19 USC 3722 - Protections against transshipment

Collapse to view only § 3722. Protections against transshipment

§ 3721. Treatment of certain textiles and apparel
§ 3722. Protections against transshipment
§ 3723. Free trade agreements with sub-Saharan African countries
§ 3724. Assistant United States Trade Representative for African Affairs

§ 3721. Treatment of certain textiles and apparel

(a) Preferential treatment

(b) Products coveredSubject to subsection (c), the preferential treatment described in subsection (a) shall apply only to the following textile and apparel products:

(1) Apparel articles assembled in one or more beneficiary sub-Saharan African countriesApparel articles sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under span 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed and cut in the United States) that are—

(A) entered under subspan 9802.00.80 of the Harmonized Tariff Schedule of the United States; or

(B) entered under chapter 61 or 62 of the Harmonized Tariff Schedule of the United States, if, after such assembly, the articles would have qualified for entry under subspan 9802.00.80 of the Harmonized Tariff Schedule of the United States but for the fact that the articles were embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, or other similar processes.

(2) Other apparel articles assembled in one or more beneficiary sub-Saharan African countries

(3) Apparel articles from regional fabric or yarnsApparel articles wholly assembled in one or more beneficiary sub-Saharan African countries from fabric wholly formed in one or more beneficiary sub-Saharan African countries from yarns originating in the United States or one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries, or both (including fabrics not formed from yarns, if such fabrics are classified under span 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed in one or more beneficiary sub-Saharan African countries), or from components knit-to-shape in one or more beneficiary sub-Saharan African countries from yarns originating in the United States or one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries, or both, or apparel articles wholly formed on seamless knitting machines in a beneficiary sub-Saharan African country from yarns originating in the United States or one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries, or both, whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (1) or (2) (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (1) or (2)), subject to the following:

(A) Limitations on benefits

(i) In general

(ii) Applicable percentageFor purposes of this subparagraph, the term “applicable percentage” means—(I) 4.747 percent for the 1-year period beginning October 1, 2003, increased in each of the 5 succeeding 1-year periods by equal increments, so that for the 1-year period beginning October 1, 2007, the applicable percentage does not exceed 7 percent; and(II) for each succeeding 1-year period until September 30, 2025, not to exceed 7 percent.

(B) Surge mechanism

(i) Import monitoring

(ii) Determination of damage or threat thereof

(iii) Factors to consider

(iv) Procedure(I) Initiation(II) Participation by interested parties(III) Notice of determination(IV) Information available

(v) Interested party

(4) Sweaters knit-to-shape from cashmere or merino wool

(A) Cashmere

(B) Merino wool

(5) Apparel articles wholly assembled from fabric or yarn not available in commercial quantities in the United States

(A) In general

(B) Additional apparel articlesAt the request of any interested party and subject to the following requirements, the President is authorized to proclaim the treatment provided under subparagraph (A) for yarns or fabrics not described in subparagraph (A) if—

(i) the President determines that such yarns or fabrics cannot be supplied by the domestic industry in commercial quantities in a timely manner;

(ii) the President has obtained advice regarding the proposed action from the appropriate advisory committee established under section 2155 of this title and the United States International Trade Commission;

(iii) within 60 calendar days after the request, the President has submitted a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate that sets forth—(I) the action proposed to be proclaimed and the reasons for such action; and(II) the advice obtained under clause (ii);

(iv) a period of 60 calendar days, beginning with the first day on which the President has met the requirements of subclauses (I) and (II) of clause (iii), has expired; and

(v) the President has consulted with such committees regarding the proposed action during the period referred to in clause (iii).

(6) Handloomed, handmade, folklore articles and ethnic printed fabrics

(A) In general

(B) Requirements for ethnic printed fabricEthnic printed fabrics qualified under this paragraph are—

(i) fabrics containing a selvedge on both edges, having a width of less than 50 inches, classifiable under subspan 5208.52.30 or 5208.52.40 of the Harmonized Tariff Schedule of the United States;

(ii) of the type that contains designs, symbols, and other characteristics of African prints—(I) normally produced for and sold on the indigenous African market; and(II) normally sold in Africa by the piece as opposed to being tailored into garments before being sold in indigenous African markets;

(iii) printed, including waxed, in one or more eligible beneficiary sub-Saharan countries; and

(iv) fabrics formed in the United States, from yarns formed in the United States, or from fabric formed in one or more beneficiary sub-Saharan African country from yarn originating in either the United States or one or more beneficiary sub-Saharan African countries.

