[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2032 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 2032

  To make certain footwear eligible for duty-free treatment under the 
       Generalized System of Preferences, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 30, 2017

  Ms. Cantwell (for herself and Mr. Roberts) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To make certain footwear eligible for duty-free treatment under the 
       Generalized System of Preferences, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``GSP Footwear Act of 2017''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Generalized System of Preferences under title V of 
        the Trade Act of 1974 (19 U.S.C. 2461 et seq.) was enacted to 
        promote economic development in developing and least-developed 
        countries by expanding trade opportunities.
            (2) Articles referred to as footwear and classified under 
        chapter 64 of the Harmonized Tariff Schedule of the United 
        States may not be designated as eligible articles for purposes 
        of the Generalized System of Preferences.
            (3) Global trade and manufacturing dynamics have evolved 
        since the enactment of the Generalized System of Preferences in 
        1974, and many footwear articles may no longer be import-
        sensitive to industries in the United States. Companies in the 
        United States benefit when sourcing options are increased, 
        which is key goal of the Generalized System of Preferences.
            (4) By removing certain footwear articles from the list of 
        articles excluded from eligibility under the Generalized System 
        of Preferences, Congress is not changing rates in the 
        Harmonized Tariff Schedule of the United States, but instead is 
        allowing those articles access to the annual review process 
        under the Generalized System of Preferences, which relies on 
        investigations and recommendations from the independent United 
        States International Trade Commission, among other agencies of 
        the United States Government.
            (5) As of 2015, 66 of the 124 countries designated as 
        beneficiary developing countries under the Generalized System 
        of Preferences export to the United States articles classified 
        under Chapter 64 of the Harmonized Tariff Schedule of the 
        United States. Fifteen of those countries have been designated 
        as least-developed beneficiary developing countries for 
        purposes of the Generalized System of Preferences.
            (6) Countries designated as beneficiary developing 
        countries under the Generalized System of Preferences account 
        for only 6.7 percent of imports of footwear into the United 
        States.
            (7) The provision of duty-free treatment under the 
        Generalized System of Preferences for certain footwear articles 
        imported into the United States may result in a shift in the 
        production of those articles to countries designated as 
        beneficiary developing countries or least-developed beneficiary 
        developing countries under the Generalized System of 
        Preferences, and thereby promote economic growth in such 
        countries.

SEC. 3. PURPOSE.

    The purpose of this Act is--
            (1) to provide duty-free treatment for certain footwear in 
        a manner that provides as broad a benefit to all participating 
        countries as possible; and
            (2) to give all countries eligible for such duty-free 
        treatment an opportunity to manufacture that footwear if a 
        review determines that such duty-free treatment is warranted.

SEC. 4. ELIGIBILITY OF CERTAIN FOOTWEAR FOR DUTY-FREE TREATMENT UNDER 
              THE GENERALIZED SYSTEM OF PREFERENCES.

