[Congressional Record Volume 164, Number 28 (Tuesday, February 13, 2018)]
[House]
[Pages H1100-H1103]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXTENDING GENERALIZED SYSTEM OF PREFERENCES PROGRAM
Mr. REICHERT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4979) to extend the Generalized System of Preferences and to
make technical changes to the competitive need limitations provision of
the program, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4979
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) In General.--Section 505 of the Trade Act of 1974 (19
U.S.C. 2465) is amended by striking ``December 31, 2017'' and
inserting ``December 31, 2020''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to articles entered on or after the 30th day after the
date of the enactment of this Act.
(2) Retroactive application for certain liquidations and
reliquidations.--
(A) In general.--Notwithstanding section 514 of the Tariff
Act of 1930 (19 U.S.C. 1514) or any other provision of law
and subject to subparagraph (B), any entry of a covered
article to which duty-free treatment or other preferential
treatment under title V of the Trade Act of 1974 (19 U.S.C.
2461 et seq.) would have applied if the entry had been made
on December 31, 2017, that was made--
(i) after December 31, 2017, and
(ii) before the effective date specified in paragraph (1),
shall be liquidated or reliquidated as though such entry
occurred on the effective date specified in paragraph (1).
(B) Requests.--A liquidation or reliquidation may be made
under subparagraph (A) with respect to an entry only if a
request therefor is filed with U.S. Customs and Border
Protection not later than 180 days after the date of the
enactment of this Act that contains sufficient information to
enable U.S. Customs and Border Protection--
(i) to locate the entry; or
(ii) to reconstruct the entry if it cannot be located.
(C) Payment of amounts owed.--Any amounts owed by the
United States pursuant to the liquidation or reliquidation of
an entry of a covered article under subparagraph (A) shall be
paid, without interest, not later than 90 days after the date
of the liquidation or reliquidation (as the case may be).
(3) Definitions.--In this subsection:
(A) Covered article.--The term ``covered article'' means an
article from a country that is a beneficiary developing
country under title V of the Trade Act of 1974 (19 U.S.C.
2461 et seq.) as of the effective date specified in paragraph
(1).
(B) Enter; entry.--The terms ``enter'' and ``entry''
include a withdrawal from warehouse for consumption.
(c) Annual Report on Enforcement of Eligibility Criteria.--
Not later than one year after the date of the enactment of
this Act, and annually thereafter through December 31, 2020,
the United States Trade Representative shall submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report on
efforts to ensure that countries designated as beneficiary
developing countries under title V of the Trade Act of 1974
(19 U.S.C. 2461 et seq.) are meeting the eligibility criteria
set forth in section 502(c) of such Act (19 U.S.C. 2462(c)).
SEC. 2. TECHNICAL MODIFICATION TO PROCEDURES FOR COMPETITIVE
NEED LIMITATION AND WAIVERS.
Section 503 of the Trade Act of 1974 (19 U.S.C. 2463) is
amended--
(1) in subsection (c)(2)--
(A) in the matter following subparagraph (A)(i)(II), by
striking ``July 1'' and inserting ``November 1''; and
(B) in subparagraph (E), by striking ``on January 1, 1995''
and inserting ``in any of the preceding three calendar
years''; and
(2) in subsection (d), by striking ``July 1'' each place it
appears and inserting ``November 1''.
SEC. 3. CUSTOMS USER FEES.
Section 13031(j)(3)(A) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) is
amended by striking ``February 24, 2027'' and inserting
``August 1, 2027''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Washington (Mr. Reichert) and the gentleman from New Jersey (Mr.
Pascrell) each will control 20 minutes.
The Chair recognizes the gentleman from Washington.
General Leave
Mr. REICHERT. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 4979, currently under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Washington?
There was no objection.
Mr. REICHERT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to speak today in support of H.R. 4979, a
bill to
[[Page H1101]]
extend the Generalized System of Preferences and to make technical
changes to the competitive need limitations provision of the program.
This bipartisan bill helps keep U.S. companies globally competitive by
eliminating tariffs on certain imports from developing countries in a
manner that does not hurt U.S. producers.
GSP saved U.S. companies more than $865 million in import duties in
2017, providing benefits to thousands of companies and their employees
as well as their customers. GSP also provides an important enforcement
tool to require all 121 beneficiary developing countries to continue to
make progress on eligibility criteria set by Congress. These include
critical issues like intellectual property protection, market access
for U.S. exporters, and elimination of the worst forms of child labor.
