Details of the Senate-Passed Miscellaneous Trade and Technical Corrections Act

Senator's "Hold" is Preventing House-Senate Conference

As the House and Senate have passed different versions of H.R. 1047, the next step would normally be a House-Senate conference to resolve differences between the two versions of the bill.

However, Congressional sources state that a Senator has placed a "hold" on the Senate's version of H.R. 1047 which prevents a House-Senate conference from being convened.

Congressional sources note that if this "hold" can be lifted, the Senate is expected to request a conference with the House to resolve the differences in their two versions of H.R. 1047. If resolved in this manner, each body would then pass the conference version of H.R. 1047, which would then be sent to the President for enactment.

This is Part X of a multi-part series of summaries on the Senate-passed version of H.R. 1047 (H.R. 1047) and covers technical amendments to the African Growth and Opportunity Act (AGOA) and the U.S.-Caribbean Basin Trade Partnership Act (CBTPA). See future issues for additional summaries on H.R. 1047.

AGOA Technical Amendments

H.R. 1047 contains a number of technical amendments, including several pertaining to AGOA, as follows:

Hybrid (fabric and knit-to-shape) AGOA apparel. A technical error in 19 USC 3721(b)(1) would be corrected by adding the phrase "or both" to indicate that such apparel articles sewn or otherwise assembled in one or more AGOA beneficiary countries can be made from i) wholly formed and cut U.S. fabric and ii) components knit-to-shape in the U.S.

(19 USC 3721(b)(2), for another type of AGOA apparel, already contains the phrase "or both" to indicate this.)

Use of U.S. fabrics and/or components in AGOA regional apparel. H.R. 1047 would amend 19 USC 3721(b)(3) to indicate that in AGOA regional apparel, U.S. formed fabrics (cut in either the U.S. or AGOA beneficiary country) and/or components knit-to-shape in the U.S. may be used.

The phrase added to 19 USC 3721(b)(3) would state: "whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in 19 USC 3721(b)(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 (b)(1) or (2))..."

Use of AGOA fabric or yarn in apparel that uses "commercially unavailable" fabric or yarn. H.R. 1047 would amend 19 USC 3721(b)(5)(A), regarding apparel articles assembled with fabric or yarn listed in NAFTA Annex 401 as not available in commercial quantities in the U.S., to indicate that fabric or yarn formed in an AGOA beneficiary country may be used.

The amended paragraph would read as follows (deleted language is denoted by <carrots>):

"Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more AGOA beneficiary countries, <from fabric or yarn that is not formed in the United States or an AGOA beneficiary country>, to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabric or yarn, under Annex 401 of the NAFTA."

(This change would similarly affect 19 UCS 3721(b)(5)(B), an AGOA provision that pertains to apparel articles containing additional CITA-determined "commercially unavailable" fabrics or yarns.)

CBTPA Technical Amendments

H.R. 1047 also contains several technical amendments pertaining to the CBTPA, as follows:

Hybrid (fabric and knit-to-shape) CBTPA apparel. A technical error in 19 USC 2703(b)(2)(A)(i) would be corrected by adding the phrase "or both" so that such CBTPA apparel articles sewn or otherwise assembled in one or more CBTPA beneficiary countries can be made from wholly formed and cut U.S. fabric and components knit-to-shape in the U.S.

(19 USC 2703(b)(2)(A)(ii), for another type of CBTPA apparel, already contains the phrase "or both" to indicate this.)

Use of CBTPA fabric or yarn in apparel that uses "commercially unavailable" fabric or yarn. H.R. 1047 would amend 19 USC 2703(b)(2)(A)(v)(I), regarding apparel articles assembled from fabrics or yarn listed in NAFTA Annex 401 as not widely available in commercial quantities in the U.S., to indicate that fabrics or yarn formed in a CBTPA beneficiary country may be used.

The amended paragraph would read as follows (deleted language is denoted by <carrots>):

"Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more CBTPA beneficiary countries, <from fabrics or yarn that is not formed in the United States or in one or more CBTPA beneficiary countries,> to the extent that apparel articles of such fabrics or yarn would be eligible for preferential treatment, without regard to the source of the fabrics or yarn, under Annex 401 of the NAFTA."

(This change would similarly affect 19 USC 2703(b)(2)(A)(v)(II), a CBTPA provision that pertains to apparel articles containing additional CITA-determined "commercially unavailable" fabrics or yarn.)

Other

H.R. 1047 would amend Section 3107(a)(1)(B) of the Trade Act of 2002 (which amended 19 USC 2703(b)(2)(A)) by striking the phrase "(B) by adding at the end the following:" and replacing it with the phrase "(B) by amending the last two sentences to read as follows:".

(See ITT's Online Archives or 03/11/04, 03/12/04, 03/18/04, 03/19/04, 03/24/04, 04/01/04, 04/02/04, 04/05/04, and 04/06/04 news, 04031105, 04031215, 04031820, 04031910, 04032415, 04040115, 04040205, 04040520, and 04040620, for Parts I-IX of this series of summaries on the Senate-passed version of H.R. 1047.)

Senate-passed version of H.R. 1047 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h1047eas.txt.pdf.