19 U.S.C. § 4205 — Implementation of trade agreements

Page 1079 TITLE 19—CUSTOMS DUTIES § 4205 Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (b)(2)(B) and (f)(1), was in the original ‘‘this title’’, meaning title I of Pub. L. 114–26, June 29, 2015, 129 Stat. 320, which is classified principally to this chapter. For complete classification of title I to the Code, see Short Title note set out under section 4201 of this title and Tables. The Tariff Act of 1930, referred to in subsec. (b)(3)(A)(i), is act June 17, 1930, ch. 497, 46 Stat. 590. Title VII of the Act is classified generally to subtitle IV (§ 1671 et seq.) of chapter 4 of this title. For complete classification of this Act to the Code, see section 1654 of this title and Tables. The Trade Act of 1974, referred to in subsec. (b)(3)(A)(i), 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. Sections 105(b)(3) and 102(b)(17) of the Bipartisan Con- gressional Trade Priorities and Accountability Act of 2015, referred to in subsec. (b)(3)(B)(ii), are classified to subsec. (b)(3) of this section and section 4201(b)(17) of this title, respectively. Executive Order No. 13141, referred to in subsec. (d)(1)(A), (2)(A), is set out as a note under section 2112 of this title. AMENDMENTS 2016—Subsec. (b)(3)(A)(ii). Pub. L. 114–125, § 914(f)(1)(A), substituted ‘‘section 4201(b)(17)’’ for ‘‘sec- tion 4201(b)(16)’’. Subsec. (b)(3)(B)(ii). Pub. L. 114–125, § 914(f)(1)(B), sub- stituted ‘‘section 102(b)(17)’’ for ‘‘section 102(b)(16)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2016 AMENDMENT Amendment by Pub. L. 114–125 effective as if included in the enactment of title I of Pub. L. 114–26, see section 914(g) of Pub. L. 114–125, set out as a note under section 4201 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 13701, July 17, 2015, 80 F.R. 43903, set out as a note under section 4201 of this title. § 4205. Implementation of trade agreements (a) In general (1) Notification and submission Any agreement entered into under section 4202(b) of this title shall enter into force with respect to the United States if (and only if)— (A) the President, at least 90 calendar days before the day on which the President enters into the trade agreement, notifies the House of Representatives and the Senate of the President’s intention to enter into the agreement, and promptly thereafter pub- lishes notice of such intention in the Federal Register; (B) the President, at least 60 days before the day on which the President enters into the agreement, publishes the text of the agreement on a publicly available Internet website of the Office of the United States Trade Representative; (C) within 60 days after entering into the agreement, the President submits to Con- gress a description of those changes to exist- ing laws that the President considers would be required in order to bring the United States into compliance with the agreement; (D) the President, at least 30 days before submitting to Congress the materials under subparagraph (E), submits to Congress— (i) a draft statement of any administra- tive action proposed to implement the agreement; and (ii) a copy of the final legal text of the agreement; (E) after entering into the agreement, the President submits to Congress, on a day on which both Houses of Congress are in ses- sion, a copy of the final legal text of the agreement, together with— (i) a draft of an implementing bill de- scribed in section 4202(b)(3) of this title; (ii) a statement of any administrative action proposed to implement the trade agreement; and (iii) the supporting information de- scribed in paragraph (2)(A); (F) the implementing bill is enacted into law; and (G) the President, not later than 30 days before the date on which the agreement en- ters into force with respect to a party to the agreement, submits written notice to Con- gress that the President has determined that the party has taken measures necessary to comply with those provisions of the agree- ment that are to take effect on the date on which the agreement enters into force. (2) Supporting information (A) In general The supporting information required under paragraph (1)(E)(iii) consists of— (i) an explanation as to how the imple- menting bill and proposed administrative action will change or affect existing law; and (ii) a statement— (I) asserting that the agreement makes progress in achieving the applicable pur- poses, policies, priorities, and objectives of this chapter; and (II) setting forth the reasons of the President regarding— (aa) how and to what extent the agreement makes progress in achiev- ing the applicable purposes, policies, and objectives referred to in subclause (I); (bb) whether and how the agreement changes provisions of an agreement previously negotiated; (cc) how the agreement serves the in- terests of United States commerce; and (dd) how the implementing bill meets the standards set forth in section 4202(b)(3) of this title. (B) Public availability The President shall make the supporting information described in subparagraph (A) available to the public. Page 1080 TITLE 19—CUSTOMS DUTIES § 4205 (3) Reciprocal benefits In order to ensure that a foreign country that is not a party to a trade agreement en- tered into under section 4202(b) of this title