[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2824 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2824
To promote United States-Mongolia trade by authorizing duty-free
treatment for certain imports from Mongolia, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2021
Ms. Titus (for herself and Mr. Young) introduced the following bill;
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 Mongolia, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mongolia Third Neighbor Trade Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In 1992, Mongolia adopted a constitution establishing a
parliamentary democracy, becoming the only country in Asia to
transition from communism to democracy. Mongolia shares land
borders with only the Russian Federation and the People's
Republic of China. With a large land area and a population of
only 3,000,000, Mongolia is the world's most sparsely populated
country, and Mongolia's sovereignty is thought to be at risk
from the overwhelming influence of its much larger and more
populous neighbors.
(2) 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
Afghanistan, and has a strong record of troop contributions to
international peacekeeping missions. Mongolia's success as a
democracy, strategic location, sovereignty, territorial
integrity, and ability to pursue an independent foreign policy
are highly relevant to the national security of the United
States.
(3) Mongolia describes the United States as its most
important ``third neighbor'', but United States-Mongolia trade
is substantially lower than many other bilateral trading
relationships, and trade has declined in recent years. Total
trade between the countries in 2012 measured $707,000,000, but
in 2017 the United States exported only $82,200,000 in goods to
Mongolia and imported only $9,400,000 in goods from Mongolia.
(4) After mining, agriculture is the second most important
sector contributing to the Mongolian economy. The livestock
sector accounts for 87 percent of agricultural production in
Mongolia and employs around one-third of the working
population.
(5) Since the 1940s, the annual mean air temperature in
Mongolia has risen at three times the global rate. Average
precipitation is declining and extreme weather disasters are
more frequent, posing acute challenges for livestock herding in
the country. In 2017, an estimated 700,000 of the country's
livestock population were killed due to the post-drought
extreme winter phenomenon known as ``dzud''. This phenomenon is
unique to Mongolia and has increased in frequency and severity
in recent years, causing a rise in livestock mortality and
diminishing livelihoods for herders which has led to widespread
rural poverty and a contraction in the national economy.
(6) 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
dzuds.
(7) The cashmere trade is particularly important to
Mongolia's economy, but while Mongolia produces over one-third
of the world's raw cashmere, it produces few finished cashmere
products. Most Mongolian raw cashmere is exported to China, and
the United States buys nearly all of its cashmere products from
China. Preferential treatment for United States imports of
certain Mongolian products, including cashmere products, would
benefit the United States by facilitating increased trade with
Mongolia.
(8) The development of Mongolia's garment industry would
also promote women's employment and empowerment. Women have
historically participated in Mongolia's garment industry at
high rates, and the garment industry has historically provided
safe and stable employment for women in Mongolia.
(9) In developing and expanding Mongolia's cashmere
industry, it is critical for Mongolia to take steps to ensure
the protection of its grasslands and prevent overgrazing of
cashmere goats.
(10) Preferential treatment for United States imports of
such Mongolian products would benefit Mongolia at this critical
time.
SEC. 3. DUTY-FREE TREATMENT FOR CERTAIN IMPORTS FROM MONGOLIA.
(a) In General.--Subject to the eligibility requirements in
subsection (c), the President is authorized to provide duty-free
treatment for any article described in subsection (b) that is imported
directly from Mongolia into the customs territory of the United States.
(b) Article Described.--
(1) In general.--An article is described in this subsection
if--
(A) the article is the growth, product, or
manufacture of Mongolia;
(B) the article is classified under chapter 51, 57,
60, 61, 62, 63, or 94 of the Harmonized Tariff Schedule
of the United States;
(C)(i) the article is an apparel or textile article
made of fabrics or fibers containing not less than 23
percent by weight of cashmere; or
(ii) the sum of the cost or value of cashmere
components of the article is not less than 51 percent
of the appraised value of the article at the time it is
entered;
(D) in the case of an article that is a textile or
apparel article, the yarn and fabric used to
manufacture the article--
(i) are wholly produced in Mongolia; and
(ii) are wholly formed and cut, or are
components wholly knit-to-shape, in Mongolia;
(E) the sum of the cost or value of the materials
produced in, and the direct costs of processing
operations performed in, Mongolia or the customs
territory of the United States is not less than 50
percent of the appraised value of the article at the
time it is entered; and
(F) the President determines that the article is
not import-sensitive, after receiving the advice of the
United States International Trade Commission in
accordance with section 503(e) of the Trade Act of 1974
(19 U.S.C. 2463(e)).
(2) Exclusions.--An article shall not be treated as the
growth, product, or manufacture of Mongolia for purposes of
paragraph (1)(A) 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.
(c) Eligibility Requirements.--Duty-free treatment may not be
provided under this Act unless the President determines and certifies
to Congress that--
(1) Mongolia meets--
(A) each of the requirements described in
paragraphs (1), (2), and (3) of section 104(a) of the
African Growth and Opportunity Act (19 U.S.C. 3703(a));
and
(B) each of the criteria relating to the prevention
of transshipment described in paragraphs (1) and (2) of
section 113(a) of such Act (19 U.S.C. 3722(a));
(2) Mongolia has effectively enforced environmental laws,
regulations, or other measures and fulfilled its international
environmental obligations, including as such obligations relate
to public health; and
(3) after taking into account the factors set forth in
paragraphs (1) through (7) of subsection (c) of section 502 of
the Trade Act of 1974 (19 U.S.C. 2462), Mongolia meets the
eligibility requirements of such section 502.
(d) Verification With Respect to Transshipment for Textile and
Apparel Articles.--
(1) In general.--Not later than January 1 of each year, the
Commissioner of U.S. 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 States.
(2) Report to president and congress.--If the Commissioner
determines pursuant to paragraph (1) 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 States, the Commissioner shall report that
determination to the President and the appropriate
congressional committees.
(e) Withdrawal, Suspension, or Limitation of Preferential Treatment
and Mandatory Graduation.--The provisions of subsections (d) and (e) of
section 502 of the Trade Act of 1974 (19 U.S.C. 2462) 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 (19 U.S.C. 2461 et seq.).
(f) Termination of Duty-Free Treatment.--No duty-free treatment
extended under this Act shall remain in effect after December 31, 2026.
(g) Definitions.--In this section:
(1) Customs territory of the united states.--The term
``customs territory of the United States'' has the meaning
given the term in General Note 2 of the Harmonized Tariff
Schedule of the United States.
(2) Cashmere.--The term ``cashmere'' means fine hair
obtained from a cashmere goat (capra hircus laniger).
SEC. 4. BRIEFING REQUIREMENT.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the President shall
monitor, review, and provide a briefing to the appropriate
congressional committees on--
(1) the implementation of this Act;
(2) compliance of Mongolia with the eligibility
requirements described in section 3(d); and
(3) the trade and investment policy of the United States
with respect to Mongolia.
SEC. 5. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this Act, the term ``appropriate congressional committees''
means--
(1) the Committee on Ways and Means and the Committee on
Foreign Affairs of the House of Representatives; and
(2) the Committee on Finance and the Committee on Foreign
Relations of the Senate.
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