Pakistan-Afghanistan Economic Development Act
This bill allows for duty-free treatment for certain goods from designated Reconstruction Opportunity Zones (ROZs) in Afghanistan and the border regions of Pakistan.
Specifically, the bill allows the President to designate ROZs within Afghanistan or parts of Pakistan, provided certain eligibility criteria are met. The countries must, among other conditions (1) establish (or make continual progress toward establishing) a market-based economy, the rule of law, certain economic policies, a system to combat corruption and bribery, and the protection of core labor standards; and (2) eliminate barriers to trade and investment.
Additionally, the bill allows the President to provide duty-free treatment for certain textile and apparel products, as well as nontextile and nonapparel products, from a ROZ through September 30, 2031.
The bill sets forth requirements to prevent the unlawful transshipment of textile or apparel products. Further, it outlines customs procedures and enforcement.
Products from a ROZ in Afghanistan or Pakistan may continue to receive duty-free treatment only if the President certifies to Congress that the countries have complied with certain requirements, including that the countries must designate a labor official.
The President may withdraw, suspend, or limit the application of duty-free treatment under the bill.
To provide duty-free treatment for certain goods from designated 
 Reconstruction Opportunity Zones in Pakistan and Afghanistan, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pakistan-Afghanistan Economic 
Development Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to stimulate economic activity and development in 
        Afghanistan and the border region of Pakistan, critical fronts 
        in the struggle against violent extremism;
            (2) to reflect the strong support that the United States 
        has pledged to Pakistan and Afghanistan to build regional 
        stability; and
            (3) to offer a vital opportunity--
                    (A) to improve livelihoods of indigenous 
                populations of Reconstruction Opportunity Zones; and
                    (B) to promote good governance in the region.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement on textiles and clothing.--The term 
        ``Agreement on Textiles and Clothing'' means the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
            (2) Category; textile and apparel category number.--The 
        terms ``category'' and ``textile and apparel category number'' 
        mean the number assigned under the U.S. Textile and Apparel 
        Category System of the Office of Textiles and Apparel of the 
        Department of Commerce, as listed in the HTS under the 
        applicable heading or subheading (as in effect on January 22, 
        2020).
            (3) Core labor standards.--The term ``core labor 
        standards'' means--
                    (A) freedom of association;
                    (B) the effective recognition of the right to 
                bargain collectively;
                    (C) the elimination of all forms of compulsory or 
                forced labor;
                    (D) the effective abolition of child labor and a 
                prohibition on the worst forms of child labor; and
                    (E) the elimination of discrimination in respect of 
                employment and occupation.
            (4) Entered.--The term ``entered'' means entered, or 
        withdrawn from warehouse for consumption, in the customs 
        territory of the United States.
            (5) Entity.--The term ``entity'' means--
                    (A) a natural person, corporation, company, 
                business association, partnership, society, trust, or 
                any other nongovernmental entity, organization, or 
                group, whether or not for-profit;
                    (B) any governmental entity or instrumentality of a 
                government; and
                    (C) any successor, subunit, or subsidiary of any 
                entity described in subparagraph (A) or (B).
            (6) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (7) Reconstruction opportunity zone.--
                    (A) In general.--The term ``Reconstruction 
                Opportunity Zone'' means any area described in 
                subparagraph (B) that--
                            (i) has been designated by the competent 
                        authorities in Pakistan or Afghanistan, as the 
                        case may be, as an area in which merchandise 
                        may be introduced without payment of duty or 
                        excise tax; and
                            (ii) has been designated by the President 
                        as a Reconstruction Opportunity Zone pursuant 
                        to section 4(a).
                    (B) Area described.--An area described in this 
                subparagraph is an area that solely encompasses 
                portions of the territory of the following:
                            (i) Afghanistan.
                            (ii) One or more of the following areas of 
                        Pakistan:
                                    (I) The 7 tribal agencies formerly 
                                known as the Federally Administered 
                                Tribal Areas and also known as the 
                                ``newly merged districts''.
                                    (II) Khyber Pakhtunkhwa.
                                    (III) Areas of Baluchistan that are 
                                within 100 miles of the border between 
                                Pakistan and Afghanistan.
            (8) USMCA.--The term ``USMCA'' means the Agreement between 
        the United States of America, the United Mexican States, and 
        Canada, which is--
                    (A) attached as an Annex to the Protocol Replacing 
                the North American Free Trade Agreement with the 
                Agreement between the United States of America, the 
                United Mexican States, and Canada, done at Buenos Aires 
                on November 30, 2018, as amended by the Protocol of 
                Amendment to the Agreement Between the United States of 
                America, the United Mexican States, and Canada, done at 
                Mexico City on December 10, 2019; and
                    (B) approved by Congress under section 101(a)(1) of 
                the United States-Mexico-Canada Agreement 
                Implementation Act.

SEC. 4. DESIGNATION OF RECONSTRUCTION OPPORTUNITY ZONES.

