Title 19Customs DutiesRelease 119-73

§2437 Procedure for Congressional approval or disapproval of extension of nondiscriminatory treatment and Presidential reports

Title 19 › Chapter CHAPTER 12— - TRADE ACT OF 1974 › Subchapter SUBCHAPTER IV— - TRADE RELATIONS WITH COUNTRIES NOT RECEIVING NONDISCRIMINATORY TREATMENT › Part Part 1— - Trade Relations With Certain Countries › § 2437

Last updated Apr 6, 2026|Official source

Summary

When the President makes an official announcement under section 2434 to give a foreign country equal trade treatment for its products, he must quickly send Congress the announcement, the agreement it would put into effect, and his reasons. He must also send Congress the first report he files under section 2432(b) or 2439(b) for a nonmarket-economy country, and a report every year on or before December 31 under those same sections. The announcement and agreement only take effect if Congress passes the joint resolution described in section 2191(b)(3) and it becomes law. If Congress passes the disapproval joint resolution described in section 2192(a)(1)(B) within 90 days after Congress gets the President’s report, then starting the day after a 60-day waiting period from when that resolution becomes law, the country loses equal trade treatment. Its goods will be charged the rates in rate column numbered 2 of the Harmonized Tariff Schedule of the United States, it cannot get U.S. government credit or investment guarantees, and no commercial agreement may be made with it under this part. If the President vetoes the disapproval, Congress can override the veto; the veto is treated as overridden in time only if both Houses vote to override by the later of the last day of the 90-day period or the last day of the 15-day period (excluding days under section 2194(b)) after Congress gets the veto message.

Full Legal Text

Title 19, §2437

Customs Duties — Source: USLM XML via OLRC

(a)Whenever the President issues a proclamation under section 2434 of this title extending nondiscriminatory treatment to the products of any foreign country, he shall promptly transmit to the House of Representatives and to the Senate a document setting forth the proclamation and the agreement the proclamation proposes to implement, together with his reasons therefor.
(b)The President shall transmit to the House of Representatives and the Senate a document containing the initial report submitted by him under section 2432(b) or 2439(b) of this title with respect to a nonmarket economy country. On or before December 31 of each year, the President shall transmit to the House of Representatives and the Senate, a document containing the report required by section 2432(b) or 2439(b) of this title as the case may be, to be submitted on or before such December 31.
(c)(1)In the case of a document referred to in subsection (a), the proclamation set forth in the document may become effective and the agreement set forth in the document may enter into force and effect only if a joint resolution described in section 2191(b)(3) of this title that approves of the extension of nondiscriminatory treatment to the products of the country concerned is enacted into law.
(2)In the case of a document referred to in subsection (b) which contains a report submitted by the President under section 2432(b) or 2439(b) of this title with respect to a nonmarket economy country, if, before the close of the 90-day period beginning on the day on which such document is delivered to the House of Representatives and to the Senate, a joint resolution described in section 2192(a)(1)(B) of this title is enacted into law that disapproves of the report submitted by the President with respect to such country, then, beginning with the day after the end of the 60-day period beginning with the date of the enactment of such resolution of disapproval, (A) nondiscriminatory treatment shall not be in force with respect to the products of such country, and the products of such country shall be dutiable at the rates set forth in rate column numbered 2 of the Harmonized Tariff Schedule of the United States, (B) such country may not participate in any program of the Government of the United States which extends credit or credit guarantees or investment guarantees, and (C) no commercial agreement may thereafter be concluded with such country under this subchapter. If the President vetoes the joint resolution, the joint resolution shall be treated as enacted into law before the end of the 90-day period under this paragraph if both Houses of Congress vote to override such veto on or before the later of the last day of such 90-day period or the last day of the 15-day period (excluding any day described in section 2194(b) of this title) beginning on the date the Congress receives the veto message from the President.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Harmonized Tariff Schedule of the United States, referred to in subsec. (c)(2), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

Amendments

1990—Subsec. (c)(1). Pub. L. 101–382, § 132(b)(3)(A), added par. (1) and struck out former par. (1) which read as follows: “In the case of a document referred to in subsection (a) of this section (other than a document to which paragraph (2) applies), the proclamation set forth therein may become effective and the agreement set forth therein may enter into force and effect only if the House of Representatives and the Senate adopt, by an affirmative vote of a majority of those present and voting in each House, a concurrent resolution of approval (under the procedures set forth in section 2191 of this title) of the extension of nondiscriminatory treatment to the products of the country concerned.” Subsec. (c)(2). Pub. L. 101–382 struck out par. (2) and redesignated par. (3) as (2), and substituted “a joint resolution described in section 2192(a)(1)(B) of this title is enacted into law that disapproves” for “either the House of Representatives or the Senate adopts, by an affirmative vote of a majority of those present and voting in that House, a resolution of disapproval (under the procedures set forth in section 2192 of this title)” and “the end of the 60-day period beginning with the date of the enactment” for “the date of the adoption” and inserted at end “If the President vetoes the joint resolution, the joint resolution shall be treated as enacted into law before the end of the 90-day period under this paragraph if both Houses of Congress vote to override such veto on or before the later of the last day of such 90-day period or the last day of the 15-day period (excluding any day described in section 2194(b) of this title) beginning on the date the Congress receives the veto message from the President.” Former par. (2) related to

Effective Date

of proclamation extending nondiscriminatory treatment to products of a foreign country and of agreement proclamation proposed to implement and related to resolution of disapproval of such extension as to certain countries. Subsec. (c)(3). Pub. L. 101–382, § 132(b)(3)(B), redesignated par. (3) as (2). 1988—Subsec. (c)(3). Pub. L. 100–418 substituted “Harmonized Tariff Schedule of the United States” for “Tariff Schedules of the United States”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as an

Effective Date

note under section 3001 of this title.

Reference

Citations & Metadata

Citation

19 U.S.C. § 2437

Title 19Customs Duties

Last Updated

Apr 6, 2026

Release point: 119-73