US (United States) Code. Title 19. Chapter 15: Caribbean basin economic recovery

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Customs duties

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19 USC CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

.

-HEAD-

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

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Sec.

2701. Authority to grant duty-free treatment.

2702. Beneficiary country.

(a) Definitions; termination of designation.

(b) Countries eligible for designation as beneficiary

countries; conditions.

(c) Factors determining designation.

(d) Omitted.

(e) Withdrawal or suspension of duty-free treatment

to specific articles.

(f) Reporting requirements.

2703. Eligible articles.

(a) Growth, product, or manufacture of beneficiary

countries.

(b) Import-sensitive articles.

(c) Sugar and beef products; stable food production

plan; suspension of duty-free treatment;

monitoring.

(d) Tariff-rate quotas.

(e) Proclamations suspending duty-free treatment.

(f) Petitions to International Trade Commission.

(g) Fees not affected by proclamation.

(h) Duty reduction for certain leather-related

products.

2704. International Trade Commission reports on impact of Caribbean

Basin Economic Recovery Program.

(a) Reporting requirements.

(b) Requisite areas of Commission assessment.

(c) Time of submission of reports; public

participation.

2705. Impact study by Secretary of Labor.

2706. Effective date.

2707. Center for the Study of Western Hemispheric Trade.

(a) Establishment.

(b) Scope of Center.

(c) Consultation; selection criteria.

(d) Programs and activities.

(e) Definitions.

(f) Fees for seminars and publications.

(g) Duration of grant.

(h) Report.

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CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1202, 1677, 2272, 2492,

3203 of this title; title 6 section 212; title 20 section 226;

title 22 section 6062; title 26 section 936.

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19 USC Sec. 2701 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

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Sec. 2701. Authority to grant duty-free treatment

-STATUTE-

The President may proclaim duty-free treatment (or other

preferential treatment) for all eligible articles from any

beneficiary country in accordance with the provisions of this

chapter.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 211, Aug. 5, 1983, 97 Stat. 384;

Pub. L. 106-200, title II, Sec. 211(e)(1)(A), May 18, 2000, 114

Stat. 287.)

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REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

title'' meaning title II of Pub. L. 98-67, Aug. 5, 1983, 97 Stat.

384, which is classified principally to this chapter. For complete

classification of title II to the Code, see Short Title note set

out below and Tables.

-MISC2-

AMENDMENTS

2000 - Pub. L. 106-200 inserted ''(or other preferential

treatment)'' after ''treatment''.

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-200, title II, Sec. 201, May 18, 2000, 114 Stat. 275,

provided that: ''This title (amending this section and sections

2702 to 2704, 3202, and 3204 of this title and enacting provisions

set out as notes under this section) may be cited as the 'United

States-Caribbean Basin Trade Partnership Act'.''

SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-382, title II, Sec. 201, Aug. 20, 1990, 104 Stat.

655, provided that: ''This title (enacting section 226 of Title 20,

Education, amending sections 1677, 2463, 2702, 2703, and 2706 of

this title and section 936 of Title 26, Internal Revenue Code,

enacting provisions set out as notes under this section and

sections 1677, 2071, and 2703 of this title and section 936 of

Title 26, and amending provisions set out as notes under section

2703 of this title) may be cited as the 'Caribbean Basin Economic

Recovery Expansion Act of 1990'.''

SHORT TITLE

Section 201 of title II of Pub. L. 98-67 provided that: ''This

title (enacting this chapter, amending section 1202 of this title

and sections 274 and 7652 of Title 26, Internal Revenue Code,

repealing section 2582 of this title, and enacting provisions set

out as notes under sections 1319, 2251, and 2703 of this title,

sections 274 and 7652 of Title 26, and section 1311 of Title 33,

Navigation and Navigable Waters) may be cited as the 'Caribbean

Basin Economic Recovery Act'.''

FINDINGS AND POLICY

Pub. L. 106-200, title II, Sec. 202, May 18, 2000, 114 Stat. 275,

provided that:

''(a) Findings. - Congress makes the following findings:

''(1) The Caribbean Basin Economic Recovery Act (19 U.S.C. 2701

et seq.) (in this title (see Short Title of 2000 Amendment note

above) referred to as 'CBERA') represents a permanent commitment

by the United States to encourage the development of strong

democratic governments and revitalized economies in neighboring

countries in the Caribbean Basin.

''(2) In 1998, Hurricane Mitch and Hurricane Georges devastated

areas in the Caribbean Basin region, killing more than 10,000

people and leaving 3,000,000 homeless.

''(3) The total direct impact of Hurricanes Mitch and Georges

on Honduras, Nicaragua, the Dominican Republic, El Salvador, and

Guatemala amounts to $4,200,000,000, representing a severe loss

to income levels in this underdeveloped region.

''(4) In addition to short term disaster assistance, United

States policy toward the region should focus on expanding

international trade with the Caribbean Basin region as an

enduring solution for successful economic growth and recovery.

''(5) Thirty-four democratically elected leaders agreed at the

1994 Summit of the Americas to conclude negotiation of a Free

Trade Area of the Americas (in this title referred to as 'FTAA')

by the year 2005.

''(6) The economic security of the countries in the Caribbean

Basin will be enhanced by the completion of the FTAA.

''(7) Offering temporary benefits to Caribbean Basin countries

will preserve the United States commitment to Caribbean Basin

beneficiary countries, promote the growth of free enterprise and

economic opportunity in these neighboring countries, and thereby

enhance the national security interests of the United States.

''(8) Given the greater propensity of countries located in the

Western Hemisphere to use United States components and to

purchase United States products compared to other countries,

increased trade and economic activity between the United States

and countries in the Western Hemisphere will create new jobs in

the United States as a result of expanding export opportunities.

''(b) Policy. - It is the policy of the United States -

''(1) to offer Caribbean Basin beneficiary countries willing to

prepare to become a party to the FTAA or another free trade

agreement, tariff treatment essentially equivalent to that

accorded to products of NAFTA countries for certain products not

currently eligible for duty-free treatment under the CBERA; and

''(2) to seek the participation of Caribbean Basin beneficiary

countries in the FTAA or another free trade agreement at the

earliest possible date, with the goal of achieving full

participation in such agreement not later than 2005.''

MEETINGS OF TRADE MINISTERS AND USTR

Pub. L. 106-200, title II, Sec. 213, May 18, 2000, 114 Stat. 288,

provided that:

''(a) Schedule of Meetings. - The President shall take the

necessary steps to convene a meeting with the trade ministers of

the CBTPA beneficiary countries in order to establish a schedule of

regular meetings, to commence as soon as is practicable, of the

trade ministers and the Trade Representative, for the purpose set

forth in subsection (b).

''(b) Purpose. - The purpose of the meetings scheduled under

subsection (a) is to reach agreement between the United States and

CBTPA beneficiary countries on the likely timing and procedures for

initiating negotiations for CBTPA beneficiary countries to enter

into mutually advantageous free trade agreements with the United

States that contain provisions comparable to those in the NAFTA and

would make substantial progress in achieving the negotiating

objectives set forth in section 108(b)(5) of Public Law 103-182 (19

U.S.C. 3317(b)(5)).

''(c) Definition. - In this section, the term 'CBTPA beneficiary

country' has the meaning given that term in section 213(b)(5)(B) of

the Caribbean Basin Economic Recovery Act (19 U.S.C.

2703(b)(5)(B)).''

CONGRESSIONAL FINDINGS

Pub. L. 101-382, title II, Sec. 202, Aug. 20, 1990, 104 Stat.

655, provided that: ''The Congress finds that -

''(1) a stable political and economic climate in the Caribbean

region is necessary for the development of the countries in that

region and for the security and economic interests of the United

States;

''(2) the Caribbean Basin Economic Recovery Act (this chapter)

was enacted in 1983 to assist in the achievement of such a

climate by stimulating the development of the export potential of

the region; and

''(3) the commitment of the United States to the successful

development of the region, as evidenced by the enactment of the

Caribbean Basin Economic Recovery Act, should be reaffirmed, and

further strengthened, by amending that Act to improve its

operation.''

-CROSS-

DEFINITIONS

Pub. L. 106-200, title II, Sec. 203, May 18, 2000, 114 Stat. 276,

provided that: ''In this title (see Short Title of 2000 Amendment

note above):

''(1) NAFTA. - The term 'NAFTA' means the North American Free

Trade Agreement entered into between the United States, Mexico,

and Canada on December 17, 1992.

''(2) NAFTA country. - The term 'NAFTA country' means any

country with respect to which the NAFTA is in force.

''(3) WTO and wto member. - The terms 'WTO' and 'WTO member'

have the meanings given those terms in section 2 of the Uruguay

Round Agreements Act (19 U.S.C. 3501).''

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2703 of this title.

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19 USC Sec. 2702 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

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Sec. 2702. Beneficiary country

-STATUTE-

(a) Definitions; termination of designation

(1) For purposes of this chapter -

(A) The term ''beneficiary country'' means any country listed

in subsection (b) of this section with respect to which there is

in effect a proclamation by the President designating such

country as a beneficiary country for purposes of this chapter.

Before the President designates any country as a beneficiary

country for purposes of this chapter, he shall notify the House

of Representatives and the Senate of his intention to make such

designation, together with the considerations entering into such

decision.

(B) The term ''entered'' means entered, or withdrawn from

warehouse for consumption, in the customs territory of the United

States.

(C) The term ''HTS'' means Harmonized Tariff Schedule of the

United States.

(D) The term ''NAFTA'' means the North American Free Trade

Agreement entered into between the United States, Mexico, and

Canada on December 17, 1992.

(E) The terms ''WTO'' and ''WTO member'' have the meanings

given those terms in section 3501 of this title.

(2) If the President has designated any country as a beneficiary

country for purposes of this chapter, he shall not terminate such

designation (either by issuing a proclamation for that purpose or

by issuing a proclamation which has the effect of terminating such

designation) unless, at least sixty days before such termination,

he has notified the House of Representatives and the Senate and has

notified such country of his intention to terminate such

designation, together with the considerations entering into such

decision.

(b) Countries eligible for designation as beneficiary countries;

conditions

In designating countries as ''beneficiary countries'' under this

chapter the President shall consider only the following countries

and territories or successor political entities:

Anguilla Jamaica

Antigua and Barbuda Nicaragua

Bahamas, The Panama

Barbados Saint Lucia

Belize Saint Vincent and the

Costa Rica Grenadines

Dominica Suriname

Dominican Republic Trinidad and Tobago

El Salvador Cayman Islands

Grenada Montserrat

Guatemala Netherlands Antilles

Guyana Saint Christopher-Nevis

Haiti Turks and Caicos Islands

Honduras Virgin Islands, British

In addition, the President shall not designate any country a

beneficiary country under this chapter -

(1) if such country is a Communist country;

(2) if such country -

(A) has nationalized, expropriated or otherwise seized

ownership or control of property owned by a United States

citizen or by a corporation, partnership, or association which

is 50 per centum or more beneficially owned by United States

citizens,

(B) has taken steps to repudiate or nullify -

(i) any existing contract or agreement with, or

(ii) any patent, trademark, or other intellectual property

of,

a United States citizen or a corporation, partnership, or

association which is 50 per centum or more beneficially owned

by United States citizens, the effect of which is to

nationalize, expropriate, or otherwise seize ownership or

control of property so owned, or

(C) has imposed or enforced taxes or other exactions,

restrictive maintenance or operational conditions, or other

measures with respect to property so owned, the effect of which

is to nationalize, expropriate, or otherwise seize ownership or

control of such property, unless the President determines that

-

(i) prompt, adequate, and effective compensation has been

or is being made to such citizen, corporation, partnership,

or association,

(ii) good-faith negotiations to provide prompt, adequate,

and effective compensation under the applicable provisions of

international law are in progress, or such country is

otherwise taking steps to discharge its obligations under

international law with respect to such citizen, corporation,

partnership, or association, or

(iii) a dispute involving such citizen, corporation,

partnership, or association, over compensation for such a

seizure has been submitted to arbitration under the

provisions of the Convention for the Settlement of Investment

Disputes, or in another mutually agreed upon forum, and

promptly furnishes a copy of such determination to the Senate and

House of Representatives;

(3) if such country fails to act in good faith in recognizing

as binding or in enforcing arbitral awards in favor of United

States citizens or a corporation, partnership or association

which is 50 per centum or more beneficially owned by United

States citizens, which have been made by arbitrators appointed

for each case or by permanent arbitral bodies to which the

parties involved have submitted their dispute;

(4) if such country affords preferential treatment to the

products of a developed country, other than the United States,

which has, or is likely to have, a significant adverse effect on

United States commerce, unless the President has received

assurances satisfactory to him that such preferential treatment

will be eliminated or that action will be taken to assure that

there will be no such significant adverse effect, and he reports

those assurances to the Congress;

(5) if a government-owned entity in such country engages in the

broadcast of copyrighted material, including films or television

material, belonging to United States copyright owners without

their express consent;

(6) unless such country is a signatory to a treaty, convention,

protocol, or other agreement regarding the extradition of United

States citizens; and

(7) if such country has not or is not taking steps to afford

internationally recognized worker rights (as defined in section

2467(4) of this title) to workers in the country (including any

designated zone in that country).

Paragraphs (1), (2), (3), (5), and (7) shall not prevent the

designation of any country as a beneficiary country under this Act

if the President determines that such designation will be in the

national economic or security interest of the United States and

reports such determination to the Congress with his reasons

therefor.

