Details of the House- and Senate-Passed Conference Version of Miscellaneous Trade Bill (Part VII)
On November 19, 2004, the Senate passed the conference version of H.R. 1047, the Miscellaneous Trade and Technical Corrections Act of 2004. The House passed the conference version of H.R. 1047 on October 8, 2004. The conference version of H.R. 1047 has now been cleared for the White House.
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This is Part VII of a multi-part series of summaries on the conference version of H.R. 1047 and highlights (1) the retroactive reinstatement of reduced duty treatment for certain Andean handbags, luggage, flat goods, work gloves, and leather wearing apparel; (2) Generalized System of Preferences (GSP) duty-free treatment for certain carpets or rugs; and (3) the addition of Harmonized Tariff Schedule (HTS) subheadings to the CBERA footwear exclusion.
Retroactive Reinstatement of Reduced Duty Treatment for Certain Andean Handbags, Luggage, Flat Goods, Work Gloves, and Leather Wearing Apparel
The conference version would correct a mistake in the Trade Act of 2002 that inadvertently and temporarily raised duties on Andean originating handbags, luggage, flat goods, work gloves, and leather wearing apparel under the Andean Trade Preferences Act (ATPA), as amended.
Specifically, the conference version states that "with respect to any article described in section 204(b)(1)(D) of the Andean Trade Preference Act (as amended by section 3103(a)(2) of the Trade Act of 2002) for which the President proclaims duty-free treatment pursuant to section 204(b)(1) of such Act, the entry of any such article on or after August 6, 2002, and before the date on which the President so proclaims duty-free treatment for such article shall be subject to the rate of duty applicable on August 5, 2002."
(As used in this provision, the term "entry" includes a withdrawal from warehouse for consumption.)
Eligible entries shall be liquidated or reliquidated as if the reduced duty treatment applied, and any excess duties paid with respect to such entry shall be refunded, if a request is filed with U.S. Customs and Border Protection (CBP) within 180 days after the date of enactment of H.R. 1047, and such request contains sufficient information to enable CBP to (1) locate the entry; or (2) reconstruct the entry if it cannot be located.
GSP Duty-Free Treatment for Certain Carpets or Rugs
The conference version would amend 19 USC 2463(b) in order to add a new paragraph (4) that would allow the President to designate as GSP eligible carpets or rugs which are hand-loomed, hand-woven, hand-hooked, hand-tufted, or hand-knotted, and classified under HTS 5701.10.16, 5701.10.40, 5701.90.10, 5701.90.20, 5702.10.90, 5702.42.20, 5702.49.10, 5702.51.20, 5702.91.30, 5702.92.00, 5702.99.10, 5703.10.00, 5703.20.10, or 5703.30.00.
(The Senate Finance Committee has previously stated that the primary beneficiaries of this measure would be Afghanistan and Pakistan.)
HTS Subheadings Would be Added to CBERA Footwear Exclusion, Etc.
The conference version of H.R. 1047 would amend 19 USC 2703(b) by adding a list of the 21 8-digit HTS subheadings for footwear which are not eligible for Caribbean Basin Economic Recovery Act (CBERA) duty-free treatment.
Four of these footwear HTS subheadings would still be eligible for CBTPA duty-free treatment. The conference version would also amend 19 USC 2703(b)(3)(A) by adding a new clause stating that footwear provided for in HTS 6403.59.60, 6403.91.30, 6403.99.60, or 6403.99.90 would be eligible for CBTPA duty-free treatment if certain requirements are met.1
(1 the article of footwear must be the growth, product, or manufacture of a CBTPA beneficiary country; and otherwise meet the requirements of 19 USC 2703(a), except that in applying 19 USC 2703(a), "CBTPA beneficiary country" shall be substituted for "beneficiary country" each place it appears.)
(However, footwear in these four HTS subheadings from CBTPA beneficiary countries is already eligible for the NAFTA-equivalent duty treatment accorded to such goods that are the product of Mexico, which became duty-free effective January 1, 2001. See ITT's Online Archives or 01/24/01 news, 01012330, for BP summary.)
See ITT's Online Archives or 10/19/04, 10/20/04, 10/22/04, 11/01/04, 11/02/04, and 11/30/04 news, 04101905, 04102005, 04102225, 04110115, 04110225, and 04113020, for Parts I-VI.
Legislative text of the Conference version of H.R. 1047 available at http://waysandmeans.house.gov/media/pdf/hr1047/HR1047confreptlegtext.pdf.
Joint explanatory statement of the conference committee regarding H.R. 1047 available at
http://waysandmeans.house.gov/media/pdf/hr1047/hr1047confreptexplanstatement.pdf.