. SHORT TITLE. 16 This Act may be cited as the ‘‘Haitian Hemispheric 17 Opportunity through Partnership Encouragement Act of 18 2006’’ . TRADE BENEFITS FOR HAITI. 20 (a) IN GENERAL.—The Caribbean Basin Economic 21 Recovery Act (19 U.S.C. 2701 et seq.) is amended by in22 serting after section 213 the following new section: ‘‘(2) ENTER; ENTRY.—The terms ‘enter’ and 7 ‘entry’ refer to the entry, or withdrawal from ware8 house for consumption, in the customs territory of 9 the United States. ‘‘(1) IN GENERAL.—In addition to any other 12 preferential treatment under this title, apparel arti13 cles described in paragraph (2) of a producer or en14 tity controlling production that are imported directly 15 from Haiti shall enter the United States free of duty 16 during an applicable 1-year period, subject to the 17 limitations set forth in paragraphs (2) and (3), if 18 Haiti has met the requirements of subsections (d) 19 and (e). only if, for each entry in the 13 preceding applicable 1-year period, the sum 14 of— 15 ‘‘(I) the cost or value of the ma16 terials produced in Haiti or one or 17 more countries described in subpara18 graph (C), or any combination there19 of, plus 20 ‘‘(II) the direct costs of proc21 essing operations (as defined in sec22 tion 213(a)(3)) performed in Haiti or 23 one or more countries described in 24 subparagraph (C), or any combination 25 thereof, ‘‘(ii) DEDUCTIONS.—In calculating 6 cost or value under clause (i)(I), there 7 shall be deducted the cost or value of— 8 ‘‘(I) any foreign materials that 9 are used in the production of the ap10 parel articles in Haiti; and 11 ‘‘(II) any foreign materials that 12 are used in the production of the ma13 terials described in clause (i)(I). ‘‘(C) COUNTRIES DESCRIBED.—The coun15 tries referred to in subparagraph (B) are the 16 following: 17 ‘‘(i) The United States. 18 ‘‘(ii) Any country that is a party to a 19 free trade agreement with the United 20 States that is in effect on the date of the 21 enactment of the Haitian Hemispheric Op22 portunity through Partnership Encourage23 ment Act of 2006, or that enters into force 24 under the Bipartisan Trade Promotion Au- F:\M9\THOMAS\THOMAS.176 F:\V9\092106\092106.009 September 21, 2006 (10:07 AM) 44 H.L.C. 1 thority Act of 2002 (19 U.S.C. 3801 et 2 seq.). 3 ‘‘(iii) Any country designated as a 4 beneficiary country under section 5 213(b)(5)(B) of this Act. 6 ‘‘(iv) Any country designated as a 7 beneficiary country under section 8 506A(a)(1) of the Trade Act of 1974 (19 9 U.S.C. 2466a(a)(1)), if a finding has been 10 made by the President or the President’s 11 designee, and published in the Federal 12 Register, that the country has satisfied the 13 requirements of section 113 of the African 14 Growth and Opportunity Act (19 U.S.C. 15 3722). 16 ‘‘(v) Any country designated as a ben17 eficiary country under section 18 204(b)(6)(B) of the Andean Trade Pref19 erence Act (19 U.S.C. 3203(b)(6)(B)). F:\M9\THOMAS\THOMAS.176 F:\V9\092106\092106.009 September 21, 2006 (10:07 AM) 43 H.L.C. 1 is not less than the applicable percentage 2 (as defined in subparagraph (E)(i)) of the 3 declared customs value of such apparel ar4 ticles. ‘‘(i) APPLICABLE PERCENTAGE.—The 2 term ‘‘applicable percentage’’ means— 3 ‘‘(I) 50 percent or more during 4 the initial applicable 1-year period, 5 the second applicable 1-year period, 6 and the third applicable 1-year period; 7 ‘‘(II) 55 percent or more during 8 the fourth applicable 1-year period; 9 and 10 ‘‘(III) 60 percent or more during 11 the fifth applicable 1-year period. ‘‘(ii) FOREIGN MATERIAL.—The term 13 ‘foreign material’ means a material pro14 duced in a country other than Haiti or any 15 country described in subparagraph (C). WIRE HARNESS AUTOMOTIVE COMPO14 NENT.—For purposes of this subsection, the term 15 ‘‘wire harness automotive component’’ means any ar16 ticle provided for in subheading 8544.30.00 of the 17 HTS, as in effect on the date of the enactment of 18 the Haitian Hemispheric Opportunity through Part19 nership Encouragement Act of 2006. IN GENERAL.—Haiti shall be eligible for 22 preferential treatment under this section if the 23 President determines and certifies to Congress that 24 Haiti— F:\M9\THOMAS\THOMAS.176 F:\V9\092106\092106.009 September 21, 2006 (10:07 AM) 56 H.L.C. 1 ‘‘(A) has established, or is making con2 tinual progress toward establishing— 3 ‘‘(i) a market-based economy that pro4 tects private property rights, incorporates 5 an open rules-based trading system, and 6 minimizes government interference in the 7 economy through measures such as price 8 controls, subsidies, and government owner9 ship of economic assets; 10 ‘‘(ii) the rule of law, political plu11 ralism, and the right to due process, a fair 12 trial, and equal protection under the law; 13 ‘‘(iii) the elimination of barriers to 14 United States trade and investment, in15 cluding