(c) Factors determining designation

In determining whether to designate any country a beneficiary

country under this chapter, the President shall take into account -

(1) an expression by such country of its desire to be so

designated;

(2) the economic conditions in such country, the living

standards of its inhabitants, and any other economic factors

which he deems appropriate;

(3) the extent to which such country has assured the United

States it will provide equitable and reasonable access to the

markets and basic commodity resources of such country;

(4) the degree to which such country follows the accepted rules

of international trade provided for under the WTO Agreement and

the multilateral trade agreements (as such terms are defined in

paragraphs (9) and (4), respectively, of section 3501 of this

title);

(5) the degree to which such country uses export subsidies or

imposes export performance requirements or local content

requirements which distort international trade;

(6) the degree to which the trade policies of such country as

they relate to other beneficiary countries are contributing to

the revitalization of the region;

(7) the degree to which such country is undertaking self-help

measures to promote its own economic development;

(8) whether or not such country has taken or is taking steps to

afford to workers in that country (including any designated zone

in that country) internationally recognized worker rights.

(FOOTNOTE 1)

(FOOTNOTE 1) So in original. The period probably should be a

semicolon.

(9) the extent to which such country provides under its law

adequate and effective means for foreign nationals to secure,

exercise, and enforce exclusive rights in intellectual property,

including patent, trademark, and copyright rights;

(10) the extent to which such country prohibits its nationals

from engaging in the broadcast of copyrighted material, including

films or television material, belonging to United States

copyright owners without their express consent; and

(11) the extent to which such country is prepared to cooperate

with the United States in the administration of the provisions of

this chapter.

(d) Omitted

(e) Withdrawal or suspension of duty-free treatment to specific

articles

(1)(A) The President may, after the requirements of subsection

(a)(2) of this section and paragraph (2) have been met -

(i) withdraw or suspend the designation of any country as a

beneficiary country, or

(ii) withdraw, suspend, or limit the application of duty-free

treatment under this chapter to any article of any country,

if, after such designation, the President determines that as a

result of changed circumstances such country would be barred from

designation as a beneficiary country under subsection (b) of this

section.

(B) The President may, after the requirements of subsection

(a)(2) of this section and paragraph (2) have been met -

(i) withdraw or suspend the designation of any country as a

CBTPA beneficiary country; or

(ii) withdraw, suspend, or limit the application of

preferential treatment under section 2703(b)(2) and (3) of this

title to any article of any country,

if, after such designation, the President determines that, as a

result of changed circumstances, the performance of such country is

not satisfactory under the criteria set forth in section

2703(b)(5)(B) of this title.

(2)(A) The President shall publish in the Federal Register notice

of the action the President proposes to take under paragraph (1) at

least 30 days prior to taking such action.

(B) The United States Trade Representative shall, within the

30-day period beginning on the date on which the President

publishes under subparagraph (A) notice of proposed action -

(i) accept written comments from the public regarding such

proposed action,

(ii) hold a public hearing on such proposed action, and

(iii) publish in the Federal Register -

(I) notice of the time and place of such hearing prior to the

hearing, and

(II) the time and place at which such written comments will

be accepted.

(3) If preferential treatment under section 2703(b)(2) and (3) of

this title is withdrawn, suspended, or limited with respect to a

CBTPA beneficiary country, such country shall not be deemed to be a

''party'' for the purposes of applying section 2703(b)(5)(C) of

this title to imports of articles for which preferential treatment

has been withdrawn, suspended, or limited with respect to such

country.

(f) Reporting requirements

(1) In general

Not later than December 31, 2001, and every 2 years thereafter

during the period this chapter is in effect, the United States

Trade Representative shall submit to Congress a report regarding

the operation of this chapter, including -

(A) with respect to subsections (b) and (c) of this section,

the results of a general review of beneficiary countries based

on the considerations described in such subsections; and

(B) the performance of each beneficiary country or CBTPA

beneficiary country, as the case may be, under the criteria set

forth in section 2703(b)(5)(B) of this title.

(2) Public comment

Before submitting the report described in paragraph (1), the

United States Trade Representative shall publish a notice in the

Federal Register requesting public comments on whether

beneficiary countries are meeting the criteria listed in section

2703(b)(5)(B) of this title.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 212, Aug. 5, 1983, 97 Stat. 384;

Pub. L. 99-570, title IX, Sec. 9002(b), Oct. 27, 1986, 100 Stat.

3207-166; Pub. L. 100-418, title I, Sec. 1214(q)(1), 1909(c), Aug.

23, 1988, 102 Stat. 1159, 1318; Pub. L. 101-382, title II, Sec.

213, 214, Aug. 20, 1990, 104 Stat. 656; Pub. L. 103-465, title VI,

Sec. 621(a)(2), Dec. 8, 1994, 108 Stat. 4992; Pub. L. 104-188,

title I, Sec. 1954(a)(3), Aug. 20, 1996, 110 Stat. 1927; Pub. L.

106-200, title II, Sec. 211(b), (c)(1), (e)(2), May 18, 2000, 114

Stat. 286, 287.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsecs. (a) to (c) and (f), was in

the original ''this title'', meaning title II of Pub. L. 98-67,

Aug. 5, 1983, 97 Stat. 384, which is classified principally to this

chapter.

The Harmonized Tariff Schedule of the United States, referred to

in subsec. (a)(1)(C), is not set out in the Code. See Publication

of Harmonized Tariff Schedule note set out under section 1202 of

this title.

This Act, referred to in provisions following subsec. (b)(6),

probably should be ''this title'' meaning title II of Pub. L.

98-67, Aug. 5, 1983, 97 Stat. 384, which is classified principally

to this chapter. For complete classification of title II to the

Code, see Short Title note set out under section 2701 of this title

and Tables.

This chapter, referred to in subsec. (e)(1)(B), was in the

original ''this subtitle'', meaning subtitle A (Sec. 211-218) of

title II of Pub. L. 98-67 which enacted this chapter, amended

section 1202 of this title, repealed section 2582 of this title,

and enacted provisions set out as notes under sections 1202, 1319,

2251, and 2703 of this title and section 1311 of Title 33,

Navigation and Navigable Waters. For complete classification of

subtitle A to the Code, see Tables.

-COD-

CODIFICATION

Subsec. (d) of this section amended general headnote 3(a) of the

Tariff Schedules of the United States. The Tariff Schedules were

replaced by the Harmonized Tariff Schedule of the United States.

See References in Text note above.

-MISC3-

AMENDMENTS

2000 - Subsec. (a)(1)(D), (E). Pub. L. 106-200, Sec. 211(e)(2),

added subpars. (D) and (E).

Subsec. (e)(1). Pub. L. 106-200, Sec. 211(b)(1), designated

existing provisions as subpar. (A), redesignated former subpars.

(A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and

added subpar. (B).

Subsec. (e)(3). Pub. L. 106-200, Sec. 211(b)(2), added par. (3).

Subsec. (f). Pub. L. 106-200, Sec. 211(c)(1), inserted heading

and amended text generally. Prior to amendment, text read as

follows: ''On or before October 1, 1993, and the close of each

3-year period thereafter, the President shall submit to the

Congress a complete report regarding the operation of this chapter,

including the results of a general review of beneficiary countries

based on the considerations described in subsections (b) and (c) of

this section.''

1996 - Subsec. (b)(7). Pub. L. 104-188 substituted ''2467(4)''

for ''2462(a)(4)''.

1994 - Subsec. (c)(4). Pub. L. 103-465 substituted ''WTO

Agreement and the multilateral trade agreements (as such terms are

defined in paragraphs (9) and (4), respectively, of section 3501 of

this title)'' for ''General Agreement on Tariffs and Trade, as well

as applicable trade agreements approved under section 2503(a) of

this title''.

1990 - Subsec. (b). Pub. L. 101-382, Sec. 213(1)-(4), added par.

(7) and in concluding provisions substituted ''(5), and (7)'' for

''and (5)''.

Subsec. (c)(8). Pub. L. 101-382, Sec. 213(5), amended par. (8)

generally. Prior to amendment, par. (8) read as follows: ''the

degree to which workers in such country are afforded reasonable

workplace conditions and enjoy the right to organize and bargain

collectively;''.

Subsec. (f). Pub. L. 101-382, Sec. 214, added subsec. (f).

1988 - Subsec. (a)(1)(C). Pub. L. 100-418, Sec. 1214(q)(1),

substituted ''HTS'' and ''Harmonized Tariff Schedule of the United

States'' for ''TSUS'' and ''Tariff Schedules of the United

States'', respectively.

Subsec. (e). Pub. L. 100-418, Sec. 1909(c), amended subsec. (e)

generally. Prior to amendment, subsec. (e) read as follows: ''The

President shall, after complying with the requirements of

subsection (a)(2) of this section, withdraw or suspend the

designation of any country as a beneficiary country if, after such

designation, he determines that as the result of changed

circumstances such country would be barred from designation as a

beneficiary country under subsection (b) of this section.''

1986 - Subsec. (b)(6), (7). Pub. L. 99-570 redesignated par. (7)

as (6) and struck out former par. (6) which provided that the

President shall not designate a country as a beneficiary country

under this chapter if the country does not take adequate steps to

cooperate with the United States to prevent narcotic drugs and

other controlled substances produced, processed, or transported in

the country from entering the United States unlawfully.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-188 applicable to articles entered on or

after Oct. 1, 1996, with provisions relating to retroactive

application, see section 1953 of Pub. L. 104-188, set out as an

Effective Date note under section 2461 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective on the date on which the

WTO Agreement enters into force with respect to the United States

(Jan. 1, 1995), see section 621(b) of Pub. L. 103-465, set out as a

note under section 1677k of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1214(q)(1) of Pub. L. 100-418 effective Jan.

1, 1989, and applicable with respect to articles entered on or

after such date, see section 1217(b)(1) of Pub. L. 100-418, set out

as an Effective Date note under section 3001 of this title.

CARIBBEAN BASIN INITIATIVE

Section 1909(a), (b) of Pub. L. 100-418 provided that:

''(a) Findings. - The Congress finds that -

''(1) Caribbean and Central American countries historically

have had close economic, political, and cultural ties to the

United States;

''(2) promoting economic and political stability in the

Caribbean and Central America is in the national security

interests of the United States;

''(3) the economic and political stability of the nations of

the Caribbean and Central America can be strengthened

significantly by the attraction of foreign and domestic

investment specifically devoted to employment generation; and

''(4) the diversification of the economies and expansion of

exports, particularly those of a non-traditional nature, of the

nations of the Caribbean and Central America is linked directly

to fair access to the markets of the United States.

''(b) Intent of the Congress. - The Congress hereby expresses its

intention to ensure that -

''(1) the trade elements of the Caribbean Basin Initiative be

strengthened in a manner consistent with the promotion of

economic and political stability in the Caribbean and Central

America;

''(2) to the extent that Congress imposes changes that are

intended to improve the competitive environment for United States

industry and workers, such changes do not unduly affect the

unilateral duty-free trade system available to the beneficiary

countries designated under the Caribbean Basin Economic Recovery

Act (19 U.S.C. 2701 et seq.); and

''(3) generic changes in the trade laws of the United States do

not discriminate against imports from designated beneficiary

countries in relation to imports from other United States trading

partners.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1202, 2191, 2194, 2411,

2703, 2707 of this title; title 7 section 1737; title 26 sections

274, 936.

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19 USC Sec. 2703 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

-HEAD-

Sec. 2703. Eligible articles

-STATUTE-

(a) Growth, product, or manufacture of beneficiary countries

(1) Unless otherwise excluded from eligibility by this chapter,

and subject to section 423 of the Tax Reform Act of 1986, and

except as provided in subsection (b)(2) and (3) of this section,

the duty-free treatment provided under this chapter shall apply to

any article which is the growth, product, or manufacture of a

beneficiary country if -

(A) that article is imported directly from a beneficiary

country into the customs territory of the United States; and

(B) the sum of (i) the cost or value of the materials produced

in a beneficiary country or two or more beneficiary countries,

plus (ii) the direct costs of processing operations performed in

a beneficiary country or countries is not less than 35 per centum

of the appraised value of such article at the time it is entered.

For purposes of determining the percentage referred to in

subparagraph (B), the term ''beneficiary country'' includes the

Commonwealth of Puerto Rico and the United States Virgin Islands.

If the cost or value of materials produced in the customs territory

of the United States (other than the Commonwealth of Puerto Rico)

is included with respect to an article to which this paragraph

applies, an amount not to exceed 15 per centum 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 (B).

(2) The Secretary of the Treasury shall prescribe such

regulations as may be necessary to carry out this subsection

including, but not limited to, regulations providing that, in order

to be eligible for duty-free treatment under this chapter, an

article must be wholly the growth, product, or manufacture of a

beneficiary country, or must be a new or different article of

commerce which has been grown, produced, or manufactured in the

beneficiary country; but no article or material of a beneficiary

country shall be eligible for such treatment 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.

(3) As used in this subsection, the phrase ''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

(B) dies, molds, tooling, and depreciation on machinery and

equipment which are allocable to the specific merchandise.

Such phrase does not include costs which are not directly

attributable to the merchandise concerned or are not costs of

manufacturing the product, such as (i) profit, and (ii) 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.

(4) Notwithstanding section 1311 of this title, the products of a

beneficiary country which are imported directly from any

beneficiary country into Puerto Rico may be entered under bond for

processing or use in manufacturing in Puerto Rico. No duty shall be

imposed on the withdrawal from warehouse of the product of such

processing or manufacturing if, at the time of such withdrawal,

such product meets the requirements of paragraph (1)(B).

(5) The duty-free treatment provided under this chapter shall

apply to an article (other than an article listed in subsection (b)

of this section) which is the growth, product, or manufacture of

the Commonwealth of Puerto Rico if -

(A) the article is imported directly from the beneficiary

country into the customs territory of the United States,

(B) the article was by any means advanced in value or improved

in condition in a beneficiary country, and

(C) if any materials are added to the article in a beneficiary

country, such materials are a product of a beneficiary country or

the United States.

