I 
112TH CONGRESS 
2D SESSION 
H. R. 6307 
To make certain luggage and travel articles eligible for duty-free treatment 
under the Generalized System of Preferences, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 2, 2012 
Mr. CRENSHAW (for himself and Mr. SMITH of Nebraska) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To make certain luggage and travel articles eligible for duty- 
free treatment under the Generalized System of Pref-
erences, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘GSP Update for Pro-
duction Diversification and Trade Enhancement Act’’ or 
‘‘GSP UPDATE Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The Generalized System of Preferences 
under title V of the Trade Act of 1974 (19 U.S.C. 
VerDate Mar 15 2010 
02:22 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6307.IH
H6307
jbell on DSK7SPTVN1PROD with BILLS
2461 et seq.) was enacted to promote economic de-
velopment in developing and least-developed coun-
tries. 
(2) Many articles referred to as luggage or 
travel articles and classified under chapter 42 of the 
Harmonized Tariff Schedule of the United States 
may not be designated as eligible articles for pur-
poses of the Generalized System of Preferences. 
(3) Global trade and manufacturing dynamics 
have changed since the enactment of the Generalized 
System of Preferences in 1974, and many luggage 
and travel articles may no longer be import-sensitive 
to industries in the United States. 
(4) By removing certain luggage and travel ar-
ticles from the list of articles excluded from eligi-
bility under the Generalized System of Preferences, 
Congress is not changing rates in the Harmonized 
Tariff Schedule of the United States, but instead is 
allowing those articles access to the annual review 
process under the Generalized System of Pref-
erences, which relies on investigations and rec-
ommendations from the independent United States 
International Trade Commission, among other agen-
cies of the United States Government. 
VerDate Mar 15 2010 
02:22 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6307.IH
H6307
jbell on DSK7SPTVN1PROD with BILLS
(5) As of February 2012, 73 of the 132 coun-
tries designated as beneficiary developing countries 
under the Generalized System of Preferences export 
articles classified under heading 4202 of the Har-
monized Tariff Schedule of the United States to the 
United States. Twenty of those countries have been 
designated as least-developed beneficiary developing 
countries for purposes of the Generalized System of 
Preferences. 
(6) As of February 2012, the People’s Republic 
of China has a nearly 80 percent share of the mar-
ket for certain luggage and travel articles being im-
ported into the United States. This dominance 
leaves little room for competition from smaller devel-
oping countries. For example, countries designated 
as beneficiary developing countries under the Gener-
alized System of Preferences account for only 5 per-
cent of imports of those articles into the United 
States. 
(7) The provision of duty-free treatment under 
the Generalized System of Preferences for certain 
luggage and travel articles imported into the United 
States may result in a shift in the production of 
those articles from China to countries designated as 
beneficiary developing countries or least-developed 
VerDate Mar 15 2010 
02:22 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6307.IH
H6307
jbell on DSK7SPTVN1PROD with BILLS
beneficiary developing countries under the General-
ized System of Preferences. 
SEC. 3. ELIGIBILITY OF CERTAIN LUGGAGE AND TRAVEL 
ARTICLES 
FOR 
DUTY-FREE 
TREATMENT 
UNDER THE GENERALIZED SYSTEM OF PREF-
ERENCES. 
Section 503(b)(1) of the Trade Act of 1974 (19 
U.S.C. 2463(b)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘para-
graph (4)’’ and inserting ‘‘paragraphs (4) and (5)’’; 
(2) in subparagraph (E), by striking ‘‘Foot-
wear’’ and inserting ‘‘Except as provided in para-
graph (5), footwear’’; and 
(3) by adding at the end the following: 
‘‘(5) CERTAIN
LUGGAGE
AND
TRAVEL
ARTI-
CLES.—Notwithstanding subparagraph (A) or (E) of 
paragraph (1), the President may designate the fol-
lowing as eligible articles under subsection (a): 
‘‘(A) Articles classifiable under subheading 
4202.11.00, 
4202.12.40, 
4202.21.60, 
4202.21.90, 
4202.22.15, 
4202.22.45, 
4202.31.60, 
4202.32.40, 
4202.32.80, 
4202.92.15, 
4202.92.20, 
4202.92.45, 
or 
4202.99.90 of the Harmonized Tariff Schedule 
of the United States. 
VerDate Mar 15 2010 
02:22 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6307.IH
H6307
jbell on DSK7SPTVN1PROD with BILLS
‘‘(B) Articles classifiable under statistical 
reporting number 4202.12.2020, 4202.12.2050, 
4202.12.8030, 4202.12.8070, 4202.22.8050, 
4202.32.9550, 4202.32.9560, 4202.91.0030, 
4202.91.0090, 4202.92.3020, 4202.92.3031, 
4202.92.3091, 4202.92.9026, or 4202.92.9060 
of the Harmonized Tariff Schedule of the 
United States.’’. 
Æ 
VerDate Mar 15 2010 
02:22 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H6307.IH
H6307
jbell on DSK7SPTVN1PROD with BILLS