MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.(a) Former Beneficiary Countries.—Section 212(a)(1) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by adding at the end the following new subparagraph:“(F) The term ‘former beneficiary country’ means a country that ceases to be designated as a beneficiary country under this title because the country has become a party to a free trade agreement with the United States.”.(b) Countries Eligible for Designation as Beneficiary Countries.—Section 212(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(b)) is amended by striking from the list of countries eligible for designation as beneficiary countries—(1) “Costa Rica”, effective on the date the President terminates the designation of Costa Rica as a beneficiary country pursuant to section 201(a)(3);(2) “Dominican Republic”, effective on the date the President terminates the designation of the Dominican Republic as a beneficiary country pursuant to section 201(a)(3);(3) “El Salvador”, effective on the date the President terminates the designation of El Salvador as a beneficiary country pursuant to section 201(a)(3);(4) “Guatemala”, effective on the date the President terminates the designation of Guatemala as a beneficiary country pursuant to section 201(a)(3);(5) “Honduras”, effective on the date the President terminates the designation of Honduras as a beneficiary country pursuant to section 201(a)(3); and119 STAT. 496(6) “Nicaragua”, effective on the date the President terminates the designation of Nicaragua as a beneficiary country pursuant to section 201(a)(3).(c) Materials of, or Processing in, Former Beneficiary Countries.—Section 213(a)(1) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(1)) is amended by striking “the Commonwealth of Puerto Rico and the United States Virgin Islands” and inserting “the Commonwealth of Puerto Rico, the United States Virgin Islands, and any former beneficiary country”.(d) Definitions and Special Rules.—Section 213(b)(5) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended by adding at the end the following new subparagraphs:“(G) Former cbtpa beneficiary country.—The term ‘former CBTPA beneficiary country’ means a country that ceases to be designated as a CBTPA beneficiary country under this title because the country has become a party to a free trade agreement with the United States.“(H) Articles that undergo production in a cbtpa beneficiary country and a former cbtpa beneficiary country.—(i) For purposes of determining the eligibility of an article for preferential treatment under paragraph (2) or (3), references in either such paragraph, and in subparagraph (C) of this paragraph to—“(I) a ‘CBTPA beneficiary country’ shall be considered to include any former CBTPA beneficiary country, and“(II) ‘CBTPA beneficiary countries’ shall be considered to include former CBTPA beneficiary countries, if the article, or a good used in the production of the article, undergoes production in a CBTPA beneficiary country.“(ii) An article that is eligible for preferential treatment under clause (i) shall not be ineligible for such treatment because the article is imported directly from a former CBTPA beneficiary country.“(iii) Notwithstanding clauses (i) and (ii), an article that is a good of a former CBTPA beneficiary country for purposes of section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) or section 334 of the Uruguay Round Agreements Act (19 U.S.C. 3592), as the case may be, shall not be eligible for preferential treatment under paragraph (2) or (3), unless—“(I) it is an article that is a good of the Dominican Republic under either such section 304 or 334; and“(II) the article, or a good used in the production of the article, undergoes production in Haiti.”.