Sri Lanka Tsunami Temporary Economic Relief Act of 2006 - Declares Sri Lanka eligible for duty-free treatment for any article that is the growth, product, or manufacture of such country meeting specified requirements if the President certifies to Congress that Sri Lanka: (1) has established or is progressing toward specified political, economic, and social reforms; (2) does not engage in activities that undermine U.S. security or foreign policy; (3) does not engage in gross violations of human rights or activities in support of international terrorism; and (4) Sri Lanka otherwise meets the eligibility requirements set forth in the Trade Act of 1974.
Applies such provisions until the earlier of five years or the date on which a free trade agreement between the United States and Sri Lanka enters into force with respect to the United States under the Bipartisan Trade Promotion Authority Act of 2002.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4680 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 4680
To provide temporary duty suspension on products from Sri Lanka.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 1, 2006
Mr. Weller (for himself and Mr. Moran of Virginia) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide temporary duty suspension on products from Sri Lanka.
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 ``Sri Lanka Tsunami Temporary Economic
Relief Act of 2006''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) On December 26, 2004, a devastating earthquake occurred
in the Indian Ocean, causing a tsunami that wrecked havoc on
the island nation of Sri Lanka.
(2) More than 70 percent of the coastline in Sri Lanka was
affected by the tidal wave, displacing more than 800,000
people, injuring more that 14,000, and killing more than 40,000
out of a population of just over 19,000,000 living in a land
mass equivalent to the size of West Virginia.
(3) Nearly 5,000 families have been displaced, with more
than 90,000 homes destroyed and more than 20,000 homes
partially damaged.
(4) Sri Lanka lost 22 hospitals, 77 field medical centers,
68 medical clinics, and 137 schools.
(5) The tourist industry, which had only begun to rebound
after more than 20 years of civil war, suffered a loss of more
than 4,000 hotel rooms that are no longer useable.
(6) The main roads and railway system which circumvented
the country along the flat coastline was devastated, cutting
off access to the areas of destruction.
(7) In addition to the immediate loss of lives and
facilities, Sri Lanka is facing a crisis of restoring
industries.
(8) The fishing industry of Sri Lanka was devastated, as 80
percent of Sri Lanka's fishing boats were destroyed, causing a
major loss of a nationwide source of nutrition, as well as
employment for an estimated 170,000 fishermen.
(9) Ten of the nation's 12 fishing harbors were destroyed,
as well as most of the 50 plants used for building small boats.
(10) The industry's nets and land storage and
transportation facilities were destroyed, as well as the ice
making facilities for the storage facilities.
(11) The coastal estuary sites, where shrimp and small fish
were farmed, and as farm lands located inland from the shore,
have been silted up and destroyed.
(12) More than 40 percent of the population depended on the
fishing industry for its livelihood, and 11 percent of the
population depended on agriculture.
(13) Former Presidents George Bush and Bill Clinton
estimate that it will require billions of dollars to rebuild
the affected countries, and at least three to five years to do
so.
(14) Sri Lanka's most dynamic sectors had been food
processing, textiles and apparel, food and beverages,
telecommunications, and insurance and banking. Agriculture
accounted for 20.1 percent of gross domestic product (GDP) in
2003, while industry, primarily garments and leather goods,
food processing, chemicals, refined petroleum, wood products,
basic metal products, and paper products, accounted for 26.3
percent of GDP.
(15) The inland and leeward plants that were not affected
by the tsunami need unrestricted market access to increase
production, to offer employment to those who lost jobs and or
have moved inland, and to maintain positive economic growth,
stability, and democracy in the country.
(16) The tsunami has forced the government and the rebel
forces in Sri Lanka to work together on certain programs,
which, through external support, can re-energize peace talks.
(17) Before the tsunami occurred, Sri Lanka had implemented
an economic reform program to open its economy to international
competition that will lead to increased growth and
international trade and further foreign investment.
(18) The United States, through opening trade, has an
opportunity to support Sri Lanka in its relief efforts,
economic reform, peace process, and rebuilding process.
SEC. 3. TRADE ENHANCEMENT.
