§3803 — Title 19 Customs Duties | U.S. Code

Summary

The President may make trade deals and change U.S. import taxes and rules when he finds that foreign or U.S. import duties or restrictions are unfairly hurting American trade and the deals would help the goals of this law. He can enter into such agreements before July 1, 2005, or before July 1, 2007 if Congress extends the special trade-approval procedures. The President may put into effect changes that lower, keep, or add duties, or keep duty-free or excise treatment, but there are limits: no duty can be cut to less than half of the rate that applied on August 6, 2002 (except duties that were 5% or less on that date), import-sensitive farm products cannot be cut below the Uruguay Round rate, and no duty can be raised above the August 6, 2002 rate. Duty cuts normally must be phased in over time (annual steps of either 3% ad valorem or one-tenth of the total cut, whichever is larger), unless the item is not produced in the United States. The President may round yearly cuts a little to make calculations simpler. Any duty change that is barred by those limits can only take effect if Congress includes and enacts authorization for it in an implementing bill. The President may also agree to changes listed in Schedule XX under World Trade Organization talks, with the required consultations and waiting periods. When a foreign or U.S. duty, import rule, or other trade barrier is harming U.S. trade or the economy (or is likely to), the President may enter agreements to reduce, remove, prohibit, or limit such barriers. Any agreement must make progress toward the goals in section 3802 and meet the conditions in section 3804. Implementing bills that approve an agreement and provide any needed changes in U.S. law follow the trade authorities procedures in section 2191. If the President seeks to extend those procedures to agreements made after June 30, 2005, he must ask Congress by April 1, 2005, provide reports and schedules, and the Advisory Committee on Trade Policy and the International Trade Commission must report by June 1, 2005. Reports can be classified. The President must also begin or expand sector-by-sector negotiations (for example, agriculture, services, intellectual property, industrial goods, government procurement, IT, environmental and medical technology, civil aircraft, and infrastructure) when doing so is feasible, timely, and would help the United States.

Title 19, §3803

Customs Duties — Source: USLM XML via OLRC

(a)(1)Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President—

(A)may enter into trade agreements with foreign countries before—

(i)July 1, 2005; or

(ii)July 1, 2007, if trade authorities procedures are extended under subsection (c); and

(B)may, subject to paragraphs (2) and (3), proclaim—

(i)such modification or continuance of any existing duty,

(ii)such continuance of existing duty-free or excise treatment, or

(iii)such additional duties,

(2)No proclamation may be made under paragraph (1) that—

(A)reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on August 6, 2002) to a rate of duty which is less than 50 percent of the rate of such duty that applies on August 6, 2002;

(B)reduces the rate of duty below that applicable under the Uruguay Round Agreements, on any import sensitive agricultural product; or

(C)increases any rate of duty above the rate that applied on August 6, 2002.

(3)(A)Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if—

(i)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 under paragraph (1) to carry out such agreement with respect to such article; and

(ii)a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction.

(B)No staging is required under subparagraph (A) with respect to a duty reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph.

(4)If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by an amount equal to the lesser of—

(A)the difference between the reduction without regard to this paragraph and the next lower whole number; or

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

(5)A rate of duty reduction that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction is included within an implementing bill provided for under section 3805 of this title and that bill is enacted into law.

(6)Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the consultation and layover requirements of section 115 of the Uruguay Round Agreements Act [19 U.S.C. 3524], the President may proclaim the modification of any duty or staged rate reduction of any duty set forth in Schedule XX, as defined in section 2(5) of that Act [19 U.S.C. 3501(5)], if the United States agrees to such modification or staged rate reduction in a negotiation for the reciprocal elimination or harmonization of duties under the auspices of the World Trade Organization.

(7)Nothing in this subsection shall limit the authority provided to the President under section 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).

(b)(1)(A)Whenever the President determines that—

(i)one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy, or

(ii)the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect,

(B)The President may enter into a trade agreement under subparagraph (A) with foreign countries providing for—

(i)the reduction or elimination of a duty, restriction, barrier, or other distortion described in subparagraph (A); or

(ii)the prohibition of, or limitation on the imposition of, such barrier or other distortion.

(C)The President may enter into a trade agreement under this paragraph before—

(i)July 1, 2005; or

(ii)July 1, 2007, if trade authorities procedures are extended under subsection (c).

