Answer Africa's Call Act - Amends the Internal Revenue Code to impose an additional income tax (surcharge) on adjusted gross incomes exceeding certain threshold levels (in order to fund the U.S. International Finance Facility).
Establishes the United States International Finance Facility Trust Fund in the Treasury consisting of such amounts appropriated or credited to the Trust Fund, including amounts collected from the surcharge).
Makes such Fund amounts available without further appropriation for expenditures in connection with U.S. commitments to the International Finance Facility.
Amends the Trade Act of 1974 to modify the preferential trade treatment for agricultural products of beneficiary sub-Saharan African countries. Removes the limitation on eligibility for duty-free treatment of an agriculture product subject to a tariff-rate quota exceeding the in-quota amount, if the over-quota import is the growth, product, or manufacture of a beneficiary sub-Saharan African country. Requires the President to: (1) assess a duty on such an over-quota product if its unit import price is less than the annual trigger price; (2) establish an annual trigger price for each such product; and (3) notify the beneficiary sub-Saharan African country concerned of such additional duty.
Amends the African Growth and Opportunity Act (AGOA) to revise criteria for preferential treatment of apparel articles wholly assembled from fabric or yarn not available in commercial quantities in the United States to make certain yarn or fabrics eligible for use in the production of specified cut or knit-to-shape apparel articles.
Modifies AGOA special rules for lesser developed countries with respect to preferential treatment 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 yarn used. Extends through FY 2015 the applicable percentage component of the preferential treatment formula established for FY 2005.
Includes Mauritius in such extension, with no change in its current limitation of 5% of such applicable percentage.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3175 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3175
To implement measures to help alleviate the poor living conditions in
Africa.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2005
Mr. McDermott (for himself, Mr. Rangel, Mr. Payne, Ms. McCollum of
Minnesota, Mr. Lewis of Georgia, Mr. Conyers, Mr. McNulty, Mrs.
Christensen, Mr. Meeks of New York, and Ms. Millender-McDonald)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Financial Services,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To implement measures to help alleviate the poor living conditions in
Africa.
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 may be cited as the ``Answer Africa's Call Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) African poverty and stagnation are the greatest tragedy
of our time and demand a forceful response by the United
States.
(2) The world, especially the United States, is awash with
wealth on a scale that has never been seen in human history.
(3) We live in a world where new medicines and medical
techniques have eradicated many of the diseases and ailments
that plagued the rich world.
(4) In Africa, some 4,000,000 children under the age of
five die each year, two-thirds of them from illnesses that cost
very little to treat; malaria is the biggest single killer of
African children, and half of those deaths could be avoided if
the parents of these children had access to diagnosis and drugs
that cost little more than $1 per dose.
(5) We live in a world where scientists can map the human
genome and have the technology to clone a human being.
(6) In Africa, we allow more than 250,000 women die each
year from complications in pregnancy or childbirth.
(7) We live in a world where the Internet in the blink of
an eye can transfer more information than any human brain could
hold.
(8) In Africa each day, some 40,000,000 children are not
able to go to school.
(9) We live in a world which, faced by one of the most
devastating diseases ever seen, AIDS, has developed the
antiretroviral drugs to control its advance.
(10) In Africa, where 25,000,000 people are infected with
AIDS, antiretroviral drugs are not made generally available; as
a result, 2,000,000 people will die of AIDS in 2005.
(11) We live in a world where rich nations spend as much as
the entire income of all the people in Africa subsidizing the
unnecessary production of unwanted food, in an amount of almost
$1,000,000,000 each day.
(12) In Africa, hunger is a key factor in more deaths than
those caused by all of the continent's infectious diseases
combined.
(13) We live in a world where every cow in Europe receives
almost $2 each day in government subsidies.
(14) In Africa the average daily income is approximately
$1.
(15) The contrast between the lives led by those who live
in rich countries and those of poor people in Africa is the
greatest scandal of our age.
(16) One in six children in Africa dies before reaching the
age of 5.
(17) Two-thirds of all the African children who die under
the age of 5 could be saved by low-cost treatments such as
vitamin A, and a tenth of all the diseases suffered by African
children are caused by intestinal worms that infect 200,000,000
people and could be treated for just 25 cents per child.
(18) More than 300,000,000 Africans--42 percent of Africa's
population--still do not have access to safe water, and 60
percent do not have access to basic sanitation.
