[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1481 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 1481
To provide duty-free treatment for certain goods from designated
Reconstruction Opportunity Zones in Pakistan and Afghanistan, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 29, 2021
Mr. Van Hollen (for himself, Mr. Young, and Ms. Cantwell) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To provide duty-free treatment for certain goods from designated
Reconstruction Opportunity Zones in Pakistan and Afghanistan, 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 ``Pakistan-Afghanistan Economic
Development Act''.
SEC. 2. PURPOSES.
The purposes of this Act 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 Pakistan and Afghanistan to build regional
stability; and
(3) to offer a vital opportunity--
(A) to improve livelihoods of indigenous
populations of Reconstruction Opportunity Zones; and
(B) to promote good governance in the region.
SEC. 3. DEFINITIONS.
In this Act:
(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 January 22,
2020).
(3) Core labor standards.--The term ``core labor
standards'' means--
(A) freedom of association;
(B) the effective recognition of the right to
bargain collectively;
(C) the elimination of all forms of compulsory or
forced labor;
(D) the effective abolition of child labor and a
prohibition on the worst forms of child labor; and
(E) the elimination of discrimination in respect of
employment and occupation.
(4) Entered.--The term ``entered'' means entered, or
withdrawn from warehouse for consumption, in the customs
territory of the United States.
(5) Entity.--The term ``entity'' means--
(A) a natural person, corporation, company,
business association, partnership, society, trust, or
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).
(6) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(7) Reconstruction opportunity zone.--
(A) In general.--The term ``Reconstruction
Opportunity Zone'' means any area described in
subparagraph (B) that--
(i) has been designated by the competent
authorities in Pakistan or Afghanistan, as the
case may be, as an area in which merchandise
may be introduced without payment of duty or
excise tax; and
(ii) has been designated by the President
as a Reconstruction Opportunity Zone pursuant
to section 4(a).
(B) Area described.--An area described in this
subparagraph is an area that solely encompasses
portions of the territory of the following:
(i) Afghanistan.
(ii) One or more of the following areas of
Pakistan:
(I) The 7 tribal agencies formerly
known as the Federally Administered
Tribal Areas and also known as the
``newly merged districts''.
(II) Khyber Pakhtunkhwa.
(III) Areas of Baluchistan that are
within 100 miles of the border between
Pakistan and Afghanistan.
(8) USMCA.--The term ``USMCA'' means the Agreement between
the United States of America, the United Mexican States, and
Canada, which is--
(A) attached as an Annex to the Protocol Replacing
the North American Free Trade Agreement with the
Agreement between the United States of America, the
United Mexican States, and Canada, done at Buenos Aires
on November 30, 2018, as amended by the Protocol of
Amendment to the Agreement Between the United States of
America, the United Mexican States, and Canada, done at
Mexico City on December 10, 2019; and
(B) approved by Congress under section 101(a)(1) of
the United States-Mexico-Canada Agreement
Implementation Act.
SEC. 4. DESIGNATION OF RECONSTRUCTION OPPORTUNITY ZONES.
(a) Authority To Designate.--The President may designate an area
within Pakistan or Afghanistan described in subparagraph (A)(i) of
section 3(8) as a Reconstruction Opportunity Zone if--
(1) after consideration of the factors set forth in
subsection (c) of section 502 of the Trade Act of 1974 (19
U.S.C. 2462(c)), the President determines that Pakistan or
Afghanistan, as the case may be, is eligible for designation as
a beneficiary developing country under that section and is not
ineligible under subsection (b) of such section; and
(2) the President determines that--
(A) Pakistan or Afghanistan, as the case may be,
meets the eligibility criteria set forth in subsection
(b); and
(B) designation of the area as a Reconstruction
Opportunity Zone is appropriate taking into account the
factors listed in subsection (c).
