HR 6504 — Haiti Economic Lift Program Extension Act

CHANGES IN EXISTING LAW MADE BY THE BILL,
 AS REPORTED

 In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows.

 Changes in Existing Law Made by the Bill, as Reported

 In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 CARIBBEAN BASIN ECONOMIC RECOVERY ACT

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TITLE II--CARIBBEAN BASIN INITIATIVE

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Subtitle A--Duty-Free Treatment

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SEC. 213A. SPECIAL RULES FOR HAITI.

 (a) Definitions.--In this section:
 (1) Initial applicable 1-year period.--The term 
 ``initial applicable 1-year period'' means the 1-year 
 period beginning on December 20, 2006.
 (2) 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.
 (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) Enter; entry.--The terms ``enter'' and ``entry'' 
 refer to the entry, or withdrawal from warehouse for 
 consumption, in the customs territory of the United 
 States.
 (5) Imported directly from haiti or the dominican 
 republic.--Articles are ``imported directly from Haiti 
 or the Dominican Republic'' if--
 (A) the articles are shipped directly from 
 Haiti or the Dominican Republic into the United 
 States without passing through the territory of 
 any intermediate country; or
 (B) the articles are shipped from Haiti or 
 the Dominican Republic into the United States 
 through the territory of an intermediate 
 country, and--
 (i) the articles in the shipment do 
 not enter into the commerce of any 
 intermediate country, and the invoices, 
 bills of lading, and other shipping 
 documents specify the United States as 
 the final destination; or
 (ii) the invoices and other documents 
 do not specify the United States as the 
 final destination, but the articles in 
 the shipment--
 (I) remain under the control 
 of the customs authority in the 
 intermediate country;
 (II) do not enter into the 
 commerce of the intermediate 
 country except for the purpose 
 of a sale other than at retail; 
 and
 (III) have not been subjected 
 to operations in the 
 intermediate country other than 
 loading, unloading, or other 
 activities necessary to 
 preserve the articles in good 
 condition.
 (6) Knit-to-shape.--A good is ``knit-to-shape'' if 50 
 percent or more of the exterior surface area of the 
 good is formed by major parts that have been knitted or 
 crocheted directly to the shape used in the good, with 
 no consideration being given to patch pockets, 
 appliques, or the like. Minor cutting, trimming, or 
 sewing of those major parts shall not affect the 
 determination of whether a good is ``knit-to-shape.''
 (7) TAICNAR program.--The term ``TAICNAR Program'' 
 means the Technical Assistance Improvement and 
 Compliance Needs Assessment and Remediation Program 
 established pursuant to subsection (e).
 (8) Wholly assembled.--A good is ``wholly assembled'' 
 in Haiti if all components, of which there must be at 
 least two, pre-existed in essentially the same 
 condition as found in the finished good and were 
 combined to form the finished good in Haiti. Minor 
 attachments and minor embellishments (for example, 
 appliques, beads, spangles, embroidery, and buttons) 
 not appreciably affecting the identity of the good, and 
 minor subassemblies (for example, collars, cuffs, 
 plackets, and pockets), shall not affect the 
 determination of whether a good is ``wholly assembled'' 
 in Haiti.
 (b) Apparel and Other Textile Articles.--
 (1) Value-added rule for apparel articles.--
 (A) In general.--Apparel articles described 
 in subparagraph (B) of a producer or entity 
 controlling production that are imported 
 directly from Haiti or the Dominican Republic 
 shall enter the United States free of duty 
 during the initial applicable 1-year period and 
 any 1-year period thereafter, subject to the 
 limitations set forth in subparagraphs (B) and 
 (C), and subject to subparagraph (D).
 (B) Apparel articles described.--
 (i) In general.--In the initial 
 applicable 1-year period and any 1-year 
 period thereafter, apparel articles 
 described in this paragraph are apparel 
 articles that are wholly assembled, or 
 are knit-to-shape, in Haiti from any 
 combination of fabrics, fabric 
 components, components knit-to-shape, 
 and yarns, only if, for each entry in 
 that 1-year period, the sum of--
 (I) the cost or value of the 
 materials produced in Haiti or 
 one or more countries described 
 in clause (iii), or any 
 combination thereof, plus
 (II) the direct costs of 
 processing operations (as 
 defined in section 213(a)(3)) 
 performed in Haiti or one or 
 more countries described in 
 clause (iii), or any 
 combination thereof,
 is not less than the applicable 
 percentage (as defined in clause 
 (v)(I)) of the declared customs value 
 of such apparel articles.
 (ii) Deductions.--In calculating cost 
 or value under clause (i)(I), there 
 shall be deducted the cost or value 
 of--
 (I) any foreign materials 
 that are used in the production 
 of the apparel articles in 
 Haiti; and
 (II) any foreign materials 
 that are used in the production 
 of the materials described in 
 clause (i)(I).
 (iii) Countries described.--The 
 countries referred to in clause (i) are 
 the following:
 (I) The United States.
 (II) Any country that is a 
 party to a free trade agreement 
 with the United States that is 
 in effect on the date of the 
 enactment of the Haitian 
 Hemispheric Opportunity through 
 Partnership Encouragement Act 
 of 2006, or that enters into 
 force thereafter.
 (III) Any country designated 
 as a beneficiary country under 
 section 213(b)(5)(B) of this 
 Act.
 (IV) Any country designated 
 as a beneficiary country under 
 section 506A(a)(1) of the Trade 
 Act of 1974 (19 U.S.C. 
 2466a(a)(1)), if a finding has 
 been made by the President or 
 the President's designee, and 
 published in the Federal 
 Register, that the country has 
 satisfied the requirements of 
 section 113 of the African 
 Growth and Opportunity Act (19 
 U.S.C. 3722).
 (V) Any country designated as 
 a beneficiary country under 
 section 204(b)(6)(B) of the 
 Andean Trade Preference Act (19 
 U.S.C. 3203(b)(6)(B)).
 (iv) Annual aggregation.--
 (I) Initial applicable 1-year 
 period.--In the initial 
 applicable 1-year period, the 
 requirements under clause (i) 
 relating to applicable 
 percentage may also be met for 
 articles of a producer or an 
 entity controlling production 
 that enter during the initial 
 applicable 1-year period by 
 aggregating--
 (aa) the cost or 
 value of materials 
 under subclause (I) of 
 clause (i), and
 (bb) the direct costs 
 of processing 
 operations under 
 subclause (II) of 
 clause (i),
 of all apparel articles of that 
 producer or entity controlling 
 production that are wholly 
 assembled, or are knit-to-
 shape, in Haiti and are entered 
 during the initial applicable 
 1-year period.
 (II) Other 1-year periods.--
 In any 1-year period after the 
 initial applicable 1-year 
 period, the requirements under 
 clause (i) relating to 
 applicable percentage may also 
 be met for articles of a 
 producer or an entity 
 controlling production that 
 enter during the 1-year period 
 by aggregating--
 (aa) the cost or 
 value of materials 
 under subclause (I) of 
 clause (i), and
 (bb) the direct costs 
 of processing 
 operations under 
 subclause (II) of 
 clause (i),
 of all apparel articles of that 
 producer or entity controlling 
 production that are wholly 
 assembled, or are knit-to-
 shape, in Haiti and are entered 
 during the preceding 1-year 
 period.
 (III) Deductions.--In 
 calculating cost or value under 
 subclause (I)(aa) or (II)(aa), 
 there shall be deducted the 
 cost or value of--
 (aa) any foreign 
 materials that are used 
 in the production of 
 the apparel articles in 
 Haiti; and
 (bb) any foreign 
 materials that are used 
 in the production of 
 the materials described 
 in subclause (I)(aa) or 
 (II)(aa) (as the case 
 may be).
 (IV) Inclusion in calculation 
 of other articles receiving 
 preferential treatment.--
 Entries of apparel articles 
 that receive preferential 
 treatment under any provision 
 of law other than this 
 subparagraph or are subject to 
 the ``General'' column 1 rate 
 of duty under the HTS are not 
 included in the annual 
 aggregation under subclause (I) 
 or (II) unless the producer or 
 entity controlling production 
 elects, at the time the annual 
 aggregation calculation is 
 made, to include such entries 
 in such aggregation.
 (v) Definitions.--In this paragraph:
 [(I) Applicable percentage.--
 The term ``applicable 
 percentage'' means--
 [(aa) 50 percent or 
 more during the initial 
 applicable 1-year 
 period and the 
 succeeding 8 1-year 
 periods;
 [(bb) 55 percent or 
 more during the 1-year 
 period beginning on 
 December 20, 2015, and 
 the 1-year period 
 beginning on December 
 20, 2016; and
 [(cc) 60 percent or 
 more during the 1-year 
 period beginning on 
 December 20, 2017, and 
 each of the 7 
 succeeding 1-year 
 periods.]
 (I) Applicable percentage.--
 The term ``applicable 
 percentage'' means 60 percent 
 or more on and after December 
 20, 2017.
 (II) Foreign material.--The 
 term ``foreign material'' means 
 a material produced in a 
 country other than Haiti or any 
 country described in clause 
 (iii).
 (vi) Development of procedure to 
 ensure compliance.--
 (I) In general.--U.S. Customs 
 and Border Protection of the 
 Department of Homeland Security 
 shall develop and implement 
 methods and procedures to 
 ensure ongoing compliance with 
 the requirements set forth in 
 clauses (i) and (iv).
 (II) Noncompliance.--If U.S. 
 Customs and Border Protection 
 finds that a producer or an 
 entity controlling production 
 has not satisfied such 
 requirements in the initial 
 applicable 1-year period or any 
 1-year period thereafter, 
 either for individual entries 
 entered pursuant to clause (i) 
 or for entries entered in 
 aggregate pursuant to clause 
 (iv), then apparel articles 
 described in clause (i) of that 
 producer or entity shall be 
 ineligible for preferential 
 treatment under paragraph (1) 
 during any succeeding 1-year 
 period until--
 (aa) the cost or 
 value of materials 
 under subclause (I) of 
 clause (i), plus
 (bb) the direct costs 
 of processing 
 operations under 
 subclause (II) of 
 clause (i),
 of that producer or entity 
 controlling production, is not 
 less than the applicable 
 percentage under clause (v)(I), 
 plus 10 percent, of the 
 aggregate declared customs 
 value of all apparel articles 
 of that producer or entity 
 controlling production that are 
 wholly assembled, or are knit-
 to-shape, in Haiti and are 
 entered during the preceding 1-
 year period.
 (III) Retroactive application 
 of duty-free treatment.--If--
 (aa) a producer or an 
 entity controlling 
 production is 
 ineligible for 
 preferential treatment 
 under subparagraph (A) 
 in the initial 
 applicable 1-year 
 period or any 1-year 
 period thereafter 
 because that producer 
 or entity controlling 
 production did not 
 satisfy the 
 requirements of clause 
 (i) or (iv), and
 (bb) that producer or 
 entity controlling 
 production satisfies 
 the requirements of 
 subclause (II) of this 
 clause in that 1-year 
 period,
 then, notwithstanding section 
 514 of the Tariff Act of 1930 
 (19 U.S.C. 1514) or any other 
 provision of law, upon proper 
 request filed with U.S. Customs 
 and Border Protection before 
 the 90th day after U.S. Customs 
 and Border Protection 
 determines that item (bb) 
 applies, the entry of any 
 articles--
 
 (AA) that was made 
 during that 1-year 
 period, and
 (BB) with respect to 
 which there would have 
 been preferential 
 treatment under 
 subparagraph (A) if the 
 producer or entity 
 controlling production 
 had satisfied the 
 requirements in clause 
 (i) or (iv) (as the 
 case may be),
 shall be liquidated or 
 reliquidated as though such 
 preferential treatment under 
 subparagraph (A) applied to 
 such entry.
 (vii) Fabrics not available in 
 commercial quantities.--
 (I) In general.--For purposes 
 of determining the applicable 
 percentage under clause (i) or 
 (iv), there may be included in 
 that percentage--
 (aa) the cost of 
 fabrics or yarns to the 
 extent that apparel 
 articles of such 
 fabrics or yarns would 
 be eligible for 
 preferential treatment, 
 without regard to the 
 source of the fabrics 
 or yarns, under Annex 
 4-B of the USMCA; and
 (bb) the cost of 
 fabrics or yarns that 
 are designated as not 
 being available in 
 commercial quantities 
 for purposes of--
 (AA) section 
 213(b)(2)(A)(v) of this 
 Act,
 (BB) section 
 112(b)(5) of the 
 African Growth and 
 Opportunity Act,
 (CC) section 
 204(b)(3)(B)(i)(III) or 
 (ii) of the Andean 
 Trade Preference Act, 
 or
 (DD) any other 
 provision, relating to 
 determining whether a 
 textile or apparel 
 article is an 
 originating good 
 eligible for 
 preferential treatment, 
 of a law that 
 implements a free trade 
 agreement that enters 
 into force with respect 
 to the United States,
 without regard to the source of 
 the fabrics or yarns.
 (II) Removal of designation 
 of fabrics or yarns not 
 available in commercial 
 quantities.--If the President 
 determines that--
 (aa) any fabric or 
 yarn described in 
 subclause (I)(aa) was 
 determined to be 
 eligible for 
 preferential treatment, 
 or
 (bb) any fabric or 
 yarn described in 
 subclause (I)(bb) was 
 designated as not being 
 available in commercial 
 quantities,
 on the basis of fraud, the 
 President is authorized to 
 remove the eligibility or 
 designation (as the case may 
 be) of that fabric or yarn with 
 respect to articles entered 
 after such removal.
 [(C) Quantitative limitations.--The 
 preferential treatment described in 
 subparagraph (A) shall be extended, during each 
 of the 1-year periods set forth in the 
 following table, to not more than the 
 corresponding percentage of the aggregate 
 square meter equivalents of all apparel 
 articles imported into the United States in the 
 most recent 12-month period for which data are 
 available:

 
 
 
[During: the corresponding percentage is:
the initial applicable 1-year period............... 1 percent.
each of the 16 succeeding 1-year periods........... 1.25 percent.
 

