To provide relief for the cotton shirt industry.

April 6, 2005

Mr. SPECTER introduced the following bill; which was read twice and referred to the Committee on Finance

To provide relief for the cotton shirt industry.

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

SECTION 1. SHORT TITLE.

This Act shall be known as the `Cotton Shirt Industry Tariff Relief and Technical Corrections Act'.

SEC. 2. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON SHIRTING FABRIC.

(a) CERTAIN COTTON SHIRTING FABRICS-

(1) IN GENERAL- Subchapter II of chapter 99 is amended by inserting in numerical sequence the following new headings:

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` 9902.52.08 Woven fabrics of cotton, all the foregoing certified by the importer as suitable for use in making men's and boys' shirts and as imported by or for the benefit of a manufacturer of men's and boys' shirts, subject to the quantity limitations contained in general note 18 of this subchapter (provided for in section 204(b)(3)(B)(i)(III) of the Andean Trade Preference Act (19 U.S.C. 3203)) Free No change No change On or before 12/31/2006     

  9902.52.09 Woven fabrics of cotton, all the foregoing certified by the importer as containing 100 percent pima cotton grown in the United States, as suitable for use in making men's and boys' shirts, and as imported by or for the benefit of a manufacturer of men's and boys' shirts (provided for in section 204(b)(3)(B)(i)(III) of the Andean Trade Preference Act (19 U.S.C. 3203))                   Free No change No change On or before 12/31/2005  '. 

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(2) DEFINITIONS AND LIMITATION ON QUANTITY OF IMPORTS- The U.S. Notes to chapter 99 are amended by adding at the end the following:

`18. For purposes of subheadings 9902.52.08 and 9902.52.09, the term `making' means cutting and sewing in the United States, and the term `manufacturer' means a person or entity that cuts and sews in the United States.

`19. The aggregate quantity of cotton fabrics entered under subheading 9902.52.08 from January 1 to December 31 of each year, inclusive, by or on behalf of each manufacturer of men's and boys' shirts shall be limited to 85 percent of the total square meter equivalents of all imported cotton woven fabric used by such manufacturer in cutting and sewing men's and boys' cotton shirts in the United States and purchased by such manufacturer during calendar year 2000.'.

(b) DETERMINATION OF TARIFF-RATE QUOTAS-

(1) AUTHORITY TO ISSUE LICENSES AND LICENSE USE- To implement the limitation on the quantity of imports of cotton woven fabrics under subheading 9902.52.08 of the Harmonized Tariff Schedule of the United States, as required by U.S. Note 19 to subchapter II of chapter 99 of such Schedule, for the entry, or withdrawal from warehouse for consumption, the Secretary of Commerce shall issue licenses to eligible manufacturers with respect to items entered under subheading 9902.52.08 specifying the annual quantity restrictions under each such license. A licensee may assign the authority (in whole or in part) to import fabric under subheading 9902.52.08 of such Schedule.

(2) LICENSES UNDER U.S. NOTE 19- For purposes of U.S. Note 19 to subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States, the Secretary of Commerce shall issue a license within 60 days of an application containing a notarized affidavit from an officer of the manufacturer that the manufacturer is eligible to receive a license and stating the quantity of imported cotton woven fabric purchased during calendar year 2000 for use in the cutting and sewing of men's and boys' shirts in the United States.

(3) AFFIDAVITS- For purposes of an affidavit described in this subsection, the date of purchase shall be--

(A) the invoice date if the manufacturer is not the importer of record; and

(B) the date of entry if the manufacturer is the importer of record.

SEC. 3. PIMA COTTON TRUST FUND.

(a) ESTABLISHMENT OF TRUST FUND-

(1) IN GENERAL- There is hereby established within the Treasury of the United States a trust fund to be known as the `Pima Cotton Trust Fund' (hereinafter in this section referred to the `Trust Fund'), consisting of such amounts as may be transferred to the Trust Fund under paragraph (2).

