[108th Congress Public Law 302]
[From the U.S. Government Printing Office]
[DOCID: f:publ302.108]
[[Page 118 STAT. 1103]]
Public Law 108-302
108th Congress
An Act
To implement the United States-Morocco Free Trade
Agreement. <<NOTE: Aug. 17, 2004 - [H.R. 4842]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: United States-
Morocco Free Trade Agreement Implementation Act. 19 USC 3805 note.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``United States-
Morocco Free Trade Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Enforcement relating to trade in textile and apparel goods.
Sec. 205. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Business confidential information.
[[Page 118 STAT. 1104]]
SEC. 2. <<NOTE: 19 USC 3805 note.>> PURPOSES.
The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement
between the United States and Morocco entered into under the
authority of section 2103(b) of the Bipartisan Trade Promotion
Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between the
United States and Morocco for their mutual benefit;
(3) to establish free trade between the 2 nations through
the reduction and elimination of barriers to trade in goods and
services and to investment; and
(4) to lay the foundation for further cooperation to expand
and enhance the benefits of such Agreement.
SEC. 3. <<NOTE: 19 USC 3805 note.>> DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the United
States-Morocco Free Trade Agreement approved by Congress under
section 101(a)(1).
(2) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(3) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing
referred to in section 101(d)(4) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(4)).
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. <<NOTE: 19 USC 3805 note.>> APPROVAL AND ENTRY INTO FORCE OF
THE AGREEMENT.
(a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority Act
of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19
U.S.C. 2191), Congress approves--
(1) the United States-Morocco Free Trade Agreement entered
into on June 15, 2004, with Morocco and submitted to Congress on
July 15, 2004; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on July
15, 2004.
(b) <<NOTE: President. Effective date.>> Conditions for Entry Into
Force of the Agreement.--At such time as the President determines that
Morocco has taken measures necessary to bring it into compliance with
those provisions of the Agreement that are to take effect on the date on
which the Agreement enters into force, the President is authorized to
exchange notes with the Government of Morocco providing for the entry
into force, on or after January 1, 2005, of the Agreement with respect
to the United States.
SEC. 102. <<NOTE: 19 USC 3805 note.>> RELATIONSHIP OF THE AGREEMENT TO
UNITED STATES AND STATE LAW.
(a) Relationship of Agreement to United States Law.--
(1) United states law to prevail in conflict.--No provision
of the Agreement, nor the application of any such provision
[[Page 118 STAT. 1105]]
to any person or circumstance, which 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 by virtue of congressional approval thereof; 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. 103. <<NOTE: 19 USC 3805 note.>> IMPLEMENTING ACTIONS IN
ANTICIPATION OF ENTRY INTO FORCE AND INITIAL REGULATIONS.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the enactment
of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government 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.
(2) Effective date of certain proclaimed actions.--Any
action proclaimed by the President under the authority of this
Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the 15th
day after the date on which the text of the proclamation is
published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction in
paragraph (2) on the taking effect of proclaimed actions is
waived to the extent that the application of such restriction
would prevent the taking effect on the date the Agreement enters
into force of any action proclaimed under this section.
[[Page 118 STAT. 1106]]
(b) <<NOTE: Deadlines.>> Initial Regulations.--Initial regulations
necessary or appropriate to carry out the actions required by or
authorized under this Act or proposed in the statement of administrative
action submitted under section 101(a)(2) to implement the Agreement
shall, to the maximum extent feasible, be issued within 1 year after the
date on which the Agreement enters into force. In the case of any
implementing action that takes effect on a date after the date on which
the Agreement enters into force, initial regulations to carry out that
action shall, to the maximum extent feasible, be issued within 1 year
after such effective date.
SEC. 104. <<NOTE: President. 19 USC 3805 note.>> CONSULTATION AND
LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED
ACTIONS.
If a provision of this Act provides that the implementation of an
action by the President by proclamation is subject to the consultation
and layover requirements of this section, such action may be proclaimed
only if--
(1) the President has obtained advice regarding the proposed
action from--
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) the United States International Trade
Commission;
(2) the President has submitted to the Committee on Finance
of the Senate and the Committee on Ways and Means of the House
of Representatives a report that sets forth--
(A) the action proposed to be proclaimed and the
reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first day
on which the requirements set forth in paragraphs (1) and (2)
have been met has expired; and
(4) the President has consulted with such Committees
regarding the proposed action during the period referred to in
paragraph (3).
SEC. 105. <<NOTE: 19 USC 3805 note. President.>> ADMINISTRATION OF
DISPUTE SETTLEMENT PROCEEDINGS.
(a) Establishment or Designation of Office.--The President is
authorized to establish or designate within the Department of Commerce
an office that shall be responsible for providing administrative
assistance to panels established under chapter 20 of the Agreement. The
office may not be considered to be an agency for purposes of section 552
of title 5, United States Code.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year after fiscal year 2004 to the
Department of Commerce such sums as may be necessary for the
establishment and operations of the office under subsection (a) and for
the payment of the United States share of the expenses of panels
established under chapter 20 of the Agreement.
