GSP UPDATE Act

GSP Update for Production Diversification and Trade Enhancement Act or GSP UPDATE Act - Amends the Trade Act of 1974 to authorize the President to designate certain luggage and travel articles as eligible for duty-free treatment under the Generalized System of Preferences (GSP).

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6307 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6307

  To make certain luggage and travel articles eligible for duty-free 
 treatment under the Generalized System of Preferences, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2012

  Mr. Crenshaw (for himself and Mr. Smith of Nebraska) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To make certain luggage and travel articles eligible for duty-free 
 treatment under the Generalized System of Preferences, 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 ``GSP Update for Production 
Diversification and Trade Enhancement Act'' or ``GSP UPDATE Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Generalized System of Preferences under title V of 
        the Trade Act of 1974 (19 U.S.C. 2461 et seq.) was enacted to 
        promote economic development in developing and least-developed 
        countries.
            (2) Many articles referred to as luggage or travel articles 
        and classified under chapter 42 of the Harmonized Tariff 
        Schedule of the United States may not be designated as eligible 
        articles for purposes of the Generalized System of Preferences.
            (3) Global trade and manufacturing dynamics have changed 
        since the enactment of the Generalized System of Preferences in 
        1974, and many luggage and travel articles may no longer be 
        import-sensitive to industries in the United States.
            (4) By removing certain luggage and travel articles from 
        the list of articles excluded from eligibility under the 
        Generalized System of Preferences, Congress is not changing 
        rates in the Harmonized Tariff Schedule of the United States, 
        but instead is allowing those articles access to the annual 
        review process under the Generalized System of Preferences, 
        which relies on investigations and recommendations from the 
        independent United States International Trade Commission, among 
        other agencies of the United States Government.
            (5) As of February 2012, 73 of the 132 countries designated 
        as beneficiary developing countries under the Generalized 
        System of Preferences export articles classified under heading 
        4202 of the Harmonized Tariff Schedule of the United States to 
        the United States. Twenty of those countries have been 
        designated as least-developed beneficiary developing countries 
        for purposes of the Generalized System of Preferences.
            (6) As of February 2012, the People's Republic of China has 
        a nearly 80 percent share of the market for certain luggage and 
        travel articles being imported into the United States. This 
        dominance leaves little room for competition from smaller 
        developing countries. For example, countries designated as 
        beneficiary developing countries under the Generalized System 
        of Preferences account for only 5 percent of imports of those 
        articles into the United States.
            (7) The provision of duty-free treatment under the 
        Generalized System of Preferences for certain luggage and 
        travel articles imported into the United States may result in a 
        shift in the production of those articles from China to 
        countries designated as beneficiary developing countries or 
        least-developed beneficiary developing countries under the 
        Generalized System of Preferences.

SEC. 3. ELIGIBILITY OF CERTAIN LUGGAGE AND TRAVEL ARTICLES FOR DUTY-
              FREE TREATMENT UNDER THE GENERALIZED SYSTEM OF 
              PREFERENCES.

    Section 503(b)(1) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1)) 
is amended--
            (1) in subparagraph (A), by striking ``paragraph (4)'' and 
        inserting ``paragraphs (4) and (5)'';
            (2) in subparagraph (E), by striking ``Footwear'' and 
        inserting ``Except as provided in paragraph (5), footwear''; 
        and
            (3) by adding at the end the following:
            ``(5) Certain luggage and travel articles.--Notwithstanding 
        subparagraph (A) or (E) of paragraph (1), the President may 
        designate the following as eligible articles under subsection 
        (a):
                    ``(A) Articles classifiable under subheading 
                4202.11.00, 4202.12.40, 4202.21.60, 4202.21.90, 
                4202.22.15, 4202.22.45, 4202.31.60, 4202.32.40, 
                4202.32.80, 4202.92.15, 4202.92.20, 4202.92.45, or 
                4202.99.90 of the Harmonized Tariff Schedule of the 
                United States.
                    ``(B) Articles classifiable under statistical 
                reporting number 4202.12.2020, 4202.12.2050, 
                4202.12.8030, 4202.12.8070, 4202.22.8050, 4202.32.9550, 
                4202.32.9560, 4202.91.0030, 4202.91.0090, 4202.92.3020, 
                4202.92.3031, 4202.92.3091, 4202.92.9026, or 
                4202.92.9060 of the Harmonized Tariff Schedule of the 
                United States.''.
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