S.1009 - Agoa Extension And Enhancement Act Of 2015

[congressional bills 114th congress]
[from the u.s. government publishing office]
[s. 1009 introduced in senate (is)]

114th congress
  1st session
                                s. 1009

   to extend the african growth and opportunity act, the generalized 
  system of preferences, the preferential duty treatment program for 
                     haiti, and for other purposes.


_______________________________________________________________________


                   in the senate of the united states

                             april 20, 2015

   mr. hatch introduced the following bill; which was read twice and 
                  referred to the committee on finance

_______________________________________________________________________

                                 a bill


 
   to extend the african growth and opportunity act, the generalized 
  system of preferences, the preferential duty treatment program for 
                     haiti, and for other purposes.

    be it enacted by the senate and house of representatives of the 
united states of america in congress assembled,

        title i--extension of african growth and opportunity act

sec. 101. short title.

    this title may be cited as the ``agoa extension and enhancement act 
of 2015''.

sec. 102. findings.

    congress finds the following:
            (1) since its enactment, the african growth and opportunity 
        act has been the centerpiece of trade relations between the 
        united states and sub-saharan africa and has enhanced trade, 
        investment, job creation, and democratic institutions 
        throughout africa.
            (2) trade and investment, as facilitated by the african 
        growth and opportunity act, promote economic growth, 
        development, poverty reduction, democracy, the rule of law, and 
        stability in sub-saharan africa.
            (3) trade between the united states and sub-saharan africa 
        has more than tripled since the enactment of the african growth 
        and opportunity act in 2000, and united states direct 
        investment in sub-saharan africa has grown almost six-fold.
            (4) it is in the interest of the united states to engage 
        and compete in emerging markets in sub-saharan african 
        countries, to boost trade and investment between the united 
        states and sub-saharan african countries, and to renew and 
        strengthen the african growth and opportunity act.
            (5) the long-term economic security of the united states is 
        enhanced by strong economic and political ties with the 
        fastest-growing economies in the world, many of which are in 
        sub-saharan africa.
            (6) it is a goal of the united states to further integrate 
        sub-saharan african countries into the global economy, 
        stimulate economic development in africa, and diversify sources 
        of growth in sub-saharan africa.
            (7) to that end, implementation of the agreement on trade 
        facilitation of the world trade organization would strengthen 
        regional integration efforts in sub-saharan africa and 
        contribute to economic growth in the region.
            (8) the elimination of barriers to trade and investment in 
        sub-saharan africa, including high tariffs, forced localization 
        requirements, restrictions on investment, and customs barriers, 
        will create opportunities for workers, businesses, farmers, and 
        ranchers in the united states and sub-saharan african 
        countries.
            (9) the elimination of such barriers will improve 
        utilization of the african growth and opportunity act and 
        strengthen regional and global integration, accelerate economic 
        growth in sub-saharan africa, and enhance the trade 
        relationship between the united states and sub-saharan africa.

sec. 103. extension of african growth and opportunity act.

    (a) in general.--section 506b of the trade act of 1974 (19 u.s.c. 
2466b) is amended by striking ``september 30, 2015'' and inserting 
``september 30, 2025''.
    (b) african growth and opportunity act.--
            (1) in general.--section 112(g) of the african growth and 
        opportunity act (19 u.s.c. 3721(g)) is amended by striking 
        ``september 30, 2015'' and inserting ``september 30, 2025''.
            (2) extension of regional apparel article program.--section 
        112(b)(3)(a) of the african growth and opportunity act (19 
        u.s.c. 3721(b)(3)(a)) is amended--
                    (a) in clause (i), by striking ``11 succeeding'' 
                and inserting ``21 succeeding''; and
                    (b) in clause (ii)(ii), by striking ``september 30, 
                2015'' and inserting ``september 30, 2025''.
            (3) extension of third-country fabric program.--section 
        112(c)(1) of the african growth and opportunity act (19 u.s.c. 
        3721(c)(1)) is amended--
                    (a) in the paragraph heading, by striking 
                ``september 30, 2015'' and inserting ``september 30, 
                2025'';
                    (b) in subparagraph (a), by striking ``september 
                30, 2015'' and inserting ``september 30, 2025''; and
                    (c) in subparagraph (b)(ii), by striking 
                ``september 30, 2015'' and inserting ``september 30, 
                2025''.

sec. 104. modifications of rules of origin for duty-free treatment for 
              articles of beneficiary sub-saharan african countries 
              under generalized system of preferences.