(b) Eligibility Criteria.--Pakistan or Afghanistan meets the
eligibility criteria set forth in this subsection if Pakistan or
Afghanistan, as the case may be--
(1) has established, or is making continual progress toward
establishing--
(A) a market-based economy that--
(i) protects private property rights;
(ii) incorporates an open rules-based
trading system; and
(iii) 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--
(i) to reduce poverty;
(ii) to increase the availability of health
care and educational opportunities;
(iii) to expand physical infrastructure;
(iv) to promote the development of private
enterprise; and
(v) to encourage the formation of capital
markets through microcredit or other programs;
(D) a system to combat corruption and bribery, such
as a system involving ratification and implementation
of the United Nations Convention Against Corruption,
done at New York October 31, 2003; and
(E) the protection of core labor standards;
(2) is eliminating or has eliminated barriers to trade and
investment, including--
(A) by providing national treatment and measures to
create an environment conducive to domestic and foreign
investment;
(B) by protecting intellectual property; and
(C) by resolving bilateral trade and investment
disputes;
(3) does not engage in activities that undermine the
national security or foreign policy interests of the United
States;
(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 Pakistan or Afghanistan as a Reconstruction Opportunity Zone,
the President shall take into account--
(1) an expression by the Government of Pakistan or
Afghanistan, as the case may be, of its desire to have a
particular area designated as a Reconstruction Opportunity Zone
under this Act;
(2) whether that Government has provided the United States
with a monitoring and enforcement plan outlining specific
actions that Government will take to cooperate with the United
States--
(A) to facilitate legitimate cross-border commerce;
(B) to ensure that articles for which duty-free
treatment is sought pursuant to this Act satisfy the
applicable rules of origin described in sections 5 and
6; and
(C) to prevent unlawful transshipment, as described
in section 7(b)(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 comments 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.--
(1) In general.--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 the
Government of Pakistan or Afghanistan, as the case may be, has
provided the United States with a plan outlining specific
actions that Government will take to verify the ownership and
nature of the activities of entities to be located in the
proposed Reconstruction Opportunity Zone.
(2) Elements.--The specific actions outlined in a plan
described in paragraph (1) shall include methods--
(A) to annually register each entity by a competent
authority in Pakistan or Afghanistan, as the case may
be;
(B) to collect information from each entity
operating in, or proposing to operate in, a
Reconstruction Opportunity Zone, including--
(i) the name and address of the entity;
(ii) 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;
(iii) 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
(iv) the nature of the activities of each
entity;
(C) to update the information required under
subparagraph (B) as changes occur; and
(D) to provide 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 provide an opportunity for
interested persons to submit comments 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 and the reasons for making the designation.
SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN NONTEXTILE AND NONAPPAREL
ARTICLES.
(a) In General.--The President may 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
subparagraph (A) or (B) of section 503(a)(1) of the Trade Act
of 1974 (19 U.S.C. 2463(a)(1)), if, after receiving the advice
of the United States International Trade Commission pursuant to
subsection (b), the President determines that the 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
to the United States International Trade Commission a list of articles
that 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 that 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.--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), for purposes of determining the 35-percent
appraised value requirement under that paragraph, 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 subsection (a)(2) shall
apply to any article subject to such proclamation that 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.--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 that paragraph, 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.--For purposes of subsections (c) and (d),
the term ``direct costs of processing operations'' includes--
(A) all actual labor costs relating to the growth,
production, manufacture, or assembly of the article,
including--
(i) fringe benefits;
(ii) on-the-job training; and
(iii) costs of engineering, supervisory,
quality control, and similar personnel; and
(B) costs relating to dyes, molds, tooling, and
depreciation on machinery and equipment that are
allocable to the article.
(2) Excluded costs.--For purposes of subsections (c) and
(d), the term ``direct costs of processing operations'' does
not include costs that 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 that 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 shall be--
(1) wholly the growth, product, or manufacture of 1 or more
Reconstruction Opportunity Zones; or
(2) a new or different article of commerce that has been
grown, produced, or manufactured in 1 or more Reconstruction
Opportunity Zones.
SEC. 6. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE AND APPAREL ARTICLES.
(a) Duty-Free Treatment.--The President may proclaim duty-free
treatment for any textile or apparel article described in subsection
(b) if the President determines that Pakistan or Afghanistan, as the
case may be, has satisfied the requirements set forth in section 7.
(b) Textile or Apparel Articles Described.--A textile or apparel
article described in this subsection is an article in 1 of the
following categories:
(1) Articles of reconstruction opportunity zones.--An
article that--
(A) is the product of 1 or more Reconstruction
Opportunity Zones; and
(B) falls within the scope of 1 of the following
textile and apparel category numbers, as set forth in
the HTS (as in effect on January 22, 2020):
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.--An article that--
(A) is the product of 1 or more Reconstruction
Opportunity Zones in Afghanistan; and
(B) falls within the scope of 1 of the following
textile and apparel category numbers, as set forth in
the HTS (as in effect on January 22, 2020):
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.--An article
that--
(A) is the product of 1 or more Reconstruction
Opportunity Zones;
(B) falls within the scope of 1 of the following
textile and apparel category numbers as set forth in
the HTS (as in effect on January 22, 2020); and
(C) is covered by the corresponding description for
such category:
(i) 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.