does not receive benefits under the agreement unless the country is also subject to the obli- gations under the agreement, the imple- menting bill submitted with respect to the agreement shall provide that the benefits and obligations under the agreement apply only to the parties to the agreement, if such applica- tion is consistent with the terms of the agree- ment. The implementing bill may also provide that the benefits and obligations under the agreement do not apply uniformly to all par- ties to the agreement, if such application is consistent with the terms of the agreement. (4) Disclosure of commitments Any agreement or other understanding with a foreign government or governments (wheth- er oral or in writing) that— (A) relates to a trade agreement with re- spect to which Congress enacts an imple- menting bill under trade authorities proce- dures; and (B) is not disclosed to Congress before an implementing bill with respect to that agreement is introduced in either House of Congress, shall not be considered to be part of the agree- ment approved by Congress and shall have no force and effect under United States law or in any dispute settlement body. (b) Limitations on trade authorities procedures (1) For lack of notice or consultations (A) In general The trade authorities procedures shall not apply to any implementing bill submitted with respect to a trade agreement or trade agreements entered into under section 4202(b) of this title if during the 60-day pe- riod beginning on the date that one House of Congress agrees to a procedural disapproval resolution for lack of notice or consultations with respect to such trade agreement or agreements, the other House separately agrees to a procedural disapproval resolu- tion with respect to such trade agreement or agreements. (B) Procedural disapproval resolution (i) For purposes of this paragraph, the term ‘‘procedural disapproval resolution’’ means a resolution of either House of Con- gress, the sole matter after the resolving clause of which is as follows: ‘‘That the President has failed or refused to notify or consult in accordance with the Bipartisan Congressional Trade Priorities and Account- ability Act of 2015 on negotiations with re- spect to llllllll and, therefore, the trade authorities procedures under that Act shall not apply to any implementing bill submitted with respect to such trade agree- ment or agreements.’’, with the blank space being filled with a description of the trade agreement or agreements with respect to which the President is considered to have failed or refused to notify or consult. (ii) For purposes of clause (i) and para- graphs (3)(C) and (4)(C), the President has ‘‘failed or refused to notify or consult in ac- cordance with the Bipartisan Congressional Trade Priorities and Accountability Act of 2015’’ on negotiations with respect to a trade agreement or trade agreements if— (I) the President has failed or refused to consult (as the case may be) in accordance with sections 4203 and 4204 of this title and this section with respect to the negotia- tions, agreement, or agreements; (II) guidelines under section 4203 of this title have not been developed or met with respect to the negotiations, agreement, or agreements; (III) the President has not met with the House Advisory Group on Negotiations or the Senate Advisory Group on Negotia- tions pursuant to a request made under section 4203(c)(4) of this title with respect to the negotiations, agreement, or agree- ments; or (IV) the agreement or agreements fail to make progress in achieving the purposes, policies, priorities, and objectives of this chapter. (2) Procedures for considering resolutions (A) Procedural disapproval resolutions— (i) in the House of Representatives— (I) may be introduced by any Member of the House; (II) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and (III) may not be amended by either Com- mittee; and (ii) in the Senate— (I) may be introduced by any Member of the Senate; (II) shall be referred to the Committee on Finance; and (III) may not be amended. (B) The provisions of subsections (d) and (e) of section 2192 of this title (relating to the floor consideration of certain resolutions in the House and Senate) apply to a procedural disapproval resolution introduced with respect to a trade agreement if no other procedural disapproval resolution with respect to that trade agreement has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Fi- nance, as the case may be, and if no resolution described in clause (ii) of section 4204(b)(3)(B) of this title with respect to that trade agree- ment has been reported in that House of Con- gress by the Committee on Ways and Means or the Committee on Finance, as the case may be, pursuant to the procedures set forth in clauses (iii) through (vii) of such section. (C) It is not in order for the House of Rep- resentatives to consider any procedural dis- approval resolution not reported by the Com- mittee on Ways and Means and, in addition, by the Committee on Rules. (D) It is not in order for the Senate to con- sider any procedural disapproval resolution not reported by the Committee on Finance. Page 1081 TITLE 19—CUSTOMS DUTIES § 4205 (3) Consideration in Senate of consultation and compliance resolution to remove