Thursday, May 30, 2013

Bill Filed to Make Luggage and Travel Goods Eligible for GSP

On May 23, 2013, Representative Ander Crenshaw, Republican, from Florida's 4th Congressional District which runs from Jacksonville to Tallahassee, hugging the Georgia border most of the way, filed a bill (H.R.2139) to make certain luggage and travel articles eligible for duty-free treatment under the Generalized System of Preferences. The bill is co-sponsored by Representative Adrian Smith, Republican, whose district, Nebraska's third, encompasses the western three-fourths of that state.

The Generalized System of Preferences ("GSP") promotes economic development in developing and least-developed countries, however certain "import sensitive" articles, such as textiles, apparel, and luggage or travel articles and classified under chapter 42 of the Harmonized Tariff Schedule of the United States may not be designated as eligible articles for GSP. Sponsors of H.R.2139 maintain that global trade and manufacturing dynamics have changed since the enactment of the Generalized System of Preferences in 1974, and many luggage and travel articles may no longer be import-sensitive to industries in the United States.

According to the sponsors, 73 of the 132 countries designated as beneficiary developing countries under GSP export articles classified under heading 4202 (luggage and travel goods) of the Harmonized Tariff Schedule of the United States to the United States. Twenty of those countries have been designated as least-developed beneficiary developing countries for purposes of the Generalized System of Preferences. They also note that the People's Republic of China has a nearly 80 percent share of the market for certain luggage and travel articles being imported into the United States. This dominance, they assert, leaves little room for competition from smaller developing countries, citing data showing that countries designated as beneficiary developing countries under GSP account for merely 5 percent of imports of those articles into the United States.

The bill would allow GSP designation for:

SubheadingBrief DescriptionDuty
4202.11.00Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers with outer surface of leather or of composite leather8%
4202.12.40Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers with outer surface of cotton (not of pile or tufted construction)6.3%
4202.21.60Handbags, whether or not with shoulder strap, including those without handle, with surface of leather or composition leather (not reptile), valued not over $20 each10%
4202.21.90Handbags, whether or not with shoulder strap, including those without handle, with surface of leather or composition leather (not reptile), valued over $20 each 9%
4202.22.15Handbags, whether or not with shoulder strap, including those without handle, with outer surface of sheeting of plastic16%
4202.22.45Handbags, whether or not with shoulder strap, including those without handle, with outer surface of cotton (not pile or tufted construction)6.3%
4202.31.60Articles of a kind normally carried in the pocket or in the handbag, with outer surface of leather or composition leather (not reptile)8%
4202.32.40Articles of a kind normally carried in the pocket or in the handbag, with outer surface of cotton (not pile or tufted construction)6.3%
4202.32.80Articles of a kind normally carried in the pocket or in the handbag, with outer surface of vegetable fiber other than cotton (not pile or tufted construction)5.7%
4202.92.15Travel, sports and similar bags, with outer surface of cotton (not pile or tufted construction)6.3%
4202.92.20Travel, sports and similar bags, with outer surface of vegetable fiber other than cotton (not pile or tufted construction)5.7%
4202.92.45 Travel, sports and similar bags, with outer surface of plastic20%
4202.99.90A "basket category" for travel good not elsewhere classified20%
4202.12.2020Trunks, suitcases, vanity cases and similar containers, structured, rigid on all sides, with outer surface of plastics20%
4202.12.2050Trunks, suitcases, vanity cases and similar containers, not structured, not rigid on all sides, with outer surface of plastics 20%
4202.12.8030Attache cases, briefcases, school satchels, occupational luggage cases and similar containers, of man-made fibers17.6%
4202.12.8070Trunks, suitcases, vanity cases and similar containers, of man-made fibers17.6%
4202.22.8050Handbags, whether or not with shoulder strap, including those without handle, of man-made fibers17.6%
4202.32.9550Articles of a kind normally carried in the pocket or in the handbag, of man-made fibers17.6%
4202.32.9560Articles of a kind normally carried in the pocket or in the handbag, of textile fibers other than cotton or man-made17.6%
4202.91.0030Travel, sports and similar bags, of leather or composition leather4.5%
4202.91.0090A "basket category" for other bags of leather or composition leather4.5%
4202.92.3020Backpacks of man-made fibers17.6%
4202.92.3031A "basket category" for other man-made fiber bags17.6%
4202.92.3091A "basket category" for textile bags other than cotton or man-made fiber17.6%
4202.92.9026A "basket category" for other cases with man-made fiber covering17.6%
4202.92.9060A "basket category" for other textile covered cases17.6%

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