II 110th CONGRESS 1st Session S. 2372 IN THE SENATE OF THE UNITED STATES November 15, 2007 Mr. Smith (for himself and Ms. Cantwell) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Harmonized Tariff Schedule of the United States to modify the tariffs on certain footwear.

1.

Short title

This Act may be cited as the Affordable Footwear Act of 2007.

2.

Findings

Congress finds the following: (1)Average collected duties on imported footwear are among the highest of any product sector, totaling more than $1,800,000,000 during 2006. (2)Duty rates on imported footwear are among the highest imposed by the United States Government, with some as high as 67.5 percent ad valorem. (3)The duties currently imposed by the United States were set in an era during which high rates of duty were intended to protect production of footwear in the United States. (4)Production of footwear in the United States has nonetheless dwindled to below 2 percent of the total United States market, and is concentrated in 20 distinct product groupings. (5)Low and moderate income families spend a larger share of their disposable income on footwear. Any additional costs added to the purchase price of footwear constitute a disproportionate burden on these households. (6)The United States collected $6.21 in duty on imported footwear for every $1 earned by United States footwear workers during 2006. By comparison, the United States collected 6 cents and 1 cent, respectively, in duties for each dollar earned in the automotive and sugar sectors.

3.

Sense of Congress

It is the sense of Congress that— (1)the elimination of duty on the importation of certain footwear articles would provide significant benefit to United States consumers, particularly lower-income families; (2)there is no production in the United States of many footwear articles; and (3)the elimination of duties on such products will not negatively affect manufacturing in the United States.

4.

Elimination of duties on certain footwear

(a)

Definitions

The Additional U.S. Notes to chapter 64 of the Harmonized Tariff Schedule of the United States are amended— (1)in note 1— (A)in paragraph (b), by striking the period and inserting a semicolon; and (B)by adding at the end the following: (c)The term footwear for men covers footwear of American sizes 6 and larger for males and does not include footwear commonly worn by both sexes; and (d)The term footwear for women covers footwear of American sizes 4 and larger whether for females or of types commonly worn by both sexes. ; and (2)by adding at the end the following: 5.For the purposes of this chapter: (a)The term work footwear encompasses, in addition to footwear having a metal toe-cap, specialized footwear for men or for women that: (i)has outer soles of rubber or plastics; (ii)is of a kind designed for use by persons employed in occupations, such as those related to the agricultural, construction, industrial, public safety, and transportation sectors, that are not conducive to the use of casual, dress, or similar lightweight footwear; and (iii)has special features to protect against hazards in the workplace (such as resistance to chemicals, compression, grease, oil, penetration, slippage, or static build-up). (b)The term work footwear does not cover: (i)sports footwear, tennis shoes, basketball shoes, gym shoes, training shoes, and the like; (ii)footwear designed to be worn over other footwear; (iii)footwear with open toes or open heels; or (iv)footwear, except footwear of heading 6401, of the slip-on type or other footwear that is held to the foot without the use of laces or a combination of laces and hooks or other fasteners. 6.For the purposes of this chapter, the term house slippers means footwear of the slip-on type intended solely for casual indoor use. The term house slippers includes: (i)Footwear with outer soles not over 3.5 mm in thickness, consisting of cellular rubber, non-grain leather, or textile material; (ii)Footwear with outer soles not over 2 mm in thickness consisting of polyvinyl chloride, whether or not backed; and (iii)Footwear which, when measured at the ball of the foot, has sole components (including any inner and mid-soles) with a combined thickness not over 8 mm as measured from the outer surface of the uppermost sole component to the bottom surface of the outer sole and which, when measured in the same manner at the area of the heel, has a thickness equal to or less than that at the ball of the foot. 7.For purposes of subheadings 6402.91.52, 6402.99.35 and 6404.19.21, the dollar amounts specified as the minimum value of a good shall be as follows: In calendar years 2008 through 2013, $20/pair. In calendar years 2014 through 2019, $23/pair. In calendar years 2020 through 2026, $26/pair. In calendar years 2027 and thereafter, $29/pair. . (b)