    (a) Authority To Designate.--The President may designate an area 
within Pakistan or Afghanistan described in subparagraph (A)(i) of 
section 3(8) as a Reconstruction Opportunity Zone if--
            (1) after consideration of the factors set forth in 
        subsection (c) of section 502 of the Trade Act of 1974 (19 
        U.S.C. 2462(c)), the President determines that Pakistan or 
        Afghanistan, as the case may be, is eligible for designation as 
        a beneficiary developing country under that section and is not 
        ineligible under subsection (b) of such section; and
            (2) the President determines that--
                    (A) Pakistan or Afghanistan, as the case may be, 
                meets the eligibility criteria set forth in subsection 
                (b); and
                    (B) designation of the area as a Reconstruction 
                Opportunity Zone is appropriate taking into account the 
                factors listed in subsection (c).
    (b) Eligibility Criteria.--Pakistan or Afghanistan meets the 
eligibility criteria set forth in this subsection if Pakistan or 
Afghanistan, as the case may be--
            (1) has established, or is making continual progress toward 
        establishing--
                    (A) a market-based economy that--
                            (i) protects private property rights;
                            (ii) incorporates an open rules-based 
                        trading system; and
                            (iii) minimizes government interference in 
                        the economy through measures such as price 
                        controls, subsidies, and government ownership 
                        of economic assets;
                    (B) the rule of law, political pluralism, and the 
                right to due process, a fair trial, and equal 
                protection under the law;
                    (C) economic policies--
                            (i) to reduce poverty;
                            (ii) to increase the availability of health 
                        care and educational opportunities;
                            (iii) to expand physical infrastructure;
                            (iv) to promote the development of private 
                        enterprise; and
                            (v) to encourage the formation of capital 
                        markets through microcredit or other programs;
                    (D) a system to combat corruption and bribery, such 
                as a system involving ratification and implementation 
                of the United Nations Convention Against Corruption, 
                done at New York October 31, 2003; and
                    (E) the protection of core labor standards;
            (2) is eliminating or has eliminated barriers to trade and 
        investment, including--
                    (A) by providing national treatment and measures to 
                create an environment conducive to domestic and foreign 
                investment;
                    (B) by protecting intellectual property; and
                    (C) by resolving bilateral trade and investment 
                disputes;
            (3) does not engage in activities that undermine the 
        national security or foreign policy interests of the United 
        States;
            (4) does not engage in gross violations of internationally 
        recognized human rights;
            (5) does not provide support for acts of international 
        terrorism; and
            (6) cooperates in international efforts to eliminate human 
        rights violations and terrorist activities.
    (c) Additional Factors.--In determining whether to designate an 
area in Pakistan or Afghanistan as a Reconstruction Opportunity Zone, 
the President shall take into account--
            (1) an expression by the Government of Pakistan or 
        Afghanistan, as the case may be, of its desire to have a 
        particular area designated as a Reconstruction Opportunity Zone 
        under this Act;
            (2) whether that Government has provided the United States 
        with a monitoring and enforcement plan outlining specific 
        actions that Government will take to cooperate with the United 
        States--
                    (A) to facilitate legitimate cross-border commerce;
                    (B) to ensure that articles for which duty-free 
                treatment is sought pursuant to this Act satisfy the 
                applicable rules of origin described in sections 5 and 
                6; and
                    (C) to prevent unlawful transshipment, as described 
                in section 7(b)(4);
            (3) the potential for such designation to create local 
        employment and to promote local and regional economic 
        development;
            (4) the physical security of the proposed Reconstruction 
        Opportunity Zone;
            (5) the economic viability of the proposed Reconstruction 
        Opportunity Zone, including--
                    (A) whether there are commitments to finance 
                economic activity proposed for the Reconstruction 
                Opportunity Zone; and
                    (B) whether there is existing or planned 
                infrastructure for power, water, transportation, and 
                communications in the area;
            (6) whether such designation would be compatible with and 
        contribute to the foreign policy and national security 
        objectives of the United States, taking into account the 
        information provided under subsection (d); and
            (7) the comments of interested persons submitted pursuant 
        to subsection (e).
    (d) Information Relating to Compatibility With and Contribution to 
Foreign Policy and National Security Objectives of the United States.--
            (1) In general.--In determining whether designation of a 
        Reconstruction Opportunity Zone would be compatible with and 
        contribute to the foreign policy and national security 
        objectives of the United States in accordance with subsection 
        (c)(6), the President shall take into account whether the 
        Government of Pakistan or Afghanistan, as the case may be, has 
        provided the United States with a plan outlining specific 
        actions that Government will take to verify the ownership and 
        nature of the activities of entities to be located in the 
        proposed Reconstruction Opportunity Zone.
            (2) Elements.--The specific actions outlined in a plan 
        described in paragraph (1) shall include methods--
                    (A) to annually register each entity by a competent 
                authority in Pakistan or Afghanistan, as the case may 
                be;
                    (B) to collect information from each entity 
                operating in, or proposing to operate in, a 
                Reconstruction Opportunity Zone, including--
                            (i) the name and address of the entity;
                            (ii) the name and location of all 
                        facilities owned or operated by the entity that 
                        are operating in, or proposed to be operating 
                        in, a Reconstruction Opportunity Zone;
                            (iii) the name, nationality, date and place 
                        of birth, and position title of each person who 
                        is an owner, director, or officer of the 
                        entity; and
                            (iv) the nature of the activities of each 
                        entity;
                    (C) to update the information required under 
                subparagraph (B) as changes occur; and
                    (D) to provide such information promptly to the 
                Secretary of State.
    (e) Opportunity for Public Comment.--Before the President 
designates an area as a Reconstruction Opportunity Zone pursuant to 
subsection (a), the President shall provide an opportunity for 
interested persons to submit comments concerning the designation.
    (f) Notification to Congress.--Before the President designates an 
area as a Reconstruction Opportunity Zone pursuant to subsection (a), 
the President shall notify Congress of the President's intention to 
make the designation and the reasons for making the designation.

SEC. 5. DUTY-FREE TREATMENT FOR CERTAIN NONTEXTILE AND NONAPPAREL 
              ARTICLES.

    (a) In General.--The President may proclaim duty-free treatment 
for--
            (1) any article from a Reconstruction Opportunity Zone that 
        the President has designated as an eligible article under 
        section 503(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 
        2463(a)(1)(A));
            (2) any article from a Reconstruction Opportunity Zone 
        located in Afghanistan that the President has designated as an 
        eligible article under section 503(a)(1)(B) of the Trade Act of 
        1974 (19 U.S.C. 2463(a)(1)(B)); or
            (3) any article from a Reconstruction Opportunity Zone that 
        is not a textile or apparel article, regardless of whether the 
        article has been designated as an eligible article under 
        subparagraph (A) or (B) of section 503(a)(1) of the Trade Act 
        of 1974 (19 U.S.C. 2463(a)(1)), if, after receiving the advice 
        of the United States International Trade Commission pursuant to 
        subsection (b), the President determines that the article is 
        not import-sensitive in the context of imports from a 
        Reconstruction Opportunity Zone.
    (b) Advice Concerning Certain Eligible Articles.--Before 
proclaiming duty-free treatment for an article pursuant to subsection 
(a)(3), the President shall publish in the Federal Register and provide 
to the United States International Trade Commission a list of articles 
that may be considered for such treatment. The provisions of sections 
131 through 134 of the Trade Act of 1974 (19 U.S.C. 2151 through 2154) 
shall apply to any designation under subsection (a)(3) in the same 
manner as such sections apply to action taken under section 123 of the 
Trade Act of 1974 (19 U.S.C. 2133) regarding a proposed trade 
agreement.
    (c) General Rules of Origin.--
            (1) In general.--The duty-free treatment proclaimed with 
        respect to an article described in paragraph (1) or (3) of 
        subsection (a) shall apply to any article subject to such 
        proclamation that is the growth, product, or manufacture of 1 
        or more Reconstruction Opportunity Zones if--
                    (A) that article is imported directly from a 
                Reconstruction Opportunity Zone into the customs 
                territory of the United States; and
                    (B)(i) with respect to an article that is an 
                article of a Reconstruction Opportunity Zone in 
                Pakistan, the sum of--
                            (I) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Pakistan or Afghanistan,
                            (II) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in Pakistan or 
                        Afghanistan, and
                            (III) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the article at the time it is entered into the United 
                States; or
                    (ii) with respect to an article that is an article 
                of a Reconstruction Opportunity Zone in Afghanistan, 
                the sum of--
                            (I) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Pakistan or Afghanistan,
                            (II) the cost or value of the materials 
                        produced in 1 or more countries that are 
                        members of the South Asian Association for 
                        Regional Cooperation,
                            (III) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in Pakistan or 
                        Afghanistan, and
                            (IV) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the article at the time it is entered into the United 
                States.
            (2) Determination of 35 percent for articles from 
        reconstruction opportunity zones.--If the cost or value of 
        materials produced in the customs territory of the United 
        States is included with respect to an article described in 
        paragraph (1), for purposes of determining the 35-percent 
        appraised value requirement under that paragraph, not more than 
        15 percent of the appraised value of the article at the time 
        the article is entered into the United States may be 
        attributable to the cost or value of such United States 
        materials.
    (d) Rules of Origin for Certain Articles of Reconstruction 
Opportunity Zones in Afghanistan.--
            (1) In general.--The duty-free treatment proclaimed with 
        respect to an article described in subsection (a)(2) shall 
        apply to any article subject to such proclamation that is the 
        growth, product, or manufacture of 1 or more Reconstruction 
        Opportunity Zones in Afghanistan if--
                    (A) that article is imported directly from a 
                Reconstruction Opportunity Zone in Afghanistan into the 
                customs territory of the United States; and
                    (B) with respect to that article, the sum of--
                            (i) the cost or value of the materials 
                        produced in 1 or more Reconstruction 
                        Opportunity Zones in Afghanistan,
                            (ii) the cost or value of the materials 
                        produced in 1 or more countries that are 
                        members of the South Asian Association for 
                        Regional Cooperation,
                            (iii) the direct costs of processing 
                        operations performed in 1 or more 
                        Reconstruction Opportunity Zones in 
                        Afghanistan, and
                            (iv) the cost or value of materials 
                        produced in the United States, determined in 
                        accordance with paragraph (2),
                is not less than 35 percent of the appraised value of 
                the product at the time it is entered into the United 
                States.
            (2) Determination of 35 percent for articles from 
        reconstruction opportunity zones.--If the cost or value of 
        materials produced in the customs territory of the United 
        States is included with respect to an article described in 
        paragraph (1)(B), for purposes of determining the 35-percent 
        appraised value requirement under that paragraph, not more than 
        15 percent of the appraised value of the article at the time 
        the article is entered into the United States may be 
        attributable to the cost or value of such United States 
        materials.
    (e) Exclusions.--An article shall not be treated as the growth, 
product, or manufacture of 1 or more Reconstruction Opportunity Zones, 
and no material shall be included for purposes of determining the 35-
percent appraised value requirement under subsection (c)(1) or (d)(1), 
by virtue of having merely undergone--
            (1) simple combining or packaging operations; or
            (2) mere dilution with water or with another substance that 
        does not materially alter the characteristics of the article or 
        material.
    (f) Direct Costs of Processing Operations.--
            (1) In general.--For purposes of subsections (c) and (d), 
        the term ``direct costs of processing operations'' includes--
                    (A) all actual labor costs relating to the growth, 
                production, manufacture, or assembly of the article, 
                including--
                            (i) fringe benefits;
                            (ii) on-the-job training; and
                            (iii) costs of engineering, supervisory, 
                        quality control, and similar personnel; and
                    (B) costs relating to dyes, molds, tooling, and 
                depreciation on machinery and equipment that are 
                allocable to the article.
            (2) Excluded costs.--For purposes of subsections (c) and 
        (d), the term ``direct costs of processing operations'' does 
        not include costs that are not directly attributable to the 
        article or are not costs of manufacturing the article, such 
        as--
                    (A) profit; and
                    (B) general expenses of doing business that are 
                either not allocable to the article or are not related 
                to the growth, production, manufacture, or assembly of 
                the article, such as administrative salaries, casualty 
                and liability insurance, advertising, and salesmen's 
                salaries, commissions, or expenses.
    (g) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section. The 
regulations may provide that, in order for an article to be eligible 
for duty-free treatment under this section, the article shall be--
            (1) wholly the growth, product, or manufacture of 1 or more 
        Reconstruction Opportunity Zones; or
            (2) a new or different article of commerce that has been 
        grown, produced, or manufactured in 1 or more Reconstruction 
        Opportunity Zones.