In my home State of Washington, GSP saved companies about $11 million
in import duties in 2017, and that is up 30 percent from 2016. As just
one example, TRInternational, a small but quickly growing, veteran-
owned chemical distributor in Seattle, relies on GSP to obtain certain
chemical raw materials at globally competitive prices. Our last renewal
of GSP in 2015 allowed TRI to hire more employees and invest in more
equipment. Many of TRI's customers are U.S. manufacturers, and TRI's
use of GSP to obtain raw materials at lower prices also makes these
manufacturers more competitive.
For TRI and other Washington companies like Rain City Music that use
the GSP program, their employees, and American consumers, GSP provides
significant benefits.
And of course, I urge my colleagues to join us in supporting this
bill, and I am pleased to be working with my good friend Bill Pascrell,
who joins us here tonight.
Mr. Speaker, I reserve the balance of my time.
Mr. PASCRELL. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, I am happy to stand here with my chairman from the great
State of Washington, (Mr. Reichert). This is a bipartisan bill.
The Generalized System of Preferences expired December 31, 2017. I
rise today to urge my colleagues to support the legislation that would
renew what I consider a very important program.
This is a longstanding trade program, Mr. Speaker, that has enjoyed
broad bipartisan support since 1974. Since the GSP already expired, it
is imperative that we extend the program now.
While this bill makes slight technical corrections, no real
substantive changes were made in the existing program. I am open to
having a debate on modifications that would enhance GSP in the future.
I would have liked to have had it before this debate, had the time that
we are debating right now and not have let the program expire, but,
unfortunately, I am not in control of the calendar. I am pleased,
however, that we agreed to work to renew this program in its current
form on a bipartisan, bicameral basis.
Established by the Trade Act of 1974, GSP promotes economic
development by eliminating duties on thousands of products when
imported from one of approximately 120 designated beneficiary countries
and territories. This program not only supports American
competitiveness and economic opportunity, but it also encourages
developing countries in the program to adopt high labor standards,
intellectual property rights, and the rule of law.
So, as part of the current program, the committee known as the GSP
Subcommittee of the Trade Policy Staff Committee conducts an annual
review of the articles, an annual review of all the countries that are
involved, that are eligible for duty-free treatment under this program.
This committee is chaired by the United States Trade Representative and
comprised of representatives of other executive branch agencies.
The law requires that the President take into account several factors
when designating a country as eligible for GSP. These factors include
whether a country has taken or is taking steps to afford workers
internationally recognized worker rights--that is what the law says--
and the extent to which a country is providing adequate and effective
protection of intellectual property rights.
Last year, the administration began a review of Bolivia's compliance,
as an example, with the labor eligibility criterion due to concerns
regarding the use of child labor and other labor abuses in Bolivia.
{time} 1745
The legislation we are considering today includes a new reporting
requirement that will improve the effectiveness of congressional
oversight of the administration's enforcement of these eligibility
criteria and the progress made under effective investigations. Article
I, section 8 is very clear of what the legislators in this House have
as a responsibility. It is my hope that Congress can further strengthen
the enforcement mechanisms of the GSP in the future.
The program also boosts the competitiveness of United States
companies and workers by reducing the cost of imports used to
manufacture goods in the United States. In 2016, products valued at
$18.9 billion entered the United States duty-free under the program.
Since the expiration of the program, small- and medium-sized
enterprises have borne the burden of higher costs of products imported
under the GSP.
Consider Primetac, which is located in Little Ferry, New Jersey, in
my district. It is a family-owned business from my district that uses
the GSP-eligible goods to support their industrial packaging business.
When GSP last expired, Primetac was forced to raise prices to
compensate for the new import taxes. This was no small increase. The
company estimates it paid about $1.5 million in new tariffs during the
program's lapse.
This legislation would provide benefits retroactively to GSP-eligible
imports so that small- and medium-sized American companies like
Primetac can take full advantage of the benefits of GSP and boost their
business' productivity
It is critical that we act quickly. I also want to mention that the
GSP is also intended to prevent domestic companies from being harmed.
Under the current process, the competitive need limitation provision
within the law imposes ceilings on GSP benefits for each product and
for each beneficiary country. The GSP statute provides that a
beneficiary developing country loses GSP eligibility with respect to a
product if the competitive need limitations are exceeded and then no
waiver is granted.
