Sec. 12407. Agricultural fiber products trust fund

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There is established in the Treasury of the United States a trust fund to be known as the Agricultural Fiber Products Trust Fund (in this section referred to as the Trust Fund ), consisting of such amounts as may be transferred to the Trust Fund pursuant to subsection (c)(1), and to be used for the following purposes: Reducing the injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric.

Reducing the injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric. Providing grants described in section 506(d) of the Trade and Development Act of 2000 ( 7 U.S.C. 7101 note). From the amount made available in subsection (c), the Secretary shall make payments annually beginning in calendar year 2025 for the purposes described in subsection (a)(1). The Secretary shall make payments under paragraph

(1)as follows: To each eligible manufacturer under paragraph

(3)of section 4002(c) of the Wool Suit and Textile Trade Extension Act of 2004 ( Public Law 108–429 ; 118 Stat. 2600), as amended by section 1633(c) of the Miscellaneous Trade and Technical Corrections Act of 2006 ( Public Law 109–280 ; 120 Stat. 1166) and section 325(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (division C of Public Law 110–343 ; 122 Stat. 3875), and any successor-in-interest to such a manufacturer as provided for under paragraph

(4)of such section 4002(c), that submits an affidavit in accordance with paragraph

(2)for the year of the payment, payments in amounts authorized under that paragraph. To each eligible manufacturer under paragraph

(6)of such section 4002(c), payments in amounts authorized under that paragraph. An affidavit required by subparagraph (A)(i) shall be submitted to the Secretary, or as directed by the Secretary, and not later than March 15. The Secretary shall make payments to eligible manufacturers and successors-in-interest described in clauses

(i)and

(ii)of subparagraph

(A)not later than April 15 of the year of the payment. The Secretary shall, as soon as practicable after the date of the enactment of this Act, negotiate memoranda of understanding with the Commissioner responsible for U.S. Customs and Border Protection and the Secretary of Commerce to establish procedures pursuant to which the Commissioner and the Secretary of Commerce will assist in carrying out the provisions of this section. In any calendar year in which the suspension of duty on wool fabrics provided for under headings 9902.51.11, 9902.51.13, 9902.51.14, 9902.51.15, and 9902.51.16 of the Harmonized Tariff Schedule of the United States are not in effect, the amount of any payment described in paragraph

(1)to a manufacturer or successor-in-interest shall be increased by an amount the Secretary, after consultation with the Secretary of Commerce, determines is equal to the amount the manufacturer or successor-in-interest would have saved during the calendar year of the payment if the suspension of duty on wool fabrics were in effect. A determination of the Secretary under this subsection shall be final and not subject to appeal or protest. From the amount made available in subsection

(c)the Secretary shall make payments annually beginning in calendar year 2025 for the purpose described in subsection (a)(2). The Secretary shall make payments under paragraph

(2)as follows: Twenty-five percent of the amounts made available in subsection (c)(2)(A) shall be paid to one or more nationally recognized associations established for the promotion of pima cotton for use in textile and apparel goods. Except as provided in subclause (II), 25 percent of the amounts made available in subsection (c)(2)(A) shall be paid to yarn spinners of pima cotton that produce ring spun cotton yarns in the United States, to be allocated to each spinner in an amount that bears the same ratio as— the spinner’s production of ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number) from pima cotton in single and plied form during the prior calendar year (as evidenced by an affidavit provided by the spinner that meets the requirements of subparagraph (B)), bears to— the production of the yarns described in item

(aa)during the prior calendar year for all spinners who qualify under this paragraph. A yarn spinner shall not receive an amount under clause

(ii)that exceeds the cost of pima cotton that— was purchased during the prior calendar year; and was used in spinning any cotton yarns. The Secretary shall reallocate any amounts reduced by reason of the limitation under item

(aa)to spinners using the ratio described in subclause (I), disregarding production of any spinner subject to that limitation. Fifty percent of the amounts made available in subsection (c)(2)(A) shall be paid to manufacturers who cut and sew cotton shirts in the United States who certify that they used imported cotton fabric during the prior calendar year, to be allocated to each such manufacturer in an amount that bears the same ratio as— the dollar value (excluding duty, shipping, and related costs) of imported woven cotton shirting fabric of 80s or higher count and 2-ply in warp purchased by the manufacturer during the prior calendar year (as evidenced by an affidavit provided by the manufacturer that meets the requirements of subparagraph (C)) used in the manufacturing of men’s and boys’ cotton shirts; bears to the dollar value (excluding duty, shipping, and related costs) of the fabric described in subclause