(2) TRANSFER OF AMOUNTS-

(A) IN GENERAL- Beginning October 1, 2005, the Secretary of the Treasury shall transfer to the Trust Fund out of the general fund of the Treasury of the United States amounts determined by the Secretary of the Treasury to be equivalent to the amounts received in the general fund that are attributable to the duty received since January 1, 1994, on articles under subheadings 5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50, 5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80, 5208.52.50, 5208.59.80, 5210.21.80, and 5210.31.80 of the Harmonized Tariff Schedule of the United States, subject to the limitation in subparagraph (B).

(B) LIMITATION- The Secretary shall not transfer more than $16,000,000 to the Trust fund in any fiscal year, and shall not transfer any amount beginning on or after October 1, 2007.

(b) DISTRIBUTION OF FUNDS-

(1) IN GENERAL- From amounts in the Trust Fund, the Commissioner of Customs and Border Protection shall make the following payments annually beginning in fiscal year 2005:

(A) 25 percent of the amounts in the Trust Fund shall be paid annually to a nationally recognized association established for the promotion of pima cotton grown in the United States for use in textile and apparel goods.

(B) 25 percent of the amounts in the Trust Fund shall be paid annually to yarn spinners of pima cotton grown in the United States, and shall be allocated to each such spinner in an amount that bears the same ratio as--

(i) the spinner's production of ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number) from pima cotton grown in the United States in single and plied form during calendar year 2002 (as evidenced by an affidavit provided by the spinner), bears to

(ii) the production of yarns described in clause (i) during calendar year 2002 for all spinners who qualify under this subparagraph.

(C) 50 percent of the amounts in the Trust Fund shall be paid annually to manufacturers who cut and sew cotton shirts in the United States who certify that they used imported cotton fabric during the period January 1, 1998, through July 1, 2003, and shall be allocated to each such manufacturer in an amount that bears the same ratio as--

(i) the dollar value (excluding duty, shipping, and related costs) of imported woven cotton shirting fabric of 80s or higher count and 2-ply in warp purchased by the manufacturer during calendar year 2002 (as evidenced by an affidavit from the manufacturer that meets the requirements of paragraph (2)) used in the manufacturing of men's and boys' cotton shirts, bears to

(ii) the dollar value (excluding duty, shipping, and related costs) of the fabric described in clause (i) purchased during calendar year 2002 by all manufacturers who qualify under this subparagraph.

(2) AFFIDAVIT OF SHIRTING MANUFACTURERS- The affidavit required by paragraph (1)(C) is a notarized affidavit of an officer of the manufacturer of men's and boys' shirts that affirms--

(A) that the manufacturer used imported cotton fabric during the period January 1, 1998, through July 1, 2003, to cut and sew men's and boys' woven cotton shirts in the United States;

(B) the dollar value of imported woven cotton shirting fabric of 80s or higher count and 2-ply in warp purchased during calendar year 2002;

(C) that the manufacturer maintains invoices along with other supporting documentation (such as price lists and other technical descriptions of the fabric qualities) showing the dollar value of such fabric purchased, the date of purchase, and evidencing the fabric as woven cotton fabric of 80s or higher count and 2-ply in warp; and

(D) that the fabric was suitable for use in the manufacturing of men's and boys' cotton shirts.

(3) DATE OF PURCHASE- For purposes of the affidavit required by paragraph (2), the date of purchase shall be the invoice date, and the dollar value shall be determined excluding duty, shipping, and related costs.

(4) AFFIDAVIT OF YARN SPINNERS- The affidavit required by paragraph (1)(B), is a notarized affidavit of an officer of a company that produces ring spun yarns that affirms--

(A) that the producer used pima cotton grown in the United States during the period January 1, 2002, through December 31, 2002, to produce ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number) in single and plied form during 2002;

(B) the quantity, measured in pounds of ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form during calendar year 2002; and

(C) that the producer maintains supporting documentation showing the quantity of such yarns produced, and evidencing the yarns as ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form during calendar year 2002.

(5) NO APPEAL- Any amount paid by the Commissioner of Customs and Border Protection under this section shall be final and not subject to appeal or protest.

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