(6) Notwithstanding paragraph (1), the duty-free treatment

provided under this chapter shall apply to liqueurs and spirituous

beverages produced in the territory of Canada from rum if -

(A) such rum is the growth, product, or manufacture of a

beneficiary country or of the Virgin Islands of the United

States;

(B) such rum is imported directly from a beneficiary country or

the Virgin Islands of the United States into the territory of

Canada, and such liqueurs and spirituous beverages are imported

directly from the territory of Canada into the customs territory

of the United States;

(C) when imported into the customs territory of the United

States, such liqueurs and spirituous beverages are classified in

subheading 2208.90 or 2208.40 of the HTS; and

(D) such rum accounts for at least 90 percent by volume of the

alcoholic content of such liqueurs and spirituous beverages.

(b) Import-sensitive articles

(1) In general

Subject to paragraphs (2) through (5), the duty-free treatment

provided under this chapter does not apply to -

(A) textile and apparel articles which were not eligible

articles for purposes of this chapter on January 1, 1994, as

this chapter was in effect on that date;

(B) footwear not designated at the time of the effective date

of this chapter (Aug. 5, 1983) as eligible articles for the

purpose of the generalized system of preferences under title V

of the Trade Act of 1974 (19 U.S.C. 2461 et seq.);

(C) tuna, prepared or preserved in any manner, in airtight

containers;

(D) petroleum, or any product derived from petroleum,

provided for in headings 2709 and 2710 of the HTS;

(E) watches and watch parts (including cases, bracelets, and

straps), of whatever type including, but not limited to,

mechanical, quartz digital or quartz analog, if such watches or

watch parts contain any material which is the product of any

country with respect to which HTS column 2 rates of duty apply;

or

(F) articles to which reduced rates of duty apply under

subsection (h) of this section.

(2) Transition period treatment of certain textile and apparel

articles

(A) Articles covered

During the transition period, the preferential treatment

described in subparagraph (B) shall apply to the following

articles:

(i) Apparel articles assembled in one or more CBTPA

beneficiary countries

Apparel articles sewn or otherwise assembled in one or more

CBTPA beneficiary countries from fabrics wholly formed and

cut, or from components knit-to-shape, in the United States

from yarns wholly formed in the United States, (including

fabrics not formed from yarns, if such fabrics are

classifiable under heading 5602 or 5603 of the HTS and are

wholly formed and cut in the United States) that are -

(I) entered under subheading 9802.00.80 of the HTS; or

(II) entered under chapter 61 or 62 of the HTS, if, after

such assembly, the articles would have qualified for entry

under subheading 9802.00.80 of the HTS but for the fact

that the articles were embroidered or subjected to

stone-washing, enzyme-washing, acid washing,

perma-pressing, oven-baking, bleaching, garment-dyeing,

screen printing, or other similar processes.

Apparel articles entered on or after September 1, 2002, shall

qualify under the preceding sentence only if all dyeing,

printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is

carried out in the United States. Apparel articles entered on

or after September 1, 2002, shall qualify under the first

sentence of this clause only if all dyeing, printing, and

finishing of the fabrics from which the articles are

assembled, if the fabrics are woven fabrics, is carried out

in the United States. (FOOTNOTE 1)

(FOOTNOTE 1) So in original. Duplicative language added by Pub.

L. 107-206 and Pub. L. 107-210. See 2002 Amendment notes below.

Apparel articles shall qualify under the preceding sentence

only if all dyeing, printing, and finishing of the fabrics

from which the articles are assembled, if the fabrics are

knit fabrics, is carried out in the United States. Apparel

articles shall qualify under the first sentence of this

clause only if all dyeing, printing, and finishing of the

fabrics from which the articles are assembled, if the fabrics

are woven fabrics, is carried out in the United States.

(FOOTNOTE 1)

(ii) Other apparel articles assembled in one or more CBTPA

beneficiary countries

Apparel articles sewn or otherwise assembled in one or more

CBTPA beneficiary countries with thread formed in the United

States from fabrics wholly formed in the United States and

cut in one or more CBTPA beneficiary countries from yarns

wholly formed in the United States, or from components

knit-to-shape in the United States from yarns wholly formed

in the United States, or both (including fabrics not formed

from yarns, if such fabrics are classifiable under heading

5602 or 5603 of the HTS and are wholly formed in the United

States). Apparel articles entered on or after September 1,

2002, shall qualify under the preceding sentence only if all

dyeing, printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is

carried out in the United States. Apparel articles entered on

or after September 1, 2002, shall qualify under the first

sentence of this clause only if all dyeing, printing, and

finishing of the fabrics from which the articles are

assembled, if the fabrics are woven fabrics, is carried out

in the United States. (FOOTNOTE 1) Apparel articles shall

qualify under the preceding sentence only if all dyeing,

printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is

carried out in the United States. Apparel articles shall

qualify under the first sentence of this clause only if all

dyeing, printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are woven fabrics, is

carried out in the United States. (FOOTNOTE 1)

(iii) Certain knit apparel articles

(I) Apparel articles knit to shape (other than socks

provided for in heading 6115 of the HTS) in a CBTPA

beneficiary country from yarns wholly formed in the United

States, and knit apparel articles (other than t-shirts

described in subclause (III)) cut and wholly assembled in one

or more CBTPA beneficiary countries from fabric formed in one

or more CBTPA beneficiary countries or the United States from

yarns wholly formed in the United States (including fabrics

not formed from yarns, if such fabrics are classifiable under

heading 5602 or 5603 of the HTS and are formed in one or more

CBTPA beneficiary countries), in an amount not exceeding the

amount set forth in subclause (II).

(II) The amount referred to in subclause (I) is as follows:

(aa) 500,000,000 square meter equivalents during the

1-year period beginning on October 1, 2002.

(bb) 850,000,000 square meter equivalents during the

1-year period beginning on October 1, 2003.

(cc) 970,000,000 square meter equivalents in each

succeeding 1-year period through September 30, 2008.

(III) T-shirts, other than underwear, classifiable under

subheadings 6109.10.00 and 6109.90.10 of the HTS, made in one

or more CBTPA beneficiary countries from fabric formed in one

or more CBTPA beneficiary countries from yarns wholly formed

in the United States, in an amount not exceeding the amount

set forth in subclause (IV).

(IV) The amount referred to in subclause (III) is as

follows:

(aa) 4,872,000 dozen during the 1-year period beginning

on October 1, 2001.

(bb) 9,000,000 dozen during the 1-year period beginning

on October 1, 2002.

(cc) 10,000,000 dozen during the 1-year period beginning

on October 1, 2003.

(dd) 12,000,000 dozen in each succeeding 1-year period

through September 30, 2008.

(V) It is the sense of the Congress that the Congress

should determine, based on the record of expansion of exports

from the United States as a result of the preferential

treatment of articles under this clause, the percentage by

which the amount provided in subclauses (II) and (IV) should

be compounded for the 1-year periods occurring after the

1-year period ending on September 30, 2004.

(iv) Certain other apparel articles

(I) General rule

Subject to subclause (II), any apparel article

classifiable under subheading 6212.10 of the HTS, except

for articles entered under clause (i), (ii), (iii), (v), or

(vi), if the article is both cut and sewn or otherwise

assembled in the United States, or one or more CBTPA

beneficiary countries, or both.

(II) Limitation

During the 1-year period beginning on October 1, 2001,

and during each of the 6 succeeding 1-year periods, apparel

articles described in subclause (I) of a producer or an

entity controlling production shall be eligible for

preferential treatment under subparagraph (B) only if the

aggregate cost of fabrics (exclusive of all findings and

trimmings) formed in the United States that are used in the

production of all such articles of that producer or entity

that are entered and eligible under this clause during the

preceding 1-year period is at least 75 percent of the

aggregate declared customs value of the fabric (exclusive

of all findings and trimmings) contained in all such

articles of that producer or entity that are entered and

eligible under this clause during the preceding 1-year

period.

(III) Development of procedure to ensure compliance

The United States Customs Service shall develop and

implement methods and procedures to ensure ongoing

compliance with the requirement set forth in subclause

(II). If the Customs Service finds that a producer or an

entity controlling production has not satisfied such

requirement in a 1-year period, then apparel articles

described in subclause (I) of that producer or entity shall

be ineligible for preferential treatment under subparagraph

(B) during any succeeding 1-year period until the aggregate

cost of fabrics (exclusive of all findings and trimmings)

formed in the United States that are used in the production

of such articles of that producer or entity entered during

the preceding 1-year period is at least 85 percent of the

aggregate declared customs value of the fabric (exclusive

of all findings and trimmings) contained in all such

articles of that producer or entity that are entered and

eligible under this clause during the preceding 1-year

period.

(v) Apparel articles assembled from fabrics or yarn not

widely available in commercial quantities

(I) Apparel articles that are both cut (or knit-to-shape)

and sewn or otherwise assembled in one or more CBTPA

beneficiary countries, from fabrics or yarn that is not

formed in the United States or in one or more CBTPA

beneficiary countries, to the extent that apparel articles of

such fabrics or yarn would be eligible for preferential

treatment, without regard to the source of the fabrics or

yarn, under Annex 401 of the NAFTA.

(II) At the request of any interested party, the President

is authorized to proclaim additional fabrics and yarn as

eligible for preferential treatment under subclause (I) if -

(aa) the President determines that such fabrics or yarn

cannot be supplied by the domestic industry in commercial

quantities in a timely manner;

(bb) the President has obtained advice regarding the

proposed action from the appropriate advisory committee

established under section 135 of the Trade Act of 1974 (19

U.S.C. 2155) and the United States International Trade

Commission;

(cc) within 60 days after the request, the President has

submitted a report to the Committee on Ways and Means of

the House of Representatives and the Committee on Finance

of the Senate that sets forth the action proposed to be

proclaimed and the reasons for such actions, and the advice

obtained under division (bb);

(dd) a period of 60 calendar days, beginning with the

first day on which the President has met the requirements

of division (cc), has expired; and

(ee) the President has consulted with such committees

regarding the proposed action during the period referred to

in division (cc).

(vi) Handloomed, handmade, and folklore articles

A handloomed, handmade, or folklore article of a CBTPA

beneficiary country identified under subparagraph (C) that is

certified as such by the competent authority of such

beneficiary country.

(vii) Special rules

(I) Exception for findings and trimmings

(aa) An article otherwise eligible for preferential

treatment under this paragraph shall not be ineligible for

such treatment because the article contains findings or

trimmings of foreign origin, if such findings and trimmings

do not exceed 25 percent of the cost of the components of

the assembled product. Examples of findings and trimmings

are sewing thread, hooks and eyes, snaps, buttons, ''bow

buds'', decorative lace, trim, elastic strips, zippers,

including zipper tapes and labels, and other similar

products. Elastic strips are considered findings or

trimmings only if they are each less than 1 inch in width

and are used in the production of brassieres.

(bb) In the case of an article described in clause (ii)

of this subparagraph, sewing thread shall not be treated as

findings or trimmings under this subclause.

(II) Certain interlining

(aa) An article otherwise eligible for preferential

treatment under this paragraph shall not be ineligible for

such treatment because the article contains certain

interlinings of foreign origin, if the value of such

interlinings (and any findings and trimmings) does not

exceed 25 percent of the cost of the components of the

assembled article.

(bb) Interlinings eligible for the treatment described in

division (aa) include only a chest type plate, ''hymo''

piece, or ''sleeve header'', of woven or weft-inserted warp

knit construction and of coarse animal hair or man-made

filaments.

(cc) The treatment described in this subclause shall

terminate if the President makes a determination that

United States manufacturers are producing such interlinings

in the United States in commercial quantities.

(III) De minimis rule

An article that would otherwise be ineligible for

preferential treatment under this paragraph because the

article contains fibers or yarns not wholly formed in the

United States or in one or more CBTPA beneficiary countries

shall not be ineligible for such treatment if the total

weight of all such fibers or yarns is not more than 7

percent of the total weight of the good. Notwithstanding

the preceding sentence, an apparel article containing

elastomeric yarns shall be eligible for preferential

treatment under this paragraph only if such yarns are

wholly formed in the United States.

(IV) Special origin rule

An article otherwise eligible for preferential treatment

under clause (i) or (ii) of this subparagraph shall not be

ineligible for such treatment because the article contains

nylon filament yarn (other than elastomeric yarn) that is

classifiable under subheading 5402.10.30, 5402.10.60,

5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10,

5402.41.90, 5402.51.00, or 5402.61.00 of the HTS duty-free

from a country that is a party to an agreement with the

United States establishing a free trade area, which entered

into force before January 1, 1995.

(V) Thread

An article otherwise eligible for preferential treatment

under this paragraph shall not be ineligible for such

treatment because the thread used to assemble the article

is dyed, printed, or finished in one or more CBTPA

beneficiary countries.

(viii) Textile luggage

Textile luggage -

(I) assembled in a CBTPA beneficiary country from fabric

wholly formed and cut in the United States, from yarns

wholly formed in the United States, that is entered under

subheading 9802.00.80 of the HTS; or

(II) assembled from fabric cut in a CBTPA beneficiary

country from fabric wholly formed in the United States from

yarns wholly formed in the United States.

(ix) Apparel articles assembled in one or more CBTPA

beneficiary countries from United States and CBTPA

beneficiary country components

Apparel articles sewn or otherwise assembled in one or more

CBTPA beneficiary countries with thread formed in the United

States from components cut in the United States and in one or

more CBTPA beneficiary countries from fabric wholly formed in

the United States from yarns wholly formed in the United

States, or from components knit-to-shape in the United States

and one or more CBTPA beneficiary countries from yarns wholly

formed in the United States, or both (including fabrics not

formed from yarns, if such fabrics are classifiable under

heading 5602 or 5603 of the HTS). Apparel articles shall

qualify under this clause only if they meet the requirements

of clause (i) or (ii) (as the case may be) with respect to

dyeing, printing, and finishing of knit and woven fabrics

from which the articles are assembled.

(B) Preferential treatment

Except as provided in subparagraph (E), during the transition

period, the articles to which this subparagraph applies shall

enter the United States free of duty and free of any

quantitative restrictions, limitations, or consultation levels.

