House Bill Would Prevent Cambodian Apparel, Textiles & Footwear from Receiving Duty-Free Treatment
On May 20, 2010, Representative Delahunt (D) introduced the Cambodian Trade Act of 2010 (H.R. 5349) which would prohibit the extension of duty-free treatment to all Cambodian apparel and certain Cambodian textiles, footwear.
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(This bill is not in effect. Generally, in order for a bill to be implemented, identical versions of the bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.)
All Cambodian Apparel, Certain Cambodian Textiles, Footwear Would be Denied Duty-Free Treatment
H.R. 5349 states that notwithstanding the Generalized System of Preferences (GSP) statute or any other legal provision providing duty-free treatment, no textile or apparel article that is the product of Cambodia would be extended duty-free treatment when entered into the Customs territory of the U.S.
The bill defines textile or apparel articles as (i) any apparel article classified under any chapter of Harmonized Tariff Schedule (HTS) Section XII; (ii) any textiles classified under any such chapter from which apparel articles can be produced; and (iii) any footwear article classified under HTS Chapter 64.
The provisions of H.R. 5349 would take effect on the date of enactment.
Bill Would Prohibit U.S. From Reducing, Forgiving Cambodia’s Debt
H.R. 5349 would also prohibit the U.S. from reducing or forgiving any debt owed to it by Cambodia.
(See ITT’s Online Archives or 05/21/10 news, 10052165, for BP summary announcing the introduction of H.R. 5349.
See ITT’s Online Archives or 03/10/10 news, 10031005, for BP summary on the Senate Finance Committee leaders’ plans for trade preference reform.
See ITT’s Online Archives or 11/18/09 news, 09111805, for BP summary on House Ways and Means Committee’s hearing on trade preference reform.
See ITT’s Online Archives or 11/18/09 news, 09111845, for BP summary of trade letter urging rejection of duty-free entry for textiles and apparel from Bangladesh and Cambodia.
BP Notes
Senate Finance Committee Chairman Baucus has previously listed generous benefits to least developed countries like Cambodia as an essential part of U.S. trade preference reform. Witnesses at a November 2009 House Ways and Means Committee hearing on trade preference reform discussed possible changes to existing U.S. trade preference programs, including extending product coverage to benefit the world’s poorest countries (for example, allowing duty-free entry for textiles and apparel from countries such as Cambodia and Bangladesh).
In November 2009, forty-five trade associations from twenty-nine preference and free trade area countries signed a letter to the House Ways and Means Committee urging the rejection of proposals to modify trade preference program to grant duty free access to Bangladesh and Cambodia for textiles and apparel.