    (a) in general.--section 506a(b)(2) of the trade act of 1974 (19 
u.s.c. 2466a(b)(2)) is amended--
            (1) in subparagraph (a), by striking ``and'' at the end;
            (2) in subparagraph (b), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(c) the direct costs of processing operations 
                performed in one or more such beneficiary sub-saharan 
                african countries or former beneficiary sub-saharan 
                african countries shall be applied in determining such 
                percentage.''.
    (b) applicability to articles receiving duty-free treatment under 
title v of trade act of 1974.--section 506a(b) of the trade act of 1974 
(19 u.s.c. 2466a(b)) is amended by adding at the end the following:
            ``(3) rules of origin under this title.--the exceptions set 
        forth in subparagraphs (a), (b), and (c) of paragraph (2) shall 
        also apply to any article described in section 503(a)(1) that 
        is the growth, product, or manufacture of a beneficiary sub-
        saharan african country for purposes of any determination to 
        provide duty-free treatment with respect to such article.''.
    (c) modifications to the harmonized tariff schedule.--the president 
may proclaim such modifications as may be necessary to the harmonized 
tariff schedule of the united states (hts) to add the special tariff 
treatment symbol ``d'' in the ``special'' subcolumn of the hts for each 
article classified under a heading or subheading with the special 
tariff treatment symbol ``a'' or ``a*'' in the ``special'' subcolumn of 
the hts.
    (d) effective date.--the amendments made by subsections (a) and (b) 
take effect on the date of the enactment of this act and apply with 
respect to any article described in section 503(b)(1)(b) through (g) of 
the trade act of 1974 that is the growth, product, or manufacture of a 
beneficiary sub-saharan african country and that is imported into the 
customs territory of the united states on or after the date that is 30 
days after such date of enactment.

sec. 105. monitoring and review of eligibility under generalized system 
              of preferences.

