Haiti Economic Lift Program Act of 2010

Bill Number: 
S.3275
Bill Location: 
Date of Last Action: 
Wednesday, April 28, 2010
Relevant Text: 

111th CONGRESS

2d Session

S. 3275

To extend the Caribbean Basin Economic Recovery Act, to provide customs support services to Haiti, and for other purposes.

IN THE SENATE OF THE UNITED STATES

April 28, 2010

Mr. BAUCUS (for himself and Mr. GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To extend the Caribbean Basin Economic Recovery Act, to provide customs support services to Haiti, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Haiti Economic Lift Program Act of 2010'.

SEC. 2. FINDINGS.

    Congress finds the following:
      (1) On January 12, 2010, Haiti was hit by a 7.0 magnitude earthquake, the worst earthquake to affect Haiti in recorded history. Aftershocks from the earthquake, measuring up to 6.0 on the Richter scale, continued for days afterwards.

      (2) The earthquake has devastated Haiti's infrastructure, including homes, offices, factories, roads, ports, communications, and other facilities. The loss of life attributable to the earthquake was massive.

      (3) Even before the earthquake, Haiti was the poorest country in the Western Hemisphere, ranking 149 out of 182 countries according to the United Nation's Human Development Index.

      (4) In recent years, however, the Government and people of Haiti had taken important steps forward to promote economic growth and development, including making strides towards establishing a competitive apparel sector.

      (5) United States trade preference programs, including the Caribbean Basin Economic Recovery Act (as amended by the United States-Caribbean Basin Trade Partnership Act, the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (`HOPE Act'), and the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (`HOPE II Act')), which extend duty-free tariff treatment to certain apparel produced in Haiti, have made an important contribution to Haiti's economic development efforts.

      (6) However, the Haitian apparel sector has been hard hit by the January 12, 2010, earthquake. A number of apparel factories based in and around Port-au-Prince have been heavily damaged, including the collapse of one major apparel factory that had employed nearly 4,000 workers.
      (7) The Port-au-Prince seaport that had served the apparel trade has been badly damaged. And extensive damage to roads has made it difficult to transport apparel to the Dominican Republic for shipment from ports in that country.

      (8) According to estimates by the Department of Commerce, imports of apparel articles from Haiti to the United States in 2010 have decreased by 43 percent as compared to the same period in 2009.

      (9) The earthquake has increased significantly the costs and uncertainty of doing business in Haiti. A strong and unequivocal commitment from the United States is needed to help Haiti offset these costs and preserve the gains made under United States trade preference programs, and to encourage buyers and investors to stand with Haiti through this crisis.

SEC. 3. EXTENSION OF CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

    The Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.) is amended--

      (1) in section 213(b)--
        (A) in paragraph (2)(A)--

          (i) in clause (iii)--

            (I) in subclause (II)(cc), by striking `September 30, 2010' and inserting `September 30, 2020'; and

            (II) in subclause (IV)(dd), by striking `September 30, 2010' and inserting `September 30, 2020'; and

          (ii) in clause (iv)(II), by striking `8' and inserting `18'; and

        (B) in paragraph (5)(D)(i), by striking `September 30, 2010' and inserting `September 30, 2020'; and
      (2) in section 213A(h), by striking `September 30, 2018' and inserting `September 30, 2020'.

SEC. 4. APPAREL AND OTHER ARTICLES SUBJECT TO CERTAIN ASSEMBLY RULES.

    (a) Certain Other Apparel Articles- Section 213A(b)(3) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(b)(3)) is amended by adding at the end the following:

        `(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):

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`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

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          `(iii) CATEGORY DEFINED- In this subparagraph, the term `category' has the meaning given that term in paragraph (2A)(E) of this subsection.'.

    (b) Made-Up Textile Articles- Section 213A(b)(3) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(b)(3)), as amended by subsection (a), is further amended by adding at the end the following:

        `(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):

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`Category Number HTS Statistical Reporting Number

362 6304.11.1000

6304.19.0500

6304.19.1000

9404.90.8020

9404.90.8505

363 6302.60.0020

6302.91.0015

6302.91.0035

6302.91.0045

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

5601.21.0090

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

396 5601.10.1000

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

469 6304.19.3040

6304.91.0050

6304.99.1500

6304.99.6010

5601.29.0020

6302.39.0010

489 6406.10.9020

665 5702.31.1000

5702.31.2000

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

666 6304.11.2000

6304.91.0040

6304.93.0000

6304.99.6020

9404.90.8522

6301.30.0020

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

6305.32.0010

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

9404.90.8536

5601.29.0090

6301.90.0030

6305.90.0000

6406.10.9060

900 5601.29.0010

5701.90.2010

6301.90.0020

5701.90.2010

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          `(iii) OTHER ARTICLES DESCRIBED- Made-up textile articles described in this clause are articles 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):

            `(I) 5703.20.2000.

