[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7986 Reported in House (RH)]
<DOC>
Union Calendar No. 727
118th CONGRESS
2d Session
H. R. 7986
[Report No. 118-890]
To modify and reauthorize the Generalized System of Preferences, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 15, 2024
Mr. Smith of Nebraska introduced the following bill; which was referred
to the Committee on Ways and Means
December 17, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
15, 2024]
_______________________________________________________________________
A BILL
To modify and reauthorize 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 ``Generalized System of Preferences
Reform Act''.
SEC. 2. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) In General.--Section 505 of the Trade Act of 1974 (19 U.S.C.
2465) is amended by striking ``December 31, 2020'' and inserting
``December 31, 2030''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to articles entered on or after the 30th day after the
date of the enactment of this Act.
(2) Retroactive application for certain liquidations and
reliquidations.--
(A) In general.--Notwithstanding section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) or any other
provision of law and subject to subparagraph (B), any
entry of a covered article to which duty-free treatment
or other preferential treatment under title V of the
Trade Act of 1974 (19 U.S.C. 2461 et seq.) would have
applied if the entry had been made on December 31,
2020, that was made--
(i) after December 31, 2020, and
(ii) before the effective date specified in
paragraph (1),
shall be liquidated or reliquidated as though such
entry occurred on the effective date specified in
paragraph (1).
(B) Requests.--A liquidation or reliquidation may
be made under subparagraph (A) with respect to an entry
only if a request therefor is filed with U.S. Customs
and Border Protection not later than 180 days after the
date of the enactment of this Act that contains
sufficient information to enable U.S. Customs and
Border Protection--
(i) to locate the entry; or
(ii) to reconstruct the entry if it cannot
be located.
(C) Payment of amounts owed.--Any amounts owed by
the United States pursuant to the liquidation or
reliquidation of an entry of a covered article under
subparagraph (A) shall be paid, without interest of any
kind, not later than 90 days after the date of the
liquidation or reliquidation (as the case may be).
(3) Definitions.--In this subsection:
(A) Covered article.--The term ``covered article''
means an article from a country that is a beneficiary
developing country under title V of the Trade Act of
1974 (19 U.S.C. 2461 et seq.) as of the effective date
specified in paragraph (1).
(B) Enter; entry.--The terms ``enter'' and
``entry'' include a withdrawal from warehouse for
consumption.
SEC. 3. MODIFICATIONS TO DESIGNATIONS OF BENEFICIARY COUNTRIES.
(a) Modifications to Designation Eligibility.--Section 502 of the
Trade Act of 1974 (19 U.S.C. 2462) is amended as follows:
(1) In subsection (b)(1), by adding at the end the
following new subparagraph:
``(J) China.''.
(2) In subsection (b)(2)--
(A) by inserting after subparagraph (H) the
following:
``(I) Such country has failed, in a manner
affecting trade or investment--
``(i) to effectively enforce its
environmental laws or regulations through a
sustained or recurring course of action or
inaction; or
``(ii) to adopt and maintain measures
implementing its obligations under common
multilateral environmental agreements.
``(J) Such country engages in gross violations of
internationally recognized human rights in that country
(including any designated zone in that country).''; and
(B) in the text following subparagraph (J) (as
inserted by subparagraph (A)), by striking ``and (H)
(to the extent described in section 507(6)(D))'' and
inserting ``(H) (to the extent described in section
507(6)(D)), (I), and (J)''.
