PRIA, Government Policy, Made Personal

Summary

The President can change U.S. import duties or keep goods duty-free or add new duties when needed to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28 and Annexes 3.3, 3.27, and 3.28 of the Agreement. When the Agreement starts for a CAFTA–DR country, the President must end that country’s designation as a beneficiary developing country under title V of the Trade Act of 1974, and must end its beneficiary country status under the Caribbean Basin Economic Recovery Act. Even so, each such country will still count as a CBERA beneficiary for three specific legal purposes: (i) the items in sections 1677(7)(G)(ii)(III) and 1677(7)(H), (ii) the duty-free rule in paragraph 12 of Appendix I of the General Notes to the U.S. Schedule to Annex 3.3, and (iii) section 274(h)(6)(B) of title 26. Under the consultation and waiting rules in section 4014, the President may also make other tariff changes or keep duty treatments in place, including agreed staging changes in Annex 3.3, to keep the trade concessions balanced. For goods listed with specific or compound duties in the Schedule to Annex 3.3, the President may replace those rates with an equivalent ad valorem rate.

Title 19, §4031

Customs Duties, Source: USLM XML via OLRC

(a)Tariff modifications provided for in the Agreement

(1)Proclamation authority

The President may proclaim—

(A)such modifications or continuation of any duty,

(B)such continuation of duty-free or excise treatment, or

(C)such additional duties,

as the President determines to be necessary or appropriate to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.

(2)Effect on GSP status

Notwithstanding section 502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the President shall terminate the designation of each CAFTA–DR country as a beneficiary developing country for purposes of title V of the Trade Act of 1974 [19 U.S.C. 2461 et seq.] on the date the Agreement enters into force with respect to that country.

(3)Effect on CBERA status

(A)In general

Notwithstanding section 212(a) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)), the President shall terminate the designation of each CAFTA–DR country as a beneficiary country for purposes of that Act [19 U.S.C. 2701 et seq.] on the date the Agreement enters into force with respect to that country.

(B)Exception

Notwithstanding subparagraph (A), each such country shall be considered a beneficiary country under section 212(a) of the Caribbean Basin Economic Recovery Act [19 U.S.C. 2702(a)], for purposes of— (i)

(ii)the duty-free treatment provided under paragraph 12 of Appendix I of the General Notes to the Schedule of the United States to Annex 3.3 of the Agreement; and

(iii)section 274(h)(6)(B) of title 26.

(b)Other tariff modifications

Subject to the consultation and layover provisions of section 4014 of this title, the President may proclaim—

(1)such modifications or continuation of any duty,

(2)such modifications as the United States may agree to with a CAFTA–DR country regarding the staging of any duty treatment set forth in Annex 3.3 of the Agreement,

(3)such continuation of duty-free or excise treatment, or

(4)such additional duties,

as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions provided for by the Agreement.

(c)Conversion to ad valorem rates

For purposes of subsections (a) and (b), with respect to any good for which the base rate in the Schedule of the United States to Annex 3.3 of the Agreement is a specific or compound rate of duty, the President may substitute for the base rate an ad valorem rate that the President determines to be equivalent to the base rate.

Notes & Related Subsidiaries

Termination of SectionFor termination of section by section 107(d) of Pub. L. 109–53, see Effective and Termination Dates note below.

Editorial Notes

References in Text

The Trade Act of 1974, referred to in subsec. (a)(2), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Title V of the Act is classified generally to subchapter V (§ 2461 et seq.) of chapter 12 of this title. For complete classification of this Act to the Code, see section 2101 of this title and Tables. The Caribbean Basin Economic Recovery Act, referred to in subsec. (a)(3)(A), is title II of Pub. L. 98–67, Aug. 5, 1983, 97 Stat. 384, which is classified principally to chapter 15 (§ 2701 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 2701 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective and Termination Dates Section effective on the date the Dominican Republic-Central America-United States Free Trade Agreement enters into force (Mar. 1, 2006) and to cease to have effect on the date the Agreement ceases to be in force with respect to the United States, and, during any period in which a country ceases to be a CAFTA–DR country, to cease to have effect with respect to such country, see section 107 of Pub. L. 109–53, set out as a note under section 4001 of this title.

§4031 Tariff Modifications