    Section 503(b) of the Trade Act of 1974 (19 U.S.C. 2463(b)) is 
amended--
            (1) by designating the second paragraph (5) as paragraph 
        (6);
            (2) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``paragraphs 
                (4) and (5)'' and inserting ``paragraphs (4) and (6)''; 
                and
                    (B) in subparagraph (E), by striking ``in paragraph 
                (5)'' and inserting ``in paragraphs (6) and (7)''; and
            (3) by adding at the end the following:
            ``(7) Certain footwear.--Notwithstanding paragraph (1)(E), 
        the President may designate the following as eligible articles 
        under subsection (a):
                    ``(A) Articles classifiable under subheading 
                6402.91.42, 6402.99.21, 6402.99.31, 6402.99.32, 
                6404.11.79, 6404.19.79, or 6404.19.90 of the Harmonized 
                Tariff Schedule of the United States.
                    ``(B) Articles classifiable under statistical 
                reporting number 6404.11.8930, 6404.11.8960, 
                6404.11.8990, 6404.19.3715, 6404.19.3730, 6404.19.3760, 
                6404.19.5730, 6404.19.5760, 6404.19.7730, 6404.19.7760, 
                6404.19.8930, 6404.19.8960, or 6404.19.8990 of the 
                Harmonized Tariff Schedule of the United States, as 
                such statistical reporting numbers are in effect on the 
                date of the enactment of the GSP Footwear Act of 2017.
                    ``(C) The following footwear articles:
                            ``(i) Footwear for men or for women, with 
                        outer soles and uppers of rubber or plastics 
                        (except vulcanized footwear and footwear with 
                        waterproof molded or vulcanized bottoms, 
                        including bottoms comprising an outer sole and 
                        all or part of the upper, and except footwear 
                        designed to be protective that is incomplete in 
                        its condition as imported), valued at more than 
                        $25 per pair, whose height from the bottom of 
                        the outer sole to the top of the upper does not 
                        exceed 10 inches (25.4 centimeters), designed 
                        to be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection includes 
                        protection against water that is imparted by 
                        the use of a laminated textile fabric (provided 
                        for in subheading 6402.91.50 of the Harmonized 
                        Tariff Schedule of the United States).
                            ``(ii) Footwear for persons other than men 
                        or women, with outer soles and uppers of rubber 
                        or plastics (except vulcanized footwear and 
                        footwear with waterproof molded or vulcanized 
                        bottoms, including bottoms comprising an outer 
                        sole and all or part of the upper, and except 
                        footwear designed to be protective that is 
                        incomplete in its condition as imported), 
                        valued at more than $16 per pair, designed to 
                        be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection includes 
                        protection against water that is imparted by 
                        the use of a laminated textile fabric (provided 
                        for in subheading 6402.91.50 of the Harmonized 
                        Tariff Schedule of the United States).
                            ``(iii) Footwear for persons other than men 
                        or women, with outer soles and uppers of rubber 
                        or plastics (other than sports footwear 
                        described in Subheading Note 1 to chapter 64 of 
                        the Harmonized Tariff Schedule of the United 
                        States) that is designed for outdoor 
                        activities, such as hiking shoes, trekking 
                        shoes, running shoes, and trail running shoes, 
                        which provides protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric, with or without insulation, valued at 
                        more than $16 per pair (provided for in 
                        subheading 6402.91.50 of the Harmonized Tariff 
                        Schedule of the United States).
                            ``(iv) Footwear for men or for women, with 
                        outer soles and uppers of rubber or plastics 
                        (other than sports footwear described in 
                        Subheading Note 1 to chapter 64 of the 
                        Harmonized Tariff Schedule of the United 
                        States) that is designed for outdoor 
                        activities, such as hiking shoes, trekking 
                        shoes, running shoes and trail running shoes, 
                        valued at more than $25 per pair, which 
                        provides protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric, with or without insulation, whose 
                        height from the bottom is at least 6 inches 
                        (15.35 centimeters) and does not exceed 10 
                        inches (25.4 centimeters) (provided for in 
                        subheading 6402.91.50 of the Harmonized Tariff 
                        Schedule of the United States).
                            ``(v) Footwear for men or for women, with 
                        outer soles and uppers of rubber or plastics 
                        (except vulcanized footwear and footwear with 
                        waterproof molded bottoms or vulcanized 
                        bottoms, including bottoms comprising an outer 
                        sole and all or part of the upper, and except 
                        footwear designed to be protective that is 
                        incomplete in its condition as imported), not 
                        covering the ankle or having a protective 
                        metal-toe cap, valued at more than $25 per 
                        pair, designed to be worn in lieu of, but not 
                        over, other footwear as a protection against 
                        water, oil, grease, or chemicals or cold or 
                        inclement weather where such protection 
                        includes protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric (provided for in subheading 6402.99.33 
                        of the Harmonized Tariff Schedule of the United 
                        States).
                            ``(vi) Footwear for persons other than men 
                        or women, with outer soles and uppers of rubber 
                        or plastics (except vulcanized footwear and 
                        footwear with waterproof molded bottoms or 
                        vulcanized bottoms, including bottoms 
                        comprising an outer sole and all or part of the 
                        upper, and except footwear designed to be 
                        protective that is incomplete in its condition 
                        as imported), not covering the ankle or having 
                        a protective metal-toe cap, valued at more than 
                        $16 per pair, designed to be worn in lieu of, 
                        but not over, other footwear as a protection 
                        against water, oil, grease, or chemicals or 
                        cold or inclement weather where such protection 
                        includes protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric (provided for in subheading 6402.99.33 
                        of the Harmonized Tariff Schedule of the United 
                        States).
                            ``(vii) Sports footwear for men or for 
                        women with outer soles of rubber or plastics 
                        and uppers of textile, valued at more than $20 
                        per pair, other than ski boots, cross country 
                        ski footwear, and snowboard boots, designed to 
                        be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection is imparted by 
                        the use of a laminated textile and with 
                        openings in the bottom or side of the sole, or 
                        covered openings in the upper above the sole 
                        unit, or a combination thereof, designed to 
                        permit moisture vapor transport from under the 
                        foot (provided for in subheading 6404.11.90 of 
                        the Harmonized Tariff Schedule of the United 
                        States).
                            ``(viii) Golf footwear for men, youths, or 
                        boys with outer soles of rubber, plastics, 
                        leather, or composition leather and uppers of 
                        leather, not pigskin or welt, designed to be 
                        worn in lieu of, but not over, other footwear 
                        as a protection against water, oil, grease, or 
                        chemicals or cold or inclement weather where 
                        such protection is imparted by the use of a 
                        laminated textile and with openings in the 
                        bottom or side of the sole, or covered openings 
                        in the upper above the sole unit, or a 
