120 STAT. 3184
PUBLIC LAW 109–432—DEC. 20, 2006 ‘‘(iv) INCLUSION
IN CALCULATION OF OTHER ARTICLES RECEIVING PREFERENTIAL TREATMENT.—(I) The
entry of a woven apparel article receiving preferential treatment under paragraph (4) is not included in an annual aggregation under clause (i) or (ii). ‘‘(II) Entries of articles receiving preferential treatment under paragraph (5) are not included in an annual aggregation under clause (i) or (ii) unless the producer or entity controlling production elects, at the time the annual aggregation calculation is made, to include such entries in such aggregation. ‘‘(III) Entries of apparel articles that receive preferential treatment under any provision of law other than this subsection or are subject to the ‘General’ column 1 rate of duty under the HTS are not included in an annual aggregation under clause (i) or (ii) unless the producer or entity controlling production elects, at the time the annual aggregation calculation is made, to include such entries in such aggregation. ‘‘(E) DEFINITIONS.—In this paragraph: ‘‘(i) APPLICABLE PERCENTAGE.—The term ‘applicable percentage’ means— ‘‘(I) 50 percent or more during the initial applicable 1-year period, the second applicable 1year period, and the third applicable 1-year period; ‘‘(II) 55 percent or more during the fourth applicable 1-year period; and ‘‘(III) 60 percent or more during the fifth applicable 1-year period. ‘‘(ii) FOREIGN MATERIAL.—The term ‘foreign material’ means a material produced in a country other than Haiti or any country described in subparagraph (C). ‘‘(F) DEVELOPMENT OF PROCEDURE TO ENSURE COMPLIANCE.— ‘‘(i) IN GENERAL.—The Bureau of Customs and Border Protection of the Department of Homeland Security shall develop and implement methods and procedures to ensure ongoing compliance with the requirements set forth in subparagraphs (A) and (D). ‘‘(ii) NONCOMPLIANCE.—If the Bureau of Customs and Border Protection finds that a producer or an entity controlling production has not satisfied such requirements in any applicable 1-year period, either for individual entries entered pursuant to subparagraph (A) or for entries entered in aggregate pursuant to subparagraph (D), then apparel articles described in subparagraph (A) of that producer or entity shall be ineligible for preferential treatment under paragraph (1) during any succeeding applicable 1-year period until— ‘‘(I) the cost or value of materials under clause (i) of subparagraph (A), plus ‘‘(II) the direct costs of processing operations under clause (ii) of subparagraph (A),
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