Public Law 107?210?aug. 6, 2002. Miscellaneous Tradebenefits. Wool Provisions.

PUBLIC LAW 107–210—AUG. 6, 2002 116 STAT. 1047

DIVISION E—MISCELLANEOUS

PROVISIONS

TITLE L—MISCELLANEOUS TRADE

BENEFITS

Subtitle A—Wool Provisions

SEC. 5101. WOOL PROVISIONS.

(a) SHORT TITLE.—This section may be cited as the ‘‘Wool

Manufacturer Payment Clarification and Technical Corrections

Act’’.

(b) CLARIFICATION OF TEMPORARY DUTY SUSPENSION.—Heading

9902.51.13 of the Harmonized Tariff Schedule of the United States

is amended by inserting ‘‘average’’ before ‘‘diameters’’.

(c) PAYMENTS TO MANUFACTURERS OF CERTAIN WOOL PRODUCTS.—

(1) PAYMENTS.—Section 505 of the Trade and Development

Act of 2000 (Public Law 106–200; 114 Stat. 303) is amended

as follows:

(A) Subsection (a) is amended—

(i) by striking ‘‘In each of the calendar years’’ and

inserting ‘‘For each of the calendar years’’; and

(ii) by striking ‘‘for a refund of duties’’ and all

that follows through the end of the subsection and

inserting ‘‘for a payment equal to an amount determined

pursuant to subsection (d)(1).’’.

(B) Subsection (b) is amended to read as follows:

‘‘(b) WOOL YARN.—

‘‘(1) IMPORTING MANUFACTURERS.—For each of the calendar

years 2000, 2001, and 2002, a manufacturer of worsted wool

fabrics who imports wool yarn of the kind described in heading

5107.10 or 9902.51.13 of the Harmonized Tariff Schedule of

the United States shall be eligible for a payment equal to

an amount determined pursuant to subsection (d)(2).

‘‘(2) NONIMPORTING MANUFACTURERS.—For each of the calendar

years 2001 and 2002, any other manufacturer of worsted

wool fabrics of imported wool yarn of the kind described in

heading 5107.10 or 9902.51.13 of the Harmonized Tariff

Schedule of the United States shall be eligible for a payment

equal to an amount determined pursuant to subsection (d)(2).’’.

(C) Subsection (c) is amended to read as follows:

‘‘(c) WOOL FIBER AND WOOL TOP.—

‘‘(1) IMPORTING MANUFACTURERS.—For each of the calendar

years 2000, 2001, and 2002, a manufacturer of wool yarn or

wool fabric who imports wool fiber or wool top of the kind

described in heading 5101.11, 5101.19, 5101.21, 5101.29,

Wool

Manufacturer

Payment

Clarification and

Technical

Corrections Act.

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116 STAT. 1042 PUBLIC LAW 107–210—AUG. 6, 2002

5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or

9902.51.14 of the Harmonized Tariff Schedule of the United

States shall be eligible for a payment equal to an amount

determined pursuant to subsection (d)(3).

‘‘(2) NONIMPORTING MANUFACTURERS.—For each of the calendar

years 2001 and 2002, any other manufacturer of wool

yarn or wool fabric of imported wool fiber or wool top of the

kind described in heading 5101.11, 5101.19, 5101.21, 5101.29,

5101.30, 5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or

9902.51.14 of the Harmonized Tariff Schedule of the United

States shall be eligible for a payment equal to an amount

determined pursuant to subsection (d)(3).’’.

(D) Section 505 is further amended by striking subsection

(d) and inserting the following new subsections:

‘‘(d) AMOUNT OF ANNUAL PAYMENTS TO MANUFACTURERS.—

‘‘(1) MANUFACTURERS OF MEN’S SUITS, ETC. OF IMPORTED

WORSTED WOOL FABRICS.—

‘‘(A) ELIGIBLE TO RECEIVE MORE THAN $5,000.—Each

annual payment to manufacturers described in subsection

(a) who, according to the records of the Customs Service

as of September 11, 2001, are eligible to receive more

than $5,000 for each of the calendar years 2000, 2001,

and 2002, shall be in an amount equal to one-third of

the amount determined by multiplying $30,124,000 by a

fraction—

‘‘(i) the numerator of which is the amount attributable

to the duties paid on eligible wool products

imported in calendar year 1999 by the manufacturer

making the claim, and

‘‘(ii) the denominator of which is the total amount

attributable to the duties paid on eligible wool products

imported in calendar year 1999 by all the manufacturers

described in subsection (a) who, according to the

records of the Customs Service as of September 11,

2001, are eligible to receive more than $5,000 for each

such calendar year under this section as it was in

effect on that date.