                        combination thereof, designed to permit 
                        moisture vapor transport from under the foot 
                        (as provided for under subheading 6403.19.30 of 
                        the Harmonized Tariff Schedule of the United 
                        States).
                            ``(ix) Footwear for men, with uppers of 
                        leather other than of pigskin (other than work 
                        footwear, tennis shoes, basketball shoes, gym 
                        shoes, training shoes and the like, and other 
                        than slip-on footwear), covering the ankle, 
                        valued at more than $27 per pair, designed to 
                        be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection includes 
                        protection against water that is imparted by 
                        the use of a laminated textile fabric (provided 
                        for in subheading 6403.91.60 of the Harmonized 
                        Tariff Schedule of the United States).
                            ``(x) Footwear for women, with uppers of 
                        leather other than of pigskin (other than work 
                        footwear, tennis shoes, basketball shoes, gym 
                        shoes, training shoes and the like, and other 
                        than slip-on footwear), covering the ankle, 
                        valued at more than $27 per pair, designed to 
                        be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection includes 
                        protection against water that is imparted by 
                        the use of a laminated textile fabric (provided 
                        for in subheading 6403.91.90 of the Harmonized 
                        Tariff Schedule of the United States).
                            ``(xi) Footwear for persons other than men 
                        or women, with uppers of leather other than of 
                        pigskin (other than work footwear, tennis 
                        shoes, basketball shoes, gym shoes, training 
                        shoes and the like, and other than slip-on 
                        footwear), covering the ankle, valued at more 
                        than $18 per pair, designed to be worn in lieu 
                        of, but not over, other footwear as a 
                        protection against water, oil, grease, or 
                        chemicals or cold or inclement weather where 
                        such protection includes protection against 
                        water that is imparted by the use of a 
                        laminated textile fabric (provided for in 
                        subheading 6403.91.90 of the Harmonized Tariff 
                        Schedule of the United States).
                            ``(xii) Footwear for men, with uppers of 
                        leather other than of pigskin (other than house 
                        slippers, work footwear, tennis shoes, 
                        basketball shoes, gym shoes, training shoes and 
                        the like, and other than slip-on footwear), not 
                        covering the ankle, valued at more than $27 per 
                        pair, designed to be worn in lieu of, but not 
                        over, other footwear as a protection against 
                        water, oil, grease, or chemicals or cold or 
                        inclement weather where such protection 
                        includes protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric (provided for in subheading 6403.99.60 
                        of the Harmonized Tariff Schedule of the United 
                        States).
                            ``(xiii) Footwear for women, with uppers of 
                        leather other than of pigskin (other than house 
                        slippers, work footwear, tennis shoes, 
                        basketball shoes, gym shoes, training shoes and 
                        the like, and other than slip-on footwear), not 
                        covering the ankle, valued at more than $27 per 
                        pair, designed to be worn in lieu of, but not 
                        over, other footwear as a protection against 
                        water, oil, grease, or chemicals or cold or 
                        inclement weather where such protection 
                        includes protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric (provided for in subheading 6403.99.90 
                        of the Harmonized Tariff Schedule of the United 
                        States).
                            ``(xiv) Footwear for persons other than men 
                        or women, with uppers of leather other than of 
                        pigskin (other than house slippers, work 
                        footwear, tennis shoes, basketball shoes, gym 
                        shoes, training shoes and the like, and other 
                        than slip-on footwear), not covering the ankle, 
                        valued at more than $18 per pair, designed to 
                        be worn in lieu of, but not over, other 
                        footwear as a protection against water, oil, 
                        grease, or chemicals or cold or inclement 
                        weather where such protection includes 
                        protection against water that is imparted by 
                        the use of a laminated textile fabric (provided 
                        for in subheading 6403.99.90 of the Harmonized 
                        Tariff Schedule of the United States).
                            ``(xv) Footwear for men or for women, with 
                        outer soles of rubber, plastics, leather, or 
                        composition leather and uppers of textile 
                        materials (except vulcanized footwear and 
                        footwear with waterproof molded or vulcanized 
                        bottoms, including bottoms comprising an outer 
                        sole and all or part of the upper, work 
                        footwear, and except footwear designed to be 
                        protective that is incomplete in its condition 
                        as imported), valued at more than $25 per pair, 
                        not covering the ankle, designed to be worn in 
                        lieu of, but not over, other footwear as a 
                        protection against water, oil, grease, or 
                        chemicals or cold or inclement weather where 
                        such protection includes protection against 
                        water that is imparted by the use of a 
                        laminated textile fabric (provided for in 
                        subheading 6404.19.20 of the Harmonized Tariff 
                        Schedule of the United States).
                            ``(xvi) Footwear for men or for women, with 
                        outer soles of rubber, plastics, leather, or 
                        composition leather and uppers of textile 
                        materials (except vulcanized footwear and 
                        footwear with waterproof molded or vulcanized 
                        bottoms, including bottoms comprising an outer 
                        sole and all or part of the upper, work 
                        footwear, and except footwear designed to be 
                        protective that is incomplete in its condition 
                        as imported), valued at more than $25 per pair, 
                        whose height from the bottom of the outer sole 
                        to the top of the upper does not exceed 10 
                        inches (25.4 centimeters), designed to be worn 
                        in lieu of, but not over, other footwear as a 
                        protection against water, oil, grease, or 
                        chemicals or cold or inclement weather where 
                        such protection includes protection against 
                        water that is imparted by the use of a 
                        laminated textile fabric (provided for in 
                        subheading 6404.19.20 of the Harmonized Tariff 
                        Schedule of the United States).
                            ``(xvii) Footwear for persons other than 
                        men or women, with outer soles of rubber, 
                        plastics, leather, or composition leather and 
                        uppers of textile materials (except vulcanized 
                        footwear and footwear with waterproof molded or 
                        vulcanized bottoms, including bottoms 
                        comprising an outer sole and all or part of the 
                        upper, work footwear, and except footwear 
                        designed to be protective that is incomplete in 
                        its condition as imported), valued at more than 
                        $16 per pair, designed to be worn in lieu of, 
                        but not over, other footwear as a protection 
                        against water, oil, grease, or chemicals or 
                        cold or inclement weather where such protection 
                        includes protection against water that is 
                        imparted by the use of a laminated textile 
                        fabric (provided for in subheading 6404.19.20 
                        of the Harmonized Tariff Schedule of the United 
                        States).''.