SEC. 6. DUTY-FREE TREATMENT FOR CERTAIN TEXTILE AND APPAREL ARTICLES.

    (a)  Duty-Free Treatment.--The President may proclaim duty-free 
treatment for any textile or apparel article described in subsection 
(b) if the President determines that Pakistan or Afghanistan, as the 
case may be, has satisfied the requirements set forth in section 7.
    (b) Textile or Apparel Articles Described.--A textile or apparel 
article described in this subsection is an article in 1 of the 
following categories: 
            (1) Articles of reconstruction opportunity zones.--An 
        article that--
                    (A) is the product of 1 or more Reconstruction 
                Opportunity Zones; and
                    (B) falls within the scope of 1 of the following 
                textile and apparel category numbers, as set forth in 
                the HTS (as in effect on January 22, 2020):


237.........................  641.................  751
330.........................  642.................  752
331.........................  643.................  758
333.........................  644.................  759
334.........................  650.................  831
 335........................   651................  832
 336........................  653.................  833
341.........................  654.................  834
342.........................  665.................  835
350.........................  669.................  836
351.........................  733.................  838
353.........................  734.................  839
354.........................  735.................  840
360.........................  736.................  842
361.........................  738.................  843
362.........................  739.................  844
363.........................  740.................  845
369.........................  741.................  846
465.........................  742.................  850
469.........................  743.................  851
630.........................  744.................  852
631.........................  745.................  858
633.........................  746.................  859
634.........................  747.................  863
635.........................  748.................  899
636.........................  750
 

            (2) Articles of reconstruction opportunity zones in 
        afghanistan.--An article that--
                    (A) is the product of 1 or more Reconstruction 
                Opportunity Zones in Afghanistan; and
                    (B) falls within the scope of 1 of the following 
                textile and apparel category numbers, as set forth in 
                the HTS (as in effect on January 22, 2020):


201.........................  439.................  459
414.........................  440.................  464
431.........................  442.................  670
433.........................  444.................  800
434.........................  445.................  810
435.........................  446.................  870
436.........................  448.................  871
438
 