‘‘(B) ELIGIBLE WOOL PRODUCTS.—For purposes of

subparagraph (A), the term ‘eligible wool products’ refers

to imported worsted wool fabrics described in subsection

(a).

‘‘(C) OTHERS.—All manufacturers described in subsection

(a), other than the manufacturers to which subparagraph

(A) applies, shall each receive an annual payment

in an amount equal to one-third of the amount determined

by dividing $1,665,000 by the number of all such other

manufacturers.

‘‘(2) MANUFACTURERS OF WORSTED WOOL FABRICS OF

IMPORTED WOOL YARN.—

‘‘(A) IMPORTING MANUFACTURERS.—Each annual payment

to an importing manufacturer described in subsection

(b)(1) shall be in an amount equal to one-third of the

amount determined by multiplying $2,202,000 by a

fraction—

‘‘(i) the numerator of which is the amount attributable

to the duties paid on eligible wool products

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PUBLIC LAW 107–210—AUG. 6, 2002 116 STAT. 1043

imported in calendar year 1999 by the importing manufacturer

making the claim, and

‘‘(ii) the denominator of which is the total amount

attributable to the duties paid on eligible wool products

imported in calendar year 1999 by all the importing

manufacturers described in subsection (b)(1).

‘‘(B) ELIGIBLE WOOL PRODUCTS.—For purposes of

subparagraph (A), the term ‘eligible wool products’ refers

to imported wool yarn described in subsection (b)(1).

‘‘(C) NONIMPORTING MANUFACTURERS.—Each annual

payment to a nonimporting manufacturer described in subsection

(b)(2) shall be in an amount equal to one-half of

the amount determined by multiplying $141,000 by a

fraction—

‘‘(i) the numerator of which is the amount attributable

to the purchases of imported eligible wool products

in calendar year 1999 by the nonimporting manufacturer

making the claim, and

‘‘(ii) the denominator of which is the total amount

attributable to the purchases of imported eligible wool

products in calendar year 1999 by all the nonimporting

manufacturers described in subsection (b)(2).

‘‘(3) MANUFACTURERS OF WOOL YARN OR WOOL FABRIC OF

IMPORTED WOOL FIBER OR WOOL TOP.—

‘‘(A) IMPORTING MANUFACTURERS.—Each annual payment

to an importing manufacturer described in subsection

(c)(1) shall be in an amount equal to one-third of the

amount determined by multiplying $1,522,000 by a

fraction—

‘‘(i) the numerator of which is the amount attributable

to the duties paid on eligible wool products

imported in calendar year 1999 by the importing manufacturer

making the claim, and

‘‘(ii) the denominator of which is the total amount

attributable to the duties paid on eligible wool products

imported in calendar year 1999 by all the importing

manufacturers described in subsection (c)(1).

‘‘(B) ELIGIBLE WOOL PRODUCTS.—For purposes of

subparagraph (A), the term ‘eligible wool products’ refers

to imported wool fiber or wool top described in subsection

(c)(1).

‘‘(C) NONIMPORTING MANUFACTURERS.—Each annual

payment to a nonimporting manufacturer described in subsection

(c)(2) shall be in an amount equal to one-half of

the amount determined by multiplying $597,000 by a

fraction—

‘‘(i) the numerator of which is the amount attributable

to the purchases of imported eligible wool products

in calendar year 1999 by the nonimporting manufacturer

making the claim, and

‘‘(ii) the denominator of which is the amount attributable

to the purchases of imported eligible wool products

in calendar year 1999 by all the nonimporting

manufacturers described in subsection (c)(2).

‘‘(4) LETTERS OF INTENT.—Except for the nonimporting

manufacturers described in subsections (b)(2) and (c)(2) who

may make claims under this section by virtue of the enactment

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116 STAT. 1044 PUBLIC LAW 107–210—AUG. 6, 2002

of the Wool Manufacturer Payment Clarification and Technical

Corrections Act, only manufacturers who, according to the

records of the Customs Service, filed with the Customs Service

before September 11, 2001, letters of intent to establish eligibility

to be claimants are eligible to make a claim for a payment

under this section.

