Save Our Industries Act of 2011 or SAVE Act - Grants duty-free treatment, subject to specified conditions, to certain apparel wholly assembled in the United States or the Philippines, or both, and components of such apparel consisting entirely of: (1) fabric cut in the United States or the Philippines, or both, from fabric wholly formed in the United States from yarns wholly formed in the United States; (2) components knit-to-shape in the United States from yarns wholly formed in the United States; or (3) any combination of such fabric or components.
Prescribes single transformation duty-free rules for specified apparel articles, regardless of the source of the fabric, fabric components, components knit-to-shape, or yarns from which the articles are made, if they: (1) are cut and wholly assembled, or knit-to-shape, in the Philippines from any combination of such components; and (2) are imported directly into the United States from the Philippines.
Prescribes requirements for review and enforcement of the program.
Prescribes penalties for exporters and importers who engage in the transshipment of apparel that has been afforded preferential treatment under this Act.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2387 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2387
To provide for preferential duty treatment to certain apparel articles
of the Philippines.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2011
Mr. McDermott (for himself, Mr. Austria, Mr. Bilbray, Mr. Filner, Ms.
Hirono, and Mr. Sablan) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for preferential duty treatment to certain apparel articles
of the Philippines.
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 ``Save Our Industries Act of 2011'' or
the ``SAVE Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--Congress finds the following:
(1) The United States and the Republic of the Philippines
(in this Act referred to as the ``Philippines''), a former
colony, share deep historical and cultural ties. The
Philippines holds enduring political and security significance
to the United States. The 2 countries have partnered very
successfully in combating terrorism in Southeast Asia.
(2) The United States and the Philippines maintain a fair
trading relationship that should be expanded to the mutual
benefit of both countries. In 2010, United States exports to
the Philippines were valued at $7,375,000,000, and United
States imports from the Philippines were valued at
$7,960,000,000.
(3) United States textile exports to the Philippines were
valued at just over $48,000,000 in 2010, consisting mostly of
industrial, specialty, broadwoven, and nonwoven fabrics. The
potential for export growth in this area can sustain and create
thousands of jobs.
(4) The Philippines' textile and apparel industries, like
that of their counterparts in the United States, share the same
challenges and risks stemming from the end of the textile and
apparel quota system and from the end of United States safe-
guards that continued to control apparel imports from the
People's Republic of China until January 1, 2009.
(5) The United States apparel fabrics industry is heavily
dependent on sewing outside the United States, and, for the
first time, United States textile manufacturers would have a
program that utilizes sewing done in an Asian country. In
contrast, most sewing of United States fabric occurs in the
Western Hemisphere, with about two-thirds of United States
fabric exports presently going to countries that are parties to
the North American Free Trade Agreement and the Dominican
Republic-Central America-United States Free Trade Agreement.
Increased demand for United States fabric in Asia will increase
opportunities for the United States industry.
(6) Apparel producers in the Western Hemisphere are
excellent at making basic garments such as T-shirts and
standard 5-pocket jeans. However, the needle capability does
not exist to make high fashion, more sophisticated garments
such as embroidered T-shirts and fashion jeans with
embellishments. Such apparel manufacturing is done almost
exclusively in Asia.
(7) A program that provides preferential duty treatment for
certain apparel articles of the Philippines will provide a
strong incentive for Philippine apparel manufacturers to use
United States fabrics, which will open new opportunities for
the United States textile industry and increase opportunities
for United States yarn manufacturers. At the same time, the
United States would be provided a more diverse range of
sourcing opportunities.
(b) Purposes.--The purposes of this Act are--
(1) to encourage higher levels of trade in textiles and
apparel between the United States and the Philippines and
enhance the commercial well-being of their respective
industries in times of global economic hardship;
(2) to enhance and broaden the economic, security, and
political ties between the United States and the Philippines;
(3) to stimulate economic activity and development
throughout the Philippines, including regions such as Manila
and Mindanao; and
(4) to provide a stepping stone to an eventual free trade
agreement between the United States and the Philippines, either
bilaterally or as part of a regional agreement.
SEC. 3. DEFINITIONS.
In this Act:
(1) Classification under the hts.--The term
``classification under the HTS'' means, with respect to an
article, the 6-digit subheading or 10-digit statistical
reporting number under which the article is classified in the
HTS.
(2) Dobby woven fabric.--The term ``dobby woven fabric''
means fabric, other than jacquard fabric, woven with the use of
a dobby attachment that raises or lowers the warp threads
during the weaving process to create patterns including,
stripes, and checks and similar designs.
