MONITORING OF MARKET CONDITIONS AND AUTHORITY TO MODIFY TARIFF REDUCTIONS.

SEC. 504. MONITORING OF MARKET CONDITIONS AND AUTHORITY TO MODIFY TARIFF REDUCTIONS. (a) Monitoring of Market Conditions.—Beginning on the date of the enactment of this Act, the President shall monitor market conditions in the United States, including domestic demand, domestic supply, and increases in domestic production, of worsted wool fabrics and their components in the market for— (1) men’s or boys’ worsted wool suits, suit-type jackets, and trousers; (2) worsted wool fabric and yarn used in the manufacture of such suits, jackets, and trousers; and (3) wool used in the production of such fabrics and yarn. (b) Authority to Modify Limitation on Quantity of Worsted Wool Fabrics Subject to Tariff Reduction.— (1) In general.—The President shall, on an annual basis, consider requests made by United States manufacturers of apparel products made of worsted wool fabrics described in subsection (a) to modify the limitation on the quantity of imports of worsted wool fabrics under headings 9902.51.11 and 114 STAT. 302 9902.51.12 of the Harmonized Tariff Schedule of the United States, as required by U.S. Notes 15 and 16 of subchapter II of chapter 99 of such Schedule, respectively. (2) Consideration of certain market conditions.—In determining whether to modify the limitation on the quantity of imports of worsted wool fabrics described in paragraph (1), the President shall consider the following United States market conditions; (A) Increases or decreases in sales of the domestically-produced worsted wool fabrics described in subsection (a). (B) Increases or decreases in domestic production of such fabrics. (C) Increases or decreases in domestic production and consumption of the apparel items described in subsection (a). (D) The ability of domestic producers of worsted wool fabrics described in subsection (a) to meet the needs of domestic manufacturers of the apparel items described in subsection (a) in terms of quantity and ability to meet market demands for the apparel items. (E) Evidence that domestic manufacturers of worsted wool fabrics have lost sales due to the temporary duty reductions on certain worsted wool fabrics under headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of the United States (as added by subsections (a) and (b) of section 501). (F) Evidence that domestic manufacturers of apparel items described in subsection (a) have lost sales due to the inability to purchase adequate supplies of worsted wool fabrics on a cost competitive basis. (G) Price per square meter of imports and domestic sales of worsted wool fabrics. (3) Modification of limitation on quantity of fabrics.— (A) In general.—If the President determines that the limitation on the quantity of imports of worsted wool fabrics under headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of the United States should be modified, the President shall proclaim such changes to U.S. Note 15 or 16 to subchapter II of chapter 99 of such Schedule (as added by section 501(d)), as the President determines to be appropriate. (B) Additional requirement.—In any calendar year, any modification of the limitation on the quantity of imports of worsted wool fabrics under headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of the United States shall not exceed— (i) 1,000,000 square meter equivalents for worsted wool fabrics under heading 9902.51.11; and (ii) 1,000,000 square meter equivalents for worsted wool fabrics under heading 9902.51.12. (c) Implementation.—The President shall issue regulations necessary to implement the provisions of this section.