SEC. 106. <<NOTE: 19 USC 3805 note.>> ARBITRATION OF CLAIMS.
The United States is authorized to resolve any claim against the
United States covered by article 10.15.1(a)(i)(C) or article
10.15.1(b)(i)(C) of the Agreement, pursuant to the Investor-State
Dispute Settlement procedures set forth in section B of chapter 10 of
the Agreement.
[[Page 118 STAT. 1107]]
SEC. 107. <<NOTE: 19 USC 3805 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.
(c) Termination of the Agreement.--On the date on which the
Agreement terminates, the provisions of this Act (other than this
subsection) and the amendments made by this Act shall cease to be
effective.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. <<NOTE: 19 USC 3805 note.>> TARIFF MODIFICATIONS.
(a) Tariff Modifications Provided for in the Agreement.--
(1) Proclamation authority.--The President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise
treatment, or
(C) such additional duties,
as the President determines to be necessary or appropriate to
carry out or apply articles 2.3, 2.5, 2.6, 4.1, 4.3.9, 4.3.10,
4.3.11, 4.3.13, 4.3.14, and 4.3.15, and Annex IV of the
Agreement.
(2) <<NOTE: President. Termination date.>> Effect on
moroccan gsp status.--Notwithstanding section 502(a)(1) of the
Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the President shall
terminate the designation of Morocco as a beneficiary developing
country for purposes of title V of the Trade Act of 1974 on the
date of entry into force of the Agreement.
(b) Other Tariff Modifications.--Subject to the consultation and
layover provisions of section 104, the President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to
with Morocco regarding the staging of any duty treatment set
forth in Annex IV of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) 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 Morocco provided for by the Agreement.
(c) Conversion to Ad Valorem Rates.--For purposes of subsections (a)
and (b), with respect to any good for which the base rate in the Tariff
Schedule of the United States to Annex IV of the Agreement is a specific
or compound rate of duty, the President may substitute for the base rate
an ad valorem rate that the President determines to be equivalent to the
base rate.
SEC. 202. <<NOTE: 19 USC 3805 note.>> ADDITIONAL DUTIES ON CERTAIN
AGRICULTURAL GOODS.
(a) Definitions.--In this section:
(1) Agricultural safeguard good.--The term ``agricultural
safeguard good'' means a good--
(A) that qualifies as an originating good under
section 203;
[[Page 118 STAT. 1108]]
(B) that is included in the U.S. Agricultural
Safeguard List set forth in Annex 3-A of the Agreement;
and
(C) for which a claim for preferential treatment
under the Agreement has been made.
(2) Applicable ntr (mfn) rate of duty.--The term
``applicable NTR (MFN) rate of duty'' means, with respect to an
agricultural safeguard good, a rate of duty that is the lesser
of--
(A) the column 1 general rate of duty that would
have been imposed under the HTS on the same agricultural
safeguard good entered, without a claim for preferential
tariff treatment, on the date on which the additional
duty is imposed under subsection (b); or
(B) the column 1 general rate of duty that would
have been imposed under the HTS on the same agricultural
safeguard good entered, without a claim for preferential
tariff treatment, on December 31, 2004.
(3) F.O.B.--The term ``F.O.B.'' means free on board,
regardless of the mode of transportation, at the point of direct
shipment by the seller to the buyer.
(4) Schedule rate of duty.--The term ``schedule rate of
duty'' means, with respect to an agricultural safeguard good,
the rate of duty for that good set out in the Tariff Schedule of
the United States to Annex IV of the Agreement.
(5) Trigger price.--The ``trigger price'' for a good means
the trigger price indicated for that good in the U.S.
Agricultural Safeguard List set forth in Annex 3-A of the
Agreement or any amendment thereto.
(6) Unit import price.--The ``unit import price'' of a good
means the price of the good determined on the basis of the
F.O.B. import price of the good, expressed in either dollars per
kilogram or dollars per liter, whichever unit of measure is
indicated for the good in the U.S. Agricultural Safeguard List
set forth in Annex 3-A of the Agreement.
(b) Additional Duties on Agricultural Safeguard Goods.--
(1) Additional duties.--In addition to any duty proclaimed
under subsection (a) or (b) of section 201, and subject to
paragraphs (3), (4), (5), and (6) of this subsection, the
Secretary of the Treasury shall assess a duty on an agricultural
safeguard good, in the amount determined under paragraph (2), if
the Secretary determines that the unit import price of the good
when it enters the United States is less than the trigger price
for that good.
(2) Calculation of additional duty.--The additional duty
assessed under this subsection on an agricultural safeguard good
shall be an amount determined in accordance with the following
table:
If the excess of the trigger price The additional duty is an
over
the unit import price is: amount equal to:
Not more than 10 percent of the 0.
trigger price........................