 No preferential treatment shall be provided 
 under subparagraph (A) after December 19, 
 2025.]
 (C) Quantitative limitations.--The 
 preferential treatment described in 
 subparagraph (A) shall be extended, during each 
 period after the initial applicable 1-year 
 period, to not more than 1.25 percent of the 
 aggregate square meter equivalents of all 
 apparel articles imported into the United 
 States in the most recent 12-month period for 
 which data are available.
 (D) Other preferential treatment not affected 
 by quantitative limitations.--Any apparel 
 article that qualifies for preferential 
 treatment under paragraph (2), (3), (4), or (5) 
 or any other provision of this title shall not 
 be subject to, or included in the calculation 
 of, the quantitative limitations under 
 subparagraph (C).
 (2) Special rule for woven articles and certain knit 
 articles.--
 (A) Special rule for articles of chapter 62 
 of the hts.--
 (i) General rule.--Any apparel 
 article classifiable under chapter 62 
 of the HTS that is wholly assembled, or 
 knit-to-shape, in Haiti from any 
 combination of fabrics, fabric 
 components, components knit-to-shape, 
 or yarns and is imported directly from 
 Haiti or the Dominican Republic shall 
 enter the United States free of duty, 
 subject to clauses (ii) and (iii), 
 without regard to the source of the 
 fabric, fabric components, components 
 knit-to-shape, or yarns from which the 
 article is made.
 (ii) Limitation.--Except as provided 
 in paragraph (2A), the preferential 
 treatment described in clause (i) shall 
 be extended, in the 1-year period 
 beginning October 1, 2008, and [in each 
 of the 16 succeeding 1-year periods] in 
 any of the succeeding 1-year periods, 
 to not more than 70,000,000 square 
 meter equivalents of apparel articles 
 described in such clause.
 (iii) Other preferential treatment 
 not affected by quantitative 
 limitation.--Any apparel article that 
 qualifies for preferential treatment 
 under paragraph (1), (3), (4), or (5) 
 or subparagraph (B) of this paragraph 
 or any other provision of this title 
 shall not be subject to, or included in 
 the calculation of, the quantitative 
 limitation under clause (ii).
 (B) Special rule for certain articles of 
 chapter 61 of the hts.--
 (i) General rule.--Any apparel 
 article classifiable under chapter 61 
 of the HTS that is wholly assembled, or 
 knit-to-shape, in Haiti from any 
 combination of fabrics, fabric 
 components, components knit-to-shape, 
 or yarns and is imported directly from 
 Haiti or the Dominican Republic shall 
 enter the United States free of duty, 
 subject to clauses (ii), (iii), and 
 (iv), without regard to the source of 
 the fabric, fabric components, 
 components knit-to-shape, or yarns from 
 which the article is made.
 (ii) Exclusions.--The preferential 
 treatment described in clause (i) shall 
 not apply to the following:
 (I) The following apparel 
 articles of cotton, for men or 
 boys, that are classifiable 
 under subheading 6109.10.00 of 
 the HTS:
 (aa) All white T-
 shirts, with short 
 hemmed sleeves and 
 hemmed bottom, with 
 crew or round neckline 
 or with V-neck and with 
 a mitered seam at the 
 center of the V, and 
 without pockets, trim, 
 or embroidery.
 (bb) All white 
 singlets, without 
 pockets, trim, or 
 embroidery.
 (cc) Other T-shirts, 
 but not including 
 thermal undershirts.
 (II) T-shirts for men or boys 
 that are classifiable under 
 subheading 6109.90.10.
 (III) The following apparel 
 articles of cotton, for men or 
 boys, that are classifiable 
 under subheading 6110.20.20 of 
 the HTS:
 (aa) Sweatshirts.
 (bb) Pullovers, other 
 than sweaters, vests, 
 or garments imported as 
 part of playsuits.
 (IV) Sweatshirts for men or 
 boys, of man-made fibers and 
 containing less than 65 percent 
 by weight of man-made fibers, 
 that are classifiable under 
 subheading 6110.30.30 of the 
 HTS.
 (iii) Limitation.--Except as provided 
 in paragraph (2A), the preferential 
 treatment described in clause (i) shall 
 be extended, in the 1-year period 
 beginning October 1, 2008, and [in each 
 of the 16 succeeding 1-year periods] in 
 any of the succeeding 1-year periods, 
 to not more than 70,000,000 square 
 meter equivalents of apparel articles 
 described in such clause.
 (iv) Other preferential treatment not 
 affected by quantitative limitation.--
 Any apparel article that qualifies for 
 preferential treatment under paragraph 
 (1), (3), (4), or (5) or subparagraph 
 (A) of this paragraph or any other 
 provision of this title shall not be 
 subject to, or included in the 
 calculation of, the quantitative 
 limitation under clause (iii).
 (2A) Special rule for certain woven articles and 
 certain knit articles entered during fiscal year 2010 
 and succeeding 1-year periods.--
 (A) In general.--Except as provided in 
 subparagraphs (B) and (C) and subject to 
 subparagraph (D), if 52,000,000 square meter 
 equivalents of apparel articles described in 
 paragraph (2)(A)(i) or (2)(B)(i) enter the 
 United States during the 1-year period 
 beginning October 1, 2009, or any of the 
 succeeding 1-year periods, the President shall 
 extend the preferential treatment described in 
 paragraph (2)(A)(i) or (2)(B)(i) (as the case 
 may be) to not more than 200,000,000 square 
 meter equivalents of apparel articles described 
 in paragraph (2)(A)(i) or (2)(B)(i) (as the 
 case may be) during that 1-year period, and 
 shall publish notice of the extension in the 
 Federal Register.
 (B) Exception for certain woven articles.--
 (i) In general.--In the case of 
 apparel articles described in clause 
 (ii), subparagraph (A) shall be applied 
 by substituting ``70,000,000'' for 
 ``200,000,000''.
 (ii) Apparel articles described.--
 Apparel articles described in this 
 clause are apparel articles described 
 in paragraph (2)(A)(i) that are the 
 following:
 (I) Category 347.--Apparel 
 articles in category 347 that 
 fall within the following 
 statistical reporting numbers 
 of the HTS (as in effect on the 
 day before the date of the 
 enactment of this paragraph):

6203.19.1020.......................... 6203.42.4011................. 6203.42.4061
 6203.19.9020......................... 6203.42.4016................. 6203.49.8020
 6203.22.3020......................... 6203.42.4026................. 6210.40.9033
 6203.22.3030......................... 6203.42.4036................. 6211.20.1520
 6203.42.4003......................... 6203.42.4046................. 6211.20.3810
 6203.42.4006......................... 6203.42.4051................. 6211.32.0040
 

 (II) Category 348.--Apparel 
 articles in category 348 that 
 fall within the following 
 statistical reporting numbers 
 of the HTS (as in effect on the 
 day before the date of the 
 enactment of this paragraph):

6204.12.0030.......................... 6204.62.4011................. 6204.69.9010
 6204.19.8030......................... 6204.62.4021................ 6210.50.9060
 6204.22.3040......................... 6204.62.4031................ 6211.20.1550
 6204.22.3050......................... 6204.62.4041................ 6211.20.6810
 6204.29.4034......................... 6204.62.4051................ 6211.42.0030
 6204.62.3000......................... 6204.62.4056................ 6217.90.9050
 6204.62.4003......................... 6204.62.4066................ .........................................
 6204.62.4006......................... 6204.69.6010................. .........................................
 

 (III) Category 647.--Apparel 
 articles in category 647 that 
 fall within the following 
 statistical reporting numbers 
 of the HTS (as in effect on the 
 day before the date of the 
 enactment of this paragraph):

6203.23.0060.......................... 6203.43.4020................. 6203.49.8030
 6203.23.0070......................... 6203.43.4030................ 6210.40.5031
 6203.29.2030......................... 6203.43.4040................ 6210.40.5039
 6203.29.2035......................... 6203.49.1500................ 6211.20.1525
 6203.43.2500......................... 6203.49.2015................ 6211.20.3820
 6203.43.3510......................... 6203.49.2030................ 6211.33.0030
 6203.43.3590......................... 6203.49.2045................ .........................................
 6203.43.4010......................... 6203.49.2060................. .........................................
 

 (IV) Category 648.--Apparel 
 articles in category 648 that 
 fall within the following 
 statistical reporting numbers 
 of the HTS (as in effect on the 
 day before the date of the 
 enactment of this paragraph):

6204.23.0040.......................... 6204.63.3510................. 6204.69.6030
 6204.23.0045......................... 6204.63.3530................ 6204.69.9030
 6204.29.2020......................... 6204.63.3532................. 6210.50.5031
 6204.29.2025......................... 6204.63.3540................ 6210.50.5039
 6204.29.4038......................... 6204.69.2510................. 6211.20.1555
 6204.63.2000......................... 6204.69.2530................ 6211.20.6820
 6204.63.3010......................... 6204.69.2540................ 6211.43.0040
 6204.63.3090......................... 6204.69.2560................ 6217.90.9060
 

 (C) Exception for certain knit articles.--
 (i) In general.--In the case of 
 apparel articles described in clause 
 (ii), subparagraph (A) shall be applied 
 by substituting ``85,000,000'' for 
 ``200,000,000''.
 (ii) Apparel articles described.--
 Apparel articles described in this 
 clause are apparel articles described 
 in paragraph (2)(B)(i) that fall within 
 the following statistical reporting 
 numbers of the HTS (as in effect on the 
 day before the date of the enactment of 
 this paragraph), other than shirts with 
 plackets and pointed collars:

6105.10.0010.......................... 6109.10.0040................. 6110.30.3053
 6109.10.0018......................... 6109.10.0045................. 6110.30.3059
 6109.10.0027......................... 6110.20.2079................. .........................................
 