            (3) Certain other textile and apparel articles.--An article 
        that--
                    (A) is the product of 1 or more Reconstruction 
                Opportunity Zones;
                    (B) falls within the scope of 1 of the following 
                textile and apparel category numbers as set forth in 
                the HTS (as in effect on January 22, 2020); and
                    (C) is covered by the corresponding description for 
                such category:
                            (i) Category 239.--An article in category 
                        239 (relating to cotton and man-made fiber 
                        babies' garments) except for baby socks and 
                        baby booties described in subheading 
                        6111.20.6050, 6111.30.5050, or 6111.90.5050 of 
                        the HTS.
                            (ii) Category 338.--An article in category 
                        338 (relating to men's and boys' cotton knit 
                        shirts) if the article is a certain knit-to-
                        shape garment that meets the definition 
                        included in Statistical Note 6 to Chapter 61 of 
                        the HTS, and is provided for in subheading 
                        6110.20.1026, 6110.20.2067 or 6110.90.9067 of 
                        the HTS.
                            (iii) Category 339.--An article in category 
                        339 (relating to women's and girls' cotton knit 
                        shirts and blouses) if the article is a knit-
                        to-shape garment that meets the definition 
                        included in Statistical Note 6 to Chapter 61 of 
                        the HTS, and is provided for in subheading 
                        6110.20.1031, 6110.20.2077, or 6110.90.9071 of 
                        the HTS.
                            (iv) Category 359.--An article in category 
                        359 (relating to other cotton apparel) except 
                        swimwear provided for in subheading 
                        6112.39.0010, 6112.49.0010, 6211.11.8010, 
                        6211.11.8020, 6211.12.8010, or 6211.12.8020 of 
                        the HTS.
                            (v) Category 632.--An article in category 
                        632 (relating to man-made fiber hosiery) if the 
                        article is panty hose provided for in 
                        subheading 6115.21.0020 of the HTS.
                            (vi) Category 638.--An article in category 
                        638 (relating to men's and boys' man-made fiber 
                        knit shirts) if the article is a knit-to-shape 
                        garment that meets the definition included in 
                        Statistical Note 6 to Chapter 61 of the HTS, 
                        and is provided for in subheading 6110.30.2051, 
                        6110.30.3051, or 6110.90.9079 of the HTS.
                            (vii) Category 639.--An article in category 
                        639 (relating to women's and girls' man-made 
                        fiber knit shirts and blouses) if the article 
                        is a knit-to-shape garment that meets the 
                        definition included in Statistical Note 6 to 
                        Chapter 61 of the HTS, and is provided for in 
                        subheading 6110.30.2061, 6110.30.3057, or 
                        6110.90.9081 of the HTS.
                            (viii) Category 647.--An article in 
                        category 647 (relating to men's and boys' man-
                        made fiber trousers) if the article is ski/
                        snowboard pants that meets the definition 
                        included in Statistical Note 4 to Chapter 62 of 
                        the HTS, and is provided for in subheading 
                        6203.43.3510, 6210.40.5031, or 6211.20.1525 of 
                        the HTS.
                            (ix) Category 648.--An article in category 
                        648 (relating to women's and girls' man-made 
                        fiber trousers) if the article is ski/snowboard 
                        pants that meets the definition included in 
                        Statistical Note 4 to Chapter 62 of the HTS, 
                        and is provided for in subheading 6204.63.3010, 
                        6210.50.5031, or 6211.20.1555 of the HTS.
                            (x) Category 659.--An article in category 
                        659 (relating to other man-made fiber apparel) 
                        except for swimwear provided for in subheading 
                        6112.31.0010, 6112.31.0020, 6112.41.0010, 
                        6112.41.0020, 6112.41.0030, 6112.41.0040, 
                        6211.11.1010, 6211.11.1020, 6211.12.1010, or 
                        6211.12.1020 of the HTS.
                            (xi) Category 666.--An article in category 
                        666 (relating to other man-made fiber 
                        furnishings) except for window shades and 
                        window blinds provided for in subheading 
                        6303.12.0010 or 6303.92.2030 of the HTS.
            (4) Certain other articles.--An article that--
                    (A) is the product of 1 or more Reconstruction 
                Opportunity Zones; and
                    (B) falls within the scope of 1 of the following 
                statistical reporting numbers of the HTS (as in effect 
                on January 22, 2020):


4202.12.8010................  6210.20.3000........  6304.99.1000
4202.12.8050................  6210.20.7000........  6304.99.2500
4202.22.4010................  6210.30.3000........  6304.99.4000
4202.22.7000................  6210.30.7000........  6304.99.6030
4202.22.8070................  6210.40.3000........  6306.22.9010
4202.92.3010................  6210.40.7000........  6306.29.1100
4202.92.6010................  6210.50.3000........  6306.29.2100
4202.92.9010................  6210.50.7000........  6306.40.4100
4202.92.9015................  6211.20.0810........  6306.40.4900
5601.29.0010................  6211.20.0820........  6306.91.0000
5702.39.2090................  6211.32.0003........  6306.99.0000
5702.49.2000................  6211.33.0003........  6307.10.2030
5702.50.5900................  6211.42.0003........  6307.20.0000
5702.99.2000................  6211.43.0003........  6307.90.7200
5703.90.0000................  6212.10.3000........  6307.90.7500
5705.00.2090................  6212.10.7000........  6307.90.8500
6108.22.1000................  6212.90.0050........  6307.90.8950
6111.90.7000................  6213.90.0500........  6307.90.8985
6113.00.1005................  6214.10.1000........  6310.90.1000
6113.00.1010................  6216.00.0800........  6406.99.1580
6113.00.1012................  6216.00.1300........  6501.00.6000
6115.29.4000................  6216.00.1900........  6502.00.2000
6115.30.1000................  6216.00.2600........  6502.00.4000
6115.99.4000................  6216.00.3100........  6502.00.9060
6116.10.0800................  6216.00.3500........  6504.00.3000
6116.10.1300................  6216.00.4600........  6504.00.6000
6116.10.4400................  6217.10.1010........  6504.00.9045
6116.10.6500................  6217.10.8500........  6504.00.9075
6116.10.9500................  6301.90.0020........  6505.10.0000
6116.92.0800................  6302.29.0010........  6505.90.8015
6116.93.0800................  6302.39.0020........  6505.90.9050
6116.99.3500................  6302.59.3010........  6505.90.9076
6117.10.4000................  6302.99.1000........  9404.90.2000
6117.80.3010................  6303.99.0030........  9404.90.8523
6117.80.8500................  6304.19.3030........  9404.90.9523
6210.10.2000................  6304.91.0060........  9404.90.9570
6210.10.7000
 