(2)A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 3802(a) and (b) of this title and the President satisfies the conditions set forth in section 3804 of this title.

(3)(A)The provisions of section 2191 of this title (in this chapter referred to as “trade authorities procedures”) apply to a bill of either House of Congress which contains provisions described in subparagraph (B) to the same extent as such section 2191 of this title applies to implementing bills under that section. A bill to which this paragraph applies shall hereafter in this chapter be referred to as an “implementing bill”.

(B)The provisions referred to in subparagraph (A) are—

(i)a provision approving a trade agreement entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and

(ii)if changes in existing laws or new statutory authority are required to implement such trade agreement or agreements, provisions, necessary or appropriate to implement such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority.

(c)(1)Except as provided in section 3805(b) of this title—

(A)the trade authorities procedures apply to implementing bills submitted with respect to trade agreements entered into under subsection (b) before July 1, 2005; and

(B)the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)—

(i)the President requests such extension under paragraph (2); and

(ii)neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before July 1, 2005.

(2)If the President is of the opinion that the trade authorities procedures should be extended to implementing bills described in paragraph (1)(B), the President shall submit to the Congress, not later than April 1, 2005, a written report that contains a request for such extension, together with—

(A)a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submitting such agreements to the Congress for approval;

(B)a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter, and a statement that such progress justifies the continuation of negotiations; and

(C)a statement of the reasons why the extension is needed to complete the negotiations.

(3)(A)The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 2155 of this title of the President’s decision to submit a report to the Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but not later than June 1, 2005, a written report that contains—

(i)its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter; and

(ii)a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved.

(B)The President shall promptly inform the International Trade Commission of the President’s decision to submit a report to the Congress under paragraph (2). The International Trade Commission shall submit to the Congress as soon as practicable, but not later than June 1, 2005, a written report that contains a review and analysis of the economic impact on the United States of all trade agreements implemented between August 6, 2002, and the date on which the President decides to seek an extension requested under paragraph (2).

(4)The reports submitted to the Congress under paragraphs (2) and (3), or any portion of such reports, may be classified to the extent the President determines appropriate.

(5)(A)For purposes of paragraph (1), the term “extension disapproval resolution” means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: “That the __ disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.”, with the blank space being filled with the name of the resolving House of the Congress.

(B)Extension disapproval resolutions—

(i)may be introduced in either House of the Congress by any member of such House; and

(ii)shall be referred, in the House of Representatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules.

(C)The provisions of section 2192(d) and (e) of this title (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions.

(D)It is not in order for—

(i)the Senate to consider any extension disapproval resolution not reported by the Committee on Finance;

(ii)the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or

(iii)either House of the Congress to consider an extension disapproval resolution after June 30, 2005.

(d)In order to contribute to the continued economic expansion of the United States, the President shall commence negotiations covering tariff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. Such sectors include agriculture, commercial services, intellectual property rights, industrial and capital goods, government procurement, information technology products, environmental technology and services, medical equipment and services, civil aircraft, and infrastructure products. In so doing, the President shall take into account all of the principal negotiating objectives set forth in section 3802(b) of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Bipartisan Trade Promotion Authority Act of 2002, referred to in subsec. (c)(5)(A), is title XXI of Pub. L. 107–210, div. B, Aug. 6, 2002, 116 Stat. 993, which is classified principally to this chapter. section 2103 of the Act is classified to this section. For complete classification of title XXI to the Code, see section 3801(a) of this title and Tables.

Amendments

2004—Subsec. (a)(1)(A). Pub. L. 108–429, § 2004(a)(17)(A), substituted “July 1” for “June 1” in two places. Subsec. (b)(1)(C). Pub. L. 108–429, § 2004(a)(17)(B), substituted “July 1” for “June 1” in two places. Subsec. (c)(1)(B)(ii). Pub. L. 108–429, § 2004(a)(17)(C)(i), substituted “July 1” for “June 1”. Subsec. (c)(2). Pub. L. 108–429, § 2004(a)(17)(C)(ii), substituted “April 1” for “March 1” in introductory provisions. Subsec. (c)(3). Pub. L. 108–429, § 2004(a)(17)(C)(iii), substituted “June 1” for “May 1” in two places.

Executive Documents

Delegation of Functions For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under section 3801 of this title.

§3803 Trade agreements authority