(ii) 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.
(iii) 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.
(iv) 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.
(v) 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.
(vi) 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.
(vii) 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.
(viii) 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.
(ix) 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.
(x) 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.
(xi) Category 666.--An article in category
666 (relating to other man-made fiber
furnishings) except for window shades and
window blinds provided for in subheading
6303.12.0010 or 6303.92.2030 of the HTS.
(4) Certain other articles.--An article that--
(A) is the product of 1 or more Reconstruction
Opportunity Zones; and
(B) falls within the scope of 1 of the following
statistical reporting numbers of the HTS (as in effect
on January 22, 2020):
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), the President may
proclaim duty-free treatment for a textile or apparel article
described in that subsection 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 an article
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
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 subsection (b)(2) 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 an article
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. 7. PROTECTIONS AGAINST UNLAWFUL TRANSSHIPMENT.
(a) Duty-Free Treatment Conditioned on Enforcement Measures.--
(1) In general.--The President may not proclaim duty-free
treatment described in section 6 for textile or apparel
articles described in subsection (b) of that section that are
imported from a Reconstruction Opportunity Zone unless the
President determines that the Government of Pakistan or
Afghanistan, as the case may be--
(A) has adopted an effective visa or electronic
certification system, domestic laws, and enforcement
procedures applicable to such articles to prevent
unlawful transshipment of the articles and the use of
false documents relating to the importation of such
articles into the United States;
(B) 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 Pakistan or Afghanistan,
as the case may be;
(C) agrees to provide U.S. Customs and Border
Protection with a monthly report on shipments of such
articles from each facility engaged in the production
of such articles in a Reconstruction Opportunity Zone;
(D) 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) agrees to require each entity engaged in the
production or manufacture of such articles in a
Reconstruction Opportunity Zone--
(i) to register with the competent
government authority;
(ii) to provide that authority with--
(I) the name and address of the
entity, including the location of all
textile or apparel facilities owned or
operated by that entity in Pakistan or
Afghanistan, as the case may be;
(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 of the entity, and their
positions within the entity;
(IV) the number of employees of the
entity and their occupations;
(V) a general description of the
textile and apparel articles described
in section 6(b) the entity produces and
the production capacity of the entity;
(VI) the number and type of
machines the entity uses to produce
such 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 such articles, or
fabrics, yarns, or fibers used in the
production of such articles; and
(IX) the name of, and contact
information for, each of the customers
of the entity in the United States; and
(iii) to update the information under
clause (ii) as changes occur;
(F) agrees to provide to U.S. Customs and Border
Protection on a timely basis all of the information
received by the competent government authority under
subparagraph (E) and to provide U.S. Customs and Border
Protection with an annual update of that information;
(G) agrees to require that all producers and
exporters of textile and apparel articles described in
section 6(b) in a Reconstruction Opportunity Zone
maintain complete records of the production and the
export of such articles, including materials used in
the production, for at least 5 years after the
production or export (as the case may be); and
(H) agrees to provide, on a timely basis, at the
request of U.S. Customs and Border Protection,
documentation establishing the eligibility of such
articles for duty-free treatment under section 6.
(2) Documentation establishing eligibility of articles for
duty-free treatment.--For purposes of paragraph (1)(H),
documentation establishing the eligibility of a textile or
apparel article described in section 6(b) for duty-free
treatment under section 6 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, the number of workers employed in
production, and certification from the manufacturer and the
exporter.
(b) Customs Procedures and Enforcement.--
(1) In general.--
(A) Regulations.--The Secretary of the Treasury,
after consultation with the United States Trade
Representative, shall prescribe regulations setting
forth customs procedures similar in all material
respects to the requirements of article 5.4 of the
USMCA as implemented pursuant to United States law,
which shall apply to any importer that claims duty-free
treatment for an article under section 6.
(B) Determination.--In order for articles produced
in a Reconstruction Opportunity Zone to qualify for
duty-free treatment under section 6, there shall be in
effect a determination by the President that Pakistan
or Afghanistan, 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 USMCA.