(C) Handloomed, handmade, and folklore articles

For purposes of subparagraph (A)(vi), the President shall

consult with representatives of the CBTPA beneficiary countries

concerned for the purpose of identifying particular textile and

apparel goods that are mutually agreed upon as being

handloomed, handmade, or folklore goods of a kind described in

section 2.3(a), (b), or (c) of the Annex or Appendix 3.1.B.11

of the Annex.

(D) Penalties for transshipments

(i) Penalties for exporters

If the President determines, based on sufficient evidence,

that an exporter has engaged in transshipment with respect to

textile or apparel articles from a CBTPA beneficiary country,

then the President shall deny all benefits under this chapter

to such exporter, and any successor of such exporter, for a

period of 2 years.

(ii) Penalties for countries

Whenever the President finds, based on sufficient evidence,

that transshipment has occurred, the President shall request

that the CBTPA beneficiary country or countries through whose

territory the transshipment has occurred take all necessary

and appropriate actions to prevent such transshipment. If

the President determines that a country is not taking such

actions, the President shall reduce the quantities of textile

and apparel articles that may be imported into the United

States from such country by the quantity of the transshipped

articles multiplied by 3, to the extent consistent with the

obligations of the United States under the WTO.

(iii) Transshipment described

Transshipment within the meaning of this subparagraph has

occurred when preferential treatment under subparagraph (B)

has been claimed for a textile or apparel article on the

basis of material false information concerning the country of

origin, manufacture, processing, or assembly of the article

or any of its components. For purposes of this clause, false

information is material if disclosure of the true information

would mean or would have meant that the article is or was

ineligible for preferential treatment under subparagraph (B).

(E) Bilateral emergency actions

(i) In general

The President may take bilateral emergency tariff actions

of a kind described in section 4 of the Annex with respect to

any apparel article imported from a CBTPA beneficiary country

if the application of tariff treatment under subparagraph (B)

to such article results in conditions that would be cause for

the taking of such actions under such section 4 with respect

to a like article described in the same 8-digit subheading of

the HTS that is imported from Mexico.

(ii) Rules relating to bilateral emergency action

For purposes of applying bilateral emergency action under

this subparagraph -

(I) the requirements of paragraph (5) of section 4 of the

Annex (relating to providing compensation) shall not apply;

(II) the term ''transition period'' in section 4 of the

Annex shall have the meaning given that term in paragraph

(5)(D) of this subsection; and

(III) the requirements to consult specified in section 4

of the Annex shall be treated as satisfied if the President

requests consultations with the CBTPA beneficiary country

in question and the country does not agree to consult

within the time period specified under section 4.

(3) Transition period treatment of certain other articles

originating in beneficiary countries

(A) Equivalent tariff treatment

(i) In general

Subject to clause (ii), the tariff treatment accorded at

any time during the transition period to any article referred

to in any of subparagraphs (B) through (F) of paragraph (1)

that is a CBTPA originating good shall be identical to the

tariff treatment that is accorded at such time under Annex

302.2 of the NAFTA to an article described in the same

8-digit subheading of the HTS that is a good of Mexico and is

imported into the United States.

(ii) Exception

Clause (i) does not apply to any article accorded duty-free

treatment under U.S. Note 2(b) to subchapter II of chapter 98

of the HTS.

(B) Relationship to subsection (h) duty reductions

If at any time during the transition period the rate of duty

that would (but for action taken under subparagraph (A)(i) in

regard to such period) apply with respect to any article under

subsection (h) of this section is a rate of duty that is lower

than the rate of duty resulting from such action, then such

lower rate of duty shall be applied for the purposes of

implementing such action.

(4) Customs procedures

(A) In general

(i) Regulations

Any importer that claims preferential treatment under

paragraph (2) or (3) shall comply with customs procedures

similar in all material respects to the requirements of

Article 502(1) of the NAFTA as implemented pursuant to United

States law, in accordance with regulations promulgated by the

Secretary of the Treasury.

(ii) Determination

(I) In general

In order to qualify for the preferential treatment under

paragraph (2) or (3) and for a Certificate of Origin to be

valid with respect to any article for which such treatment

is claimed, there shall be in effect a determination by the

President that each country described in subclause (II) -

(aa) has implemented and follows; or

(bb) is making substantial progress toward implementing

and following,

procedures and requirements similar in all material respects

to the relevant procedures and requirements under chapter 5

of the NAFTA.

(II) Country described

A country is described in this subclause if it is a CBTPA

beneficiary country -

(aa) from which the article is exported; or

(bb) in which materials used in the production of the

article originate or in which the article or such

materials undergo production that contributes to a claim

that the article is eligible for preferential treatment

under paragraph (2) or (3).

(B) Certificate of origin

The Certificate of Origin that otherwise would be required

pursuant to the provisions of subparagraph (A) shall not be

required in the case of an article imported under paragraph (2)

or (3) if such Certificate of Origin would not be required

under Article 503 of the NAFTA (as implemented pursuant to

United States law), if the article were imported from Mexico.

(C) Report by USTR on cooperation of other countries concerning

circumvention

The United States Commissioner of Customs shall conduct a

study analyzing the extent to which each CBTPA beneficiary

country -

(i) has cooperated fully with the United States, consistent

with its domestic laws and procedures, in instances of

circumvention or alleged circumvention of existing quotas on

imports of textile and apparel goods, to establish necessary

relevant facts in the places of import, export, and, where

applicable, transshipment, including investigation of

circumvention practices, exchanges of documents,

correspondence, reports, and other relevant information, to

the extent such information is available;

(ii) has taken appropriate measures, consistent with its

domestic laws and procedures, against exporters and importers

involved in instances of false declaration concerning fiber

content, quantities, description, classification, or origin

of textile and apparel goods; and

(iii) has penalized the individuals and entities involved

in any such circumvention, consistent with its domestic laws

and procedures, and has worked closely to seek the

cooperation of any third country to prevent such

circumvention from taking place in that third country.

The Trade Representative shall submit to Congress, not later

than October 1, 2001, a report on the study conducted under

this subparagraph.

(5) Definitions and special rules

For purposes of this subsection -

(A) Annex

The term ''the Annex'' means Annex 300-B of the NAFTA.

(B) CBTPA beneficiary country

The term ''CBTPA beneficiary country'' means any

''beneficiary country'', as defined in section 2702(a)(1)(A) of

this title, which the President designates as a CBTPA

beneficiary country, taking into account the criteria contained

in subsections (b) and (c) of section 2702 of this title and

other appropriate criteria, including the following:

(i) Whether the beneficiary country has demonstrated a

commitment to -

(I) undertake its obligations under the WTO, including

those agreements listed in section 3511(d) of this title,

on or ahead of schedule; and

(II) participate in negotiations toward the completion of

the FTAA or another free trade agreement.

(ii) The extent to which the country provides protection of

intellectual property rights consistent with or greater than

the protection afforded under the Agreement on Trade-Related

Aspects of Intellectual Property Rights described in section

3511(d)(15) of this title.

(iii) The extent to which the country provides

internationally recognized worker rights, including -

(I) the right of association;

(II) the right to organize and bargain collectively;

(III) a prohibition on the use of any form of forced or

compulsory labor;

(IV) a minimum age for the employment of children; and

(V) acceptable conditions of work with respect to minimum

wages, hours of work, and occupational safety and health;

(iv) Whether the country has implemented its commitments to

eliminate the worst forms of child labor, as defined in

section 507(6) of the Trade Act of 1974 (19 U.S.C. 2467(6)).

(v) The extent to which the country has met the

counter-narcotics certification criteria set forth in section

2291j of title 22 for eligibility for United States

assistance.

(vi) The extent to which the country has taken steps to

become a party to and implements the Inter-American

Convention Against Corruption.

(vii) The extent to which the country -

(I) applies transparent, nondiscriminatory, and

competitive procedures in government procurement equivalent

to those contained in the Agreement on Government

Procurement described in section 3511(d)(17) of this title;

and

(II) contributes to efforts in international fora to

develop and implement international rules in transparency

in government procurement.

(C) CBTPA originating good

(i) In general

The term ''CBTPA originating good'' means a good that meets

the rules of origin for a good set forth in chapter 4 of the

NAFTA as implemented pursuant to United States law.

(ii) Application of chapter 4

In applying chapter 4 of the NAFTA with respect to a CBTPA

beneficiary country for purposes of this subsection -

(I) no country other than the United States and a CBTPA

beneficiary country may be treated as being a party to the

NAFTA;

(II) any reference to trade between the United States and

Mexico shall be deemed to refer to trade between the United

States and a CBTPA beneficiary country;

(III) any reference to a party shall be deemed to refer

to a CBTPA beneficiary country or the United States; and

(IV) any reference to parties shall be deemed to refer to

any combination of CBTPA beneficiary countries or to the

United States and one or more CBTPA beneficiary countries

(or any combination thereof).

(D) Transition period

The term ''transition period'' means, with respect to a CBTPA

beneficiary country, the period that begins on October 1, 2000,

and ends on the earlier of -

(i) September 30, 2008; or

(ii) the date on which the FTAA or another free trade

agreement that makes substantial progress in achieving the

negotiating objectives set forth in 3317(b)(5) (FOOTNOTE 2)

of this title enters into force with respect to the United

States and the CBTPA beneficiary country.

(FOOTNOTE 2) So in original. Probably should be preceded by

''section''.

(E) CBTPA

The term ''CBTPA'' means the United States-Caribbean Basin

Trade Partnership Act.

(F) FTAA

The term ''FTAA'' means the Free Trade Area of the Americas.

(c) Sugar and beef products; stable food production plan;

suspension of duty-free treatment; monitoring

(1) As used in this subsection -

(A) The term ''sugar and beef products'' means -

(i) sugars, sirups, and molasses provided for in subheadings

1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30,

1806.10.40, and 2106.90.10 of the Harmonized Tariff Schedule of

the United States, and

(ii) articles of beef or veal, however provided for in

chapters 2 and 16 of the Harmonized Tariff Schedule of the

United States.

(B) The term ''Plan'' means a stable food production plan that

consists of measures and proposals designed to ensure that the

present level of food production in, and the nutritional level of

the population of, a beneficiary country will not be adversely

affected by changes in land use and land ownership that will

result if increased production of sugar and beef products is

undertaken in response to the duty-free treatment extended under

this chapter to such products. A Plan must specify such facts

regarding, and such proposed actions by, a beneficiary country as

the President deems necessary for purposes of carrying out this

subsection, including but not limited to -

(i) the current levels of food production and nutritional

health of the population;

(ii) current level of production and export of sugar and beef

products;

(iii) expected increases in production and export of sugar

and beef products as a result of the duty-free access to the

United States market provided under this chapter;

(iv) measures to be taken to ensure that the expanded

production of those products because of such duty-free access

will not occur at the expense of stable food production; and

(v) proposals for a system to monitor the impact of such

duty-free access on stable food production and land use and

land ownership patterns.

(2) Duty-free treatment extended under this chapter to sugar and

beef products that are the product of a beneficiary country shall

be suspended by the President under this subsection if -

(A) the beneficiary country, within the ninety-day period

beginning on the date of its designation as such a country under

section 2702 of this title, does not submit a Plan to the

President for evaluation;

(B) on the basis of his evaluation, the President determines

that the Plan of a beneficiary country does not meet the criteria

set forth in paragraph (1)(B); or

(C) as a result of the monitoring of the operation of the Plan

under paragraph (5), the President determines that a beneficiary

country is not making a good faith effort to implement its Plan,

or that the measures and proposals in the Plan, although being

implemented, are not achieving their purposes.

(3) Before the President suspends duty-free treatment by reason

of paragraph (2)(A), (B), or (C) to the sugar and beef products of

a beneficiary country, he must offer to enter into consultation

with the beneficiary country for purposes of formulating

appropriate remedial action which may be taken by that country to

avoid such suspension. If the beneficiary country thereafter

enters into consultation within a reasonable time and undertakes to

formulate remedial action in good faith, the President shall

withhold the suspension of duty-free treatment on the condition

that the remedial action agreed upon be appropriately implemented

by that country.

(4) The President shall monitor on a biennial basis the operation

of the Plans implemented by beneficiary countries, and shall submit

a written report to Congress by March 15 following the close of

each biennium, that -

(A) specifies the extent to which each Plan, and remedial

actions, if any, agreed upon under paragraph (4), have been

implemented; and

(B) evaluates the results of such implementation.

(5) The President shall terminate any suspension of duty-free

treatment imposed under this subsection if he determines that the

beneficiary country has taken appropriate action to remedy the

factors on which the suspension was based.

(d) Tariff-rate quotas

No quantity of an agricultural product subject to a tariff-rate

quota that exceeds the in-quota quantity shall be eligible for

duty-free treatment under this chapter.

(e) Proclamations suspending duty-free treatment

(1) The President may by proclamation suspend the duty-free

treatment provided by this chapter with respect to any eligible

article and may proclaim a duty rate for such article if such

action is provided under chapter 1 of title II of the Trade Act of

1974 (19 U.S.C. 2251 et seq.) or section 1862 of this title.

(2) In any report by the International Trade Commission to the

President under section 202(f) of the Trade Act of 1974 (19 U.S.C.

2252(f)) regarding any article for which duty-free treatment has

been proclaimed by the President pursuant to this chapter, the

Commission shall state whether and to what extent its findings and

recommendations apply to such article when imported from

beneficiary countries.

(3) For purposes of subsections (FOOTNOTE 3) section 203 of the

Trade Act of 1974 (19 U.S.C. 2253(a), (c)), the suspension of the

duty-free treatment provided by this chapter shall be treated as an

increase in duty.

(FOOTNOTE 3) So in original.

