Title 19Customs DutiesRelease 119-73

§2135 Termination and withdrawal authority

Title 19 › Chapter CHAPTER 12— - TRADE ACT OF 1974 › Subchapter SUBCHAPTER I— - NEGOTIATING AND OTHER AUTHORITY › Part Part 2— - Other Authority › § 2135

Last updated Apr 6, 2026|Official source

Summary

Trade agreements made under this law must include an end date no more than 3 years after they start. If they are not ended then, they can be ended later with no more than 6 months’ notice. The President can end any proclamation issued under this law at any time. If the United States withdraws, suspends, or changes its obligations under a trade agreement under this chapter or under sections 1821 or 1351, the President may impose higher duties or other import limits as needed to carry out U.S. rights or obligations. Any duty increase cannot raise an existing duty by more than 50 percent above the rate in column 2 of the Tariff Schedules of the United States as of January 1, 1975, or by more than 20 percent ad valorem above the rate on January 1, 1975, whichever is higher. If another country stops giving trade benefits to the United States without fair compensation, the President may stop similar benefits for that country and impose duties under the same limits to get compensation and protect U.S. economic interests, including the balance of payments. Duties or import limits used to carry out such agreements stay in effect for 1 year after the agreement ends or the U.S. withdraws, unless the President restores prior rates by proclamation. Within 60 days after an end or withdrawal, the President must send Congress recommendations on appropriate duty rates. The President must hold a public hearing before taking actions above, unless immediate action is needed for the national interest; if so, a hearing must follow promptly.

Full Legal Text

Title 19, §2135

Customs Duties — Source: USLM XML via OLRC

(a)Every trade agreement entered into under this chapter shall be subject to termination, in whole or in part, or withdrawal, upon due notice, at the end of a period specified in the agreement. Such period shall be not more than 3 years from the date on which the agreement becomes effective. If the agreement is not terminated or withdrawn from at the end of the period so specified, it shall be subject to termination or withdrawal thereafter upon not more than 6 months’ notice.
(b)The President may at any time terminate, in whole or in part, any proclamation made under this chapter.
(c)Whenever the United States, acting in pursuance of any of its rights or obligations under any trade agreement entered into pursuant to this chapter, section 1821 of this title, or section 1351 of this title, withdraws, suspends, or modifies any obligation with respect to the trade of any foreign country or instrumentality thereof, the President is authorized to proclaim increased duties or other import restrictions, to the extent, at such times, and for such periods as he deems necessary or appropriate, in order to exercise the rights or fulfill the obligations of the United States. No proclamation shall be made under this subsection increasing any existing duty to a rate more than 50 percent above the rate set forth in rate column numbered 2 of the Tariff Schedules of the United States, as in effect on January 1, 1975, or 20 percent ad valorem above the rate existing on January 1, 1975, whichever is higher.
(d)Whenever any foreign country or instrumentality withdraws, suspends, or modifies the application of trade agreement obligations of benefit to the United States without granting adequate compensation therefor, the President, in pursuance of rights granted to the United States under any trade agreement and to the extent necessary to protect United States economic interests (including United States balance of payments), may—
(1)withdraw, suspend, or modify the application of substantially equivalent trade agreement obligations of benefit to such foreign country or instrumentality, and
(2)proclaim under subsection (c) such increased duties or other import restrictions as are appropriate to effect adequate compensation from such foreign country or instrumentality.
(e)Duties or other import restrictions required or appropriate to carry out any trade agreement entered into pursuant to this chapter, section 1821 of this title, or section 1351 of this title shall not be affected by any termination, in whole or in part, of such agreement or by the withdrawal of the United States from such agreement and shall remain in effect after the date of such termination or withdrawal for 1 year, unless the President by proclamation provides that such rates shall be restored to the level at which they would be but for the agreement. Within 60 days after the date of any such termination or withdrawal, the President shall transmit to the Congress his recommendations as to the appropriate rates of duty for all articles which were affected by the termination or withdrawal or would have been so affected but for the preceding sentence.
(f)Before taking any action pursuant to subsection (b), (c), or (d), the President shall provide for a public hearing during the course of which interested persons shall be given a reasonable opportunity to be present, to produce evidence, and to be heard, unless he determines that such prior hearings will be contrary to the national interest because of the need for expeditious action, in which case he shall provide for a public hearing promptly after such action.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (b), (c), (e), was in the original “this Act”, meaning Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see

