cotton Trust Fund'' (hereinafter in this section
referred to the ``Trust Fund''), consisting of such amounts as
may be transferred to the Trust Fund under paragraph (2).
(2) Transfer of amounts.--
(A) In general.--Beginning October 1, 2005, the
Secretary of the Treasury shall transfer to the Trust
Fund out of the general fund of the Treasury of the
United States amounts determined by the Secretary of
the Treasury to be equivalent to the amounts received
in the general fund that are attributable to the duty
received since January 1, 1994, on articles under
subheadings 5208.21.60, 5208.22.80, 5208.29.80,
5208.31.80, 5208.32.50, 5208.39.80, 5208.41.80,
5208.42.50, 5208.49.80, 5208.51.80, 5208.52.50,
5208.59.80, 5210.21.80, and 5210.31.80 of the
Harmonized Tariff Schedule of the United States,
subject to the limitation in subparagraph (B).
(B) Limitation.--The Secretary shall not transfer
more than $16,000,000 to the Trust fund in any fiscal
year, and shall not transfer any amount beginning on or
after October 1, 2007.
(b) Distribution of Funds.--
(1) In general.--From amounts in the Trust Fund, the
Commissioner of Customs and Border Protection shall make the
following payments annually beginning in fiscal year 2005:
(A) 25 percent of the amounts in the Trust Fund
shall be paid annually to a nationally recognized
association established for the promotion of pima
cotton grown in the United States for use in textile
and apparel goods.
(B) 25 percent of the amounts in the Trust Fund
shall be paid annually to yarn spinners of pima cotton
grown in the United States, and shall be allocated to
each such spinner in an amount that bears the same
ratio as--
(i) the spinner's production of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number) from pima cotton
grown in the United States in single and plied
form during calendar year 2002 (as evidenced by
an affidavit provided by the spinner), bears to
(ii) the production of yarns described in
clause (i) during calendar year 2002 for all
spinners who qualify under this subparagraph.
(C) 50 percent of the amounts in the Trust Fund
shall be paid annually to manufacturers who cut and sew
cotton shirts in the United States who certify that
they used imported cotton fabric during the period
January 1, 1998, through July 1, 2003, and shall be
allocated to each such manufacturer in an amount that
bears the same ratio as--
(i) the dollar value (excluding duty,
shipping, and related costs) of imported woven
cotton shirting fabric of 80s or higher count
and 2-ply in warp purchased by the manufacturer
during calendar year 2002 (as evidenced by an
affidavit from the manufacturer that meets the
requirements of paragraph (2)) used in the
manufacturing of men's and boys' cotton shirts,
bears to
(ii) the dollar value (excluding duty,
shipping, and related costs) of the fabric
described in clause (i) purchased during
calendar year 2002 by all manufacturers who
qualify under this subparagraph.
(2) Affidavit of shirting manufacturers.--The affidavit
required by paragraph (1)(C) is a notarized affidavit of an
officer of the manufacturer of men's and boys' shirts that
affirms--
(A) that the manufacturer used imported cotton
fabric during the period January 1, 1998, through July
1, 2003, to cut and sew men's and boys' woven cotton
shirts in the United States;
(B) the dollar value of imported woven cotton
shirting fabric of 80s or higher count and 2-ply in
warp purchased during calendar year 2002;
(C) that the manufacturer maintains invoices along
with other supporting documentation (such as price
lists and other technical descriptions of the fabric
qualities) showing the dollar value of such fabric
purchased, the date of purchase, and evidencing the
fabric as woven cotton fabric of 80s or higher count
and 2-ply in warp; and
(D) that the fabric was suitable for use in the
manufacturing of men's and boys' cotton shirts.
(3) Date of purchase.--For purposes of the affidavit
required by paragraph (2), the date of purchase shall be the
invoice date, and the dollar value shall be determined
excluding duty, shipping, and related costs.
(4) Affidavit of yarn spinners.--The affidavit required by
paragraph (1)(B), is a notarized affidavit of an officer of a
company that produces ring spun yarns that affirms--
(A) that the producer used pima cotton grown in the
United States during the period January 1, 2002,
through December 31, 2002, to produce ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number) in single and plied form during 2002;
(B) the quantity, measured in pounds of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number), in single and plied form
during calendar year 2002; and
(C) that the producer maintains supporting
documentation showing the quantity of such yarns
produced, and evidencing the yarns as ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form during
calendar year 2002.
(5) No appeal.--Any amount paid by the Commissioner of
Customs and Border Protection under this section shall be final
and not subject to appeal or protest.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S3315)
Read twice and referred to the Committee on Finance.
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