(2) Certificate of origin.--A certificate of origin that
otherwise would be required pursuant to the provisions of
paragraph (1) shall not be required in the case of an article
imported under section 6 if such certificate of origin would
not be required under article 5.5 of the USMCA, as implemented
pursuant to United States law, if the article were imported
from Mexico.
(3) Penalties.--If the President determines, based on
sufficient evidence, that an entity has engaged in unlawful
transshipment described in paragraph (4), the President shall
deny for a period of 5 years beginning on the date of the
determination duty-free treatment under section 6 for articles
of the entity, any successor of the entity, and any other
entity owned, operated, or controlled by the principals of the
entity.
(4) Unlawful transshipment described.--For purposes of this
section, unlawful transshipment occurs when duty-free treatment
for a textile or apparel article described in section 6(b) 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 6.
(5) Monitoring and reports to congress.--The Commissioner
of U.S. Customs and Border Protection shall monitor and, not
later than March 31 of each year, submit to Congress a report
on--
(A) the effectiveness of the visa or electronic
certification systems and the implementation of
legislation and regulations described in subsection
(a); and
(B) measures taken by the governments of Pakistan
and Afghanistan to prevent circumvention as described
in article 5 of the Agreement on Textile and Clothing.
(c) Additional Customs Enforcement.--
(1) In general.--The Commissioner of U.S. Customs and
Border Protection shall--
(A) make available technical assistance to Pakistan
and Afghanistan--
(i) in the development and implementation
of visa or electronic certification systems,
legislation, and regulations described in
subparagraphs (A) and (B) of subsection (a)(1);
and
(ii) to train officials of Pakistan and
Afghanistan in anti-transshipment enforcement;
(B) send production verification teams to Pakistan
and Afghanistan as necessary; and
(C) to the extent feasible, include Pakistan and
Afghanistan in the Electronic Certification System of
U.S. Customs and Border Protection or other relevant
electronic certification program.
(2) Authorization of appropriations.--There is authorized
to be appropriated to U.S. Customs and Border Protection to
carry out this subsection $10,000,000 for each of fiscal years
2021 through 2031.
SEC. 8. TECHNICAL ASSISTANCE, CAPACITY BUILDING, COMPLIANCE ASSESSMENT,
AND REMEDIATION PROGRAM.
(a) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives.
(2) Textile or apparel exporting enterprise.--The term
``textile or apparel exporting enterprise'' means a producer of
textile or apparel articles that is located in a Reconstruction
Opportunity Zone and is seeking or receiving any duty-free
treatment for articles under section 6.
(b) Eligibility.--
(1) Presidential certification of compliance with
requirements.--Upon the expiration of the 24-month period
beginning on the date on which the President notifies Congress
of the President's intention to designate an area within
Pakistan or Afghanistan as a Reconstruction Opportunity Zone
under section 4, duty-free treatment shall continue to apply
under this Act only if the President determines and certifies
to Congress that the Government of Pakistan or Afghanistan, as
the case may be--
(A) has implemented the requirements set forth in
subsections (c) and (d); and
(B) has agreed to require textile or apparel
exporting enterprises to participate in the program
described in subsection (d) and has developed a system
to ensure participation in such program by such
enterprises, including by developing and maintaining
the registry described in subsection (c)(2)(A).
(2) Extension.--The President may extend the period for
compliance by Pakistan or Afghanistan under paragraph (1) if
the President--
(A) determines that the Government of Pakistan or
Afghanistan, as the case may be, has made a good faith
effort toward such compliance and has agreed to take
additional actions to come into full compliance that
are satisfactory to the President; and
(B) not later than 180 days after the last day of
the 24-month period specified in paragraph (1), and
every 180 days thereafter, submits to the appropriate
congressional committees a report identifying--
(i) the actions that the Government of
Pakistan or Afghanistan, as the case may be,
has agreed to take to come into full compliance
under paragraph (1); and
(ii) the progress made over the preceding
180-day period in implementing such actions.
(3) Continuing compliance.--
(A) Termination of eligibility for duty-free
treatment.--If, after making a certification under
paragraph (1), the President determines that Pakistan
or Afghanistan is no longer meeting the requirements
set forth in paragraph (1), the President shall
terminate the eligibility of Pakistan or Afghanistan,
as the case may be, provided under section 4(b), unless
the President determines, after consulting with the
appropriate congressional committees, that meeting such
requirements is not practicable because of
extraordinary circumstances existing in Pakistan or
Afghanistan, as the case may be, when the determination
is made.
