Details of the Recently Enacted Miscellaneous Trade Bill (Part XIII)

This is Part XIII of a multi-part series of summaries on the conference version of H.R. 1047 and provides highlights of provisions regarding foreign repair of U.S. documented vessels, import restrictions on Iraqi cultural antiquities, intellectual property rights protection, and certain wool and wool fabric.

New Duty Exemption for the Foreign Repair of U.S. Documented Vessels

The conference version would amend 19 USC 1466(h), to add new duty exemption (4) for the cost of equipment, repair parts, and materials that are installed on a vessel documented under the laws of the U.S. and engaged in the foreign or coasting trade, if the installation is done by members of the regular crew of such vessel while the vessel is on the high seas.

The conference version would also amend 19 USC 1466(h) to state that declaration and entry shall not be required with respect to the installation, equipment, parts, and materials described in (4) above.

In addition, the conference version would amend HTS Chapter 98, Subchapter XVIII in order to add a new U.S. Note 2 to state that notwithstanding the provisions in HTS 9818.00.03 - 9818.00.07, no duty would apply to the cost of equipment, repair parts, and materials that are installed on a vessel documented under the laws of the U.S. and engaged in the foreign or coasting trade, if the installation is done by members of the regular crew of such vessel while the vessel is on the high seas, and that declaration and entry would not be required with respect to such installation, equipment, parts, and materials.

Emergency Implementation of Import Restrictions on Iraqi Cultural Antiquities

The conference version would allow the President to exercise the authority under section 304 of the Convention on Cultural Property Implementation Act (19 USC 2603) with respect to any archaeological or ethnological material of Iraq without regard to whether Iraq is a State Party under that Act, with certain exceptions. The conference version also contains a definition of "archaeological or ethnological material of Iraq."

Intellectual Property Rights Protection

The conference version also contains provisions relating to the protection of intellectual property rights (IPR). According to the joint explanatory statement that accompanied the conference version, this provision would conform the timetable in Section 304 (the timetable for the USTR to conclude a Special 301 investigation) to the World Trade Organization (WTO) dispute settlement timetable and require the U.S. Trade Representative (USTR) to make its Special 301 determination not later than 30 days after the WTO dispute settlement proceeding is concluded.

Wool Suit and Textile Trade Extension Act of 2004

A section entitled "Wool Suit and Textile Trade Extension Act of 2004" in the conference version would amend the HTS Chapter 99 provisions on wool fabric, as follows:

The description of the low-duty tariff-rate quota (TRQ) in HTS 9902.51.11 would be amended to read as follows (plusses indicate new language and carrots < > indicate stricken language):

"Fabrics, of worsted wool, with average fiber diameters greater than 18.5 micron,<all the foregoing certified by the importer as suitable for use in making suits, suit-type jackets, or trousers (provided for in subheading 5111.11.70, 5111.19.60. 5112.11.60, or 5112.19.95> (provided for in subheading 5112.11.60 or 5112.19.95);"

The TRQ duty rate for HTS 9902.51.11 would be reduced to 10% (from 17.5%);

the effective period of HTS 9902.51.11 would be extended through 2007 (from through 2005);

HTS 9902.51.12 (free) for certain fabrics of worsted wool, with average fiber diameters of 18.5 micron or less would be eliminated;

The effective periods for HTS 9902.51.13 and 9902.51.14 would be extended through 2007 (from through 2005.)

A new duty-free TRQ (HTS 9902.51.15) would be added through 2006 for fabrics of combed wool, containing 85% or more by weight of wool, with wool yarns of average fiber diameters of 18.5 micron or less, under the terms of U.S. note 16(b) to this subchapter (provided for in subheading 5112.11.30 or 5112.19.60);

A new duty-free TRQ (HTS 9902.51.16) would be added through 2006 for fabrics of combed wool containing 85% or more by weight of wool, with wool yarns of average fiber diameters of 18.5 micron or less, under the terms of [new] U.S. Note 17 to this subchapter (provided for in subheading 5112.11.30 or 5112.19.60);

HTS Chapter 99, Subchapter II, U.S. Note 15, would be amended by redesignating it as U.S. Note 15(a), increasing the TRQ quantity for 2005 (and after), adding that 9902.51.11 is for the benefit of persons who cut and sew men's and boys' worsted wool suits and suit-like jackets and trousers in the U.S., and adding a new paragraph (b) to read as follows:

(b) For purposes of hearing 9902.51.11, all fabrics entered under such heading must be certified by the importer as suitable for use in making men's and boys' suits (as defined in U.S. Note 13 to this subchapter), suit-type jackets, or trousers and must be imported for the benefitof persons who cut and sew such clothing in the U.S."

