,,ib ,union ,calendar ,no4 #gbg #aahth ,,congress #b;d ,session ,h4 ,r4 #gihf ,report ,no4 #aah-hij ,,in ,,the ,,house ,,of ,,representatives ,april #ae1 #bjbd ,mr4 ,smith of ,nebraska introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,december #ag1 #bjbd ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,april #ae1 #bjbd ,a ,,bill ,to modify and reauthorize the ,generalized ,system of ,preferences1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,generalized ,system of ,preferences ,reform ,act4 #b4 ,extension of ,generalized ,system of ,preferences 7a7 ,in general ,section #eje of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfe7 is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjcj4 7b7 ,effective date 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to articles entered on or after the #cjth day after the date of the enactment of this ,act4 7#b7 ,retroactive application for certain liquidations and reliquidations 7,a7 ,in general ,notwithstanding section #ead of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aead7 or any other provision of law and subject to subparagraph 7,b71 any entry of a covered article to which duty-free treatment or other preferential treatment under title ,v of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfa et seq47 would have applied if the entry had been made on ,december #ca1 #bjbj1 that was made-- 7i7 after ,december #ca1 #bjbj1 and 7ii7 before the effective date specified in paragraph 7#a71 shall be liquidated or reliquidated as though such entry occurred on the effective date specified in paragraph 7#a74 7,b7 ,requests ,a liquidation or reliquidation may be made under subparagraph 7,a7 with respect to an entry only if a request therefor is filed with ,u4,s4 ,customs and ,border ,protection not later than #ahj days after the date of the enactment of this ,act that contains sufficient information to enable ,u4,s4 ,customs and ,border ,protection-- 7i7 to locate the entry2 or 7ii7 to reconstruct the entry if it cannot be located4 7,c7 ,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 7,a7 shall be paid1 without interest of any kind1 not later than #ij days after the date of the liquidation or reliquidation 7as the case may be74 7#c7 ,definitions ,in this subsection3 7,a7 ,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 #aigd 7#ai ,u4,s4,c4 #bdfa et seq47 as of the effective date specified in paragraph 7#a74 7,b7 ,enter2 entry ,the terms enter and entry include a withdrawal from warehouse for consumption4 #c4 ,modifications to designations of beneficiary countries 7a7 ,modifications to designation eligibility ,section #ejb of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfb7 is amended as follows3 7#a7 ,in subsection 7b77#a71 by adding at the end the following new subparagraph3 7,j7 ,china4 4 7#b7 ,in subsection 7b77#b7-- 7,a7 by inserting after subparagraph 7,h7 the following3 7,i7 ,such country has failed1 in a manner affecting trade or investment-- 7i7 to effectively enforce its environmental laws or regulations through a sustained or recurring course of action or inaction2 or 7ii7 to adopt and maintain measures implementing its obligations under common multilateral environmental agreements4 7,j7 ,such country engages in gross violations of internationally recognized human rights in that country 7including any designated zone in that country74 2 and 7,b7 in the text following subparagraph 7,j7 7as inserted by subparagraph 7,a771 by striking and 7,h7 7to the extent described in section #ejg7f77;,d77 and inserting 7,h7 7to the extent described in section #ejg7f77;,d771 7,i71 and 7,j74 7#c7 ,in subsection 7c7-- 7,a7 in paragraph 7#f77;,b71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#g7-- 7i7 by striking whether and all that follows through afford and inserting the extent to which such country is affording2 and 7ii7 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following new paragraphs3 7#h7 the extent to which such country allows1 after the date of the enactment of this paragraph1 construction of military bases by a covered nation 7as such term is defined in section #dhgb of title #aj1 ,united ,states ,code72 7#i7 the extent to which such country-- 7,a7 provides open and equitable market access for ,united ,states agriculture1 including through the adoption of science-based standards2 7,b7 refrains from imposing unjustified trade restrictions that affect new agricultural technologies1 including biotechnology2 7,c7 refrains from providing domestic agricultural subsidies that decrease market opportunities for ,united ,states exports2 and 7,d7 refrains