(4) No proclamation which provides solely for a suspension

referred to in paragraph (3) of this subsection with respect to any

article shall be taken under section 203 of the Trade Act of 1974

(19 U.S.C. 2253) unless the United States International Trade

Commission, in addition to making an affirmative determination with

respect to such article under section 202(b) of the Trade Act of

1974 (19 U.S.C. 2252(b)), determines in the course of its

investigation under such section that the serious injury (or threat

thereof) substantially caused by imports to the domestic industry

producing a like or directly competitive article results from the

duty-free treatment provided by this chapter.

(5)(A) Any action taken under section 203 of the Trade Act of

1974 (19 U.S.C. 2253) that is in effect when duty-free treatment

pursuant to section 2701 (FOOTNOTE 4) of this title is proclaimed

shall remain in effect until modified or terminated.

(FOOTNOTE 4) See References in Text note below.

(B) If any article is subject to any such action at the time

duty-free treatment is proclaimed pursuant to section 2701 of this

title, the President may reduce or terminate the application of

such action to the importation of such article from beneficiary

countries prior to the otherwise scheduled date on which such

reduction or termination would occur pursuant to the criteria and

procedures of section 203 of the Trade Act of 1974 (19 U.S.C.

2253).

(f) Petitions to International Trade Commission

(1) If a petition is filed with the International Trade

Commission pursuant to the provisions of section 201 of the Trade

Act of 1974 (19 U.S.C. 2251) regarding a perishable product and

alleging injury from imports from beneficiary countries, then the

petition may also be filed with the Secretary of Agriculture with a

request that emergency relief be granted pursuant to paragraph (3)

of this subsection with respect to such article.

(2) Within fourteen days after the filing of a petition under

paragraph (1) of this subsection -

(A) if the Secretary of Agriculture has reason to believe that

a perishable product from a beneficiary country is being imported

into the United States in such increased quantities as to be a

substantial cause of serious injury, or the threat thereof, to

the domestic industry producing a perishable product like or

directly competitive with the imported product and that emergency

action is warranted, he shall advise the President and recommend

that the President take emergency action; or

(B) the Secretary of Agriculture shall publish a notice of his

determination not to recommend the imposition of emergency action

and so advise the petitioner.

(3) Within seven days after the President receives a

recommendation from the Secretary of Agriculture to take emergency

action pursuant to paragraph (2) of this subsection, he shall issue

a proclamation withdrawing the duty-free treatment provided by this

chapter or publish a notice of his determination not to take

emergency action.

(4) The emergency action provided by paragraph (3) of this

subsection shall cease to apply -

(A) upon the taking of action under section 203 of the Trade

Act of 1974 (19 U.S.C. 2253),

(B) on the day a determination by the President not to take

action (FOOTNOTE 3) under section 203 of such Act (19 U.S.C.

2253) not to take action (FOOTNOTE 3) becomes final,

(C) in the event of a report of the United States International

Trade Commission containing a negative finding, on the day the

Commission's report is submitted to the President, or

(D) whenever the President determines that because of changed

circumstances such relief is no longer warranted.

(5) For purposes of this subsection, the term ''perishable

product'' means -

(A) live plants and fresh cut flowers provided for in chapter 6

of the HTS;

(B) fresh or chilled vegetables provided for in headings 0701

through 0709 (except subheading 0709.52.00) and heading 0714 of

the HTS;

(C) fresh fruit provided for in subheadings 0804.20 through

0810.90 (except citrons of subheading 0805.90.00, tamarinds and

kiwi fruit of subheading 0810.90.20, and cashew apples, mameyes

colorados, sapodillas, soursops and sweetsops of subheading

0810.90.40) of the HTS; and

(D) concentrated citrus fruit juice provided for in subheadings

2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of

the HTS.

(g) Fees not affected by proclamation

No proclamation issued pursuant to this chapter shall affect fees

imposed pursuant to section 624 of title 7.

(h) Duty reduction for certain leather-related products

(1) Subject to paragraph (2), the President shall proclaim

reductions in the rates of duty on handbags, luggage, flat goods,

work gloves, and leather wearing apparel that -

(A) are the product of any beneficiary country; and

(B) were not designated on August 5, 1983, as eligible articles

for purposes of the generalized system of preferences under title

V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.).

(2) The reduction required under paragraph (1) in the rate of

duty on any article shall -

(A) result in a rate that is equal to 80 percent of the rate of

duty that applies to the article on December 31, 1991, except

that, subject to the limitations in paragraph (3), the reduction

may not exceed 2.5 percent ad valorem; and

(B) be implemented in 5 equal annual stages with the first

one-fifth of the aggregate reduction in the rate of duty being

applied to entries, or withdrawals from warehouse for

consumption, of the article on or after January 1, 1992.

(3) The reduction required under this subsection with respect to

the rate of duty on any article is in addition to any reduction in

the rate of duty on that article that may be proclaimed by the

President as being required or appropriate to carry out any trade

agreement entered into under the Uruguay Round of trade

negotiations; except that if the reduction so proclaimed -

(A) is less than 1.5 percent ad valorem, the aggregate of such

proclaimed reduction and the reduction under this subsection may

not exceed 3.5 percent ad valorem, or

(B) is 1.5 percent ad valorem or greater, the aggregate of such

proclaimed reduction and the reduction under this subsection may

not exceed the proclaimed reduction plus 1 percent ad valorem.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 213, Aug. 5, 1983, 97 Stat. 387;

Pub. L. 98-573, title II, Sec. 235, Oct. 30, 1984, 98 Stat. 2992;

Pub. L. 99-514, title IV, Sec. 423(f)(2), title XVIII, Sec. 1890,

Oct. 22, 1986, 100 Stat. 2232, 2926; Pub. L. 100-418, title I, Sec.

1214(q)(2), 1401(b)(2), Aug. 23, 1988, 102 Stat. 1159, 1239; Pub.

L. 100-647, title IX, Sec. 9001(a)(14), Nov. 10, 1988, 102 Stat.

3808; Pub. L. 101-382, title II, Sec. 212, 215(a), Aug. 20, 1990,

104 Stat. 655, 657; Pub. L. 103-465, title IV, Sec. 404(e)(1), Dec.

8, 1994, 108 Stat. 4961; Pub. L. 106-200, title II, Sec. 211(a),

(e)(1)(B), 212, May 18, 2000, 114 Stat. 276, 287, 288; Pub. L.

107-206, title III, Sec. 3001((a)), Aug. 2, 2002, 116 Stat. 909;

Pub. L. 107-210, div. C, title XXXI, Sec. 3107(a), Aug. 6, 2002,

116 Stat. 1035.)

-REFTEXT-

REFERENCES IN TEXT

Section 423 of the Tax Reform Act of 1986, referred to in subsec.

(a)(1), is section 423 of Pub. L. 99-514, title IV, Oct. 22, 1986,

100 Stat. 2230, which amended this section and General Headnote

3(a)(i) of the Tariff Schedules of the United States formerly set

out under section 1202 of this title, and enacted provisions set

out as a note below.

The Trade Act of 1974, referred to in subsecs. (b)(1)(B), (e)(1),

and (h)(1)(B), is Pub. L. 93-618, Jan. 3, 1975, 88 Stat. 1978, as

amended. Chapter 1 of title II of the Trade Act of 1974 is

classified generally to part 1 (Sec. 2251 et seq.) of subchapter II

of chapter 12 of this title. Title V of the Trade Act of 1974 is

classified generally to subchapter V (Sec. 2461 et seq.) of chapter

12 of this title. For complete classification of this Act to the

Code, see section 2101 of this title and Tables.

The United States-Caribbean Basin Trade Partnership Act, referred

to in subsec. (b)(5)(E), is title II of Pub. L. 106-200, May 18,

2000, 114 Stat. 275, which amended this section and sections 2701,

2702, 2704, 3202, and 3204 of this title and enacted provisions set

out as notes under section 2701 of this title. For complete

classification of this Act to the Code, see Short Title of 2000

Amendment note set out under section 2701 of this title and Tables.

The Harmonized Tariff Schedule of the United States, referred to

in subsec. (c)(1)(A), is not set out in the Code. See Publication

of Harmonized Tariff Schedule note set out under section 1202 of

this title.

Section 2701 of this title, referred to in subsec. (e)(5)(A), was

in the original ''section 101 of this title'' which has been

translated as the probable intent of Congress as meaning section

211 of this title.

-MISC2-

AMENDMENTS

2002 - Subsec. (b)(2)(A)(i). Pub. L. 107-210, Sec. 3107(a)(1)(B),

inserted at end ''Apparel articles entered on or after September 1,

2002, shall qualify under the preceding sentence only if all

dyeing, printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is carried

out in the United States. Apparel articles entered on or after

September 1, 2002, shall qualify under the first sentence of this

clause only if all dyeing, printing, and finishing of the fabrics

from which the articles are assembled, if the fabrics are woven

fabrics, is carried out in the United States.''

Pub. L. 107-210, Sec. 3107(a)(1)(A), added introductory

provisions and struck out former introductory provisions which read

as follows: ''Apparel articles assembled in one or more CBTPA

beneficiary countries from fabrics wholly formed and cut in the

United States, from yarns wholly formed in the United States,

(including fabrics not formed from yarns, if such fabrics are

classifiable under heading 5602 or 5603 of the HTS and are wholly

formed and cut in the United States) that are - ''.

Pub. L. 107-206, Sec. 3001((a))(1), inserted at end ''Apparel

articles shall qualify under the preceding sentence only if all

dyeing, printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is carried

out in the United States. Apparel articles shall qualify under the

first sentence of this clause only if all dyeing, printing, and

finishing of the fabrics from which the articles are assembled, if

the fabrics are woven fabrics, is carried out in the United

States.''

Subsec. (b)(2)(A)(ii). Pub. L. 107-210, Sec. 3107(a)(2), amended

heading and text of cl. (ii) generally. Prior to amendment, text

read as follows: ''Apparel articles cut in one or more CBTPA

beneficiary countries from fabric wholly formed in the United

States from yarns wholly formed in the United States (including

fabrics not formed from yarns, if such fabrics are classifiable

under heading 5602 or 5603 of the HTS and are wholly formed in the

United States), if such articles are assembled in one or more such

countries with thread formed in the United States.''

Pub. L. 107-206, Sec. 3001((a))(2), inserted at end ''Apparel

articles shall qualify under the preceding sentence only if all

dyeing, printing, and finishing of the fabrics from which the

articles are assembled, if the fabrics are knit fabrics, is carried

out in the United States. Apparel articles shall qualify under the

first sentence of this clause only if all dyeing, printing, and

finishing of the fabrics from which the articles are assembled, if

the fabrics are woven fabrics, is carried out in the United

States.''

Subsec. (b)(2)(A)(iii)(II). Pub. L. 107-210, Sec. 3107(a)(3),

amended subcl. (II) generally. Prior to amendment, subcl. (II)

read as follows: ''The amount referred to in subclause (I) is -

''(aa) 250,000,000 square meter equivalents during the 1-year

period beginning on October 1, 2000, increased by 16 percent,

compounded annually, in each succeeding 1-year period through

September 30, 2004; and

''(bb) in each 1-year period thereafter through September 30,

2008, the amount in effect for the 1-year period ending on

September 30, 2004, or such other amount as may be provided by

law.''

Subsec. (b)(2)(A)(iii)(IV). Pub. L. 107-210, Sec. 3107(a)(4),

amended subcl. (IV) generally. Prior to amendment, subcl. (IV)

read as follows: ''the amount referred to in subclause (III) is -

''(aa) 4,200,000 dozen during the 1-year period beginning on

October 1, 2000, increased by 16 percent, compounded annually, in

each succeeding 1-year period through September 30, 2004; and

''(bb) in each 1-year period thereafter, the amount in effect

for the 1-year period ending on September 30, 2004, or such other

amount as may be provided by law.''

Subsec. (b)(2)(A)(iv). Pub. L. 107-210, Sec. 3107(a)(5), amended

heading and text of cl. (iv) generally. Prior to amendment, text

read as follows:

''(I) Subject to subclause (II), any apparel article classifiable

under subheading 6212.10 of the HTS, if the article is both cut and

sewn or otherwise assembled in the United States, or one or more of

the CBTPA beneficiary countries, or both.

''(II) During the 1-year period beginning on October 1, 2001, and

during each of the six succeeding 1-year periods, apparel articles

described in subclause (I) of a producer or an entity controlling

production shall be eligible for preferential treatment under

subparagraph (B) only if the aggregate cost of fabric components

formed in the United States that are used in the production of all

such articles of that producer or entity during the preceding

1-year period is at least 75 percent of the aggregate declared

customs value of the fabric contained in all such articles of that

producer or entity that are entered during the preceding 1-year

period.

''(III) The United States Customs Service shall develop and

implement methods and procedures to ensure ongoing compliance with

the requirement set forth in subclause (II). If the Customs Service

finds that a producer or an entity controlling production has not

satisfied such requirement in a 1-year period, then apparel

articles described in subclause (I) of that producer or entity

shall be ineligible for preferential treatment under subparagraph

(B) during any succeeding 1-year period until the aggregate cost of

fabric components formed in the United States used in the

production of such articles of that producer or entity in the

preceding 1-year period is at least 85 percent of the aggregate

declared customs value of the fabric contained in all such articles

of that producer or entity that are entered during the preceding

1-year period.''

Subsec. (b)(2)(A)(vii)(V). Pub. L. 107-210, Sec. 3107(a)(6),

added subcl. (V).

Subsec. (b)(2)(A)(ix). Pub. L. 107-210, Sec. 3107(a)(7), added

cl. (ix).

2000 - Subsec. (a)(1). Pub. L. 106-200, Sec. 211(e)(1)(B),

inserted ''and except as provided in subsection (b)(2) and (3) of

this section,'' after ''Tax Reform Act of 1986,'' in introductory

provisions.

Subsec. (a)(5). Pub. L. 106-200, Sec. 212(1), made technical

amendment to reference in original act which appears in text as

reference to this chapter.

Subsec. (a)(6). Pub. L. 106-200, Sec. 212(2), added par. (6).

