II 

114TH CONGRESS 

1ST SESSION S. 340 

To make certain luggage and travel articles eligible for duty-free treatment 

under the Generalized System of Preferences, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 3, 2015 

Mr. BLUNT (for himself, Mrs. SHAHEEN, Mr. PORTMAN, Ms. AYOTTE, and 

Mr. MERKLEY) introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

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

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 ‘‘GSP Update for Pro5 duction Diversification and Trade Enhancement Act’’ or 

6 ‘‘GSP UPDATE Act’’. 

7 SEC. 2. FINDINGS. 

8 Congress makes the following findings: 


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1 (1) The Generalized System of Preferences 

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

3 2461 et seq.) was enacted to promote economic de4 velopment in developing and least-developed coun5 tries. 

6 (2) Many articles referred to as luggage or 

7 travel articles and classified under chapter 42 of the 

8 Harmonized Tariff Schedule of the United States 

9 may not be designated as eligible articles for pur10 poses of the Generalized System of Preferences. 

11 (3) Global trade and manufacturing dynamics 

12 have changed since the enactment of the Generalized 

13 System of Preferences in 1974, and many luggage 

14 and travel articles may no longer be import-sensitive 

15 to industries in the United States. 

16 (4) By removing certain luggage and travel ar17 ticles from the list of articles excluded from eligi18 bility under the Generalized System of Preferences, 

19 Congress is not changing rates in the Harmonized 

20 Tariff Schedule of the United States, but instead is 

21 allowing those articles access to the annual review 

22 process under the Generalized System of Pref23 erences, which relies on investigations and rec24 ommendations from the independent United States 


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1 International Trade Commission, among other agen2 cies of the United States Government. 

3 (5) As of 2013, 61 of the 122 countries des4 ignated as beneficiary developing countries under the 

5 Generalized System of Preferences export articles 

6 classified under heading 4202 of the Harmonized 

7 Tariff Schedule of the United States to the United 

8 States. Sixteen of those countries have been des9 ignated as least-developed beneficiary developing 

10 countries for purposes of the Generalized System of 

11 Preferences. 

12 (6) As of 2013, the People’s Republic of China 

13 has a nearly 70 percent share of the market for cer14 tain luggage and travel articles being imported into 

15 the United States. This dominance leaves little room 

16 for competition from smaller developing countries. 

17 For example, countries designated as beneficiary de18 veloping countries under the Generalized System of 

19 Preferences account for only 5 percent of imports of 

20 those articles into the United States. 

21 (7) The provision of duty-free treatment under 

22 the Generalized System of Preferences for certain 

23 luggage and travel articles imported into the United 

24 States may result in a shift in the production of 

25 those articles from China to countries designated as 


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1 beneficiary developing countries or least-developed 

2 beneficiary developing countries under the General3 ized System of Preferences. 

4 SEC. 3. ELIGIBILITY OF CERTAIN LUGGAGE AND TRAVEL 

5 ARTICLES FOR DUTY-FREE TREATMENT 

6 UNDER THE GENERALIZED SYSTEM OF PREF7 ERENCES. 

8 Section 503(b) of the Trade Act of 1974 (19 U.S.C. 

9 2463(b)) is amended— 

10 (1) in paragraph (1)— 

11 (A) in subparagraph (A), by striking 

12 ‘‘paragraph (4),’’ and inserting ‘‘paragraphs (4) 

13 and (5),’’; and 

14 (B) in subparagraph (E), by striking 

15 ‘‘Footwear,’’ and inserting ‘‘Except as provided 

16 in paragraph (5), footwear,’’; and 

17 (2) by adding at the end the following: 

18 ‘‘(5) CERTAIN LUGGAGE AND TRAVEL ARTI19 CLES.—Notwithstanding subparagraph (A) or (E) of 

20 paragraph (1), the President may designate the fol21 lowing as eligible articles under subsection (a): 

22 ‘‘(A) Articles classifiable under subheading 

23 4202.11.00, 4202.12.40, 4202.21.60, 

24 4202.21.90, 4202.22.15, 4202.22.45, 

25 4202.31.60, 4202.32.40, 4202.32.80, 


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1 4202.92.15, 4202.92.20, 4202.92.45, or 

2 4202.99.90 of the Harmonized Tariff Schedule 

3 of the United States. 

4 ‘‘(B) Articles classifiable under statistical 

5 reporting number 4202.12.2020, 4202.12.2050, 

6 4202.12.8030, 4202.12.8070, 4202.22.8050, 

7 4202.32.9550, 4202.32.9560, 4202.91.0030, 

8 4202.91.0090, 4202.92.3020, 4202.92.3031, 

9 4202.92.3091, 4202.92.9026, or 4202.92.9060 

10 of the Harmonized Tariff Schedule of the 

11 United States.’’. 

Æ 


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