(3) Entered.--The term ``entered'' means entered, or
withdrawn from warehouse for consumption, in the customs
territory of the United States.
(4) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(5) Knit-to-shape.--An article is ``knit-to shape'' if 50
percent or more of the exterior surface area of the article is
formed by major parts that have been knitted or crocheted
directly to the shape used in the article, with no
consideration being given to patch pockets, appliques, or the
like. Minor cutting, trimming, or sewing of those major parts
shall not affect the determination of whether an article is
``knit-to-shape''.
(6) Wholly assembled.--An article is ``wholly assembled''
in the Philippines or the United States if--
(A) all components of the article pre-existed in
essentially the same condition as the components exist
in the finished article and the components were
combined to form the finished article in the
Philippines or the United States; and
(B) the article is comprised of at least 2
components.
(7) Wholly formed.--A yarn is ``wholly formed in the United
States'' if all of the yarn forming and finishing operations,
starting with the extrusion of filaments, strips, film, or
sheet, and including slitting a film or sheet into strip, or
the spinning of all fibers into yarn, or both, and ending with
a finished yarn or plied yarn, takes place in the United
States.
SEC. 4. TRADE BENEFITS.
(a) Eligible Apparel Article.--For purposes of this section, an
eligible apparel article is any one of the following:
(1) Men's and boys' cotton shirts, T-shirts and tank tops
(other than underwear T-shirts and tank tops), pullovers,
sweatshirts, tops, and similar articles classifiable under
subheading 6105.10, 6105.90, 6109.10, 6110.20, 6110.90,
6112.11, or 6114.20 of the HTS.
(2) Women's and girls' cotton shirts, blouses, T-shirts and
tank tops (other than underwear T-shirts and tank tops),
pullovers, sweatshirts, tops, and similar articles classifiable
under subheading 6106.10, 6106.90, 6109.10, 6110.20, 6110.90,
6112.11, 6114.20, or 6117.90 of the HTS.
(3) Men's and boys' cotton trousers, breeches, and shorts
classifiable under subheading 6103.10, 6103.42, 6103.49,
6112.11, 6113.00, 6203.19, 6203.42, 6203.49, 6210.40, 6211.20,
6211.32 of the HTS.
(4) Women's and girls' cotton trousers, breeches, and
shorts classifiable under subheading 6104.19, 6104.62, 6104.69,
6112.11, 6113.00, 6117.90, 6204.12, 6204.19, 6204.62, 6204.69,
6210.50, 6211.20, 6211.42, or 6217.90 of the HTS.
(5) Men's and boys' cotton underpants, briefs, underwear-
type T-shirts and singlets, thermal undershirts, other
undershirts, and similar articles classifiable under subheading
6107.11, 6109.10, 6207.11, or 6207.91 of the HTS.
(6) Men's and boys' manmade fiber underpants, briefs,
underwear-type T-shirts and singlets, thermal undershirts,
other undershirts, and similar articles classifiable under
subheading 6107.12, 6109.90, 6207.19, or 6207.99 of the HTS.
(7) Men's and boys' manmade fiber shirts, T-shirts and tank
tops (other than underwear T-shirts and tank tops), pullovers,
sweatshirts, tops, and similar articles classifiable under
subheading 6105.20, 6105.90, 6110.30, 6110.90, 6112.12,
6112.19, or 6114.30 of the HTS.
(8) Women's and girls' manmade fiber shirts, blouses, T-
shirts and tank tops (other than underwear T-shirts and tank
tops), pullovers, sweatshirts, tops, and similar articles
classifiable under subheading 6106.20, 6106.90, 6110.30,
6110.90, 6112.12, 6112.19, 6114.30, or 6117.90 of the HTS.
(9) Men's and boys' manmade fiber trousers, breeches, and
shorts classifiable under subheading 6103.43, 6103.49, 6112.12,
6112.19, 6112.20, 6113.00, 6203.43, 6203.49, 6210.40, 6211.20,
or 6211.33 of the HTS.
(10) Women's and girls' manmade fiber trousers, breeches,
and shorts classifiable under subheading 6104.63, 6104.69,
6112.12, 6112.19, 6112.20, 6113.00, 6117.90, 6204.63, 6204.69,
6210.50, 6211.20, 6211.43, or 6217.90 of the HTS.
(11) Men's and boys' manmade fiber shirts classifiable
under subheading 6205.30, 6205.90, or 6211.33 of the HTS.
(12) Cotton brassieres and other body support garments
classifiable under subheading 6212.10, 6212.20, or 6212.30 of
the HTS.
(13) Manmade fiber brassieres and other body support
garments classifiable under subheading 6212.10, 6212.20, or
6212.30 of the HTS.