(B) Subsequent compliance.--If, after terminating
the eligibility of Pakistan or Afghanistan under
subparagraph (A), the President determines that
Pakistan or Afghanistan, as the case may be, is meeting
the requirements set forth in paragraph (1), the
President shall reinstate the eligibility of Pakistan
or Afghanistan, as the case may be, under section 4(b).
(c) Labor Official.--
(1) In general.--The governments of Pakistan and
Afghanistan shall designate a labor official within that
Government who--
(A) reports directly to the President of Pakistan
or Afghanistan, as the case may be;
(B) is chosen by the President of Pakistan or
Afghanistan, as the case may be, in consultation with
labor unions and industry associations; and
(C) is vested with the authority to perform the
functions described in paragraph (2).
(2) Functions.--The functions of the labor official
designated under paragraph (1) shall include--
(A) developing and maintaining a registry of
textile or apparel exporting enterprises, and
developing, in consultation and coordination with any
other appropriate officials of the Government of
Pakistan or Afghanistan, as the case may be, a system
to ensure participation by such enterprises in the
program described in subsection (d);
(B) overseeing the implementation of the program
described in subsection (d);
(C) receiving and investigating comments from any
interested party regarding the conditions described in
subsection (d)(2) in facilities of textile or apparel
exporting enterprises listed in the registry described
in subparagraph (A) and, as appropriate, referring such
comments or the result of such investigations to the
appropriate authorities of Pakistan or Afghanistan, as
the case may be, or to the entity operating the program
described in subsection (d);
(D) assisting, in consultation and coordination
with any other appropriate authorities of Pakistan or
Afghanistan, as the case may be, textile or apparel
exporting enterprises listed in the registry described
in subparagraph (A) in meeting the conditions described
in subsection (d)(2); and
(E) coordinating, with the assistance of the entity
operating the program described in subsection (d), a
committee comprised of appropriate representatives of
government agencies, employers, and workers, as well as
other relevant interested parties, for the purposes
of--
(i) evaluating progress in implementing the
program described in subsection (d); and
(ii) consulting on improving core labor
standards and working conditions in the textile
and apparel sector in Pakistan or Afghanistan,
as the case may be, and on other matters of
common concern relating to such core labor
standards and working conditions.
(d) Technical Assistance, Capacity Building, Compliance Assessment,
and Remediation Program.--
(1) In general.--The governments of Pakistan and
Afghanistan, in cooperation with the International Labour
Organization, shall each establish a program meeting the
requirements under paragraph (3)--
(A) to assess compliance by textile or apparel
exporting enterprises listed in the registry described
in subsection (c)(2)(A) with the conditions described
in paragraph (2) and to assist such enterprises in
meeting such conditions; and
(B) to provide assistance to improve the capacity
of that government--
(i) to inspect facilities of textile or
apparel exporting enterprises listed in the
registry described in subsection (c)(2)(A); and
(ii) to enforce national labor laws and
resolve labor disputes, including through
measures described in paragraph (5).
(2) Conditions described.--The conditions described in this
paragraph are--
(A) compliance with core labor standards; and
(B) compliance with the labor laws of Pakistan or
Afghanistan, as the case may be, that relate directly
to core labor standards and to ensuring acceptable
conditions of work with respect to minimum wages, hours
of work, and occupational health and safety.
(3) Requirements.--The program established under paragraph
(1) shall--
(A) be operated by the International Labour
Organization (or any subdivision, instrumentality, or
designee thereof) that publishes annual reports in
accordance with paragraph (4);
(B) be developed through a participatory process
that includes the labor official designated pursuant to
subsection (c) and appropriate representatives of
government agencies, employers, and workers;
(C) assess compliance by each textile or apparel
exporting enterprise listed in the registry described
in subsection (c)(2)(A) with the conditions described
in paragraph (2) and identify any deficiencies by such
enterprise with respect to meeting such conditions,
including--
(i) by conducting site visits to facilities
of the enterprise;
(ii) by conducting confidential interviews
with workers and management of the facilities
of the enterprise; and
(iii) by providing to management and
workers, and as applicable, worker
organizations in the enterprise, on a
confidential basis--
(I) the results of the assessment
carried out under this subparagraph;
and
(II) specific suggestions for
remediating any such deficiencies;
(D) assist the textile or apparel exporting
enterprise in remediating any deficiencies identified
under subparagraph (C);
(E) conduct prompt follow-up site visits to the
facilities of the textile or apparel exporting
enterprise to assess progress on remediation of any
deficiencies identified under subparagraph (C); and
(F) provide training to workers and management of
the textile or apparel exporting enterprise, and as
appropriate, to other persons or entities, to promote
compliance with the conditions described in paragraph
(2).
