19 U.S.C. § 3722 | Protections against transshipment

(a)

Preferential treatment conditioned on enforcement measures

(1)

In general

section 3721(a) of this titleThe preferential treatment under shall not be provided to textile and apparel articles that are imported from a beneficiary sub-Saharan African country unless that country—

(A)

has adopted an effective visa system, domestic laws, and enforcement procedures applicable to covered articles to prevent unlawful transshipment of the articles and the use of counterfeit documents relating to the importation of the articles into the United States;

(B)

has enacted legislation or promulgated regulations that would permit United States Customs Service verification teams to have the access necessary to investigate thoroughly allegations of transshipment through such country;

(C)

agrees to report, on a timely basis, at the request of the United States Customs Service, on the total exports from and imports into that country of covered articles, consistent with the manner in which the records are kept by that country;

(D)

will cooperate fully with the United States to address and take action necessary to prevent circumvention as provided in Article 5 of the Agreement on Textiles and Clothing;

(E)

agrees to require all producers and exporters of covered articles in that country to maintain complete records of the production and the export of covered articles, including materials used in the production, for at least 2 years after the production or export (as the case may be); and

(F)

agrees to report, on a timely basis, at the request of the United States Customs Service, documentation establishing the country of origin of covered articles as used by that country in implementing an effective visa system.

(2)

Country of origin documentation

For purposes of paragraph (1)(F), documentation regarding the country of origin of the covered articles includes documentation such as production records, information relating to the place of production, the number and identification of the types of machinery used in production, the number of workers employed in production, and certification from both the manufacturer and the exporter.

(b)

Customs procedures and enforcement

(1)

In general

(A)

Regulations

section 3721 of this titleAny importer that claims preferential treatment under shall comply with customs procedures similar in all material respects to the requirements of article 5.4.1 of the USMCA as implemented pursuant to United States law, in accordance with regulations promulgated by the Secretary of the Treasury.

(B)

Determination

(i)

In general

section 3721 of this titleIn order to qualify for the preferential treatment under and for a Certificate of Origin to be valid with respect to any article for which such treatment is claimed, there shall be in effect a determination by the President that each country described in clause (ii)—

(I)

has implemented and follows; or

(II)

is making substantial progress toward implementing and following,

procedures and requirements similar in all material respects to the relevant procedures and requirements under chapter 5 of the USMCA.

(ii)

Country described

A country is described in this clause if it is a beneficiary sub-Saharan African country—

(I)

from which the article is exported; or

(II)

in which materials used in the production of the article originate or in which the article or such materials, undergo production that contributes to a claim that the article is eligible for preferential treatment.

(2)

Certificate of Origin

section 3721 of this titleThe Certificate of Origin that otherwise would be required pursuant to the provisions of paragraph (1) shall not be required in the case of an article imported under if such Certificate of Origin would not be required under article 5.5 of the USMCA (as implemented pursuant to United States law), if the article were imported from Mexico.

(3)

Penalties for exporters

section 3721 of this titleIf the President determines, based on sufficient evidence, that an exporter has engaged in transshipment as defined in paragraph (4), then the President shall deny for a period of 5 years all benefits under to such exporter, any successor of such exporter, and any other entity owned or operated by the principal of the exporter.

(4)

Transshipment described

1 See References in Text note below.

section 3721 of this titleTransshipment within the meaning of this subsection has occurred when preferential treatment for a textile or apparel article under this chapter  has been claimed on the basis of material false information concerning the country of origin, manufacture, processing, or assembly of the article or any of its components. For purposes of this paragraph, false information is material if disclosure of the true information would mean or would have meant that the article is or was ineligible for preferential treatment under .

(5)

Monitoring and reports to Congress

The Customs Service shall monitor and the Commissioner of U.S. Customs and Border Protection shall submit to Congress, not later than March 31 of each year, a report on the effectiveness of the visa systems and the implementation of legislation and regulations described in subsection (a) and on measures taken by countries in sub-Saharan Africa which export textiles or apparel to the United States to prevent circumvention as described in Article 5 of the Agreement on Textiles and Clothing.

(c)

Customs Service enforcement

The Customs Service shall—

(1)

make available technical assistance to the beneficiary sub-Saharan African countries—

(A)

in the development and implementation of visa systems, legislation, and regulations described in subsection (a)(1)(A); and

(B)

to train their officials in anti-transshipment enforcement;

(2)

send production verification teams to at least four beneficiary sub-Saharan African countries each year; and

(3)

to the extent feasible, place beneficiary sub-Saharan African countries on the Electronic Visa (ELVIS) program.

(d)

Authorization of appropriations

There is authorized to be appropriated to carry out subsection (c) the sum of $5,894,913.

Pub. L. 106–200, title I, § 113May 18, 2000114 Stat. 263 Pub. L. 114–125, title VIII, § 802(d)(2)Feb. 24, 2016130 Stat. 210 Pub. L. 116–260, div. O, title VI, § 602(a)(2)Dec. 27, 2020134 Stat. 2152(, , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 106–200May 18, 2000114 Stat. 252 section 3701 of this titleThis chapter, referred to in subsec. (b)(4), was in the original “this Act”, and was translated as reading “this title”, meaning title I of , , , which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of title I to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 116–260, § 602(a)(2)(A)(i)2020—Subsec. (b)(1)(A). , substituted “article 5.4.1 of the USMCA” for “Article 502(1) of the NAFTA”.

Pub. L. 116–260, § 602(a)(2)(A)(ii)Subsec. (b)(1)(B)(i). , substituted “chapter 5 of the USMCA” for “chapter 5 of the NAFTA” in concluding provisions.

Pub. L. 116–260, § 602(a)(2)(B)Subsec. (b)(2). , substituted “article 5.5 of the USMCA” for “Article 503 of the NAFTA”.

Statutory Notes and Related Subsidiaries

Change of Name

section 802(d)(2) of Pub. L. 114–125 section 211 of Title 6“Commissioner of U.S. Customs and Border Protection” substituted for “Commissioner of Customs” in subsec. (b)(5) on authority of , set out as a note under , Domestic Security.

Effective Date of 2020 Amendment

Pub. L. 116–260July 1, 2020section 602(g) of div. O of Pub. L. 116–260 section 2578b of this titleAmendment by effective , see , set out as a note under .

Transfer of Functions

November 25, 2002section 542 of Title 6 Pub. L. 107–296Nov. 25, 2002section 211 of Title 6 Pub. L. 114–125 section 802(b) of Pub. L. 114–125 section 211 of Title 6For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of , as modified, set out as a note under . For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in as of , see , as amended generally by , and , set out as a note under .

Executive Documents

Delegation of Authority

Jan. 17, 2001section 2703 of this titleAuthority of President under subsec. (b)(3) of this section delegated to the Committee for the Implementation of Textile Agreements by section 4 of Ex. Ord. No. 13191, , 66 F.R. 7271, set out as a note under .

Proc. No. 7350. To Implement the African Growth and Opportunity Act and To Designate Eritrea as a Beneficiary Developing Country for Purposes of the Generalized System of Preferences

Oct. 2, 2000section 3722(a) of this title section 3722(b)(1)(B) of this title section 2483 of this titleProc. No. 7350, , 65 F.R. 59321, provided in par. (4) that the United States Trade Representative is authorized to determine whether each designated beneficiary sub-Saharan African country has satisfied the requirements of , relating to the establishment of procedures to protect against unlawful transshipments and relating to the implementation of procedures and requirements similar in all material respects to the relevant procedures and requirements under chapter 5 of the North American Free Trade Agreement (NAFTA), is directed to set forth the determination in a notice to be published in the Federal Register which notice shall modify the Harmonized Tariff Schedule of the United States (HTS) by listing the countries that satisfy the requirements of sections 3722(a) and 3722(b)(1)(B) of this title, and is authorized to exercise the authority provided to the President under to embody modifications and technical or conforming changes in the HTS.