(14) Manmade fiber swimwear classifiable under subheading
6112.31, 6112.41, 6211.11, or 6211.12 of the HTS.
(15) Cotton swimwear classifiable under subheading 6112.39,
6112.49, 6211.11, or 6211.12 of the HTS.
(16) Men's and boys' manmade fiber coats, overcoats,
carcoats, capes, cloaks, anoraks (including ski-jackets),
windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading
6101.30, 6101.90, 6112.12, 6112.19, 6112.20, or 6113.00 of the
HTS.
(17) Women's and girls' manmade fiber coats, overcoats,
carcoats, capes, cloaks, anoraks (including ski-jackets),
windbreakers, padded sleeveless jackets with attachments for
sleeves, and similar articles classifiable under subheading
6102.30, 6102.90, 6104.33, 6104.39, 6112.12, 6112.19, 6112.20,
6113.00, or 6117.90 of the HTS.
(18) Gloves, mittens, and mitts of manmade fibers
classifiable under subheading 6116.10, 6116.93, 6116.99, or
6216.00 of the HTS.
(b) Duty-Free Treatment for Certain Eligible Apparel Articles.--
(1) Duty-free treatment.--Subject to paragraphs (2) and
(3), an eligible apparel article shall enter the United States
free of duty if the article is wholly assembled in the United
States or the Philippines, or both, and if the component
determining the article's classification under the HTS consists
entirely of--
(A) fabric cut in the United States or the
Philippines, or both, from fabric wholly formed in the
United States from yarns wholly formed in the United
States;
(B) components knit-to-shape in the United States
from yarns wholly formed in the United States; or
(C) any combination of fabric or components knit-
to-shape described in subparagraphs (A) and (B).
(2) Dyeing, printing, or finishing.--An apparel article
described in paragraph (1) shall be ineligible for duty-free
treatment under such paragraph if any component determining the
article's classification under the HTS comprises any fabric,
fabric component, or component knit-to-shape in the United
States that was dyed, printed, or finished at any place other
than in the United States.
(3) Other processes.--An apparel article described in
paragraph (1) shall not be disqualified from eligibility for
duty-free treatment under such paragraph because it undergoes
stone-washing, enzyme-washing, acid-washing, permapressing,
oven baking, bleaching, garment-dyeing, screen printing, or
other similar processes in either the United States or the
Philippines.
(c) Knit-to-Shape Apparel Articles.--A knit-to-shape apparel
article shall enter the United States free of duty if it is wholly
assembled in the Philippines and if the component determining the
article's classification under the HTS consists entirely of components
knit-to-shape in the Philippines from yarns wholly formed in the United
States.
(d) De Minimis Rules.--
(1) In general.--An article that would otherwise be
ineligible for preferential treatment under this section
because the article contains fibers or yarns not wholly formed
in the United States or in the Philippines shall not be
ineligible for such treatment if the total weight of all such
fibers or yarns is not more than 10 percent of the total weight
of the article.
(2) Elastomeric yarns.--Notwithstanding paragraph (1), an
article described in subsection (b) or (c) that contains
elastomeric yarns in the component of the article that
determines the article's classification under the HTS shall be
eligible for duty-free treatment under this section only if
such elastomeric yarns are wholly formed in the United States
or the Philippines.
(3) Direct shipment.--Any apparel article described in
subsection (b) or (c) is an eligible article only if it is
imported directly into the United States from the Philippines.
(e) Single Transformation Rules.--Any of the following apparel
articles that are cut and wholly assembled, or knit-to-shape, in the
Philippines from any combination of fabrics, fabric components,
components knit-to-shape, or yarns and are imported directly into the
United States from the Philippines shall enter the United States free
of duty, without regard to the source of the fabric, fabric components,
components knit-to-shape, or yarns from which the articles are made:
(1) Except for brassieres classified in subheading 6212.10
of the HTS, any apparel article that is of a type listed in
chapter rule 3(a), 4(a), or 5(a) for chapter 62 of the HTS, as
such chapter rule is contained in paragraph 9 of section A of
the Annex to Proclamation 8213 of the President of December 20,
2007, (as amended by Proclamation 8272 of June 30, 2008, or any
subsequent proclamation by the President).
(2) Any article not described in paragraph (1) that is any
of the following:
(A) Baby garments, clothing accessories, and
headwear classifiable under subheading 6111.20,
6111.30, 6111.90, 6209.20, 6209.30, 6209.90, or 6505.90
of the HTS.
(B) Women's and girls' cotton coats, over coats,
carcoats, capes, cloaks, anoraks (including ski-
jackets), windbreakers, padded sleeveless jackets with
attachments for sleeves, and similar articles
classifiable under subheading 6102.20, 6102.90,
6104.19, 6104.32, 6104.39, 6112.11, 6113.00, 6117.90,
6202.12, 6202.19, 6202.92, 6202.99, 6204.12, 6204.19,
6204.32, 6204.39, 6210.30, 6210.50, 6211.20, 6211.42,
or 6217.90 of the HTS.
(C) Cotton dresses classifiable under subheading
6104.42, 6104.49, 6204.42, or 6204.49 of the HTS.
(D) Manmade fiber dresses classifiable under
subheading 6104.43, 6104.44, 6104.49, 6204.43, 6204.44,
or 6204.49 of the HTS.
(E) Men's and boys' cotton shirts classifiable
under statistical reporting number 6205.20.1000,
6205.20.2021, 6205.20.2026, 6205.20.2031, 6205.20.2061,
6205.20.2076, 6205.90, or 6211.32 of the HTS.
(F) Men's and boys' cotton shirts not containing
dobby woven fabric classifiable under statistical
reporting number 6205.20.2003, 6205.20.2016,
6205.20.2051, 6205.20.2066 of the HTS.
(G) Manmade fiber pajamas and sleepwear
classifiable under subheading 6107.22, 6107.99,
6108.32, 6207.22, 6207.99, or 6208.22 of the HTS.
(H) Women's and girls' wool coats, overcoats,
carcoats, capes, cloaks, anoraks (including ski-
jackets), windbreakers, padded sleeveless jackets with
attachments for sleeves, and similar articles
classifiable under subheading 6102.10, 6102.30,
6102.90, 6104.31, 6104.33, 6104.39, 6117.90, 6202.11,
6202.13, 6202.19, 6202.91, 6202.93, 6202.99, 6204.31,
6204.33, 6204.39, 6211.20, 6211.41, or 6117.90 of the
HTS.
(I) Women's and girls' wool trousers, breeches, and
shorts classifiable under subheading 6104.61, 6104.63,
6104.69, 6117.90, 6204.61, 6204.63, 6204.69, 6211.20,
6211.41, or 6217.90 of the HTS.
(J) Women's and girls' cotton shirts and blouses
classifiable under subheading 6206.10, 6206.30,
6206.90, 6211.42, or 6217.90 of the HTS.
(K) Women's and girls' manmade fiber shirts,
blouses, shirt-blouses, sleeveless tank styles, and
similar upper body garments classifiable under
subheading 6206.10, 6206.40, 6206.90, 6211.43, or
6217.90 of the HTS.
(L) Women's and girls' manmade fiber coats,
jackets, carcoats, capes, cloaks, anoraks (including
ski-jackets), windbreakers, padded sleeveless jackets
with attachments for sleeves, and similar articles
classifiable under subheading 6202.13, 6202.19,
6202.93, 6202.99, 6204.33, 6204.39, 6210.30, 6210.50,
6211.20, 6211.43, or 6217.90 of the HTS.
(M) Cotton skirts classifiable under subheading
6104.19, 6104.52, 6104.59, 6204.12, 6204.19, 6204.52,
or 6204.59 of the HTS.
(N) Manmade fiber skirts classifiable under
subheading 6104.53, 6104.59, 6204.53, or 6204.59 of the
HTS.
(O) Men's and boys' manmade fiber coats, overcoats,
carcoats, capes, cloaks, anoraks (including ski-
jackets), windbreakers, padded sleeveless jackets with
attachments for sleeves, and similar articles
classifiable under subheading 6201.13, 6201.19,
6201.93, 6201.99, 6210.20, 6210.40, 6211.20, or 6211.33
of the HTS.
(P) Women's and girls' manmade fiber slips,
petticoats, briefs, panties, and underwear classifiable
under subheading 6108.11, 6108.22, 6108.92, 6109.90,
6208.11, or 6208.92 of the HTS.
(Q) Gloves, mittens, and mitts of cotton
classifiable under subheading 6116.10, 6116.92,
6116.99, or 6216.00 of the HTS.
(R) Other men's or boys' garments classifiable
under statistical reporting number 6211.32.0081 of the
HTS.
(f) Review and Report.--
(1) In general.--The Comptroller General of the United
States shall, not later than 3 years after the date of the
enactment of this Act, and every 3 years thereafter, review the
effectiveness of this section in supporting the use of United
States fabrics and make recommendations necessary to improve or
expand the provisions of this section to ensure support for the
use of United States fabrics.
(2) Recommendations.--After the second review required
under paragraph (1), the Comptroller General shall make a
determination regarding whether this section is effective in
supporting the use of United States fabrics and recommend to
Congress whether or not this section should be renewed.
(g) Enforcement.--Preferential treatment under this section shall
not be provided to textile and apparel articles that are imported from
the Philippines unless the President certifies to Congress that the
Philippines is meeting the following conditions:
(1) A valid original textile visa issued by the Philippines
is provided to U.S. Customs and Border Protection with respect
to any article for which preferential treatment is claimed. The
visa issued is in the standard 9-digit format required under
the Electronic Visa Information System (ELVIS) and meets all
reporting requirements of ELVIS.
(2) The Philippines is implementing the Electronic Visa
Information System (ELVIS) to assist in the prevention of
transshipment of apparel articles and the use of counterfeit
documents relating to the importation of apparel articles into
the United States.
(3) The Philippines is enforcing the Memorandum of
Understanding between the United States of America and the
Republic of the Philippines Concerning Cooperation in Trade in
Textile and Apparel Goods, signed on August 23, 2006.
(4) The Philippines agrees to provide, on a timely basis at
the request of U.S. Customs and Border Protection, and
consistently with the manner in which the records are kept in
the Philippines, a report on exports from the Philippines of
apparel articles eligible for preferential treatment under this
section, and on imports into the Philippines of yarns, fabrics,
fabric components, or components knit-to-shape that are wholly
formed in the United States.
(5) The Philippines 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 referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
(6) The Philippines agrees to require Philippines producers
and exporters of articles eligible for preferential treatment
under this section to maintain, for at least 5 years after the
date of export, complete records of the production and the
export of such articles, including records of yarns, fabrics,
fabric components, and components knit-to-shape and used in the
production of such articles.
(7) The Philippines agrees to provide, on a timely basis,
at the request of U.S. Customs and Border Protection,
documentation establishing the country of origin of articles
eligible for preferential treatment under this section, as used
by that country in implementing an effective visa system.
(8) The Philippines is to establish, within 60 days after
the date of the President's certification under this paragraph,
procedures that allow the Office of Textiles and Apparel of the
Department of Commerce (OTEXA) to obtain information when
fabric wholly formed in the United States is exported to the
Philippines to allow for monitoring and verification before the
imports of apparel articles containing the fabric for which
preferential treatment is sought under this section reach the
United States. The information provided upon export of the
fabrics shall include, among other things, the name of the
importer of the fabric in the Philippines, the 8-digit HTS
subheading covering the apparel articles to be made from the
fabric, and the quantity of the apparel articles to be made
from the fabric for importation into the United States.
(9) The Philippines has enacted legislation or promulgated
regulations to allow for the seizure of merchandise physically
transiting the territory of the Philippines and that appears to
be destined for the United States in circumvention of the
provisions of this Act.
(h) Customs Procedures.--
(1) In general.--
(A) Penalties for exporters.--If the President
determines, based on sufficient evidence, that an
exporter has engaged in transshipments as defined in
paragraph (2), then the President shall deny for a
period of 5 years all benefits under this section to
such exporter, any successor of such exporter, and any
other entity owned or operated by the principal of the
exporter.
(B) Penalties for importers.--If the President
determines, based on sufficient evidence, that an
importer has engaged in transshipments as defined in
paragraph (2), then the President shall deny for a
period of 5 years all benefits under this section to
such importer, any successor of such importer, or any
entity owned or operated by the principal of the
importer.
(2) Definition of transhipment.--For purposes of paragraph
(1) and subsection (g), transshipment has occurred when
preferential treatment for an apparel article under this
section has been claimed on the basis of material false
information concerning the country of origin, manufacture,
processing, cutting, or assembly of the article or of any
fabric, fabric component, or component knit-to-shape from which
the apparel article was cut and assembled. For purposes of this
paragraph, false information is material if disclosure of the
true information would have meant that the article is or was
ineligible for preferential treatment under this section.
(i) Proclamation Authority.--The President shall issue a
proclamation to carry out this section not later than 60 days after the
date of the enactment of this Act. The President shall consult with the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives in preparing such proclamation.
SEC. 5. EFFECTIVE DATE.
This Act shall apply to articles entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the date on
which the President issues the proclamation required by section 4(i).
SEC. 6. TERMINATION.
(a) In General.--The preferential duty treatment provided under
this Act shall remain in effect for a period of 7 years beginning on
the effective date provided for in section 5.
(b) GSP Eligibility.--The preferential duty treatment provided
under this Act shall terminate if and when the Philippines becomes
ineligible for designation as a beneficiary developing country under
title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Trade.
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