[[Page 118 STAT. 1109]]
More than 10 percent but not more than 30 percent of the excess of the applicable NTR (MFN) rate of duty
40 percent of the trigger price...... over the schedule rate of duty.
More than 40 percent but not more than 50 percent of such excess.
60 percent of the trigger price......
More than 60 percent but not more than 70 percent of such excess.
75 percent of the trigger price......
More than 75 percent of the trigger 100 percent of such excess.
price................................
(3) Exceptions.--No additional duty shall be assessed on a
good under this subsection if, at the time of entry, the good is
subject to import relief under--
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974
(19 U.S.C. 2251 et seq.).
(4) Termination.--The assessment of an additional duty on a
good under this subsection shall cease to apply to that good on
the date on which duty-free treatment must be provided to that
good under the Tariff Schedule of the United States to Annex IV
of the Agreement.
(5) Tariff-rate quotas.--If an agricultural safeguard good
is subject to a tariff-rate quota under the Agreement, any
additional duty assessed under this subsection shall be applied
only to over-quota imports of the good.
(6) <<NOTE: Deadline.>> Notice.--Not later than 60 days
after the date on which the Secretary of the Treasury assesses
an additional duty on a good under this subsection, the
Secretary shall notify the Government of Morocco in writing of
such action and shall provide to the Government of Morocco data
supporting the assessment of additional duties.
SEC. 203. <<NOTE: 19 USC 3805 note.>> RULES OF ORIGIN.
(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a heading or
sub-heading, such reference shall be a reference to a heading or
subheading of the HTS.
(b) Originating Goods.--
(1) In general.--For purposes of this Act and for purposes
of implementing the preferential tariff treatment provided for
under the Agreement, a good is an originating good if--
(A) the good is imported directly--
(i) from the territory of Morocco into the
territory of the United States; or
(ii) from the territory of the United States
into the territory of Morocco; and
(B)(i) the good is a good wholly the growth,
product, or manufacture of Morocco or the United States,
or both;
(ii) the good (other than a good to which clause
(iii) applies) is a new or different article of commerce
that has been grown, produced, or manufactured in
Morocco, the United States, or both, and meets the
requirements of paragraph (2); or
(iii)(I) the good is a good covered by Annex 4-A or
5-A of the Agreement;
[[Page 118 STAT. 1110]]
(II)(aa) each of the nonoriginating materials used
in the production of the good undergoes an applicable
change in tariff classification specified in such Annex
as a result of production occurring entirely in the
territory of Morocco or the United States, or both; or
(bb) the good otherwise satisfies the requirements
specified in such Annex; and
(III) the good satisfies all other applicable
requirements of this section.
(2) Requirements.--A good described in paragraph (1)(B)(ii)
is an originating good only if the sum of--
(A) the value of each material produced in the
territory of Morocco or the United States, or both, and
(B) the direct costs of processing operations
performed in the territory of Morocco or the United
States, or both,
is not less than 35 percent of the appraised value of the good
at the time the good is entered into the territory of the United
States.
(c) Cumulation.--
(1) Originating good or material incorporated into goods of
other country.--An originating good or a material produced in
the territory of Morocco or the United States, or both, that is
incorporated into a good in the territory of the other country
shall be considered to originate in the territory of the other
country.
(2) Multiple procedures.--A good that is grown, produced, or
manufactured in the territory of Morocco or the United States,
or both, by 1 or more producers, is an originating good if the
good satisfies the requirements of subsection (b) and all other
applicable requirements of this section.
(d) Value of Materials.--
(1) In general.--Except as provided in paragraph (2), the
value of a material produced in the territory of Morocco or the
United States, or both, includes the following:
(A) The price actually paid or payable for the
material by the producer of such good.
(B) The freight, insurance, packing, and all other
costs incurred in transporting the material to the
producer's plant, if such costs are not included in the
price referred to in subparagraph (A).
(C) The cost of waste or spoilage resulting from the
use of the material in the growth, production, or
manufacture of the good, less the value of recoverable
scrap.
(D) Taxes or customs duties imposed on the material
by Morocco, the United States, or both, if the taxes or
customs duties are not remitted upon exportation from
the territory of Morocco or the United States, as the
case may be.
(2) Exception.--If the relationship between the producer of
a good and the seller of a material influenced the price
actually paid or payable for the material, or if there is no
price actually paid or payable by the producer for the material,
the value of the material produced in the territory of Morocco
or the United States, or both, includes the following:
(A) All expenses incurred in the growth, production,
or manufacture of the material, including general
expenses.
(B) A reasonable amount for profit.
[[Page 118 STAT. 1111]]
(C) Freight, insurance, packing, and all other costs
incurred in transporting the material to the producer's
plant.
(e) Packaging and Packing Materials and Containers for Retail Sale
and for Shipment.--Packaging and packing materials and containers for
retail sale and shipment shall be disregarded in determining whether a
good qualifies as an originating good, except to the
extent that the value of such packaging and packing materials and
containers have been included in meeting the requirements set forth in
subsection (b)(2).