SEC. 5. STUDIES ON STATE OF DOMESTIC FOOTWEAR INDUSTRY AND PROBABLE 
              EFFECT OF EXPANDED DUTY-FREE TREATMENT OF FOOTWEAR 
              ARTICLES.

    (a) Study on State of Domestic Footwear Industry.--
            (1) In general.--The President shall include in each of the 
        first 6 annual reports under section 504 of the Trade Act of 
        1974 (19 U.S.C. 2464) submitted after the date of the enactment 
        of this Act the results of a study on the state of the footwear 
        manufacturing industry in the United States during the year 
        preceding the submission of the report.
            (2) Elements.--Each study required under paragraph (1) 
        shall focus on changes to the categories of footwear 
        manufactured in the United States during the year covered by 
        the study for the purpose of accurately determining which 
        footwear categories are manufactured in the United States.
    (b) Study on Probable Economic Effect of Expanded Duty-Free 
Treatment.--To support efforts by manufacturers in the United States to 
expand production of footwear, in conducting any study of the probable 
economic effect of providing duty-free treatment under title V of the 
Trade Act of 1974 (19 U.S.C. 2461 et seq.) to footwear articles, the 
United States Trade Representative shall request that the United States 
International Trade Commission not only examine current domestic 
production of like or directly competitive articles, but also identify 
any articles for which domestic production at a commercial level is 
likely to occur within the next year.
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