,i #aafth ,,congress #ast ,session ,h4 ,r4 #bbai ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjai,mr4 ,yoho 7for himself1 ,ms4 ,titus1 ,mr4 ,cohen1 ,mr4 ,fitzpatrick1 ,mr4 ,young1 ,mr4 ,norman1 ,mr4 ,price of ,north ,carolina1 and ,mr4 ,mc,govern7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to promote ,united ,states-,mongolia trade by authorizing duty-free treatment for certain imports from ,mongolia1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,mongolia ,third ,neighbor ,trade ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,in #aiib1 ,mongolia adopted a constitution establishing a parliamentary democracy1 becoming the only country in ,asia to transition from communism to democracy4 ,mongolia shares land borders with only the ,russian ,federation and the ,people's ,republic of ,china4 ,with a large land area and a population of only #c1jjj1jjj1 ,mongolia is the world's most sparsely populated country1 and ,mongolia's sovereignty is thought to be at risk from the overwhelming influence of its much larger and more populous neighbors4 7#b7 ,mongolia has shown its commitment to a third neighbor relationship with the ,united ,states by sending troops to support ,united ,states combat operations in ,iraq and ,afghanistan1 and has a strong record of troop contributions to international peacekeeping missions4 ,mongolia's success as a democracy1 strategic location1 sovereignty1 territorial integrity1 and ability to pursue an independent foreign policy are highly relevant to the national security of the ,united ,states4 7#c7 ,mongolia describes the ,united ,states as its most important third neighbor1 but ,united ,states-,mongolia trade is substantially lower than many other bilateral trading relationships1 and trade has declined in recent years4 ,total trade between the countries in #bjab measured #gjg1jjj1jjj1 but in #bjag the ,united ,states exported only #hb1bjj1jjj in goods to ,mongolia and imported only #i1djj1jjj in goods from ,mongolia4 7#d7 ,after mining1 agriculture is the second most important sector contributing to the ,mongolian economy4 ,the livestock sector accounts for #hg percent of agricultural production in ,mongolia and employs around one-third of the working population4 7#e7 ,since the #aidjs1 the annual mean air temperature in ,mongolia has risen at three times the global rate4 ,average precipitation is declining and extreme weather disasters are more frequent1 posing acute challenges for livestock herding in the country4 ,in #bjag1 an estimated #gjj1jjj of the country's livestock population were killed due to the post-drought extreme winter phenomenon known as dzud4 ,this phenomenon is unique to ,mongolia and has increased in frequency and severity in recent years1 causing a rise in livestock mortality and diminishing livelihoods for herders which has led to widespread rural poverty and a contraction in the national economy4 7#f7 ,mongolia would greatly benefit from preferential treatment for ,united ,states imports of certain ,mongolian products to help address some of the economic impacts of the dzuds4 7#g7 ,the cashmere trade is particularly important to ,mongolia's economy1 but while ,mongolia produces over one-third of the world's raw cashmere1 it produces few finished cashmere products4 ,most ,mongolian raw cashmere is exported to ,china1 and the ,united ,states buys nearly all of its cashmere products from ,china4 ,preferential treatment for ,united ,states imports of certain ,mongolian products1 including cashmere products1 would benefit the ,united ,states by facilitating increased trade with ,mongolia4 7#h7 ,the development of ,mongolia's garment industry would also promote women's employment and empowerment4 ,women have historically participated in ,mongolia's garment industry at high rates1 and the garment industry has historically provided safe and stable employment for women in ,mongolia4 7#i7 ,in developing and expanding ,mongolia's cashmere industry1 it is critical for ,mongolia to take steps to ensure the protection of its grasslands and prevent overgrazing of cashmere goats4 7#aj7 ,preferential treatment for ,united ,states imports of such ,mongolian products would benefit ,mongolia at this critical time4 #c4 ,duty-free treatment for certain imports from ,mongolia 7a7 ,in general ,subject to the eligibility requirements in subsection 7c71 the ,president is authorized to provide duty-free treatment for any article described in subsection 7b7 that is imported directly from ,mongolia into the