§ 3721. — Treatment of certain textiles and apparel.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC3721]
TITLE 19--CUSTOMS DUTIES
CHAPTER 23--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA
SUBCHAPTER II--TRADE BENEFITS
Sec. 3721. Treatment of certain textiles and apparel
(a) Preferential treatment
Textile and apparel articles described in subsection (b) of this
section that are imported directly into the customs territory of the
United States from a beneficiary sub-Saharan African country described
in section 2466a(c) of this title, shall enter the United States free of
duty and free of any quantitative limitations in accordance with the
provisions set forth in subsection (b) of this section, if the country
has satisfied the requirements set forth in section 3722 of this title.
(b) Products covered
The preferential treatment described in subsection (a) of this
section shall apply only to the following textile and apparel products:
(1) Apparel articles assembled in one or more beneficiary
sub-Saharan African countries
Apparel articles sewn or otherwise assembled in one or more
beneficiary sub-Saharan African countries from fabrics wholly formed
and cut, or from components knit-to-shape, in the United States from
yarns wholly formed in the United States, (including fabrics not
formed from yarns, if such fabrics are classifiable under heading
5602 or 5603 of the Harmonized Tariff Schedule of the United States
and are wholly formed and cut in the United States) that are--
(A) entered under subheading 9802.00.80 of the Harmonized
Tariff Schedule of the United States; or
(B) entered under chapter 61 or 62 of the Harmonized Tariff
Schedule of the United States, if, after such assembly, the
articles would have qualified for entry under subheading
9802.00.80 of the Harmonized Tariff Schedule of the United
States but for the fact that the articles were embroidered or
subjected to stone-washing, enzyme-washing, acid washing, perma-
pressing, oven-baking, bleaching, garment-dyeing, screen
printing, or other similar processes.
(2) Other apparel articles assembled in one or more
beneficiary sub-Saharan African countries
Apparel articles sewn or otherwise assembled in one or more
beneficiary sub-Saharan African countries with thread formed in the
United States from fabrics wholly formed in the United States and
cut in one or more beneficiary sub-Saharan African countries from
yarns wholly formed in the United States, or from components knit-
to-shape in the United States from yarns wholly formed in the United
States, or both (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the
Harmonized Tariff Schedule of the United States and are wholly
formed in the United States).
(3) Apparel articles from regional fabric or yarns
Apparel articles wholly assembled in one or more beneficiary
sub-Saharan African countries from fabric wholly formed in one or
more beneficiary sub-Saharan African countries from yarns
originating either in the United States or one or more beneficiary
sub-Saharan African countries (including fabrics not formed from
yarns, if such fabrics are classified under heading 5602 or 5603 of
the Harmonized Tariff Schedule of the United States and are wholly
formed in one or more beneficiary sub-Saharan African countries), or
from components knit-to-shape in one or more beneficiary sub-Saharan
African countries from yarns originating either in the United States
or one or more beneficiary sub-Saharan African countries, or apparel
articles wholly formed on seamless knitting machines in a
beneficiary sub-Saharan African country from yarns originating
either in the United States or one or more beneficiary sub-Saharan
African countries, subject to the following:
(A) Limitations on benefits
(i) In general
Preferential treatment under this paragraph shall be
extended in the 1-year period beginning on October 1, 2000,
and in each of the seven succeeding 1-year periods, to
imports of apparel articles in an amount not to exceed the
applicable percentage of the aggregate square meter
equivalents of all apparel articles imported into the United
States in the preceding 12-month period for which data are
available.
(ii) Applicable percentage
For purposes of this subparagraph, the term ``applicable
percentage'' means 1.5 percent for the 1-year period
beginning October 1, 2000, increased in each of the seven
succeeding 1-year periods by equal increments, so that for
the period beginning October 1, 2007, the applicable
percentage does not exceed 3.5 percent.
