DUTY REDUCTION FOR CERTAIN LEATHER-RELATED PRODUCTS.

SEC. 212. DUTY REDUCTION FOR CERTAIN LEATHER-RELATED PRODUCTS. (a) In General.— Section 213 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is amended by adding at the end thereof the following new subsection: “(h) (1) Subject to paragraph (2), the President shall proclaim reductions in the rates of duty on handbags, luggage, flat goods, work gloves, and leather wearing apparel that— “(A) are the product of any beneficiary country; and “(B) were not designated on August 5, 1983, as eligible articles for purposes of the generalized system of preferences under title V of the Trade Act of 1974. “(2) The reduction required under paragraph (1) in the rate of duty on any article shall— “(A) result in a rate that is equal to 80 percent of the rate of duty that applies to the article on December 31, 1991, except 104 STAT. 656that, subject to the limitations in paragraph (3), the reduction may not exceed 2.5 percent ad valorem; and “(B) be implemented in 5 equal annual stages with the first one-fifth of the aggregate reduction in the rate of duty being applied to entries, or withdrawals from warehouse for consumption, of the article on or after January 1, 1992. “(3) The reduction required under this subsection with respect to the rate of duty on any article is in addition to any reduction in the rate of duty on that article that may be proclaimed by the President as being required or appropriate to carry out any trade agreement entered into under the Uruguay Round of trade negotiations; except that if the reduction so proclaimed— “(A) is less than 1.5 percent ad valorem, the aggregate of such proclaimed reduction and the reduction under this subsection may not exceed 3.5 percent ad valorem, or “(B) is 1.5 percent ad valorem or greater, the aggregate of such proclaimed reduction and the reduction under this subsection may not exceed the proclaimed reduction plus 1 percent ad valorem.”. (b) Conforming Amendments.— Subsection (b) of section 213 is amended— (1) by striking out “, handbags, luggage, flat goods, work gloves, and leather wearing apparel” in paragraph (2); (2) by striking “or” at the end of paragraph (4); (3) by striking out the period at the end of paragraph (5) and inserting “; or”; and (4) by adding at the end thereof the following new paragraph: “(6) articles to which reduced rates of duty apply under subsection (h).”.