In closing, I look forward to considering this legislation. With the
successful passage of GSP, I hope that we will be able to issue a
joint, bipartisan statement and continue working together to show the
strong support for this program.
Mr. Speaker, I reserve the balance of my time
Mr. REICHERT. Mr. Speaker, I yield as much time as he may consume to
the gentleman from Texas (Mr. Brady), the chairman of the Ways and
Means Committee.
Mr. BRADY of Texas. Mr. Speaker, I rise today in support of this
bipartisan bill to renew the Generalized System of Preferences program
for 3 years.
I thank Congressman Reichert for his leadership of the Trade
Subcommittee and the good work that Mr. Pascrell has done as well.
This program, known as GSP, is incredibly important for the
competitiveness of our local businesses and our local workers. It helps
our families and our communities by reducing tariffs, which are
essentially taxes, on products that many of us use every day. Through
GSP, we secure tax-free access to thousands of products from around the
world.
Last year, this saved American businesses more than $865 million. In
Texas alone, our local job creators saved more than $76 million. Of
course, this is money that our businesses can instead use to hire more
workers, to expand, and innovate.
But, really, think about what it means for families. Think about that
single mom in the grocery store carefully reading every price tag so
she can stretch every dollar to the max. For her, GSP makes everyday
essentials more affordable, as well as the occasional treat that saves
money. It provides her with real peace of mind.
GSP delivers all these benefits in an accountable way that doesn't
hurt American workers or businesses.
[[Page H1102]]
I thank all the Members who worked on this important pro-growth, pro-
family bill; in particular, our Ways and Means Committee members:
Congressman Neal, my ranking member; Congressmen Reichert and Pascrell,
our Trade Subcommittee chairman and ranking member; and Congresswoman
Jackie Walorski, who has been an outstanding leader in this effort.
Now, let's pass this bill, provide certainty for our job creators,
and deliver the tax relief that American families deserve.
Mr. PASCRELL. Mr. Speaker, I reserve the balance of my time.
Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentlewoman from
Indiana (Mrs. Walorski), one of the distinguished members of the Ways
and Means Committee.
Mrs. WALORSKI. Mr. Speaker, I rise today in strong support of H.R.
4979, which extends the Generalized System of Preferences--or GSP--
program through 2020.
GSP helps American manufacturers, both big and small, cut input
costs, which, in turn, lowers prices for consumers. Companies saved
$865 million in import duties in 2017 alone.
I thank the chairman, in particular, for including my bipartisan
bill, H.R. 4068, the Competitive Need Limitation Modernization Act,
which I introduced with my friends, the gentlewoman from Nevada (Ms.
Titus) and the gentleman from Florida (Mr. Ross).
My bill makes two small but important technical fixes to the
competitive need limitation--or CNL--process. CNLs are exemptions
granted by the government on products that exceed the dollar or
percentage thresholds for GSP eligibility. They can be granted for a
number of reasons, including national security, no domestic production,
or low import levels.
Manufacturers in my district reached out to my office when they were
denied a CNL on a type of wood not found in the U.S. But because of a
government spreadsheet that stated there was a domestic product that
was like or directly competitive as of January 1, 1995, they were
denied. There was no information beyond that, just that date and that
spreadsheet. The manufacturers even had sworn affidavits from producers
in the industry saying there was actually nothing like or
directly competitive to this wood in the U.S., but it didn't matter.
This arbitrary and inflexible date forces manufacturers like the ones
in my district to pay millions in unnecessary duties, hurting American
workers and consumers. And it hurts domestic producers that have
brought jobs back to the U.S. since 1995 because that date is all that
matters in a CNL application.
My bill changes that date to the last three calendar years to better
reflect current domestic production. It also better synchronizes CNL
application dates and the date that full-year trade data is released to
provide more certainty.
I am glad we are taking this step to reauthorize GSP and to ensure
that it is working the way Congress intended. I urge my colleagues to
vote ``yes.''
Mr. PASCRELL. Mr. Speaker, I continue to reserve the balance of my
time
Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from
Florida (Mr. Curbelo), another member of the Ways and Means Committee.
Mr. CURBELO of Florida. Mr. Speaker, I thank Chairman Reichert and
Ranking Member Pascrell for their important work on this legislation.
I am proud to be a cosponsor of H.R. 4979, to provide a 3-year
renewal of the Generalized System of Preferences. The GSP program
provides duty-free access to the U.S. market for selected goods from
121 developing countries.