(7) Apparel articles assembled in one or more beneficiary sub-Saharan African countries from United States and beneficiary sub-Saharan African country components

(8) Textile articles originating entirely in one or more lesser developed beneficiary sub-Saharan African countries

(1) Preferential treatment of products through September 30, 2025

(A) Products covered

(B) Applicable percentageFor purposes of subparagraph (A), the term “applicable percentage” means—

(i) 2.9285 percent for the 1-year period beginning on October 1, 2005; and

(ii) 3.5 percent for the 1-year period beginning on October 1, 2006, and each 1-year period thereafter through September 30, 2025.

(2) Applicability of other provisions

(3) DefinitionIn this subsection, the term “lesser developed beneficiary sub-Saharan African country” means—

(A) a beneficiary sub-Saharan African country that had a per capita gross national product of less than $1,500 in 1998, as measured by the International Bank for Reconstruction and Development;

(B) Botswana;

(D) Mauritius.

(d) Treatment of quotas on textile and apparel imports from Kenya and MauritiusThe President shall eliminate the existing quotas on textile and apparel articles imported into the United States—

(1) from Kenya within 30 days after that country adopts an effective visa system to prevent unlawful transshipment of textile and apparel articles and the use of counterfeit documents relating to the importation of the articles into the United States; and

(2) from Mauritius within 30 days after that country adopts such a visa system.

The Customs Service shall provide the necessary technical assistance to Kenya and Mauritius in the development and implementation of the visa systems.

(e) Special rules

(1) Findings and trimmings

(A) General rule

(B) Certain interlinings

(i) General rule

(ii) Interlinings described

(iii) Termination of treatment

(2) De minimis rule

(3) Certain componentsAn article otherwise eligible for preferential treatment under this section will not be ineligible for such treatment because the article contains—

(A) any collars or cuffs (cut or knit-to-shape),

(B) drawstrings,

(D) waistbands,

(E) belt attached to the article,

(F) straps containing elastic, or

(G) elbow patches,

that do not meet the requirements set forth in subsections (b) and (c), regardless of the country of origin of the item referred to in the applicable subparagraph of this paragraph.

(f) DefinitionsIn this section and section 3722 of this title:

(1) Agreement on textiles and clothing

(2) Beneficiary sub-Saharan African country, etc.

(3) USMCA

(4) Former sub-Saharan African country

(5) Enter; entered

(g) Effective date

(Pub. L. 106–200, title I, § 112, May 18, 2000, 114 Stat. 258; Pub. L. 107–210, div. C, title XXXI, § 3108(a), Aug. 6, 2002, 116 Stat. 1038; Pub. L. 108–274, § 7(b)–(f), July 13, 2004, 118 Stat. 824–826; Pub. L. 108–429, title II, § 2004(k)(1), Dec. 3, 2004, 118 Stat. 2595; Pub. L. 109–432, div. D, title VI, §§ 6002–6004, Dec. 20, 2006, 120 Stat. 3190–3194; Pub. L. 110–436, § 3(a), (d), Oct. 16, 2008, 122 Stat. 4980, 4981; Pub. L. 112–163, § 1(a), Aug. 10, 2012, 126 Stat. 1274; Pub. L. 114–27, title I, § 103(b), June 29, 2015, 129 Stat. 364; Pub. L. 116–260, div. O, title VI, § 602(a)(1), Dec. 27, 2020, 134 Stat. 2152.)