    (a) continuing compliance.--section 506a(a)(3) of the trade act of 
1974 (19 u.s.c. 2466a(a)(3)) is amended--
            (1) by striking ``if the president'' and inserting the 
        following:
                    ``(a) in general.--if the president''; and
            (2) by adding at the end the following:
                    ``(b) notification.--the president may not 
                terminate the designation of a country as a beneficiary 
                sub-saharan african country under subparagraph (a) 
                unless, at least 60 days before the termination of such 
                designation, the president notifies congress and 
                notifies the country of the president's intention to 
                terminate such designation, together with the 
                considerations entering into the decision to terminate 
                such designation.''.
    (b) withdrawal, suspension, or limitation of preferential tariff 
treatment.--section 506a of the trade act of 1974 (19 u.s.c. 2466a) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) withdrawal, suspension, or limitation of preferential tariff 
treatment.--
            ``(1) in general.--the president may withdraw, suspend, or 
        limit the application of duty-free treatment provided for any 
        article described in subsection (b)(1) of this section or 
        section 112 of the african growth and opportunity act with 
        respect to a beneficiary sub-saharan african country if the 
        president determines that withdrawing, suspending, or limiting 
        such duty-free treatment would be more effective in promoting 
        compliance by the country with the requirements described in 
        subsection (a)(1) than terminating the designation of the 
        country as a beneficiary sub-saharan african country for 
        purposes of this section.
            ``(2) notification.--the president may not withdraw, 
        suspend, or limit the application of duty-free treatment under 
        paragraph (1) unless, at least 60 days before such withdrawal, 
        suspension, or limitation, the president notifies congress and 
        notifies the country of the president's intention to withdraw, 
        suspend, or limit such duty-free treatment, together with the 
        considerations entering into the decision to terminate such 
        designation.''.
    (c) review and public comments on eligibility requirements.--
section 506a of the trade act of 1974 (19 u.s.c. 2466a), as so amended, 
is further amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) review and public comments on eligibility requirements.--
            ``(1) in general.--in carrying out subsection (a)(2), the 
        president shall publish annually in the federal register a 
        notice of review and request for public comments on whether 
        beneficiary sub-saharan african countries are meeting the 
        eligibility requirements set forth in section 104 of the 
        african growth and opportunity act and the eligibility criteria 
        set forth in section 502 of this act.
            ``(2) public hearing.--the united states trade 
        representative shall, not later than 30 days after the date on 
        which the president publishes the notice of review and request 
        for public comments under paragraph (1)--
                    ``(a) hold a public hearing on such review and 
                request for public comments; and
                    ``(b) publish in the federal register, before such 
                hearing is held, notice of--
                            ``(i) the time and place of such hearing; 
                        and
                            ``(ii) the time and place at which such 
                        public comments will be accepted.
            ``(3) petition process.--
                    ``(a) in general.--not later than 60 days after the 
                date of the enactment of this subsection, the president 
                shall establish a process to allow any interested 
                person, at any time, to file a petition with the office 
                of the united states trade representative with respect 
                to the compliance of any country listed in section 107 
                of the african growth and opportunity act with the 
                eligibility requirements set forth in section 104 of 
                such act and the eligibility criteria set forth in 
                section 502 of this act.
                    ``(b) use of petitions.--the president shall take 
                into account all petitions filed pursuant to 
                subparagraph (a) in making determinations of compliance 
                under subsections (a)(3)(a) and (c) and in preparing 
                any reports required by this title as such reports 
                apply with respect to beneficiary sub-saharan african 
                countries.
            ``(4) out-of-cycle reviews.--
                    ``(a) in general.--the president may, at any time, 
                initiate an out-of-cycle review of whether a 
                beneficiary sub-saharan african country is making 
                continual progress in meeting the requirements 
                described in paragraph (1). the president shall give 
                due consideration to petitions received under paragraph 
                (3) in determining whether to initiate an out-of-cycle 
                review under this subparagraph.
                    ``(b) congressional notification.--before 
                initiating an out-of-cycle review under subparagraph 
                (a), the president shall notify and consult with 
                congress.
                    ``(c) consequences of review.--if, pursuant to an 
                out-of-cycle review conducted under subparagraph (a), 
                the president determines that a beneficiary sub-saharan 
                african country does not meet the requirements set 
                forth in section 104(a) of the african growth and 
                opportunity act (19 u.s.c. 3703(a)), the president 
                shall, subject to the requirements of subsections 
                (a)(3)(b) and (c)(2), terminate the designation of the 
                country as a beneficiary sub-saharan african country or 
                withdraw, suspend, or limit the application of duty-
                free treatment with respect to articles from the 
                country.
                    ``(d) reports.--after each out-of-cycle review 
                conducted under subparagraph (a) with respect to a 
                country, the president shall submit to the committee on 
                finance of the senate and the committee on ways and 
                means of the house of representatives a report on the 
                review and any determination of the president to 
                terminate the designation of the country as a 
                beneficiary sub-saharan african country or withdraw, 
                suspend, or limit the application of duty-free 
                treatment with respect to articles from the country 
                under subparagraph (c).
                    ``(e) sense of congress.--recognizing that concerns 
                have been raised about the compliance with section 
                104(a) of the african growth and opportunity act (19 
                u.s.c. 3703(a)) of some beneficiary sub-saharan african 
                countries, the president should initiate an out-of-
                cycle review under subparagraph (a) with respect to 
                south africa, the most developed of the beneficiary 
                sub-saharan african countries, and other beneficiary 
                countries as appropriate, not later than 30 days after 
                the date of the enactment of this subsection.''.

sec. 106. biennial agoa utilization strategies.

