I

103D CONGRESS

1ST SESSION H. R. 795

To amend the Harmonized Tariff Schedule of the United States to exclude

certain footwear assembled in beneficiary countries from duty-free treatment.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1993

Mr. ROSE (for himself, Mr. SARPALIUS, Mrs. MINK, Mr. HEFNER, Mr. EMERSON, Mr. RAVENEL, Mr. DARDEN, Mr. FORD of Michigan, Mr. GORDON,

Mr. RAHALL, Mr. PICKETT, Mr. FROST, Mr. CHAPMAN, Mr. PRICE of

North Carolina, Mr. CLAY, Mr. LANCASTER, Mr. QUILLEN, Mr. VOLKMER, Mr. BONIOR, and Mr. GONZALEZ) introduced the following bill;

which was referred to the Committee on Ways and Means

A BILL

To amend the Harmonized Tariff Schedule of the United

States to exclude certain footwear assembled in beneficiary countries from duty-free treatment.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. TREATMENT OF FOOTWEAR.

4 U.S. Note 2 to subchapter II of chapter 98 of the

5 Harmonized Tariff Schedule of the United States is

6 amended—
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1 (1) by inserting ‘‘footwear not accorded duty2 free treatment under paragraph (c),’’ after ‘‘apparel

3 article,’’; and

4 (2) by striking out the last sentence and insert5 ing the following:

6 ‘‘(c)(i) No article of footwear may be treated as a

7 foreign article, or as subject to duty, if—

8 ‘‘(A) the requirements of paragraph (b)(i) and

9 (ii) are complied with respect to the article;

10 ‘‘(B) the article is produced by an existing foot11 wear manufacturer; and

12 ‘‘(C) the article is entered on or after January

13 1 of any calendar year after 1992 and before the ag14 gregate quantity of footwear produced by that man15 ufacturer and entered during that year equals the

16 annual duty-free footwear amount for that manufac17 turer.

18 ‘‘(ii) For purposes of this paragraph—

19 ‘‘(A) the term ‘annual duty-free footwear

20 amount’ for an existing footwear manufacturer

21 means—

22 ‘‘(I) for articles of footwear (other than

23 footwear described in subclause (II)) provided

24 for under any subheading classification, an

25 amount equal to the average monthly quantity
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1 of footwear provided for under such classifica2 tion that was produced during the period Janu3 ary 1, 1992, through October 1, 1992, by all

4 existing manufacturing facilities of such manu5 facturer for export to the United States, multi6 plied by 12; and

7 ‘‘(II) for articles of footwear classified

8 under subheadings 6404.11.50, 6404.11.60,

9 6404.19.40, and 6404.19.60 and articles of

10 leather footwear (for women) with synthetic

11 soles classified under the appropriate subhead12 ings of heading 6403, an amount equal to the

13 annual production capacity, as of October 1,

14 1992, of all existing manufacturing facilities of

15 the manufacturer for such classifications of

16 footwear, plus any increase in the production

17 capacity for such classifications of footwear that

18 will result from any new footwear manufactur19 ing facility construction by the manufacturer in

20 one or more beneficiary countries if such con21 struction was in progress on October 1, 1992.

22 ‘‘(B) the term ‘existing footwear manufacturer’

23 means a person that established at least 1 existing

24 manufacturing facility; and
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1 ‘‘(C) the term ‘existing manufacturing facility’

2 means a footwear manufacturing facility that was

3 operating in a beneficiary country on October 1,

4 1992.

5 ‘‘(iii) The United States International Trade Com6 mission shall—

7 ‘‘(A) identify each existing footwear manufac8 turer,

9 ‘‘(B) identify, if applicable, any new construc10 tion described in (ii)(A)(II) by such manufacturer,

11 and

12 ‘‘(C) determine the annual duty-free footwear

13 amount for each applicable footwear subheading

14 classification for each such manufacturer,

15 and provide such identification and determination to

16 the Secretary of the Treasury.

17 ‘‘(iv) The Secretary of the Treasury shall by regula18 tion specify such relevant entry information as may be re19 quired for purposes of implementing this paragraph.

20 ‘‘(d) For purposes of paragraphs (b) and (c), the

21 term ‘beneficiary country’ means a country listed in gen22 eral note 3(c)(v)(A).’’.

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