from imposing prohibitions on the generic use of common food and beverage terms2 7#aj7 the extent to which such country is deepening its economic1 diplomatic1 and military relations with covered nations 7as such term is defined in section #dhgb of title #aj1 ,united ,states ,code72 7#aa7 the extent to which such country has established1 or is making continual progress toward establishing-- 7,a7 the rule of law1 political pluralism1 and the right to due process1 a fair trial1 and equal protection under the law2 7,b7 economic policies to reduce poverty1 increase the availability of health care and educational opportunities1 expand physical infrastructure1 promote the development of private enterprise1 and encourage the formation of capital markets through micro-credit or other programs2 and 7,c7 a system to combat corruption and bribery1 such as signing and implementing the ,convention on ,combating ,bribery of ,foreign ,public ,officials in ,international ,business ,transactions1 done at ,paris ,december #ag1 #aiig1 and entered into force ,february #ae1 #aiii 7,,tias #ii-bae72 7#ab7 the extent to which such country provides equitable and non-discriminatory tax treatment for ,united ,states entities2 7#ac7 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 agreements2 7#ad7 the extent to which such country is achieving the goals described in section #c7;b7 of the ,women's ,entrepreneurship and ,economic ,empowerment ,act of #bjah 7#bb ,u4,s4,c4 #baea-b7;b772 7#ae7 whether such country engages in activities that undermine ,united ,states national security or foreign policy interests2 and 7#af7 the extent to which such country-- 7,a7 has imposed unreasonable digital trade barriers1 such as unnecessary or discriminatory data localization or data transfer restrictions1 discriminatory treatment of digital products1 or forced disclosure of proprietary source code2 and 7,b7 has taken steps in the digital environment to support consumer protections1 the privacy of personal information1 and open digital ecosystems4 4 7b7 ,conforming amendments ,section #ejg of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfg7 is amended-- 7#a7 in paragraph 7#d7-- 7,a7 in subparagraph 7,d71 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,e71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,f7 the elimination of all forms of discrimination with respect to occupation and employment4 2 and 7#b7 by adding at the end the following3 7#g7 ,common multilateral environmental agreement 7,a7 ,in general ,the term common multilateral environmental agreement1 for purposes of determining the eligibility of a country for designation as a beneficiary developing country under this title1 means any agreement specified in subparagraph 7,b7 to which both the ,united ,states and that country are full parties1 including any current or future mutually agreed upon protocols1 amendments1 annexes1 or adjustments to such an agreement4 7,b7 ,agreements specified ,the agreements specified in this subparagraph are the following3 7i7 ,the ,convention on ,international ,trade in ,endangered ,species of ,wild ,fauna and ,flora1 done at ,washington ,march #c1 #aigc 7#bg ,,ust #ajhg2 ,,tias #hbdi74 7ii7 ,the ,montreal ,protocol on ,substances that ,deplete the ,ozone ,layer1 done at ,montreal ,september #af1 #aihg4 7iii7 ,the ,protocol of #aigh ,relating to the ,international ,convention for the ,prevention of ,pollution from ,ships1 #aigc1 done at ,london ,february #ag1 #aigh4 7iv7 ,the ,convention on ,wetlands of ,international ,importance1 ,especially as ,waterfowl ,habitat1 done at ,ramsar ,february #b1 #aiga 7,,tias #aajhd74 7v7 ,the ,convention on the ,conservation of ,antarctic ,marine ,living ,resources1 done at ,canberra ,may #bj1 #aihj 7#cc ,,ust #cdgf74 7vi7 ,the ,international ,convention for the ,regulation of ,whaling1 done at ,washington ,december #b1 #aidf 7#fb ,stat4 #agaf74 7vii7 ,the ,convention for the ,establishment of an ,inter-,american ,tropical ,tuna ,commission1 done at ,washington ,may #ca1 #aidi 7#a ,,ust #bcj74 4 #d4 ,modification of provisions relating to withdrawal1 suspension1 or limitation of country designation ,section #ejb7;d77#a7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 7#bdfb7;d77#a77 is amended-- 7#a7 by striking the ,president shall consider the factors and inserting the ,president-- 7,a7 shall consider-- 7i7 the factors 2 7#b7 by striking the period at the end and inserting a semicolon2 and 7#c7 by adding at the end the following3 7ii7 the likely impacts of any such action on working toward1 or continuing to meet1 the criteria and factors