(f) Indirect Materials.--Indirect materials shall be disregarded in
determining whether a good qualifies as an originating good, except that
the cost of such indirect materials may be included in meeting the
requirements set forth in subsection (b)(2).
(g) Transit and Transshipment.--A good shall not be considered to
meet the requirement of subsection (b)(1)(A) if, after exportation from
the territory of Morocco or the United States, the good undergoes
production, manufacturing, or any other operation outside the territory
of Morocco or the United States, other than unloading, reloading, or any
other operation necessary to preserve the good in good condition or to
transport the good to the territory of the United States or Morocco.
(h) Textile and Apparel Goods.--
(1) De minimis amounts of nonoriginating materials.--
(A) In general.--Except as provided in subparagraph
(B), a textile or apparel good that is not an
originating good because certain fibers or yarns used in
the production of the component of the good that
determines the tariff classification of the good do not
undergo an applicable change in tariff classification
set out in Annex 4-A of the Agreement shall be
considered to be an originating good if the total weight
of all such fibers or yarns in that component is not
more than 7 percent of the total weight of that
component.
(B) Certain textile or apparel goods.--A textile or
apparel good containing elastomeric yarns in the
component of the good that determines the tariff
classification of the good shall be considered to be an
originating good only if such yarns are wholly formed in
the territory of Morocco or the United States.
(C) Yarn, fabric, or group of fibers.--For purposes
of this paragraph, in the case of a textile or apparel
good that is a yarn, fabric, or group of fibers, the
term ``component of the good that determines the tariff
classification of the good'' means all of the fibers in
the yarn, fabric, or group of fibers.
(2) Goods put up in sets for retail sale.--Notwithstanding
the rules set forth in Annex 4-A of the Agreement, textile or
apparel goods classifiable as goods put up in sets for retail
sale as provided for in General Rule of Interpretation 3 of the
HTS shall not be considered to be originating goods unless each
of the goods in the set is an originating good or the total
value of the nonoriginating goods in the set does not exceed 10
percent of the value of the set determined for purposes of
assessing customs duties.
(i) Definitions.--In this section:
(1) Direct costs of processing operations.--
[[Page 118 STAT. 1112]]
(A) In general.--The term ``direct costs of
processing operations'', with respect to a good,
includes, to the extent they are includable in the
appraised value of the good when imported into Morocco
or the United States, as the case may be, the following:
(i) All actual labor costs involved in the
growth, production, or manufacture of the good,
including fringe benefits, on-the-job training,
and the costs of engineering, supervisory, quality
control, and similar personnel.
(ii) Tools, dies, molds, and other indirect
materials, and depreciation on machinery and
equipment that are allocable to the good.
(iii) Research, development, design,
engineering, and blueprint costs, to the extent
that they are allocable to the good.
(iv) Costs of inspecting and testing the good.
(v) Costs of packaging the good for export to
the territory of the other country.
(B) Exceptions.--The term ``direct costs of
processing operations'' does not include costs that are
not directly attributable to a good or are not costs of
growth, production, or manufacture of the good, such
as--
(i) profit; and
(ii) general expenses of doing business that
are either not allocable to the good or are not
related to the growth, production, or manufacture
of the good, such as administrative salaries,
casualty and liability insurance, advertising, and
sales staff salaries, commissions, or expenses.
(2) Good.--The term ``good'' means any merchandise, product,
article, or material.
(3) Good wholly the growth, product, or manufacture of
morocco, the united states, or both.--The term ``good wholly the
growth, product, or manufacture of Morocco, the United States,
or both'' means--
(A) a mineral good extracted in the territory of
Morocco or the United States, or both;
(B) a vegetable good, as such a good is provided for
in the HTS, harvested in the territory of Morocco or the
United States, or both;
(C) a live animal born and raised in the territory
of Morocco or the United States, or both;
(D) a good obtained from live animals raised in the
territory of Morocco or the United States, or both;
(E) a good obtained from hunting, trapping, or
fishing in the territory of Morocco or the United
States, or both;
(F) a good (fish, shellfish, and other marine life)
taken from the sea by vessels registered or recorded
with Morocco or the United States and flying the flag of
that country;
(G) a good produced from goods referred to in
subparagraph (F) on board factory ships registered or
recorded with Morocco or the United States and flying
the flag of that country;
(H) a good taken by Morocco or the United States or
a person of Morocco or the United States from the seabed
or beneath the seabed outside territorial waters,
[[Page 118 STAT. 1113]]
if Morocco or the United States has rights to exploit
such seabed;
(I) a good taken from outer space, if such good is
obtained by Morocco or the United States or a person of
Morocco or the United States and not processed in the
territory of a country other than Morocco or the United
States;
(J) waste and scrap derived from--
(i) production or manufacture in the territory
of Morocco or the United States, or both; or
(ii) used goods collected in the territory of
Morocco or the United States, or both, if such
goods are fit only for the recovery of raw
materials;
(K) a recovered good derived in the territory of
Morocco or the United States from used goods and
utilized in the territory of that country in the
production of remanufactured goods; and
(L) a good produced in the territory of Morocco or
the United States, or both, exclusively--
(i) from goods referred to in subparagraphs
(A) through (J), or
(ii) from the derivatives of goods referred to
in clause (i),
at any stage of production.
(4) Indirect material.--The term ``indirect material'' means
a good used in the growth, production, manufacture, testing, or
inspection of a good but not physically incorporated into the
good, or a good used in the maintenance of buildings or the
operation of equipment associated with the growth, production,
or manufacture of a good, including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the
maintenance of equipment and buildings;
(D) lubricants, greases, compounding materials, and
other materials used in the growth, production, or
manufacture of a good or used to operate equipment and
buildings;
(E) gloves, glasses, footwear, clothing, safety
equipment, and supplies;
(F) equipment, devices, and supplies used for
testing or inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into
the good but the use of which in the growth, production,
or manufacture of the good can reasonably be
demonstrated to be a part of that growth, production, or
manufacture.
(5) Material.--The term ``material'' means a good, including
a part or ingredient, that is used in the growth, production, or
manufacture of another good that is a new or different article
of commerce that has been grown, produced, or manufactured in
Morocco, the United States, or both.
(6) Material produced in the territory of morocco or the
united states, or both.--The term ``material produced in the
territory of Morocco or the United States, or both'' means a
good that is either wholly the growth, product, or manufacture
of Morocco, the United States, or both, or a new or different
article of commerce that has been grown, produced,
[[Page 118 STAT. 1114]]
or manufactured in the territory of Morocco or the United
States, or both.
(7) New or different article of commerce.--
(A) In general.--The term ``new or different article
of commerce'' means, except as provided in subparagraph
(B), a good that--
(i) has been substantially transformed from a
good or material that is not wholly the growth,
product, or manufacture of Morocco, the United
States, or both; and
(ii) has a new name, character, or use
distinct from the good or material from which it
was transformed.
(B) Exception.--A good shall not be considered a new
or different article of commerce by virtue of having
undergone simple combining or packaging operations, or
mere dilution with water or another substance that does
not materially alter the characteristics of the good.
(8) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that result from--
(A) the complete disassembly of used goods into
individual parts; and
(B) the cleaning, inspecting, testing, or other
processing of those parts that is necessary for
improvement to sound working condition.
(9) Remanufactured good.--The term ``remanufactured good''
means an industrial good that is assembled in the territory of
Morocco or the United States and that--
(A) is entirely or partially comprised of recovered
goods;
(B) has a similar life expectancy to, and meets
similar performance standards as, a like good that is
new; and
(C) enjoys a factory warranty similar to that of a
like good that is new.
(10) Simple combining or packaging operations.--The term
``simple combining or packaging operations'' means operations
such as adding batteries to electronic devices, fitting together
a small number of components by bolting, gluing, or soldering,
or packing or repacking components together.
(11) Substantially transformed.--The term ``substantially
transformed'' means, with
respect to a good or material, changed as the result of a manufacturing
or processing operation so that--
(A)(i) the good or material is converted from a good
that has multiple uses into a good or material that has
limited uses;
(ii) the physical properties of the good or material
are changed to a significant extent; or
(iii) the operation undergone by the good or
material is complex by reason of the number of processes
and materials involved and the time and level of skill
required to perform those processes; and
(B) the good or material loses its separate identity
in the manufacturing or processing operation.
(j) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim, as
part of the HTS--
[[Page 118 STAT. 1115]]
(A) the provisions set out in Annex 4-A and Annex 5-
A of the Agreement; and
(B) any additional subordinate category necessary to
carry out this title consistent with the Agreement.
(2) Modifications.--
(A) In general.--Subject to the consultation and
layover provisions of section 104, the President may
proclaim modifications to the provisions proclaimed
under the authority of paragraph (1)(A), other than
provisions of chapters 50 through 63 of the HTS, as
included in Annex 4-A of the Agreement.
(B) Additional proclamations.--Notwithstanding
subparagraph (A), and subject to the consultation and
layover provisions of section 104, the President may
proclaim--
(i) modifications to the provisions proclaimed
under the authority of paragraph (1)(A) as are
necessary to implement an agreement with Morocco
pursuant to article 4.3.6 of the Agreement; and
(ii) before the end of the 1-year period
beginning on the date of the enactment of this
Act, modifications to correct any typographical,
clerical, or other nonsubstantive technical error
regarding the provisions of chapters 50 through 63
of the HTS, as included in Annex 4-A of the
Agreement.
SEC. 204. <<NOTE: 19 USC 3805 note.>> ENFORCEMENT RELATING TO TRADE IN
TEXTILE AND APPAREL GOODS.