(3) In subsection (c)--
(A) in paragraph (6)(B), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (7)--
(i) by striking ``whether'' and all that
follows through ``afford'' and inserting ``the
extent to which such country is affording'';
and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(8) the extent to which such country allows, after the
date of the enactment of this paragraph, construction of
military bases by a covered nation (as such term is defined in
section 4872 of title 10, United States Code);
``(9) the extent to which such country--
``(A) provides open and equitable market access for
United States agriculture, including through the
adoption of science-based standards;
``(B) refrains from imposing unjustified trade
restrictions that affect new agricultural technologies,
including biotechnology;
``(C) refrains from providing domestic agricultural
subsidies that decrease market opportunities for United
States exports; and
``(D) refrains from imposing prohibitions on the
generic use of common food and beverage terms;
``(10) the extent to which such country is deepening its
economic, diplomatic, and military relations with covered
nations (as such term is defined in section 4872 of title 10,
United States Code);
``(11) the extent to which such country has established, or
is making continual progress toward establishing--
``(A) the rule of law, political pluralism, and the
right to due process, a fair trial, and equal
protection under the law;
``(B) economic policies to reduce poverty, increase
the availability of health care and educational
opportunities, expand physical infrastructure, promote
the development of private enterprise, and encourage
the formation of capital markets through micro-credit
or other programs; and
``(C) a system to combat corruption and bribery,
such as signing and implementing the Convention on
Combating Bribery of Foreign Public Officials in
International Business Transactions, done at Paris
December 17, 1997, and entered into force February 15,
1999 (TIAS 99-215);
``(12) the extent to which such country provides equitable
and non-discriminatory tax treatment for United States
entities;
``(13) the extent to which such country is effectively
enforcing its environmental laws and regulations and adopting
and maintaining measures implementing its obligations under
common multilateral environmental agreements;
``(14) the extent to which such country is achieving the
goals described in section 3(b) of the Women's Entrepreneurship
and Economic Empowerment Act of 2018 (22 U.S.C. 2151-2(b));
``(15) whether such country engages in activities that
undermine United States national security or foreign policy
interests; and
``(16) the extent to which such country--
``(A) has imposed unreasonable digital trade
barriers, such as unnecessary or discriminatory data
localization or data transfer restrictions,
discriminatory treatment of digital products, or forced
disclosure of proprietary source code; and
``(B) has taken steps in the digital environment to
support consumer protections, the privacy of personal
information, and open digital ecosystems.''.
(b) Conforming Amendments.--Section 507 of the Trade Act of 1974
(19 U.S.C. 2467) is amended--
(1) in paragraph (4)--
(A) in subparagraph (D), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(F) the elimination of all forms of
discrimination with respect to occupation and
employment.''; and
(2) by adding at the end the following:
``(7) Common multilateral environmental agreement.--
``(A) In general.--The term `common multilateral
environmental agreement', for purposes of determining
the eligibility of a country for designation as a
beneficiary developing country under this title, means
any agreement specified in subparagraph (B) to which
both the United States and that country are full
parties, including any current or future mutually
agreed upon protocols, amendments, annexes, or
adjustments to such an agreement.
``(B) Agreements specified.--The agreements
specified in this subparagraph are the following:
``(i) The Convention on International Trade
in Endangered Species of Wild Fauna and Flora,
done at Washington March 3, 1973 (27 UST 1087;
TIAS 8249).
``(ii) The Montreal Protocol on Substances
that Deplete the Ozone Layer, done at Montreal
September 16, 1987.
``(iii) The Protocol of 1978 Relating to
the International Convention for the Prevention
of Pollution from Ships, 1973, done at London
February 17, 1978.
``(iv) The Convention on Wetlands of
International Importance, Especially as
Waterfowl Habitat, done at Ramsar February 2,
1971 (TIAS 11084).
``(v) The Convention on the Conservation of
Antarctic Marine Living Resources, done at
Canberra May 20, 1980 (33 UST 3476).
``(vi) The International Convention for the
Regulation of Whaling, done at Washington
December 2, 1946 (62 Stat. 1716).
``(vii) The Convention for the
Establishment of an Inter-American Tropical
Tuna Commission, done at Washington May 31,
1949 (1 UST 230).''.
SEC. 4. MODIFICATION OF PROVISIONS RELATING TO WITHDRAWAL, SUSPENSION,
OR LIMITATION OF COUNTRY DESIGNATION.