(4) Annual report.--
(A) In general.--Not later than 1 year after the
date on which Pakistan or Afghanistan, as the case may
be, has implemented the program under this subsection,
and annually thereafter, the entity operating the
program shall publish a report, covering the preceding
1-year period, that includes the following:
(i) The name of each textile or apparel
exporting enterprise listed in the registry
described in subsection (c)(2)(A) that has been
identified as having met the conditions
described in paragraph (2).
(ii) The name of each textile or apparel
exporting enterprise listed in the registry
described in subsection (c)(2)(A) that has been
identified as having deficiencies with respect
to the conditions set forth in paragraph (2),
and has failed to remedy such deficiencies.
(iii) For each textile or apparel exporting
enterprise listed under clause (ii)--
(I) a description of the
deficiencies found to exist and the
specific suggestions for remediating
such deficiencies made by the entity
operating the program;
(II) a description of the efforts
by the enterprise to remediate the
deficiencies, including a description
of assistance provided by any entity to
assist in such remediation; and
(III) with respect to deficiencies
that have not been remediated, the
amount of time that has elapsed since
the deficiencies were first identified
in a report under this subparagraph.
(iv) For each textile or apparel exporting
enterprise identified as having deficiencies
with respect to the conditions described in
paragraph (2) in a previous report under this
subparagraph--
(I) a description of the progress
made in remediating such deficiencies
since the submission of the previous
report; and
(II) an assessment of whether any
aspect of such deficiencies persists.
(B) Availability.--Each report required by
subparagraph (A) shall be made available to the public
in a readily accessible manner.
(5) Capacity building.--The assistance to the governments
of Pakistan and Afghanistan referred to in paragraph (1)(B)
shall include programs--
(A) to review the labor laws and regulations of
Pakistan and Afghanistan and to develop and implement
strategies for improving labor laws and regulations;
(B) to develop additional strategies for
facilitating protection of core labor standards and
providing acceptable conditions of work with respect to
minimum wages, hours of work, and occupational safety
and health, including through legal, regulatory, and
institutional reform;
(C) to increase awareness of core labor standards
and national labor laws;
(D) to promote consultation and cooperation between
government representatives, employers, worker
representatives, and United States importers on matters
relating to core labor standards and national labor
laws;
(E) to assist the labor official designated
pursuant to subsection (c) in establishing and
coordinating operation of the committee described in
subsection (c)(2)(E);
(F) to assist worker representatives in more fully
and effectively advocating on behalf of members; and
(G) to provide on-the-job training and technical
assistance to labor inspectors, judicial officers, and
other relevant personnel to build capacity to enforce
national labor laws and resolve labor disputes.
(e) Compliance With Eligibility Criteria.--
(1) Country compliance with core labor standards
eligibility criteria.--In making a determination of whether
Pakistan or Afghanistan, as the case may be, is meeting the
requirement set forth in section 4(b)(1)(E) relating to core
labor standards, the President shall consider the reports
required by subsection (d)(4).
(2) Enterprise eligibility.--
(A) Identification of producers.--Not later than 2
years after the date on which the President makes the
certification under subsection (b)(1), and every 2
years thereafter, the President shall identify whether
a textile or apparel exporting enterprise listed in the
registry described in subsection (c)(2)(A) has failed
to comply with core labor standards and the labor laws
of Pakistan or Afghanistan, as the case may be, that
directly relate to and are consistent with core labor
standards.
(B) Assistance to enterprises; withdrawal,
suspension, or limitation of duty-free treatment.--For
each textile or apparel exporting enterprise that the
President identifies under subparagraph (A), the
President shall seek to assist such enterprise in
coming into compliance with core labor standards and
the labor laws of Pakistan or Afghanistan, as the case
may be, that directly relate to and are consistent with
core labor standards. If such efforts fail, the
President shall withdraw, suspend, or limit the
application of duty-free treatment under section 6 to
articles of such enterprise.