(a) Action During Verification.--
(1) In general.--If the Secretary of the Treasury requests
the Government of Morocco to conduct a verification pursuant to
article 4.4 of the Agreement for purposes of making a
determination under paragraph (2), the President may direct the
Secretary to take appropriate action described in subsection (b)
while the verification is being conducted.
(2) Determination.--A determination under this paragraph is
a determination--
(A) that an exporter or producer in Morocco is
complying with applicable customs laws, regulations,
procedures, requirements, or practices affecting trade
in textile or apparel goods; or
(B) that a claim that a textile or apparel good
exported or produced by such exporter or producer--
(i) qualifies as an originating good under
section 203 of this Act, or
(ii) is a good of Morocco,
is accurate.
(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of liquidation of the entry of any textile or
apparel good exported or produced by the person that is the
subject of a verification referred to in subsection (a)(1)
regarding compliance described in subsection (a)(2)(A), in a
case in which the request for verification was based on a
reasonable suspicion of unlawful activity related to such goods;
and
[[Page 118 STAT. 1116]]
(2) suspension of liquidation of the entry of a textile or
apparel good for which a claim has been made that is the subject
of a verification referred to in subsection (a)(1) regarding a
claim described in subsection (a)(2)(B).
(c) Action When Information is Insufficient.--If the Secretary of
the Treasury determines that the information obtained within 12 months
after making a request for a verification under subsection (a)(1) is
insufficient to make a determination under subsection (a)(2), the
President may direct the Secretary to take appropriate action described
in subsection (d) until such time as the Secretary receives information
sufficient to make a determination under subsection (a)(2) or until such
earlier date as the President may direct.
(d) Appropriate Action Described.--Appropriate action referred to in
subsection (c) includes--
(1) publication of the name and address of the person that
is the subject of the verification;
(2) denial of preferential tariff treatment under the
Agreement to--
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification
referred to in subsection (a)(1) regarding compliance
described in subsection (a)(2)(A); or
(B) a textile or apparel good for which a claim has
been made that is the subject of a verification referred
to in subsection (a)(1) regarding a claim described in
subsection (a)(2)(B); and
(3) denial of entry into the United States of--
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification
referred to in subsection (a)(1) regarding compliance
described in subsection (a)(2)(A); or
(B) a textile or apparel good for which a claim has
been made that is the subject of a verification referred
to in subsection (a)(1) regarding a claim described in
subsection (a)(2)(B).
SEC. 205. <<NOTE: 19 USC 3805 note.>> REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations as
may be necessary to carry out--
(1) subsections (a) through (i) of section 203;
(2) amendments to existing law made by the subsections
referred to in paragraph (1); and
(3) proclamations issued under section 203(j).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. <<NOTE: 19 USC 3805 note.>> DEFINITIONS.
In this title:
(1) Moroccan article.--The term ``Moroccan article'' means
an article that qualifies as an originating good under section
203(b) of this Act or receives preferential tariff treatment
under paragraphs 9 through 15 of article 4.3 of the Agreement.
(2) Moroccan textile or apparel article.--The term
``Moroccan textile or apparel article'' means an article that--
[[Page 118 STAT. 1117]]
(A) is listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4)
of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(4)); and
(B) is a Moroccan article.
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.
Subtitle A--Relief From Imports Benefiting From the Agreement
SEC. 311. <<NOTE: 19 USC 3805 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 (19 U.S.C. 2252(a)).
(3) Critical circumstances.--Any allegation that critical
circumstances exist shall be included in the petition.
(b) Investigation and Determination.--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 Moroccan 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 Moroccan
article 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.
(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).
(4) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation may be
initiated under this section with respect to any Moroccan article if,
after the date on which the Agreement enters into force, import relief
has been
provided with respect to that Moroccan article under this subtitle.
SEC. 312. <<NOTE: 19 USC 3805 note. Deadline.>> COMMISSION ACTION ON
PETITION.
(a) Determination.--Not later than 120 days (180 days if critical
circumstances have been alleged) after the date on which an
investigation is initiated under section 311(b) with respect to a
petition, the Commission shall make the determination required under
that section.
[[Page 118 STAT. 1118]]
(b) 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) (1), (2), and (3)) 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).
(c) 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, or
if the President may consider a determination of the Commission to be an
affirmative determination as provided for under paragraph (1) of section
330(d) of the Tariff Act of 1930) (19 U.S.C. 1330(d)), the Commission
shall find, and recommend to the President in the report required under
subsection (d), 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 313(c). Only those members of the Commission who voted in the
affirmative under subsection (a) are eligible to vote on the proposed
action to remedy or prevent the injury found by the Commission. Members
of the Commission who did not vote in the affirmative may submit, in the
report required under subsection (d), separate views regarding what
action, if any, should be taken to remedy or prevent the injury.
