Section 1 Short title
This Act may be cited as the “CNL Update Act of 2023”.
CNL Update Act of 2023
A BILL
To modify the competitive need limitation with respect to the generalized system of preferences, and for other purposes.
Sec. 2 Modification of competitive need limitation
in subsection (c)(2)(A)(i)—
by striking “after December 31, 1995— (I) a quantity” and inserting “after December 31, 1995, a quantity”; and
by striking “calendar year, or” and all that follows through “the President shall,” and inserting “calendar year, the President shall,”;
in subsection (c)(2)(A)(ii)—
in subclause (I), by striking “for 1996, $75,000,000” and inserting “for calendar year 2023, $600,000,000”; and
in subclause (II), by striking “$5,000,000” and inserting “5 percent of such applicable amount”;
in subsection (c)(2)(C), by striking “may, subject” and inserting “should, subject”;
by striking subsection (c)(2)(E) and subsection (c)(2)(F);
by inserting after subsection (c)(2)(D) the following new subparagraph:
“(E) Calculation of limitations—There shall be counted against the limitations imposed under subparagraph (A) for any calendar year only that value of any eligible article of a beneficiary developing country that entered duty-free under this title during such calendar year.”
in subsection (d)(1), by striking “if, before” and all that follows through “the President” and inserting “if the President”; and
in subsection (d)(4)(B)(ii)—
in subclause (I), by striking “; or” and inserting a period;
in the matter preceding subclause (I), by striking “a quantity of the article—(I) having an appraised value” and inserting “a quantity of the article having an appraised value”; and
by striking subclause (II).
Applicability—
In general— The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.
Restoration of duty-free treatment—
List required— Not later than 120 days after the date of the enactment of this Act, the President shall—
list each article with respect to which such treatment was eliminated pursuant to subsection (c) of section 503 of the Trade Act of 1974, as in effect on December 31, 2020, that is eligible for such treatment pursuant to such section 503 as amended by this Act; and
determine, with respect to each such article, whether the article is a potentially sensitive product that warrants review pursuant to subsection (c)(1) of such section 503 for the continued withholding of duty-free treatment.
Prompt restoration— Except for articles for which the President makes an affirmative determination pursuant to subparagraph (A)(ii), the President shall restore duty-free treatment to each article included in the list described in subparagraph (A)(i) on such 120th day after date of enactment.
Expedited review of certain articles for exclusion from duty-free treatment— The President shall review, pursuant to section 503(c)(1) of the Trade Act of 1974 (19 U.S.C. 2463(c)(1)), whether duty-free treatment should continue to be withheld from each article for which the President makes an affirmative determination pursuant to paragraph (2)(A)(ii). Not later than 1 year after the date of the enactment of this Act, the President shall restore duty-free treatment to each article for which such review determines that such treatment should not be withheld.
Reports— Not later than 1 year after the date of the enactment of this Act, the President shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report containing—
the results of the reviews conducted pursuant to paragraph (3); and
justifications for the reasons for which duty-free treatment was withheld or restored with respect to articles described in such paragraph.