,,ii #aacth ,,congress #ast ,session ,s4 #dcb ,,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 extend certain trade preferences to certain least-developed countries in ,asia and the ,south ,pacific1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,asia-,south ,pacific ,trade ,preferences ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,it is in the mutual interest of the ,united ,states and least-developed countries to promote stable and sustainable economic growth and development4 7#b7 ,trade and investment are powerful economic tools and can be used to reduce poverty and raise the standard of living in a country4 7#c7 ,a country that is open to trade may increase its economic growth4 7#d7 ,trade and investment often lead to employment opportunities and often help alleviate poverty4 7#e7 ,least-developed countries have a particular challenge in meeting the economic requirements of and competitiveness necessary for globalization and international markets4 7#f7 ,the ,united ,states has recognized the benefits that international trade provides to least-developed countries by enacting the ,generalized ,system of ,preferences under title ,v of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfa et seq47 and trade benefits for developing countries in the ,caribbean1 ,andean1 and sub-,saharan ,african regions of the world4 7#g7 ,enhanced trade with least-developed ,muslim countries1 including ,afghanistan and ,bangladesh1 is consistent with other ,united ,states objectives of encouraging a strong private sector and individual economic empowerment in those countries4 7#h7 ,offering least-developed countries enhanced trade preferences will encourage both higher levels of trade and direct investment in support of positive economic and political developments throughout the world4 7#i7 ,encouraging the reciprocal reduction of trade and investment barriers will enhance the benefits of trade and investment as well as enhance commercial and political ties between the ,united ,states and the countries designated for benefits under this ,act4 7#aj7 ,economic opportunity and engagement in the global trading system together with support for democratic institutions and a respect for human rights are mutually reinforcing objectives and key elements of a policy to confront and defeat global terrorism4 #c4 ,definitions ,in this ,act3 7#a7 ,asia or ,south ,pacific country ,the term ,asia or ,south ,pacific country means-- 7,a7 ,afghanistan2 7,b7 ,bangladesh2 7,c7 ,bhutan2 7,d7 ,cambodia2 7,e7 ,kiribati2 7,f7 ,lao ,people's ,democratic ,republic2 7,g7 ,maldives2 7,h7 ,nepal2 7,i7 ,samoa2 7,j7 ,solomon ,islands2 7,k7 ,timor-,leste 7,east ,timor72 7,l7 ,tuvalu2 7,m7 ,vanuatu2 or 7,n7 a successor political entity of a country specified in subparagraphs 7,a7 through 7,m74 7#b7 ,beneficiary ,asia or ,south ,pacific country ,the term beneficiary ,asia or ,south ,pacific country means an ,asia or ,south ,pacific country that the ,president has designated as eligible for preferential treatment under this ,act4 7#c7 ,former beneficiary ,asia or ,south ,pacific country ,the term former beneficiary ,asia or ,south ,pacific country means a country that1 after being designated as a beneficiary ,asia or ,south ,pacific country under this ,act1 ceased to be designated as such a country by reason of its entering into a free trade agreement with the ,united ,states4 #d4 ,authority to designate 7a7 ,in general ,the ,president is authorized to designate an ,asia or ,south ,pacific country as a beneficiary ,asia or ,south ,pacific country eligible for preferential treatment under this ,act if the ,president determines-- 7#a7 that the country 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 the country meets the eligibility requirements of such section #ejb4 7b7 ,withdrawal1 suspension1 or limitation of preferential treatment2 mandatory graduation of countries ,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 beneficiary ,asia or ,south ,pacific countries 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 #e4 ,eligible articles 7a7 ,certain manufactured or other articles 7#a7 ,duty-free treatment ,an article described in paragraph 7#b7 may enter the customs territory of the ,united ,states free of duty4 7#b7 ,articles described ,an article is described in this paragraph if-- 7,a7 the article is the growth1 product1 or manufacture of a beneficiary ,asia or ,south ,pacific country2 7,b7 the article is imported directly from that country into the customs territory of the ,united ,states2 7,c7 the article is described in subparagraphs 7,b7 through 7,g7 of section #ejc7;b77#a7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;b77#a772 7,d7 the ,president determines1 after receiving the advice of the ,international ,trade ,commission in accordance with section #ejc7;e7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;e771 that the article is not import-sensitive in the context of imports from beneficiary ,asia or ,south ,pacific countries2 and 7,e7 the article meets the requirements of paragraph 7#c74 7#c7 ,rules of origin 7,a7 ,in general ,subject to subparagraph 7,b71 an article imported from a beneficiary ,asia or ,south ,pacific country meets the requirements of this paragraph if not less than #ce percent of the appraised value of the article at the time it is entered is attributable to-- 7i7 the cost or value of the materials produced in one or more beneficiary ,asia or ,south ,pacific countries1 one or more former beneficiary ,asia or ,south ,pacific countries1 the customs territory of the ,united ,states1 or any combination thereof2 and 7ii7 the direct costs of processing operations performed in one or more beneficiary ,asia or ,south ,pacific countries1 one or more former beneficiary ,asia or ,south ,pacific countries1 or any combination thereof4 7,b7 ,limitation on ,united ,states cost or value of materials ,for purposes of subparagraph 7,a71 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 7#d7 ,exclusions ,an article shall not be treated as the growth1 product1 or manufacture of a beneficiary ,asia or ,south ,pacific country for purposes of paragraph 7#b77;,a7 by virtue of having merely undergone-- 7,a7 simple combining or packaging operations2 or 7,b7 mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article4 7b7 ,textile and apparel articles 7#a7 ,duty-free treatment ,a textile or apparel article may enter the customs territory of the ,united ,states free of duty if the article-- 7,a7 is imported directly into the customs territory of the ,united ,states from a beneficiary ,asia or ,south ,pacific country2 and 7,b7 is described in-- 7i7 paragraph 7#a71 7#b71 7#d71 7#e71 or 7#g7 of section #aab7;b7 of the ,african ,growth and ,opportunity ,act 7#ai ,u4,s4,c4 #cgba7;b771 as applied and administered pursuant to paragraph 7#b72 or 7ii7 paragraph 7#c7 or 7#d74 7#b7 ,application and administration of section #aab of the ,african ,growth and ,opportunity ,act ,section #aab of the ,african ,growth and ,opportunity ,act 7#ai ,u4,s4,c4 #cgba7 shall be applied and administered for purposes of this subsection-- 7,a7 in subsection 7a71 by substituting a beneficiary ,asia or ,south ,pacific country 7as defined in section #c of the ,asia-,south ,pacific ,trade ,preferences ,act7 for a beneficiary sub-,saharan ,african country described in section #ejf;,a7c7 of the ,trade ,act of #aigd2 and 7,b7 in paragraphs 7#a71 7#b71 7#d71 7#e71 and 7#g7 of subsection 7b71 by substituting beneficiary ,asia or ,south ,pacific country and beneficiary ,asia or ,south ,pacific countries for beneficiary sub-,saharan ,african country and beneficiary sub-,saharan ,african countries1 respectively1 each place such terms appear in the text and the paragraph headings4 7#c7 ,textile and apparel articles assembled from regional and other fabric 7,a7 ,in general ,a textile or apparel article described in this paragraph is a textile or apparel article wholly assembled in one or more beneficiary ,asia or ,south ,pacific countries or former beneficiary ,asia or ,south ,pacific countries1 or both1 from-- 7i7 fabric wholly formed in one or more beneficiary ,asia or ,south ,pacific countries or former beneficiary ,asia or ,south ,pacific countries1 or both1 from yarn originating either in the customs territory of the ,united ,states or one or more beneficiary ,asia or ,south ,pacific countries or former beneficiary ,asia or ,south ,pacific countries1 or both2 or 7ii7 from fabric not formed from yarn1 if such fabric is classifiable under heading #efjb or #efjc of the ,harmonized ,tariff ,schedule of the ,united ,states and wholly formed and cut in the customs territory of the ,united ,states1 in one or more beneficiary ,asia or ,south ,pacific countries or former beneficiary ,asia or ,south ,pacific countries1 or any combination thereof4 7,b7 ,exception ,textile and apparel articles described in this paragraph do not include textile and apparel articles that are made exclusively from any of the fabrics1 fabric components formed1 or components