[Pages S4233-S4237]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4233. Ms. CANTWELL (for herself and Mr. Hatch) submitted an 
amendment intended to be proposed by her to the bill H.R. 4899, making 
emergency supplemental appropriations for disaster relief and summer 
jobs for the fiscal year ending September 30, 2010, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 81, between lines 23 and 24, insert the following:

             DIVISION __--RECONSTRUCTION OPPORTUNITY ZONES

     SEC. __01. SHORT TITLE.

       This division may be cited as the ``Afghanistan and 
     Pakistan Reconstruction Opportunity Zones Act of 2010''.

     SEC. __02. DEFINITIONS; PURPOSES.

       (a) Definitions.--In this division:
       (1) Agreement on textiles and clothing.--The term 
     ``Agreement on Textiles and Clothing'' means the Agreement on 
     Textiles and Clothing referred to in section 101(d)(4) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
       (2) Category; textile and apparel category number.--The 
     terms ``category'' and ``textile and apparel category 
     number'' mean the number assigned under the U.S. Textile and 
     Apparel Category System of the Office of Textiles and Apparel 
     of the Department of Commerce, as listed in the HTS under the 
     applicable heading or subheading (as in effect on September 
     1, 2007).
       (3) Entered.--The term ``entered'' means entered, or 
     withdrawn from warehouse for consumption, in the customs 
     territory of the United States.
       (4) Entity.--The term ``entity'' means--
       (A) a natural person, corporation, company, business 
     association, partnership, society, trust, any other 
     nongovernmental entity, organization, or group, whether or 
     not for profit;
       (B) any governmental entity or instrumentality of a 
     government; and
       (C) any successor, subunit, or subsidiary of any entity 
     described in subparagraph (A) or (B).
       (5) HTS.--The term ``HTS'' means the Harmonized Tariff 
     Schedule of the United States.
       (6) NAFTA.--The term ``NAFTA'' means the North American 
     Free Trade Agreement concluded between the United States, 
     Mexico, and Canada on December 17, 1992.
       (7) Reconstruction opportunity zone.--The term 
     ``Reconstruction Opportunity Zone'' means any area that--
       (A) encompasses portions of the territory of--
       (i) Afghanistan; or
       (ii) 1 or more of the following areas of Pakistan:

       (I) the Federally Administered Tribal Areas;
       (II) areas of Pakistan-administered Kashmir that the 
     President determines were harmed by the earthquake of October 
     8, 2005;
       (III) areas of Baluchistan that are within 100 miles of 
     Pakistan's border with Afghanistan; and
       (IV) the North West Frontier Province;

       (B) has been designated by the competent authorities in 
     Afghanistan or Pakistan, as the case may be, as an area in 
     which merchandise may be introduced without payment of duty 
     or excise tax; and
       (C) has been designated by the President as a 
     Reconstruction Opportunity Zone pursuant to section __03(a).
       (b) Purposes.--The purposes of this division are--
       (1) to stimulate economic activity and development in 
     Afghanistan and the border region of Pakistan, critical 
     fronts in the struggle against violent extremism;
       (2) to reflect the strong support that the United States 
     has pledged to Afghanistan and Pakistan for their sustained 
     commitment in the global war on terrorism;
       (3) to support the 3-pronged United States strategy in 
     Afghanistan and the border region of Pakistan that leverages 
     political, military, and economic tools, with Reconstruction 
     Opportunity Zones as a critical part of the economic 
     component of that strategy; and
       (4) to offer a vital opportunity to improve livelihoods, 
     promote good governance, and extend and strengthen the 
     Governments of Afghanistan and Pakistan.

     SEC. __03. DESIGNATION OF RECONSTRUCTION OPPORTUNITY ZONES.

