19 U.S.C. § 2132 — Balance-of-payments authority

Page 515 TITLE 19—CUSTOMS DUTIES § 2132 Editorial Notes AMENDMENTS 1979—Subsec. (c)(2). Pub. L. 96–39 substituted ‘‘any part of the reduction’’ for ‘‘such part of the reduction’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an Effective Date note under section 2581 of this title. STAGING OF CERTAIN TARIFF REDUCTIONS Pub. L. 96–39, title V, § 503, July 26, 1979, 93 Stat. 251, provided that: ‘‘(a) IN GENERAL.—The aggregate reduction in the rate of duty applicable to items described in this sub- section in effect on any day pursuant to a trade agree- ment entered into under section 101 of the Trade Act of 1974 [19 U.S.C. 2111] before January 3, 1980, may exceed the limitation in section 109(a) of such Act (19 U.S.C. 2119): ‘‘(1) Items amended under section 223(d) of this Act [items 402.00 to 413.51 of the Tariff Schedules] to the extent that they apply to articles which the Presi- dent determines were not imported into the United States before January 1, 1978, and were not produced in the United States before May 1, 1978. ‘‘(2)(A) Items to the extent that they apply to arti- cles which the President determines are not import sensitive and are the product of a least developed de- veloping country as defined in the United Nations General Assembly list of ‘‘Least Developed Coun- tries’’ and which are beneficiary developing countries under section 502 of the Trade Act of 1974 [19 U.S.C. 2462]. ‘‘(B) The President may at any time suspend the treatment accorded under subparagraph (A) in which case the aggregate reduction in effect for such prod- ucts shall be the reduction in effect for countries other than least developed developing countries. ‘‘(3) Item 628.57. Notwithstanding the first sentence of this subsection, the limitation in section 109(a) of the Trade Act of 1974 may be exceeded only to the ex- tent necessary to permit an aggregate reduction of 4.8 percent ad valorem in the rate of duty in effect under such item during the first 1-year period after the effective date of the first reduction in the rate of duty proclaimed for such item. ‘‘(4) Items 132.50, 170.10, 170.15, 170.20, 177.62, 186.15, and 429.47. ‘‘(5) Items 306.31, 306.32, 306.33, and 306.34. Notwith- standing subsection (a), the limitation in section 109(a) of the Trade Act of 1974 may be exceeded only to the extent necessary to permit the total reduction proclaimed under section 101 of the Trade Act of 1974 relating to such item to take effect within 2 years after the effective date of the first reduction in the rate of duty proclaimed for such item. ‘‘(6) Items for which the President determines the effective date of the first reduction will be after June 30, 1980, and before January 1, 1981, to the extent nec- essary to permit the second reduction to take effect on January 1, 1981. ‘‘(b) OPPORTUNITY FOR COMMENT.—Before making any determination under subsection (a)(1) and (2), the President shall provide interested parties an oppor- tunity to comment and shall publish his final deter- minations in the Federal Register before July 1, 1980.’’ PART 2—OTHER AUTHORITY § 2131. Authorization of appropriation for GATT revision There are authorized to be appropriated annu- ally such sums as may be necessary for the pay- ment by the United States of its share of the ex- penses of the Contracting Parties to the General Agreement on Tariffs and Trade. This authoriza- tion does not imply approval or disapproval by the Congress of all articles of the General Agree- ment on Tariffs and Trade. (Pub. L. 93–618, title I, § 121, Jan. 3, 1975, 88 Stat. 1986; Pub. L. 96–39, title XI, § 1106(c)(2), July 26, 1979, 93 Stat. 311; Pub. L. 100–418, title I, § 1107(b)(2), Aug. 23, 1988, 102 Stat. 1135; Pub. L. 100–647, title IX, § 9001(a)(1), Nov. 10, 1988, 102 Stat. 3806.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–647 substituted ‘‘There are’’ for ‘‘(d) There are’’. Subsecs. (a) to (c). Pub. L. 100–418 struck out subsec. (a) which provided for bringing existing trade agree- ments into conformity with principles promoting open, nondiscriminatory, and fair world economic system, subsec. (b) which provided for agreements with foreign countries or instrumentalities, and subsec. (c) which provided for changes in Federal law through legislation implementing trade agreements. 1979—Subsec. (c). Pub. L. 96–39 substituted ‘‘Such trade agreement may be entered into under section 2112 of this title’’ for ‘‘Such trade agreement may be sub- mitted to the Congress for approval in accordance with the procedures of section 2191 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 applicable as if such amendment took effect on Aug. 23, 1988, see section 9001(b) of Pub. L. 100–647, set out as an Effective and Termination Dates of 1988 Amendments note under sec- tion 58c of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an Effective Date note under section 2581 of this title. § 2132. Balance-of-payments authority (a) Presidential proclamations of temporary im- port surcharges and temporary limitations on imports through quotas in situations of fundamental international payments prob- lems Whenever fundamental international pay- ments problems require special import measures to restrict imports— (1) to deal with large and serious United States balance-of-payments deficits. (2) to prevent an imminent and significant depreciation of the dollar in foreign exchange markets, or (3) to cooperate with other countries in cor- recting an international balance-of-payments disequilibrium, the President shall proclaim, for a period not ex- ceeding 150 days (unless such period is extended by Act of Congress)— (A) a temporary import surcharge, not to ex- ceed 15 percent ad