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A. Extension of Duty-Free Treatment Under the Generalized System of Preferences
B. Temporary Suspension of Vessel Repair Duty(**)
C. United States-Caribbean Basin Trade Partnership Act(**)
(**) Not included in final bill
Present Law
Title V of the Trade Act of 1974, as amended (Generalized System of Preferences ("GSP")), grants authority to the President to provide duty-free treatment on imports of eligible articles from designated beneficiary developing countries, subject to specific conditions and limitations. To qualify for GSP privileges, each beneficiary country is subject to various mandatory and discretionary eligibility criteria. Import sensitive products are ineligible for GSP. The President's authority to grant GSP benefits expired on May 31, 1997.
House Bill
Under the House bill, the GSP program is reauthorized for two years, to expire on May 31, 1999. Refunds of any duty paid between May 31, 1997 and the date of enactment are provided upon request of the importer.
Effective date.--The provision is effective upon date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the House bill, with a modification to extend the GSP reauthorization through June 30, 1998.
Present Law
Section 466 of the Tariff Act of 1930 establishes a 50-percent duty on repairs made outside the United States to U.S. flag vessels.
House Bill
The current 50-percent duty on repairs to U.S. flag vessels made in countries that are signatories to the OECD Shipbuilding Agreement is suspended for a one-year period.
Effective date.--The provision is effective with respect to repair activities occurring for a one-year period beginning on the date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement does not include the House bill provision.
Present Law
The Caribbean Basin Initiative ("CBI") program was established by the Caribbean Basin Economic Recovery Act ("CBERA"), which was enacted on August 5, 1983. This legislation authorized the President to grant duty-free treatment to the imports of eligible articles from designated countries in the Caribbean Basin region. Certain products (textiles, apparel, canned tuna, petroleum and petroleum products, footwear, handbags, luggage, flatgoods, work gloves, leather wearing apparel, watches and watch parts) were excluded under the statute from eligibility for duty-free treatment.
CBI trade benefits were made permanent in 1990.
House Bill
The House bill amends the Caribbean Basin Economic Recovery Act to provide additional temporary transitional trade benefits to products that are excluded from eligibility for duty-free treatment under CBI. These products are provided tariff and quota treatment which is comparable to treatment accorded to like articles imported from Mexico under the North American Free Trade Agreement ("NAFTA") subject to certain rule-of-origin and customs requirements and other limitations. The President must review periodically country adherence to eligibility criteria, and consult with beneficiary countries about free trade agreement negotiations.
Effective date.--The provision is effective for one year beginning January 1, 1998.
Senate Amendment
No provision.
Conference Agreement
The conference agreement does not include the House bill provision.