    (c) Rules of Origin for Certain Covered Articles.--
            (1) General rules.--Except with respect to an article 
        listed in paragraph (2) of subsection (b), the President may 
        proclaim duty-free treatment for a textile or apparel article 
        described in that subsection only if the article is imported 
        directly into the customs territory of the United States from a 
        Reconstruction Opportunity Zone and--
                    (A) the article is wholly the growth, product, or 
                manufacture of 1 or more Reconstruction Opportunity 
                Zones;
                    (B) the article is a yarn, thread, twine, cordage, 
                rope, cable, or braiding, and--
                            (i) the constituent staple fibers are spun 
                        in, or
                            (ii) the continuous filament fiber is 
                        extruded in,
                1 or more Reconstruction Opportunity Zones;
                    (C) the article is a fabric, including a fabric 
                classifiable under chapter 59 of the HTS, and the 
                constituent fibers, filaments, or yarns are woven, 
                knitted, needled, tufted, felted, entangled, or 
                transformed by any other fabric-making process in 1 or 
                more Reconstruction Opportunity Zones; or
                    (D) the article is any other textile or apparel 
                article that is cut (or knit-to-shape) and sewn or 
                otherwise assembled in 1 or more Reconstruction 
                Opportunity Zones from its component pieces.
            (2) Special rules.--
                    (A) Certain made-up articles, textile articles in 
                the piece, and certain other textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, subparagraph (A), (B), or (C) of paragraph 
                (1), as appropriate, shall determine whether an article 
                that is classifiable under 1 of the following headings 
                or subheadings of the HTS shall be considered to meet 
                the rules of origin of this subsection: 5609, 5807, 
                5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
                6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
                    (B) Certain knit-to-shape textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, a textile or apparel article that is wholly 
                formed on seamless knitting machines or by hand-
                knitting in 1 or more Reconstruction Opportunity Zones 
                shall be considered to meet the rules of origin of this 
                subsection.
                    (C) Certain dyed and printed textiles and textile 
                articles.--Notwithstanding paragraph (1)(D), an article 
                classifiable under subheading 6117.10, 6213.00, 
                6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 
                6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 
                6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, 
                except for an article classifiable under 1 of such 
                subheadings as of cotton or of wool or consisting of 
                fiber blends containing 16 percent or more by weight of 
                cotton, shall be considered to meet the rules of origin 
                of this subsection if the fabric in the article is both 
                dyed and printed in 1 or more Reconstruction 
                Opportunity Zones, and such dyeing and printing is 
                accompanied by 2 or more of the following finishing 
                operations: bleaching, shrinking, fulling, napping, 
                decating, permanent stiffening, weighting, permanent 
                embossing, or moireing.
                    (D) Fabrics of silk, cotton, man-made fiber, or 
                vegetable fiber.--Notwithstanding paragraph (1)(C), a 
                fabric classifiable under the HTS as of silk, cotton, 
                man-made fiber, or vegetable fiber shall be considered 
                to meet the rules of origin of this subsection if the 
                fabric is both dyed and printed in 1 or more 
                Reconstruction Opportunity Zones, and such dyeing and 
                printing is accompanied by 2 or more of the following 
                finishing operations: bleaching, shrinking, fulling, 
                napping, decating, permanent stiffening, weighting, 
                permanent embossing, or moireing.
    (d) Rules of Origin for Covered Articles That Are Products of 1 or 
More Reconstruction Opportunity Zones in Afghanistan.--
            (1) General rules.--Duty-free treatment may be proclaimed 
        for an article listed in subsection (b)(2) only if the article 
        is imported directly into the customs territory of the United 
        States from a Reconstruction Opportunity Zone in Afghanistan 
        and--
                    (A) the article is wholly the growth, product, or 
                manufacture of 1 or more Reconstruction Opportunity 
                Zones in Afghanistan,
                    (B) the article is a yarn, thread, twine, cordage, 
                rope, cable, or braiding, and--
                            (i) the constituent staple fibers are spun 
                        in, or
                            (ii) the continuous filament fiber is 
                        extruded in,
                1 or more Reconstruction Opportunity Zones in 
                Afghanistan;
                    (C) the article is a fabric, including a fabric 
                classifiable under chapter 59 of the HTS, and the 
                constituent fibers, filaments, or yarns are woven, 
                knitted, needled, tufted, felted, entangled, or 
                transformed by any other fabric-making process in 1 or 
                more Reconstruction Opportunity Zones in Afghanistan; 
                or
                    (D) the article is any other textile or apparel 
                article that is cut (or knit-to-shape) and sewn or 
                otherwise assembled in 1 or more Reconstruction 
                Opportunity Zones in Afghanistan from its component 
                pieces.
            (2) Special rules.--
                    (A) Certain made-up articles, textile articles in 
                the piece, and certain other textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, subparagraph (A), (B), or (C) of paragraph 
                (1), as appropriate, shall determine whether an article 
                that is classifiable under 1 of the following headings 
                or subheadings of the HTS shall be considered to meet 
                the rules of origin of this subsection: 5609, 5807, 
                5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 
                6304, 6305, 6306, 6307.10, 6307.90, 6308, and 9404.90.
                    (B) Certain knit-to-shape textiles and textile 
                articles.--Notwithstanding paragraph (1)(D) and except 
                as provided in subparagraphs (C) and (D) of this 
                paragraph, a textile or apparel article that is wholly 
                formed on seamless knitting machines or by hand-
                knitting in 1 or more Reconstruction Opportunity Zones 
                in Afghanistan shall be considered to meet the rules of 
                origin of this subsection.
                    (C) Certain dyed and printed textiles and textile 
                articles.--Notwithstanding paragraph (1)(D), an article 
                classifiable under subheading 6117.10, 6213.00, 
                6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 
                6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 
                6304.93, 6304.99, 9404.90.85, or 9404.90.95 of the HTS, 
                except for an article classifiable under 1 of such 
                subheadings as of cotton or of wool or consisting of 
                fiber blends containing 16 percent or more by weight of 
                cotton, shall be considered to meet the rules of origin 
                of this subsection if the fabric in the article is both 
                dyed and printed in 1 or more Reconstruction 
                Opportunity Zones in Afghanistan, and such dyeing and 
                printing is accompanied by 2 or more of the following 
                finishing operations: bleaching, shrinking, fulling, 
                napping, decating, permanent stiffening, weighting, 
                permanent embossing, or moireing.
                    (D) Fabrics of silk, cotton, man-made fiber or 
                vegetable fiber.--Notwithstanding paragraph (1)(C), a 
                fabric classifiable under the HTS as of silk, cotton, 
                man-made fiber, or vegetable fiber shall be considered 
                to meet the rules of origin of this subsection if the 
                fabric is both dyed and printed in 1 or more 
                Reconstruction Opportunity Zones in Afghanistan, and 
                such dyeing and printing is accompanied by 2 or more of 
                the following finishing operations: bleaching, 
                shrinking, fulling, napping, decating, permanent 
                stiffening, weighting, permanent embossing, or 
                moireing.
    (e) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section.

SEC. 7. PROTECTIONS AGAINST UNLAWFUL TRANSSHIPMENT.