 (D) Verification with respect to 
 transshipment for certain apparel articles.--
 (i) In general.--Not later than April 
 1, July 1, October 1, and January 1 of 
 each year, the Commissioner responsible 
 for United States Customs and Border 
 Protection shall verify that apparel 
 articles imported into the United 
 States under this paragraph are not 
 being unlawfully transshipped (within 
 the meaning of subsection (f)) into the 
 United States.
 (ii) Report to president.--If the 
 Commissioner determines pursuant to 
 clause (i) that apparel articles 
 imported into the United States under 
 this paragraph are being unlawfully 
 transshipped into the United States, 
 the Commissioner shall report that 
 determination to the President.
 (iii) Authority to reduce 
 quantitative limitation.--If, in any 1-
 year period with respect to which the 
 President extends preferential 
 treatment as described in this 
 paragraph, the Commissioner reports to 
 the President pursuant to clause (ii) 
 regarding unlawful transshipments, the 
 President--
 (I) may modify the 
 quantitative limitation under 
 this paragraph as the President 
 considers appropriate to 
 account for such 
 transshipments; and
 (II) if the President 
 modifies the limitation under 
 subclause (I), shall publish 
 notice of the modification in 
 the Federal Register.
 (E) Category defined.--In this paragraph, the 
 term ``category'' means 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 the day before the date of the 
 enactment of this paragraph).
 (3) Apparel and other articles subject to certain 
 assembly rules.--
 (A) Brassieres.--Any apparel article 
 classifiable under subheading 6212.10 of the 
 HTS that is wholly assembled, or knit-to-shape, 
 in Haiti from any combination of fabrics, 
 fabric components, components knit-to-shape, or 
 yarns and is imported directly from Haiti or 
 the Dominican Republic shall enter the United 
 States free of duty, without regard to the 
 source of the fabric, fabric components, 
 components knit-to-shape, or yarns from which 
 the article is made.
 (B) Other apparel articles.--Any of the 
 following apparel articles that is wholly 
 assembled, or knit-to-shape, in Haiti from any 
 combination of fabrics, fabric components, 
 components knit-to-shape, or yarns and is 
 imported directly from Haiti or the Dominican 
 Republic shall enter the United States free of 
 duty, without regard to the source of the 
 fabric, fabric components, components knit-to-
 shape, or yarns from which the article is made:
 (i) Any apparel article that is of a 
 type listed in chapter rule 3, 4, or 5 
 for chapter 61 of the HTS (as such 
 chapter rules are contained in section 
 A of the Annex to Proclamation 8213 of 
 the President of December 20, 2007) as 
 being excluded from the scope of such 
 chapter rule, when such chapter rule is 
 applied to determine whether an apparel 
 article is an originating good for 
 purposes of general note 29(n) to the 
 HTS, except that, for purposes of this 
 clause, reference in such chapter rules 
 to ``6104.12.00'' shall be deemed to be 
 a reference to ``6104.19.60''.
 (ii)(I) Subject to subclause (II), 
 any apparel article that is of a type 
 listed in chapter rule 3(a), 4(a), or 
 5(a) for chapter 62 of the HTS, as such 
 chapter rules are contained in 
 paragraph 9 of section A of the Annex 
 to Proclamation 8213 of the President 
 of December 20, 2007.
 (II) Subclause (I) shall not include 
 any apparel article to which 
 subparagraph (A) of this paragraph 
 applies.
 (C) Luggage and similar items.--Any article 
 classifiable under subheading 4202.12, 4202.22, 
 4202.32 or 4202.92 of the HTS that is wholly 
 assembled in Haiti and is imported directly 
 from Haiti or the Dominican Republic shall 
 enter the United States free of duty, without 
 regard to the source of the fabric, components, 
 or materials from which the article is made.
 (D) Headgear.--Any article classifiable under 
 heading 6501, 6502, or 6504 of the HTS, or 
 under subheading 6505.90 of the HTS, that is 
 wholly assembled, knit-to-shape, or formed in 
 Haiti from any combination of fabrics, fabric 
 components, components knit-to-shape, or yarns 
 and is imported directly from Haiti or the 
 Dominican Republic shall enter the United 
 States free of duty, without regard to the 
 source of the fabric, fabric components, 
 components knit-to-shape, or yarns from which 
 the article is made.
 (E) Certain sleepwear.--Any of the following 
 apparel articles that is wholly assembled, or 
 knit-to-shape, in Haiti from any combination of 
 fabrics, fabric components, components knit-to-
 shape, or yarns and is imported directly from 
 Haiti or the Dominican Republic shall enter the 
 United States free of duty, without regard to 
 the source of the fabric, fabric components, 
 components knit-to-shape, or yarns from which 
 the article is made:
 (i) Pajama bottoms and other 
 sleepwear for women and girls, of 
 cotton, that are classifiable under 
 subheading 6208.91.30, or of man-made 
 fibers, that are classifiable under 
 subheading 6208.92.00.
 (ii) Pajama bottoms and other 
 sleepwear for girls, of other textile 
 materials, that are classifiable under 
 subheading 6208.99.20.
 (F) Certain other apparel articles.--
 (i) In general.--Any of the apparel 
 articles described in clause (ii) that 
 is wholly assembled, or knit-to-shape, 
 in Haiti from any combination of 
 fabrics, fabric components, components 
 knit-to-shape, or yarns and is imported 
 directly from Haiti or the Dominican 
 Republic shall enter the United States 
 free of duty, without regard to the 
 source of the fabric, fabric 
 components, components knit-to-shape, 
 or yarns from which the article is 
 made.
 (ii) Articles described.--Apparel 
 articles described in this clause are 
 apparel articles in the following 
 category numbers that fall within the 
 following statistical reporting numbers 
 of the HTS (as in effect on the day 
 before the date of the enactment of 
 this subparagraph):

 
 
----------------------------------------------------------------------------------------------------------------
Category Number HTS Statistical
 Reporting Number
----------------------------------------------------------------------------------------------------------------
334 6101.90.9010
 6112.11.0010
 6103.22.0010
 6113.00.9015
----------------------------------------------------------------------------------------------------------------
335 6104.22.0010
 6104.29.2010
 6112.11.0020
----------------------------------------------------------------------------------------------------------------
336 6104.49.9010
----------------------------------------------------------------------------------------------------------------
338 6103.22.0050
 6105.90.8010
 6112.11.0030
----------------------------------------------------------------------------------------------------------------
339 6104.22.0060
 6104.29.2049
 6106.90.2510
 6106.90.3010
 6110.20.1031
 6110.20.1033
 6112.11.0040
----------------------------------------------------------------------------------------------------------------
342 6104.22.0030
 6104.29.2022
 6104.52.0010
 6104.52.0020
 6104.59.8010
----------------------------------------------------------------------------------------------------------------
350 6107.91.0040
 6107.91.0090
----------------------------------------------------------------------------------------------------------------
351 6107.21.0010
 6107.21.0020
 6107.91.0030
 6108.31.0010
 6108.31.0020
----------------------------------------------------------------------------------------------------------------
433 6103.23.0007
 6103.29.0520
 6103.31.0000
 6103.33.1000
 6103.39.8020
----------------------------------------------------------------------------------------------------------------
434 6101.30.1500
 6101.90.0500
 6101.90.9020
 6103.23.0005
 6103.29.0510
----------------------------------------------------------------------------------------------------------------
435 6102.30.1000
 6102.90.9010
 6104.23.0010
 6104.29.0510
 6104.29.2012
 6104.33.1000
 6104.39.2020
----------------------------------------------------------------------------------------------------------------
438 6103.23.0025
 6103.29.0550
 6104.23.0020
 6104.29.0560
 6104.29.2051
 6105.90.1000
 6105.90.8020
 6106.20.1020
 6106.90.1010
 6106.90.1020
 6106.90.2520
 6106.90.3020
 6110.11.0070
 6110.12.2070
 6110.12.2080
 6110.19.0070
 6110.19.0080
 6110.30.1550
 6110.30.1560
----------------------------------------------------------------------------------------------------------------
633 6103.23.0037
 6103.29.1015
 6103.33.2000
 6103.39.1000
 6103.39.8030
----------------------------------------------------------------------------------------------------------------
634 6101.30.1000
 6101.90.9030
 6103.23.0036
 6103.29.1010
 6112.12.0010
 6112.19.1010
 6112.20.1010
 6112.20.1030
 6113.00.9025
----------------------------------------------------------------------------------------------------------------
635 6102.30.0500
 6102.90.9015
 6104.23.0026
 6104.29.1010
 6104.29.2014
 6104.39.2030
 6112.12.0020
 6112.19.1020
 6112.20.1020
 6112.20.1040
 6113.00.9030
----------------------------------------------------------------------------------------------------------------
636 6104.49.9030
 6104.44.2020
----------------------------------------------------------------------------------------------------------------
638 6103.23.0075
 6103.29.1050
 6105.90.8030
 6110.30.1050
 6110.30.2051
 6110.30.2053
 6112.12.0030
 6112.19.1030
----------------------------------------------------------------------------------------------------------------
639 6104.23.0036
 6104.29.1050
 6104.29.2055
 6106.90.2530
 6106.90.3030
 6110.30.1060
 6110.30.2061
 6110.30.2063
 6112.12.0040
 6112.19.1040
----------------------------------------------------------------------------------------------------------------
651 6107.22.0010
 6107.22.0015
 6107.22.0025
 6107.99.1030
 6108.32.0015
----------------------------------------------------------------------------------------------------------------