       (a) Authority To Designate.--The President is authorized to 
     designate an area within Afghanistan or Pakistan described in 
     section __02(a)(7) (A) and (B) as a Reconstruction 
     Opportunity Zone if the President determines that--
       (1) Afghanistan or Pakistan, as the case may be, meets the 
     eligibility criteria set forth in subsection (b);
       (2) Afghanistan or Pakistan, as the case may be, meets the 
     eligibility criteria set forth in subsection (c) of section 
     502 of the Trade Act of 1974 (19 U.S.C. 2462(c)) for 
     designation as a beneficiary developing country under that 
     section and is not ineligible under subsection (b) of such 
     section; and
       (3) designation of the area as a Reconstruction Opportunity 
     Zone is appropriate taking into account the factors listed in 
     subsection (c).
       (b) Eligibility Criteria.--Afghanistan or Pakistan, as the 
     case may be, meets the eligibility criteria set forth in this 
     subsection if that country--
       (1) has established, or is making continual progress toward 
     establishing--
       (A) a market-based economy that protects private property 
     rights, incorporates an open rules-based trading system, and 
     minimizes government interference in the economy through 
     measures such as price controls, subsidies, and government 
     ownership of economic assets;
       (B) the rule of law, political pluralism, and the right to 
     due process, a fair trial, and equal protection under the 
     law;
       (C) economic policies to--
       (i) reduce poverty;
       (ii) increase the availability of health care and 
     educational opportunities;
       (iii) expand physical infrastructure;
       (iv) promote the development of private enterprise; and
       (v) encourage the formation of capital markets through 
     microcredit or other programs;
       (D) a system to combat corruption and bribery, such as 
     ratifying and implementing the United Nations Convention 
     Against Corruption; and
       (E) protection of internationally recognized worker rights, 
     as defined in section 507(4) of the Trade Act of 1974 (19 
     U.S.C. 2467(4));
       (2) is eliminating or has eliminated barriers to trade and 
     investment, including by--
       (A) providing national treatment and measures to create an 
     environment conducive to domestic and foreign investment;
       (B) protecting intellectual property; and
       (C) resolving bilateral trade and investment disputes;
       (3) does not engage in activities that undermine United 
     States national security or foreign policy interests;
       (4) does not engage in gross violations of internationally 
     recognized human rights;
       (5) does not provide support for acts of international 
     terrorism; and
       (6) cooperates in international efforts to eliminate human 
     rights violations and terrorist activities.
       (c) Additional Factors.--In determining whether to 
     designate an area in Afghanistan or Pakistan as a 
     Reconstruction Opportunity Zone, the President shall take 
     into account--
       (1) an expression by the government of the country of its 
     desire to have a particular

[[Page S4234]]

     area designated as a Reconstruction Opportunity Zone under 
     this division;
       (2) whether the government of the country has provided the 
     United States with a monitoring and enforcement plan 
     outlining specific steps the country will take to cooperate 
     with the United States to--
       (A) facilitate legitimate cross-border commerce;
       (B) ensure that articles for which duty-free treatment is 
     sought pursuant to this division satisfy the applicable rules 
     of origin described in section __04 (c) and (d) or section 
     __05 (c) and (d), whichever is applicable;
       (C) prevent unlawful transshipment, as described in section 
     __06(b)(3); and
       (D) protect internationally recognized worker rights, as 
     defined in section 507(4) of the Trade Act of 1974 (19 U.S.C. 
     2467(4));
       (3) the potential for such designation to create local 
     employment and to promote local and regional economic 
     development;
       (4) the physical security of the proposed Reconstruction 
     Opportunity Zone;
       (5) the economic viability of the proposed Reconstruction 
     Opportunity Zone, including--
       (A) whether there are commitments to finance economic 
     activity proposed for the Reconstruction Opportunity Zone; 
     and
       (B) whether there is existing or planned infrastructure for 
     power, water, transportation, and communications in the area;
       (6) whether such designation would be compatible with and 
     contribute to the foreign policy and national security 
     objectives of the United States, taking into account the 
     information provided under subsection (d); and
       (7) the views of interested persons submitted pursuant to 
     subsection (e).
       (d) Information Relating to Compatibility With and 
     Contribution to Foreign Policy and National Security 
     Objectives of the United States.--In determining whether 
     designation of a Reconstruction Opportunity Zone would be 
     compatible with and contribute to the foreign policy and 
     national security objectives of the United States in 
     accordance with subsection (c)(6), the President shall take 
     into account whether Afghanistan or Pakistan, as the case may 
     be, has provided the United States with a plan outlining 
     specific steps it will take to verify the ownership and 
     nature of the activities of entities to be located in the 
     proposed Reconstruction Opportunity Zone. The specific steps 
     outlined in a country's plan shall include a mechanism by 
     which a competent authority of the country--
       (1) collects from each entity operating in, or proposing to 
     operate in, a Reconstruction Opportunity Zone, information 
     including--
       (A) the name and address of the entity;
       (B) the name and location of all facilities owned or 
     operated by the entity that are operating in or proposed to 
     be operating in a Reconstruction Opportunity Zone;
       (C) the name, nationality, date and place of birth, and 
     position title of each person who is an owner, director, or 
     officer of the entity; and
       (D) the nature of the activities of each entity;
       (2) updates the information required under paragraph (1) as 
     changes occur; and
       (3) provides such information promptly to the Secretary of 
     State.
       (e) Opportunity for Public Comment.--Before the President 
     designates an area as a Reconstruction Opportunity Zone 
     pursuant to subsection (a), the President shall afford an 
     opportunity for interested persons to submit their views 
     concerning the designation.
       (f) Notification to Congress.--Before the President 
     designates an area as a Reconstruction Opportunity Zone 
     pursuant to subsection (a), the President shall notify 
     Congress of the President's intention to make the 
     designation, together with the reasons for making the 
     designation.

     SEC. __04. DUTY-FREE TREATMENT FOR CERTAIN NONTEXTILE AND 
                   NONAPPAREL ARTICLES.

