19 U.S.C. § 2135 — Termination and withdrawal authority

Page 518 TITLE 19—CUSTOMS DUTIES § 2134 investigations initiated under part 1 (§ 2251 et seq.) of subchapter III of this chapter on or after that date, see section 1401(c) of Pub. L. 100–418, set out as a note under section 2251 of this title. § 2134. Two-year residual authority to negotiate duties (a) Trade agreements Whenever the President determines that any existing duties or other import restrictions of any foreign country or the United States are un- duly burdening and restricting the foreign trade of the United States and that the purposes of this chapter will be promoted thereby, the President— (1) may enter into trade agreements with foreign countries or instrumentalities thereof, and (2) may proclaim such modification or con- tinuance of any existing duty, such continu- ance of existing duty-free or excise treatment, or such additional duties, as he determines to be required or appropriate to carry out any such trade agreement. (b) Maximum volume of imported articles subject to reduction of duties or continuance of duty-free or excise treatment Agreements entered into under this section in any 1-year period shall not provide for the re- duction of duties, or the continuance of duty- free or excise treatment, for articles which ac- count for more than 2 percent of the value of United States imports for the most recent 12- month period for which import statistics are available. (c) Maximum reduction in duties (1) No proclamation shall be made pursuant to subsection (a) decreasing any rate of duty to a rate which is less than 80 percent of the existing rate of duty. (2) No proclamation shall be made pursuant to subsection (a) decreasing or increasing any rate of duty to a rate which is lower or higher than the corresponding rate which would have re- sulted if the maximum authority granted by section 2111 of this title with respect to such ar- ticle had been exercised. (3) Where the rate of duty in effect at any time is an intermediate stage under section 2119 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 section 2111 of this title by not more than 20 percent of such rate of duty, and, subject to the limitation in paragraph (2), may provide for a final rate of duty which is not less than 80 per- cent of the rate of duty proclaimed as the final stage under section 2111 of this title. (4) 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. (d) Two-year period of authority Agreements may be entered into under this section only during the 2-year period which im- mediately follows the close of the period during which agreements may be entered into under section 2111 of this title. (Pub. L. 93–618, title I, § 124, Jan. 3, 1975, 88 Stat. 1990.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this Act’’, meaning Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see References in Text note set out under section 2101 of this title and Tables. § 2135. Termination and withdrawal authority (a) Grant of authority for termination or with- drawal at end of period specified in agree- ment Every trade agreement entered into under this chapter shall be subject to termination, in whole or in part, or withdrawal, upon due no- tice, at the end of a period specified in the agreement. Such period shall be not more than 3 years from the date on which the agreement becomes effective. If the agreement is not termi- nated or withdrawn from at the end of the pe- riod so specified, it shall be subject to termi- nation or withdrawal thereafter upon not more than 6 months’ notice. (b) Authority to terminate proclamations at any time The President may at any time terminate, in whole or in part, any proclamation made under this chapter. (c) Increased duties or other import restrictions following withdrawal, suspension, or modi- fication of obligations with respect to trade of foreign countries or instrumentalities Whenever the United States, acting in pursu- ance of any of its rights or obligations under any trade agreement entered into pursuant to this chapter, section 1821 of this title, or section 1351 of this title, withdraws, suspends, or modi- fies any obligation with respect to the trade of any foreign country or instrumentality thereof, the President is authorized to proclaim in- creased duties or other import restrictions, to the extent, at such times, and for such periods as he deems necessary or appropriate, in order to exercise the rights or fulfill the obligations of the United States. No proclamation shall be made under this subsection increasing any exist- ing duty to a rate more than 50 percent above the rate set forth in rate column numbered 2 of the Tariff Schedules of the United States, as in effect on January 1, 1975, or 20 percent ad valo- rem above the rate existing on January 1, 1975, whichever is higher. (d) Retaliatory authority Whenever any foreign country or instrumen- tality withdraws, suspends, or modifies the ap- plication of trade agreement obligations of ben- efit to the United States without granting ade- quate compensation therefor, the President, in pursuance of rights granted to the United States under any trade agreement and to the extent necessary to protect United States economic in- Page 519 TITLE 19—CUSTOMS DUTIES § 2136 terests (including United States balance of pay- ments), may— (1) withdraw, suspend, or modify the applica- tion of substantially equivalent trade agree- ment obligations of benefit to such foreign country or instrumentality, and (2) proclaim under subsection (c) such in- creased duties or other import restrictions as are appropriate to effect adequate compensa- tion from such foreign country or instrumen- tality. (e) Continuation of duties or other import re- strictions after termination of or withdrawal from agreements Duties or other import restrictions required or appropriate to carry out any trade agreement entered into pursuant to this chapter, section 1821 of this title, or section 1351 of this title shall not be affected by