(C) Reinstating duty-free treatment.--If, after
withdrawing, suspending, or limiting the application of
duty-free treatment under subparagraph (B) to articles
of a textile or apparel exporting enterprise, the
President determines that such enterprise is complying
with core labor standards and the labor laws of
Pakistan or Afghanistan, as the case may be, that
directly relate to and are consistent with core labor
standards, the President shall reinstate the
application of duty-free treatment under section 6 to
the articles of the enterprise.
(D) Consideration of reports.--In making the
identification under subparagraph (A) and the
determination under subparagraph (C), the President
shall consider the reports required by subsection
(d)(4).
(f) Reports by the President.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, and annually thereafter, the
President shall submit to the appropriate congressional
committees a report on the implementation of this section
during the preceding 1-year period.
(2) Matters to be included.--Each report required by
paragraph (1) shall include the following:
(A) An explanation of the efforts of the
governments of Pakistan and Afghanistan, the President,
and the International Labour Organization to carry out
this section.
(B) A summary of each report required by (d)(4)
during the preceding 1-year period and a summary of the
findings contained in such report.
(C) Identifications made under subsection (e)(2)(A)
and determinations made under subsection (e)(2)(C).
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for the period
beginning on October 1, 2021, and ending on September 30, 2031.
SEC. 9. REVIEW OF ELIGIBILITY OF PAKISTAN AND AFGHANISTAN.
(a) In General.--Any interested party may file a request to have
the President review the eligibility of Pakistan or Afghanistan under
section 4(b) for the designation of Reconstruction Opportunity Zones
under this Act.
(b) Procedures.--To carry out subsection (a), the President shall
use the same procedures applicable to reviewing the eligibility of
countries for designation as beneficiary developing countries under
section 502 of the Trade Act of 1974 (19 U.S.C. 2462).
SEC. 10. 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 4 through 8, the President shall exercise the
President's authority under this Act and proclaim any duty-free
treatment pursuant to that authority.
(2) Waiver.--The President may waive the application of
duty-free treatment under this Act with respect to articles
imported from Reconstruction Opportunity Zones in Pakistan or
Afghanistan or textile or apparel exporting enterprises
receiving duty-free treatment under section 5 or 6 if the
President determines that providing such treatment is
inconsistent with the national interests of the United States.
In making such a 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--
(i) the border region of Pakistan; and
(ii) Afghanistan.
(b) Withdrawal, Suspension, or Limitation of Duty-Free Treatment.--
(1) In general.--The President may withdraw, suspend, or
limit the application of duty-free treatment proclaimed under
this Act.
(2) Reconstruction opportunity zones.--In taking any action
to withdraw, suspend, or limit duty-free treatment with respect
to articles imported from Reconstruction Opportunity Zones, the
President shall consider the factors set forth in--
(A) subsections (b) and (c) of section 4 of this
Act; and
(B) subsections (b) and (c) of section 502 of the
Trade Act of 1974 (19 U.S.C. 2462 (b) and (c)).
(3) Enterprises.--In taking any action to withdraw,
suspend, or limit duty-free treatment with respect to textile
or apparel exporting enterprises receiving duty-free treatment
under section 5 or 6, the President shall consider--
(A) the factors set forth in--
(i) subsections (b) and (c) of section 4 of
this Act; and
(ii) subsections (b) and (c) of section 502
of the Trade Act of 1974 (19 U.S.C. 2462 (b)
and (c));
(B) the information described in section 4(d)
relating to verification of the ownership and nature of
the activities of such enterprises; and
(C) any other relevant information the President
determines to be appropriate.
(c) Notice to Congress.--The President shall notify Congress--
(1) of any action the President takes to withdraw, suspend,
or limit the application of duty-free treatment with respect to
Reconstruction Opportunity Zones in Pakistan or Afghanistan or
textile or apparel exporting enterprises receiving duty-free
treatment under section 5 or 6; and
(2) if Pakistan or Afghanistan fails to adequately satisfy
the factors set forth in--
(A) subsections (b) and (c) of section 4 of this
Act; or
(B) subsections (b) and (c) of section 502 of the
Trade Act of 1974 (19 U.S.C. 2462).
SEC. 11. TERMINATION OF DUTY-FREE TREATMENT.
Duty-free treatment provided under this Act shall remain in effect
through September 30, 2031.
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