by— 16 ‘‘(I) the provision of national 17 treatment and measures to create an 18 environment conducive to domestic 19 and foreign investment; 20 ‘‘(II) the protection of intellectual 21 property; and 22 ‘‘(III) the resolution of bilateral 23 trade and investment disputes; 24 ‘‘(iv) economic policies to reduce pov25 erty, increase the availability of health care F:\M9\THOMAS\THOMAS.176 F:\V9\092106\092106.009 September 21, 2006 (10:07 AM) and educational opportunities, expand 2 physical infrastructure, promote the devel3 opment of private enterprise, and encour4 age the formation of capital markets 5 through microcredit or other programs; 6 ‘‘(v) a system to combat corruption 7 and bribery, such as signing and imple8 menting the Convention on Combating 9 Bribery of Foreign Public Officials in 10 International Business Transactions; and 11 ‘‘(vi) protection of internationally rec12 ognized worker rights, including the right 13 of association, the right to organize and 14 bargain collectively, a prohibition on the 15 use of any form of forced or compulsory 16 labor, a minimum age for the employment 17 of children, and acceptable conditions of 18 work with respect to minimum wages, 19 hours of work, and occupational safety and 20 health; 21 ‘‘(B) does not engage in activities that un22 dermine United States national security or for23 eign policy interests; and 24 ‘‘(C) does not engage in gross violations of 25 internationally recognized human rights or pro- F:\M9\THOMAS\THOMAS.176 F:\V9\092106\092106.009 September 21, 2006 (10:07 AM)vide support for acts of international terrorism 2 and cooperates in international efforts to elimi3 nate human rights violations and terrorist ac4 tivities. The preferential treatment under subsection (b)(1) shall not apply unless the President certifies to Congress that Haiti is meeting the following conditions: (A) Haiti has adopted an effective visa system, domestic laws, and enforcement procedures applicable to articles described in subsection (b) to prevent unlawful transshipment of the articles and the use of counterfeit documents relating to the importation of the articles into the United States. (B) Haiti has enacted legislation or promulgated regulations that would permit the Bureau of Customs and Border Protection verification teams to have the access necessary to investigate thoroughly allegations of transshipment through such country. (C) Haiti agrees to report, on a timely basis, at the request of the Bureau of Customs and Border Protection, on the total exports from and imports into that country of articles described in subsection (b), consistent with the manner in which the records are kept by Haiti. (D) Haiti agrees to cooperate fully with the United States to address and take action necessary to prevent circumvention as provided in Article 5 of the Agreement on Textiles and Clothing. (E) Haiti agrees to require all producers and exporters of articles described in subsection (b) in that country to maintain complete records of the production and the export of such articles, including materials used in the production, for at least 5 years after the production or export (as the case may be). (F) Haiti agrees to report, on a timely basis, at the request of the Bureau of Customs and Border Protection, documentation establishing the country of origin of articles described in subsection (b) as used by that country in implementing an effective visa system. 9 ‘‘(2) DEFINITION OF TRANSSHIPMENT.—Trans10 shipment within the meaning of this subsection has 11 occurred when preferential treatment for a textile or 12 apparel article under this section has been claimed 13 on the basis of material false information concerning 14 the country of origin, manufacture, processing, or 15 assembly of the article or any of its components. For 16 purposes of this paragraph, false information is ma17 terial if disclosure of the true information would 18 mean or would have meant that the article is or was 19 ineligible for preferential treatment under this sec20 tion. SEC. 303. ITC STUDY. 5 The International Trade Commission shall, not later 6 than 18 months after the date of the enactment of this 7 Act, submit a report to Congress on the effects of the 8 amendments made by this Act on the trade markets and 9 industries, involving textile and apparel articles, of Haiti, 10 the countries described in clauses (ii) and (iii) of section 11 213A(b)(2)(C) of the Caribbean Basin Economic Recovery 12 Act (as added by section 302 of this Act), and the United 13 States. ATPA.—Section 204(b)(3)(B) of the Andean 17 Trade Preference Act (19 U.S.C. 3202(b)(3)(B)) is 18 amended by adding at the end the following new clause: CBI.—Section 213(b)(2)(A)(v) of the Caribbean 5 Basin Economic Recovery Act (19 U.S.C. 6 2703(b)(2)(A)(v)) is amended by adding at the end the 7 following new subclause: