,,ii  #aacth ,,congress  #ast ,session  
,s4 #dca  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,february #bh1 #bjac
 ,mrs4 ,feinstein introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to authorize preferential   
treatment for certain imports from      
,nepal1 and for other purposes4  #a4    
,short title ,this ,act may be cited as 
the ,nepal ,trade ,preferences ,act4    
#b4 ,eligibility requirements  7a7 ,in  
general ,the ,president may authorize   
the provision of preferential treatment 
under this ,act to articles that are    
imported directly from ,nepal into the  
customs territory of the ,united ,states
 pursuant to section #c if the          
,president determines--  7#a7 that      
,nepal meets the requirements set forth 
in paragraphs 7#a71 7#b71 and 7#c7 of   
section #ajd7;a7 of the ,african ,growth
 and ,opportunity ,act 7#ai ,u4,s4,c4   
#cgjc7;a772 and  7#b7 after taking into 
account the factors set forth in        

paragraphs 7#a7 through 7#g7 of         
subsection 7c7 of section #ejb of the   
,trade ,act of #aigd 7#ai ,u4,s4,c4     
#bdfb71 that ,nepal meets the           
eligibility requirements of such section
 #ejb4  7b7 ,withdrawal1 suspension1 or 
limitation of preferential treatment2   
mandatory graduation ,the provisions of 
subsections 7d7 and 7e7 of section #ejb 
of the ,trade ,act of #aigd 7#ai        
,u4,s4,c4 #bdfb7 shall apply with       
respect to ,nepal to the same extent and
 in the same manner as such provisions  
apply with respect to beneficiary       
developing countries under title ,v of  
that ,act 7#ai ,u4,s4,c4 #bdfa et seq474
  #c4 ,eligible articles  7a7 ,certain  
manufactured and other articles  7#a7   
,in general ,an article described in    
paragraph 7#b7 may enter the customs    
territory of the ,united ,states free of
 duty4  7#b7 ,articles described  7,a7  
,in general ,an article is described in 
this paragraph if--  7i7 the article is 
the growth1 product1 or manufacture of  

,nepal2  7ii7 the article is imported   
directly from ,nepal into the customs   
territory of the ,united ,states2  7iii7
 the article is described in            
subparagraphs 7,b7 through 7,g7 of      
subsection 7b77#a7 of section #ejc of   
the ,trade ,act of #aigd 7#ai ,u4,s4,c4 
#bdfc72  7iv7 the ,president determines1
 after receiving the advice of the      
,united ,states ,international ,trade   
,commission in accordance with          
subsection 7e7 of that section1 that the
 article is not import-sensitive in the 
context of imports from ,nepal2 and  7v7
 subject to subparagraph 7,c71 the sum  
of the cost or value of the materials   
produced in1 and the direct costs of    
processing operations performed in1     
,nepal or the customs territory of the  
,united ,states is not less than #ce    
percent of the appraised value of the   
article at the time it is entered4  7,b7
 ,exclusions ,an article shall not be   
treated as the growth1 product1 or      
manufacture of ,nepal for purposes of   

subparagraph 7,a77i7 by virtue of having
 merely undergone--  7i7 simple         
combining or packaging operations2 or   
7ii7 mere dilution with water or mere   
dilution with another substance that    
does not materially alter the           
characteristics of the article4  7,c7   
,limitation on ,united ,states cost ,for
 purposes of subparagraph 7,a77v71 the  
cost or value of materials produced in1 
and the direct costs of processing      
operations performed in1 the customs    
territory of the ,united ,states and    
attributed to the #ce-percent           
requirement under that subparagraph may 
not exceed #ae percent of the appraised 
value of the article at the time it is  
entered4  7b7 ,textile and apparel      
articles  7#a7 ,in general ,a textile or
 apparel article described in paragraph 
7#b7 or 7#c7 may enter the customs      
territory of the ,united ,states free of
 duty4  7#b7 ,textile and apparel       
articles wholly assembled in ,nepal     
7,a7 ,in general ,a textile or apparel  

article is described in this paragraph  
if the textile or apparel article is--  
7i7 wholly assembled in ,nepal1 without 
regard to the country of origin of the  
yarn or fabric used to make the         
articles2 and  7ii7 imported directly   
from ,nepal into the customs territory  
of the ,united ,states4  7,b7           
,limitations  7i7 ,low volume of imports
 ,if1 during a calendar year1 imports of
 textile and apparel articles described 
in subparagraph 7,a7 from ,nepal are    
less than #a percent of the aggregate   
square meter equivalents of all textile 
and apparel articles imported into the  
customs territory of the ,united ,states
 during that calendar year1 such imports
 from ,nepal may be increased to an     
amount that is equal to not more than   
#a4e percent of the aggregate square    
meter equivalents of all textile and    
apparel articles imported into the      
customs territory of the ,united ,states
 during that calendar year for the      
succeeding calendar year4  7ii7 ,higher 

volume of imports ,if1 during a calendar
 year1 imports of textile and apparel   
articles described in subparagraph 7,a7 
from ,nepal are at least #a percent of  
the aggregate square meter equivalents  
of all textile and apparel articles     
imported into the customs territory of  
the ,united ,states during that calendar
 year1 such imports from ,nepal may be  
increased by an amount that is equal to 
not more than #a_/c of #a percent of the
 aggregate square meter equivalents of  
all textile and apparel articles        
imported into the customs territory of  
the ,united ,states during that calendar
 year for the succeeding calendar year4 
7iii7 ,aggregate country limit ,in no   
case may the aggregate quantity of      
textile and apparel articles described  
in subparagraph 7,a7 imported into the  
customs territory of the ,united ,states
 from ,nepal during a calendar year     
under this subsection exceed the        
applicable percentage set forth in      
paragraph 7#d77;,b7 for that calendar   

year4  7#c7 ,handloomed1 handmade1      
folklore articles and ethnic printed    
fabrics  7,a7 ,in general ,a textile or 
apparel article is described in this    
paragraph if the textile or apparel     
article is--  7i7 imported directly from
 ,nepal into the customs territory of   
the ,united ,states2  7ii7 on a list of 
textile and apparel articles determined 
by the ,president1 after consultation   
with the ,government of ,nepal1 to be   
handloomed1 handmade1 folklore articles 
or ethnic printed fabrics of ,nepal2 and
  7iii7 certified as a handloomed1      
handmade1 folklore article or an ethnic 
printed fabric of ,nepal by the         
competent authority of ,nepal4  7,b7    
,ethnic printed fabric ,for purposes of 
subparagraph 7,a71 an ethnic printed    
fabric of ,nepal is--  7i7 fabric       
containing a selvedge on both edges1    
having a width of less than #ej inches1 
and classifiable under subheading       
#ebjh4eb4cj or #ebjh4eb4dj of the       
,harmonized ,tariff ,schedule of the    

,united ,states2  7ii7 fabric of a type 
that contains designs1 symbols1 and     
other characteristics of ,nepal--  7,i7 
normally produced for and sold in       
indigenous markets in ,nepal2 and       
7,,ii7 normally sold in ,nepal by the   
piece as opposed to being tailored into 
garments before being sold in indigenous
 markets in ,nepal2  7iii7 printed1     
including waxed1 in ,nepal2 and  7iv7   
fabric formed in the ,united ,states    
from yarns formed in the ,united ,states
 or from fabric formed in ,nepal from   
yarns originating in either the ,united 
,states or ,nepal4  7#d7 ,limitations on
 benefits  7,a7 ,in general             
,preferential treatment under this      
subsection shall be extended in the     
#a-year period beginning ,january #a1   
#bjad1 and in each of the succeeding #aj
 #a-year periods1 to imports of textile 
and apparel articles from ,nepal under  
this subsection in an amount not to     
exceed the applicable percentage of the 
aggregate square meter equivalents of   

all textile and apparel articles        
imported into the customs territory of  
the ,united ,states in the most recent  
#ab-month period for which data are     
available4  7,b7 ,applicable percentage 
,for purposes of this paragraph1 the    
term applicable percentage means #a4e   
percent for the #a-year period beginning
 ,january #a1 #bjad1 increased in each  
of the #aj succeeding #a-year periods by
 equal increments1 so that for the      
period beginning ,january #a1 #bjbc1 the
 applicable percentage does not exceed  
#c4e percent4  7#e7 ,surge mechanism    
,the provisions of subparagraph 7,b7 of 
section #aab7;b77#c7 of the ,african    
,growth and ,opportunity ,act 7#ai      
,u4,s4,c4 #cgba7;b77#c77 shall apply to 
textile and apparel articles imported   
from ,nepal to which preferential       
treatment is extended under this        
subsection to the same extent and in the
 same manner that such provisions apply 
to textile and apparel articles         
described in such section #aab7;b77#c7  

imported from a beneficiary sub-,saharan
 ,african country4  7#f7 ,special       
eligibility rules2 protections against  
transshipment ,the provisions of        
subsection 7e7 of section #aab and      
section #aac of the ,african ,growth and
 ,opportunity ,act 7#ai ,u4,s4,c4 #cgba 
and #cgbb7 shall apply to textile and   
apparel articles imported from ,nepal to
 which preferential treatment is        
extended under this subsection to the   
same extent and in the same manner that 
such provisions apply to textile and    
apparel articles imported from          
beneficiary sub-,saharan countries to   
which preferential treatment is extended
 under such section #aab4  #d4          
,reporting requirement ,the ,president  
shall monitor1 review1 and report to    
,congress1 not later than one year after
 the date of the enactment of this ,act1
 and annually thereafter1 on the        
implementation of this ,act and on the  
trade and investment policy of the      
,united ,states with respect to ,nepal4 

#e4 ,termination of preferential        
treatment ,no preferential treatment    
extended under this ,act shall remain in
 effect after ,december #ca1 #bjbc4  #f4
 ,effective date ,the provisions of this
 ,act shall take effect on ,january #a1 
#bjad4