§2133 — Title 19 Customs Duties | U.S. Code

Summary

The President may make trade deals with a foreign country or its government agency to give new trade concessions as compensation when the United States takes certain tariff actions under part 1 of subchapter II, subchapter III, or part 2 of subchapter IV, or when a judicial or administrative tariff reclassification becomes final after August 23, 1988. The President may also change or continue duties, duty-free status, or excise treatment as needed to carry out those deals. Any cut in a duty rate cannot go below 70 percent of the current rate. For intermediate stages under section 2902(a), each stage may be cut by at most 30 percent and the final stage must be at least 70 percent of the final rate under section 2902(a). The President may exceed those limits a little to make duty math simpler, but only by the smaller of the gap to the next lower whole number or one-half of 1 percent ad valorem. Concessions given under this authority must be reduced and ended on a timetable similar to the one in sections 2253(e) and 2254. Before making a deal, the President must consider whether the foreign country failed to honor trade concessions that benefit the United States and whether that failure was adequately offset. The authority in section 2902 must be used for granting these new concessions until that authority ends. This section applies to actions under subchapter III only if the President decides it is needed to meet the United States’ international obligations.

Title 19, §2133

Customs Duties — Source: USLM XML via OLRC

(a)Whenever—

(1)any action taken under part 1 of subchapter II or subchapter III, or under part 2 of subchapter IV of this chapter; or

(2)any judicial or administrative tariff reclassification that becomes final after August 23, 1988;

(A)may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and

(B)may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.

(b)(1)No proclamation shall be made pursuant to subsection (a) decreasing any rate of duty to a rate which is less than 70 percent of the existing rate of duty.

(2)Where the rate of duty in effect at any time is an intermediate stage under section 2902(a) of this title, the proclamation made pursuant to subsection (a) may provide for the reduction of each rate of duty at each such stage proclaimed under such section 2902(a) of this title by not more than 30 percent of such rate of duty, and may provide for a final rate of duty which is not less than 70 percent of the rate of duty proclaimed as the final stage under such section 2902(a) of this title.

(3)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 limitations provided by paragraphs (1) and (2) of this subsection by not more than the lesser of—

(A)the difference between such limitation and the next lower whole number, or

(B)one-half of 1 percent ad valorem.

(4)Any concessions granted under subsection (a)(1) shall be reduced and terminated according to substantially the same time schedule for reduction applicable to the relevant action under section 2253(e) and 2254 of this title.

(c)Before entering into any trade agreement under this section with any foreign country or instrumentality, the President shall consider whether such country or instrumentality has violated trade concessions of benefit to the United States and such violation has not been adequately offset by the action of the United States or by such country or instrumentality.

(d)Notwithstanding the provisions of subsection (a), the authority delegated under section 2902 of this title shall be used for the purpose of granting new concessions as compensation within the meaning of this section until such authority terminates.

(e)The provisions of this section shall apply by reason of action taken under subchapter III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2000—Subsec. (a)(1). Pub. L. 106–286 inserted “, or under part 2 of subchapter IV of this chapter” after “subchapter III of this chapter”. 1988—Subsec. (a). Pub. L. 100–418, § 1104(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Whenever any action has been taken under section 2253 of this title to increase or impose any duty or other import restriction, the President— “(1) may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and “(2) may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.” Subsec. (b)(2). Pub. L. 100–418, § 1104(2), substituted “section 2902(a)” for “section 2119” and “such section 2902(a)” for “section 2111” in two places. Subsec. (b)(4). Pub. L. 100–418, § 1401(b)(1)(A), substituted “action under section 2253(e) and 2254 of this title” for “import relief under section 2253(h) of this title”. Subsec. (d). Pub. L. 100–418, § 1104(3), substituted “section 2902” for “section 2111”. Subsec. (e). Pub. L. 100–418, § 1104(4), added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to investigations initiated under part 1 (§ 2251 et seq.) of subchapter III of this chapter on or after that date, see section 1401(c) of Pub. L. 100–418, set out as a note under section 2251 of this title.

§2133 Compensation authority