Modification of tariffs on certain footwear of rubber or plastics

(1)Heading 6402 of the Harmonized Tariff Schedule of the United States is amended as follows: (A)By striking subheading 6402.19.15, and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6402.19.05: Other: 6402.19.17For women5.1%Free (AU, CA, CL, D, E, IL, J+, JO, MA, MX, P, R 1.5% (SG)35% 6402.19.19OtherFree35% . (B)In subheading 6402.91.05, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column. (C)In subheading 6402.91.16, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column. (D)By striking subheading 6402.91.40 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6402.91.40, as in effect on the day before the date of the enactment of this Act: Footwear having uppers of which over 90 percent of the external surface are (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics except (1) footwear having a foxing or foxing-like band applied or molded at the sole and overlapping the upper and (2) footwear (other than footwear having uppers which form a point 3 cm above the top of the outer sole and are entirely of non-molded construction formed by sewing the parts together and having exposed on the outer surface a substantial portion of the functional stitching) designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather: 6402.91.42Work footwear6%Free (AU, CA, CL, D, E, IL, J+, JO, MA, MX, P, R) 1.5% (SG)35% 6402.91.43OtherFree35% . (E)By striking subheading 6402.91.50 and inserting the following, with the superior text having the same degree of indentation as the superior text to subheading 6402.91.60: Footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather: 6402.91.52Footwear, except vulcanized footwear and footwear with waterproof molded bottoms, including bottoms comprising an outer sole and all or part of the upper, where protection against water is imparted by the use of a coated or laminated fabric, designed to be used in lieu of, but not over, other footwear, for men or women the height of which does not exceed 8 inches (20.32 cm), for other persons the height of which does not exceed 7 inches (17.72 cm), valued over the dollar amount specified in additional U.S. note 7 to this chapterFree66% 6402.91.54Other37.5%Free (CA, D, IL) 2.5% (MX, R) 7.2% (P) 11.2% (JO) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL) 30% (BH)66% . (F)In each of the following subheadings, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column: (i)Subheading 6402.91.90. (ii)Subheading 6402.99.04. (iii)Subheading 6402.99.12. (iv)Subheading 6402.99.31. (G)By striking subheading 6402.99.33 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6402.99.40: Footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather: 6402.99.35Footwear, except vulcanized footwear and footwear with waterproof molded bottoms, including bottoms comprising an outer sole and all or part of the upper, where protection against water is imparted by the use of a coated or laminated textile fabric, designed to be used in lieu of, but not over, other footwear, valued over the dollar limit specified in additional U.S. note 7 to this chapterFree66% 6402.99.37Other37.5%Free (CA, D, IL) 2.5% (MX, R) 7.2% (P) 11.2% (JO) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL) 30% (BH)66% . (H)In each of the following subheadings, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column: (i)Subheading 6402.99.40. (ii)Subheading 6402.99.60. (iii)Subheading 6402.99.70. (2)Heading 6403 of the Harmonized Tariff Schedule of the United States is amended as follows: (A)By striking subheading 6403.40.30 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.40.30, as in effect on the day before the date of the enactment of this Act: Welt footwear: 6403.40.35With pigskin uppersFree20% 6403.40.38Other5%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R, SG)20% . (B)By