TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.

SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT. (a) In General.—Section 112(b) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)) is amended as follows: (1) Paragraph (1) is amended by amending the matter preceding subparagraph (A) to read as follows: “(1) Apparel articles assembled in one or more beneficiary sub-saharan african countries.—Apparel articles sewn or otherwise assembled in one or more beneficiary subSaharan African countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States from yarns wholly formed in the United States, (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed and cut in the United States) that are—”. (2) Paragraph (2) is amended to read as follows: “(2) Other apparel articles assembled in one or more beneficiary sub-saharan african countries.—Apparel articles sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more beneficiary sub-Saharan African countries from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed in the United States).”. (3) Paragraph (3) is amended— (A) by amending the matter preceding subparagraph (A) to read as follows: “(3) Apparel articles from regional fabric or yarns.—Apparel articles wholly assembled in one or more beneficiary sub-Saharan African countries from fabric wholly formed in 116 STAT. 1039 one or more beneficiary sub-Saharan African countries from yarns originating either in the United States or one or more beneficiary sub-Saharan African countries (including fabrics not formed from yarns, if such fabrics are classified under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed in one or more beneficiary sub-Saharan African countries), or from components knit-to-shape in one or more beneficiary sub-Saharan African countries from yarns originating either in the United States or one or more beneficiary sub-Saharan African countries, or apparel articles wholly formed on seamless knitting machines in a beneficiary sub-Saharan African country from yarns originating either in the United States or one or more beneficiary sub-Saharan African countries, subject to the following:”; and (B) by amending subparagraph (B) to read as follows: “(B) Special rule for lesser developed countries— “(i) In general.—Subject to subparagraph (A), preferential treatment under this paragraph shall be extended through September 30, 2004, for apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed beneficiary sub-Saharan African countries regardless of the country of origin of the fabric or the yarn used to make such articles. “(ii) Lesser developed beneficiary sub-saharan african country.—For purposes of clause (i), the term ‘lesser developed beneficiary sub-Saharan African country’ means— “(I) a beneficiary sub-Saharan African country that had a per capita gross national product of less than $1,500 in 1998, as measured by the International Bank for Reconstruction and Development; “(II) Botswana; and “(III) Namibia.”. (4) Paragraph (4)(B) is amended by striking “18.5” and inserting “21.5”. (5) Section 112(b) of such Act is further amended by adding at the end the following new paragraph: “(7) Apparel articles assembled in one or more beneficiary sub-saharan african countries from united states and beneficiary sub-saharan african country components.—Apparel articles sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries with thread formed in the United States from components cut in the United States and one or more beneficiary sub-Saharan African countries from fabric wholly formed in the United States from yarns wholly formed in the United States, or from components knit-to-shape in the United States and one or more beneficiary sub-Saharan African countries from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States).”, (b) Increase in Limitation on Certain Benefits.—The applicable percentage under clause (ii) of section 112(b)(3)(A) of 116 STAT. 1040 the African Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A)) shall be increased— (1) by 2.17 percent for the 1-year period beginning on October 1,2002, and (2) by equal increments in each succeeding 1-year period provided for in such clause, so that for the 1-year period beginning October 1, 2007, the applicable percentage is increased by 3.5 percent, except that such increase shall not apply with respect to articles eligible under subparagraph (B) of section 112(b)(3) of that Act.