(B) Special rule for lesser developed countries
(i) In general
Subject to subparagraph (A), preferential treatment
under this paragraph shall be extended through September 30,
2004, for apparel articles wholly assembled, or knit-to-
shape and wholly assembled, or both, in one or more lesser
developed beneficiary sub-Saharan African countries
regardless of the country of origin of the fabric or the
yarn used to make such articles.
(ii) Lesser developed beneficiary sub-Saharan
African country
For purposes of clause (i), the term ``lesser developed
beneficiary sub-Saharan African country'' means--
(I) a beneficiary sub-Saharan African country that
had a per capita gross national product of less than
$1,500 in 1998, as measured by the International Bank
for Reconstruction and Development;
(II) Botswana; and
(III) Namibia.
(C) Surge mechanism
(i) Import monitoring
The Secretary of Commerce shall monitor imports of
articles described in this paragraph on a monthly basis to
determine if there has been a surge in imports of such
articles. In order to permit public access to preliminary
international trade data and to facilitate the early
identification of potentially disruptive import surges, the
Director of the Office of Management and Budget may grant an
exception to the publication dates established for the
release of data on United States international trade in
covered articles, if the Director notifies Congress of the
early release of the data.
(ii) Determination of damage or threat thereof
Whenever the Secretary of Commerce determines, based on
the data described in clause (i), or pursuant to a written
request made by an interested party, that there has been a
surge in imports of an article described in this paragraph
from a beneficiary sub-Saharan African country, the
Secretary shall determine whether such article from such
country is being imported in such increased quantities as to
cause serious damage, or threat thereof, to the domestic
industry producing a like or directly competitive article.
If the Secretary's determination is affirmative, the
President shall suspend the duty-free treatment provided for
such article under this paragraph. If the inquiry is
initiated at the request of an interested party, the
Secretary shall make the determination within 60 days after
the date of the request.
(iii) Factors to consider
In determining whether a domestic industry has been
seriously damaged, or is threatened with serious damage, the
Secretary shall examine the effect of the imports on
relevant economic indicators such as domestic production,
sales, market share, capacity utilization, inventories,
employment, profits, exports, prices, and investment.
(iv) Procedure
(I) Initiation
The Secretary of Commerce shall initiate an inquiry
within 10 days after receiving a written request and
supporting information for an inquiry from an interested
party. Notice of initiation of an inquiry shall be
published in the Federal Register.
(II) Participation by interested parties
The Secretary of Commerce shall establish procedures
to ensure participation in the inquiry by interested
parties.
(III) Notice of determination
The Secretary shall publish the determination
described in clause (ii) in the Federal Register.
(IV) Information available
If relevant information is not available on the
record or any party withholds information that has been
requested by the Secretary, the Secretary shall make the
determination on the basis of the facts available. When
the Secretary relies on information submitted in the
inquiry as facts available, the Secretary shall, to the
extent practicable, corroborate the information from
independent sources that are reasonably available to the
Secretary.
(v) Interested party
For purposes of this subparagraph, the term ``interested
party'' means any producer of a like or directly competitive
article, a certified union or recognized union or group of
workers which is representative of an industry engaged in
the manufacture, production, or sale in the United States of
a like or directly competitive article, a trade or business
association representing producers or sellers of like or
directly competitive articles, producers engaged in the
production of essential inputs for like or directly
competitive articles, a certified union or group of workers
which is representative of an industry engaged in the
manufacture, production, or sale of essential inputs for the
like or directly competitive article, or a trade or business
association representing companies engaged in the
manufacture, production, or sale of such essential inputs.
(4) Sweaters knit-to-shape from cashmere or merino wool
(A) Cashmere
Sweaters, in chief weight of cashmere, knit-to-shape in one
or more beneficiary sub-Saharan African countries and
classifiable under subheading 6110.10 of the Harmonized Tariff
Schedule of the United States.