trade au- thorities procedures (A) Reporting of resolution If, when the Committee on Finance of the Senate meets on whether to report an imple- menting bill with respect to a trade agree- ment or agreements entered into under sec- tion 4202(b) of this title, the committee fails to favorably report the bill, the committee shall report a resolution described in sub- paragraph (C). (B) Applicability of trade authorities proce- dures The trade authorities procedures shall not apply in the Senate to any implementing bill submitted with respect to a trade agree- ment or agreements described in subpara- graph (A) if the Committee on Finance re- ports a resolution described in subparagraph (C) and such resolution is agreed to by the Senate. (C) Resolution described A resolution described in this subpara- graph is a resolution of the Senate origi- nating from the Committee on Finance the sole matter after the resolving clause of which is as follows: ‘‘That the President has failed or refused to notify or consult in ac- cordance with the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 on negotiations with respect to lllll and, therefore, the trade authori- ties procedures under that Act shall not apply in the Senate to any implementing bill submitted with respect to such trade agreement or agreements.’’, with the blank space being filled with a description of the trade agreement or agreements described in subparagraph (A). (D) Procedures If the Senate does not agree to a motion to invoke cloture on the motion to proceed to a resolution described in subparagraph (C), the resolution shall be committed to the Committee on Finance. (4) Consideration in the House of Representa- tives of a consultation and compliance res- olution (A) Qualifications for reporting resolution If— (i) the Committee on Ways and Means of the House of Representatives reports an implementing bill with respect to a trade agreement or agreements entered into under section 4202(b) of this title with other than a favorable recommendation; and (ii) a Member of the House of Represent- atives has introduced a consultation and compliance resolution on the legislative day following the filing of a report to ac- company the implementing bill with other than a favorable recommendation, then the Committee on Ways and Means shall consider a consultation and compliance resolution pursuant to subparagraph (B). (B) Committee consideration of a qualifying resolution (i) Not later than the fourth legislative day after the date of introduction of the res- olution, the Committee on Ways and Means shall meet to consider a resolution meeting the qualifications set forth in subparagraph (A). (ii) After consideration of one such resolu- tion by the Committee on Ways and Means, this subparagraph shall not apply to any other such resolution. (iii) If the Committee on Ways and Means has not reported the resolution by the sixth legislative day after the date of its introduc- tion, that committee shall be discharged from further consideration of the resolution. (C) Consultation and compliance resolution described A consultation and compliance resolu- tion— (i) is a resolution of the House of Rep- resentatives, the sole matter after the re- solving clause of which is as follows: ‘‘That the President has failed or refused to no- tify or consult in accordance with the Bi- partisan Congressional Trade Priorities and Accountability Act of 2015 on negotia- tions with respect to lllll and, there- fore, the trade authorities procedures under that Act shall not apply in the House of Representatives to any imple- menting bill submitted with respect to such trade agreement or agreements.’’, with the blank space being filled with a de- scription of the trade agreement or agree- ments described in subparagraph (A); and (ii) shall be referred to the Committee on Ways and Means. (D) Applicability of trade authorities proce- dures The trade authorities procedures shall not apply in the House of Representatives to any implementing bill submitted with respect to a trade agreement or agreements which are the object of a consultation and compliance resolution if such resolution is adopted by the House. (5) For failure to meet other requirements Not later than December 15, 2015, the Sec- retary of Commerce, in consultation with the Secretary of State, the Secretary of the Treas- ury, the Attorney General, and the United States Trade Representative, shall transmit to Congress a report setting forth the strategy of the executive branch to address concerns of Congress regarding whether dispute settle- ment panels and the Appellate Body of the World Trade Organization have added to obli- gations, or diminished rights, of the United States, as described in section 4201(b)(16)(C) of this title. Trade authorities procedures shall not apply to any implementing bill with re- spect to an agreement negotiated under the auspices of the World Trade Organization un- less the Secretary of Commerce has issued such report by the deadline specified in this paragraph. Page 1082 TITLE 19—CUSTOMS DUTIES § 4205 (6) Limitations on procedures with respect to agreements with countries not in compli- ance with Trafficking Victims Protection Act of 2000 (A) In general The trade authorities procedures shall not apply to any implementing bill submitted with respect to a trade agreement or trade agreements entered into under section 4202(b) of this title with a country listed as a tier 3 country in the most recent annual report on trafficking in persons. (B) Exception (i) Invoking exception If the President submits to the appro- priate congressional committees a letter stating that a country to which subpara- graph (A) applies has taken concrete ac- tions to implement the principal rec- ommendations with respect to that coun- try in the most recent annual report on trafficking in persons, the prohibition under subparagraph (A) shall not apply with respect to a trade agreement or trade agreements with that country. (ii) Content of letter; public availability A letter submitted under clause (i) with respect to a country shall— (I) include a description of the con- crete actions that the country has taken to implement the principal recommenda- tions described in clause (i); (II) be accompanied by supporting doc- umentation providing credible evidence of each such concrete action, including copies of relevant laws or regulations adopted or modified, and any enforce- ment actions taken, by that country, where appropriate; and (III) be made available to the public. (C) Special rule for changes in certain deter- minations If a country is listed as a tier 3 country in an annual report on trafficking in persons submitted in calendar year 2014 or any cal- endar year thereafter and, in the annual re- port on trafficking in persons submitted in the next calendar year, is listed on the tier 2 watch list, the President shall submit a de- tailed description of the credible evidence supporting the change in listing of the coun- try, accompanied by copies of documents providing such evidence, where appropriate, to the appropriate congressional commit- tees— (i) in the case of a change in listing re- flected in the annual report on trafficking in persons submitted in calendar year 2015, not later than 90 days after February 24, 2016; and (ii) in the case of a change in listing re- flected in an annual report on trafficking in persons submitted in calendar year 2016 or any calendar year thereafter, not later than 90 days after the submission of that report. (D) Sense of Congress It is the sense of Congress that the integ- rity of the process for making the deter- minations in the annual report on traf- ficking in persons, including determinations with respect to country rankings and the substance of the assessments in the report, should be respected and not affected by un- related considerations. (E) Definitions In this paragraph: (i) Annual report on trafficking in persons The term ‘‘annual report on trafficking in persons’’ means the annual report on trafficking in persons required under sec- tion 110(b)(1) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)(1)). (ii) Appropriate congressional committees The term ‘‘appropriate congressional committees’’ means— (I) the Committee on Ways and Means and the Committee on Foreign Affairs of the House of Representatives; and (II) the Committee on Finance and the Committee on Foreign Relations of the Senate. (iii) Tier 2 watch list The term ‘‘tier 2 watch list’’ means the list of countries required under section 110(b)(2)(A)(iii) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)(2)(A)(iii)). (iv) Tier 3 country The term ‘‘tier 3 country’’ means a coun- try on the list of countries required under section 110(b)(1)(C) of the Trafficking Vic- tims Protection Act of 2000 (22 U.S.C. 7107(b)(1)(C)). (c) Rules of House of Representatives and Senate Subsection (b) of this section, section 4202(c) of this title, and section 4204(b)(3) of this title are enacted by Congress— (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such are deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and (2) with the full recognition of the constitu- tional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House. (Pub. L. 114–26, title I, § 106, June 29, 2015, 129 Stat. 350; Pub. L. 114–125, title IX, § 914(e), (f)(2), Feb. 24, 2016, 130 Stat. 274, 276.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(2)(A)(ii)(I) and (b)(1)(B)(ii)(IV), was in the original ‘‘this title’’, meaning title I of Pub. L. 114–26, June 29, 2015, 129 Stat. 320, which is classified principally to this chapter. For complete classification of title I to the Code, see Short Title note set out under section 4201 of this title and Tables. The Bipartisan Congressional Trade Priorities and Accountability Act of 2015, referred to in subsec. Page 1083 TITLE 19—CUSTOMS DUTIES § 4206 1 So in original. Two subsecs. (c) have been enacted. (b)(1)(B), (3)(C), and (4)(C)(i), is title I of Pub. L. 114–26, June 29, 2015, 129 Stat. 320, which is classified prin- cipally to this chapter. For complete classification of title I to the Code, see Short Title note set out under section 4201 of this title and Tables. AMENDMENTS 2016—Subsec. (b)(5). Pub. L. 114–125, § 914(f)(2), sub- stituted ‘‘section 4201(b)(16)(C)’’ for ‘‘section 4201(b)(15)(C)’’. Subsec. (b)(6)(A). Pub. L. 114–125, § 914(e)(2), sub- stituted ‘‘listed as a tier 3 country in the most recent annual report on trafficking in persons’’ for ‘‘to which the minimum standards for the elimination of traf- ficking are applicable and the government of which does not fully comply with such standards and is not making significant efforts to bring the country into compliance (commonly referred to as a ‘tier 3’ coun- try), as determined in the most recent annual report on trafficking in persons submitted under section 110(b)(1) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)(1))’’. Subsec. (b)(6)(B) to (E). Pub. L. 114–125, § 914(e)(1), added subpars. (B) to (E) and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as fol- lows: ‘‘In this paragraph, the term ‘minimum standards for the elimination of trafficking’ means the standards set forth in section 108 of the Trafficking Victims Pro- tection Act of 2000 (22 U.S.C. 7106).’