    (a) Duty-Free Treatment Conditioned on Enforcement Measures.--
            (1) In general.--The President may not proclaim duty-free 
        treatment described in section 6 for textile or apparel 
        articles described in subsection (b) of that section that are 
        imported from a Reconstruction Opportunity Zone unless the 
        President determines that the Government of Pakistan or 
        Afghanistan, as the case may be--
                    (A) has adopted an effective visa or electronic 
                certification system, domestic laws, and enforcement 
                procedures applicable to such articles to prevent 
                unlawful transshipment of the articles and the use of 
                false documents relating to the importation of such 
                articles into the United States;
                    (B) has enacted legislation or promulgated 
                regulations that would permit U.S. Customs and Border 
                Protection verification teams to have the access 
                necessary to investigate thoroughly allegations of 
                unlawful transshipment through Pakistan or Afghanistan, 
                as the case may be;
                    (C) agrees to provide U.S. Customs and Border 
                Protection with a monthly report on shipments of such 
                articles from each facility engaged in the production 
                of such articles in a Reconstruction Opportunity Zone;
                    (D) will cooperate fully with the United States to 
                address and take action necessary to prevent 
                circumvention, as described in article 5 of the 
                Agreement on Textiles and Clothing;
                    (E) agrees to require each entity engaged in the 
                production or manufacture of such articles in a 
                Reconstruction Opportunity Zone--
                            (i) to register with the competent 
                        government authority;
                            (ii) to provide that authority with--
                                    (I) the name and address of the 
                                entity, including the location of all 
                                textile or apparel facilities owned or 
                                operated by that entity in Pakistan or 
                                Afghanistan, as the case may be;
                                    (II) the telephone number, 
                                facsimile number, and electronic mail 
                                address of the entity;
                                    (III) the names and nationalities 
                                of the owners, directors, and corporate 
                                officers of the entity, and their 
                                positions within the entity;
                                    (IV) the number of employees of the 
                                entity and their occupations;
                                    (V) a general description of the 
                                textile and apparel articles described 
                                in section 6(b) the entity produces and 
                                the production capacity of the entity;
                                    (VI) the number and type of 
                                machines the entity uses to produce 
                                such articles at each facility;
                                    (VII) the approximate number of 
                                hours the machines operate per week;
                                    (VIII) the identity of any supplier 
                                to the entity of such articles, or 
                                fabrics, yarns, or fibers used in the 
                                production of such articles; and
                                    (IX) the name of, and contact 
                                information for, each of the customers 
                                of the entity in the United States; and
                            (iii) to update the information under 
                        clause (ii) as changes occur;
                    (F) agrees to provide to U.S. Customs and Border 
                Protection on a timely basis all of the information 
                received by the competent government authority under 
                subparagraph (E) and to provide U.S. Customs and Border 
                Protection with an annual update of that information;
                    (G) agrees to require that all producers and 
                exporters of textile and apparel articles described in 
                section 6(b) in a Reconstruction Opportunity Zone 
                maintain complete records of the production and the 
                export of such articles, including materials used in 
                the production, for at least 5 years after the 
                production or export (as the case may be); and
                    (H) agrees to provide, on a timely basis, at the 
                request of U.S. Customs and Border Protection, 
                documentation establishing the eligibility of such 
                articles for duty-free treatment under section 6.
            (2) Documentation establishing eligibility of articles for 
        duty-free treatment.--For purposes of paragraph (1)(H), 
        documentation establishing the eligibility of a textile or 
        apparel article described in section 6(b) for duty-free 
        treatment under section 6 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 the manufacturer and the 
        exporter.
    (b) Customs Procedures and Enforcement.--
            (1) In general.--
                    (A) Regulations.--The Secretary of the Treasury, 
                after consultation with the United States Trade 
                Representative, shall prescribe regulations setting 
                forth customs procedures similar in all material 
                respects to the requirements of article 5.4 of the 
                USMCA as implemented pursuant to United States law, 
                which shall apply to any importer that claims duty-free 
                treatment for an article under section 6.
                    (B) Determination.--In order for articles produced 
                in a Reconstruction Opportunity Zone to qualify for 
                duty-free treatment under section 6, there shall be in 
                effect a determination by the President that Pakistan 
                or Afghanistan, as the case may be--
                            (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.
            (2) Certificate of origin.--A 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 section 6 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.--If the President determines, based on 
        sufficient evidence, that an entity has engaged in unlawful 
        transshipment described in paragraph (4), the President shall 
        deny for a period of 5 years beginning on the date of the 
        determination duty-free treatment under section 6 for articles 
        of the entity, any successor of the entity, and any other 
        entity owned, operated, or controlled by the principals of the 
        entity.
            (4) Unlawful transshipment described.--For purposes of this 
        section, unlawful transshipment occurs when duty-free treatment 
        for a textile or apparel article described in section 6(b) 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 the preceding sentence, false information is material if 
        disclosure of the true information would mean or would have 
        meant that the article is or was ineligible for duty-free 
        treatment under section 6.
            (5) Monitoring and reports to congress.--The Commissioner 
        of U.S. Customs and Border Protection shall monitor and, not 
        later than March 31 of each year, submit to Congress a report 
        on--
                    (A) the effectiveness of the visa or electronic 
                certification systems and the implementation of 
                legislation and regulations described in subsection 
                (a); and
                    (B) measures taken by the governments of Pakistan 
                and Afghanistan to prevent circumvention as described 
                in article 5 of the Agreement on Textile and Clothing.
    (c) Additional Customs Enforcement.--
            (1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall--
                    (A) make available technical assistance to Pakistan 
                and Afghanistan--
                            (i) in the development and implementation 
                        of visa or electronic certification systems, 
                        legislation, and regulations described in 
                        subparagraphs (A) and (B) of subsection (a)(1); 
                        and
                            (ii) to train officials of Pakistan and 
                        Afghanistan in anti-transshipment enforcement;
                    (B) send production verification teams to Pakistan 
                and Afghanistan as necessary; and
                    (C) to the extent feasible, include Pakistan and 
                Afghanistan in the Electronic Certification System of 
                U.S. Customs and Border Protection or other relevant 
                electronic certification program.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to U.S. Customs and Border Protection to 
        carry out this subsection $10,000,000 for each of fiscal years 
        2021 through 2031.

SEC. 8. TECHNICAL ASSISTANCE, CAPACITY BUILDING, COMPLIANCE ASSESSMENT, 
              AND REMEDIATION PROGRAM.