(B) Merino wool
Sweaters, 50 percent or more by weight of wool measuring
21.5 microns in diameter or finer, knit-to-shape in one or more
beneficiary sub-Saharan African countries.
(5) Apparel articles wholly assembled from fabric or yarn
not available in commercial quantities in the United
States
(A) In general
Apparel articles that are both cut (or knit-to-shape) and
sewn or otherwise assembled in one or more beneficiary sub-
Saharan African countries, from fabric or yarn that is not
formed in the United States or a beneficiary sub-Saharan African
country, to the extent that apparel articles of such fabrics or
yarns would be eligible for preferential treatment, without
regard to the source of the fabric or yarn, under Annex 401 to
the NAFTA.
(B) Additional apparel articles
At the request of any interested party and subject to the
following requirements, the President is authorized to proclaim
the treatment provided under subparagraph (A) for yarns or
fabrics not described in subparagraph (A) if--
(i) the President determines that such yarns or fabrics
cannot be supplied by the domestic industry in commercial
quantities in a timely manner;
(ii) the President has obtained advice regarding the
proposed action from the appropriate advisory committee
established under section 2155 of this title and the United
States International Trade Commission;
(iii) within 60 calendar days after the request, the
President has submitted a report to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate that sets forth--
(I) the action proposed to be proclaimed and the
reasons for such action; and
(II) the advice obtained under clause (ii);
(iv) a period of 60 calendar days, beginning with the
first day on which the President has met the requirements of
subclauses (I) and (II) of clause (iii), has expired; and
(v) the President has consulted with such committees
regarding the proposed action during the period referred to
in clause (iii).
(6) Handloomed, handmade, and folklore articles
A handloomed, handmade, or folklore article of a beneficiary
sub-Saharan African country or countries that is certified as such
by the competent authority of such beneficiary country or countries.
For purposes of this paragraph, the President, after consultation
with the beneficiary sub-Saharan African country or countries
concerned, shall determine which, if any, particular textile and
apparel goods of the country (or countries) shall be treated as
being handloomed, handmade, or folklore articles.
(7) Apparel articles assembled in one or more beneficiary
sub-Saharan African countries from United States and
beneficiary sub-Saharan African country components
Apparel articles sewn or otherwise assembled in one or more
beneficiary sub-Saharan African countries with thread formed in the
United States from components cut in the United States and one or
more beneficiary sub-Saharan African countries from fabric wholly
formed in the United States from yarns wholly formed in the United
States, or from components knit-to-shape in the United States and
one or more beneficiary sub-Saharan African countries from yarns
wholly formed in the United States, or both (including fabrics not
formed from yarns, if such fabrics are classifiable under heading
5602 or 5603 of the Harmonized Tariff Schedule of the United
States).
(c) Treatment of quotas on textile and apparel imports from Kenya and
Mauritius
The President shall eliminate the existing quotas on textile and
apparel articles imported into the United States--
(1) from Kenya within 30 days after that country adopts an
effective visa system to prevent unlawful transshipment of textile
and apparel articles and the use of counterfeit documents relating
to the importation of the articles into the United States; and
(2) from Mauritius within 30 days after that country adopts such
a visa system.
The Customs Service shall provide the necessary technical assistance to
Kenya and Mauritius in the development and implementation of the visa
systems.
(d) Special rules
(1) Findings and trimmings
(A) General rule
An article otherwise eligible for preferential treatment
under this section shall not be ineligible for such treatment
because the article contains findings or trimmings of foreign
origin, if the value of such findings and trimmings do not
exceed 25 percent of the cost of the components of the assembled
article. Examples of findings and trimmings are sewing thread,
hooks and eyes, snaps, buttons, ``bow buds'', decorative lace
trim, elastic strips, and zippers, including zipper tapes and
labels. Elastic strips are considered findings or trimmings only
if they are each less than 1 inch in width and used in the
production of brassieres.