    (a) in general.--it is the sense of congress that--
            (1) beneficiary sub-saharan african countries should 
        develop utilization strategies on a biennial basis in order to 
        more effectively and strategically utilize benefits available 
        under the african growth and opportunity act (in this section 
        referred to as ``agoa utilization strategies'');
            (2) united states trade capacity building agencies should 
        work with, and provide appropriate resources to, such sub-
        saharan african countries to assist in developing and 
        implementing biennial agoa utilization strategies; and
            (3) as appropriate, and to encourage greater regional 
        integration, the united states trade representative should 
        consider requesting the regional economic communities to 
        prepare biennial agoa utilization strategies.
    (b) contents.--it is further the sense of congress that biennial 
agoa utilization strategies should identify strategic needs and 
priorities to bolster utilization of benefits available under the 
african growth and opportunity act. to that end, biennial agoa 
utilization strategies should--
            (1) review potential exports under the african growth and 
        opportunity act and identify opportunities and obstacles to 
        increased trade and investment and enhanced poverty reduction 
        efforts;
            (2) identify obstacles to regional integration that inhibit 
        utilization of benefits under the african growth and 
        opportunity act;
            (3) set out a plan to take advantage of opportunities and 
        address obstacles identified in paragraphs (1) and (2), improve 
        awareness of the african growth and opportunity act as a 
        program that enhances exports to the united states, and utilize 
        united states agency for international development regional 
        trade hubs;
            (4) set out a strategy to promote small business and 
        entrepreneurship; and
            (5) eliminate obstacles to regional trade and promote 
        greater utilization of benefits under the african growth and 
        opportunity act and establish a plan to promote full regional 
        implementation of the agreement on trade facilitation of the 
        world trade organization.
    (c) publication.--it is further the sense of congress that--
            (1) each beneficiary sub-saharan african country should 
        publish on an appropriate internet website of such country 
        public versions of its agoa utilization strategy; and
            (2) the united states trade representative should publish 
        on the internet website of the office of the united states 
        trade representative public versions of all agoa utilization 
        strategies described in paragraph (1).

sec. 107. deepening and expanding trade and investment ties between 
              sub-saharan africa and the united states.

    it is the policy of the united states to continue to--
            (1) seek to deepen and expand trade and investment ties 
        between sub-saharan africa and the united states, including 
        through the negotiation of accession by sub-saharan african 
        countries to the world trade organization and the negotiation 
        of trade and investment framework agreements, bilateral 
        investment treaties, and free trade agreements, as such 
        agreements have the potential to catalyze greater trade and 
        investment, facilitate additional investment in sub-saharan 
        africa, further poverty reduction efforts, and promote economic 
        growth;
            (2) seek to negotiate agreements with individual sub-
        saharan african countries as well as with the regional economic 
        communities, as appropriate;
            (3) promote full implementation of commitments made under 
        the wto agreement (as such term is defined in section 2(9) of 
        the uruguay round agreements act (19 u.s.c. 3501(9)) because 
        such actions are likely to improve utilization of the african 
        growth and opportunity act and promote trade and investment and 
        because regular review to ensure continued compliance helps to 
        maximize the benefits of the african growth and opportunity 
        act; and
            (4) promote the negotiation of trade agreements that cover 
        substantially all trade between parties to such agreements and, 
        if other countries seek to negotiate trade agreements that do 
        not cover substantially all trade, continue to object in all 
        appropriate forums.

sec. 108. reports.