striking subheading 6403.51.90 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.51.90, as in effect on the day before the date of the enactment of this Act: For other persons: 6403.51.92For women10%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6403.51.94OtherFree20% . (C)By striking subheading 6403.59.15 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.59.10: Turn or turned footwear: 6403.59.17For men or women2.5%Free (AU, BH, CA, CL, K, IL, J+, JO, MA, MX, P, R, SG)10% 6403.59.18OtherFree10% . (D)In subheading 6403.91.60, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column. (E)By striking subheading 6403.91.90 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.91.60: For other persons: 6403.91.92Work footwear10%Free (AU, BH, CA,CL, K, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6403.91.93OtherFree20% . (F)By striking subheading 6403.99.60 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.99.40: For men, youths and boys: 6403.99.62House slippers8.5%Free (AU, CA, BH, CL, K, IL, J+, JO, MA, MX, P, R, SG)20% 6403.99.64Work footwearFree20% 6403.99.66Other for men8.5%Free (AU, CA, BH, CL, K, IL, J+, JO, MA, MX, P, R, SG)20% 6403.99.68OtherFree20% . (G)By striking subheading 6403.99.75 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6403.99.75, as in effect on the day before the date of the enactment of this Act: Valued not over $2.50/pair: 6403.99.77House slippersFree20% 6403.99.78Other7%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R, SG)20% . (H)By striking subheading 6403.99.90 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6405.99.90, as in effect on the day before the date of the enactment of this Act: Valued over $2.50 per pair: 6403.99.91House slippers10%Free (AU, BH, CA, CL, D, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6403.99.93Work footwearFree20% 6403.99.95Other for women10%Free (AU, BH, CA, CL, D, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6403.99.97OtherFree20% . (3)Heading 6404 of the Harmonized Tariff Schedule of the United States is amended as follows: (A)In each of the following subheadings, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column: (i)Subheading 6404.11.20. (ii)Subheading 6404.11.40. (iii)Subheading 6404.11.50. (iv)Subheading 6404.11.60. (v)Subheading 6404.11.70. (B)By striking subheading 6404.11.80 and inserting the following, with the superior text having the same degree of indentation as the superior text to subheading 6404.11.60: Valued over $6.50 but not over $12/pair: 6404.11.81Covering the ankleFree$1.50/pr. + 35% 6404.11.83Tennis shoes, basketball shoes, gym shoes, training shoes and the like, for men or for women90¢/pair + 20%Free (AU, BH, CA, CL, D, E, IL, J+, MA, P) 6¢/pr. + 1.3% (MX, R) 27¢/pr + 6% (JO) 54¢/pr. + 12% (SG)$1.50/pr. + 35% 6404.11.85OtherFree$1.50/pr. + 35% . (C)By striking subheading 6404.11.90 and inserting the following, with the superior text having the same degree of indentation as the superior text to subheading 6404.11.60: Valued over $12/pair: 6404.11.91Covering the ankleFree35% 6404.11.93Tennis shoes, basketball shoes, gym shoes, training shoes and the like for men or for women 20%Free (CA, D, IL, JO, MX, P, R) 12% (SG) 14% (AU) 15.5% (MA) 16% (CL) 16% (BH) 35% 6404.11.95OtherFree 35% . (D)By striking subheading 6404.19.20 and inserting the following, with the article description having the same degree of indentation as the article description for subheading 6404.19.20, as in effect on the day before the date fo the enactment of this Act: Footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather: 6404.19.21Footwear, except vulcanized footwear and footwear with waterproof molded bottoms, including bottoms comprising an outer sole and all or part of the upper, where protection against water is imparted by