[107th Congress Public Law 43] [From the U.S. Government Printing Office] <DOC> [DOCID: f:publ043.107] [[Page 115 STAT. 243]] Public Law 107-43 107th Congress An Act To implement the agreement establishing a United States-Jordan free trade area. <<NOTE: Sept. 28, 2001 - [H.R. 2603]>> Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, <<NOTE: United States- Jordan Free Trade Area Implementation Act. Exports and imports. 19 USC 2112 note.>> SECTION 1. SHORT TITLE. This Act may be cited as the ``United States-Jordan Free Trade Area Implementation Act''. SEC. 2. PURPOSES. <<NOTE: 19 USC 2112 note.>> The purposes of this Act are-- (1) to implement the agreement between the United States and Jordan establishing a free trade area; (2) to strengthen and develop the economic relations between the United States and Jordan for their mutual benefit; and (3) to establish free trade between the 2 nations through the removal of trade barriers. SEC. 3. DEFINITIONS. <<NOTE: 19 USC 2112 note.>> For purposes of this Act: (1) Agreement.--The term ``Agreement'' means the Agreement between the United States of America and the Hashemite Kingdom of Jordan on the Establishment of a Free Trade Area, entered into on October 24, 2000. (2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule of the United States. TITLE I--TARIFF MODIFICATIONS; RULES OF ORIGIN SEC. 101. TARIFF MODIFICATIONS. <<NOTE: 19 USC 2112 note.>> (a) Tariff Modifications Provided for in the Agreement.--The President may proclaim-- (1) such modifications or continuation of any duty; (2) such continuation of duty-free or excise treatment; or (3) such additional duties, as the President determines to be necessary or appropriate to carry out article 2.1 of the Agreement and the schedule of duty reductions with respect to Jordan set out in Annex 2.1 of the Agreement. (b) Other Tariff Modifications.--The President may proclaim-- (1) such modifications or continuation of any duty; [[Page 115 STAT. 244]] (2) such continuation of duty-free or excise treatment; or (3) such additional duties, as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Jordan provided for by the Agreement. SEC. 102. <<NOTE: 19 USC 2112 note.>> RULES OF ORIGIN. (a) In General.-- (1) Eligible articles.-- (A) In general.--The reduction or elimination of any duty imposed on any article by the United States provided for in the Agreement shall apply only if-- (i) that article is imported directly from Jordan into the customs territory of the United States; and (ii) that article-- (I) is wholly the growth, product, or manufacture of Jordan; or (II) is a new or different article of commerce that has been grown, produced, or manufactured in Jordan and meets the requirements of subparagraph (B). (B) Requirements.-- (i) General rule.--The requirements of this subparagraph are that with respect to an article described in subparagraph (A)(ii)(II), the sum of-- (I) the cost or value of the materials produced in Jordan, plus (II) the direct costs of processing operations performed in Jordan, is not less than 35 percent of the appraised value of such article at the time it is entered. (ii) Materials produced in united states.--If the cost or value of materials produced in the customs territory of the United States is included with respect to an article to which this paragraph applies, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the percentage referred to in clause (i). (2) Exclusions.--No article may be considered to meet the requirements of paragraph (1)(A) by virtue of having merely undergone-- (A) simple combining or packaging operations; or (B) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. (b) Direct Costs of Processing Operations.-- (1) In general.--As used in this section, the term ``direct costs of processing operations'' includes, but is not limited to-- (A) all actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel; and [[Page 115 STAT. 245]] (B) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise. (2) Excluded costs.--The term ``direct costs of processing operations'' does not include costs which are not directly attributable to the merchandise concerned, or are not costs of manufacturing the product, such as-- (A) profit; and (B) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. (c) Textile and Apparel Articles.-- (1) In general.--A textile or apparel article imported directly from Jordan into the customs territory of the United States shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) only if-- (A) the article is wholly obtained or produced in Jordan; (B) the article is a yarn, thread, twine, cordage, rope, cable, or braiding, and-- (i) the constituent staple fibers are spun in Jordan, or (ii) the continuous filament is extruded in Jordan; (C) the article is a fabric, including a fabric classified under chapter 59 of the HTS, and the constituent fibers, filaments, or yarns are woven, knitted, needled, tufted, felted, entangled, or transformed by any other fabric-making process in Jordan; or (D) the article is any other textile or apparel article that is wholly assembled in Jordan from its component pieces. (2) Definition.--For purposes of paragraph (1), an article is ``wholly obtained or produced in Jordan'' if it is wholly the growth, product, or manufacture of Jordan. (3) Special rules.-- (A) Certain made-up articles, textile articles in the piece, and certain other textiles and textile articles.--Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (C) and (D) of this paragraph, subparagraph (A), (B), or (C) of paragraph (1), as appropriate, shall determine whether a good that is classified under one of the following headings or subheadings of the HTS shall be considered to meet the requirements of paragraph (1)(A) of subsection (a): 5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90. (B) Certain knit-to-shape textiles and textile articles.--Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (C) and (D) of this paragraph, a textile or apparel article which is knit- to-shape in Jordan shall be considered to meet the requirements of paragraph (1)(A) of subsection (a). (C) Certain dyed and printed textiles and textile articles.--Notwithstanding paragraph (1)(D), a good classified under heading 6117.10, 6213.00, 6214.00. [[Page 115 STAT. 246]] 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, except for a good classified under any such heading as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton, shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the fabric in the good is both dyed and printed in Jordan, and such dyeing and printing is accompanied by 2 or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing. (D) Fabrics of silk, cotton, manmade fiber or vegetable fiber.--Notwithstanding paragraph (1)(C), a fabric classified under the HTS as of silk, cotton, man- made fiber, or vegetable fiber shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the fabric is both dyed and printed in Jordan, and such dyeing and printing is accompanied by 2 or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing. (4) Multicountry rule.--If the origin of a textile or apparel article cannot be determined under paragraph (1) or (3), then that article shall be considered to meet the requirements of paragraph (1)(A) of subsection (a) if-- (A) the most important assembly or manufacturing process occurs in Jordan; or (B) if the applicability of paragraph (1)(A) of subsection (a) cannot be determined under subparagraph (A), the last important assembly or manufacturing occurs in Jordan. (d) Exclusion.--A good shall not be considered to meet the requirements of paragraph (1)(A) of subsection (a) if the good-- (1) is imported into Jordan, and, at the time of importation, would be classified under heading 0805 of the HTS; and (2) is processed in Jordan into a good classified under any of subheadings 2009.11 through 2009.30 of the HTS. (e) Regulations.--The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this section. TITLE II--RELIEF FROM IMPORTS Subtitle A--General Provisions SEC. 201. <<NOTE: 19 USC 2112 note.>> DEFINITIONS. As used in this title: (1) Commission.--The term ``Commission'' means the United States International Trade Commission. (2) Jordanian article.--The term ``Jordanian article'' means an article that qualifies for reduction or elimination of a duty under section 102. [[Page 115 STAT. 247]] Subtitle B--Relief From Imports Benefiting From The Agreement SEC. 211. <<NOTE: 19 USC 2112 note.>> COMMENCING OF ACTION FOR RELIEF. (a) Filing of Petition.-- (1) In general.--A petition requesting action under this subtitle for the purpose of adjusting to the obligations of the United States under the Agreement may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers that is representative of an industry. The Commission shall transmit a copy of any petition filed under this subsection to the United States Trade Representative. (2) Provisional relief.--An entity filing a petition under this subsection may request that provisional relief be provided as if the petition had been filed under section 202(a) of the Trade Act of 1974. (3) Critical circumstances.--Any allegation that critical circumstances exist shall be included in the petition. (b) Investigation and Determination.-- (1) In general.--Upon the filing of a petition under subsection (a), the Commission, unless subsection (d) applies, shall promptly initiate an investigation to determine whether, as a result of the reduction or elimination of a duty provided for under the Agreement, a Jordanian article is being imported into the United States in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that imports of the Jordanian article alone constitute a substantial cause of serious injury or threat thereof to the domestic industry producing an article that is like, or directly competitive with, the imported article. (2) Causation.--For purposes of this subtitle, a Jordanian article is being imported into the United States in increased quantities as a result of the reduction or elimination of a duty provided for under the Agreement if the reduction or elimination is a cause that contributes significantly to the increase in imports. Such cause need not be equal to or greater than any other cause. (c) Applicable Provisions.--The following provisions of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any investigation initiated under subsection (b): (1) Paragraphs (1)(B) and (3) of subsection (b). (2) Subsection (c). (3) Subsection (d). (d) Articles Exempt From Investigation.--No investigation may be initiated under this section with respect to any Jordanian article if import relief has been provided under this subtitle with respect to that article. SEC. 212. <<NOTE: 19 USC 2112 note.>> COMMISSION ACTION ON PETITION. (a) <<NOTE: Deadline.>> Determination.--By no later than 120 days (180 days if critical circumstances have been alleged) after the date on which an investigation is initiated under section 211(b) with respect to a petition, the Commission shall make the determination required under that section. [[Page 115 STAT. 248]] (b) Additional Finding and Recommendation if Determination Affirmative.