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The CNL Update Act of 2023 modifies the competitive need limitation (CNL) thresholds under the Generalized System of Preferences (GSP), a trade program that grants duty-free access to certain products from developing countries. The bill updates the dollar threshold from $75 million (set in 1996) to $600 million for calendar year 2023 and changes the percentage-based threshold to 5 percent of the applicable amount. It also requires the President to restore duty-free treatment to articles that lost eligibility under the old CNL rules, except for those identified as potentially sensitive products warranting continued review.
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