‘‘(5) AMOUNT ATTRIBUTABLE TO PURCHASES BY NONIMPORTING

MANUFACTURERS.—

‘‘(A) AMOUNT ATTRIBUTABLE.—For purposes of paragraphs

(2)(C) and (3)(C), the amount attributable to the

purchases of imported eligible wool products in calendar

year 1999 by a nonimporting manufacturer shall be the

amount the nonimporting manufacturer paid for eligible

wool products in calendar year 1999, as evidenced by

invoices. The nonimporting manufacturer shall make such

calculation and submit the resulting amount to the Customs

Service, within 45 days after the date of enactment

of the Wool Manufacturer Payment Clarification and Technical

Corrections Act, in a signed affidavit that attests

that the information contained therein is true and accurate

to the best of the affiant’s belief and knowledge. The nonimporting

manufacturer shall retain the records upon

which the calculation is based for a period of five years

beginning on the date the affidavit is submitted to the

Customs Service.

‘‘(B) ELIGIBLE WOOL PRODUCT.—For purposes of

subparagraph (A)—

‘‘(i) the eligible wool product for nonimporting

manufacturers of worsted wool fabrics is wool yarn

of the kind described in heading 5107.10 or 9902.51.13

of the Harmonized Tariff Schedule of the United States

purchased in calendar year 1999; and

‘‘(ii) the eligible wool products for nonimporting

manufacturers of wool yarn or wool fabric are wool

fiber or wool top of the kind described in heading

5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10,

5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of

such Schedule purchased in calendar year 1999.

‘‘(6) AMOUNT ATTRIBUTABLE TO DUTIES PAID.—For purposes

of paragraphs (1), (2)(A), and (3)(A), the amount attributable

to the duties paid by a manufacturer shall be the amount

shown on the records of the Customs Service as of September

11, 2001, under this section as then in effect.

‘‘(7) SCHEDULE OF PAYMENTS; REALLOCATIONS.—

‘‘(A) SCHEDULE.—Of the payments described in paragraphs

(1), (2)(A), and (3)(A), the Customs Service shall

make the first and second installments on or before the

date that is 45 days after the date of enactment of the

Wool Manufacturer Payment Clarification and Technical

Corrections Act, and the third installment on or before

April 15, 2003. Of the payments described in paragraphs

(2)(C) and (3)(C), the Customs Service shall make the first

installment on or before the date that is 120 days after

the date of enactment of the Wool Manufacturer Payment

Clarification and Technical Corrections Act, and the second

installment on or before April 15, 2003.

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PUBLIC LAW 107–210—AUG. 6, 2002 116 STAT. 1045

‘‘(B) REALLOCATIONS.—In the event that a manufacturer

that would have received payment under subparagraph

(A) or (C) of paragraph (1), (2), or (3) ceases to

be qualified for such payment as such a manufacturer,

the amounts otherwise payable to the remaining manufacturers

under such subparagraph shall be increased on a

pro rata basis by the amount of the payment such manufacturer

would have received.

‘‘(8) REFERENCE.—For purposes of paragraphs (1)(A) and

(6), the ‘records of the Customs Service as of September 11,

2001’ are the records of the Wool Duty Unit of the Customs

Service on September 11, 2001, as adjusted by the Customs

Service to the extent necessary to carry out this section. The

amounts so adjusted are not subject to administrative or judicial

review.

‘‘(e) AFFIDAVITS BY MANUFACTURERS.—

‘‘(1) AFFIDAVIT REQUIRED.—A manufacturer may not receive

a payment under this section for calendar year 2000, 2001,

or 2002, as the case may be, unless that manufacturer has

submitted to the Customs Service for that calendar year a

signed affidavit that attests that, during that calendar year,

the affiant was a manufacturer in the United States described

in subsection (a), (b), or (c).

‘‘(2) TIMING.—An affidavit under paragraph (1) shall be

valid—

‘‘(A) in the case of a manufacturer described in paragraph

(1), (2)(A), or (3)(A) of subsection (d) filing a claim

for a payment for calendar year 2000 or 2001, or both,

only if the affidavit is postmarked no later than 15 days

after the date of enactment of the Wool Manufacturer

Payment Clarification and Technical Corrections Act; and

‘‘(B) in the case of a claim for a payment for calendar

year 2002, only if the affidavit is postmarked no later

than March 1, 2003.

‘‘(f) OFFSETS.—Notwithstanding any other provision of this section,

any amount otherwise payable under subsection (d) to a manufacturer

in calendar year 2001 and, where applicable, in calendar

years 2002 and 2003, shall be reduced by the amount of any

payment received by that manufacturer under this section before

the enactment of the Wool Manufacturer Payment Clarification

and Technical Corrections Act.