described in subsections 7b7 and 7c7 of this section2 and 7iii7 the likely impacts of any such action on workers and populations in the country that such criteria and factors are intended to help2 7,b7 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-- 7i7 to have an adverse effect on meeting the criteria and factors described in subsections 7b7 and 7c7 of this section2 or 7ii7 result in severe economic harm to the populations that such criteria and factors are intended to help2 and 4 #e4 ,procedural enforcement reforms ,section #ejb of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfb71 as amended by sections #c and #d1 is further amended as follows3 7#a7 ,in subsection 7d77#a71 by adding at the end the following3 7,c7 hold a public hearing or provide for a period of not less than #cj days for submission of comments by the public4 4 7#b7 ,in subsection 7f77#b7-- 7,a7 in the paragraph heading1 by inserting or suspension after termination42 7,b7 by inserting or suspend after terminate each place it appears2 and 7,c7 by inserting or suspension after termination4 7#c7 ,by adding at the end the following3 7g7 ,publication of determinations relating to petitions for review ,the ,united ,states ,trade ,representative shall publish in the ,federal ,register a notice of1 and the rationale for1 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 country1 including a determination-- 7#a7 to accept or deny such a petition2 7#b7 to continue to review the eligibility of the country2 or 7#c7 to withdraw1 suspend1 or limit the application of duty-free treatment under this title with respect to the country4 4 #f4 ,assessment and report on compliance with eligibility requirements ,section #ejb of the ,trade ,act of #aigd1 as amended by sections #c through #e1 is further amended by adding at the end the following3 7h7 ,assessment and report on compliance with eligibility requirements 7#a7 ,in general ,the ,president shall-- 7,a7 on an annual basis-- 7i7 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 title2 and 7ii7 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 title2 and 7,b7 submit to ,congress a report consisting of the results of such assessments and determinations4 7#b7 ,frequency ,the ,president shall conduct an assessment described in clause 7i7 of paragraph 7#a77;,a7 and make a determination described in clause 7ii7 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 #c years4 4 #g4 ,modifications to rules of origin 7a7 ,in general ,section #ejc7;a77#b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;a77#b77 is amended-- 7#a7 in subparagraph 7,a71 in the matter following clause 7ii77,,ii71 by striking #ce percent and inserting the percentage described in subparagraph 7,b72 7#b7 by redesignating subparagraph 7,b7 as subparagraph 7,c72 7#c7 by inserting after subparagraph 7,a7 the following3 7,b7 ,percentage described ,the percentage described in this subparagraph is-- 7i7 in the case of articles entered before ,january #a1 #bjbg1 #ce percent2 7ii7 in the case of articles entered on or after ,january #a1 #bjbg1 and before ,january #a1 #bjbi1 #dj percent2 7iii7 in the case of articles entered on or after ,january #a1 #bjbi1 and before ,january #a1 #bjca1 #de percent2 and 7iv7 in the case of articles entered on or after ,january #a1 #bjca1 #ej percent4 2 and 7#d7 by adding at the end the following3 7,d7 ,pass-through and cost or value of materials produced in the customs territory of the ,united ,states 7i7 ,in general ,the duty-free treatment provided under this title shall apply to any article that meets the requirements of this paragraph4 7ii7 ,exception with respect to materials produced in the customs territory of the ,united ,states ,to the extent that the cost or value of materials produced in the customs territory of the ,united ,states is included with respect to an article1 an amount not to exceed #ae percent of the appraised value of the article at the time it is entered that is attributed to such ,united ,states cost or value may be applied toward determining the applicable percentage described in subparagraph 7,b74 7iii7 ,no pass-through to other programs ,notwithstanding clause 7i71 duty-free treatment under any other program providing such treatment for an article1 conditional on the eligibility of an article to be treated as originating for purposes of this paragraph1 may only be extended to an article that is otherwise eligible for duty-free treatment under this title in a calendar year-- 7,i7 if the article would remain eligible for such treatment even if subparagraph 7,a7 were applied by substituting #ce percent for the