    (a) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            (2) Textile or apparel exporting enterprise.--The term 
        ``textile or apparel exporting enterprise'' means a producer of 
        textile or apparel articles that is located in a Reconstruction 
        Opportunity Zone and is seeking or receiving any duty-free 
        treatment for articles under section 6.
    (b) Eligibility.--
            (1) Presidential certification of compliance with 
        requirements.--Upon the expiration of the 24-month period 
        beginning on the date on which the President notifies Congress 
        of the President's intention to designate an area within 
        Pakistan or Afghanistan as a Reconstruction Opportunity Zone 
        under section 4, duty-free treatment shall continue to apply 
        under this Act only if the President determines and certifies 
        to Congress that the Government of Pakistan or Afghanistan, as 
        the case may be--
                    (A) has implemented the requirements set forth in 
                subsections (c) and (d); and
                    (B) has agreed to require textile or apparel 
                exporting enterprises to participate in the program 
                described in subsection (d) and has developed a system 
                to ensure participation in such program by such 
                enterprises, including by developing and maintaining 
                the registry described in subsection (c)(2)(A).
            (2) Extension.--The President may extend the period for 
        compliance by Pakistan or Afghanistan under paragraph (1) if 
        the President--
                    (A) determines that the Government of Pakistan or 
                Afghanistan, as the case may be, has made a good faith 
                effort toward such compliance and has agreed to take 
                additional actions to come into full compliance that 
                are satisfactory to the President; and
                    (B) not later than 180 days after the last day of 
                the 24-month period specified in paragraph (1), and 
                every 180 days thereafter, submits to the appropriate 
                congressional committees a report identifying--
                            (i) the actions that the Government of 
                        Pakistan or Afghanistan, as the case may be, 
                        has agreed to take to come into full compliance 
                        under paragraph (1); and
                            (ii) the progress made over the preceding 
                        180-day period in implementing such actions.
            (3) Continuing compliance.--
                    (A) Termination of eligibility for duty-free 
                treatment.--If, after making a certification under 
                paragraph (1), the President determines that Pakistan 
                or Afghanistan is no longer meeting the requirements 
                set forth in paragraph (1), the President shall 
                terminate the eligibility of Pakistan or Afghanistan, 
                as the case may be, provided under section 4(b), unless 
                the President determines, after consulting with the 
                appropriate congressional committees, that meeting such 
                requirements is not practicable because of 
                extraordinary circumstances existing in Pakistan or 
                Afghanistan, as the case may be, when the determination 
                is made.
                    (B) Subsequent compliance.--If, after terminating 
                the eligibility of Pakistan or Afghanistan under 
                subparagraph (A), the President determines that 
                Pakistan or Afghanistan, as the case may be, is meeting 
                the requirements set forth in paragraph (1), the 
                President shall reinstate the eligibility of Pakistan 
                or Afghanistan, as the case may be, under section 4(b).
    (c) Labor Official.--
            (1) In general.--The governments of Pakistan and 
        Afghanistan shall designate a labor official within that 
        Government who--
                    (A) reports directly to the President of Pakistan 
                or Afghanistan, as the case may be;
                    (B) is chosen by the President of Pakistan or 
                Afghanistan, as the case may be, in consultation with 
                labor unions and industry associations; and
                    (C) is vested with the authority to perform the 
                functions described in paragraph (2).
            (2) Functions.--The functions of the labor official 
        designated under paragraph (1) shall include--
                    (A) developing and maintaining a registry of 
                textile or apparel exporting enterprises, and 
                developing, in consultation and coordination with any 
                other appropriate officials of the Government of 
                Pakistan or Afghanistan, as the case may be, a system 
                to ensure participation by such enterprises in the 
                program described in subsection (d);
                    (B) overseeing the implementation of the program 
                described in subsection (d);
                    (C) receiving and investigating comments from any 
                interested party regarding the conditions described in 
                subsection (d)(2) in facilities of textile or apparel 
                exporting enterprises listed in the registry described 
                in subparagraph (A) and, as appropriate, referring such 
                comments or the result of such investigations to the 
                appropriate authorities of Pakistan or Afghanistan, as 
                the case may be, or to the entity operating the program 
                described in subsection (d);
                    (D) assisting, in consultation and coordination 
                with any other appropriate authorities of Pakistan or 
                Afghanistan, as the case may be, textile or apparel 
                exporting enterprises listed in the registry described 
                in subparagraph (A) in meeting the conditions described 
                in subsection (d)(2); and
                    (E) coordinating, with the assistance of the entity 
                operating the program described in subsection (d), a 
                committee comprised of appropriate representatives of 
                government agencies, employers, and workers, as well as 
                other relevant interested parties, for the purposes 
                of--
                            (i) evaluating progress in implementing the 
                        program described in subsection (d); and
                            (ii) consulting on improving core labor 
                        standards and working conditions in the textile 
                        and apparel sector in Pakistan or Afghanistan, 
                        as the case may be, and on other matters of 
                        common concern relating to such core labor 
                        standards and working conditions.
    (d) Technical Assistance, Capacity Building, Compliance Assessment, 
and Remediation Program.--
            (1) In general.--The governments of Pakistan and 
        Afghanistan, in cooperation with the International Labour 
        Organization, shall each establish a program meeting the 
        requirements under paragraph (3)--
                    (A) to assess compliance by textile or apparel 
                exporting enterprises listed in the registry described 
                in subsection (c)(2)(A) with the conditions described 
                in paragraph (2) and to assist such enterprises in 
                meeting such conditions; and
                    (B) to provide assistance to improve the capacity 
                of that government--
                            (i) to inspect facilities of textile or 
                        apparel exporting enterprises listed in the 
                        registry described in subsection (c)(2)(A); and
                            (ii) to enforce national labor laws and 
                        resolve labor disputes, including through 
                        measures described in paragraph (5).
            (2) Conditions described.--The conditions described in this 
        paragraph are--
                    (A) compliance with core labor standards; and
                    (B) compliance with the labor laws of Pakistan or 
                Afghanistan, as the case may be, that relate directly 
                to core labor standards and to ensuring acceptable 
                conditions of work with respect to minimum wages, hours 
                of work, and occupational health and safety.
            (3) Requirements.--The program established under paragraph 
        (1) shall--
                    (A) be operated by the International Labour 
                Organization (or any subdivision, instrumentality, or 
                designee thereof) that publishes annual reports in 
                accordance with paragraph (4);
                    (B) be developed through a participatory process 
                that includes the labor official designated pursuant to 
                subsection (c) and appropriate representatives of 
                government agencies, employers, and workers;
                    (C) assess compliance by each textile or apparel 
                exporting enterprise listed in the registry described 
                in subsection (c)(2)(A) with the conditions described 
                in paragraph (2) and identify any deficiencies by such 
                enterprise with respect to meeting such conditions, 
                including--
                            (i) by conducting site visits to facilities 
                        of the enterprise;
                            (ii) by conducting confidential interviews 
                        with workers and management of the facilities 
                        of the enterprise; and
                            (iii) by providing to management and 
                        workers, and as applicable, worker 
                        organizations in the enterprise, on a 
                        confidential basis--
                                    (I) the results of the assessment 
                                carried out under this subparagraph; 
                                and
                                    (II) specific suggestions for 
                                remediating any such deficiencies;
                    (D) assist the textile or apparel exporting 
                enterprise in remediating any deficiencies identified 
                under subparagraph (C);
                    (E) conduct prompt follow-up site visits to the 
                facilities of the textile or apparel exporting 
                enterprise to assess progress on remediation of any 
                deficiencies identified under subparagraph (C); and
                    (F) provide training to workers and management of 
                the textile or apparel exporting enterprise, and as 
                appropriate, to other persons or entities, to promote 
                compliance with the conditions described in paragraph 
                (2).
            (4) Annual report.--
                    (A) In general.--Not later than 1 year after the 
                date on which Pakistan or Afghanistan, as the case may 
                be, has implemented the program under this subsection, 
                and annually thereafter, the entity operating the 
                program shall publish a report, covering the preceding 
                1-year period, that includes the following:
                            (i) The name of each textile or apparel 
                        exporting enterprise listed in the registry 
                        described in subsection (c)(2)(A) that has been 
                        identified as having met the conditions 
                        described in paragraph (2).
                            (ii) The name of each textile or apparel 
                        exporting enterprise listed in the registry 
                        described in subsection (c)(2)(A) that has been 
                        identified as having deficiencies with respect 
                        to the conditions set forth in paragraph (2), 
                        and has failed to remedy such deficiencies.
                            (iii) For each textile or apparel exporting 
                        enterprise listed under clause (ii)--
                                    (I) a description of the 
                                deficiencies found to exist and the 
                                specific suggestions for remediating 
                                such deficiencies made by the entity 
                                operating the program;
                                    (II) a description of the efforts 
                                by the enterprise to remediate the 
                                deficiencies, including a description 
                                of assistance provided by any entity to 
                                assist in such remediation; and
                                    (III) with respect to deficiencies 
                                that have not been remediated, the 
                                amount of time that has elapsed since 
                                the deficiencies were first identified 
                                in a report under this subparagraph.
                            (iv) For each textile or apparel exporting 
                        enterprise identified as having deficiencies 
                        with respect to the conditions described in 
                        paragraph (2) in a previous report under this 
                        subparagraph--
                                    (I) a description of the progress 
                                made in remediating such deficiencies 
                                since the submission of the previous 
                                report; and
                                    (II) an assessment of whether any 
                                aspect of such deficiencies persists.
                    (B) Availability.--Each report required by 
                subparagraph (A) shall be made available to the public 
                in a readily accessible manner.
            (5) Capacity building.--The assistance to the governments 
        of Pakistan and Afghanistan referred to in paragraph (1)(B) 
        shall include programs--
                    (A) to review the labor laws and regulations of 
                Pakistan and Afghanistan and to develop and implement 
                strategies for improving labor laws and regulations;
                    (B) to develop additional strategies for 
                facilitating protection of core labor standards and 
                providing acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health, including through legal, regulatory, and 
                institutional reform;
                    (C) to increase awareness of core labor standards 
                and national labor laws;
                    (D) to promote consultation and cooperation between 
                government representatives, employers, worker 
                representatives, and United States importers on matters 
                relating to core labor standards and national labor 
                laws;
                    (E) to assist the labor official designated 
                pursuant to subsection (c) in establishing and 
                coordinating operation of the committee described in 
                subsection (c)(2)(E);
                    (F) to assist worker representatives in more fully 
                and effectively advocating on behalf of members; and
                    (G) to provide on-the-job training and technical 
                assistance to labor inspectors, judicial officers, and 
                other relevant personnel to build capacity to enforce 
                national labor laws and resolve labor disputes.
    (e) Compliance With Eligibility Criteria.--
            (1) Country compliance with core labor standards 
        eligibility criteria.--In making a determination of whether 
        Pakistan or Afghanistan, as the case may be, is meeting the 
        requirement set forth in section 4(b)(1)(E) relating to core 
        labor standards, the President shall consider the reports 
        required by subsection (d)(4).
            (2) Enterprise eligibility.--
                    (A) Identification of producers.--Not later than 2 
                years after the date on which the President makes the 
                certification under subsection (b)(1), and every 2 
                years thereafter, the President shall identify whether 
                a textile or apparel exporting enterprise listed in the 
                registry described in subsection (c)(2)(A) has failed 
                to comply with core labor standards and the labor laws 
                of Pakistan or Afghanistan, as the case may be, that 
                directly relate to and are consistent with core labor 
                standards.
                    (B) Assistance to enterprises; withdrawal, 
                suspension, or limitation of duty-free treatment.--For 
                each textile or apparel exporting enterprise that the 
                President identifies under subparagraph (A), the 
                President shall seek to assist such enterprise in 
                coming into compliance with core labor standards and 
                the labor laws of Pakistan or Afghanistan, as the case 
                may be, that directly relate to and are consistent with 
                core labor standards. If such efforts fail, the 
                President shall withdraw, suspend, or limit the 
                application of duty-free treatment under section 6 to 
                articles of such enterprise.
                    (C) Reinstating duty-free treatment.--If, after 
                withdrawing, suspending, or limiting the application of 
                duty-free treatment under subparagraph (B) to articles 
                of a textile or apparel exporting enterprise, the 
                President determines that such enterprise is complying 
                with core labor standards and the labor laws of 
                Pakistan or Afghanistan, as the case may be, that 
                directly relate to and are consistent with core labor 
                standards, the President shall reinstate the 
                application of duty-free treatment under section 6 to 
                the articles of the enterprise.
                    (D) Consideration of reports.--In making the 
                identification under subparagraph (A) and the 
                determination under subparagraph (C), the President 
                shall consider the reports required by subsection 
                (d)(4).
    (f) Reports by the President.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report on the implementation of this section 
        during the preceding 1-year period.
            (2) Matters to be included.--Each report required by 
        paragraph (1) shall include the following:
                    (A) An explanation of the efforts of the 
                governments of Pakistan and Afghanistan, the President, 
                and the International Labour Organization to carry out 
                this section.
                    (B) A summary of each report required by (d)(4) 
                during the preceding 1-year period and a summary of the 
                findings contained in such report.
                    (C) Identifications made under subsection (e)(2)(A) 
                and determinations made under subsection (e)(2)(C).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for the period 
beginning on October 1, 2021, and ending on September 30, 2031.