       (a) In General.--The President is authorized to proclaim 
     duty-free treatment for--
       (1) any article from a Reconstruction Opportunity Zone that 
     the President has designated as an eligible article under 
     section 503(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 
     2463(a)(1)(A));
       (2) any article from a Reconstruction Opportunity Zone 
     located in Afghanistan that the President has designated as 
     an eligible article under section 503(a)(1)(B) of the Trade 
     Act of 1974 (19 U.S.C. 2463(a)(1)(B)); or
       (3) any article from a Reconstruction Opportunity Zone that 
     is not a textile or apparel article, regardless of whether 
     the article has been designated as an eligible article under 
     section 503(a)(1)(A) or (B) of the Trade Act of 1974 (19 
     U.S.C. 2463(a)(1)(A) or (B)), if, after receiving the advice 
     of the International Trade Commission pursuant to subsection 
     (b), the President determines that such article is not 
     import-sensitive in the context of imports from a 
     Reconstruction Opportunity Zone.
       (b) Advice Concerning Certain Eligible Articles.--Before 
     proclaiming duty-free treatment for an article pursuant to 
     subsection (a)(3), the President shall publish in the Federal 
     Register and provide the International Trade Commission a 
     list of articles which may be considered for such treatment. 
     The provisions of sections 131 through 134 of the Trade Act 
     of 1974 (19 U.S.C. 2151 through 2154) shall apply to any 
     designation under subsection (a)(3) in the same manner as 
     such sections apply to action taken under section 123 of the 
     Trade Act of 1974 (19 U.S.C. 2133) regarding a proposed trade 
     agreement.
       (c) General Rules of Origin.--
       (1) In general.--The duty-free treatment proclaimed with 
     respect to an article described in paragraph (1) or (3) of 
     subsection (a) shall apply to any article subject to such 
     proclamation which is the growth, product, or manufacture of 
     1 or more Reconstruction Opportunity Zones if--
       (A) that article is imported directly from a Reconstruction 
     Opportunity Zone into the customs territory of the United 
     States; and
       (B)(i) with respect to an article that is an article of a 
     Reconstruction Opportunity Zone in Pakistan, the sum of--
       (I) the cost or value of the materials produced in 1 or 
     more Reconstruction Opportunity Zones in Pakistan or 
     Afghanistan,
       (II) the direct costs of processing operations performed in 
     1 or more Reconstruction Opportunity Zones in Pakistan or 
     Afghanistan, and
       (III) the cost or value of materials produced in the United 
     States, determined in accordance with paragraph (2),

     is not less than 35 percent of the appraised value of the 
     article at the time it is entered into the United States; or
       (ii) with respect to an article that is an article of a 
     Reconstruction Opportunity Zone in Afghanistan, the sum of--
       (I) the cost or value of the materials produced in 1 or 
     more Reconstruction Opportunity Zones in Pakistan or 
     Afghanistan,
       (II) the cost or value of the materials produced in 1 or 
     more countries that are members of the South Asian 
     Association for Regional Cooperation,
       (III) the direct costs of processing operations performed 
     in 1 or more Reconstruction Opportunity Zones in Pakistan or 
     Afghanistan, and
       (IV) the cost or value of materials produced in the United 
     States, determined in accordance with paragraph (2),

     is not less than 35 percent of the appraised value of the 
     article at the time it is entered into the United States.
       (2) Determination of 35 percent for articles from 
     reconstruction opportunity zones in pakistan and 
     afghanistan.--If the cost or value of materials produced in 
     the customs territory of the United States is included with 
     respect to an article described in paragraph (1)(B), for 
     purposes of determining the 35 percent appraised value 
     requirement under clause (i) or (ii) of paragraph (1)(B), not 
     more than 15 percent of the appraised value of the article at 
     the time the article is entered into the United States may be 
     attributable to the cost or value of such United States 
     materials.
       (d) Rules of Origin for Certain Articles of Reconstruction 
     Opportunity Zones in Afghanistan.--
       (1) In general.--The duty-free treatment proclaimed with 
     respect to an article described in paragraph (2) of 
     subsection (a) shall apply to any article subject to such 
     proclamation which is the growth, product, or manufacture of 
     1 or more Reconstruction Opportunity Zones in Afghanistan 
     if--
       (A) that article is imported directly from a Reconstruction 
     Opportunity Zone in Afghanistan into the customs territory of 
     the United States; and
       (B) with respect to that article, the sum of--
       (i) the cost or value of the materials produced in 1 or 
     more Reconstruction Opportunity Zones in Afghanistan,
       (ii) the cost or value of the materials produced in 1 or 
     more countries that are members of the South Asian 
     Association for Regional Cooperation,
       (iii) the direct costs of processing operations performed 
     in 1 or more Reconstruction Opportunity Zones in Afghanistan, 
     and
       (iv) the cost or value of materials produced in the United 
     States, determined in accordance with paragraph (2),

     is not less than 35 percent of the appraised value of the 
     product at the time it is entered into the United States.
       (2) Determination of 35 percent for articles from 
     reconstruction opportunity zones in pakistan and 
     afghanistan.--If the cost or value of materials produced in 
     the customs territory of the United States is included with 
     respect to an article described in paragraph (1)(B), for 
     purposes of determining the 35 percent appraised value 
     requirement under paragraph (1)(B), not more than 15 percent 
     of the appraised value of the article at the time the article 
     is entered into the United States may be attributable to the 
     cost or value of such United States materials.
       (e) Exclusions.--An article shall not be treated as the 
     growth, product, or manufacture of 1 or more Reconstruction 
     Opportunity Zones, and no material shall be included for 
     purposes of determining the 35 percent appraised value 
     requirement under subsection (c)(1) or (d)(1), by virtue of 
     having merely undergone--
       (1) simple combining or packaging operations; or
       (2) mere dilution with water or with another substance that 
     does not materially alter the characteristics of the article 
     or material.
       (f) Direct Costs of Processing Operations.--
       (1) In general.--As used in subsections (c)(1)(B)(i)(II), 
     (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the term ``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 article, 
     including--

[[Page S4235]]

       (i) fringe benefits;
       (ii) on-the-job training; and
       (iii) costs of engineering, supervisory, quality control, 
     and similar personnel; and
       (B) dies, molds, tooling, and depreciation on machinery and 
     equipment which are allocable to the article.
       (2) Excluded costs.--As used in subsections 
     (c)(1)(B)(i)(II), (c)(1)(B)(ii)(III), and (d)(1)(B)(iii), the 
     term ``direct costs of processing operations'' does not 
     include costs which are not directly attributable to the 
     article or are not costs of manufacturing the article, such 
     as--
       (A) profit; and
       (B) general expenses of doing business which are either not 
     allocable to the article or are not related to the growth, 
     production, manufacture, or assembly of the article, such as 
     administrative salaries, casualty and liability insurance, 
     advertising, and salesmen's salaries, commissions, or 
     expenses.
       (g) Regulations.--The Secretary of the Treasury, after 
     consultation with the United States Trade Representative, 
     shall prescribe such regulations as may be necessary to carry 
     out this section. The regulations may provide that, in order 
     for an article to be eligible for duty-free treatment under 
     this section, the article--
       (1) shall be wholly the growth, product, or manufacture of 
     1 or more Reconstruction Opportunity Zones; or
       (2) shall be a new or different article of commerce which 
     has been grown, produced, or manufactured in 1 or more 
     Reconstruction Opportunity Zones.

     SEC. __05. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE AND 
                   APPAREL ARTICLES.

       (a)  Duty-free Treatment.--The President is authorized to 
     proclaim duty-free treatment for any textile or apparel 
     article described in subsection (b), if--
       (1) the article is a covered article described in 
     subsection (b); and
       (2) the President determines that the country in which the 
     Reconstruction Opportunity Zone is located has satisfied the 
     requirements set forth in section __06.
       (b) Covered Articles.--A covered article described in this 
     subsection is an article in 1 of the following categories: 
       (1) Articles of reconstruction opportunity zones.--An 
     article that is the product of 1 or more Reconstruction 
     Opportunity Zones and falls within the scope of 1 of the 
     following textile and apparel category numbers, as set forth 
     in the HTS (as in effect on September 1, 2007):


 
 
 
237.............................  641...............  751
330.............................  642...............  752
331.............................  643...............  758
333.............................  644...............  759
334.............................  650...............  831
 335............................   651..............  832
 336............................  653...............  833
341.............................  654...............  834
342.............................  665...............  835
350.............................  669...............  836
351.............................  733...............  838
353.............................  734...............  839
354.............................  735...............  840
360.............................  736...............  842
361.............................  738...............  843
362.............................  739...............  844
363.............................  740...............  845
369.............................  741...............  846
465.............................  742...............  850
469.............................  743...............  851
630.............................  744...............  852
631.............................  745...............  858
633.............................  746...............  859
634.............................  747...............  863
635.............................  748...............  899
636.............................  750
 

       (2) Articles of reconstruction opportunity zones in 
     afghanistan.--The article is the product of 1 or more 
     Reconstruction Opportunity Zones in Afghanistan and falls 
     within the scope of 1 of the following textile and apparel 
     category numbers, as set forth in the HTS (as in effect on 
     September 1, 2007):


 
 
 
201.............................  439...............  459
414.............................  440...............  464
431.............................  442...............  670
433.............................  444...............  800
434.............................  445...............  810
435.............................  446...............  870
436.............................  448...............  871
438.............................  ..................  ..................
 