Subsec. (b). Pub. L. 106-200, Sec. 211(a), inserted heading and

amended text generally. Prior to amendment, text read as follows:

''The duty-free treatment provided under this chapter shall not

apply to -

''(1) textile and apparel articles which are subject to textile

agreements;

''(2) footwear not designated at the time of the effective date

of this chapter as eligible articles for the purpose of the

generalized system of preferences under title V of the Trade Act

of 1974;

''(3) tuna, prepared or preserved in any manner, in airtight

containers;

''(4) petroleum, or any product derived from petroleum,

provided for in headings 2709 and 2710 of the Harmonized Tariff

Schedule of the United States;

''(5) watches and watch parts (including cases, bracelets and

straps), of whatever type including, but not limited to,

mechanical, quartz digital or quartz analog, if such watches or

watch parts contain any material which is the product of any

country with respect to which HTS column 2 rates of duty apply;

or

''(6) articles to which reduced rates of duty apply under

subsection (h) of this section.''

1994 - Subsec. (d). Pub. L. 103-465 amended subsec. (d)

generally, substituting present provisions for provisions which

established price support program protection for certain

agricultural products from beneficiary countries.

1990 - Subsec. (a)(5). Pub. L. 101-382, Sec. 215(a), added par.

(5).

Subsec. (b)(2). Pub. L. 101-382, Sec. 212(b)(1), struck out '',

handbags, luggage, flat goods, work gloves, and leather wearing

apparel'' after ''footwear''.

Subsec. (b)(6). Pub. L. 101-382, Sec. 212(b)(2)-(4), added par.

(6).

Subsec. (h). Pub. L. 101-382, Sec. 212(a), added subsec. (h).

1988 - Subsec. (b)(4). Pub. L. 100-418, Sec. 1214(q)(2)(A)(i),

substituted ''headings 2709 and 2710 of the Harmonized Tariff

Schedule of the United States'' for ''part 10 of schedule 4 of the

TSUS''.

Subsec. (b)(5). Pub. L. 100-418, Sec. 1214(q)(2)(A)(ii),

substituted ''HTS'' for ''TSUS''.

Subsec. (c)(1)(A)(i). Pub. L. 100-418, Sec. 1214(q)(2)(B)(i),

substituted ''subheadings 1701.11.00, 1701.12.00, 1701.91.20,

1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the

Harmonized Tariff Schedule of the United States'' for ''items

155.20 and 155.30 of the TSUS''.

Subsec. (c)(1)(A)(ii). Pub. L. 100-418, Sec. 1214(q)(2)(B)(ii),

substituted ''chapters 2 and 16 of the Harmonized Tariff Schedule

of the United States'' for ''subpart B of part 2 of schedule 1 of

the TSUS''.

Subsec. (d). Pub. L. 100-418, Sec. 1214(q)(2)(C), substituted

''subheadings 1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00,

1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized Tariff

Schedule of the United States'' for ''items 155.20 and 155.30 of

the TSUS''.

Subsec. (e)(1). Pub. L. 100-418, Sec. 1401(b)(2)(A), substituted

''provided under chapter 1 of title II'' for ''proclaimed pursuant

to section 203''.

Subsec. (e)(2). Pub. L. 100-418, Sec. 1401(b)(2)(B), substituted

''section 202(f)'' for ''section 201(d)(1)''.

Subsec. (e)(3). Pub. L. 100-418, Sec. 1401(b)(2)(C), substituted

''section 203'' for ''(a) and (c) of section 203''.

Subsec. (e)(4). Pub. L. 100-418, Sec. 1401(b)(2)(D), substituted

''taken under section 203'' for ''made under subsections (a) and

(c) of section 203'', ''under section 202(b) of the Trade Act of

1974'' for ''under section 201(b) of the Trade Act of 1974'', and

''under such section'' for ''under section 201(b) of such Act''.

Subsec. (e)(5)(A). Pub. L. 100-418, Sec. 1401(b)(2)(E)(i),

substituted ''action taken under section 203'' for ''proclamation

issued pursuant to section 203''.

Subsec. (e)(5)(B). Pub. L. 100-418, Sec. 1401(b)(2)(E)(ii),

substituted ''to any such action'' for ''to import relief'', ''such

action'' for ''such import relief'', and ''section 203'' for

''subsections (h) and (i) of section 203''.

Subsec. (f)(4)(A). Pub. L. 100-418, Sec. 1401(b)(2)(F)(i),

substituted ''taking of action under section 203'' for

''proclamation of import relief pursuant to section 202(a)(1)''.

Subsec. (f)(4)(B). Pub. L. 100-418, Sec. 1401(b)(2)(F)(ii),

amended subpar. (B) generally. Prior to amendment, subpar. (B)

read as follows: ''on the day the President makes a determination

pursuant to section 203(b)(2) of such Act (19 U.S.C. 2253(b)(2))

not to impose import relief,''.

Subsec. (f)(5)(A). Pub. L. 100-418, Sec. 1214(q)(2)(D)(i),

amended subpar. (A) generally. Prior to amendment, subpar. (A)

read as follows: ''live plants provided for in subpart A of part 6

of schedule 1 of the TSUS;''.

Subsec. (f)(5)(B). Pub. L. 100-418, Sec. 1214(q)(2)(D)(ii),

substituted ''headings 0701 through 0709 (except subheading

0709.52.00) and heading 0714 of the HTS'' for ''items 135.10

through 138.46 of the TSUS''.

Subsec. (f)(5)(C). Pub. L. 100-418, Sec. 1214(q)(2)(D)(iv), as

amended by Pub. L. 100-647, Sec. 9001(a)(14), redesignated subpar.

(D) as (C) and substituted ''subheadings 0804.20 through 0810.90

(except citrons of subheading 0805.90.00, tamarinds and kiwi fruit

of subheading 0810.90.20, and cashew apples, mameyes colorados,

sapodillas, soursops and sweetsops of subheading 0810.90.40) of the

HTS; and'' for ''items 146.10, 146.20, 146.30, 146.50 through

146.62, 146.90, 146.91, 147.03 through 147.33, 147.50 through

149.21 and 149.50 of the TSUS;''.

Pub. L. 100-418, Sec. 1214(q)(2)(D)(iii), struck out subpar. (C)

''fresh mushrooms provided for in item 144.10 of the TSUS;''.

Subsec. (f)(5)(D). Pub. L. 100-418, Sec. 1214(q)(2)(D)(vi), as

amended by Pub. L. 100-647, Sec. 9001(a)(14)(C), redesignated

subpar. (F) as (D) and substituted ''subheading 2009.11.00,

2009.19.40, 2009.30.20, and 2009.30.60 of the HTS'' for ''item

165.35 of the TSUS''. Former subpar. (D) redesignated (C).

Subsec. (f)(5)(E). Pub. L. 100-418, Sec. 1214(q)(2)(D)(v), struck

out subpar. (E) ''fresh cut flowers provided for in items 192.17,

192.18, and 192.21 of the TSUS; and''.

Subsec. (f)(5)(F). Pub. L. 100-418, Sec. 1214(q)(2)(D)(vi), as

amended by Pub. L. 100-647, Sec. 9001(a)(14)(C), redesignated

subpar. (F) as (D).

1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 423(f)(2), inserted

''and subject to section 423 of the Tax Reform Act of 1986,''.

Subsec. (a)(3), (4). Pub. L. 99-514, Sec. 1890(1), redesignated

par. (3) relating to products of a beneficiary country imported

directly into Puerto Rico as (4), realigned the margins, and

substituted ''any beneficiary'' for ''such''.

Subsec. (f)(5)(B). Pub. L. 99-514, Sec. 1890(2), substituted

''138.46'' for ''138.42''.

1984 - Subsec. (a)(3). Pub. L. 98-573 added par. (3) relating to

products of a beneficiary country imported directly from such

country into Puerto Rico.

EFFECTIVE DATE OF 2002 AMENDMENTS

Pub. L. 107-210, div. C, title XXXI, Sec. 3107(b), Aug. 6, 2002,

116 Stat. 1038, provided that: ''The amendment made by subsection

(a)(3) (amending this section) shall take effect on October 1,

2002.''

Pub. L. 107-206, title III, Sec. 3001(c), Aug. 2, 2002, 116 Stat.

910, provided that: ''Subsection (b) (enacting provisions set out

as a note under section 3203 of this title) and the amendments made

by subsection (a) (amending this section) shall take effect -

''(1) 90 days after the date of the enactment of this Act (Aug.

2, 2002), or

''(2) September 1, 2002,

whichever occurs first.''

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective on the date of entry into

force of the WTO Agreement with respect to the United States (Jan.

1, 1995), except as otherwise provided, see section 451 of Pub. L.

103-465, set out as an Effective Date note under section 3601 of

this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 215(b) of Pub. L. 101-382 provided that:

''(1) The amendment made by subsection (a) (amending this

section) shall apply with respect to articles entered, or withdrawn

from warehouse for consumption, on or after October 1, 1990.

''(2) 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 appropriate customs officer after September 30,

1990, and before April 1, 1991, any entry, or withdrawal from

warehouse -

''(A) which was made after August 5, 1983, and before October

1, 1990, and with respect to which liquidation has not occurred

before October 1, 1990, and

''(B) with respect to which there would have been no duty, or a

lesser duty, if the amendment made by subsection (a) applied,

shall be liquidated as though such amendment applied to such entry

or withdrawal.''

EFFECTIVE DATE OF 1988 AMENDMENTS

Amendment by Pub. L. 100-647 applicable as if such amendment took

effect on Aug. 23, 1988, see section 9001(b) of Pub. L. 100-647,

set out as an Effective and Termination Dates of 1988 Amendments

note under section 58c of this title.

Amendment by section 1214(q)(2) of Pub. L. 100-418 effective Jan.

1, 1989, and applicable with respect to articles entered on or

after such date, see section 1217(b)(1) of Pub. L. 100-418, set out

as an Effective Date note under section 3001 of this title.

Amendment by section 1401(b)(2) of Pub. L. 100-418 effective Aug.

23, 1988, and applicable with respect to investigations initiated

under part 1 (Sec. 2251 et seq.) of subchapter II of chapter 12 of

this title on or after that date, see section 1401(c) of Pub. L.

100-418, set out as a note under section 2251 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 423(g) of Pub. L. 99-514 provided that:

''(1) The provisions of, and the amendments made by, this section

(other than subsection (e)) (amending this section and General

Headnote 3(a)(i) of the Tariff Schedules of the United States

formerly set out under section 1202 of this title and enacting

provisions set out as a note below) shall apply to articles entered

-

''(A) after December 31, 1986, and

''(B) before the expiration of the effective period of item

901.50 of the Appendix to the Tariff Schedules of the United

States (not classified to the Code).

''(2) The provisions of subsection (e) (set out as a note below)

shall take effect on the date of the enactment of this Act (Oct.

22, 1986).''

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-573 effective on 15th day after Oct. 30,

1984, see section 214(a), (b) of Pub. L. 98-573, set out as a note

under section 1304 of this title.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(c)(4) of this section relating to submitting a written report to

Congress by March 15 following the close of each biennium, see

section 3003 of Pub. L. 104-66, as amended, set out as a note under

section 1113 of Title 31, Money and Finance, and page 25 of House

Document No. 103-7.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the United States Customs Service of the Department of the

Treasury, including functions of the Secretary of the Treasury

relating thereto, to the Secretary of Homeland Security, and for

treatment of related references, see sections 203(1), 551(d),

552(d), and 557 of Title 6, Domestic Security, and the Department

of Homeland Security Reorganization Plan of November 25, 2002, as

modified, set out as a note under section 542 of Title 6.

-MISC5-

ETHYL ALCOHOL AND MIXTURES THEREOF FOR FUEL USE

Section 423(a)-(c), (e) of Pub. L. 99-514, as amended by Pub. L.

100-418, title I, Sec. 1910(a), Aug. 23, 1988, 102 Stat. 1319; Pub.

L. 101-221, Sec. 7(a), Dec. 12, 1989, 103 Stat. 1890, provided

that:

''(a) In General. - Except as provided in subsection (b), no

ethyl alcohol or a mixture thereof may be considered -

''(1) for purposes of general headnote 3(a) of the Tariff

Schedules of the United States (formerly set out under section

1202 of this title), to be -

''(A) the growth or product of an insular possession of the

United States,

''(B) manufactured or produced in an insular possession from

materials which are the growth, product, or manufacture of any

such possession, or

''(C) otherwise eligible for exemption from duty under such

headnote as the growth or product of an insular possession; or

''(2) for purposes of section 213 of the Caribbean Basin

Economic Recovery Act (19 U.S.C. 2703), to be -

''(A) an article that is wholly the growth, product, or

manufacture of a beneficiary country,

''(B) a new or different article of commerce which has been

grown, produced, or manufactured in a beneficiary country,

''(C) a material produced in a beneficiary country, or

''(D) otherwise eligible for duty-free treatment under such

Act (19 U.S.C. 2701 et seq.) as the growth, product, or

manufacture of a beneficiary country;

unless the ethyl alcohol or mixture thereof is an indigenous

product of that insular possession or beneficiary country.