(19) 62 percent of all people aged 15-24 years who live
with HIV are found in Africa.
(20) Africa had 43,000,000 orphans in 2003, of which AIDS
was responsible for 12,000,000.
(21) In Zambia, 71 percent of child prostitutes are
orphans.
SEC. 3. STATEMENT OF POLICY.
The Congress supports implementing the recommendations of the
Commission for Africa, which call for rich nations to increase foreign
assistance to Africa, provide debt relief, eliminate trade distorting
agricultural subsidies, and remove insidious trade barriers that impede
economic opportunity in sub-Saharan Africa.
SEC. 4. IMPOSITION OF INDIVIDUAL INCOME TAX SURCHARGE TO FUND
INTERNATIONAL FINANCE FACILITY.
(a) Imposition of Tax.--Section 1 of the Internal Revenue Code of
1986 (relating to imposition of tax on individuals) is amended by
adding at the end the following new subsection:
``(j) Additional Income Tax.--
``(1) In general.--If the adjusted gross income of an
individual exceeds the threshold amount, the tax imposed by
this section (determined without regard to this subsection)
shall be increased by an amount equal to 0.8 percent of so much
of the adjusted gross income as exceeds the threshold amount.
``(2) Threshold amounts.--For purposes of this subsection,
the term `threshold amount' means--
``(A) $1,000,000 in the case of a joint return, and
``(B) $500,000 in the case of any other return.
``(3) Tax not to apply to estates and trusts.--This
subsection shall not apply to an estate or trust.
``(4) Termination.--This subsection shall not apply to
taxable years beginning after December 31, 2010.''.
(b) Establishment of United States International Finance Facility
Trust Fund.--
(1) In general.--Subchapter A of chapter 98 of such Code
(relating to trust fund code) is amended by adding at the end
the following:
``SEC. 9511. UNITED STATES INTERNATIONAL FINANCE FACILITY TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `United States
International Finance Facility Trust Fund' (referred to in this section
as the `Trust Fund'), consisting of such amounts as may be appropriated
or credited to the Trust Fund as provided in this section or section
9602(b).
``(b) Transfers to Trust Fund.--There is hereby appropriated to the
Trust Fund an amount equivalent to the increase in revenues received in
the Treasury as the result of the surtax imposed under section 1(j).
``(c) Distribution of Amounts in Trust Fund.--Amounts in the Trust
Fund shall be available without further appropriation to make
expenditures in connection with United States commitments to the
International Finance Facility.''.
(2) Conforming amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding at
the end the following:
``Sec. 9511. United States International Finance Facility Trust
Fund.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
(d) Section 15 not to Apply.--The amendment made by subsection (a)
shall not be treated as a change in a rate of tax for purposes of
section 15 of the Internal Revenue Code of 1986.
SEC. 5. MODIFICATIONS TO PREFERENTIAL TRADE TREATMENT FOR PRODUCTS OF
SUB-SAHARAN AFRICAN COUNTRIES.
(a) Removal of Agriculture Tariff-Rate Quota Limitation;
Agricultural Safeguard.--Section 503(b) of the Trade Act of 1974 (19
U.S.C. 2463(b)) is amended by striking paragraph (3) and inserting the
following:
``(3) Agricultural products.--
``(A) In general.--No quantity of an agricultural
product subject to a tariff-rate quota that exceeds the
in-quota amount shall be eligible for duty-free
treatment under this title, except as provided in
subparagraph (B).
``(B) Imports from countries designated under
section 506a.--Subparagraph (A) shall not apply to
over-quota imports of agricultural products subject to
a tariff-rate quota that are the growth, product, or
manufacture of a country designated as a beneficiary
sub-Saharan African country under section 506A(a)(1).
``(4) Safeguard for agricultural products.--
``(A) In general.--The President shall assess a
duty, in the amount prescribed under subparagraph (B),
on over-quota imports of any agricultural product
described in paragraph (3)(B) for which preferential
treatment is claimed, if the President determines that
the unit import price of the product when it enters the
United States, determined on an F.O.B. basis, is less
than the annual trigger price determined in accordance
with subparagraph (D).
``(B) Calculation of additional duties.--The amount
of the additional duty assessed under this subsection
shall be determined as follows:
``(i) If the difference between the unit
import price and the trigger price is less
than, or equal to, 10 percent of the trigger
price, no additional duty shall be imposed.