            `(II) 6406.10.9090.

            `(III) 9404.90.8523.

          `(iv) CATEGORY DEFINED- In this subparagraph, the term `category' has the meaning given that term in paragraph (2A)(E) of this subsection.'.

SEC. 5. MODIFICATION OF TARIFF PREFERENCE LEVELS; VERIFICATION WITH RESPECT TO TRANSSHIPMENT FOR CERTAIN APPAREL ARTICLES.

    Section 213A(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended--

      (1) in paragraph (2)--

        (A) in subparagraph (A)(ii)--

          (i) by striking `The preferential treatment' and inserting `Except as provided in paragraph (2A), the preferential treatment'; and

          (ii) by striking `9' and inserting `11'; and

        (B) in subparagraph (B)(iii)--
          (i) by striking `The preferential treatment' and inserting `Except as provided in paragraph (2A), the preferential treatment'; and

          (ii) by striking `9' and inserting `11'; and

      (2) by inserting after paragraph (2) the following:

      `(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):

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`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

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            `(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):

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`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

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            `(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):

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`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

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            `(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):

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`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

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        `(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:

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`6105.10.0010 6109.10.0040 6110.30.3053

6109.10.0018 6109.10.0045 6110.30.3059

6109.10.0027 6110.20.2079

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        `(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 U.S. 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).'.

SEC. 6. EARNED IMPORT ALLOWANCE RULE.

    Section 213A(b)(4)(B)(ii)(I) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(b)(4)(B)(ii)(I)) is amended by striking `three' and inserting `two'.

SEC. 7. EXTENSION OF VALUE-ADDED RULE.

    Section 213A of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a), as amended by this Act, is further amended--

      (1) in subsection (a), by striking paragraph (1) and inserting the following:

      `(1) INITIAL APPLICABLE 1-YEAR PERIOD- The term `initial applicable 1-year period' means the 1-year period beginning on December 20, 2006.'; and

      (2) in subsection (b)(1)--

        (A) in subparagraph (A), by striking `an applicable 1-year period' and inserting `the initial applicable 1-year period and any 1-year period thereafter';
        (B) in subparagraph (B)--

          (i) in clause (i)--

            (I) by striking `any applicable 1-year period' and inserting `the initial applicable 1-year period and any 1-year period thereafter'; and

            (II) by striking `the applicable 1-year period' and inserting `that 1-year period';

          (ii) in clause (iv)(II)--

            (I) in the subclause heading, by striking `APPLICABLE';
            (II) by striking `In each of the second, third, fourth, and fifth applicable 1-year periods' and inserting `In any 1-year period after the initial applicable 1-year period'; and

            (III) by striking `applicable 1-year period' each place it appears and inserting `1-year period';

          (iii) in clause (v)(I)--

            (I) in item (aa), by striking `, the second applicable 1-year period, and the third applicable 1-year period' and inserting `and the succeeding 8 1-year periods';

            (II) in item (bb), by striking `the fourth applicable 1-year period' and inserting `the 1-year period beginning on December 20, 2015, and the 1-year period beginning on December 20, 2016'; and

            (III) in item (cc), by striking `the fifth applicable 1-year period' and inserting `the 1-year period beginning on December 20, 2017'; and
          (iv) in clause (vi)--

            (I) in subclause (II)--

(aa) by striking `any applicable 1-year period' and inserting `the initial applicable 1-year period or any 1-year period thereafter'; and

(bb) by striking `applicable 1-year period' each place it appears and inserting `1-year period'; and

            (II) in subclause (III)--

(aa) in item (aa), by striking `an applicable 1-year period' and inserting `the initial applicable 1-year period or any 1-year period thereafter'; and

(bb) by striking `applicable 1-year period' each place it appears and inserting `1-year period'; and

        (C) in subparagraph (C)--

          (i) by striking `applicable 1-year periods' and inserting `1-year periods';

          (ii) by striking the table and inserting the following:

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the initial applicable 1-year period 1 percent.

each of the succeeding 11 1-year periods 1.25 percent.';

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          and

          (iii) in the flush text, by striking `the last day of the fifth applicable 1-year period' and inserting `December 19, 2018'.

