[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1945 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1945
To provide temporary duty reductions for certain cotton fabrics, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2005
Mr. Simmons (for himself and Mr. Etheridge) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committees on Agriculture and Financial Services, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide temporary duty reductions for certain cotton fabrics, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON SHIRTING
FABRIC.
(a) Certain Cotton Shirting Fabrics.--
(1) In general.--Subchapter II of chapter 99 is amended by
inserting in numerical sequence the following new headings:
`` 9902.52.08 Woven fabrics of Free No change No change On or before 12/
cotton, all the 31/2006
foregoing
certified by the
importer as
suitable for use
in making men's
and boys' shirts
and as imported by
or for the benefit
of a manufacturer
of men's and boys'
shirts, subject to
the quantity
limitations
contained in
general note 18 of
this subchapter
(provided for in
section
204(b)(3)(B)(i)(II
I) of the Andean
Trade Preference
Act (19 U.S.C.
3203))............
9902.52.09 Woven fabrics of Free No change No change On or before 12/
cotton, all the 31/2006 ''
foregoing .
certified by the
importer as
containing 100
percent pima
cotton grown in
the United States,
as suitable for
use in making
men's and boys'
shirts, and as
imported by or for
the benefit of a
manufacturer of
men's and boys'
shirts (provided
for in section
204(b)(3)(B)(i)(II
I) of the Andean
Trade Preference
Act (19 U.S.C.
3203))............
(2) Definitions and limitation on quantity of imports.--The
U.S. Notes to subchapter II of chapter 99 are amended by adding
at the end the following:
``18. For purposes of subheadings 9902.52.08 and 9902.52.09, the term
`making' means cutting and sewing in the United States, and the
term `manufacturer' means a person or entity that cuts and sews
in the United States.
``19. The aggregate quantity of cotton fabrics entered under subheading
9902.52.08 from January 1 to December 31 of each year,
inclusive, by or on behalf of each manufacturer of men's and
boys' shirts shall be limited to 85 percent of the total square
meter equivalents of all imported cotton woven fabric used by
such manufacturer in cutting and sewing men's and boys' cotton
shirts in the United States and purchased by such manufacturer
during calendar year 2000.''.
(b) Determination of Tariff-Rate Quotas.--
(1) Authority to issue licenses and license use.--In order
to implement the limitation on the quantity of cotton woven
fabrics that may be entered under subheading 9902.52.08 of the
Harmonized Tariff Schedule of the United States, as required by
U.S. Note 19 to subchapter II of chapter 99 of such Schedule,
the Secretary of Commerce shall issue licenses to eligible
manufacturers under subheading 9902.52.08, specifying the
restrictions under each such license on the quantity of cotton
woven fabrics that may be entered each year by or on behalf of
the manufacturer. A licensee may assign the authority (in whole
or in part) under the license to import fabric under subheading
9902.52.08 of such Schedule.
(2) Licenses under u.s. note 19.--For purposes of U.S. Note
19 to subchapter II of chapter 99 of the Harmonized Tariff
Schedule of the United States, the Secretary of Commerce shall
issue a license to a manufacturer within 60 days after the
manufacturer files with the Secretary of Commerce an
application containing a notarized affidavit from an officer of
the manufacturer that the manufacturer is eligible to receive a
license and stating the quantity of imported cotton woven
fabric purchased during calendar year 2000 for use in the
cutting and sewing men's and boys' shirts in the United States.
(3) Affidavits.--For purposes of an affidavit described in
this subsection, the date of purchase shall be--
(A) the invoice date if the manufacturer is not the
importer of record; and
(B) the date of entry if the manufacturer is the
importer of record.
SEC. 2. COTTON TRUST FUND.
(a) Establishment of Trust Fund.--
(1) In general.--There is established in the Treasury of
the United States a trust fund to be known as the ``Pima Cotton
Trust Fund'' (in this section referred to as the ``Trust
Fund''), consisting of such amounts as may be transferred to
the Trust Fund under paragraph (2).
(2) Transfer of amounts.--
(A) In general.--Beginning October 1, 2005, the
Secretary of the Treasury shall transfer to the Trust
Fund, from the general fund of the Treasury, amounts
determined by the Secretary of the Treasury to be equivalent to the
amounts received in the general fund that are attributable to duties
received since January 1, 1994, on articles under subheadings
5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50, 5208.39.80,
5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80, 5208.52.50, 5208.59.80,
5210.21.80, and 5210.31.80 of the Harmonized Tariff Schedule of the
United States, subject to the limitation in subparagraph (B).
(B) Limitation.--The Secretary may not transfer
more than $16,000,000 to the Trust fund in any fiscal
year, and may not transfer any amount beginning on or
after October 1, 2007.
(3) Distribution of funds.--From amounts in the Trust Fund,
the Commissioner of the Bureau of Customs and Border Protection
shall make the following payments annually beginning in fiscal
year 2005:
(A) 25 percent of the amounts in the Trust Fund
shall be paid annually to a nationally recognized
association established for the promotion of pima
cotton grown in the United States for the use in
textile and apparel goods.
(B) 25 percent of the amounts in the Trust Fund
shall be paid annually to yarn spinners of pima cotton
grown in the United States, and shall be allocated to
each spinner in an amount that bears the same ratio
as--
(i) the spinner's production of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number) from pima cotton
grown in the United States in single and plied
form during calendar year 2002 (as evidenced by
an affidavit provided by the spinner) bears
to--
(ii) the production of the yarns described
in clause (i) during calendar year 2002 for all
spinners who qualify under this subparagraph.
(C) 50 percent of the amounts in the Trust Fund
shall be paid annually to those manufacturers who cut
and sew cotton shirts in the United States who certify
that they used imported cotton fabric during the period
January 1, 1998, through July 1, 2003, and shall be
allocated to each such manufacturer in an amount that
bears the same ratio as--
(i) the dollar value (excluding duty,
shipping, and related costs) of imported woven
cotton shirting fabric of 80s or higher count
and 2-ply in warp purchased by the manufacturer
during calendar year 2002 (as evidenced by an
affidavit from the manufacturer that meets the
requirements of paragraph (4)) used in the
manufacturing of men's and boys' cotton shirts,
bears to--
(ii) the dollar value (excluding duty,
shipping, and related costs) of the fabric
described in clause (i) purchased during
calendar year 2002 by all manufacturers who
qualify under this subparagraph.
(4) Affidavit of shirting manufacturers.--The affidavit
required by paragraph (3)(C) is a notarized affidavit provided
by an officer of the manufacturer of men's and boys' shirts
concerned that affirms--
(A) that the manufacturer used imported cotton
fabric during the period January 1, 1998, through July
1, 2003, to cut and sew men's and boys' woven cotton
shirts in the United States;
(B) the dollar value of imported woven cotton
shirting fabric of 80s or higher count and 2-ply in
warp purchased during calendar year 2002;
(C) that the manufacturer maintains invoices along
with other supporting documentation (such as price
lists and other technical descriptions of the fabric
qualities) showing the dollar value of such fabric
purchased, the date of purchase, and evidencing the
fabric as woven cotton fabric of 80s or higher count
and 2-ply in warp; and
(D) that the fabric was suitable for use in the
manufacturing of men's and boys' cotton shirts.
(5) Date of purchase.--For purposes of the affidavit under
paragraph (4), the date of purchase shall be the invoice date,
and the dollar value shall be determined excluding duty,
shipping, and related costs.
(6) Affidavit of yarn spinners.--The affidavit required by
paragraph (3)(B) is a notarized affidavit provided by an
officer of the producer of ring spun yarns that affirms--
(A) that the producer used pima cotton grown in the
United States during the period January 1, 2002,
through December 31, 2002, to produce ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form during 2002;
(B) the quantity, measured in pounds, of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number), in single and plied form
during calendar year 2002; and
(C) that the producer maintains supporting
documentation showing the quantity of such yarns
produced, and evidencing the yarns as ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form during
calendar year 2002.
(7) No appeal.--Any amount paid by the Commissioner of the
Bureau of Customs and Border Protection under this section
shall be final and not subject to appeal or protest.
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