''(b) Exception. -

''(1) Subject to the limitation in paragraph (2), subsection

(a) shall not apply to ethyl alcohol that is imported into the

United States during calendar years 1987, 1988, and 1989 and

produced in -

''(A) an azeotropic distillation facility located in a

beneficiary country, if that facility was established before,

and in operation on, July 1, 1987,

''(B) an azeotropic distillation facility -

''(i) at least 50 percent of the total value of the

equipment and components of which were -

''(I) produced in the United States, and

''(II) owned by a corporation at least 50 percent of the total

value of the outstanding shares of stock of which were

owned by a United States person (or persons) on or before

January 1, 1986, and

''(ii) substantially all of the equipment and components of

which were, on or before January 1, 1986 -

''(I) located in the United States under the possession or control

of such corporation,

''(II) ready for shipment to, and installation in, a beneficiary

country or an insular possession of the United States, and

''(iii) which -

''(I) has on the date of enactment of this Act (Oct. 22, 1986), or

''(II) will have at the time such facility is placed in service

(based on estimates made before the date of enactment of

this Act),

a stated capacity to produce not more than 42,000,000 gallons

of such product per year, or

''(C) a distillation facility operated by a corporation

which, before the date of enactment of the Omnibus Trade Act of

1987 (probably means the Omnibus Trade and Competitiveness Act

of 1988, Pub. L. 100-418, which was approved Aug. 23, 1988) -

''(i) has completed engineering and design of a full-scale

fermentation facility in the United States Virgin Islands,

and

''(ii) has obtained authorization from authorities of the

United States Virgin Islands to operate a full-scale

fermentation facility.

''(2) The exception provided under paragraph (1) shall cease to

apply during each of calendar years 1987, 1988, and 1989 to ethyl

alcohol produced in a facility described in subparagraph (A),

(B), or (C) of paragraph (1) after 20,000,000 gallons of ethyl

alcohol produced in that facility are entered into the United

States during that year.

''(c) Definitions. - For purposes of this section (amending this

section and General Headnote 3(a)(i) of the Tariff Schedules of the

United States formerly set out under section 1202 of this title and

enacting provisions set out as notes under this section) -

''(1) The term 'ethyl alcohol or a mixture thereof' means

(except for purposes of subsection (e)) ethyl alcohol or any

mixture thereof described in item 901.50 of the Appendix to the

Tariff Schedules of the United States (not classified to the

Code).

''(2) Ethyl alcohol or a mixture thereof that is produced by a

process of full fermentation in an insular possession or

beneficiary country shall be treated as being an indigenous

product of that possession or country.

''(3)(A) Ethyl alcohol and mixtures thereof that are only

dehydrated within an insular possession or beneficiary country

(hereinafter in this paragraph referred to as 'dehydrated alcohol

and mixtures') shall be treated as being indigenous products of

that possession or country only if the alcohol or mixture, when

entered, meets the applicable local feedstock requirement.

''(B) The local feedstock requirement with respect to any

calendar year is -

''(i) 0 percent with respect to the base quantity of

dehydrated alcohol and mixtures that is entered;

''(ii) 30 percent with respect to the 35,000,000 gallons of

dehydrated alcohol and mixtures next entered after the base

quantity; and

''(iii) 50 percent with respect to all dehydrated alcohol and

mixtures entered after the amount specified in clause (ii) is

entered.

''(C) For purposes of this paragraph:

''(i) The term 'base quantity' means, with respect to

dehydrated alcohol and mixtures entered during any calendar

year, the greater of -

''(I) 60,000,000 gallons; or

''(II) an amount (expressed in gallons) equal to 7 percent

of the United States domestic market for ethyl alcohol, as

determined by the United States International Trade

Commission, during the 12-month period ending on the

preceding September 30;

that is first entered during that calendar year.

''(ii) The term 'local feedstock' means hydrous ethyl alcohol

which is wholly produced or manufactured in any insular

possession or beneficiary country.

''(iii) The term 'local feedstock requirement' means the

minimum percent, by volume, of local feedstock that must be

included in dehydrated alcohol and mixtures.

''(4) The term 'beneficiary country' has the meaning given to

such term under section 212 of the Caribbean Basin Economic

Recovery Act (19 U.S.C. 2702).

''(5) The term 'United States person' has the meaning given to

such term by section 7701(a)(3) of the Internal Revenue Code of

1986 (26 U.S.C. 7701(a)(3)).

''(6) The term 'entered' means entered, or withdrawn from

warehouse, for consumption in the customs territory of the United

States.

''(e) Drawbacks. -

''(1) For purposes of subsections (b) and (j)(2) of section 313

of the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section

1888(2) of this Act, any ethyl alcohol (provided for in item

427.88 of the Tariff Schedules of the United States (not

classified to the Code)) or mixture containing such ethyl alcohol

(provided for in part 1, 2, or 10 of schedule 4 of such

Schedules) which is subject to the additional duty imposed by

item 901.50 of the Appendix to such Schedules may be treated as

being fungible with, or of being of the same kind and quality as,

any other imported ethyl alcohol (provided for in item 427.88 of

such Schedules) or mixture containing such ethyl alcohol

(provided for in part 1, 2, or 10 of schedule 4 of such

Schedules) only if such other imported ethyl alcohol or mixture

thereof is also subject to such additional duty.

''(2) Paragraph (1) shall not apply with respect to ethyl

alcohol (provided for in item 427.88 of the Tariff Schedules of

the United States) or mixture containing such ethly (ethyl)

alcohol (provided for in part 1, 2, or 10 of schedule 4 of such

Schedules) that is exempt from the additional duty imposed by

item 901.50 of the Appendix to such Schedules by reason of -

''(A) subsection (b), or

''(B) any agreement entered into under section 102(b) of the

Trade Act of 1974 (19 U.S.C. 2112(b)).''

(Section 7(b) of Pub. L. 101-221, as amended by Pub. L. 101-382,

title II, Sec. 225, Aug. 20, 1990, 104 Stat. 660, provided that:

''The amendments made by subsection (a) (amending section 423 of

Pub. L. 99-514, set out above) shall apply with respect to calendar

years after 1989.'')

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title

XVIII (Sec. 1801-1899A) of Pub. L. 99-514 require an amendment to

any plan, such plan amendment shall not be required to be made

before the first plan year beginning on or after Jan. 1, 1989, see

section 1140 of Pub. L. 99-514, as amended, set out as a note under

section 401 of Title 26, Internal Revenue Code.

DUTY-FREE TREATMENT OF IMPORTED RUM; COMPENSATION MEASURES;

PRESIDENTIAL AUTHORITY; REPORT TO CONGRESS

Section 214(c) of Pub. L. 98-67, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''If the sum

of the amounts of taxes covered into the treasuries of Puerto Rico

or the United States Virgin Islands pursuant to section 7652(c) of

the Internal Revenue Code of 1986 (26 U.S.C. 7652(c)) is reduced

below the amount that would have been covered over if the imported

rum had been produced in Puerto Rico or the United States Virgin

Islands, then the President shall consider compensation measures

and, in this regard, may withdraw the duty-free treatment on rum

provided by this title (this chapter). The President shall submit

a report to the Congress on the measures he takes.''

-EXEC-

PROC. NO. 7351. TO IMPLEMENT THE UNITED STATES-CARIBBEAN BASIN

TRADE PARTNERSHIP ACT

Proc. No. 7351, Oct. 2, 2000, 65 F.R. 59329, provided in pars.

(3) and (5) that the United States Trade Representative (USTR) is

authorized to determine whether each designated beneficiary country

has satisfied the requirements of subsec. (b)(4)(A)(ii) of this

section relating to the implementation of procedures and

requirements similar in all material respects to the relevant

procedures and requirements under chapter 5 of the North American

Free Trade Agreement and to exercise the authority provided to the

President under section 2483 of this title to embody modifications

and technical or conforming changes in the Harmonized Tariff

Schedule of the United States (HTS) and is directed to set forth

any such determination in a notice to be published in the Federal

Register, and that such notice would modify general note 17 of the

HTS by listing the countries that satisfy the requirements of

subsec. (b)(4)(A)(ii) of this section, effective Oct. 2, 2000,

except that the modifications to the HTS made by the Annex to the

proclamation, as further modified by any notice to be published in

the Federal Register, would be effective on the date announced by

the USTR in such notice.

EX. ORD. NO. 13191. IMPLEMENTATION OF THE AFRICAN GROWTH AND

OPPORTUNITY ACT AND THE UNITED STATES-CARIBBEAN BASIN TRADE

PARTNERSHIP ACT

Ex. Ord. No. 13191, Jan. 17, 2001, 66 F.R. 7271, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, including the African

Growth and Opportunity Act (Title I of Public Law 106-200) (19

U.S.C. 3701 et seq.) (AGOA), the United States-Caribbean Basin

Trade Partnership Act (Title II of Public Law 106-200) (see Short

Title of 2000 Amendment note set out under section 2701 of this

title) (CBTPA), the Caribbean Basin Economic Recovery Act (19

U.S.C. 2701 et seq.), and section 301 of title 3, United States

Code, and in order to expand international trade and enhance our

economic partnership with sub-Saharan Africa and the Caribbean

Basin, promote investment and economic development and reduce

poverty in those regions, and create new economic opportunities for

American workers and businesses, it is hereby ordered as follows:

PART I - IMPLEMENTATION OF THE AGOA

Section 1. Apparel Articles Assembled from Fabrics or Yarn Not

Available in Commercial Quantities. The Committee for the

Implementation of Textile Agreements (the ''Committee'') is

authorized to exercise the authority vested in the President under

section 112(b)(5)(B)(i) of the AGOA (19 U.S.C. 3721(b)(5)(B)(i)) to

determine whether yarns or fabrics cannot be supplied by the

domestic industry in commercial quantities in a timely manner. The

Committee shall establish procedures to ensure appropriate public

participation in any such determination. The Committee and the

United States Trade Representative (USTR) are jointly authorized to

exercise the authority vested in the President under sections

112(b)(5)(B)(ii), (iii), and (v) of the AGOA (19 U.S.C.

3721(b)(5)(B)(ii), (iii), and (v)) to obtain advice from the

appropriate advisory committee, to submit a report to the

appropriate Congressional committees, and to consult with those

Congressional committees. The USTR is authorized to exercise the

authority vested in the President under section 112(b)(5)(B)(ii) of

the AGOA to obtain advice from the U.S. International Trade

Commission (USITC).

Sec. 2. Handloomed, Handmade, and Folklore Articles. The

Committee, after consultation with the Commissioner, United States

Customs Service (Commissioner), is authorized to exercise the

authority vested in the President under section 112(b)(6) of the

AGOA (19 U.S.C. 3721(b)(6)) to consult with beneficiary sub-Saharan

African countries and to determine which, if any, particular

textile and apparel goods shall be treated as being handloomed,

handmade, or folklore articles. The Commissioner shall take such

actions to carry out any such determination as directed by the

Committee.

Sec. 3. Certain Interlinings. The Committee is authorized to

exercise the authority vested in the President under section

112(d)(1)(B)(iii) of the AGOA (19 U.S.C. 3721(d)(1)(B)(iii)) to

determine whether U.S. manufacturers are producing interlinings in

the United States in commercial quantities. The Committee shall

establish procedures to ensure appropriate public participation in

any such determination. The determination or determinations of the

Committee under this section shall be set forth in a notice or

notices that the Committee shall cause to be published in the

Federal Register. The Commissioner shall take such actions to carry

out any such determination as directed by the Committee.

Sec. 4. Penalties for Transshipments. The Committee, after

consultation with the Commissioner, is authorized to exercise the

authority vested in the President under section 113(b)(3) of the

AGOA (19 U.S.C. 3722(b)(3)) to determine, based on sufficient

evidence, whether an exporter has engaged in transshipment and to

deny for a period of 5 years all benefits under section 112 of the

AGOA (19 U.S.C. 3721) to any such exporter, any successor of such

exporter, and any other entity owned or operated by the principal

of such exporter. The determination or determinations of the

Committee under this section shall be set forth in a notice or

notices that the Committee shall cause to be published in the

Federal Register. The Commissioner shall take such actions to carry

out any such determination as directed by the Committee.

Sec. 5. Effective Visa Systems. Pursuant to sections 112(a) and

113(a)(1) of the AGOA (19 U.S.C. 3721(a) and 3722(a)(1)), the USTR

is authorized to direct the Commissioner to take such actions as

may be necessary to ensure that textile and apparel articles

described in section 112(b) of the AGOA (19 U.S.C. 3721(b)) that

are entered, or withdrawn from warehouse, for consumption are

accompanied by an appropriate export visa, if the preferential

treatment described in section 112(a) of the AGOA is claimed with

respect to such articles.

PART II - IMPLEMENTATION OF THE CBTPA

Sec. 6. Apparel Articles Assembled from Fabrics or Yarn Not

Available in Commercial Quantities. The Committee is authorized to

exercise the authority vested in the President under section

213(b)(2)(A)(v)(II)(aa) of the CBERA (19 U.S.C.

2703(b)(2)(A)(v)(II)(aa)), as added by section 211(a) of the CBTPA,

to determine whether yarns or fabrics cannot be supplied by the

domestic industry in commercial quantities in a timely manner. The

Committee shall establish procedures to ensure appropriate public

participation in any such determination. The Committee and the

USTR are jointly authorized to exercise the authority vested in the

President under sections 213(b)(2)(A)(v)(II)(bb), (cc), and (ee) of

the CBERA (19 U.S.C. 2703(b)(2)(A)(v)(II)(bb), (cc), and (ee)), as

added by section 211(a) of the CBTPA, to obtain advice from the

appropriate advisory committee, to submit a report to the

appropriate Congressional committees, and to consult with those

Congressional committees. The USTR is authorized to exercise the

authority vested in the President under section

213(b)(2)(A)(v)(II)(bb) of the CBERA to obtain advice from the

USITC.

Sec. 7. Certain Interlinings. The Committee is authorized to

exercise the authority vested in the President under section

213(b)(2)(A)(vii)(II)(cc) of the CBERA (19 U.S.C.

2703(b)(2)(A)(vii)(II)(cc)), as added by section 211(a) of the

CBTPA, to determine whether U.S. manufacturers are producing

interlinings in the United States in commercial quantities. The

Committee shall establish procedures to ensure appropriate public

participation in any such determination. The determination or

determinations of the Committee under this section shall be set

forth in a notice or notices that the Committee shall cause to be

published in the Federal Register. The Commissioner shall take such

actions to carry out any such determination as directed by the

Committee.