(B) Certain interlinings
(i) General rule
An article otherwise eligible for preferential treatment
under this section shall not be ineligible for such
treatment because the article contains certain interlinings
of foreign origin, if the value of such interlinings (and
any findings and trimmings) does not exceed 25 percent of
the cost of the components of the assembled article.
(ii) Interlinings described
Interlinings eligible for the treatment described in
clause (i) include only a chest type plate, a ``hymo''
piece, or ``sleeve header'', of woven or weft-inserted warp
knit construction and of coarse animal hair or man-made
filaments.
(iii) Termination of treatment
The treatment described in this subparagraph shall
terminate if the President makes a determination that United
States manufacturers are producing such interlinings in the
United States in commercial quantities.
(C) Exception
In the case of an article described in subsection (b)(2) of
this section, sewing thread shall not be treated as findings or
trimmings under subparagraph (A).
(2) De minimis rule
An article otherwise eligible for preferential treatment under
this section shall not be ineligible for such treatment because the
article contains fibers or yarns not wholly formed in the United
States or one or more beneficiary sub-Saharan African countries if
the total weight of all such fibers and yarns is not more than 7
percent of the total weight of the article.
(e) Definitions
In this section and section 3722 of this title:
(1) Agreement on textiles and clothing
The term ``Agreement on Textiles and Clothing'' means the
Agreement on Textiles and Clothing referred to in section 3511(d)(4)
of this title.
(2) Beneficiary sub-Saharan African country, etc.
The terms ``beneficiary sub-Saharan African country'' and
``beneficiary sub-Saharan African countries'' have the same meaning
as such terms have under section 2466a(c) of this title.
(3) NAFTA
The term ``NAFTA'' means the North American Free Trade Agreement
entered into between the United States, Mexico, and Canada on
December 17, 1992.
(f) Effective date
This section takes effect on October 1, 2000, and shall remain in
effect through September 30, 2008.
(Pub. L. 106-200, title I, Sec. 112, May 18, 2000, 114 Stat. 258; Pub.
L. 107-210, div. C, title XXXI, Sec. 3108(a), Aug. 6, 2002, 116 Stat.
1038.)
References in Text
The Harmonized Tariff Schedule of the United States, referred to in
subsec. (b)(1) to (4), is not set out in the Code. See Publication of
Harmonized Tariff Schedule note set out under section 1202 of this
title.
Amendments
2002--Subsec. (b)(1). Pub. L. 107-210, Sec. 3108(a)(1), substituted
``Apparel articles assembled in one or more beneficiary sub-Saharan
African countries'' for ``Apparel articles assembled in beneficiary sub-
Saharan African countries'' in heading and amended introductory
provisions generally. Prior to amendment, introductory provisions read
as follows: ``Apparel articles assembled in one or more beneficiary sub-
Saharan African countries from fabrics wholly formed and cut in the
United States, from yarns wholly formed in the United States, (including
fabrics not formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of the United
States and are wholly formed and cut in the United States) that are--''.
Subsec. (b)(2). Pub. L. 107-210, Sec. 3108(a)(2), substituted
``Other apparel articles assembled in one or more beneficiary sub-
Saharan African countries'' for ``Apparel articles cut and assembled in
beneficiary sub-Saharan African countries'' in heading and amended text
generally. Prior to amendment, text read as follows: ``Apparel articles
cut in one or more beneficiary sub-Saharan African countries from fabric
wholly formed in the United States from yarns wholly formed in the
United States, (including fabrics not formed from yarns, if such fabrics
are classifiable under heading 5602 or 5603 of the Harmonized Tariff
Schedule of the United States and are wholly formed in the United
States) if such articles are assembled in one or more beneficiary sub-
Saharan African countries with thread formed in the United States.''