SEC. 8. WIRE HARNESSES.

    Section 213A(c) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703A(c)) is amended by striking `5-year period' and inserting `10-year period'.

SEC. 9. CUSTOMS SUPPORT SERVICES.

    (a) In General-
      (1) RAPID RESPONSE TEAM- The Commissioner responsible for U.S. Customs and Border Protection (in this section referred to as the `Commissioner') shall, in consultation with the United States Coast Guard, the Drug Enforcement Agency, and other Federal agencies, as appropriate, seek to send a rapid response team to Haiti--

        (A) to assess the short-term and long-term technical, capacity-building, and training needs of the authorities of the Government of Haiti responsible for customs services; and

        (B) to provide immediate assistance, as warranted, particularly with respect to--

          (i) reestablishing full capacity for commercial port operations at the seaport at Port-au-Prince;

          (ii) facilitating trade between the United States and Haiti under the Caribbean Basin Economic Recovery Act, as amended by this Act;

          (iii) preventing unlawful transshipment of goods through Haiti to the United States; and
          (iv) otherwise strengthening cooperation between the customs authorities of the United States, Haiti, and the Dominican Republic with respect to trade facilitation and economic development, customs compliance and law enforcement, and efforts to combat unlawful trafficking in narcotic drugs and psychotropic substances.

      (2) REPORT- Not later than 75 days after the date of the enactment of this Act, the Commissioner shall prepare and submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a nonconfidential report summarizing the results of the assessment required by paragraph (1)(A), including--

        (A) a description of the short-term and long-term technical, capacity-building, and training needs of the authorities of the Government of Haiti responsible for customs services, including a prioritization of immediate infrastructure needs;

        (B) a multi-year plan for supplying technical, capacity-building, and training assistance to those authorities, including specific responsibilities to be undertaken by the support team authorized by subsection (b); and

        (C) a statement of the amount and purpose for which any funds were expended by the rapid response team in Haiti to administer the provisions of this section, including any expenditure of funds authorized to be appropriated pursuant to subsection (c)(1).

    (b) Support Team-
      (1) IN GENERAL- The Commissioner shall, in consultation with other Federal agencies, as appropriate, seek to establish a support team in Haiti for the purpose of helping to meet the short-term and long-term technical, capacity-building, and training needs of the authorities of the Government of Haiti responsible for customs services, as described in this section.

      (2) TERMINATION- The support team authorized by paragraph (1) shall terminate on September 30, 2020.

    (c) Authorization of Appropriations-

      (1) IN GENERAL- There are authorized to be appropriated to the U.S. Customs and Border Protection Agency, to remain available until expended--

        (A) $100,000 to help meet the immediate infrastructure needs of the authorities of the Government of Haiti responsible for customs services for the purpose of facilitating trade between the United States and Haiti under the Caribbean Basin Economic Recovery Act, as amended by this Act; and

        (B) $750,000 for each of the fiscal years 2011 through 2020 for the purpose of maintaining the support team authorized by subsection (b).
      (2) SUPPLEMENT AND NOT SUPPLANT- The amounts authorized to be appropriated by paragraph (1) shall supplement and not supplant any other funds authorized to be appropriated to the Department of Homeland Security.

SEC. 10. SENSE OF CONGRESS.

    (a) Regional Cooperation- It is the sense of Congress that the United States Trade Representative should seek to enter into consultations with representatives of countries with which the United States has a trading relationship for the purpose of encouraging those countries to establish bilateral trade preference programs with respect to textile and apparel articles produced in Haiti.

    (b) Transshipment- It is the sense of Congress that the Commissioner responsible for U.S. Customs and Border Protection should, in consultation with the United States Trade Representative and the Secretary of Commerce, seek to enter into consultations with representatives of countries with which the United States has a trading relationship for the purpose of preventing the unlawful transshipment of textile and apparel articles from those countries through Haiti.

END