valorem, in the form of du- ties (in addition to those already imposed, if any) on articles imported into the United States; (B) temporary limitations through the use of quotas on the importation of articles into the United States; or Page 516 TITLE 19—CUSTOMS DUTIES § 2132 (C) both a temporary import surcharge de- scribed in subparagraph (A) and temporary limitations described in subparagraph (B). The authority delegated under subparagraph (B) (and so much of subparagraph (C) as relates to subparagraph (B)) may be exercised (i) only if international trade or monetary agreements to which the United States is a party permit the imposition of quotas as a balance-of-payments measure, and (ii) only to the extent that the fundamental imbalance cannot be dealt with ef- fectively by a surcharge proclaimed pursuant to subparagraph (A) or (C). Any temporary import surcharge proclaimed pursuant to subparagraph (A) or (C) shall be treated as a regular customs duty. (b) Import restrictions not imposed when con- trary to national interest of United States If the President determines that the imposi- tion of import restrictions under subsection (a) will be contrary to the national interest of the United States, then he may refrain from pro- claiming such restrictions and he shall— (1) immediately inform Congress of his de- termination, and (2) immediately convene the group of con- gressional official advisers designated under section 2211(a) of this title and consult with them as to the reasons for such determination. (c) Presidential proclamations liberalizing im- ports Whenever the President determines that fun- damental international payments problems re- quire special import measures to increase im- ports— (1) to deal with large and persistent United States balance-of-trade surpluses, as deter- mined on the basis of the cost-insurance- freight value of imports, as reported by the Bureau of the Census, or (2) to prevent significant appreciation of the dollar in foreign exchange markets, the President is authorized to proclaim, for a pe- riod of 150 days (unless such period is extended by Act of Congress)— (A) a temporary reduction (of not more than 5 percent ad valorem) in the rate of duty on any article; and (B) a temporary increase in the value or quantity of articles which may be imported under any import restriction, or a temporary suspension of any import restriction. Import liberalizing actions proclaimed pursuant to this subsection shall be of broad and uniform application with respect to product coverage ex- cept that the President shall not proclaim meas- ures under this subsection with respect to those articles where in his judgment such action will cause or contribute to material injury to firms or workers in any domestic industry, including agriculture, mining, fishing, or commerce, or to impairment of the national security, or will oth- erwise be contrary to the national interest. (d) Nondiscriminatory treatment of import re- stricting actions (1) Import restricting actions proclaimed pur- suant to subsection (a) shall be applied consist- ently with the principle of nondiscriminatory treatment. In addition, any quota proclaimed pursuant to subparagraph (B) of subsection (a) shall be applied on a basis which aims at a dis- tribution of trade with the United States ap- proaching as closely as possible that which var- ious foreign countries might have expected to obtain in the absence of such restrictions. (2) Notwithstanding paragraph (1), if the Presi- dent determines that the purposes of this sec- tion will best be served by action against one or more countries having large or persistent bal- ance-of-payments surpluses, he may exempt all other countries from such action. (3) After such time when there enters into force for the United States new rules regarding the application of surcharges as part of a reform of internationally agreed balance-of-payments adjustment procedures, the exemption authority contained in paragraph (2) shall be applied con- sistently with such new international rules. (4) It is the sense of Congress that the Presi- dent seek modifications in international agree- ments aimed at allowing the use of surcharges in place of quantitative restrictions (and pro- viding rules to govern the use of such sur- charges) as a balance-of-payments adjustment measure within the context of arrangements for an equitable sharing of balance-of-payments ad- justment responsibility among deficit and sur- plus countries. (e) Broad and uniform application of import re- stricting actions Import restricting actions proclaimed pursu- ant to subsection (a) shall be of broad and uni- form application with respect to product cov- erage except where the President determines, consistently with the purposes of this section, that certain articles should not be subject to import restricting actions because of the needs of the United States economy. Such exceptions shall be limited to the unavailability of domes- tic supply at reasonable prices, the necessary importation of raw materials, avoiding serious dislocations in the supply of imported goods, and other similar factors. In addition, uniform exceptions may be made where import restrict- ing actions will be unnecessary or ineffective in carrying out the purposes of this section, such as with respect to articles already subject to im- port restrictions, goods in transit, or goods under binding contract. Neither the authoriza- tion of import restricting actions nor the deter- mination of exceptions with respect to product coverage shall be made for the purpose of pro- tecting individual domestic industries from im- port competition. (f) Quantitative limitations Any quantitative limitation proclaimed pursu- ant to