the use of a coated or laminated textile fabric, designed to be used in lieu of, but not over, other footwear, for men or women the height of which does not exceed 8 inches (20.32 cm), for other persons the height of which does not exceed 7 inches (17.72 cm), valued over the dollar amount specified in additional U.S. note 7 to this chapterFree66% 6404.19.23Other37.5%Free (CA, D, IL) 2.5% (MX, R)7.2% (P) 11.2% (JO) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL) 30% (BH)66% . (E)In each of the following subheadings, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column: (i)Subheading 6404.19.25. (ii)Subheading 6404.19.30. (iii)Subheading 6404.19.35. (iv)Subheading 6404.19.40. (v)Subheading 6404.19.50. (vi)Subheading 6404.19.60. (vii)Subheading 6404.19.70. (viii)Subheading 6404.19.80. (ix)Subheading 6404.19.90. (x)Subheading 6404.20.20. (xi)Subheading 6404.20.40. (xii)Subheading 6404.20.60. (4)Heading 6405 of the Harmonized Tariff Schedule of the United States is amended as follows: (A)By striking subheading 6405.10.00 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6405.10.00, as in effect on the day before the date of enactment of the Act: With uppers of leather or composition leather: 6405.10.00Footwear for men8.5%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6405.13.00Tennis shoes, basketball shoes, gym shoes, training shoes and the like, for women10%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R) 5% (SG)20% 6405.15.00OtherFree20% . (B)By striking subheading 6405.20.30 and inserting the following, with the superior text having the same degree of indentation as the article description for subheading 6405.20, as in effect on the day before the date of enactment of the Act: With uppers of textile materials: 6405.20.10Footwear with outer soles of textile materials designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather37.5%Free (CA, D, IL) 2.5% (MX, R) 7.2% (P) 11.2% (JO) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL)30% (BH)66% 6405.20.20Tennis shoes, basketball shoes, gym shoes, training shoes and the like, with outer soles of textile materials, for men or women, valued over $6.50 but not over $12/pair90¢/pr. + 20%Free (AU, BH, CA, CL, D, E, IL, J+, MX, P)6¢/pr. + 1.3% (MX, R) 27¢/pr. + 6% (JO) 54¢/pr. + 12% (SG)$1.58/pr. + 35% 6405.20.23Tennis shoes, basketball shoes, gym shoes, training shoes and the like, with outer soles of textile materials, for men or women, valued over $12/pair20%Free (CA, D, IL, JO, MX, P, R) 12% (SG)14% (AU) 15.5% (MA) 16% (CL) 16% (BH)35% 6405.20.25With uppers of vegetable fibersFree35% . (C)In subheading 6405.20.90, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column. (D)By inserting the following new subheadings in numerical sequence after subheading 6405.90.20, with the superior texts having the same degree of indentation as the article description for subheading 6405.90.20, as in effect on the day before the date of enactment of the Act: Waterproof footwear with uppers of rubber or plastics and outer soles of textile materials the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes: 6405.90.25With outer soles of felt12.5%Free (AU, BH, CA, CL, D, E, IL, J+, JO, MA, MX, P, R) 6.2% (SG)35% 6405.90.27Other37.5%Free (CA, D, IL) 2.5% (MX, R) 7.2% (P)11.2% (JP) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL) 30% (BH)75% 6405.90.29Footwear with uppers of rubber or plastics and outer soles of textile materials designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or chemicals or cold or inclement weather37.5%Free (CA, D, IL) 2.5% (MX, R) 7.2% (P)11.2% (JP) 22.5% (SG) 26.2% (AU) 29.1% (MA) 30% (CL) 30% (BH)66% Footwear with uppers of rubber or plastics and outer soles of textile materials and incorporating a protective metal toe cap: Covering the ankle: 6405.90.33Valued over $3 but not