‘‘(g) DEFINITION.—For purposes of this section, the manufacturer

is the party that owns—

‘‘(1) imported worsted wool fabric, of the kind described

in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff

Schedule of the United States, at the time the fabric is cut

and sewn in the United States into men’s or boys’ suits, suittype

jackets, or trousers;

‘‘(2) imported wool yarn, of the kind described in heading

5107.01 or 9902.51.13 of such Schedule, at the time the yarn

is processed in the United States into worsted wool fabric;

or

‘‘(3) imported wool fiber or wool top, of the kind described

in heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30,

5103.10, 5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of

such Schedule, at the time the wool fiber or wool top is processed

in the United States into wool yarn.’’.

Deadlines.

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116 STAT. 1046 PUBLIC LAW 107–210—AUG. 6, 2002

(2) FUNDING.—There is authorized to be appropriated and

is hereby appropriated, out of amounts in the General Fund

of the Treasury not otherwise appropriated, $36,251,000 to

carry out the amendments made by paragraph (1).

SEC. 5102. DUTY SUSPENSION ON WOOL.

(a) EXTENSION OF TEMPORARY DUTY REDUCTIONS.—

(1) HEADING 9902.51.11.—Heading 9902.51.11 of the Harmonized

Tariff Schedule of the United States is amended by

striking ‘‘2003’’ and inserting ‘‘2005’’.

(2) HEADING 9902.51.12.—Heading 9902.51.12 of the Harmonized

Tariff Schedule of the United States is amended—

(A) by striking ‘‘2003’’ and inserting ‘‘2005’’; and

(B) by striking ‘‘6%’’ and inserting ‘‘Free’’.

(3) HEADING 9902.51.13.—Heading 9902.51.13 of the Harmonized

Tariff Schedule of the United States is amended by

striking ‘‘2003’’ and inserting ‘‘2005’’.

(4) HEADING 9902.51.14.—Heading 9902.51.14 of the Harmonized

Tariff Schedule of the United States is amended by

striking ‘‘2003’’ and inserting ‘‘2005’’.

(b) LIMITATION ON QUANTITY OF IMPORTS.—

(1) NOTE 15.—U.S. Note 15 to subchapter II of chapter

99 of the Harmonized Tariff Schedule of the United States

is amended—

(A) by striking ‘‘from January 1 to December 31 of

each year, inclusive’’; and

(B) by striking ‘‘, or such other’’ and inserting the

following: ‘‘in calendar year 2001, 3,500,000 square meter

equivalents in calendar year 2002, and 4,500,000 square

meter equivalents in calendar year 2003 and each calendar

year thereafter, or such greater’’.

(2) NOTE 16.—U.S. Note 16 to subchapter II of chapter

99 of the Harmonized Tariff Schedule of the United States

is amended—

(A) by striking ‘‘from January 1 to December 31 of

each year, inclusive’’; and

(B) by striking ‘‘, or such other’’ and inserting the

following: ‘‘in calendar year 2001, 2,500,000 square meter

equivalents in calendar year 2002, and 3,500,000 square

meter equivalents in calendar year 2003 and each calendar

year thereafter, or such greater’’.

(c) EXTENSION OF DUTY REFUNDS AND WOOL RESEARCH TRUST

FUND.—

(1) IN GENERAL.—The United States Customs Service shall

pay each manufacturer that receives a payment under section

505 of the Trade and Development Act of 2000 (Public Law

106–200) for calendar year 2002, and that provides an affidavit

that it remains a manufacturer in the United States as of

January 1 of the year of the payment, 2 additional payments,

each payment equal to the payment received for calendar year

2002 as follows:

(A) The first payment to be made after January 1,

2004, but on or before April 15, 2004.

(B) The second payment to be made after January

1, 2005, but on or before April 15, 2005.

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PUBLIC LAW 107–210—AUG. 6, 2002 116 STAT. 1047

(2) CONFORMING AMENDMENT.—Section 506(f) of the Trade

and Development Act of 2000 (Public Law 106–200) is amended

by striking ‘‘2004’’ and inserting ‘‘2006’’.

(3) AUTHORIZATION.—There is authorized to be appropriated

and is hereby appropriated out of amounts in the general

fund of the Treasury not otherwise appropriated such

sums as are necessary to carry out the provisions of this subsection.

(d) EFFECTIVE DATE.—The amendment made by subsection

(a)(2)(B) applies to goods entered, or withdrawn from warehouse

for consumption, on or after January 1, 2002.