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. 
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 ‘‘CNL Update Act’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) United States trade capacity building agen-
cies should work with, and provide appropriate re-
sources to, beneficiary developing countries under 
the Generalized System of Preferences program 
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under title V of the Trade Act of 1974 (19 U.S.C. 
2461 et seq.) to assist such countries in meeting the 
eligibility criteria under such program; 
(2) the goal of such eligibility criteria is to raise 
standards and improve the well-being of individuals 
in the beneficiary developing countries through trade 
and economic development; 
(3) trade policies cannot create a race to the 
top if punitive actions treat good and bad actors 
alike; 
(4) in determining appropriate actions to take 
under subsection (d) of section 502 of the Trade Act 
of 1974 (19 U.S.C. 2462(d)), the President should, 
in a manner consistent with statutory require-
ments— 
(A) consider the impact of withdrawal, sus-
pension, or limitation of duty-free treatment on 
the criteria and factors affecting eligibility de-
scribed in subsections (b) and (c) of such sec-
tion; and 
(B) take all available steps to facilitate 
continued duty-free treatment for products 
where the imposition of duties is likely to slow 
or reverse progress made toward meeting the 
criteria and factors described in subsections (b) 
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and (c) of such section or result in severe eco-
nomic harm to United States entities, particu-
larly small businesses; and 
(5) the United States Trade Representative 
should establish and maintain a process to mitigate 
the harm for products determined to meet the cri-
teria and factors described in subsections (b) and (c) 
of section 502 of the Trade Act of 1974, including 
exploring the feasibility of preserving duty-free eligi-
bility on a case-by-case basis for qualifying compa-
nies if the President decides to withdraw, suspend, 
or limit the application of the duty-free treatment 
accorded under title V of such Act. 
SEC. 3. MODIFICATION OF COMPETITIVE NEED LIMITATION 
PROVISIONS UNDER THE GENERALIZED SYS-
TEM OF PREFERENCES PROGRAM. 
(a) IN GENERAL.—Section 503 of the Trade Act of 
1974 (19 U.S.C. 2463) is amended— 
(1) in subsection (c)(2)— 
(A) in subparagraph (A)(ii)(II), by striking 
‘‘$5,000,000’’ and inserting ‘‘an amount equal 
to 6.5 percent of such applicable amount’’; 
(B) in subparagraph (C)— 
(i) by striking ‘‘may, subject’’ and in-
serting ‘‘should, subject’’; and 
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(ii) by striking ‘‘the limitations in 
subparagraph (A)’’ and inserting ‘‘the limi-
tations in subparagraph (A) or (F)’’; 
(C) in subparagraph (F)— 
(i) in clause (i), by striking ‘‘may dis-
regard’’ and inserting ‘‘should disregard’’; 
and 
(ii) in clause (ii)(II), by striking 
‘‘$500,000’’ and inserting ‘‘an amount 
equal to 6.5 percent of such applicable 
amount’’; and 
(D) by inserting after subparagraph (F) 
the following: 
‘‘(G) CALCULATION
OF
LIMITATIONS.— 
There shall be counted against the limitations 
imposed under subparagraph (A) for any cal-
endar year only that value of any eligible article 
of a beneficiary developing country that entered 
duty-free under this title during such calendar 
year.’’; and 
(2) in subsection (d)(1), by striking ‘‘, before 
November 1 of the calendar year beginning after the 
calendar year for which a determination described in 
subsection (c)(2)(A) was made with respect to such 
eligible article,’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a)— 
(1) take effect on the date of the enactment of 
this Act; and 
(2) apply with respect to imports into the 
United States of eligible articles from beneficiary de-
veloping countries under title V of the Trade Act of 
1974 (19 U.S.C. 2461 et seq.) during the calendar 
year preceding the calendar year in which the first 
annual review is carried out under such title V after 
such date of enactment and each subsequent cal-
endar year. 
Æ 
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