       (3) Certain other textile and apparel articles.--The 
     article is the product of 1 or more Reconstruction 
     Opportunity Zones and falls within the scope of 1 of the 
     following textile and apparel category numbers as set forth 
     in the HTS (as in effect on September 1, 2007) and is covered 
     by the corresponding description for such category:
       (A) Category 239.--An article in category 239 (relating to 
     cotton and man-made fiber babies' garments) except for baby 
     socks and baby booties described in subheading 6111.20.6050, 
     6111.30.5050, or 6111.90.5050 of the HTS.
       (B) Category 338.--An article in category 338 (relating to 
     men's and boys' cotton knit shirts) if the article is a 
     certain knit-to-shape garment that meets the definition 
     included in Statistical Note 6 to Chapter 61 of the HTS, and 
     is provided for in subheading 6110.20.1026, 6110.20.2067 or 
     6110.90.9067 of the HTS.
       (C) Category 339.--An article in category 339 (relating to 
     women's and girls' cotton knit shirts and blouses) if the 
     article is a knit-to-shape garment that meets the definition 
     included in Statistical Note 6 to Chapter 61 of the HTS, and 
     is provided for in subheading 6110.20.1031, 6110.20.2077, or 
     6110.90.9071 of the HTS.
       (D) Category 359.--An article in category 359 (relating to 
     other cotton apparel) except swimwear provided for in 
     subheading 6112.39.0010, 6112.49.0010, 6211.11.8010, 
     6211.11.8020, 6211.12.8010, or 6211.12.8020 of the HTS.
       (E) Category 632.--An article in category 632 (relating to 
     man-made fiber hosiery) if the article is panty hose provided 
     for in subheading 6115.21.0020 of the HTS.
       (F) Category 638.--An article in category 638 (relating to 
     men's and boys' man-made fiber knit shirts) if the article is 
     a knit-to-shape garment that meets the definition included in 
     Statistical Note 6 to Chapter 61 of the HTS, and is provided 
     for in subheading 6110.30.2051, 6110.30.3051, or 6110.90.9079 
     of the HTS.
       (G) Category 639.--An article in category 639 (relating to 
     women's and girls' man-made fiber knit shirts and blouses) if 
     the article is a knit-to-shape garment that meets the 
     definition included in Statistical Note 6 to Chapter 61 of 
     the HTS, and is provided for in subheading 6110.30.2061, 
     6110.30.3057, or 6110.90.9081 of the HTS.
       (H) Category 647.--An article in category 647 (relating to 
     men's and boys' man-made fiber trousers) if the article is 
     ski/snowboard pants that meets the definition included in 
     Statistical Note 4 to Chapter 62 of the HTS, and is provided 
     for in subheading 6203.43.3510, 6210.40.5031, or 6211.20.1525 
     of the HTS.
       (I) Category 648.--An article in category 648 (relating to 
     women's and girls' man-made fiber trousers) if the article is 
     ski/snowboard pants that meets the definition included in 
     Statistical Note 4 to Chapter 62 of the HTS, and is provided 
     for in subheading 6204.63.3010, 6210.50.5031, or 6211.20.1555 
     of the HTS.
       (J) Category 659.--An article in category 659 (relating to 
     other man-made fiber apparel) except for swimwear provided 
     for in subheading 6112.31.0010, 6112.31.0020, 6112.41.0010, 
     6112.41.0020, 6112.41.0030, 6112.41.0040, 6211.11.1010, 
     6211.11.1020, 6211.12.1010, or 6211.12.1020 of the HTS.
       (K) Category 666.--An article in category 666 (relating to 
     other man-made fiber furnishings) if the article is window 
     shades and window blinds provided for in subheading 
     6303.12.0010 or 6303.92.2030 of the HTS.
       (4) Certain other articles.--The article is the product of 
     1 or more Reconstruction Opportunity Zones and falls within 
     the scope of 1 of the following statistical reporting numbers 
     of the HTS (as in effect on September 1, 2007):


 
 
 
4202.12.8010....................  6210.20.3000......  6304.99.1000
4202.12.8050....................  6210.20.7000......  6304.99.2500
4202.22.4010....................  6210.30.3000......  6304.99.4000
4202.22.7000....................  6210.30.7000......  6304.99.6030
4202.22.8070....................  6210.40.3000......  6306.22.9010
4202.92.3010....................  6210.40.7000......  6306.29.1100
4202.92.6010....................  6210.50.3000......  6306.29.2100
4202.92.9010....................  6210.50.7000......  6306.40.4100
4202.92.9015....................  6211.20.0810......  6306.40.4900
5601.29.0010....................  6211.20.0820......  6306.91.0000
5702.39.2090....................  6211.32.0003......  6306.99.0000
5702.49.2000....................  6211.33.0003......  6307.10.2030
5702.50.5900....................  6211.42.0003......  6307.20.0000
5702.99.2000....................  6211.43.0003......  6307.90.7200
5703.90.0000....................  6212.10.3000......  6307.90.7500
5705.00.2090....................  6212.10.7000......  6307.90.8500
6108.22.1000....................  6212.90.0050......  6307.90.8950
6111.90.7000....................  6213.90.0500......  6307.90.8985
6113.00.1005....................  6214.10.1000......  6310.90.1000
6113.00.1010....................  6216.00.0800......  6406.99.1580
6113.00.1012....................  6216.00.1300......  6501.00.6000
6115.29.4000....................  6216.00.1900......  6502.00.2000
6115.30.1000....................  6216.00.2600......  6502.00.4000
6115.99.4000....................  6216.00.3100......  6502.00.9060
6116.10.0800....................  6216.00.3500......  6504.00.3000
6116.10.1300....................  6216.00.4600......  6504.00.6000
6116.10.4400....................  6217.10.1010......  6504.00.9045
6116.10.6500....................  6217.10.8500......  6504.00.9075
6116.10.9500....................  6301.90.0020......  6505.10.0000
6116.92.0800....................  6302.29.0010......  6505.90.8015
6116.93.0800....................  6302.39.0020......  6505.90.9050
6116.99.3500....................  6302.59.3010......  6505.90.9076
6117.10.4000....................  6302.99.1000......  9404.90.2000
6117.80.3010....................  6303.99.0030......  9404.90.8523
6117.80.8500....................  6304.19.3030......  9404.90.9523
6210.10.2000....................  6304.91.0060......  9404.90.9570
6210.10.7000....................  ..................  ..................
 