Sec. 8. Handloomed, Handmade, and Folklore Articles. The

Committee, after consultation with the Commissioner, is authorized

to exercise the authority vested in the President under section

213(b)(2)(C) of the CBERA (19 U.S.C. 2703(b)(2)(C)), as added by

section 211(a) of the CBTPA, to consult with representatives of

CBTPA beneficiary countries for the purpose of identifying

particular textile and apparel goods that are mutually agreed upon

as being handloomed, hand made, or folklore goods within the

meaning of that section. The Commissioner shall take such actions

to carry out any such determination as directed by the Committee.

Sec. 9. Penalties for Transshipments. The Committee, after

consultation with the Commissioner, is authorized to exercise the

authority vested in the President under section 213(b)(2)(D) of the

CBERA (19 U.S.C. 2703(b)(2)(D)), as added by section 211(a) of the

CBTPA, to determine, based on sufficient evidence, whether an

exporter has engaged in transshipment and, if transshipment has

occurred, to deny all benefits under the CBTPA to any such

exporter, and any successor of such exporter, for a period of 2

years; to request that any CBTPA beneficiary country through whose

territory transshipment has occurred take all necessary and

appropriate actions to prevent such transshipment; and to impose

the penalty provided in section 213(b)(2)(D)(ii) of the CBERA on a

CBTPA beneficiary country if the Committee determines that such

country is not taking such actions. The determination or

determinations of the Committee under this section shall be set

forth in a notice or notices that the Committee shall cause to be

published in the Federal Register. The Commissioner shall take such

actions to carry out any such determination as directed by the

Committee.

Sec. 10. Bilateral Emergency Tariff Actions. The Committee is

authorized to exercise the authority vested in the President under

section 213(b)(2)(E) of the CBERA (19 U.S.C. 2703(b)(2)(E)), as

added by section 211(a) of the CBTPA, to take bilateral emergency

tariff actions, if the Committee determines that the conditions

provided in section 213(b)(2)(E) of the CBERA are satisfied. The

Committee shall establish procedures to ensure appropriate public

participation in any such determination. The determination or

determinations of the Committee under this section shall be set

forth in a notice or notices that the Committee shall cause to be

published in the Federal Register. The Commissioner shall take such

actions to carry out any such bilateral emergency tariff action as

directed by the Committee.

PART III - GENERAL PROVISIONS

Sec. 11. Judicial Review. This order does not create any right or

benefit, substantive or procedural, enforceable at law or equity by

a party against the United States, its agencies, its officers, or

any person. William J. Clinton.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2702 of this title; title

7 sections 7236, 7937; title 26 section 7652.

-CITE-

19 USC Sec. 2704 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

-HEAD-

Sec. 2704. International Trade Commission reports on impact of

Caribbean Basin Economic Recovery Program

-STATUTE-

(a) Reporting requirement

(1) In general

The United States International Trade Commission (in this

section referred to as the ''Commission'') shall submit to

Congress and the President biennial reports regarding the

economic impact of this chapter on United States industries and

consumers and on the economy of the beneficiary countries.

(2) First report

The first report shall be submitted not later than September

30, 2001.

(3) Treatment of Puerto Rico, etc.

For purposes of this section, industries in the Commonwealth of

Puerto Rico and the insular possessions of the United States are

considered to be United States industries.

(b) Requisite areas of Commission assessment

(1) Each report required under subsection (a) of this section

shall include, but not be limited to, an assessment by the

Commission regarding -

(A) the actual effect, during the period covered by the report,

of this Act on the United States economy generally as well as on

those specific domestic industries which produce articles that

are like, or directly competitive with, articles being imported

into the United States from beneficiary countries; and

(B) the probable future effect which this Act will have on the

United States economy generally, as well as on such domestic

industries, before the provisions of this Act terminate.

(2) In preparing the assessments required under paragraph (1),

the Commission shall, to the extent practicable -

(A) analyze the production, trade and consumption of United

States products affected by this Act, taking into consideration

employment, profit levels, and use of productive facilities with

respect to the domestic industries concerned, and such other

economic factors in such industries as it considers relevant,

including prices, wages, sales, inventories, patterns of demand,

capital investment, obsolescence of equipment, and

diversification of production; and

(B) describe the nature and extent of any significant change in

employment, profit levels, and use of productive facilities, and

such other conditions as it deems relevant in the domestic

industries concerned, which it believes are attributable to this

Act.

(c) Time of submission of reports; public participation

(1) Each report required under subsection (a) of this section

shall be submitted to the Congress and to the President before the

close of the nine-month period beginning on the day after the last

day of the period covered by the report.

(2) The Commission shall provide opportunity for the submission

by the public, either orally or in writing, or both, of information

relating to matters that will be addressed in the reports.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 215, Aug. 5, 1983, 97 Stat. 393;

Pub. L. 106-200, title II, Sec. 211(d)(1), May 18, 2000, 114 Stat.

287.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (b), probably should be ''this

title'' meaning title II of Pub. L. 98-67, Aug. 5, 1983, 97 Stat.

384, which is classified principally to this chapter. For complete

classification of title II to the Code, see Short Title note set

out under section 2701 of this title and Tables.

-MISC2-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-200 inserted heading and amended

text generally. Prior to amendment, text read as follows: ''The

United States International Trade Commission (hereinafter in this

section referred to as the 'Commission') shall prepare, and submit

to the Congress and to the President, a report regarding the

economic impact of this Act on United States industries and

consumers during -

''(1) the twenty-four-month period beginning with August 5,

1983; and

''(2) each calendar year occurring thereafter until duty-free

treatment under this chapter is terminated under section 2706(b)

of this title.

For purposes of this section, industries in the Commonwealth of

Puerto Rico and the insular possessions of the United States shall

be considered to be United States industries.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3204 of this title.

-CITE-

19 USC Sec. 2705 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

-HEAD-

Sec. 2705. Impact study by Secretary of Labor

-STATUTE-

The Secretary of Labor, in consulation (FOOTNOTE 1) with other

appropriate Federal agencies, shall undertake a continuing review

and analysis of the impact which the implementation of the

provisions of this chapter have with respect to United States

labor; and shall make an annual written report to Congress on the

results of such review and analysis.

(FOOTNOTE 1) So in original. Probably should be

''consultation''.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 216, Aug. 5, 1983, 97 Stat. 394.)

-MISC1-

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in this

section relating to making an annual written report to Congress,

see section 3003 of Pub. L. 104-66, as amended, set out as a note

under section 1113 of Title 31, Money and Finance, and page 123 of

House Document No. 103-7.

-CITE-

19 USC Sec. 2706 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

-HEAD-

Sec. 2706. Effective date

-STATUTE-

(a) This chapter shall take effect on August 5, 1983.

(b) Repealed. Pub. L. 101-382, title II, Sec. 211, Aug. 20, 1990,

104 Stat. 655.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 218, Aug. 5, 1983, 97 Stat. 395;

Pub. L. 101-382, title II, Sec. 211, Aug. 20, 1990, 104 Stat. 655.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a), was in the original

''this subtitle'' meaning subtitle A (Sec. 211-218) of title II of

Pub. L. 98-67 which enacted this chapter, amended section 1202 of

this title, repealed section 2582 of this title, and enacted

provisions set out as notes under sections 1202, 1319, 2251, and

2703 of this title and section 1311 of Title 33, Navigation and

Navigable Waters. For complete classification of subtitle A to the

Code, see Tables.

-MISC2-

AMENDMENTS

1990 - Subsec. (b). Pub. L. 101-382 struck out subsec. (b) which

related to termination of duty-free treatment. Notwithstanding

directory language repealing ''section 218 of the Caribbean Basin

Economic Recovery Act (19 U.S.C. 2706(b))'', amendment was executed

by repealing subsec. (b) to reflect the probable intent of Congress

in view of catchline for section 211 of Pub. L. 101-382 which read

''Repeal of termination date on duty-free treatment under the

Act''.

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19 USC Sec. 2707 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 15 - CARIBBEAN BASIN ECONOMIC RECOVERY

-HEAD-

Sec. 2707. Center for the Study of Western Hemispheric Trade

-STATUTE-

(a) Establishment

The Commissioner of Customs, after consultation with appropriate

officials in the State of Texas, is authorized and directed to make

grants to an institution (or a consortium of such institutions) to

assist such institution in planning, establishing, and operating a

Center for the Study of Western Hemispheric Trade (hereafter in

this section referred to as the ''Center''). The Commissioner of

Customs shall make the first grant not later than December 1, 1994,

and the Center shall be established not later than February 1,

1995.

(b) Scope of Center

The Center shall be a year-round program operated by an

institution located in the State of Texas (or a consortium of such

institutions), the purpose of which is to promote and study trade

between and among Western Hemisphere countries. The Center shall

conduct activities designed to examine -

(1) the impact of the NAFTA on the economies in, and trade

within, the Western Hemisphere;

(2) the negotiation of any future free trade agreements,

including possible accessions to the NAFTA; and

(3) adjusting tariffs, reducing nontariff barriers, improving

relations among customs officials, and promoting economic

relations among countries in the Western Hemisphere.

(c) Consultation; selection criteria

The Commissioner of Customs shall consult with appropriate

officials of the State of Texas and private sector authorities with

respect to selecting, planning, and establishing the Center. In

selecting the appropriate institution, the Commissioner of Customs

shall give consideration to -

(1) the institution's ability to carry out the programs and

activities described in this section; and

(2) any resources the institution can provide the Center in

addition to Federal funds provided under this program.

(d) Programs and activities

The Center shall conduct the following activities:

(1) Provide forums for international discussion and debate for

representatives from countries in the Western Hemisphere

regarding issues which affect trade and other economic relations

within the hemisphere, including the impact of the NAFTA on

individual economies and the desirability and feasibility of

possible accessions to the NAFTA by such countries.

(2) Conduct studies and research projects on subjects which

affect Western Hemisphere trade, including tariffs, customs,

regional and national economics, business development and

finance, production and personnel management, manufacturing,

agriculture, engineering, transportation, immigration,

telecommunications, medicine, science, urban studies, border

demographics, social anthropology, and population.

(3) Publish materials, disseminate information, and conduct

seminars and conferences to support and educate representatives

from countries in the Western Hemisphere who seek to do business

with or invest in other Western Hemisphere countries.

(4) Provide grants, fellowships, endowed chairs, and financial

assistance to outstanding scholars and authorities from Western

Hemisphere countries.

(5) Provide grants, fellowships, and other financial assistance

to qualified graduate students, from Western Hemisphere

countries, to study at the Center.

(6) Implement academic exchange programs and other cooperative

research and instructional agreements with the complementary

Dante B. Fascell North-South Center at the University of Miami at

Coral Gables.

(e) Definitions

For purposes of this section -

(1) NAFTA

The term ''NAFTA'' means the North American Free Trade

Agreement.

(2) Western Hemisphere countries

The terms ''Western Hemisphere countries'', ''countries in the

Western Hemisphere'', and ''Western Hemisphere'' mean Canada, the

United States, Mexico, countries located in South America,

beneficiary countries (as defined by section 2702 of this title),

the Commonwealth of Puerto Rico, and the United States Virgin

Islands.

(f) Fees for seminars and publications

Notwithstanding any other provision of law, a grant made under

this section may provide that the Center may charge a reasonable

fee for attendance at seminars and conferences and for copies of

publications, studies, reports, and other documents the Center

publishes. The Center may waive such fees in any case in which it

determines imposing a fee would impose a financial hardship and the

purposes of the Center would be served by granting such a waiver.

(g) Duration of grant

The Commissioner of Customs is directed to make grants to any

institution or institutions selected as the Center for fiscal years

1994, 1995, 1996, and 1997.

(h) Report

The Commissioner of Customs shall, no later than July 1, 1994,

and annually thereafter for years for which grants are made, submit

a written report to the Committee on Finance of the Senate and the

Committee on Ways and Means of the House of Representatives. The

first report shall include -

(1) a statement identifying the institution or institutions

selected as the Center;

(2) the reasons for selecting the institution or institutions

as the Center; and

(3) the plan of such institution or institutions for operating

the Center.

Each subsequent report shall include information with respect to

the operations of the Center, the collaboration of the Center with,

and dissemination of information to, Government policymakers and

the business community with respect to the study of Western

Hemispheric trade by the Center, and the plan and efforts of the

Center to continue operations after grants under this section have

expired.

-SOURCE-

(Pub. L. 98-67, title II, Sec. 219, as added Pub. L. 103-182, title

V, Sec. 515(a), Dec. 8, 1993, 107 Stat. 2158; amended Pub. L.

104-295, Sec. 21(d), Oct. 11, 1996, 110 Stat. 3530; Pub. L. 106-29,

Sec. 2(a), May 21, 1999, 113 Stat. 54.)

-MISC1-

AMENDMENTS

1999 - Subsec. (d)(6). Pub. L. 106-29 substituted ''Dante B.

Fascell North-South Center'' for ''North/South Center''.

1996 - Subsec. (b)(1). Pub. L. 104-295, Sec. 21(d)(1),

substituted semicolon for comma at end.

Subsec. (h)(1), (2). Pub. L. 104-295, Sec. 21(d)(2), substituted

semicolon for comma after ''Center''.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the United States Customs Service of the Department of the

Treasury, including functions of the Secretary of the Treasury

relating thereto, to the Secretary of Homeland Security, and for

treatment of related references, see sections 203(1), 551(d),

552(d), and 557 of Title 6, Domestic Security, and the Department

of Homeland Security Reorganization Plan of November 25, 2002, as

modified, set out as a note under section 542 of Title 6.

-MISC5-

AUTHORIZATION OF APPROPRIATIONS

Section 515(b) of Pub. L. 103-182 provided that: ''There are

authorized to be appropriated $10,000,000 for fiscal year 1994, and

such sums as may be necessary in the 3 succeeding fiscal years to

carry out the purposes of section 219 of the Caribbean Basin

Economic Recovery Act (19 U.S.C. 2707) (as added by subsection

(a)).''

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