This bill updates the competitive need limitation rules that govern the Generalized System of Preferences, a trade program that allows certain developing countries to export goods to the United States duty-free. The legislation increases the value threshold for when a product becomes ineligible for duty-free status from $75 million to $600 million per calendar year, and changes a second threshold from a fixed $5 million amount to 5 percent of the applicable limit. Within 120 days of the bill's enactment, the President must identify products that lost duty-free status under the old rules but would qualify under the new ones, and must restore duty-free treatment to those products unless they are deemed potentially sensitive and warrant further review. The President has up to one year to complete reviews of any sensitive products and must report back to Congress on which products had duty-free treatment restored and the reasons for any continued restrictions. This bill primarily affects importing companies and developing countries that export goods to the United States.
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