(d) Report to President.--Not 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 includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is
affirmative, any findings and recommendations for import relief
made under subsection (c) and an explanation of the basis for
each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation
referred to in paragraphs (1) and (2).
(e) <<NOTE: Federal Register, publication.>> Public Notice.--Upon
submitting a report to the President under subsection (d), 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.
SEC. 313. <<NOTE: 19 USC 3805 note. Deadline. President.>> PROVISION OF
RELIEF.
(a) In General.--Not later than the date that is 30 days after the
date on which the President receives the report of the Commission in
which the Commission's determination under section 312(a) is
affirmative, or which contains a determination under section 312(a) that
the President considers to be affirmative under paragraph (1) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the President,
subject to subsection (b), shall provide relief from imports of the
article that is the subject of such determination to the extent that the
President determines necessary to remedy or prevent the injury found by
the Commission and
[[Page 118 STAT. 1119]]
to facilitate the efforts of the domestic industry to make a positive
adjustment to import competition.
(b) Exception.--The President is not required to provide import
relief under this section if the President determines that the provision
of the import relief will not provide greater economic and social
benefits than costs.
(c) Nature of Relief.--
(1) In general.--The import relief (including provisional
relief) that the President is authorized to provide under this
section with respect to imports of an article is as follows:
(A) The suspension of any further reduction provided
for under Annex IV of the Agreement in the duty imposed
on such article.
(B) An increase in the rate of duty imposed on such
article to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed
under the HTS on like articles at the time the
import relief is provided; or
(ii) 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.
(C) In the case of a duty applied on a seasonal
basis to such article, an increase in the
rate of duty imposed on the article to a level that does not exceed the
lesser of--
(i) the column 1 general rate of duty imposed
under the HTS on like articles for the immediately
preceding corresponding season; or
(ii) 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.
(2) <<NOTE: President.>> Progressive liberalization.--If the
period for which import relief is provided under this section is
greater than 1 year, the President shall provide for the
progressive liberalization of such relief at regular intervals
during the period in which the relief is in effect.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import relief
that the President provides under this section may not be in
effect for more than 3 years.
(2) Extension.--
(A) In general.--Subject to subparagraph (C), the
President, after receiving an affirmative determination
from the Commission under subparagraph (B), may extend
the effective period of any import relief provided under
this section if the President determines that--
(i) the import relief continues to be
necessary to remedy or prevent serious injury and
to facilitate adjustment by the domestic industry
to import competition; and
(ii) there is evidence that the industry is
making a positive adjustment to import
competition.
(B) <<NOTE: Deadline.>> Action by commission.--(i)
Upon a petition on behalf of the industry concerned that
is filed with the Commission not earlier than the date
which is 9 months, and not later than the date which is
6 months, before
[[Page 118 STAT. 1120]]
the date any action taken under subsection (a) is to
terminate, the Commission shall conduct an investigation
to determine whether action under this section continues
to be necessary to remedy or prevent serious injury and
to facilitate adjustment by the domestic industry to
import competition and whether there is evidence that
the industry is making a positive adjustment to import
competition.
(ii) <<NOTE: Notice. Federal Register,
publication. Public information.>> The Commission shall
publish notice of the commencement of any proceeding
under this subparagraph in the Federal Register and
shall, within a reasonable time thereafter, hold a
public hearing at which the Commission shall afford
interested parties and consumers an opportunity to be
present, to present evidence, and to respond to the
presentations of other parties and consumers, and
otherwise to be heard.
(iii) <<NOTE: Reports. Deadline.>> The Commission
shall transmit to the President a report on its
investigation and determination under this subparagraph
not later than 60 days before the action under
subsection (a) is to terminate, unless the President
specifies a different date.
(C) Period of import relief.--Any import relief
provided under this section, including any extensions
thereof, may not, in the aggregate, be in effect for
more than 5 years.
(e) Rate After Termination of Import Relief.--When import relief
under this section is terminated with respect to an article, the rate of
duty on that article shall be the rate that would have been in effect,
but for the provision of such relief, on the date on which the relief
terminates.
(f) Articles Exempt From Relief.--No import relief may be provided
under this section on any article that--
(1) is subject to an assessment of additional duty under
section 202(b); or
(2) has been subject to import relief under this subtitle
after the date on which the Agreement enters into force.
SEC. 314. <<NOTE: 19 USC 3805 note.>> TERMINATION OF RELIEF AUTHORITY.
(a) General Rule.--Subject to subsection (b), no import relief may
be provided under this subtitle with respect to a good after the date
that is 5 years after the date on which duty-free treatment must be
provided by the United States to that good pursuant to Annex IV of the
Agreement.
(b) Presidential Determination.--Import relief may be provided under
this subtitle in the case of a Moroccan article after the date on which
such relief would, but for this subsection, terminate under subsection
(a), if the President determines that Morocco has consented to such
relief.
SEC. 315. <<NOTE: 19 USC 3805 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 313
shall be treated as action taken under chapter 1 of title II of such
Act.