As a member of the Ways and Means Committee, I have always been an
advocate of policies that allow businesses and consumers to acquire
products of their choice at the best possible price. The GSP program
gives our businesses and consumers that choice by promoting economic
growth in developing countries while creating jobs here at home.
In 2017, U.S. importers enjoyed nearly $865 million in savings on
import duties under the GSP program. During the same year, my home
State of Florida had $1.2 billion of imports covered by the program and
a total savings of $59 million on import duties. Mr. Speaker, that is
about a 40 percent increase in savings from 2016.
I want to share the story of Mr. Bruce Price, a small-business owner
in my district who would benefit from renewing the GSP program. He
recently told my office he expects savings in the range of $25,000 to
$45,000 per year if the program is renewed. For Mr. Price, those
savings go a long way and make a major difference in determining his
business decisions.
I commend the work the Ways and Means Subcommittee on Trade has done
to reinforce our commitment to free and fair trade partnerships around
the world. I urge my colleagues to vote in favor of H.R. 4979 to help
Mr. Price and other small-business owners hire more workers all across
our country.
Mr. PASCRELL. Mr. Speaker, I reserve the balance of my time to close.
Mr. REICHERT. Mr. Speaker, I yield 2 minutes to the gentleman from
South Carolina (Mr. Norman), who has been a leader on this issue.
Mr. NORMAN. Mr. Speaker, I thank Chairman Reichert for his work on
this.
As Chairman Brady said, this is very important. I have a lot of
manufacturers in my district who really can't get parts in this country
and they depend on other countries, and it is vital that they remain
competitive. So I thank Chairman Reichert for his work on this.
I rise today to support the reauthorization of the Generalized System
of Preferences program, or GSP.
In 2016, job creators and producers in my State saved $16 million on
$422 million worth of imports. In 2017, producers in my State saved $17
million on GSP imports through reduced tariffs. These savings translate
directly to how much companies can reinvest in their businesses and
their employees.
GSP also provides the executive branch with effective enforcement
strategies to make sure the United States is not being taken advantage
of in trade deals.
President John F. Kennedy once said: ``A rising tide lifts all
boats.''
This is the opportunity before us today. We can support American
prosperity while helping lift others out of poverty.
I urge support of this bill, Mr. Speaker.
Mr. PASCRELL. Mr. Speaker, I yield myself such time as I may consume.
We have had expiration times in the last 5 or 6 years, but we always
come together. We passed last week the Miscellaneous Tariff Bill in
Trade. I think that is a good sign moving forward, working together in
order to protect--not be protectionists, but protect American
industries. I think that this is a very, very important move.
I also think that extending it to 2020 is a great idea. I think this
is very, very important, so I won't be back here next year anyway. We
have a little foresight here.
So I thank Mr. Reichert for bringing this to the floor. We worked
hard to get this here. We hope we will get help from the other side of
the building.
Mr. Speaker, I yield back the balance of my time.
Mr. REICHERT. Mr. Speaker, I yield myself such time as I may consume.
I thank my friend from New Jersey because we have worked on a lot of
issues together over the past almost 14 years now, and I do agree with
him. There are few moments where we have a chance to sort of have a
kumbaya moment. MTB, a week or two ago, was one of those.
Tonight, on GSP, is another one that doesn't sound--you know, GSP,
people ask: What is that? And we tried to explain it tonight.
It is a complicated issue, but the bottom line is that this is good
for American businesses. It creates jobs, energizes the economy.
Coupled with tax reform and fair trade agreements that we are also
working together on, I think we can look forward to a bright, bright
future here in the United States for our working men and women and our
families.
So our last renewal of GSP in 2015 allowed TRI to hire more
employees, as I said. So we are looking forward to, you know, more jobs
being created. And TRI, I know, is going to be very pleased by the fact
that this is going to be voted on tonight.
It is clear that H.R. 4979 has strong bipartisan support, and for
good reason. Renewing GSP will benefit U.S. companies, workers, and
consumers. Any additional delay in renewing this important program has
real costs in
[[Page H1103]]
my home State, as I mentioned, and throughout the country.
Mr. Speaker, I urge my colleagues to join me in supporting this bill,
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Washington (Mr. Reichert) that the House suspend the
rules and pass the bill, H.R. 4979, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. REICHERT. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________