HTS Chapter 99, Subchapter II, U.S. Note 16 would be amended by redesignating it as U.S. Note 16(a), increasing the TRQ quantity for 2005 (and after), removing the reference to deleted HTS 9902.51.12, adding that 9902.51.15 is for the benefit of persons who cut and sew such clothing in the U.S., and adding a new paragraph (b) to read as follows:

"For purposes of heading 9902.51.15, all fabrics entered under such heading must be certified by the importer as suitable for use in making men's and boys' suits (as defined in U.S. note 13 to this subchapter), suit-type jackets, or trousers and must be imported for the benefit of persons who cut and sew such clothing in the U.S."

Adds a new U.S. Note 17 to HTS Chapter 99, Subchapter II which reads as follows:

"(a) the aggregate quantity of worsted wool fabric entered under HTS 9902.51.16 shall be limited to 2,000,000 square meters equivalent in calendar year 2005 and each calendar year thereafter, allocated in accordance with section 501(e) of the Trade and Development Act of 2000 for the benefit of persons who weave worsted wool fabric suitable for use in men's and boys' suits.

(b) For purposes of heading 9902.51.16, all fabrics entered under such heading must be certified by the importer as suitable for use in making men's and boys' suits (as defined in U.S. note 13 to this subchapter), suit-type jackets, or trousers and must be imported for the benefit of persons who cut and sew such clothing in the U.S."

Extension of Duty Refund and Research Trust Fund

The conference version states it would also establish within the U.S. Treasury a "Wool Apparel Manufacturers Trust Fund."

Money for the fund would be provided out of Treasury's general fund, in amounts determined to be equivalent to the amounts received in the general fund that are attributable to the duty received on articles classified under HTS Chapter 51, subject to certain limitations.

Using the money in the trust fund, U.S. Customs and Border Protection (CBP) shall pay to each manufacturer that receives a payment during calendar 2005 under section 505 of the Trade and Development Act of 2000, and that provides an affidavit, no later than March 1 of the year of the payment, that it remains a manufacturer in the U.S. as of January 1 of the year of the payment, 2 additional payments (one each for 2006 and 2007), each payment equal to the payment received for calendar year 2005, according to a specified payment schedule.

The conference version also provides for successors in interest to certain of these manufacturers.

In addition, the conference version would extend the "Wool Research, Development, and Promotion Trust Fund" through 2008.

Moreover, the conference version would state that the Commerce Secretary shall provide grants in each of calendar years 2005 through 2007, to:

(1) persons who were, during calendar years 1999, 2000, and 2001, manufacturers of worsted wool fabric of the kind described in HTS 9902.51.12 (as in effect on the day before the date of enactment), and

(2) person who were, during such calendar years, manufacturers of worsted wool fabric of the kind described in HTS 9902.51.11.

The conference version states that the total amount of grants to the manufacturers under (1) and the manufacturers under (2) shall each be $2,666,000 a calendar year, allocated among such manufacturers on the basis of the percentage of each manufacturers production of the specified worsted wool fabric, etc.

In addition, any grant awarded by Commerce shall be final and not subject to appeal or protest.

See ITT's Online Archives or 10/19/04, 10/20/04, 10/22/04, 11/02/04, 11/30/04, 12/01/04, 12/03/04, 12/06/04, 12/07/04, and 12/08/04 news, 04102005, 04102225, 04110115, 04110225, 04113020, 04120105, 04120210, 04120310, 04120630, 04120720, and 04120830, for Parts I-XII.

P.L. 108-429 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h1047enr.txt.pdf.