Section 502(d)(1) of the Trade Act of 1974 (19 U.S.C. (2462(d)(1))
is amended--
(1) by striking ``the President shall consider the
factors'' and inserting ``the President--
``(A) shall consider--
``(i) the factors'';
(2) by striking the period at the end and inserting a
semicolon; and
(3) by adding at the end the following:
``(ii) the likely impacts of any such
action on working toward, or continuing to
meet, the criteria and factors described in
subsections (b) and (c) of this section; and
``(iii) the likely impacts of any such
action on workers and populations in the
country that such criteria and factors are
intended to help;
``(B) take all available steps to facilitate
continued duty-free treatment under this title for
products with respect to which the imposition of duties
is likely--
``(i) to have an adverse effect on meeting
the criteria and factors described in
subsections (b) and (c) of this section; or
``(ii) result in severe economic harm to
the populations that such criteria and factors
are intended to help; and''.
SEC. 5. PROCEDURAL ENFORCEMENT REFORMS.
Section 502 of the Trade Act of 1974 (19 U.S.C. 2462), as amended
by sections 3 and 4, is further amended as follows:
(1) In subsection (d)(1), by adding at the end the
following:
``(C) hold a public hearing or provide for a period
of not less than 30 days for submission of comments by
the public.''.
(2) In subsection (f)(2)--
(A) in the paragraph heading, by inserting ``or
suspension'' after ``termination''.;
(B) by inserting ``or suspend'' after ``terminate''
each place it appears; and
(C) by inserting ``or suspension'' after
``termination''.
(3) By adding at the end the following:
``(g) Publication of Determinations Relating to Petitions for
Review.--The United States Trade Representative shall publish in the
Federal Register a notice of, and the rationale for, any determination
of the Trade Representative with respect to a petition for review of
the eligibility of a country for designation as a beneficiary
developing country, including a determination--
``(1) to accept or deny such a petition;
``(2) to continue to review the eligibility of the country;
or
``(3) to withdraw, suspend, or limit the application of
duty-free treatment under this title with respect to the
country.''.
SEC. 6. ASSESSMENT AND REPORT ON COMPLIANCE WITH ELIGIBILITY
REQUIREMENTS.
Section 502 of the Trade Act of 1974, as amended by sections 3
through 5, is further amended by adding at the end the following:
``(h) Assessment and Report on Compliance With Eligibility
Requirements.--
``(1) In general.--The President shall--
``(A) on an annual basis--
``(i) conduct assessments of the compliance
of an appropriate number of countries
designated as beneficiary developing countries
for purposes of this title in meeting or
continuing to meet the eligibility requirements
under this title; and
``(ii) make determinations with respect to
whether to initiate full reviews of the
practices of those countries to assess the
continued eligibility of those countries for
designation as beneficiary developing countries
under this title; and
``(B) submit to Congress a report consisting of the
results of such assessments and determinations.
``(2) Frequency.--The President shall conduct an assessment
described in clause (i) of paragraph (1)(A) and make a
determination described in clause (ii) of that paragraph with
respect to each country designated as a beneficiary developing
country for purposes of this title not less frequently than
once every 3 years.''.
SEC. 7. MODIFICATIONS TO RULES OF ORIGIN.
(a) In General.--Section 503(a)(2) of the Trade Act of 1974 (19
U.S.C. 2463(a)(2)) is amended--
(1) in subparagraph (A), in the matter following clause
(ii)(II), by striking ``35 percent'' and inserting ``the
percentage described in subparagraph (B)'';
(2) by redesignating subparagraph (B) as subparagraph (C);
(3) by inserting after subparagraph (A) the following:
``(B) Percentage described.--The percentage
described in this subparagraph is--
``(i) in the case of articles entered
before January 1, 2027, 35 percent;
``(ii) in the case of articles entered on
or after January 1, 2027, and before January 1,
2029, 40 percent;
``(iii) in the case of articles entered on
or after January 1, 2029, and before January 1,
2031, 45 percent; and
``(iv) in the case of articles entered on
or after January 1, 2031, 50 percent.''; and
(4) by adding at the end the following:
``(D) Pass-through and cost or value of materials
produced in the customs territory of the united
states.--
``(i) In general.--The duty-free treatment