Title 19Customs DutiesRelease 119-73

§2119 Staging requirements and rounding authority

Title 19 › Chapter CHAPTER 12— - TRADE ACT OF 1974 › Subchapter SUBCHAPTER I— - NEGOTIATING AND OTHER AUTHORITY › Part Part 1— - Rates of Duty and Other Trade Barriers › § 2119

Last updated Apr 6, 2026|Official source

Summary

When tariff cuts from a trade agreement are put in over time, the total cut in effect on any day must not be bigger than what you would get if the cuts had been staged this way: start with a cut equal to 3 percent of the item's value or one‑tenth of the total cut, whichever is larger, on the day the first cut takes effect, and then add the same amount at one‑year intervals after that. The President can raise a staged cut a little to make the math simpler, but only by the smaller of two amounts: the gap up to the next lower whole percent or one‑half of 1 percent of the item's value. No part of any cut can start more than 10 years after the first cut. If a later U.S. law or action stops a cut (keeping or increasing the duty), the time it was stopped does not count toward the one‑year steps or the 10‑year limit.

Full Legal Text

Title 19, §2119

Customs Duties — Source: USLM XML via OLRC

(a)Except as otherwise provided in this section, the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement under section 2111 of this title shall not exceed the aggregate reduction which would have been in effect on such day if—
(1)a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed pursuant to section 2111(a)(2) of this title to carry out such agreement with respect to such article, and
(2)a reduction equal to the amount applicable under paragraph (1) had taken effect at 1-year intervals after the effective date of such first reduction.
(b)If the President determines that such action will simplify the computation of the amount of duty imposed with respect to an article, he may exceed the limitation provided by section 2111(b) of this title or subsection (a) of this section by not more than whichever of the following is lesser:
(1)the difference between the limitation and the next lower whole number, or
(2)one-half of 1 percent ad valorem.
(c)(1)No reduction in the rate of duty on any article pursuant to a trade agreement under section 2111 of this title shall take effect more than 10 years after the effective date of the first reduction proclaimed to carry out such trade agreement with respect to such article.
(2)If any part of a reduction takes effect, then any time thereafter during which any part of the reduction is not in effect by reason of legislation of the United States or action thereunder, the effect of which is to maintain or increase the rate of duty on an article, shall be excluded in determining—
(A)the 1-year intervals referred to in subsection (a)(2), and
(B)the expiration of the 10-year period referred to in paragraph (1) of this subsection.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1979—Subsec. (c)(2). Pub. L. 96–39 substituted “any part of the reduction” for “such part of the reduction”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1979 AmendmentAmendment by Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an

Effective Date

note under section 2581 of this title. Staging of Certain Tariff Reductions Pub. L. 96–39, title V, § 503,
July 26, 1979, 93 Stat. 251, provided that: “(a) In General.—The aggregate reduction in the rate of duty applicable to items described in this subsection in effect on any day pursuant to a trade agreement entered into under section 101 of the Trade Act of 1974 [19 U.S.C. 2111] before
January 3, 1980, may exceed the limitation in section 109(a) of such Act (19 U.S.C. 2119):“(1) Items amended under section 223(d) of this Act [items 402.00 to 413.51 of the Tariff Schedules] to the extent that they apply to articles which the President determines were not imported into the United States before
January 1, 1978, and were not produced in the United States before
May 1, 1978. “(2)(A) Items to the extent that they apply to articles which the President determines are not import sensitive and are the product of a least developed developing country as defined in the United Nations General Assembly list of “Least Developed Countries” and which are beneficiary developing countries under section 502 of the Trade Act of 1974 [19 U.S.C. 2462]. “(B) The President may at any time suspend the treatment accorded under subparagraph (A) in which case the aggregate reduction in effect for such products shall be the reduction in effect for countries other than least developed developing countries. “(3) Item 628.57. Notwithstanding the first sentence of this subsection, the limitation in section 109(a) of the Trade Act of 1974 may be exceeded only to the extent necessary to permit an aggregate reduction of 4.8 percent ad valorem in the rate of duty in effect under such item during the first 1-year period after the

Effective Date

of the first reduction in the rate of duty proclaimed for such item. “(4) Items 132.50, 170.10, 170.15, 170.20, 177.62, 186.15, and 429.47. “(5) Items 306.31, 306.32, 306.33, and 306.34. Notwithstanding subsection (a), the limitation in section 109(a) of the Trade Act of 1974 may be exceeded only to the extent necessary to permit the total reduction proclaimed under section 101 of the Trade Act of 1974 relating to such item to take effect within 2 years after the

Effective Date

of the first reduction in the rate of duty proclaimed for such item. “(6) Items for which the President determines the

Effective Date

of the first reduction will be after
June 30, 1980, and before
January 1, 1981, to the extent necessary to permit the second reduction to take effect on
January 1, 1981. “(b) Opportunity for Comment.—Before making any determination under subsection (a)(1) and (2), the President shall provide interested parties an opportunity to comment and shall publish his final determinations in the Federal Register before
July 1, 1980.”

Reference

Citations & Metadata

Citation

19 U.S.C. § 2119

Title 19Customs Duties

Last Updated

Apr 6, 2026

Release point: 119-73