I 

117TH CONGRESS 

1ST SESSION H. R. 6171 

To modify the competitive need limitation provisions under the Generalized 

System of Preferences program. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 7, 2021 

Mrs. WALORSKI (for herself and Mrs. MURPHY of Florida) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To modify the competitive need limitation provisions under 

the Generalized System of Preferences program. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CNL Update Act’’. 

5 SEC. 2. SENSE OF CONGRESS. 

6 It is the sense of Congress that— 

7 (1) United States trade capacity building agen8 cies should work with, and provide appropriate re9 sources to, beneficiary developing countries under 

10 the Generalized System of Preferences program 


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1 under title V of the Trade Act of 1974 (19 U.S.C. 

2 2461 et seq.) to assist such countries in meeting the 

3 eligibility criteria under such program; 

4 (2) the goal of such eligibility criteria is to raise 

5 standards and improve the well-being of individuals 

6 in the beneficiary developing countries through trade 

7 and economic development; 

8 (3) trade policies cannot create a race to the 

9 top if punitive actions treat good and bad actors 

10 alike; 

11 (4) in determining appropriate actions to take 

12 under subsection (d) of section 502 of the Trade Act 

13 of 1974 (19 U.S.C. 2462(d)), the President should, 

14 in a manner consistent with statutory require15 ments— 

16 (A) consider the impact of withdrawal, sus17 pension, or limitation of duty-free treatment on 

18 the criteria and factors affecting eligibility de19 scribed in subsections (b) and (c) of such sec20 tion; and 

21 (B) take all available steps to facilitate 

22 continued duty-free treatment for products 

23 where the imposition of duties is likely to slow 

24 or reverse progress made toward meeting the 

25 criteria and factors described in subsections (b) 


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1 and (c) of such section or result in severe eco2 nomic harm to United States entities, particu3 larly small businesses; and 

4 (5) the United States Trade Representative 

5 should establish and maintain a process to mitigate 

6 the harm for products determined to meet the cri7 teria and factors described in subsections (b) and (c) 

8 of section 502 of the Trade Act of 1974, including 

9 exploring the feasibility of preserving duty-free eligi10 bility on a case-by-case basis for qualifying compa11 nies if the President decides to withdraw, suspend, 

12 or limit the application of the duty-free treatment 

13 accorded under title V of such Act. 

14 SEC. 3. MODIFICATION OF COMPETITIVE NEED LIMITATION 

15 PROVISIONS UNDER THE GENERALIZED SYS16 TEM OF PREFERENCES PROGRAM. 

17 (a) IN GENERAL.—Section 503 of the Trade Act of 

18 1974 (19 U.S.C. 2463) is amended— 

19 (1) in subsection (c)(2)— 

20 (A) in subparagraph (A)(ii)(II), by striking 

21 ‘‘$5,000,000’’ and inserting ‘‘an amount equal 

22 to 6.5 percent of such applicable amount’’; 

23 (B) in subparagraph (C)— 

24 (i) by striking ‘‘may, subject’’ and in25 serting ‘‘should, subject’’; and 


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1 (ii) by striking ‘‘the limitations in 

2 subparagraph (A)’’ and inserting ‘‘the limi3 tations in subparagraph (A) or (F)’’; 

4 (C) in subparagraph (F)— 

5 (i) in clause (i), by striking ‘‘may dis6 regard’’ and inserting ‘‘should disregard’’; 

7 and 

8 (ii) in clause (ii)(II), by striking 

9 ‘‘$500,000’’ and inserting ‘‘an amount 

10 equal to 6.5 percent of such applicable 

11 amount’’; and 

12 (D) by inserting after subparagraph (F) 

13 the following: 

14 ‘‘(G) CALCULATION OF LIMITATIONS.— 

15 There shall be counted against the limitations 

16 imposed under subparagraph (A) for any cal17 endar year only that value of any eligible article 

18 of a beneficiary developing country that entered 

19 duty-free under this title during such calendar 

20 year.’’; and 

21 (2) in subsection (d)(1), by striking ‘‘, before 

22 November 1 of the calendar year beginning after the 

23 calendar year for which a determination described in 

24 subsection (c)(2)(A) was made with respect to such 

25 eligible article,’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a)— 

3 (1) take effect on the date of the enactment of 

4 this Act; and 

5 (2) apply with respect to imports into the 

6 United States of eligible articles from beneficiary de7 veloping countries under title V of the Trade Act of 

8 1974 (19 U.S.C. 2461 et seq.) during the calendar 

9 year preceding the calendar year in which the first 

10 annual review is carried out under such title V after 

11 such date of enactment and each subsequent cal12 endar year. 

Æ 


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