§ 3722. Protections against transshipment

(a) Preferential treatment conditioned on enforcement measures

(1) In generalThe preferential treatment under section 3721(a) of this title shall not be provided to textile and apparel articles that are imported from a beneficiary sub-Saharan African country unless that country—

(A) has adopted an effective visa system, domestic laws, and enforcement procedures applicable to covered articles to prevent unlawful transshipment of the articles and the use of counterfeit documents relating to the importation of the articles into the United States;

(B) has enacted legislation or promulgated regulations that would permit United States Customs Service verification teams to have the access necessary to investigate thoroughly allegations of transshipment through such country;

(C) agrees to report, on a timely basis, at the request of the United States Customs Service, on the total exports from and imports into that country of covered articles, consistent with the manner in which the records are kept by that country;

(D) will cooperate fully with the United States to address and take action necessary to prevent circumvention as provided in Article 5 of the Agreement on Textiles and Clothing;

(E) agrees to require all producers and exporters of covered articles in that country to maintain complete records of the production and the export of covered articles, including materials used in the production, for at least 2 years after the production or export (as the case may be); and

(F) agrees to report, on a timely basis, at the request of the United States Customs Service, documentation establishing the country of origin of covered articles as used by that country in implementing an effective visa system.

(2) Country of origin documentation

(b) Customs procedures and enforcement

(1) In general

(A) Regulations

(B) Determination

(i) In generalIn order to qualify for the preferential treatment under section 3721 of this title and for a Certificate of Origin to be valid with respect to any article for which such treatment is claimed, there shall be in effect a determination by the President that each country described in clause (ii)—(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.

(ii) Country describedA country is described in this clause if it is a beneficiary sub-Saharan African country—(I) from which the article is exported; or(II) in which materials used in the production of the article originate or in which the article or such materials, undergo production that contributes to a claim that the article is eligible for preferential treatment.

(2) Certificate of Origin

(3) Penalties for exporters

(4) Transshipment described

(5) Monitoring and reports to Congress

(1) make available technical assistance to the beneficiary sub-Saharan African countries—

(A) in the development and implementation of visa systems, legislation, and regulations described in subsection (a)(1)(A); and

(B) to train their officials in anti-transshipment enforcement;

(2) send production verification teams to at least four beneficiary sub-Saharan African countries each year; and

(3) to the extent feasible, place beneficiary sub-Saharan African countries on the Electronic Visa (ELVIS) program.

(d) Authorization of appropriations

(Pub. L. 106–200, title I, § 113, May 18, 2000, 114 Stat. 263; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210; Pub. L. 116–260, div. O, title VI, § 602(a)(2), Dec. 27, 2020, 134 Stat. 2152.)

§ 3723. Free trade agreements with sub-Saharan African countries

(a) Declaration of policy

(b) Plan requirement

(1) In general

(2) Elements of planThe plan shall include the following:

(A) The specific objectives of the United States with respect to negotiations described in paragraph (1) and a suggested timetable for achieving those objectives.

(B) The benefits to both the United States and the relevant sub-Saharan African countries with respect to the applicable free trade agreement or agreements.

(D) The implications for and the role of regional and sub-regional organizations in sub-Saharan Africa with respect to such free trade agreement or agreements.

(E) Subject matter anticipated to be covered by the negotiations and United States laws, programs, and policies, as well as the laws of participating eligible African countries and existing bilateral and multilateral and economic cooperation and trade agreements, that may be affected by the agreement or agreements.

(F) Procedures to ensure the following:

(i) Adequate consultation with the Congress and the private sector during the negotiations.

(ii) Consultation with the Congress regarding all matters relating to implementation of the agreement or agreements.

(iii) Approval by the Congress of the agreement or agreements.

(iv) Adequate consultations with the relevant African governments and African regional and subregional intergovernmental organizations during the negotiation of the agreement or agreements.

(Pub. L. 106–200, title I, § 116, May 18, 2000, 114 Stat. 266.)

§ 3724. Assistant United States Trade Representative for African AffairsIt is the sense of the Congress that—

(1) the position of Assistant United States Trade Representative for African Affairs is integral to the United States commitment to increasing United States-sub-Saharan African trade and investment;

(2) the position of Assistant United States Trade Representative for African Affairs should be maintained within the Office of the United States Trade Representative to direct and coordinate interagency activities on United States-Africa trade policy and investment matters and serve as—

(A) a primary point of contact in the executive branch for those persons engaged in trade between the United States and sub-Saharan Africa; and

(B) the chief advisor to the United States Trade Representative on issues of trade and investment with Africa; and

(3) the United States Trade Representative should have adequate funding and staff to carry out the duties of the Assistant United States Trade Representative for African Affairs described in paragraph (2), subject to the availability of appropriations.

(Pub. L. 106–200, title I, § 117, May 18, 2000, 114 Stat. 267.)