 (iii) Category defined.--In this 
 subparagraph, the term ``category'' has 
 the meaning given that term in 
 paragraph (2A)(E) of this subsection.
 (G) Made-up textile articles.--
 (i) In general.--Any of the made-up 
 textile articles described in clauses 
 (ii) and (iii) that is wholly 
 assembled, or knit-to-shape, in Haiti 
 from any combination of fabrics, fabric 
 components, components knit-to-shape, 
 or yarns and is imported directly from 
 Haiti or the Dominican Republic shall 
 enter the United States free of duty, 
 without regard to the source of the 
 fabric, fabric components, components 
 knit-to-shape, or yarns from which the 
 article is made.
 (ii) Articles described.--Made-up 
 textile articles described in this 
 clause are articles in the following 
 category numbers that fall within the 
 following statistical reporting numbers 
 of the HTS (as in effect on the day 
 before the date of the enactment of 
 this subparagraph):

 
 
----------------------------------------------------------------------------------------------------------------
Category Number HTS Statistical
 Reporting Number
----------------------------------------------------------------------------------------------------------------
363 6302.60.0020
 6302.91.0015
 6302.91.0035
 6307.90.8940
----------------------------------------------------------------------------------------------------------------
369 6304.91.0020
 6304.92.0000
 6302.60.0010
 6302.60.0030
 6302.91.0005
 6302.91.0050
 6307.90.8910
 6307.90.8945
 5701.90.2020
 5702.39.2010
 5702.50.5600
 5702.99.0500
 5702.99.1500
 5705.00.2020
 5807.10.0510
 5807.90.0510
 6307.90.3010
 6301.30.0010
 6305.20.0000
 6307.10.1020
 6307.10.1090
 6406.10.7700
 9404.90.1000
 9404.90.9505
 6301.30.0020
 6302.91.0045
----------------------------------------------------------------------------------------------------------------
465 5701.10.9000
 5702.50.2000
 5702.50.4000
 5702.91.3000
 5702.91.4000
 5703.10.2000
 5703.10.8000
 5704.10.0010
 5705.00.2005
 5705.00.2015
 5702.31.1000
 5702.31.2000
----------------------------------------------------------------------------------------------------------------
469 6304.19.3040
 6304.91.0050
 6304.99.1500
 6304.99.6010
 5601.29.0020
 6302.39.0010
 6406.10.9020
----------------------------------------------------------------------------------------------------------------
665 5701.90.1030
 5701.90.2030
 5702.32.1000
 5702.32.2000
 5702.42.2090
 5702.50.5200
 5702.92.1000
 5702.92.9000
 5703.20.1000
 5703.30.2000
 5703.30.8030
 5703.30.8080
 5704.10.0090
 5705.00.2030
 5703.20.2010
 5703.20.2090
----------------------------------------------------------------------------------------------------------------
666 6304.11.2000
 6304.91.0040
 6304.93.0000
 6304.99.6020
 6301.40.0010
 6301.40.0020
 6301.90.0010
----------------------------------------------------------------------------------------------------------------
669 5601.10.2000
 5601.22.0090
 5807.10.0520
 5807.90.0520
 6307.90.3020
 6305.32.0010
 6305.32.0020
 6305.32.0050
 6305.32.0060
 6305.39.0000
 6406.10.9040
 6308.00.0020
----------------------------------------------------------------------------------------------------------------
899 6304.11.3000
 6304.19.3060
 6304.91.0070
 6304.99.3500
 6304.99.6040
 5601.29.0090
 6301.90.0030
 6305.90.0000
 6406.10.9060
----------------------------------------------------------------------------------------------------------------
900 5601.29.0010
 5701.90.2010
 6301.90.0020
----------------------------------------------------------------------------------------------------------------