percentage described in subparagraph 7,b7 with respect to that calendar year2 and 7,,ii7 if no amount attributable to ,united ,states cost or value1 as authorized by clause 7ii7 of this subparagraph1 would be required to be applied in order to achieve such eligibility4 4 7b7 ,report 7#a7 ,in general ,not later than ,january #a1 #bjbf1 the ,united ,states ,trade ,representative shall submit to ,congress a report on the impact of the ,generalized ,system of ,preferences rule of origin requirements under section #ejc7;a77#b77;,a77ii77,i7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;a77#b77;,a77ii77,i77 in fostering regional economic integration through program cumulation among regional associations4 7#b7 ,matters to be included ,the report required under this subsection shall include recommendations regarding-- 7,a7 new regional associations eligible for treatment as one country under the provisions of section #ejg7b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfg7b772 and 7,b7 updates to the rule of origin methodology under section #ejc of such ,act that would better maximize content from beneficiary developing countries and the ,united ,states4 #h4 ,modifications to competitive need limitation 7a7 ,in general ,section #ejc of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7 is amended-- 7#a7 in subsection 7c77#b7-- 7,a7 in subparagraph 7,a77ii7-- 7i7 in subclause 7,i71 by striking for #aiif1 #ge1jjj1jjj and inserting for calendar year #bjbc1 #ejj1jjj1jjj2 and 7ii7 in subclause 7,,ii71 by striking #e1jjj1jjj and inserting #b4e percent of such applicable amount2 7,b7 in subparagraph 7,c71 by striking may1 subject and inserting should1 subject2 and 7,c7 in subparagraph 7,f77ii7-- 7i7 in subclause 7,i71 by striking for calendar year #aiif1 #ac1jjj1jjj and inserting for calendar year #bjbc1 #ej1jjj1jjj2 and 7ii7 in subclause 7,,ii71 by striking #ejj1jjj and inserting #b4e percent of such applicable amount2 7#b7 in subsection 7d77#d77;,b71 by adding at the end the following3 7iii7 ,clause 7ii77,,ii7 shall not apply with respect to any article if a like or directly competitive article was not produced in the ,united ,states in any of the preceding #c calendar years4 4 7b7 ,applicability 7#a7 ,in general ,the amendments made by subsection 7a7 shall take effect on the date of the enactment of this ,act4 7#b7 ,restoration of duty-free treatment 7,a7 ,list required ,not later than #abj days after the date of the enactment of this ,act1 the ,president shall-- 7i7 list each article with respect to which duty-free treatment was eliminated 7as of the date of the enactment of this ,act7 pursuant to subsection 7c7 of section #ejc of the ,trade ,act of #aigd that is eligible for such treatment pursuant to such section #ejc as amended by subsection 7a7 of this section2 and 7ii7 determine1 with respect to each such article1 whether the article is a potentially sensitive product that warrants review pursuant to subsection 7c77#a7 of such section #ejc for the continued withholding of duty-free treatment4 7,b7 ,prompt restoration ,except for articles for which the ,president makes an affirmative determination pursuant to subparagraph 7,a77ii71 the ,president shall restore duty-free treatment to each article included in the list described in subparagraph 7,a77i7 on such #abjth day after date of enactment4 7#c7 ,expedited review of certain articles for exclusion from duty-free treatment ,the ,president shall review1 pursuant to section #ejc7;c77#a7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;c77#a771 whether duty-free treatment should continue to be withheld from each article for which the ,president makes an affirmative determination pursuant to paragraph 7#b77;,a77ii74 ,not later than #a year after the date of the enactment of this ,act1 the ,president shall restore duty-free treatment to each article for which such review determines that such treatment should not be withheld4 7#d7 ,reports ,not later than #a year after the date of the enactment of this ,act1 the ,president shall submit to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate a report containing-- 7,a7 the results of the reviews conducted pursuant to paragraph 7#c72 and 7,b7 justifications for the reasons for which duty-free treatment was withheld or restored with respect to articles described in such paragraph4 #i4 ,expedited product coverage petition process 7a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,united ,states ,international ,trade ,commission shall publish in the ,federal ,register and on a publicly available internet website of the ,commission a notice