       (c) Rules of Origin for Certain Covered Articles.--
       (1) General rules.--Except with respect to an article 
     listed in paragraph (2) of subsection (b), duty-free 
     treatment may be proclaimed for an article listed in 
     subsection (b) only if the article is imported directly into 
     the customs territory of the United States from a 
     Reconstruction Opportunity Zone and--
       (A) the article is wholly the growth, product, or 
     manufacture of 1 or more Reconstruction Opportunity Zones;
       (B) the article is a yarn, thread, twine, cordage, rope, 
     cable, or braiding, and--
       (i) the constituent staple fibers are spun in, or
       (ii) the continuous filament fiber is extruded in,

     1 or more Reconstruction Opportunity Zones;
       (C) the article is a fabric, including a fabric 
     classifiable under chapter 59 of the HTS, and the constituent 
     fibers, filaments, or yarns are woven, knitted, needled, 
     tufted, felted, entangled, or transformed by any other 
     fabric-making process in 1 or more Reconstruction Opportunity 
     Zones; or
       (D) the article is any other textile or apparel article 
     that is cut (or knit-to-shape) and sewn or otherwise 
     assembled in 1 or more Reconstruction Opportunity Zones from 
     its component pieces.
       (2) Special rules.--
       (A) Certain made-up articles, textile articles in the 
     piece, and certain other textiles and textile articles.--
     Notwithstanding paragraph (1)(D) and except as provided in 
     subparagraphs (C) and (D) of this paragraph, subparagraph 
     (A), (B), or (C) of paragraph (1), as appropriate, shall 
     determine whether a good that is classifiable under 1 of the 
     following headings or subheadings of the HTS shall be 
     considered to

[[Page S4236]]

     meet the rules of origin of this subsection: 5609, 5807, 
     5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304, 
     6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
       (B) Certain knit-to-shape textiles and textile articles.--
     Notwithstanding paragraph (1)(D) and except as provided in 
     subparagraphs (C) and (D) of this paragraph, a textile or 
     apparel article that is wholly formed on seamless knitting 
     machines or by hand-knitting in 1 or more Reconstruction 
     Opportunity Zones shall be considered to meet the rules of 
     origin of this subsection.
       (C) Certain dyed and printed textiles and textile 
     articles.--Notwithstanding paragraph (1)(D), an article 
     classifiable under subheading 6117.10, 6213.00, 6214.00, 
     6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 
     6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 
     6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for an 
     article classifiable under 1 of such subheadings as of cotton 
     or of wool or consisting of fiber blends containing 16 
     percent or more by weight of cotton, shall be considered to 
     meet the rules of origin of this subsection if the fabric in 
     the article is both dyed and printed in 1 or more 
     Reconstruction Opportunity Zones, and such dyeing and 
     printing is accompanied by 2 or more of the following 
     finishing operations: bleaching, shrinking, fulling, napping, 
     decating, permanent stiffening, weighting, permanent 
     embossing, or moireing.
       (D) Fabrics of silk, cotton, man-made fiber, or vegetable 
     fiber.--Notwithstanding paragraph (1)(C), a fabric 
     classifiable under the HTS as of silk, cotton, man-made 
     fiber, or vegetable fiber shall be considered to meet the 
     rules of origin of this subsection if the fabric is both dyed 
     and printed in 1 or more Reconstruction Opportunity Zones, 
     and such dyeing and printing is accompanied by 2 or more of 
     the following finishing operations: bleaching, shrinking, 
     fulling, napping, decating, permanent stiffening, weighting, 
     permanent embossing, or moireing.
       (d) Rules of Origin for Covered Articles That Are Products 
     of 1 or More Reconstruction Opportunity Zones in 
     Afghanistan.--
       (1) General rules.--Duty-free treatment may be proclaimed 
     for an article listed in paragraph (2) of subsection (b) only 
     if the article is imported directly into the customs 
     territory of the United States from a Reconstruction 
     Opportunity Zone in Afghanistan and--
       (A) the article is wholly the growth, product, or 
     manufacture of 1 or more Reconstruction Opportunity Zones in 
     Afghanistan,
       (B) the article is a yarn, thread, twine, cordage, rope, 
     cable, or braiding, and--
       (i) the constituent staple fibers are spun in, or
       (ii) the continuous filament fiber is extruded in,