any termination, in whole or in part, of such agreement or by the withdrawal of the United States from such agreement and shall remain in effect after the date of such termination or withdrawal for 1 year, unless the President by proclamation pro- vides that such rates shall be restored to the level at which they would be but for the agree- ment. Within 60 days after the date of any such termination or withdrawal, the President shall transmit to the Congress his recommendations as to the appropriate rates of duty for all arti- cles which were affected by the termination or withdrawal or would have been so affected but for the preceding sentence. (f) Public hearings Before taking any action pursuant to sub- section (b), (c), or (d), the President shall pro- vide for a public hearing during the course of which interested persons shall be given a reason- able opportunity to be present, to produce evi- dence, and to be heard, unless he determines that such prior hearings will be contrary to the national interest because of the need for expedi- tious action, in which case he shall provide for a public hearing promptly after such action. (Pub. L. 93–618, title I, § 125, Jan. 3, 1975, 88 Stat. 1991.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (b), (c), (e), was in the original ‘‘this Act’’, meaning Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see References in Text note set out under sec- tion 2101 of this title and Tables. The Tariff Schedules of the United States, referred to in subsec. (c), to be treated as a reference to the Har- monized Tariff Schedule pursuant to section 3012 of this title. The Harmonized Tariff Schedule is not set out in the Code. See Publication of Harmonized Tariff Sched- ule note set out under section 1202 of this title. Statutory Notes and Related Subsidiaries AUTHORITY TO INCREASE DUTIES ON IMPORTS OF CERTAIN TOBACCO AND TOBACCO PRODUCTS Pub. L. 103–465, title IV, § 421, Dec. 8, 1994, 108 Stat. 4964, provided that: ‘‘(a) IN GENERAL.—In the application of section 125(c) of the Trade Act of 1974 (19 U.S.C. 2135) with respect to any item provided for in subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 2401.30.60, 2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of the HTS, ‘350’ shall be substituted for ‘20’ where it appears in such section. ‘‘(b) EFFECTIVE DATE.—This section shall take effect on the date of the enactment of this Act [Dec. 8, 1994].’’ TARIFF REDUCTIONS UNDER TRADE AGREEMENTS ACT OF 1979 Pub. L. 96–39, title V, § 502(b), July 26, 1979, 93 Stat. 251, provided that: ‘‘For purposes of section 125 (19 U.S.C. 2135) of the Trade Act of 1974 the amendments made under sections 508, 511, 512, and 513 [amending items 135.41, 135.42, 750.26, 750.27, 750.28, 870.45, 905.10, and 905.11 of the Tariff Schedules of the United States. See Publication of Tariff Schedules note under section 1202 of this title] not including the rates of duty ap- pearing in rate column numbered 2, if any, shall be con- sidered to be trade agreement obligations entered into under the Trade Act of 1974 [this chapter], of benefit to foreign countries or instrumentalities.’’ Pub. L. 96–39, title VI, § 601(b), July 26, 1979, 93 Stat. 268, provided that: ‘‘For purposes of section 125 of the Trade Act of 1974 [this section], the amendments made under subsection (a), if any [amending the Tariff Schedules of the United States with regard to civil air- craft (see Publication of Tariff Schedules note under section 1202), and, amending section 1466 of this title], shall be considered to be trade agreement obligations entered into under the Trade Act of 1974 [this chapter] of benefit to foreign countries or instrumentalities.’’ Rates of duty proclaimed under section 855(a) of Pub. L. 96–39 (covering spirits, spiritous beverages, and bev- erage preparations) to be deemed, for purposes of this section, a trade agreement obligation which is of ben- efit to a foreign country or instrumentality, and, in the case of any item affected by such a proclamation, the last sentence of subsec. (c) of this section to be applied as if it authorized (in addition to any increase author- ized therein) an increase up to the rate of duty for such item set forth in rate column numbered 1 of subpart D of part 12 of schedule 1 of the Tariff Schedules of the United States (see Publication of Tariff Schedules note under section 1202 of this title) as amended by section 852 of Pub. L. 96–39, see section 855(b) of Pub. L. 96–39. REVIEW OF INTERNATIONAL TRADE IN ALCOHOLIC BEVERAGES Pub. L. 96–39, title VIII, § 854, July 26, 1979, 93 Stat. 294, provided that: ‘‘(a) REVIEW.—The President shall review foreign tar- iff and nontariff barriers affecting United States ex- ports of alcoholic beverages. Not later than January 1, 1982, the President shall report to the Congress the re- sults of his review. ‘‘(b) WITHDRAWAL OF CONCESSIONS.—If, as the result of his review under subsection (a), the President deter- mines that a foreign country or instrumentality has not implemented concessions to the United States af- fecting alcoholic beverages which were negotiated in trade agreements entered into before January 3, 1980, under the authority of title I of the Trade Act of 1974 [this subchapter], the President shall withdraw, sus- pend, or modify the application of substantially equiva- lent trade agreement obligations of benefit to such for- eign country or instrumentality under section 125 of the Trade Act of 1974 (19 U.S.C. 2135). ‘‘(c) FURTHER NEGOTIATIONS TO REMOVE BARRIERS.— If, as the result of his review under subsection (a), the President determines that foreign tariff or nontariff barriers are unduly burdening or restricting the United States exports of alcoholic beverages, he shall enter into negotiations under the Trade Act of 1974 [this chapter] to eliminate or reduce such barriers.’’ § 2136. Reciprocal nondiscriminatory treatment (a) Direct and indirect imports Except as otherwise provided in this chapter or in any other provision of law, any duty or