Proclamations Proc. 7351 Annex (con.) 3 (3). The following new subchapter XX is inserted in chapter 98 of the HTS, together with its U.S. notes and tariff provisions: "SOBCHAPTER XX GOODS ELIG1BLE FOR SPECIAL TARIFF BENEFITS UNDER THE l JNITED STATES-CARIBBEAN BASIN TRADE PARTNERSHIP ACT U.S. Notes 1. The tariff treatment provided in this subchapter shall be accorded only to textile and apparel articles that are described in such subheadings and imported directly into the customs ten/tory of the United States from a designated United States-Caribbean Basin Trade Paradership Act (CBTPA) benefialary country e\177mmerated in general note 17(a) to the tariff schedule. 2. (a) Except as provided in this note. textile and apparel articles described m subheadings 9820.11.03 through 9820.11.30, inclusive. of this subchapter that are imported directly into the customs territory of the United States from a designated beneficiary CBTPA country enumerated in general note 17(a) to the tariff schedule shall be ehgible to enter free of duty and free of any quanbtative limitations. except as provided in tiffs subchapter. under the terms of the provisions set forth in such subheadings and applicable legal notes. as indicated by the rate of duty of"Free" in the Special rates of duty subeolunm for such provisions, (b) hnports of appareI articles under subheading 9820.11.09 shall be limited. in the period beginning on the date announced in a Federal Re\177ster notice issued by the United States Trade Representative mid continuing through the close of September 30, 2001. to an aggregate quantity not to exceed 250,000,000 square meter equivalents. Such imports of epparel arciales shall be limited. during each of the one-year penode provided for herein. to the following aggregate quantity of square meter equivalents: 12-Month Period Square Meter Equivalents October 1, 2001 through September 30. 2002 ................ 290.000.000 October 1. 2002 through September 30, 2003 ..................... 336.400,000 October 1. 2003 llurough September 30.2004 m\177d subsequent 12-month periods .............................. 390.224,000 (c) hnports of t-shirts under subheading 9820.11.12 shall be linfited. in the period beginning on the date announced m a Federal Re\177ster notice issued by the United States Trade Representative and continuing through the close of September 30, 2001. to an aggregate quantity not to exceed 4.200.000 dozen. Such imports of such t-shirts shall be limited, during each of the one-year periods provided for herein. to the following aggregate quantity: 12-Month Period Aggregate Quantity in Dozens October 1. 2001 through September 30. 2002 ............................ 4,872,000 October 1. 2002 through September 30. 2003 ................................. 5,651,520 October 1,200S through September 30. 2004 ................................. 6.555.763 October 1. 2004 llurough September 30. 2005 and subsequent 12-month periods ............................................. 7.604,685 (d) For purposes of subheading 9820.11.15. imports of brassieres of a producer or an entity controlling production, during the period beginning on October 1. 2001. and during each of the six succeeding l-year periods. shall be eligible for preferential treatment only if the aggregate cost of fabrin components formed in the United States that are used in the production of all such articles of that producer or entity during the preceding 1 -year period is at least 75 percent of the aggregate declared customs value of the fabric contained in all such articles of that producer or entity that are entered during the preceding l-year period. The United States Customs Service shall develop and implement methods and procedures to ensure ongoi\177lg compliance with the provisions of this paragraph. If the Customs Service finds that a producer or an entity controlling produtton has not satisfied such provisions in a 1-year period, then such apparel articles of that producer or entity shall be theligible for preferential treatment under subheading 9820.11.15 during any succeeding l-year period until the aggregate cost of fabric components formed in the United States used in the production of such articles of that producer or entity in the preceding 1 -year period is at least 85 percent of the aggregate declared customs value of the fabric contained in all such articles of that producer or entity that are entered during the preceding 1-year period. 3. (a) Pm article otherwise eligible for preferential treatment under any provision of tiffs sabchapter shall not be ineligible for such treatment because the article contains-- 0) findings or trimmings of foreign origin. \177f the value of such findings and trimmings does not exceed 25 percent of the cost of the components of the assembled article; or (il) certain interlimngs of foral\177 origin. if the value of such toterlinings (and any findings and trimmings of foreign origin) does not exceed 25 percent of the cost of the components of the assembled article; or 165
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