subparagraph (B) or (C) of subsection (a) on the quantity or value, or both, of an article— (1) shall permit the importation of a quan- tity or value which is not less than the quan- tity or value of such article imported into the United States from the foreign countries to which such limitation applies during the most recent period which the President determines is representative of imports of such article, and (2) shall take into account any increase since the end of such representative period in Page 517 TITLE 19—CUSTOMS DUTIES § 2133 domestic consumption of such article and like or similar articles of domestic manufacture or production. (g) Suspension, modification, or termination of proclamations The President may at any time, consistent with the provisions of this section, suspend, modify, or terminate, in whole or in part, any proclamation under this section either during the initial 150-day period of effectiveness or as extended by subsequent Act of Congress. (h) Termination of tariff concessions No provision of law authorizing the termi- nation of tariff concessions shall be used to im- pose a surcharge on imports into the United States. (Pub. L. 93–618, title I, § 122, Jan. 3, 1975, 88 Stat. 1987.) § 2133. Compensation authority (a) New concessions Whenever— (1) any action taken under part 1 of sub- chapter II or subchapter III, or under part 2 of subchapter IV of this chapter; or (2) any judicial or administrative tariff re- classification that becomes final after August 23, 1988; increases or imposes any duty or other import restriction, the President— (A) may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as com- pensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and (B) may proclaim such modification or con- tinuance of any existing duty, or such con- tinuance of existing duty-free or excise treat- ment, as he determines to be required or ap- propriate to carry out any such agreement. (b) Reductions in rates of duty (1) No proclamation shall be made pursuant to subsection (a) decreasing any rate of duty to a rate which is less than 70 percent of the existing rate of duty. (2) Where the rate of duty in effect at any time is an intermediate stage under section 2902(a) of this title, the proclamation made pursuant to subsection (a) may provide for the reduction of each rate of duty at each such stage proclaimed under such section 2902(a) of this title by not more than 30 percent of such rate of duty, and may provide for a final rate of duty which is not less than 70 percent of the rate of duty pro- claimed as the final stage under such section 2902(a) of this title. (3) If the President determines that such ac- tion will simplify the computation of the amount of duty imposed with respect to an arti- cle, he may exceed the limitations provided by paragraphs (1) and (2) of this subsection by not more than the lesser of— (A) the difference between such limitation and the next lower whole number, or (B) one-half of 1 percent ad valorem. (4) Any concessions granted under subsection (a)(1) shall be reduced and terminated according to substantially the same time schedule for re- duction applicable to the relevant action under sections 2253(e) and 2254 of this title. (c) Consideration of past violations of trade con- cessions Before entering into any trade agreement under this section with any foreign country or instrumentality, the President shall consider whether such country or instrumentality has violated trade concessions of benefit to the United States and such violation has not been adequately offset by the action of the United States or by such country or instrumentality. (d) Basic authority for trade agreements as au- thority for granting new concessions as com- pensation Notwithstanding the provisions of subsection (a), the authority delegated under section 2902 of this title shall be used for the purpose of grant- ing new concessions as compensation within the meaning of this section until such authority ter- minates. (e) International obligations determination pre- requisite to application of authority The provisions of this section shall apply by reason of action taken under subchapter III only if the President determines that action author- ized under this section is necessary or appro- priate to meet the international obligations of the United States. (Pub. L. 93–618, title I, § 123, Jan. 3, 1975, 88 Stat. 1989; Pub. L. 100–418, title I, §§ 1104, 1401(b)(1)(A), Aug. 23, 1988, 102 Stat. 1132, 1239; Pub. L. 106–286, div. A, title I, § 104, Oct. 10, 2000, 114 Stat. 891.) Editorial Notes AMENDMENTS 2000—Subsec. (a)(1). Pub. L. 106–286 inserted ‘‘, or under part 2 of subchapter IV of this chapter’’ after ‘‘subchapter III of this chapter’’. 1988—Subsec. (a). Pub. L. 100–418, § 1104(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: ‘‘Whenever any action has been taken under section 2253 of this title to increase or impose any duty or other import restriction, the President— ‘‘(1) may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and ‘‘(2) may proclaim such modification or continu- ance of any existing duty, or such continuance of ex- isting duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.’’ Subsec. (b)(2). Pub. L. 100–418, § 1104(2), substituted ‘‘section 2902(a)’’ for ‘‘section 2119’’ and ‘‘such section 2902(a)’’ for ‘‘section 2111’’ in two places. Subsec. (b)(4). Pub. L. 100–418, § 1401(b)(1)(A), sub- stituted ‘‘action under sections 2253(e) and 2254 of this title’’ for ‘‘import relief under section 2253(h) of this title’’. Subsec. (d). Pub. L. 100–418, § 1104(3), substituted ‘‘sec- tion 2902’’ for ‘‘section 2111’’. Subsec. (e). Pub. L. 100–418, § 1104(4), added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to