``(ii) If the difference between the unit
import price and the trigger price is greater
than 10 percent, but less than or equal to 40
percent, of the trigger price, the additional
duty shall be equal to 30 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(iii) If the difference between the unit
import price and the trigger price is greater
than 40 percent, but less than or equal to 60
percent, of the trigger price, the additional
duty shall be equal to 50 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(iv) If the difference between the unit
import price and the trigger price is greater
than 60 percent, but less than or equal to 75
percent, of the trigger price, the additional
duty shall be equal to 70 percent of the
difference between the preferential tariff rate
and the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
``(v) If the difference between the unit
import price and the trigger price is greater
than 75 percent of the trigger price, the
additional duty shall be equal to 100 percent
of the difference between the preferential
tariff rate and the column 1 general rate of
duty imposed under the HTS on like articles at
the time the additional duty is imposed.
``(C) Exceptions.--No additional duty under this
paragraph shall be assessed on an agricultural product
if, at the time of entry into the customs territory of
the United States, the product is subject to import
relief under chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.).
``(D) Calculation of trigger price.--(i) Not later
than 60 days after the date of the enactment of the
Answer Africa's Call Act, and annually thereafter, the
President shall, in consultation with the Secretary of
Agriculture, establish the annual trigger price for
each over-quota agricultural product described in
paragraph (3)(B), and shall publish such prices in the
Federal Register. The President shall establish the
trigger price for a product at a level not below the 3-
year average import price for that product.
``(ii) Not later than 30 days before publishing the
trigger prices in the Federal Register under clause
(i), the President shall notify and consult with the
Committees on Ways and Means and Agriculture of the
House of Representatives and the Committees on Finance
and Agriculture of the Senate on the proposed trigger
prices.
``(E) Notice to country concerned.--Not later than
60 days after the President first assesses additional
duties under this paragraph on over-quota imports of
agricultural products described in paragraph (3)(B),
the President shall notify the beneficiary sub-Saharan
African country where the product was grown,
manufactured, or produced, in writing of such action
and shall provide to the country data supporting the
assessment of the additional duties.
``(F) Definitions.--In this paragraph:
``(i) 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.
``(ii) HTS.--The term `HTS' means the
Harmonized Tariff Schedule of the United
States.
``(iii) Unit import price.--The term `unit
import price' means the price expressed in
dollars per kilogram.''.
(b) Short Supply Provisions.--Section 112(b)(5) of the African
Growth and Opportunity Act (19 U.S.C. 3721(b)(5)) is amended--
(1) by amending subparagraph (A) to read as follows:
``(A) In general.--Articles that are both cut (or
knit-to-shape) and sewn or otherwise assembled in one
or more beneficiary sub-Saharan African countries--
``(i) from fabric or yarn which need not be
originating under General Note 12(t) of the
Harmonized Tariff Schedule of the United States
for the apparel article to qualify as
originating under that Note; or
``(ii) from fabric or yarn which--
``(I) is the component that
determines the classification of the
articles under the Harmonized Tariff
Schedule of the United States;
``(II) is not commercially
available; and
``(III) which the President
proclaims as eligible for use under
this paragraph without regard to where
the fabric or yarn is formed pursuant
to the procedures set forth in
subparagraph (B).''; and
(2) in subparagraph (B), in the matter preceding clause
(i), by striking ``not described in subparagraph (A)'' and
inserting ``and thus eligible for use in the production of cut
components or knit-to-shape components described in
subparagraph (A)(ii)''.
(c) User Developed Beneficiary Sub-Saharan African Countries.--
Section 112(b)(3)(B) of the African Growth and Opportunity Act (19
U.S.C. 3721(b)(3)(B)) is amended--
(1) in clause (ii)--
(A) in subclause (II), by inserting ``and'' after
the semicolon; and
(B) by striking subclauses (III) and (IV) and
inserting the following:
``(III) 2.9285 percent for the 1-
year period beginning October 2, 2005,
and for each 1-year period thereafter
through September 30, 2015.'';
(2) in clause (iii)--
(A) in subclause (II), by striking ``and'';
(B) in subclause (III), by striking the period and
inserting ``; and''; and
(C) by adding after subclause (III) the following:
``(IV) Mauritius, except that the
applicable percentage with respect to
Mauritius shall be 5 percent of the
applicable percentage described in
clause (ii)(III).''; and
(3) by striking clause (iv).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Trade.
Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
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