§4032 — Title 19 Customs Duties | U.S. Code

Summary

The Secretary of the Treasury must add extra tariffs on certain CAFTA–DR agricultural imports when a country’s shipments for a year go above 130 percent of the volume allowed for that year in the U.S. schedule (the table in Appendix I). These extra duties are added on top of any other duties under section 4031. No extra duty is charged if the import is already covered by U.S. import relief under part A of subchapter III of this chapter or chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.). The extra duty stops once the U.S. Schedule to Annex 3.3 requires that the good be duty-free. Within 60 days after the first extra duty is charged in a calendar year, the Secretary must tell the supplying country in writing and send the data used to make the decision. Definitions (one line each): “applicable NTR (MFN) rate of duty” – the smaller of two column‑1 general duty rates (the current rate when the extra duty is imposed or the rate the day before the Agreement took effect). “schedule rate of duty” – the rate listed in the U.S. Schedule to Annex 3.3. “safeguard good” – a good listed in the U.S. Schedule to Annex 3.15 that qualifies as originating under section 4033 and for which a preference claim was made (U.S. operations or materials are treated as if from a non‑party). For goods under HTS 1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, or 2008.11.60, the extra duty equals 100% of the difference between the applicable NTR (MFN) rate and the schedule rate in years 1–5, 75% in years 6–10, and 50% in years 11–14. For other safeguard goods, the extra duty equals 100% of that difference in years 1–14, 75% in years 15–17, and 50% in years 18–19. Year 1 means the calendar year the Agreement enters into force.

Title 19, §4032

Customs Duties — Source: USLM XML via OLRC

(a)(1)This subsection applies to additional duties assessed under subsection (b).

(2)For purposes of subsection (b), the term “applicable NTR (MFN) rate of duty” means, with respect to a safeguard good, a rate of duty that is the lesser of—

(A)the column 1 general rate of duty that would, at the time the additional duty is imposed under subsection (b), apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good; or

(B)the column 1 general rate of duty that would, on the day before the date on which the Agreement enters into force, apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good.

(3)For purposes of subsection (b), the term “schedule rate of duty” means, with respect to a safeguard good, the rate of duty for that good that is set out in the Schedule of the United States to Annex 3.3 of the Agreement.

(4)In this section, the term “safeguard good” means a good—

(A)that is included in the Schedule of the United States to Annex 3.15 of the Agreement;

(B)that qualifies as an originating good under section 4033 of this title, except that operations performed in or material obtained from the United States shall be considered as if the operations were performed in, and the material was obtained from, a country that is not a party to the Agreement; and

(C)for which a claim for preferential tariff treatment under the Agreement has been made.

(5)No additional duty shall be assessed on a good under subsection (b) if, at the time of entry, the good is subject to import relief under—

(A)part A of subchapter III of this chapter; or

(B)chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).

(6)The assessment of an additional duty on a good under subsection (b) shall cease to apply to that good on the date on which duty-free treatment must be provided to that good under the Schedule of the United States to Annex 3.3 of the Agreement.

(7)Not later than 60 days after the Secretary of the Treasury first assesses an additional duty in a calendar year on a good under subsection (b), the Secretary shall notify the country whose good is subject to the additional duty in writing of such action and shall provide to that country data supporting the assessment of the additional duty.

(b)(1)In addition to any duty proclaimed under subsection (a) or (b) of section 4031 of this title, and subject to subsection (a), the Secretary of the Treasury shall assess a duty, in the amount determined under paragraph (2), on a safeguard good of a CAFTA–DR country imported into the United States in a calendar year if the Secretary determines that, prior to such importation, the total volume of that safeguard good of such country that is imported into the United States in that calendar year exceeds 130 percent of the volume that is set out for that safeguard good in the corresponding year in the table for that country contained in Appendix I of the General Notes to the Schedule of the United States to Annex 3.3 of the Agreement. For purposes of this subsection, year 1 in that table corresponds to the calendar year in which the Agreement enters into force.

(2)The additional duty on a safeguard good under this subsection shall be—

(A)in the case of a good classified under subheading 1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, or 2008.11.60 of the HTS—

(i)in years 1 through 5, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty;

(ii)in years 6 through 10, an amount equal to 75 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and

(iii)in years 11 through 14, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and

(B)in the case of any other safeguard good—

(i)in years 1 through 14, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty;

(ii)in years 15 through 17, an amount equal to 75 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and

(iii)in years 18 and 19, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty.

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

Part A of subchapter III of this chapter, referred to in subsec. (a)(5)(A), was in the original “subtitle A of title III of this Act”, meaning subtitle A (§§ 311–316) of title III of Pub. L. 109–53, Aug. 2, 2005, 119 Stat. 488, which enacted part A of subchapter III (§ 4061 et seq.) of this chapter and amended section 2252 of this title. For complete classification of subtitle A to the Code, see Tables. The Trade Act of 1974, referred to in subsec. (a)(5)(B), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Chapter 1 of title II of the Act is classified generally to part 1 (§ 2251 et seq.) of subchapter II of chapter 12 of this title. For complete classification of this Act to the Code, see section 2101 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.

§4032 Additional Duties on Certain Agricultural Goods