 (iii) Other articles described.--
 Made-up textile articles described in 
 this clause are articles that fall 
 within statistical reporting number 
 6406.10.9090 of the HTS (as in effect 
 on the day before the date of the 
 enactment of this subparagraph).
 (iv) Category defined.--In this 
 subparagraph, the term ``category'' has 
 the meaning given that term in 
 paragraph (2A)(E) of this subsection.
 (4) Earned import allowance rule.--
 (A) In general.--Apparel articles wholly 
 assembled, or knit-to-shape, in Haiti from any 
 combination of fabrics, fabric components, 
 components knit-to-shape, or yarns and imported 
 directly from Haiti or the Dominican Republic 
 shall enter the United States free of duty, 
 without regard to the source of the fabric, 
 fabric components, components knit-to-shape, or 
 yarns from which the articles are made, if such 
 apparel articles are accompanied by an earned 
 import allowance certificate that reflects the 
 amount of credits equal to the total square 
 meter equivalents of such apparel articles, in 
 accordance with the program established under 
 subparagraph (B). For purposes of determining 
 the quantity of square meter equivalents under 
 this subparagraph, the conversion factors 
 listed in ``Correlation: U.S. Textile and 
 Apparel Industry Category System with the 
 Harmonized Tariff Schedule of the United States 
 of America, 2008'', or its successor 
 publications, of the United States Department 
 of Commerce, shall apply.
 (B) Earned import allowance program.--
 (i) Establishment.--The Secretary of 
 Commerce shall establish a program to 
 provide earned import allowance 
 certificates to any producer or entity 
 controlling production for purposes of 
 subparagraph (A), based on the elements 
 described in clause (ii).
 (ii) Elements.--The elements referred 
 to in clause (i) are the following:
 (I) One credit shall be 
 issued to a producer or an 
 entity controlling production 
 for every two square meter 
 equivalents of qualifying woven 
 fabric or qualifying knit 
 fabric that the producer or 
 entity controlling production 
 can demonstrate that it 
 purchased for the manufacture 
 in Haiti of articles like or 
 similar to any article eligible 
 for preferential treatment 
 under subparagraph (A). The 
 Secretary of Commerce shall, if 
 requested by a producer or 
 entity controlling production, 
 create and maintain an account 
 for such producer or entity 
 controlling production, into 
 which such credits shall be 
 deposited.
 (II) Such producer or entity 
 controlling production may 
 redeem credits issued under 
 subclause (I) for earned import 
 allowance certificates 
 reflecting such number of 
 earned credits as the producer 
 or entity may request and has 
 available.
 (III) The Secretary of 
 Commerce may require any 
 textile mill or other entity 
 located in the United States 
 that exports to Haiti 
 qualifying woven fabric or 
 qualifying knit fabric to 
 submit, upon such export or 
 upon request, documentation, 
 such as a Shipper's Export 
 Declaration, to the Secretary 
 of Commerce--
 (aa) verifying that 
 the qualifying woven 
 fabric or qualifying 
 knit fabric was 
 exported to a producer 
 in Haiti or to an 
 entity controlling 
 production; and
 (bb) identifying such 
 producer or entity 
 controlling production, 
 and the quantity and 
 description of 
 qualifying woven fabric 
 or qualifying knit 
 fabric exported to such 
 producer or entity 
 controlling production.
 (IV) The Secretary of 
 Commerce may require that a 
 producer or entity controlling 
 production submit documentation 
 to verify purchases of 
 qualifying woven fabric or 
 qualifying knit fabric.
 (V) The Secretary of Commerce 
 may make available to each 
 person or entity identified in 
 documentation submitted under 
 subclause (III) or (IV) 
 information contained in such 
 documentation that relates to 
 the purchase of qualifying 
 woven fabric or qualifying knit 
 fabric involving such person or 
 entity.
 (VI) The program under this 
 subparagraph shall be 
 established so as to allow, to 
 the extent feasible, the 
 submission, storage, retrieval, 
 and disclosure of information 
 in electronic format, including 
 information with respect to the 
 earned import allowance 
 certificates required under 
 subparagraph (A)(i).
 (VII) The Secretary of 
 Commerce may reconcile 
 discrepancies in information 
 provided under subclause (III) 
 or (IV) and verify the accuracy 
 of such information.
 (VIII) The Secretary of 
 Commerce shall establish 
 procedures to carry out the 
 program under this subparagraph 
 and may establish additional 
 requirements to carry out this 
 subparagraph. Such additional 
 requirements may include--
 (aa) submissions by 
 textile mills or other 
 entities in the United 
 States documenting 
 exports of yarns wholly 
 formed in the United 
 States to countries 
 described in paragraph 
 (1)(B)(iii) for the 
 manufacture of 
 qualifying knit fabric; 
 and
 (bb) procedures 
 imposed on producers or 
 entities controlling 
 production to allow the 
 Secretary of Commerce 
 to obtain and verify 
 information relating to 
 the production of 
 qualifying knit fabric.
 (iii) Qualifying woven fabric 
 defined.--For purposes of this 
 subparagraph, the term ``qualifying 
 woven fabric'' means fabric wholly 
 formed in the United States from yarns 
 wholly formed in the United States, 
 except that--
 (I) fabric otherwise eligible 
 as qualifying woven fabric 
 shall not be ineligible as 
 qualifying woven fabric because 
 the fabric contains nylon 
 filament yarn to which section 
 213(b)(2)(A)(vii)(IV) applies;
 (II) fabric that would 
 otherwise be ineligible as 
 qualifying woven fabric because 
 the fabric contains yarns not 
 wholly formed in the United 
 States shall not be ineligible 
 as qualifying woven fabric if 
 the total weight of all such 
 yarns is not more than 10 
 percent of the total weight of 
 the fabric; and
 (III) fabric otherwise 
 eligible as qualifying woven 
 fabric shall not be ineligible 
 as qualifying fabric because 
 the fabric contains yarns 
 covered by clause (i) or (ii) 
 of paragraph (5)(A).
 (iv) Qualifying knit fabric 
 defined.--For purposes of this 
 subparagraph, the term ``qualifying 
 knit fabric'' means fabric or knit-to-
 shape components wholly formed or knit-
 to-shape in any country or any 
 combination of countries described in 
 paragraph (1)(B)(iii), from yarns 
 wholly formed in the United States, 
 except that--
 (I) fabric or knit-to-shape 
 components otherwise eligible 
 as qualifying knit fabric shall 
 not be ineligible as qualifying 
 knit fabric because the fabric 
 or knit-to-shape components 
 contain nylon filament yarn to 
 which section 
 213(b)(2)(A)(vii)(IV) applies;
 (II) fabric or knit-to-shape 
 components that would otherwise 
 be ineligible as qualifying 
 knit fabric because the fabric 
 or knit-to-shape components 
 contain yarns not wholly formed 
 in the United States shall not 
 be ineligible as qualifying 
 knit fabric if the total weight 
 of all such yarns is not more 
 than 10 percent of the total 
 weight of the fabric or knit-
 to-shape components; and
 (III) fabric or knit-to-shape 
 components otherwise eligible 
 as qualifying knit fabric shall 
 not be ineligible as qualifying 
 knit fabric because the fabric 
 or knit-to-shape components 
 contain yarns covered by clause 
 (i) or (ii) of paragraph 
 (5)(A).
 (C) Enforcement provisions.--
 (i) Fraudulent claims of 
 preference.--Any person who makes a 
 false claim for preference under the 
 program established under subparagraph 
 (B) shall be subject to any applicable 
 civil or criminal penalty that may be 
 imposed under the customs laws of the 
 United States or under title 18, United 
 States Code.
 (ii) Penalties for other fraudulent 
 information.--The Secretary of Commerce 
 may establish and impose penalties for 
 the submission to the Secretary of 
 Commerce of fraudulent information 
 under the program established under 
 subparagraph (B), other than a claim 
 described in clause (i).
 (5) Short supply provision.--
 (A) In general.--Any apparel article that is 
 wholly assembled, or knit-to-shape, in Haiti 
 from any combination of fabrics, fabric 
 components, components knit-to-shape, or yarns 
 and is imported directly from Haiti or the 
 Dominican Republic shall enter the United 
 States free of duty, without regard to the 
 source of the fabrics, fabric components, 
 components knit-to-shape, or yarns from which 
 the article is made, if the fabrics, fabric 
 components, components knit-to-shape, or yarns 
 comprising the component that determines the 
 tariff classification of the article are of any 
 of the following:
 (i) Fabrics or yarns, to the extent 
 that apparel articles of such fabrics 
 or yarns would be eligible for 
 preferential treatment, without regard 
 to the source of the fabrics or yarns, 
 under Annex 4-B of the USMCA.
 (ii) Fabrics or yarns, to the extent 
 that such fabrics or yarns are 
 designated as not being available in 
 commercial quantities for purposes of--
 (I) section 213(b)(2)(A)(v) 
 of this Act;
 (II) section 112(b)(5) of the 
 African Growth and Opportunity 
 Act;
 (III) clause (i)(III) or (ii) 
 of section 204(b)(3)(B) of the 
 Andean Trade Preference Act; or
 (IV) any other provision, 
 relating to determining whether 
 a textile or apparel article is 
 an originating good eligible 
 for preferential treatment, of 
 a law that implements a free 
 trade agreement entered into by 
 the United States that is in 
 effect at the time the claim 
 for preferential treatment is 
 made.
 (B) Removal of designation of fabrics or 
 yarns not available in commercial quantities.--
 If the President determines that--
 (i) any fabric or yarn described in 
 clause (i) of subparagraph (A) was 
 determined to be eligible for 
 preferential treatment, or
 (ii) any fabric or yarn described in 
 clause (ii) of subparagraph (A) was 
 designated as not being available in 
 commercial quantities,
 on the basis of fraud, the President is 
 authorized to remove the eligibility or 
 designation (as the case may be) of that fabric 
 or yarn with respect to articles entered after 
 such removal.
 (6) Other preferential treatment not affected.--The 
 duty-free treatment provided under this subsection is 
 in addition to any other preferential treatment under 
 this title.
 (c) Special Rule for Certain Wire Harness Automotive 
Components.--
 (1) In general.--Any wire harness automotive 
 component that is the product or manufacture of Haiti 
 and is imported directly from Haiti into the customs 
 territory of the United States shall enter the United 
 States free of duty, during the 10-year period 
 beginning on the date of the enactment of the Haitian 
 Hemispheric Opportunity through Partnership 
 Encouragement Act of 2006, if Haiti has met the 
 requirements of subsection (d) and if the sum of--
 (A) the cost or value of the materials 
 produced in Haiti or one or more countries 
 described in subsection (b)(2)(C), or any 
 combination thereof, plus
 (B) the direct costs of processing operations 
 (as defined in section 213(a)(3)) performed in 
 Haiti or the United States, or both,
 is not less than 50 percent of the declared customs 
 value of such wire harness automotive component.
 (2) Wire harness automotive component.--For purposes 
 of this subsection, the term ``wire harness automotive 
 component'' means any article provided for in 
 subheading 8544.30.00 of the HTS, as in effect on the 
 date of the enactment of the Haitian Hemispheric 
 Opportunity through Partnership Encouragement Act of 
 2006.
 (d) Eligibility Requirements.--
 (1) In general.--Haiti shall be eligible for 
 preferential treatment under this section if the 
 President determines and certifies to Congress that 
 Haiti--
 (A) has established, or is making continual 
 progress toward establishing--
 (i) 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;
 (ii) the rule of law, political 
 pluralism, and the right to due 
 process, a fair trial, and equal 
 protection under the law;
 (iii) the elimination of barriers to 
 United States trade and investment, 
 including by--
 (I) the provision of national 
 treatment and measures to 
 create an environment conducive 
 to domestic and foreign 
 investment;
 (II) the protection of 
 intellectual property; and
 (III) the resolution of 
 bilateral trade and investment 
 disputes;
 (iv) economic policies to reduce 
 poverty, increase the availability of 
 health care and educational 
 opportunities, expand physical 
 infrastructure, promote the development 
 of private enterprise, and encourage 
 the formation of capital markets 
 through microcredit or other programs;
 (v) a system to combat corruption and 
 bribery, such as signing and 
 implementing the Convention on 
 Combating Bribery of Foreign Public 
 Officials in International Business 
 Transactions; and
 (vi) protection of internationally 
 recognized worker rights, including the 
 right of association, the right to 
 organize and bargain collectively, a 
 prohibition on the use of any form of 
 forced or compulsory labor, a minimum 
 age for the employment of children, and 
 acceptable conditions of work with 
 respect to minimum wages, hours of 
 work, and occupational safety and 
 health;
 (B) does not engage in activities that 
 undermine United States national security or 
 foreign policy interests; and
 (C) does not engage in gross violations of 
 internationally recognized human rights or 
 provide support for acts of international 
 terrorism and cooperates in international 
 efforts to eliminate human rights violations 
 and terrorist activities.
 (2) Time limit for determination.--The President 
 shall determine whether Haiti meets the requirements of 
 paragraph (1) not later than 90 days after the date of 
 the enactment of the Haitian Hemispheric Opportunity 
 through Partnership Encouragement Act of 2006.
 (3) Continuing compliance.--If the President 
 determines that Haiti is not making continual progress 
 in meeting the requirements described in paragraph 
 (1)(A), the President shall terminate the preferential 
 treatment under this section.
 (4) Petition process.--Any interested party may file 
 a request to have the status of Haiti reviewed with 
 respect to the eligibility requirements listed in 
 paragraph (1), and the President shall provide for this 
 purpose the same procedures as those that are provided 
 for reviewing the status of eligible beneficiary 
 developing countries with respect to the designation 
 criteria listed in subsections (b) and (c) of section 
 502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and 
 (c)).
 (e) Technical Assistance Improvement and Compliance Needs 
Assessment and Remediation Program.--
 (1) Continued eligibility for preferences.--
 (A) Presidential certification of compliance 
 by haiti with requirements.--Upon the 
 expiration of the 16-month period beginning on 
 the date of the enactment of the Haitian 
 Hemispheric Opportunity through Partnership 
 Encouragement Act of 2008, Haiti shall continue 
 to be eligible for the preferential treatment 
 provided under subsection (b) only if the 
 President determines and certifies to the 
 Congress that--
 (i) Haiti has implemented the 
 requirements set forth in paragraphs 
 (2) and (3); and
 (ii) Haiti has agreed to require 
 producers of articles for which duty-
 free treatment may be requested under 
 subsection (b) to participate in the 
 TAICNAR Program described in paragraph 
 (3) and has developed a system to 