SEC. 9. REVIEW OF ELIGIBILITY OF PAKISTAN AND AFGHANISTAN.

    (a) In General.--Any interested party may file a request to have 
the President review the eligibility of Pakistan or Afghanistan under 
section 4(b) for the designation of Reconstruction Opportunity Zones 
under this Act.
    (b) Procedures.--To carry out subsection (a), the President shall 
use the same procedures applicable to reviewing the eligibility of 
countries for designation as beneficiary developing countries under 
section 502 of the Trade Act of 1974 (19 U.S.C. 2462).

SEC. 10. LIMITATIONS ON PROVIDING DUTY-FREE TREATMENT.

    (a) In General.--
            (1) Proclamation.--Except as provided in paragraph (2), and 
        subject to subsection (b) and the conditions described in 
        sections 4 through 8, the President shall exercise the 
        President's authority under this Act and proclaim any duty-free 
        treatment pursuant to that authority.
            (2) Waiver.--The President may waive the application of 
        duty-free treatment under this Act with respect to articles 
        imported from Reconstruction Opportunity Zones in Pakistan or 
        Afghanistan or textile or apparel exporting enterprises 
        receiving duty-free treatment under section 5 or 6 if the 
        President determines that providing such treatment is 
        inconsistent with the national interests of the United States. 
        In making such a determination, the President shall consider--
                    (A) obligations of the United States under 
                international agreements;
                    (B) the national economic interests of the United 
                States; and
                    (C) the foreign policy interests of the United 
                States, including the economic development of--
                            (i) the border region of Pakistan; and
                            (ii) Afghanistan.
    (b) Withdrawal, Suspension, or Limitation of Duty-Free Treatment.--
            (1) In general.--The President may withdraw, suspend, or 
        limit the application of duty-free treatment proclaimed under 
        this Act.
            (2) Reconstruction opportunity zones.--In taking any action 
        to withdraw, suspend, or limit duty-free treatment with respect 
        to articles imported from Reconstruction Opportunity Zones, the 
        President shall consider the factors set forth in--
                    (A) subsections (b) and (c) of section 4 of this 
                Act; and
                    (B) subsections (b) and (c) of section 502 of the 
                Trade Act of 1974 (19 U.S.C. 2462 (b) and (c)).
            (3) Enterprises.--In taking any action to withdraw, 
        suspend, or limit duty-free treatment with respect to textile 
        or apparel exporting enterprises receiving duty-free treatment 
        under section 5 or 6, the President shall consider--
                    (A) the factors set forth in--
                            (i) subsections (b) and (c) of section 4 of 
                        this Act; and
                            (ii) subsections (b) and (c) of section 502 
                        of the Trade Act of 1974 (19 U.S.C. 2462 (b) 
                        and (c));
                    (B) the information described in section 4(d) 
                relating to verification of the ownership and nature of 
                the activities of such enterprises; and
                    (C) any other relevant information the President 
                determines to be appropriate.
    (c) Notice to Congress.--The President shall notify Congress--
            (1) of any action the President takes to withdraw, suspend, 
        or limit the application of duty-free treatment with respect to 
        Reconstruction Opportunity Zones in Pakistan or Afghanistan or 
        textile or apparel exporting enterprises receiving duty-free 
        treatment under section 5 or 6; and
            (2) if Pakistan or Afghanistan fails to adequately satisfy 
        the factors set forth in--
                    (A) subsections (b) and (c) of section 4 of this 
                Act; or
                    (B) subsections (b) and (c) of section 502 of the 
                Trade Act of 1974 (19 U.S.C. 2462).

SEC. 11. TERMINATION OF DUTY-FREE TREATMENT.

    Duty-free treatment provided under this Act shall remain in effect 
through September 30, 2031.
                                 <all>
Pakistan-Afghanistan Economic Development Act
A bill to provide duty-free treatment for certain goods from designated Reconstruction Opportunity Zones in Pakistan and Afghanistan, and for other purposes.
Pakistan-Afghanistan Economic Development Act
Sen. Van Hollen, Chris