SEC. 316. <<NOTE: 19 USC 3805 note.>> CONFIDENTIAL BUSINESS INFORMATION.
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''; and
[[Page 118 STAT. 1121]]
(2) by inserting before the period at the end ``, and title
III of the United States-Morocco Free Trade Agreement
Implementation Act''.
Subtitle B--Textile and Apparel Safeguard Measures
SEC. 321. <<NOTE: President. 19 USC 3805 note.>> COMMENCEMENT OF ACTION
FOR RELIEF.
(a) In General.--A request under this subtitle for the purpose of
adjusting to the obligations of the United States under the Agreement
may be filed with the President by an interested party. Upon the filing
of a request, the President shall review the request to determine, from
information presented in the request, whether to commence consideration
of the request.
(b) <<NOTE: Notice. Federal Register, publication.>> Publication of
Request.--If the President determines that the request under subsection
(a) provides the information necessary for the request to be considered,
the President shall cause to be published in the Federal Register a
notice of commencement of consideration of the request, and notice
seeking public comments regarding the request. The notice shall include
a summary of the request and the dates by which comments and rebuttals
must be received.
SEC. 322. <<NOTE: President. 19 USC 3805 note.>> DETERMINATION AND
PROVISION OF RELIEF.
(a) Determination.--
(1) In general.--If a positive determination is made under
section 321(b), the President shall determine whether, as a
result of the reduction or elimination of a duty under the
Agreement, a Moroccan textile or apparel article is being
imported into the United States in such increased quantities, in
absolute terms or relative to the domestic market for that
article, and under such conditions as to cause serious damage,
or actual threat thereof, to a domestic industry producing an
article that is like, or directly competitive with, the imported
article.
(2) Serious damage.--In making a determination under
paragraph (1), the President--
(A) shall examine the effect of increased imports on
the domestic industry, as reflected in changes in such
relevant economic factors as output, productivity,
utilization of capacity, inventories, market share,
exports, wages, employment, domestic prices, profits,
and investment, none of which is necessarily decisive;
and
(B) shall not consider changes in technology or
consumer preference as factors supporting a
determination of serious damage or actual threat
thereof.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of
the article that is the subject of such determination, as
described in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage and
to facilitate adjustment by the domestic industry to import
competition.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to
[[Page 118 STAT. 1122]]
imports of an article is an increase in the rate of duty imposed
on the 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.
SEC. 323. <<NOTE: 19 USC 3805 note.>> PERIOD OF RELIEF.
(a) In General.--Subject to subsection (b), the import relief that
the President provides under subsection (b) of section 322 may not, in
the aggregate, be in effect for more than 3 years.
(b) Extension.--
(1) In General.--Subject to paragraph (2), the President may
extend the effective period of any import relief provided under
this subtitle for a period of not more than 2 years, if the
President determines that--
(A) the import relief continues to be necessary to
remedy or prevent serious damage and to facilitate
adjustment by the domestic industry to import
competition; and
(B) there is evidence that the industry is making a
positive adjustment to import competition.
(2) Limitation.--Any relief provided under this subtitle,
including any extensions thereof, may not, in the aggregate, be
in effect for more than 5 years.
SEC. 324. <<NOTE: 19 USC 3805 note.>> ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle with
respect to any article if--
(1) the article has been subject to import relief under this
subtitle after the date on which the Agreement enters into
force; or
(2) the article is subject to import relief under chapter 1
of title II of the Trade Act of 1974.
SEC. 325. <<NOTE: 19 USC 3805 note.>> RATE AFTER TERMINATION OF IMPORT
RELIEF.
When import relief under this subtitle is terminated with respect to
an article, the rate of duty on that article shall be the rate that
would have been in effect, but for the provision of such relief, on the
date on which the relief terminates.
SEC. 326. <<NOTE: 19 USC 3805 note.>> TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle with respect to
any article after the date that is 10 years after the date on which
duties on the article are eliminated pursuant to the Agreement.
SEC. 327. <<NOTE: 19 USC 3805 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 this subtitle
shall be treated as action taken under chapter 1 of title II of such
Act.
SEC. 328. <<NOTE: 19 USC 3805 note.>> BUSINESS CONFIDENTIAL INFORMATION.
The President may not release information which is submitted in a
proceeding under this subtitle and which the President considers to be
confidential business information unless the party submitting the
confidential business information had notice, at
[[Page 118 STAT. 1123]]
the time of submission, that such information would be released, or such
party subsequently consents to the release of the information. To the
extent a party submits confidential business information to the
President in a proceeding under this subtitle, the party also shall
submit a nonconfidential version of the information, in which the
confidential business information is summarized or, if necessary,
deleted.
Approved August 17, 2004.
LEGISLATIVE HISTORY--H.R. 4842 (S. 2677):
---------------------------------------------------------------------------
HOUSE REPORTS: No. 108-627 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 150 (2004):
July 22, considered and passed House and Senate.
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