References in Text

note set out under section 2101 of this title and Tables. The Tariff Schedules of the United States, referred to in subsec. (c), to be treated as a reference to the Harmonized Tariff Schedule pursuant to section 3012 of this title. The Harmonized Tariff Schedule is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

Statutory Notes and Related Subsidiaries

Authority To Increase Duties on Imports of Certain Tobacco and Tobacco Products Pub. L. 103–465, title IV, § 421, Dec. 8, 1994, 108 Stat. 4964, provided that: “(a) In General.—In the application of section 125(c) of the Trade Act of 1974 (19 U.S.C. 2135) with respect to any item provided for in subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 2401.30.60, 2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of the HTS, ‘350’ shall be substituted for ‘20’ where it appears in such section. “(b)

Effective Date

.—This section shall take effect on the date of the enactment of this Act [Dec. 8, 1994].” Tariff Reductions Under Trade Agreements Act of 1979 Pub. L. 96–39, title V, § 502(b), July 26, 1979, 93 Stat. 251, provided that: “For purposes of section 125 (19 U.S.C. 2135) of the Trade Act of 1974 the

Amendments

made under section 508, 511, 512, and 513 [amending items 135.41, 135.42, 750.26, 750.27, 750.28, 870.45, 905.10, and 905.11 of the Tariff Schedules of the United States. See Publication of Tariff Schedules note under section 1202 of this title] not including the rates of duty appearing in rate column numbered 2, if any, shall be considered to be trade agreement obligations entered into under the Trade Act of 1974 [this chapter], of benefit to foreign countries or instrumentalities.” Pub. L. 96–39, title VI, § 601(b), July 26, 1979, 93 Stat. 268, provided that: “For purposes of section 125 of the Trade Act of 1974 [this section], the

Amendments

made under subsection (a), if any [amending the Tariff Schedules of the United States with regard to civil aircraft (see Publication of Tariff Schedules note under section 1202), and, amending section 1466 of this title], shall be considered to be trade agreement obligations entered into under the Trade Act of 1974 [this chapter] of benefit to foreign countries or instrumentalities.” Rates of duty proclaimed under section 855(a) of Pub. L. 96–39 (covering spirits, spiritous beverages, and beverage preparations) to be deemed, for purposes of this section, a trade agreement obligation which is of benefit to a foreign country or instrumentality, and, in the case of any item affected by such a proclamation, the last sentence of subsec. (c) of this section to be applied as if it authorized (in addition to any increase authorized therein) an increase up to the rate of duty for such item set forth in rate column numbered 1 of subpart D of part 12 of schedule 1 of the Tariff Schedules of the United States (see Publication of Tariff Schedules note under section 1202 of this title) as amended by section 852 of Pub. L. 96–39, see section 855(b) of Pub. L. 96–39. Review of International Trade in Alcoholic Beverages Pub. L. 96–39, title VIII, § 854,
July 26, 1979, 93 Stat. 294, provided that: “(a) Review.—The President shall review foreign tariff and nontariff barriers affecting United States exports of alcoholic beverages. Not later than
January 1, 1982, the President shall report to the Congress the results of his review. “(b) Withdrawal of Concessions.—If, as the result of his review under subsection (a), the President determines that a foreign country or instrumentality has not implemented concessions to the United States affecting alcoholic beverages which were negotiated in trade agreements entered into before
January 3, 1980, under the authority of title I of the Trade Act of 1974 [this subchapter], the President shall withdraw, suspend, or modify the application of substantially equivalent trade agreement obligations of benefit to such foreign country or instrumentality under section 125 of the Trade Act of 1974 (19 U.S.C. 2135). “(c) Further Negotiations To Remove Barriers.—If, as the result of his review under subsection (a), the President determines that foreign tariff or nontariff barriers are unduly burdening or restricting the United States exports of alcoholic beverages, he shall enter into negotiations under the Trade Act of 1974 [this chapter] to eliminate or reduce such barriers.”

Reference

Citations & Metadata

Citation

19 U.S.C. § 2135

Title 19Customs Duties

Last Updated

Apr 6, 2026

Release point: 119-73