(I)purchased during the prior calendar year by all manufacturers who qualify under this clause. The affidavit required by subparagraph (A)(ii)(I)(aa) is a notarized affidavit provided annually by an officer of a producer of ring spun yarns that affirms— that the producer used pima cotton during the year in which the affidavit is filed and during the prior calendar year to produce ring spun cotton yarns in the United States, measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form; the quantity, measured in pounds, of ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form during the prior calendar year; that the producer maintains supporting documentation showing the quantity of such yarns produced, and evidencing the yarns as ring spun cotton yarns, measuring less than 83.33 decitex (exceeding 120 metric number), in single and plied form during the prior calendar year; and the dollar amount of pima cotton purchased during the prior calendar year— that was used in spinning any cotton yarns; and for which the producer maintains supporting documentation. The affidavit required by subparagraph (A)(iii)(I) is a notarized affidavit provided annually by an officer of a manufacturer of men’s and boys’ shirts that affirms— that the manufacturer used imported cotton fabric during the year in which the affidavit is filed and during the prior calendar year, to cut and sew men’s and boys’ woven cotton shirts in the United States; the dollar value of imported woven cotton shirting fabric of 80s or higher count and 2-ply in warp purchased by the manufacturer during the prior calendar year; that the manufacturer maintains invoices along with other supporting documentation (such as price lists and other technical descriptions of the fabric qualities) showing the dollar value of such fabric purchased, the date of purchase, and evidencing the fabric as woven cotton fabric of 80s or higher count and 2-ply in warp; and that the fabric was suitable for use in the manufacturing of men’s and boys’ cotton shirts. For purposes of the affidavit under clause (i), the date of purchase shall be the invoice date, and the dollar value shall be determined excluding duty, shipping, and related costs. Any person required to provide an affidavit under this paragraph shall file the affidavit with the Secretary or as directed by the Secretary not later than March 15 of the applicable calendar year. The Secretary shall make a payment under clause

(ii)or

(iii)of subparagraph

(A)not later than the date that is 30 days after the filing of the affidavit required with respect to that payment. From the amount made available in subsection

(c)the Secretary shall make payments annually beginning in calendar year 2025 for the purpose described in subsection (a)(3). Of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Trust Fund $50,000,000 for each of the calendar years 2025 through 2029. The funds made available under paragraph (1), shall be distributed to the purposes of this section in the following manner: Not less than $30,000,000 for each of the calendar years 2025 through 2029 for the purposes described in (a)(1). Not less than $17,750,000 for each of the calendar years 2025 through 2029 for the purposes described in (a)(2). Not less than $2,250,000 for each of the calendar years 2025 through 2029 for the purposes described in (a)(3). Amounts transferred to the Trust Fund under paragraph

(1)shall remain available until expended. The Agricultural Act of 2014 ( Public Law 113–79 ) is amended— in section 12314 ( 7 U.S.C. 2101 note), by adding at the end the following: Effective January 1, 2025, the Trust Fund shall be abolished and all unobligated amounts in the Trust Fund on such date shall be transferred to the general fund of the Treasury of the United States. ; in section 12315 ( 7 U.S.C. 2101 note), by adding at the end the following: Effective January 1, 2025, the Trust Fund shall be abolished and all unobligated amounts in the Trust Fund on such date shall be transferred to the general fund of the Treasury of the United States. ; and in section 12316 ( 7 U.S.C. 2101 note)— in subsection (a), by adding at the end the following: Effective January 1, 2025, the Secretary may not make grants under the preceding sentence and, any unobligated amounts of the amounts made available under such preceding sentence, are rescinded. ; and in subsection (b), by adding at the end the following: Effective January 1, 2025, the authority to use unexpended unobligated balances remaining in the Wool Research, Development, and Promotion Trust Fund for the purposes described in the preceding sentence shall cease to be effective. .

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