customs territory of the ,united ,states4 7b7 ,article described 7#a7 ,in general ,an article is described in this subsection if-- 7,a7 the article is the growth1 product1 or manufacture of ,mongolia2 7,b7 the article is classified under chapter #ea1 #eg1 #fj1 #fa1 #fb1 #fc1 or #id of the ,harmonized ,tariff ,schedule of the ,united ,states2 7,c7 7i7 the article is an apparel or textile article made of fabrics or fibers containing not less than #bc percent by weight of cashmere2 or 7ii7 the sum of the cost or value of cashmere components of the article is not less than #ea percent of the appraised value of the article at the time it is entered2 7,d7 in the case of an article that is a textile or apparel article1 the yarn and fabric used to manufacture the article-- 7i7 are wholly produced in ,mongolia2 and 7ii7 are wholly formed and cut1 or are components wholly knit-to-shape1 in ,mongolia2 7,e7 the sum of the cost or value of the materials produced in1 and the direct costs of processing operations performed in1 ,mongolia or the customs territory of the ,united ,states is not less than #ej percent of the appraised value of the article at the time it is entered2 and 7,f7 the ,president determines that the article is not import-sensitive1 after receiving the advice of the ,united ,states ,international ,trade ,commission in accordance with section #ejc7;e7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;e774 7#b7 ,exclusions ,an article shall not be treated as the growth1 product1 or manufacture of ,mongolia for purposes of paragraph 7#a77;,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 7c7 ,eligibility requirements ,duty-free treatment may not be provided under this ,act unless the ,president determines and certifies to ,congress that-- 7#a7 ,mongolia meets-- 7,a7 each of the requirements described 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 each of the criteria relating to the prevention of transshipment described in paragraphs 7#a7 and 7#b7 of section #aac7;a7 of such ,act 7#ai ,u4,s4,c4 #cgbb7;a772 7#b7 ,mongolia has effectively enforced environmental laws1 regulations1 or other measures and fulfilled its international environmental obligations1 including as such obligations relate to public health2 and 7#c7 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 ,mongolia meets the eligibility requirements of such section #ejb4 7d7 ,verification with respect to transshipment for textile and apparel articles 7#a7 ,in general ,not later than ,january #a of each year1 the ,commissioner of ,u4,s4 ,customs and ,border ,protection shall verify that textile and apparel articles imported from ,mongolia to which duty-free treatment is extended under this ,act are not being unlawfully transshipped into the ,united ,states4 7#b7 ,report to president and congress ,if the ,commissioner determines pursuant to paragraph 7#a7 that textile and apparel articles imported from ,mongolia to which duty-free treatment is extended under this ,act are being unlawfully transshipped into the ,united ,states1 the ,commissioner shall report that determination to the ,president and the appropriate congressional committees4 7e7 ,withdrawal1 suspension1 or limitation of preferential treatment and 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 ,mongolia 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 7f7 ,termination of duty-,free treatment ,no duty-free treatment extended under this ,act shall remain in effect after ,december #ca1 #bjbe4 7g7 ,definitions ,in this section3 7#a7 ,customs territory of the united states ,the term customs territory of the ,united ,states has the meaning given the term in ,general ,note #b of the ,harmonized ,tariff ,schedule of the ,united ,states4 7#b7 ,cashmere ,the term cashmere means fine hair obtained from a cashmere goat 7capra hircus laniger74 #d4 ,briefing requirement 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,president shall monitor1 review1 and provide a briefing to the appropriate congressional committees on-- 7#a7 the implementation of this ,act2 7#b7 compliance of ,mongolia with the eligibility requirements described in section #c7;d72 and 7#c7 the trade and investment policy of the ,united ,states with respect to ,mongolia4 #e4 ,appropriate congressional committees defined ,in this ,act1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,ways and ,means and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7#b7 the ,committee on ,finance and the ,committee on ,foreign ,relations of the ,senate4