     1 or more Reconstruction Opportunity Zones in Afghanistan;
       (C) the article is a fabric, including a fabric 
     classifiable under chapter 59 of the HTS, and the constituent 
     fibers, filaments, or yarns are woven, knitted, needled, 
     tufted, felted, entangled, or transformed by any other 
     fabric-making process in 1 or more Reconstruction Opportunity 
     Zones in Afghanistan; or
       (D) the article is any other textile or apparel article 
     that is cut (or knit-to-shape) and sewn or otherwise 
     assembled in 1 or more Reconstruction Opportunity Zones in 
     Afghanistan from its component pieces.
       (2) Special rules.--
       (A) Certain made-up articles, textile articles in the 
     piece, and certain other textiles and textile articles.--
     Notwithstanding paragraph (1)(D) and except as provided in 
     subparagraphs (C) and (D) of this paragraph, subparagraph 
     (A), (B), or (C) of paragraph (1), as appropriate, shall 
     determine whether a good that is classifiable under 1 of the 
     following headings or subheadings of the HTS shall be 
     considered to meet the rules of origin of this subsection: 
     5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 
     6303, 6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
       (B) Certain knit-to-shape textiles and textile articles.--
     Notwithstanding paragraph (1)(D) and except as provided in 
     subparagraphs (C) and (D) of this paragraph, a textile or 
     apparel article that is wholly formed on seamless knitting 
     machines or by hand-knitting in 1 or more Reconstruction 
     Opportunity Zones in Afghanistan shall be considered to meet 
     the rules of origin of this subsection.
       (C) Certain dyed and printed textiles and textile 
     articles.--Notwithstanding paragraph (1)(D), an article 
     classifiable under subheading 6117.10, 6213.00, 6214.00, 
     6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 
     6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 
     6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for an 
     article classifiable under 1 of such subheadings as of cotton 
     or of wool or consisting of fiber blends containing 16 
     percent or more by weight of cotton, shall be considered to 
     meet the rules of origin of this subsection if the fabric in 
     the article is both dyed and printed in 1 or more 
     Reconstruction Opportunity Zones in Afghanistan, and such 
     dyeing and printing is accompanied by 2 or more of the 
     following finishing operations: bleaching, shrinking, 
     fulling, napping, decating, permanent stiffening, weighting, 
     permanent embossing, or moireing.
       (D) Fabrics of silk, cotton, man-made fiber or vegetable 
     fiber.--Notwithstanding paragraph (1)(C), a fabric 
     classifiable under the HTS as of silk, cotton, man-made 
     fiber, or vegetable fiber shall be considered to meet the 
     rules of origin of this subsection if the fabric is both dyed 
     and printed in 1 or more Reconstruction Opportunity Zones in 
     Afghanistan, and such dyeing and printing is accompanied by 2 
     or more of the following finishing operations: bleaching, 
     shrinking, fulling, napping, decating, permanent stiffening, 
     weighting, permanent embossing, or moireing.
       (e) Regulations.--The Secretary of the Treasury, after 
     consultation with the United States Trade Representative, 
     shall prescribe such regulations as may be necessary to carry 
     out this section.

     SEC. __06. PROTECTIONS AGAINST UNLAWFUL TRANSSHIPMENT.