over $6.50/pair90¢/pr. + 37.5%Free (CA, D, IL) 6¢/pr. + 2.5% (MX, R) 17.2¢/pr. + 7.2% (P) 27¢/pr. + 11.2% (JO) 54¢/pr. + 22.5% (SG) 63¢/pr. + 26.2% (AU) 69.9¢/pr. + 29.1% (MA) 72¢/pr. + 30% (CL) 72%/pr. + 30% (BH)$1.58/pr. + 66% 6405.90.35Valued over $6.50 but not over $12/pair90¢/pr. + 20%Free (CA, D, IL) 6¢/pr. + 1.3% (MX, R) 17.2¢/pr. + 3.8% (P) 27¢/pr. + 6% (JO) 54¢/pr. + 12% (SG) 63¢/pr. + 14% (AU) 69.9¢/pr. + 14% (MA) 72¢/pr. + 16% (CL) 72¢/pr. + 16% (BH)$1.58/pr. + 35% 6405.90.36Valued over $12/pair20%Free (AU, BH, CA, CL, D, IL, J+, JO, MA, MX, P, R) 12% (SG)35% Other: 6405.90.37Valued over $3 but not over $6.50/pair90¢/pr. + 37.5%Free (CA, D, IL) 6¢/pr. + 2.5% (MX, R) 17.2¢/pr. + 7.2% (P) 27¢/pr. + 11.2% (JO) 54¢/pr. + 22.5% (SG) 63¢/pr. + 26.2% (AU) 69.9¢/pr. + 29.1% (MA) 72¢/pr. + 30% (CL) 72¢/pr. + 30% (BH)$1.58/pr. + 66% 6405.90.39Valued over $6.50 but not over $12/pair90¢/pr. + 20%Free (CA, D, IL) 6¢/pr. + 1.3% (MX, R) 17.2¢/pr. + 3.8% (P) 27¢/pr. + 6% (JO) 54¢/pr. + 12% (SG) 63¢/pr. + 14% (AU) 69.9¢/pr. + 15.5% (MA) 72¢/pr. + 16% (CL) 72¢/pr. + 16% (BH)$1.58/pr. + 35% 6405.90.40Valued over $12/pair20%Free (AU, BH, CA, CL, D, IL, J+, JO, MA, MX, P, R) 12% (SG)35% Other footwear with uppers of rubber or plastics and outer soles of textile materials: Covering the ankle: 6405.90.43Valued over $3 but not over $6.50/pair90¢/pr. + 37.5%Free (AU, BH, CA, CL, D, E, IL, J+, MA, MX, P, R)27¢/pr. + 11.2% (JO) 54¢/pr. + 22.5% (SG)$1.58/pr. + 66% 6405.90.47Valued over $6.50 but not over $12/pair90¢/pr. + 20%Free (CA, D, IL) 6¢/pr. + 1.3% (MX, R) 17.2¢/pr. + 3.8% (P) 27¢/pr. + 6% (JO) 54¢/pr. + 12% (SG) 63¢/pr. + 14% (AU) 69.9¢/pr. + 15.5% (MA) 72¢/pr. + 16% (CL) 72¢/pr. + 16% (BH)$1.58/pr. + 35% 6405.90.48Valued over $12 pair20%Free (CA, D, IL, JO) 1.3% (MX, R) 3.8% (P) 12% (SG) 14% (AU) 15.5% (MA) 16% (CL) 16% (BH)35% Other: 6405.90.51Valued over $3.00 but not over $6.50/pair90¢/pr. + 37.5%Free (AU, BH, CA, CL, D, E, IL, J+, MA, MX, P, R) 27¢/pr. + 11.2% (JO) 54¢/pr. + 22.5% (SG)$1.58/pr. + 66% 6405.90.53Valued over $6.50 but not over $12/pair90¢/pr. + 20%Free (CA, D, IL) 6¢/pr. + 1.3% (MX, R) 17.2¢/pr. + 3.8% (P) 27¢/pr. + 6% (JO) 54¢/pr. + 12% (SG) 63¢/pr. + 14% (AU) 69.9¢/pr. + 15.5% (MA) 72¢/pr. + 16% (CL) 72¢/pr. + 16% (BH)$1.58/pr. + 35% 6405.90.55Valued over $12/pair20%Free (CA, D, IL, JO) 1.3% (MX, R) 3.8% (P) 12% (SG) 14% (AU) 15.5% (MA) 16% (CL) 16% (BH)35% . (E)In subheading 6405.90.90, by striking the matter in the general and special rate of duty columns and inserting Free in the general rate of duty column.

5.

Haiti relief enhancement

Section 213A of the Caribbean Basic Economic Recovery Act (19 U.S.C. 2703a) is amended— (1)by redesignating subsections (d) through (f) as (e) through (g), respectively; (2)by inserting the following after subsection (c): (d)

Special rule for footwear

(1)

In general

Footwear that is the product or manufacture of Haiti and is imported directly from Haiti into the customs territory of the United States shall be accorded tariff treatment identical to the tariff treatment that is accorded under the Dominican Republic-Central American-United States Free Trade Agreement, as implemented by the United States, to footwear described in the same 8-digit subheading of the Harmonized Tariff Schedule of the United States. (2)

Requirement

Footwear qualifies for the treatment provided for under paragraph (1) if it satisfies the applicable rule of origin set out in Article 4.1 of the Dominican Republic-Central American-United States Free Trade Agreement. ; (3)in subsection (b)— (A)in paragraph (1), by striking (d) and (e) and inserting (e) and (f); and (B)in paragraph (5), by striking (d) and (e) and inserting (e) and (f); and (4)in subsection (d)(1) (as redesignated by paragraph (1) of this subsection), by striking (d) and inserting (e).