House Ways and Means Approves Bill to Extend ATPA/ATPDEA to December 31, 2008
On February 14, 2008, the House Ways and Means Committee approved an amendment in the nature of a substitute to H.R. 5264, in order to extend the Andean Trade Preference Act, as amended by the Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA), for another eight months, from March 1, 2008 to December 31, 2008.
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This version of H.R. 5264 would similarly extend the ATPA/ATPDEA regional tariff preference level (TPL) for certain apparel1.
House/Senate Trade Leadership Support Short Term Extension of ATPA/ATPDEA
According to House Ways and Means Committee sources, passing this bill is a priority for Committee Chairman Rangel as the ATPA/ATPDEA (and its TPL) is scheduled to expire on February 29, 2008. A committee press release indicates that the committee-version of this measure is expected to be considered by the full House during the week of February 25, 2008.
In addition, sources have stated that the leadership of the Senate Finance Committee is supportive of an extension of the ATPA/ATPDEA.
House Bill was Introduced as a Larger Measure, but is Now Limited to ATPA/ATPDEA
H.R. 5264 was introduced in the House of Representatives on February 7, 2008 as a larger measure to, among other things, extend ATPA/ATPDEA and additional trade preference programs for a longer period of time; however the shorter version as approved by the House Ways and Means Committee is expected to go forward. According to Chairman Rangel, a shorter extension bill limited to the ATPA/ATPDEA will "accommodate the range of opinions on the issue of renewal."
(As introduced, H.R. 5264 had provisions to extend to September 30, 2010 three trade preference programs: the ATPA/ATPDEA, the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), and the Generalized System of Preferences (GSP), all of which expire this year. CBTPA expires on September 30, 2008, while GSP expires on December 31, 2008.
H.R. 5264 as introduced also had provisions to place limits on the President's new authority to revoke waivers of GSP competitive need limitations (CNLs). The President had exercised such authority in June 2007 when he revoked GSP benefits for India and Thailand gold jewelry under HTS 7113.19.50, among others. Provisions to provide for their possible reinstatement of GSP benefits were also in the introduced version of the bill.
H.R. 5264 as introduced additionally had provisions to remove the "abundant supply" provisions of the African Growth and Opportunity Act (AGOA) which are currently limited to denim, and to add Mauritius as a lesser developed AGOA beneficiary country.)
1The current duty-free ATPDEA regional TPL is for apparel sewn or otherwise assembled in one or more ATPDEA beneficiary countries from fabrics, fabric components formed, or components knit-to-shape from ATPDEA/U.S. yarns etc., as specified in Harmonized Tariff Schedule (HTS) 9821.11.25.
(See ITT's Online Archives or 01/29/08 news, 08012907, for latest BP reminder of ATPA/ATPDEA's scheduled expiration on February 29, 2008 unless extended by law.
See ITT's Online Archives or 07/06/07 news, 07070610, for BP summary of P.L. 110-42 extending ATPA/ATPDEA to February 29, 2008.
See ITT's Online Archives or 12/28/07 news, 07122820, for BP summary of an ITC investigation on economic growth and development in the Caribbean region due to the upcoming expiration of the CBTPA.
See ITT's Online Archives or 07/02/07 news, 07070205, for BP summary of Presidential Proclamation 8157, which among other things, revoked the GSP status for certain India and Thailand gold jewelry due to the new CNL rules.
See ITT's Online Archives or 12/20/06 news, 06122205, for Part I of a BP summary of H.R. 6111 (which became Public Law 109 - 432) that amended the CNL waiver rules, among other things.)
House Ways and Means press release on amended version of H.R. 5264 (dated 02/14/08) available at http://waysandmeans.house.gov/news.asp?formmode=release&id=624.
Amended version of H.R. 5264 as approved by House Ways and Means on February 14, 2008 available at http://waysandmeans.house.gov/media/pdf/110/Chrmnmark.pdf
H.R. 5264 as originally introduced on February 7, 2008 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h5264ih.txt.pdf