    (a) implementation report.--
            (1) in general.--not later than 1 year after the date of 
        the enactment of this act, and biennially thereafter, the 
        president shall submit to congress a report on the trade and 
        investment relationship between the united states and sub-
        saharan african countries and on the implementation of this 
        title and the amendments made by this title.
            (2) matters to be included.--the report required by 
        paragraph (1) shall include the following:
                    (a) a description of the status of trade and 
                investment between the united states and sub-saharan 
                africa, including information on leading exports to the 
                united states from sub-saharan african countries.
                    (b) any changes in eligibility of sub-saharan 
                african countries during the period covered by the 
                report.
                    (c) a detailed analysis of whether each such 
                beneficiary sub-saharan african country is continuing 
                to meet the eligibility requirements set forth in 
                section 104 of the african growth and opportunity act 
                and the eligibility criteria set forth in section 502 
                of the trade act of 1974.
                    (d) a description of the status of regional 
                integration efforts in sub-saharan africa.
                    (e) a summary of united states trade capacity 
                building efforts.
                    (f) any other initiatives related to enhancing the 
                trade and investment relationship between the united 
                states and sub-saharan african countries.
    (b) potential trade agreements report.--not later than 1 year after 
the date of the enactment of this act, and every 5 years thereafter, 
the united states trade representative shall submit to congress a 
report that--
            (1) identifies sub-saharan african countries that have a 
        expressed an interest in entering into a free trade agreement 
        with the united states;
            (2) evaluates the viability and progress of such sub-
        saharan african countries and other sub-saharan african 
        countries toward entering into a free trade agreement with the 
        united states; and
            (3) describes a plan for negotiating and concluding such 
        agreements, which includes the elements described in 
        subparagraphs (a) through (e) of section 116(b)(2) of the 
        african growth and opportunity act.
    (c) termination.--the reporting requirements of this section shall 
cease to have any force or effect after september 30, 2025.

sec. 109. technical amendments.

    section 104 of the african growth and opportunity act (19 u.s.c. 
3703) is amended--
            (1) in subsection (a), by striking ``(a) in general.--''; 
        and
            (2) by striking subsection (b).

sec. 110. definitions.

    in this title:
            (1) beneficiary sub-saharan african country.--the term 
        ``beneficiary sub-saharan african country'' means a beneficiary 
        sub-saharan african country described in subsection (e) of 
        section 506a of the trade act of 1974 (as redesignated by this 
        act).
            (2) sub-saharan african country.--the term ``sub-saharan 
        african country'' has the meaning given the term in section 107 
        of the african growth and opportunity act.

        title ii--extension of generalized system of preferences

sec. 201. extension of generalized system of preferences.

    (a) in general.--section 505 of the trade act of 1974 (19 u.s.c. 
2465) is amended by striking ``july 31, 2013'' and inserting ``december 
31, 2017''.
    (b) effective date.--
            (1) in general.--the amendment made by subsection (a) shall 
        apply to articles entered on or after the 30th day after the 
        date of the enactment of this act.
            (2) retroactive application for certain liquidations and 
        reliquidations.--
                    (a) in general.--notwithstanding section 514 of the 
                tariff act of 1930 (19 u.s.c. 1514) or any other 
                provision of law and subject to subparagraph (b), any 
                entry of a covered article to which duty-free treatment 
                or other preferential treatment under title v of the 
                trade act of 1974 (19 u.s.c. 2461 et seq.) would have 
                applied if the entry had been made on july 31, 2013, 
                that was made--
                            (i) after july 31, 2013, and
                            (ii) before the effective date specified in 
                        paragraph (1),
                shall be liquidated or reliquidated as though such 
                entry occurred on the effective date specified in 
                paragraph (1).
                    (b) requests.--a liquidation or reliquidation may 
                be made under subparagraph (a) with respect to an entry 
                only if a request therefor is filed with u.s. customs 
                and border protection not later than 180 days after the 
                date of the enactment of this act that contains 
                sufficient information to enable u.s. customs and 
                border protection--
                            (i) to locate the entry; or
                            (ii) to reconstruct the entry if it cannot 
                        be located.
                    (c) payment of amounts owed.--any amounts owed by 
                the united states pursuant to the liquidation or 
                reliquidation of an entry of a covered article under 
                subparagraph (a) shall be paid, without interest, not 
                later than 90 days after the date of the liquidation or 
                reliquidation (as the case may be).
            (3) definitions.--in this subsection:
                    (a) covered article.--the term ``covered article'' 
                means an article from a country that is a beneficiary 
                developing country under title v of the trade act of 
                1974 (19 u.s.c. 2461 et seq.) as of the effective date 
                specified in paragraph (1).
                    (b) enter; entry.--the terms ``enter'' and 
                ``entry'' include a withdrawal from warehouse for 
                consumption.

sec. 202. authority to designate certain cotton articles as eligible 
              articles only for least-developed beneficiary developing 
              countries under generalized system of preferences.

