A bill to apply duty-free treatment under certain circumstances to articles produced in the insular possessions of the United States, and for other purposes.

Amends the Tariff Schedules of the United States to temporarily suspend the duty on products (other than watches or watch movements) of the insular possessions: (1) which contain foreign materials valued at between 50 and 70 percent of the total product value; and (2) which are not designated import sensitive. Establishes a ceiling on the quantity of articles which qualify for such duty-free treatment. Permits any interested party to submit a request to the Office of the Special Representative for Trade Negotiations that: (1) the aforementioned articles be designated as import sensitive; or (2) such designation be removed.

Requires articles subject to certain bilateral or multilateral import restraint agreements and articles subject to specified import relief provisions to be treated as import sensitive articles.

Requires the President to report to Congress concerning the economic effect of these amendments on the insular possessions.