(a) Eligibility Requirements.--Sri Lanka shall be eligible for
duty-free treatment under subsection (c)--
(1) if the President determines and certifies to Congress
that Sri Lanka--
(A) has established, or is making continual
progress toward establishing--
(i) a market-based economy that protects
private property rights, incorporates an open
rules-based trading system, and minimizes
government interference in the economy through
measures such as price controls, subsidies, and
government ownership of economic assets;
(ii) the rule of law, political pluralism,
and the right to due process, a fair trial, and
equal protection under the law;
(iii) the elimination of barriers to United
States trade and investment, including by--
(I) the provision of national
treatment and measures to create an
environment conducive to domestic and
foreign investment;
(II) the protection of intellectual
property; and
(III) the resolution of bilateral
trade and investment disputes;
(iv) economic policies to reduce poverty,
increase the availability of health care and
educational opportunities, expand physical
infrastructure, promote the development of
private enterprise, and encourage the formation
of capital markets through micro-credit or
other programs;
(v) a system to combat corruption and
bribery, such as signing and implementing the
Convention on Combating Bribery of Foreign
Public Officials in International Business
Transactions; and
(vi) protection of internationally
recognized worker rights, including the right
of association, the right to organize and
bargain collectively, a prohibition on the use
of any form of forced or compulsory labor, a
minimum age for the employment of children, and
acceptable conditions of work with respect to
minimum wages, hours of work, and occupational
safety and health;
(B) does not engage in activities that undermine
United States national security or foreign policy
interests; and
(C) does not engage in gross violations of
internationally recognized human rights or provide
support for acts of international terrorism and
cooperates in international efforts to eliminate human
rights violations and terrorist activities; and
(2) subject to the authority granted to the President under
subsections (a), (d), and (e) of section 502 of the Trade Act
of 1974 (19 U.S.C. 2462(a), (d), and (e)), if Sri Lanka
otherwise meets the eligibility criteria set forth in section
502 of the Trade Act of 1974.
(b) Continuing Compliance.--If the President determines that Sri
Lanka is not making continual progress in meeting the requirements
described in subsection (a)(1), the President shall terminate the
eligibility of Sri Lanka for the preferential treatment under
subsection (c).
(c) Preferential Treatment.--
(1) In general.--Subject to subsections (a) and (b), duty-
free treatment shall apply to any article that is the growth,
product, or manufacture of Sri Lanka and that meets the
requirements of paragraph (2).
(2) Requirements.--
(A) In general.--The duty-free treatment provided
under paragraph (1) shall apply to any article
described in that paragraph if--
(i) that article is imported directly from
Sri Lanka into the customs territory of the
United States; and
(ii) the direct costs of processing
operations performed on the article in Sri
Lanka is not less than 35 percent of the
appraised value of the article at the time it
enters the customs territory of the United
States.
(B) Textile and apparel articles.--The duty-free
treatment provided under paragraph (1) applies to a
textile and apparel article only if that article meets
the requirements set forth in section 102.21 of title
19, Code of Federal Regulations, as in effect on
November 1, 2005.
(C) Determination of 35 percent requirement.--For
purposes of determining the percentage referred to in
subparagraph (A)(ii), if the cost or value of material
produced in the customs territory of the United States
(other than the Commonwealth of Puerto Rico) is
included with respect to an article that is the growth,
product, or manufacture of Sri Lanka, an amount not to
exceed 15 percent of the appraised value of the article
at the time it enters the customs territory of the
United States that is attributable to such United
States cost or value may be applied toward determining
the percentage referred to in subparagraph (A)(ii).
(3) Surge mechanism.--
(A) Import monitoring.--The Secretary of Commerce
shall monitor imports of textile and apparel articles
from Sri Lanka 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 the Congress
of the early release of the data.
(B) Determination of damage or threat thereof.--
Whenever the Secretary of Commerce determines, based on
the data described in subparagraph (A), or pursuant to
a written request made by an interested party, that
there has been a surge in imports of a textile or
apparel article from Sri Lanka, 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 paragraph
(1). 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.
(C) 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.
(D) 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 of Commerce shall publish the
determination described in subparagraph (B) 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 of Commerce, 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
paragraph, 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.
SEC. 4. EFFECTIVE PERIOD OF DUTY-FREE TREATMENT.
The duty-free treatment under section 3 shall apply to any article
that is entered, or withdrawn from warehouse for consumption, into the
customs territory of the United States during the period beginning on
the 15th day after the date of the enactment of this Act and ending on
the earlier of--
(1) 5 years after that date; or
(2) the date on which a free trade agreement between the
United States and Sri Lanka enters into force with respect to
the United States under the Bipartisan Trade Promotion
Authority Act of 2002 (19 U.S.C. 3801 et seq.).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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