    section 503(b) of the trade act of 1974 (19 u.s.c. 2463(b)) is 
amended by adding at the end the following:
            ``(5) certain cotton articles.--notwithstanding paragraph 
        (3), the president may designate as an eligible article or 
        articles under subsection (a)(1)(b) only for countries 
        designated as least-developed beneficiary developing countries 
        under section 502(a)(2) cotton articles classifiable under 
        subheading 5201.00.18, 5201.00.28, 5201.00.38, 5202.99.30, or 
        5203.00.30 of the harmonized tariff schedule of the united 
        states.''.

sec. 203. application of competitive need limitation and waiver under 
              generalized system of preferences with respect to 
              articles of beneficiary developing countries exported to 
              the united states during calendar year 2014.

    (a) in general.--for purposes of applying and administering 
subsections (c)(2) and (d) of section 503 of the trade act of 1974 (19 
u.s.c. 2463) with respect to an article described in subsection (b) of 
this section, subsections (c)(2) and (d) of section 503 of such act 
shall be applied and administered by substituting ``october 1'' for 
``july 1'' each place such date appears.
    (b) article described.--an article described in this subsection is 
an article of a beneficiary developing country that is designated by 
the president as an eligible article under subsection (a) of section 
503 of the trade act of 1974 (19 u.s.c. 2463) and with respect to which 
a determination described in subsection (c)(2)(a) of such section was 
made with respect to exports (directly or indirectly) to the united 
states of such eligible article during calendar year 2014 by the 
beneficiary developing country.

 title iii--extension of preferential duty treatment program for haiti

sec. 301. extension of preferential duty treatment program for haiti.

    section 213a of the caribbean basin economic recovery act (19 
u.s.c. 2703a) is amended as follows:
            (1) subsection (b) is amended as follows:
                    (a) paragraph (1) is amended--
                            (i) in subparagraph (b)(v)(i), by amending 
                        item (cc) to read as follows:
                                            ``(cc) 60 percent or more 
                                        during the 1-year period 
                                        beginning on december 20, 2017, 
                                        and each of the 7 succeeding 1-
                                        year periods.''; and
                            (ii) in subparagraph (c)--
                                    (i) in the table, by striking ``11 
                                succeeding 1-year periods'' and 
                                inserting ``16 succeeding 1-year 
                                periods''; and
                                    (ii) by striking ``december 19, 
                                2018'' and inserting ``december 19, 
                                2025''.
                    (b) paragraph (2) is amended--
                            (i) in subparagraph (a)(ii), by striking 
                        ``11 succeeding 1-year periods'' and inserting 
                        ``16 succeeding 1-year periods''; and
                            (ii) in subparagraph (b)(iii), by striking 
                        ``11 succeeding 1-year periods'' and inserting 
                        ``16 succeeding 1-year periods''.
            (2) subsection (h) is amended by striking ``september 30, 
        2020'' and inserting ``september 30, 2025''.

                       title iv--other provisions

sec. 401. customs user fees.

    (a) in general.--section 13031(j)(3)(a) of the consolidated omnibus 
budget reconciliation act of 1985 (19 u.s.c. 58c(j)(3)(a)) is amended 
by striking ``september 30, 2024'' and inserting ``july 7, 2025''.
    (b) rate for merchandise processing fees.--section 503 of the 
united states-korea free trade agreement implementation act (public law 
112-41; 125 stat. 460) is amended by striking ``june 30, 2021'' and 
inserting ``june 30, 2025''.

sec. 402. time for payment of corporate estimated taxes.

    notwithstanding section 6655 of the internal revenue code of 1986, 
in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding taxable 
year)--
            (1) the amount of any required installment of corporate 
        estimated tax which is otherwise due in july, august, or 
        september of 2020 shall be increased by 5.25 percent of such 
        amount (determined without regard to any increase in such 
        amount not contained in such code); and
            (2) the amount of the next required installment after an 
        installment referred to in paragraph (1) shall be appropriately 
        reduced to reflect the amount of the increase by reason of such 
        paragraph.
                                 
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