 ensure participation in such program by 
 such producers, including by developing 
 and maintaining the registry described 
 in paragraph (2)(B)(i).
 (B) Extension.--The President may extend the 
 period for compliance by Haiti under 
 subparagraph (A) if the President--
 (i) determines that Haiti has made a 
 good faith effort toward such 
 compliance and has agreed to take 
 additional steps to come into full 
 compliance that are satisfactory to the 
 President; and
 (ii) provides to the appropriate 
 congressional committees, not later 
 than 6 months after the last day of the 
 16-month period specified in 
 subparagraph (A), and every 6 months 
 thereafter, a report identifying the 
 steps that Haiti has agreed to take to 
 come into full compliance and the 
 progress made over the preceding 6-
 month period in implementing such 
 steps.
 (C) Continuing compliance.--
 (i) Termination of preferential 
 treatment.--If, after making a 
 certification under subparagraph (A), 
 the President determines that Haiti is 
 no longer meeting the requirements set 
 forth in subparagraph (A), the 
 President shall terminate the 
 preferential treatment provided under 
 subsection (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 Haiti when 
 the determination is made.
 (ii) Subsequent compliance.--If the 
 President, after terminating 
 preferential treatment under clause 
 (i), determines that Haiti is meeting 
 the requirements set forth in 
 subparagraph (A), the President shall 
 reinstate the application of 
 preferential treatment under subsection 
 (b).
 (2) Labor ombudsman.--
 (A) In general.--The requirement under this 
 paragraph is that Haiti has established an 
 independent Labor Ombudsman's Office within the 
 national government that--
 (i) reports directly to the President 
 of Haiti;
 (ii) is headed by a Labor Ombudsman 
 chosen by the President of Haiti, in 
 consultation with Haitian labor unions 
 and industry associations; and
 (iii) is vested with the authority to 
 perform the functions described in 
 subparagraph (B).
 (B) Functions.--The functions of the Labor 
 Ombudsman's Office shall include--
 (i) developing and maintaining a 
 registry of producers of articles for 
 which duty-free treatment may be 
 requested under subsection (b), and 
 developing, in consultation and 
 coordination with any other appropriate 
 officials of the Government of Haiti, a 
 system to ensure participation by such 
 producers in the TAICNAR Program 
 described in paragraph (3);
 (ii) overseeing the implementation of 
 the TAICNAR Program described in 
 paragraph (3);
 (iii) receiving and investigating 
 comments from any interested party 
 regarding the conditions described in 
 paragraph (3)(B) in facilities of 
 producers listed in the registry 
 described in clause (i) and, where 
 appropriate, referring such comments or 
 the result of such investigations to 
 the appropriate Haitian authorities, or 
 to the entity operating the TAICNAR 
 Program described in paragraph (3);
 (iv) assisting, in consultation and 
 coordination with any other appropriate 
 Haitian authorities, producers listed 
 in the registry described in clause (i) 
 in meeting the conditions set forth in 
 paragraph (3)(B); and
 (v) coordinating, with the assistance 
 of the entity operating the TAICNAR 
 Program described in paragraph (3), a 
 tripartite committee comprised of 
 appropriate representatives of 
 government agencies, employers, and 
 workers, as well as other relevant 
 interested parties, for the purposes of 
 evaluating progress in implementing the 
 TAICNAR Program described in paragraph 
 (3), and consulting on improving core 
 labor standards and working conditions 
 in the textile and apparel sector in 
 Haiti, and on other matters of common 
 concern relating to such core labor 
 standards and working conditions.
 (3) Technical assistance improvement and compliance 
 needs assessment and remediation program.--
 (A) In general.--The requirement under this 
 paragraph is that Haiti, in cooperation with 
 the International Labor Organization, has 
 established a Technical Assistance Improvement 
 and Compliance Needs Assessment and Remediation 
 Program meeting the requirements under 
 subparagraph (C)--
 (i) to assess compliance by producers 
 listed in the registry described in 
 paragraph (2)(B)(i) with the conditions 
 set forth in subparagraph (B) and to 
 assist such producers in meeting such 
 conditions; and
 (ii) to provide assistance to improve 
 the capacity of the Government of 
 Haiti--
 (I) to inspect facilities of 
 producers listed in the 
 registry described in paragraph 
 (2)(B)(i); and
 (II) to enforce national 
 labor laws and resolve labor 
 disputes, including through 
 measures described in 
 subparagraph (E).
 (B) Conditions described.--The conditions 
 referred to in subparagraph (A) are--
 (i) compliance with core labor 
 standards; and
 (ii) compliance with the labor laws 
 of Haiti 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.
 (C) Requirements.--The requirements for the 
 TAICNAR Program are that the program--
 (i) be operated by the International 
 Labor Organization (or any subdivision, 
 instrumentality, or designee thereof), 
 which prepares the biannual reports 
 described in subparagraph (D);
 (ii) be developed through a 
 participatory process that includes the 
 Labor Ombudsman described in paragraph 
 (2) and appropriate representatives of 
 government agencies, employers, and 
 workers;
 (iii) assess compliance by each 
 producer listed in the registry 
 described in paragraph (2)(B)(i) with 
 the conditions set forth in 
 subparagraph (B) and identify any 
 deficiencies by such producer with 
 respect to meeting such conditions, 
 including by--
 (I) conducting unannounced 
 site visits to manufacturing 
 facilities of the producer;
 (II) conducting confidential 
 interviews separately with 
 workers and management of the 
 facilities of the producer;
 (III) providing to management 
 and workers, and where 
 applicable, worker 
 organizations in the facilities 
 of the producer, on a 
 confidential basis--
 (aa) the results of 
 the assessment carried 
 out under this clause; 
 and
 (bb) specific 
 suggestions for 
 remediating any such 
 deficiencies;
 (iv) assist the producer in 
 remediating any deficiencies identified 
 under clause (iii);
 (v) conduct prompt follow-up site 
 visits to the facilities of the 
 producer to assess progress on 
 remediation of any deficiencies 
 identified under clause (iii); and
 (vi) provide training to workers and 
 management of the producer, and where 
 appropriate, to other persons or 
 entities, to promote compliance with 
 subparagraph (B).
 (D) Biannual report.--The biannual reports 
 referred to in subparagraph (C)(i) are a 
 report, by the entity operating the TAICNAR 
 Program, that is published (and available to 
 the public in a readily accessible manner) on a 
 biannual basis, beginning 6 months after Haiti 
 implements the TAICNAR Program under this 
 paragraph, covering the preceding 6-month 
 period, and that includes the following:
 (i) The name of each producer listed 
 in the registry described in paragraph 
 (2)(B)(i) that has been identified as 
 having met the conditions under 
 subparagraph (B).
 (ii) The name of each producer listed 
 in the registry described in paragraph 
 (2)(B)(i) that has been identified as 
 having deficiencies with respect to the 
 conditions under subparagraph (B), and 
 has failed to remedy such deficiencies.
 (iii) For each producer 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 TAICNAR Program;
 (II) a description of the 
 efforts by the producer 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 producer identified as 
 having deficiencies with respect to the 
 conditions described under subparagraph 
 (B) in a prior report under this 
 subparagraph, a description of the 
 progress made in remediating such 
 deficiencies since the submission of 
 the prior report, and an assessment of 
 whether any aspect of such deficiencies 
 persists.
 (E) Capacity building.--The assistance to the 
 Government of Haiti referred to in subparagraph 
 (A)(ii) shall include programs--
 (i) to review the labor laws and 
 regulations of Haiti and to develop and 
 implement strategies for bringing the 
 laws and regulations into conformity 
 with core labor standards;
 (ii) 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;
 (iii) to increase awareness of worker 
 rights, including under core labor 
 standards and national labor laws;
 (iv) 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;
 (v) to assist the Labor Ombudsman 
 appointed pursuant to paragraph (2) in 
 establishing and coordinating operation 
 of the committee described in paragraph 
 (2)(B)(v);
 (vi) to assist worker representatives 
 in more fully and effectively 
 advocating on behalf of their members; 
 and
 (vii) to provide on-the-job training 
 and technical assistance to labor 
 inspectors, judicial officers, and 
 other relevant personnel to build their 
 capacity to enforce national labor laws 
 and resolve labor disputes.
 (4) Compliance with eligibility criteria.--
 (A) Country compliance with worker rights 
 eligibility criteria.--In making a 
 determination of whether Haiti is meeting the 
 requirement set forth in subsection 
 (d)(1)(A)(vi) relating to internationally 
 recognized worker rights, the President shall 
 consider the reports produced under paragraph 
 (3)(D).
 (B) Producer eligibility.--
 (i) Identification of producers.--
 Beginning in the second calendar year 
 after the President makes the 
 certification under paragraph (1)(A), 
 the President shall identify on a 
 biennial basis whether a producer 
 listed in the registry described in 
 paragraph (2)(B)(i) has failed to 
 comply with core labor standards and 
 with the labor laws of Haiti that 
 directly relate to and are consistent 
 with core labor standards.
 (ii) Assistance to producers; 
 withdrawal, etc., of preferential 
 treatment.--For each producer that the 
 President identifies under clause (i), 
 the President shall seek to assist such 
 producer in coming into compliance with 
 core labor standards and with the labor 
 laws of Haiti 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 preferential 
 treatment under subsection (b) to 
 articles of such producer.
 (iii) Reinstating preferential 
 treatment.--If the President, after 
 withdrawing, suspending, or limiting 
 the application of preferential 
 treatment under clause (ii) to articles 
 of a producer, determines that such 
 producer is complying with core labor 
 standards and with the labor laws of 
 Haiti that directly relate to and are 
 consistent with core labor standards, 
 the President shall reinstate the 
 application of preferential treatment 
 under subsection (b) to the articles of 
 the producer.
 (iv) Consideration of reports.--In 
 making the identification under clause 
 (i) and the determination under clause 
 (iii), the President shall consider the 
 reports made available under paragraph 
 (3)(D).
 (5) Reports by the president.--
 (A) In general.--Not later than one year 
 after the date of the enactment of the Haitian 
 Hemispheric Opportunity through Partnership 
 Encouragement Act of 2008, and annually 
 thereafter, the President shall transmit to the 
 appropriate congressional committees a report 
 on the implementation of this subsection during 
 the preceding 1-year period.
 (B) Matters to be included.--Each report 
 required by subparagraph (A) shall include the 
 following:
 (i) An explanation of the efforts of 
 Haiti, the President, and the 
 International Labor Organization to 
 carry out this subsection.
 (ii) A summary of each report 
 produced under paragraph (3)(D) during 
 the preceding 1-year period and a 
 summary of the findings contained in 
 such report.
 (iii) Identifications made under 
 paragraph (4)(B)(i) and determinations 
 made under paragraph (4)(B)(iii).
 (6) Authorization of appropriations.--There is 
 authorized to be appropriated to carry out this 
 subsection the sum of $10,000,000 for the period 
 beginning on October 1, 2008, and ending on September 
 30, 2013.
 (f) Conditions Regarding Enforcement of Circumvention.--
 (1) In general.--The preferential treatment under 
 subsection (b)(1) shall not apply unless the President 
 certifies to Congress that Haiti is meeting the 
 following conditions:
 (A) Haiti has adopted an effective visa 
 system, domestic laws, and enforcement 
 procedures applicable to articles described in 
 subsection (b) 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) Haiti 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 
 transshipment through such country.
 (C) Haiti agrees to report, on a timely 
 basis, at the request of U.S. Customs and 
 Border Protection, on the total exports from 
 and imports into that country of articles 
 described in subsection (b), consistent with 
 the manner in which the records are kept by 
 Haiti.
 (D) Haiti agrees to 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) Haiti agrees to require all producers and 
 exporters of articles described in subsection 
 (b) in that country to 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).
 (F) Haiti agrees to report, on a timely 
 basis, at the request of U.S. Customs and 
 Border Protection, documentation establishing 
 the country of origin of articles described in 
 subsection (b) as used by that country in 
 implementing an effective visa system.
 (2) Definition of transshipment.--Transshipment 
 within the meaning of this subsection has occurred when 
 preferential treatment for a textile or apparel article 
 under this section 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 this 
 paragraph, false information is material if disclosure 
 of the true information would mean or would have meant 
 that the article is or was ineligible for preferential 
 treatment under this section.
 (3) Limitation on goods shipped from the dominican 
 republic.--
 (A) Limitation.--Notwithstanding subsection 
 (a)(5), relating to the definition of 
 ``imported directly from Haiti or the Dominican 
 Republic'', articles described in subsection 
 (b) that are shipped from the Dominican 
 Republic, directly or through the territory of 
 an intermediate country, whether or not such 
 articles undergo processing in the Dominican 
 Republic, shall not be considered to be 
 ``imported directly from Haiti or the Dominican 
 Republic'' until the President certifies to the 
 Congress that Haiti and the Dominican Republic 
 have developed procedures to prevent unlawful 
 transshipment of the articles and the use of 
 counterfeit documents related to the 
 importation of the articles into the United 
 States.
 (B) Technical and other assistance.--The 
 Commissioner responsible for U.S. Customs and 
 Border Protection shall provide technical and 
 other assistance to Haiti and the Dominican 
 Republic to develop expeditiously the 
 procedures described in subparagraph (A).
 (g) Regulations.--The President shall issue regulations to 
carry out this section not later than 180 days after the date 
of the enactment of the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006. The President shall 
consult with the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate in 
preparing such regulations.
 [(h) Termination.--Except as provided in subsection (b)(1), 
the duty-free treatment provided under this section shall 
remain in effect until September 30, 2025.]
 (h) Termination.--The duty-free treatment provided under this 
section shall remain in effect until December 31, 2028.