requesting interested parties to submit to the ,commission1 during the #fj-;day period beginning on the date of such publication1 a petition-- 7#a7 to add one or more headings or subheadings of the ,harmonized ,tariff ,schedule of the ,united ,states to1 or remove one or more such headings or subheadings from1 the list of articles that may not be designated as an eligible article for duty-free treatment pursuant to section #ejc7;b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7;b772 or 7#b7 to provide duty-free treatment to one or more headings or subheadings of the ,harmonized ,tariff ,schedule under the ,generalized ,system of ,preferences that are-- 7,a7 not restricted under such section #ejc7;b7 from designation as an eligible article2 and 7,b7 not otherwise designated an eligible article by the ,president pursuant to section #eja or section #ejc7;a7 of such ,act 7#ai ,u4,s4,c4 #bdfa2 #bdfc7;a774 7b7 ,contents of petition ,a petition submitted pursuant to subsection 7a7 shall be eligible for consideration under the process provided by this section only if such petition includes-- 7#a7 the name and address of the petitioner2 7#b7 the #h-;digit subheading level or levels under the ,harmonized ,tariff ,schedule with respect to which the petition is submitted2 and 7#c7 for a petition submitted pursuant to subsection 7a71 a certification that the petitioner is an interested party and a brief description of the manner and extent to which the petitioner is a likely beneficiary with respect to the addition or removal of the heading or subheading level concerned4 7c7 ,publication of petitions ,as soon as practicable after the #fj-;day period described in subsection 7a71 and not later than #cj days after the end of such period1 the ,commission shall publish on a publicly available internet website of the ,commission the contents of each petition received4 7d7 ,opportunity for public comment ,during the #de-;day period beginning on the date of the publication of petitions pursuant to subsection 7c71 the ,commission shall publish in the ,federal ,register and on a publicly available internet website of the ,commission a notice requesting members of the public to submit comments to the ,commission with respect to the changes sought by the petitions4 7e7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,commission shall submit to the appropriate congressional committees a report on each eligible petition submitted pursuant to the process provided by this section that includes1 with respect to the article or articles concerned in each such petition-- 7#a7 data from the #e most recent calendar years for which complete information is available on-- 7,a7 sources of imports2 7,b7 values of imports2 7,c7 market share of imports 7to the extent practical72 and 7,d7 domestic production 7to the extent practical72 7#b7 any information on whether the product is used as an input in ,united ,states manufacturing2 and 7#c7 a summary of information provided in the form of comments rebutting or objecting to the petition4 7f7 ,authorities 7#a7 ,procedures ,the ,commission shall prescribe and publish in the ,federal ,register and on a publicly available internet website of the ,commission all procedures to be complied with by members of the public submitting petitions4 7#b7 ,judicial review precluded ,the exercise of functions under this section shall not be subject to judicial review4 7g7 ,interested party defined ,in this section1 the term interested party has the definition given such term in section #gga of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg71 except that an interested party under this section may not include-- 7#a7 any person described in paragraph 7#i77;,a7 of such section1 other than a person that is an importer or a business association of importers2 or 7#b7 any person described in paragraph 7#i77;,b7 or 7#i77;,g7 of such section4 #aj4 ,extension of ,customs ,user ,fees 7a7 ,in general ,section #acjca7;j77#c7 of the ,consolidated ,omnibus ,budget ,reconciliation ,act of #aihe 7#ai ,u4,s4,c4 #eh;c7j77#c77 is amended-- 7#a7 in subparagraph 7,a71 by striking ,september #cj1 #bjca and inserting ,september #cj1 #bjcc2 and 7#b7 in subparagraph 7,b77i71 by striking ,september #cj1 #bjca and inserting ,september #cj1 #bjcc4 7b7 ,rate for merchandise processing fees ,section #ejc of the ,united ,states-,korea ,free ,trade ,agreement ,implementation ,act 7,public ,law #aab-da2 #ai ,u4,s4,c4 #chje note7 is amended by striking ,september #cj1 #bjca and inserting ,september #cj1 #bjcc4 ,december #ag1 #bjbd ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed