19 U.S.C. § 2701 — Authority to grant duty-free treatment

Page 768 TITLE 19—CUSTOMS DUTIES § 2612 1 So in original. Probably should be ‘‘United’’. (B) if subparagraph (A) does not apply, has been within the United States for a period of not less than ten consecutive years and has been exhibited for not less than five years during such period in a recognized museum or religious or secular monument or similar institution in the Unites 1 States open to the public; or (C) if subparagraphs (A) and (B) do not apply, has been within the United States for a period of not less than ten consecutive years and the State Party concerned has re- ceived or should have received during such period fair notice (through such adequate and accessible publication, or other means, as the Secretary shall by regulation pre- scribe) of its location within the United States; and (D) if none of the preceding subparagraphs apply, has been within the United States for a period of not less than twenty consecutive years and the claimant establishes that it purchased the material or article for value without knowledge or reason to believe that it was imported in violation of law. (Pub. L. 97–446, title III, § 312, Jan. 12, 1983, 96 Stat. 2362.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the 90th day after Jan. 12, 1983, or on any date which the President shall prescribe and publish in the Federal Register, with exceptions, see section 315 of Pub. L. 97–446, set out as a note under sec- tion 2601 of this title. § 2612. Regulations The Secretary shall prescribe such rules and regulations as are necessary and appropriate to carry out the provisions of this chapter. (Pub. L. 97–446, title III, § 313, Jan. 12, 1983, 96 Stat. 2363.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the 90th day after Jan. 12, 1983, or on any date which the President shall prescribe and publish in the Federal Register, with exceptions, see section 315 of Pub. L. 97–446, set out as a note under sec- tion 2601 of this title. § 2613. Enforcement In the customs territory of the United States, and in the Virgin Islands, the provisions of this chapter shall be enforced by appropriate cus- toms officers. In any other territory or area within the United States, but not within such customs territory or the Virgin Islands, such provisions shall be enforced by such persons as may be designated by the President. (Pub. L. 97–446, title III, § 314, Jan. 12, 1983, 96 Stat. 2363.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the 90th day after Jan. 12, 1983, or on any date which the President shall prescribe and publish in the Federal Register, with exceptions, see section 315 of Pub. L. 97–446, set out as a note under sec- tion 2601 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of certain functions of President under this section, see Ex. Ord. No. 12555, Mar. 10, 1986, 51 F.R. 8475, set out as a note under section 2602 of this title. CHAPTER 15—CARIBBEAN BASIN ECONOMIC RECOVERY Sec. 2701. Authority to grant duty-free treatment. 2702. Beneficiary country. 2703. Eligible articles. 2703a. Special rules for Haiti. 2704. International Trade Commission reports on impact of Caribbean Basin Economic Recov- ery Program. 2705. Impact study by Secretary of Labor. 2706. Effective date. 2707. Center for the Study of Western Hemispheric Trade. § 2701. Authority to grant duty-free treatment The President may proclaim duty-free treat- ment (or other preferential treatment) for all el- igible articles from any beneficiary country in accordance with the provisions of this chapter. (Pub. L. 98–67, title II, § 211, Aug. 5, 1983, 97 Stat. 384; Pub. L. 106–200, title II, § 211(e)(1)(A), May 18, 2000, 114 Stat. 287.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title II of Pub. L. 98–67, Aug. 5, 1983, 97 Stat. 384, which is classified principally to this chapter. For complete classification of title II to the Code, see Short Title note set out below and Tables. AMENDMENTS 2000—Pub. L. 106–200 inserted ‘‘(or other preferential treatment)’’ after ‘‘treatment’’. Statutory Notes and Related Subsidiaries SHORT TITLE OF 2020 AMENDMENT Pub. L. 116–164, § 1, Oct. 10, 2020, 134 Stat. 758, provided that: ‘‘This Act [amending sections 58c and 2703 of this title and amending provisions set out as a note under section 3805 of this title] may be cited as the ‘Extension of the Caribbean Basin Economic Recovery Act’.’’ SHORT TITLE OF 2010 AMENDMENT Pub. L. 111–171, § 1, May 24, 2010, 124 Stat. 1194, pro- vided that: ‘‘This Act [amending sections 58c, 2703, and 2703a of this title and enacting provisions set out as notes under section 2703a of this title and section 6655 of Title 26, Internal Revenue Code] may be cited as the ‘Haiti Economic Lift Program Act of 2010’.’’ SHORT TITLE OF 2008 AMENDMENT Pub. L. 110–234, title XV, § 15401, May 22, 2008, 122 Stat. 1527, and Pub. L. 110–246, § 4(a), title XV, § 15401, June 18, 2008, 122 Stat. 1664, 2289, provided that: ‘‘This part [part I (§§ 15401–15412) of subtitle D of title XV of Pub. L. 110–246, amending sections 2703 and 2703a of this title and enacting provisions set out as notes under section 2703a of this title] may be cited as the ‘Haitian Hemi- spheric Opportunity through Partnership Encourage- ment Act of 2008’ or the ‘HOPE II Act’.’’ Page 769 TITLE 19—CUSTOMS DUTIES § 2701 [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.] SHORT TITLE OF 2006 AMENDMENT Pub. L. 109–432, div. D, title V, § 5001, Dec. 20, 2006, 120 Stat. 3181, provided that: ‘‘This title [enacting section 2703a of this title, amending sections 2703 and 3203 of this title, and enacting provisions set out as a note under section 2703 of this title] may be cited as the ‘Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006’.’’ SHORT TITLE OF 2000 AMENDMENT Pub. L. 106–200, title II, § 201, May 18, 2000, 114 Stat. 275, provided that: ‘‘This title [amending this section and sections 2702 to 2704, 3202, and 3204 of this title and enacting provisions set out as notes under this section] may be cited as the ‘United States-Caribbean Basin Trade Partnership Act’.’’ SHORT TITLE OF 1990 AMENDMENT Pub. L. 101–382, title II, § 201, Aug. 20, 1990, 104 Stat. 655, provided that: ‘‘This title [enacting section 226 of Title 20, Education, amending sections 1677, 2463, 2702, 2703, and 2706 of this title and section 936 of Title 26, In- ternal Revenue Code, enacting provisions set out as notes under this section and sections 1677, 2071, and 2703 of this title and section 936 of Title 26, and amending provisions set out as notes under section 2703 of this title] may be cited as the ‘Caribbean Basin Economic Recovery Expansion Act of 1990’.’’ SHORT TITLE Pub. L. 98–67, title II, § 201, Aug. 5, 1983, 97 Stat. 384, provided that: ‘‘This title [enacting this chapter, amending section 1202 of this title and sections 274 and 7652 of Title 26, Internal Revenue Code, repealing sec- tion 2582 of this title, and enacting provisions set out as notes under sections 1319, 2251, and 2703 of this title, sections 274 and 7652 of Title 26, and section 1311 of Title 33, Navigation and Navigable Waters] may be cited as the ‘Caribbean Basin Economic Recovery Act’.’’ FINDINGS AND POLICY Pub. L. 106–200, title II, § 202, May 18, 2000, 114 Stat. 275, provided that: ‘‘(a) FINDINGS.—Congress makes the following find- ings: ‘‘(1) The Caribbean Basin Economic Recovery Act [19 U.S.C. 2701 et seq.] (in this title [see Short Title of 2000 Amendment note above] referred to as ‘CBERA’) represents a permanent commitment by the United States to encourage the development of strong democratic governments and revitalized economies in neighboring countries in the Caribbean Basin. ‘‘(2) In 1998, Hurricane Mitch and Hurricane Georges devastated areas in the Caribbean Basin region, kill- ing more than 10,000 people and leaving 3,000,000 homeless. ‘‘(3) The total direct impact of Hurricanes Mitch and Georges on Honduras, Nicaragua, the Dominican Republic, El Salvador, and Guatemala amounts to $4,200,000,000, representing a severe loss to income levels in this underdeveloped region. ‘‘(4) In addition to short term disaster assistance, United States policy toward the region should focus on expanding international trade with the Caribbean Basin region as an enduring solution for successful economic growth and recovery. ‘‘(5) Thirty-four democratically elected leaders agreed at the 1994 Summit of the Americas to con- clude negotiation of a Free Trade Area of the Amer- icas (in this title referred to as ‘FTAA’) by the year 2005. ‘‘(6) The economic security of the countries in the Caribbean Basin will be enhanced by the completion of the FTAA. ‘‘(7) Offering temporary benefits to Caribbean Basin countries will preserve the United States commit- ment to Caribbean Basin beneficiary countries, pro- mote the growth of free enterprise and economic op- portunity in these neighboring countries, and thereby enhance the national security interests of the United States. ‘‘(8) Given the greater propensity of countries lo- cated in the Western Hemisphere to use United States components and to purchase United States products compared to other countries, increased trade and economic activity between the United States and countries in the Western Hemisphere will create new jobs in the United States as a result of ex- panding export opportunities. ‘‘(b) POLICY.—It is the policy of the United States— ‘‘(1) to offer Caribbean Basin beneficiary countries willing to prepare to become a party to the FTAA or another free trade agreement, tariff treatment essen- tially equivalent to that accorded to products of NAFTA countries for certain products not currently eligible for duty-free treatment under the CBERA; and ‘‘(2) to seek the participation of Caribbean Basin beneficiary countries in the FTAA or another free trade agreement at the earliest possible date, with the goal of achieving full participation in such agree- ment not later than 2005.’’ MEETINGS OF TRADE MINISTERS AND USTR Pub. L. 106–200, title II, § 213, May 18, 2000, 114 Stat. 288, provided that: ‘‘(a) SCHEDULE OF MEETINGS.—The President shall take the necessary steps to convene a meeting with the trade ministers of the CBTPA beneficiary countries in order to establish a schedule of regular meetings, to commence as soon as is practicable, of the trade min- isters and the Trade Representative, for the purpose set forth in subsection (b). ‘‘(b) PURPOSE.—The purpose of the meetings sched- uled under subsection (a) is to reach agreement be- tween the United States and CBTPA beneficiary coun- tries on the likely timing and procedures for initiating negotiations for CBTPA beneficiary countries to enter into mutually advantageous free trade agreements with the United States that contain provisions comparable to those in the NAFTA and would make substantial progress in achieving the negotiating objectives set forth in section 108(b)(5) of Public Law 103–182 ([former] 19 U.S.C. 3317(b)(5)). ‘‘(c) DEFINITION.—In this section, the term ‘CBTPA beneficiary country’ has the meaning given that term in section 213(b)(5)(B) of the Caribbean Basin Economic Recovery Act [19 U.S.C. 2703(b)(5)(B)].’’ CONGRESSIONAL FINDINGS Pub. L. 101–382, title II, § 202, Aug. 20, 1990, 104 Stat. 655, provided that: ‘‘The Congress finds that— ‘‘(1) a stable political and economic climate in the Caribbean region is necessary for the development of the countries in that region and for the security and economic interests of the United States; ‘‘(2) the Caribbean Basin Economic Recovery Act [this chapter] was enacted in 1983 to assist in the achievement of such a climate by stimulating the de- velopment of the export potential of the region; and ‘‘(3) the commitment of the United States to the successful development of the region, as evidenced by the enactment of the Caribbean Basin Economic Re- covery Act, should be reaffirmed, and further strengthened, by amending that Act to improve its operation.’’ DEFINITIONS Pub. L. 106–200, title II, § 203, May 18, 2000, 114 Stat. 276, provided that: ‘‘In this title [see Short Title of 2000 Amendment note above]: ‘‘(1) NAFTA.—The term ‘NAFTA’ means the North American Free Trade Agreement entered into be- Page 770 TITLE 19—CUSTOMS DUTIES § 2702 tween the United States, Mexico, and Canada on De- cember 17, 1992. ‘‘(2) NAFTA COUNTRY.—The term ‘NAFTA country’ means any country with respect to which the NAFTA is in force. ‘‘(3) WTO AND WTO MEMBER.—The terms ‘WTO’ and ‘WTO member’ have the meanings given those terms in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).’’ § 2702. Beneficiary country (a) Definitions; termination of designation (1) For purposes of this chapter— (A) The term ‘‘beneficiary country’’ means any country listed in subsection (b) with re- spect to which there is in effect a proclama- tion by the President designating such coun- try as a beneficiary country for purposes of this chapter. Before the President designates any country as a beneficiary country for pur- poses of this chapter, he shall notify the House of Representatives and the Senate of his inten- tion to make such designation, together with the considerations entering into such decision. (B) The term ‘‘entered’’ means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States. (C) The term ‘‘HTS’’ means Harmonized Tar- iff Schedule of the United States. (D) The term ‘‘USMCA’’ has the meaning given that term in section 4502 of this title. (E) The terms ‘‘WTO’’ and ‘‘WTO member’’ have the meanings given those terms in sec- tion 3501 of this title. (F) The term ‘‘former beneficiary country’’ means a country that ceases to be designated as a beneficiary country under this chapter be- cause the country has become a party to a free trade agreement with the United States. (2) If the President has designated any country as a beneficiary country for purposes of this chapter, he shall not terminate such designation (either by issuing a proclamation for that pur- pose or by issuing a proclamation which has the effect of terminating such designation) unless, at least sixty days before such termination, he has notified the House of Representatives and the Senate and has notified such country of his intention to terminate such designation, to- gether with the considerations entering into such decision. (b) Countries eligible for designation as bene- ficiary countries; conditions In designating countries as ‘‘beneficiary coun- tries’’ under this chapter the President shall consider only the following countries and terri- tories or successor political entities: Anguilla Saint Lucia Antigua and Barbuda Saint Vincent and the Gren- adines Bahamas, The Suriname Barbados Trinidad and Tobago Belize Cayman Islands Dominica Montserrat Grenada Netherlands Antilles Guyana Saint Christopher-Nevis Haiti Turks and Caicos Islands Jamaica Virgin Islands, British In addition, the President shall not designate any country a beneficiary country under this chapter— (1) if such country is a Communist country; (2) if such country— (A) has nationalized, expropriated or oth- erwise seized ownership or control of prop- erty owned by a United States citizen or by a corporation, partnership, or association which is 50 per centum or more beneficially owned by United States citizens, (B) has taken steps to repudiate or nul- lify— (i) any existing contract or agreement with, or (ii) any patent, trademark, or other in- tellectual property of, a United States citizen or a corporation, partnership, or association which is 50 per centum or more beneficially owned by United States citizens, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of property so owned, or (C) has imposed or enforced taxes or other exactions, restrictive maintenance or oper- ational conditions, or other measures with respect to property so owned, the effect of which is to nationalize, expropriate, or oth- erwise seize ownership or control of such property, unless the President determines that— (i) prompt, adequate, and effective com- pensation has been or is being made to such citizen, corporation, partnership, or association, (ii) good-faith negotiations to provide prompt, adequate, and effective compensa- tion under the applicable provisions of international law are in progress, or such country is otherwise taking steps to dis- charge its obligations under international law with respect to such citizen, corpora- tion, partnership, or association, or (iii) a dispute involving such citizen, cor- poration, partnership, or association, over compensation for such a seizure has been submitted to arbitration under the provi- sions of the Convention for the Settlement of Investment Disputes, or in another mu- tually agreed upon forum, and promptly furnishes a copy of such determina- tion to the Senate and House of Representa- tives; (3) if such country fails to act in good faith in recognizing as binding or in enforcing arbi- tral awards in favor of United States citizens or a corporation, partnership or association which is 50 per centum or more beneficially owned by United States citizens, which have been made by arbitrators appointed for each case or by permanent arbitral bodies to which the parties involved have submitted their dis- pute; (4) if such country affords preferential treat- ment to the products of a developed country, other than the United States, which has, or is likely to have, a significant adverse effect on United States commerce, unless the President has received assurances satisfactory to him that such preferential treatment will be elimi- nated or that action will be taken to assure that there will be no such significant adverse