       (a) Duty-free Treatment Conditioned on Enforcement 
     Measures.--
       (1) In general.--The duty-free treatment described in 
     section __05 shall not be provided to covered articles that 
     are imported from a Reconstruction Opportunity Zone in a 
     country unless the President determines that country meets 
     the following criteria:
       (A) The country has adopted effective domestic law and 
     enforcement procedures applicable to covered articles to 
     prevent unlawful transshipment of the articles and the use of 
     false documents relating to the importation of the articles 
     into the United States.
       (B) The country has enacted legislation or promulgated 
     regulations that would permit U.S. Customs and Border 
     Protection verification teams to have the access necessary to 
     investigate thoroughly allegations of unlawful transshipment 
     through such country.
       (C) The country agrees to provide U.S. Customs and Border 
     Protection with a monthly report on shipments of covered 
     articles from each facility engaged in the production of 
     those articles in a Reconstruction Opportunity Zone in that 
     country.
       (D) The country will cooperate fully with the United States 
     to address and take action necessary to prevent 
     circumvention, as described in article 5 of the Agreement on 
     Textiles and Clothing.
       (E) The country agrees to require each entity engaged in 
     the production or manufacture of a covered article in a 
     Reconstruction Opportunity Zone in that country to register 
     with the competent government authority, to provide that 
     authority with the following information, and to update that 
     information as changes occur:
       (i) The name and address of the entity, including the 
     location of all textile or apparel facilities owned or 
     operated by that entity in Afghanistan or Pakistan.
       (ii) The telephone number, facsimile number, and electronic 
     mail address of the entity.
       (iii) The names and nationalities of the owners, directors, 
     and corporate officers, and their positions within the 
     entity.
       (iv) The number of employees the entity employs and their 
     occupations.
       (v) A general description of the covered articles the 
     entity produces and the entity's production capacity.
       (vi) The number and type of machines the entity uses to 
     produce textile or apparel articles at each facility.
       (vii) The approximate number of hours the machines operate 
     per week.
       (viii) The identity of any supplier to the entity of 
     textile or apparel goods, or fabrics, yarns, or fibers used 
     in the production of those goods.
       (ix) The name of, and contact information for, each of the 
     entity's customers in the United States.
       (F) The country agrees to provide to U.S. Customs and 
     Border Protection on a timely basis all of the information 
     received by the competent government authority in accordance 
     with subparagraph (E) and to provide U.S. Customs and Border 
     Protection with an annual update of that information.
       (G) The country agrees to require that all producers and 
     exporters of covered articles in a Reconstruction Opportunity 
     Zone in that country maintain complete records of the 
     production and the export of covered articles, including 
     materials used in the production, for at least 5 years after 
     the production or export (as the case may be).
       (H) The country agrees to provide, on a timely basis, at 
     the request of U.S. Customs and Border Protection, 
     documentation establishing the eligibility of covered 
     articles for duty-free treatment under section __05.
       (2) Documentation establishing eligibility of articles for 
     duty-free treatment.--For purposes of paragraph (1)(H), 
     documentation establishing the eligibility of a covered 
     article for duty-free treatment under section __05 includes 
     documentation such as production records, information 
     relating to the place of production, the number and 
     identification of the types of machinery used in production, 
     and the number of workers employed in production.
       (b) Customs Procedures and Enforcement.--
       (1) In general.--
       (A) Regulations.--The Secretary of the Treasury, after 
     consultation with the United States Trade Representative, 
     shall promulgate regulations setting forth customs procedures 
     similar in all material respects to the requirements of 
     article 502(1) of the NAFTA as implemented pursuant to United 
     States law, which shall apply to any importer that claims 
     duty-free treatment for an article under section __05.
       (B) Determination.--In order for articles produced in a 
     Reconstruction Opportunity

[[Page S4237]]

     Zone to qualify for the duty-free treatment under section 
     __05, there shall be in effect a determination by the 
     President that Afghanistan or Pakistan, as the case may be--
       (i) has implemented and follows, or
       (ii) 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.
       (2) Penalties.--If the President determines, based on 
     sufficient evidence, that an entity has engaged in unlawful 
     transshipment described in paragraph (3), the President shall 
     deny for a period of 5 years beginning on the date of the 
     determination all benefits under section __05 to the entity, 
     any successor of the entity, and any other entity owned or 
     operated by the principals of the entity.
       (3) Unlawful transshipment described.--For purposes of this 
     section, unlawful transshipment occurs when duty-free 
     treatment for a covered article has been claimed 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 the preceding 
     sentence, false information is material if disclosure of the 
     true information would mean or would have meant that the 
     article is or was ineligible for duty-free treatment under 
     section __05.

     SEC. __07. LIMITATIONS ON PROVIDING DUTY-FREE TREATMENT.

       (a) In General.--
       (1) Proclamation.--Except as provided in paragraph (2), and 
     subject to subsection (b) and the conditions described in 
     sections __03 through __06, the President shall exercise the 
     President's authority under this division, and the President 
     shall proclaim any duty-free treatment pursuant to that 
     authority.
       (2) Waiver.--The President may waive the application of 
     duty-free treatment under this division if the President 
     determines that providing such treatment is inconsistent with 
     the national interests of the United States. In making such 
     determination, the President shall consider--
       (A) obligations of the United States under international 
     agreements;
       (B) the national economic interests of the United States; 
     and
       (C) the foreign policy interests of the United States, 
     including the economic development of Afghanistan and the 
     border region of Pakistan.
       (b) Withdrawal, Suspension, or Limitation of Duty-free 
     Treatment.--
       (1) In general.--The President may withdraw, suspend, or 
     limit the application of the duty-free treatment proclaimed 
     under this division. In taking any action to withdraw, 
     suspend, or limit duty-free treatment, the President shall 
     consider the factors set forth in section __03 (b) and (c) of 
     this division, and section 502 (b) and (c) of the Trade Act 
     of 1974 (19 U.S.C. 2462 (b) and (c)).
       (2) Notice to congress.--The President shall advise 
     Congress--
       (A) of any action the President takes to withdraw, suspend, 
     or limit the application of duty-free treatment with respect 
     to Reconstruction Opportunity Zones in Afghanistan or 
     Pakistan; and
       (B) if either Afghanistan or Pakistan fails to adequately 
     take the actions described in section __03 (b) and (c) of 
     this division or section 502 (b) and (c) of the Trade Act of 
     1974.

     SEC. __08. TERMINATION OF BENEFITS.

       Duty-free treatment provided under this division shall 
     remain in effect through September 30, 2023.
                                 ______