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2016 AMENDMENT Amendment by Pub. L. 114–125 effective as if included in the enactment of title I of Pub. L. 114–26, see section 914(g) of Pub. L. 114–125, set out as a note under section 4201 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 13701, July 17, 2015, 80 F.R. 43903, set out as a note under section 4201 of this title, and Memorandum of President of the United States, May 24, 2016, 81 F.R. 35579, set out below. DELEGATION OF AUTHORITY UNDER SECTION 106 OF THE BIPARTISAN CONGRESSIONAL TRADE PRIORITIES AND AC- COUNTABILITY ACT OF 2015 Memorandum of President of the United States, May 24, 2016, 81 F.R. 35579, provided: Memorandum for the Secretary of State By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to you the functions and au- thorities vested in the President by section 106(b)(6)(B) and (C) of the Bipartisan Congressional Trade Prior- ities and Accountability Act of 2015 (Public Law 114–26, title I) (the ‘‘Act’’), as added by section 914(e) of the Trade Facilitation and Trade Enforcement Act of 2015 (Public Law 114–125). In carrying out these functions, you will inform the United States Trade Representa- tive at the earliest possible time of a decision to invoke an exception under section 106(b)(6)(B) of the Act. In exercising authority delegated by or performing functions assigned in this memorandum, you may re- delegate authority delegated by this memorandum and may further assign functions assigned by this memo- randum to officers of any other department or agency within the executive branch to the extent permitted by law. You are authorized and directed to publish this memorandum in the Federal Register. BARACK OBAMA. § 4206. Treatment of certain trade agreements for which negotiations have already begun (a) Certain agreements Notwithstanding the prenegotiation notifica- tion and consultation requirement described in section 4204(a) of this title, if an agreement to which section 4202(b) of this title applies— (1) is entered into under the auspices of the World Trade Organization, (2) is entered into with the Trans-Pacific Partnership countries with respect to which notifications have been made in a manner con- sistent with section 4204(a)(1)(A) of this title as of June 29, 2015, (3) is entered into with the European Union, (4) is an agreement with respect to inter- national trade in services entered into with WTO members with respect to which a notifi- cation has been made in a manner consistent with section 4204(a)(1)(A) of this title as of June 29, 2015, or (5) is an agreement with respect to environ- mental goods entered into with WTO members with respect to which a notification has been made in a manner consistent with section 4204(a)(1)(A) of this title as of June 29, 2015, and results from negotiations that were com- menced before June 29, 2015, subsection (b) shall apply. (b) Treatment of agreements In the case of any agreement to which sub- section (a) applies, the applicability of the trade authorities procedures to implementing bills shall be determined without regard to the re- quirements of section 4204(a) of this title (relat- ing only to notice prior to initiating negotia- tions), and any resolution under paragraph (1)(B), (3)(C), or (4)(C) of section 4205(b) of this title shall not be in order on the basis of a fail- ure or refusal to comply with the provisions of section 4204(a) of this title, if (and only if) the President, as soon as feasible after June 29, 2015— (1) notifies Congress of the negotiations de- scribed in subsection (a), the specific United States objectives in the negotiations, and whether the President is seeking a new agree- ment or changes to an existing agreement; and (2) before and after submission of the notice, consults regarding the negotiations with the committees referred to in section 4204(a)(1)(B) of this title and the House and Senate Advi- sory Groups on Negotiations convened under section 4203(c) of this title. (c) 1 Agreement by Asia-Pacific Economic Co- operation members to reduce rates of duty on certain environmental goods Notwithstanding the notification requirement described in section 4202(a)(2) of this title, the President may exercise the proclamation au- thority provided for in section 4202(a)(1)(B) of this title to implement an agreement by mem- bers of the Asia-Pacific Economic Cooperation (APEC) to reduce any rate of duty on certain en- vironmental goods included in Annex C of the APEC Leaders Declaration issued on September