--If the determination made by the Commission under subsection (a) with respect to imports of an article is affirmative, the Commission shall find, and recommend to the President in the report required under subsection (c), the amount of import relief that is necessary to remedy or prevent the injury found by the Commission in the determination and to facilitate the efforts of the domestic industry to make a positive adjustment to import competition. The import relief recommended by the Commission under this subsection shall be limited to that described in section 213(c). (c) <<NOTE: Deadline.>> Report to President.--No later than the date that is 30 days after the date on which a determination is made under subsection (a) with respect to an investigation, the Commission shall submit to the President a report that shall include-- (1) a statement of the basis for the determination; (2) dissenting and separate views; and (3) any finding made under subsection (b) regarding import relief. (d) <<NOTE: Federal Register, publication.>> Public Notice.--Upon submitting a report to the President under subsection (c), the Commission shall promptly make public such report (with the exception of information which the Commission determines to be confidential) and shall cause a summary thereof to be published in the Federal Register. (e) Applicable Provisions.--For purposes of this subtitle, the provisions of paragraphs (1), (2), and (3) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be applied with respect to determinations and findings made under this section as if such determinations and findings were made under section 202 of the Trade Act of 1974 (19 U.S.C. 2252). SEC. 213. PROVISION OF RELIEF. <<NOTE: President. 19 USC 2112 note.>> (a) <<NOTE: Deadline.>> In General.--No later than the date that is 30 days after the date on which the President receives the report of the Commission containing an affirmative determination of the Commission under section 212(a), the President shall provide relief from imports of the article that is the subject of such determination to the extent that the President determines necessary to prevent or remedy the injury found by the Commission and to facilitate the efforts of the domestic industry to make a positive adjustment to import competition, unless the President determines that the provision of such relief is not in the national economic interest of the United States or, in extraordinary circumstances, that the provision of such relief would cause serious harm to the national security of the United States. (b) National Economic Interest.--The President may determine under subsection (a) that providing import relief is not in the national economic interest of the United States only if the President finds that taking such action would have an adverse impact on the United States economy clearly greater than the benefits of taking such action. (c) Nature of Relief.--The import relief (including provisional relief) that the President is authorized to provide under this subtitle with respect to imports of an article is-- (1) the suspension of any further reduction provided for under the United States Schedule to Annex 2.1 of the Agreement in the duty imposed on that article; [[Page 115 STAT. 249]] (2) an increase in the rate of duty imposed on such article to a level that does not exceed the lesser of-- (A) the column 1 general rate of duty imposed under the HTS on like articles at the time the import relief is provided; or (B) the column 1 general rate of duty imposed under the HTS on like articles on the day before the date on which the Agreement enters into force; or (3) in the case of a duty applied on a seasonal basis to that article, an increase in the rate of duty imposed on the article to a level that does not exceed the column 1 general rate of duty imposed under the HTS on the article for the corresponding season occurring immediately before the date on which the Agreement enters into force. (d) Period of Relief.--The import relief that the President is authorized to provide under this section may not exceed 4 years. (e) Rate After Termination of Import Relief.--When import relief under this subtitle is terminated with respect to an article-- (1) the rate of duty on that article after such termination and on or before December 31 of the year in which termination occurs shall be the rate that, according to the United States Schedule to Annex 2.1 of the Agreement for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the import relief action under section 211; and (2) the tariff treatment for that article after December 31 of the year in which termination occurs shall be, at the discretion of the President, either-- (A) the rate of duty conforming to the applicable rate set out in the United States Schedule to Annex 2.1; or (B) the rate of duty resulting from the elimination of the tariff in equal annual stages ending on the date set out in the United States Schedule to Annex 2.1 for the elimination of the tariff. SEC. 214. <<NOTE: 19 USC 2112 note.>> TERMINATION OF RELIEF AUTHORITY. (a) General Rule.--Except as provided in subsection (b), no import relief may be provided under this subtitle after the date that is 15 years after the date on which the Agreement enters into force. (b) Exception.--Import relief may be provided under this subtitle in the case of a Jordanian article after the date on which such relief would, but for this subsection, terminate under subsection (a), but only if the Government of Jordan consents to such provision. SEC. 215. <<NOTE: 19 USC 2112 note.>> COMPENSATION AUTHORITY. For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any import relief provided by the President under section 213 shall be treated as action taken under chapter 1 of title II of such Act. SEC. 216. <<NOTE: 19 USC 2112 note.