 * * * * * * *

 VII. ADDITIONAL VIEWS

 Haiti is in a crisis and in urgent need of U.S. support. 
Besides the immediate security and governance crises, there are 
significant humanitarian and economic challenges. Given the 
dire circumstances in Haiti, plus the Trump Administration's 
chaotic and punitive trade policy, Haiti cannot afford to wait 
any longer for the reauthorization of the Haiti-specific 
preference programs.
 H.R. 6504 is not the bill Ways and Means Democrats would 
have written. Our preference programs are critically important 
for Haiti. But we must address known problems with the 
implementation of our preference programs, mainly concerning 
labor rights violations and noncompliance with Haiti's national 
labor laws. Years before the current security and political 
crisis in Haiti, numerous stakeholders--the International 
Labour Organization (ILO), union representatives, and Non-
Governmental Organizations (NGOs)--have reported labor 
violations in Haiti, especially in the apparel sector. 
Specifically, NGOs have reported that few factories make the 
required contributions to the health or pension funds of its 
workers. Wage theft has been implicated in the deaths of two 
Haitian workers, including a pregnant woman. Unfortunately, 
H.R. 6504 would not address the well-documented labor concerns 
in Haiti nor help diversify Haiti's exports to the United 
States.
 With the Haiti-specific programs expired, Haiti's exports 
of apparel products face high tariff rates. In addition, 
exports from Haiti to the United States are subject to 
President Trump's ten percent ``reciprocal'' tariffs. H.R. 6504 
would not address the president's unlawful tariffs.
 Considering the dire circumstances in Haiti and the Trump 
Administration's cruel trade policy, extending the Haiti 
preference programs for three years would provide certainty and 
significant tariff relief, which is particularly valuable to 
the people of Haiti and U.S. businesses that rely on the Haiti 
preference programs.
 Ways and Means Democrats remain committed to further 
strengthening the labor enforcement of Haiti programs and 
assisting Haiti in diversifying its exports to the United 
States.

 Richard E. Neal,
 Ranking Member.