Subsec. (b)(3). Pub. L. 107-210, Sec. 3108(a)(3)(A), substituted
``Apparel articles from regional fabric or yarns'' for ``Apparel
articles assembled from regional and other fabric'' in heading and
amended introductory provisions generally. Prior to amendment,
introductory provisions read as follows: ``Apparel articles wholly
assembled in one or more beneficiary sub-Saharan African countries from
fabric wholly formed in one or more beneficiary sub-Saharan African
countries from yarn originating either in the United States or one or
more beneficiary sub-Saharan African countries (including fabrics not
formed from yarns, if such fabrics are classifiable under heading 5602
or 5603 of the Harmonized Tariff Schedule of the United States and are
wholly formed and cut in one or more beneficiary sub-Saharan African
countries), subject to the following:''.
Subsec. (b)(3)(B). Pub. L. 107-210, Sec. 3108(a)(3)(B), amended
heading and text generally. Prior to amendment, text read as follows:
``(i) In general.--Subject to subparagraph (A), preferential
treatment shall be extended through September 30, 2004, for apparel
articles wholly assembled in one or more lesser developed beneficiary
sub-Saharan African countries regardless of the country of origin of the
fabric used to make such articles.
``(ii) Lesser developed beneficiary sub-saharan african country.--
For purposes of this subparagraph the term `lesser developed beneficiary
sub-Saharan African country' means a beneficiary sub-Saharan African
country that had a per capita gross national product of less than $1,500
a year in 1998, as measured by the World Bank.''
Subsec. (b)(4)(B). Pub. L. 107-210, Sec. 3108(a)(4), substituted
``21.5 microns'' for ``18.5 microns''.
Subsec. (b)(7). Pub. L. 107-210, Sec. 3108(a)(5), added par. (7).
Transfer of Functions
For transfer of functions, personnel, assets, and liabilities of the
United States Customs Service of the Department of the Treasury,
including functions of the Secretary of the Treasury relating thereto,
to the Secretary of Homeland Security, and for treatment of related
references, see sections 203(1), 551(d), 552(d), and 557 of Title 6,
Domestic Security, and the Department of Homeland Security
Reorganization Plan of November 25, 2002, as modified, set out as a note
under section 542 of Title 6.
Delegation of Authority
For delegation of certain authority of the President under this
section to the Committee for the Implementation of Textile Agreements
and the United States Trade Representative, see Ex. Ord. No. 13191,
Secs. 1-3, Jan. 17, 2001, 66 F.R. 7271, set out as a note under section
2703 of this title.
Increase in Limitation on Certain Benefits
Pub. L. 107-210, div. C, title XXXI, Sec. 3108(b), Aug. 6, 2002, 116
Stat. 1039, provided that: ``The applicable percentage under clause (ii)
of section 112(b)(3)(A) of the African Growth and Opportunity Act (19
U.S.C. 3721(b)(3)(A)) shall be increased--
``(1) by 2.17 percent for the 1-year period beginning on October
1, 2002, and
``(2) by equal increments in each succeeding 1-year period
provided for in such clause, so that for the 1-year period beginning
October 1, 2007, the applicable percentage is increased by 3.5
percent,
except that such increase shall not apply with respect to articles
eligible under subparagraph (B) of section 112(b)(3) of that Act.''
Proc. No. 7350. To Implement the African Growth and Opportunity Act and
To Designate Eritrea as a Beneficiary Developing Country for Purposes of
the Generalized System of Preferences
Proc. No. 7350, Oct. 2, 2000, 65 F.R. 59321, provided in par. (5)
that the United States Trade Representative is authorized to determine
whether Kenya and Mauritius have satisfied the requirements of section
3721(c) of this title, is directed to set forth the determination in a
notice to be published in the Federal Register and to cause the existing
quotas on textile and apparel articles imported into the United States
from such country to be eliminated within 30 days after the
determination, and is authorized to exercise the authority provided to
the President under section 2483 of this title to embody modifications
and technical or conforming changes in the Harmonized Tariff Schedule of
the United States.
Section Referred to in Other Sections
This section is referred to in section 3722 of this title.
