I 111th CONGRESS 2d Session H. R. 5940 IN THE HOUSE OF REPRESENTATIVES July 29, 2010 Mr. Aderholt introduced the following bill; which was referred to the Committee on Ways and Means A BILL To remove preferential trade treatment for certain textile articles.

1.

Short title

This Act may be cited as the Save U.S. Manufacturing and Jobs Act.

2.

Congressional findings

Congress finds the following: (1)Congress should enact measures to save and create jobs in the United States, which has suffered the worst recession since World War II. (2)United States production of certain sleeping bags is under immediate threat due to preferential trade terms afforded to foreign manufacturers under the Generalized System of Preferences (GSP) program under the Trade Act of 1974. (3)Certain sleeping bags imported from countries eligible for duty-free trade benefits under the GSP program have increased in a short period of time, from less than one percent in 2009 to more than seven percent by April 2010, and will continue to increase dramatically, given recent trends. (4)The production of sleeping bags in the United States supports a domestic supply chain of inputs and component parts. (5)Sleeping bags made in beneficiary countries under the GSP program are made almost entirely with Chinese components. In most cases, the value of the sleeping bags is attributable predominantly to components made in a third country, particularly China. The sleeping bags are then assembled in free zones, meaning that no duty is paid on the Chinese fabrics and other raw materials entering those GSP beneficiary countries. Conversely, United States manufacturers must pay duty on any imported components. This creates an unfair advantage for foreign manufacturers. (6)Continuing preferential treatment for certain sleeping bags will lead to the loss of domestic textile jobs during a time of record unemployment. (7)Congress determined that certain textile products and other import sensitive items should not be provided preferential trade treatment under the GSP program. Sleeping bags are textile products, and, as such, should be exempt from GSP. (8)Reinstating the otherwise applicable most-favored-nation (MFN) tariff rate for sleeping bags will level the playing field for United States manufacturers.

3.

Removal of preferential treatment for certain textile articles

(a)

In general

Notwithstanding any provision of title V of the Trade Act of 1974 (relating to the generalized system of preferences), no product classifiable under subheading 9404.30.80 of the Harmonized Tariff Schedule of the United States is eligible for duty-free or other preferential treatment under such title V. (b)

Applicability

Subsection (a) applies to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.