>> SUBMISSION OF PETITIONS. A petition for import relief may be submitted to the Commission under-- (1) this subtitle; (2) chapter 1 of title II of the Trade Act of 1974; or [[Page 115 STAT. 250]] (3) under both this subtitle and such chapter 1 at the same time, in which case the Commission shall consider such petitions jointly. Subtitle C--Cases Under Title II of The Trade Act of 1974 SEC. 221. <<NOTE: 19 USC 2112 note.>> FINDINGS AND ACTION ON JORDANIAN IMPORTS. (a) Effect of Imports.--If, in any investigation initiated under chapter 1 of title II of the Trade Act of 1974, the Commission makes an affirmative determination (or a determination which the President may treat as an affirmative determination under such chapter by reason of section 330(d) of the Tariff Act of 1930), the Commission shall also find (and report to the President at the time such injury determination is submitted to the President) whether imports of the article from Jordan are a substantial cause of serious injury or threat thereof. (b) Presidential Action Regarding Jordanian Imports.--In determining the nature and extent of action to be taken under chapter 1 of title II of the Trade Act of 1974, the President shall determine whether imports from Jordan are a substantial cause of the serious injury found by the Commission and, if such determination is in the negative, may exclude from such action imports from Jordan. SEC. 222. <<NOTE: 19 USC 2112 note.>> TECHNICAL AMENDMENT. Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended in the first sentence-- (1) by striking ``and part 1'' and inserting ``, part 1''; and (2) by inserting before the period at the end ``, and title II of the United States-Jordan Free Trade Area Implementation Act''. TITLE III--TEMPORARY ENTRY SEC. 301. <<NOTE: 19 USC 2112 note.>> NONIMMIGRANT TRADERS AND INVESTORS. Upon the basis of reciprocity secured by the Agreement, an alien who is a national of Jordan (and any spouse or child (as defined in section 101(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1101(b)(1)) of the alien, if accompanying or following to join the alien) shall be considered as entitled to enter the United States under and in pursuance of the provisions of the Agreement as a nonimmigrant described in section 101(a)(15)(E) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(E)), if the entry is solely for a purpose described in clause (i) or (ii) of such section and the alien is otherwise admissible to the United States as such a nonimmigrant. TITLE IV--GENERAL PROVISIONS SEC. 401. <<NOTE: 19 USC 2112 note.>> RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW. (a) Relationship of Agreement to United States Law.-- [[Page 115 STAT. 251]] (1) United states law to prevail in conflict.--No provision of the Agreement, nor the application of any such provision to any person or circumstance, that is inconsistent with any law of the United States shall have effect. (2) Construction.--Nothing in this Act shall be construed-- (A) to amend or modify any law of the United States; or (B) to limit any authority conferred under any law of the United States, unless specifically provided for in this Act. (b) Relationship of Agreement to State Law.-- (1) Legal challenge.--No State law, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement, except in an action brought by the United States for the purpose of declaring such law or application invalid. (2) Definition of state law.--For purposes of this subsection, the term ``State law'' includes-- (A) any law of a political subdivision of a State; and (B) any State law regulating or taxing the business of insurance. (c) Effect of Agreement With Respect to Private Remedies.--No person other than the United States-- (1) shall have any cause of action or defense under the Agreement; or (2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of the United States, any State, or any political subdivision of a State on the ground that such action or inaction is inconsistent with the Agreement. SEC. 402. <<NOTE: 19 USC 2112 note.>> AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated for each fiscal year after fiscal year 2001 to the Department of Commerce not more than $100,000 for the payment of the United States share of the expenses incurred in dispute settlement proceedings under article 17 of the Agreement. SEC. 403. <<NOTE: 19 USC 2112 note.>> IMPLEMENTING REGULATIONS. After the date of enactment of this Act-- (1) the President may proclaim such actions; and (2) other appropriate officers of the United States may issue such regulations, as may be necessary to ensure that any provision of this Act, or amendment made by this Act, that takes effect on the date the Agreement enters into force is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date the Agreement enters into force. SEC. 404. <<NOTE: 19 USC 2112 note.>> EFFECTIVE DATES; EFFECT OF TERMINATION. (a) Effective Dates.--Except as provided in subsection (b), the provisions of this Act and the amendments made by this Act take effect on the date the Agreement enters into force. (b) Exceptions.--Sections 1 through 3 and this title take effect on the date of the enactment of this Act. [[Page 115 STAT. 252]] (c) Termination of the Agreement.--On the date on which the Agreement ceases to be in force, the provisions of this Act (other than this subsection) and the amendments made by this Act, shall cease to be effective. Approved September 28, 2001. LEGISLATIVE HISTORY--H.R. 2603 (S. 643): --------------------------------------------------------------------------- HOUSE REPORTS: No. 107-176, Pt. 1 (Comm. on Ways and Means). SENATE REPORTS: No. 107-59 accompanying S. 643 (Comm. on Finance). CONGRESSIONAL RECORD, Vol. 147 (2001): July 31, considered and passed House. Sept. 24, considered and passed Senate. <all>