knit-to-shape described in paragraph 7#a7 or 7#b7 of section #aab7;b7 of the ,african ,growth and ,opportunity ,act 7#ai ,u4,s4,c4 #cgba7;b771 as applied and administered pursuant to paragraph 7#b74 7#d7 ,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 a textile or apparel article of a beneficiary ,asia or ,south ,pacific country or countries2 7ii7 certified as handloomed1 handmade1 folklore articles or ethnic printed fabric by the competent authority of such beneficiary country or countries2 and 7iii7 on a list of textile or apparel articles determined by the ,president1 after consultation with the government of the beneficiary ,asia or ,south ,pacific country or countries concerned1 to be treated as being handloomed1 handmade1 or folklore articles or ethnic printed fabrics of such beneficiary ,asia or ,south ,pacific country or countries4 7,b7 ,additional requirements for ethnic printed fabric ,for purposes of subparagraph 7,a71 an ethnic printed fabric of a beneficiary ,asia or ,south ,pacific country or countries 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 ,asian or ,south ,pacific prints-- 7,i7 normally produced for and sold in indigenous ,asian or ,south ,pacific markets2 and 7,,ii7 normally sold in ,asia or ,south ,pacific countries by the piece as opposed to being tailored into garments before being sold in indigenous ,asian or ,south ,pacific markets2 7iii7 fabric printed1 including waxed1 in one or more beneficiary ,asia or ,south ,pacific countries2 and 7iv7 fabric formed in the customs territory of the ,united ,states1 from yarn formed in the customs territory of the ,united ,states1 or from fabric formed in one or more beneficiary ,asia or ,south ,pacific countries from yarn originating in either the customs territory of the ,united ,states or one or more beneficiary ,asia or ,south ,pacific countries4 7#e7 ,special rule 7,a7 ,in general ,preferential treatment under this subsection shall be extended through ,december #ca1 #bjai1 for textile and apparel articles that are wholly assembled in one or more beneficiary ,asia or ,south ,pacific countries or former beneficiary ,asia or ,south ,pacific countries1 or both1 regardless of the country of origin of the yarn or fabric used to make such articles4 7,b7 ,country limitations 7i7 ,small suppliers ,if1 during a calendar year1 imports of textile and apparel articles described in subparagraph 7,a7 from a beneficiary ,asia or ,south ,pacific country 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 that country 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 ,other suppliers ,if1 during a calendar year1 imports of textile and apparel articles described in subparagraph 7,a7 from a beneficiary ,asia or ,south ,pacific country are not 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 that country 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 during a calendar year under this subsection exceed the applicable percentage set forth in paragraph 7#h77;,b7 for that calendar year4 7#f7 ,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 a beneficiary ,asia or ,south ,pacific country 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#g7 ,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 a beneficiary ,asia or ,south ,pacific country 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 7#h7 ,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 #aj succeeding #a-year periods1 to imports of textile and apparel articles described in this subsection in an amount not to exceed the applicable percentage1 as defined in subparagraph 7,b71 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 #aa 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 #bjbd1 the applicable percentage does not exceed #ad percent4 7c7 ,technical amendment ,section #fjjb7;a77#b77;,b7 of the ,africa ,investment ,incentive ,act of #bjjf 7,public ,law #aji-dcb2 #abj ,stat4 #caij7 is amended by inserting in paragraph 7#c71 before by striking4 #f4 ,reporting requirement ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter1 the ,president shall report to ,congress on the implementation of this ,act and on the trade and investment policy of the ,united ,states with respect to the ,asia or ,south ,pacific countries4 #g4 ,termination of preferential treatment ,no preferential treatment extended to a beneficiary ,asia or ,south ,pacific country under this ,act shall remain in effect after ,december #ca1 #bjbd4 #h4 ,effective date ,the provisions of this ,act shall take effect on ,january #a1 #bjad4