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Title 19 — Customs Duties

Part 2 · Chapter 12 — Trade Act of 1974

§ 2133. Compensation authority

Statutory text

(a)

New concessions

Whenever—

(1)

any action taken under part 1 of subchapter II or subchapter III, or under part 2 of subchapter IV of this chapter; or

(2)

any judicial or administrative tariff reclassification that becomes final after ;

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 compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and

(B)

may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate 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 proclaimed as the final stage under such section 2902(a) of this title.

(3)

If the President determines that such action will simplify the computation of the amount of duty imposed with respect to an article, 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 reduction applicable to the relevant action under sections 2253(e) and 2254 of this title.

(c)

Consideration of past violations of trade concessions

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 authority for granting new concessions as compensation

Notwithstanding the provisions of subsection (a), the authority delegated under section 2902 of this title shall be used for the purpose of granting new concessions as compensation within the meaning of this section until such authority terminates.

(e)

International obligations determination prerequisite 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 authorized under this section is necessary or appropriate to meet the international obligations of the United States.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Trade Act of 1974

    Pub. L. 93–618 title I § 123 · 88 Stat. 1978

    Enacted · 19 U.S.C. § 2133

    Pub. L. 93–618, title I, § 123, Jan. 3, 1975, 88 Stat. 1989

    Source evidence

    Code source credit
    Pub. L. 93–618, title I, § 123, Jan. 3, 1975, 88 Stat. 1989

    Enacted provision · exact public law section
    SEC. 123. COMPENSATION AUTHORITY. (a) Whenever any action has been taken under section 203 to Post, p. 2015. 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 continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement. (b) (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 109, the proclamation made pursuant to subsection (a) may provide for the reduction of each rate of duty at each such stage proclaimed under section 101 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 proclaimed as the final stage under section 101. (3) If the President determines that such action will simplify the computation of the amount of duty imposed with respect to an article, 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 reduction applicable to the relevant import relief under section 19 USC 2134. 203(h). (c) 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) Notwithstanding the provisions of subsection (a), the authority delegated under section 101 shall be used for the purpose of granting new concessions as compensation within the meaning of this section until such authority terminates.

  2. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1104(1) · 102 Stat. 1107

    Amended · 19 U.S.C. § 2133(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—

    Source evidence

    Code amendment note
    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 continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.”

    Enacted provision · exact public law section
    SEC. 1104. COMPENSATION AUTHORITY. Section 123 of the Trade Act of 1974 (19 U.S.C. 2133) is amended— (1) by amending subsection (a) to read as follows: “(a) Whenever— “(1) any action taken under chapter 1 of title II or chapter 1 of title III; or “(2) any judicial or administrative tariff reclassification that becomes final after the date of the enactment of the Omnibus Trade and Competitiveness Act of 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 compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and “(B) may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.”; (2) by amending subsection (b)(2) by— (A) striking out “section 109” and inserting “section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988”, and (B) striking out “section 101” each place it appears and inserting “such section 1102(a)”; (3) by striking out “section 101” in subsection (d) and inserting “section 1102 of the Omnibus Trade and Competitiveness Act of 1988”; and (4) by adding at the end thereof the following new subsection: “(e) The provisions of this section shall apply by reason of action taken under chapter 1 of title III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States.”.

    Effective date note
    Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to 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.

  3. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1104(2) · 102 Stat. 1107

    1. Substituted · 19 U.S.C. § 2133(b)(2)

      Pub. L. 100–418, § 1104(2), substituted “section 2902(a)” for “section 2119” in two places

    2. Substituted · 19 U.S.C. § 2133(b)(2)

      Pub. L. 100–418, § 1104(2), substituted “such section 2902(a)” for “section 2111” in two places

    Source evidence

    Code amendment note
    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.

    Enacted provision · exact public law section
    (1) by amending subsection (a) to read as follows: “(a) Whenever— “(1) any action taken under chapter 1 of title II or chapter 1 of title III; or “(2) any judicial or administrative tariff reclassification that becomes final after the date of the enactment of the Omnibus Trade and Competitiveness Act of 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 compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and “(B) may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.”;

    Effective date note
    Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to 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.

  4. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1401(b)(1)(A) · 102 Stat. 1107

    Substituted · 19 U.S.C. § 2133(b)(4)

    Pub. L. 100–418, § 1401(b)(1)(A), substituted “action under sections 2253(e) and 2254 of this title” for “import relief under section 2253(h) of this title”

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 100–418, § 1401(b)(1)(A), substituted “action under sections 2253(e) and 2254 of this title” for “import relief under section 2253(h) of this title”.

    Enacted provision · exact public law section
    (A) section 123(b)(4) is amended by striking out “import 19 USC 2133. relief under section 203(h).” and inserting “action under sections 203(e) and 204.”.

    Effective date note
    Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to 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.

  5. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1104(3) · 102 Stat. 1107

    Substituted · 19 U.S.C. § 2133(d)

    Pub. L. 100–418, § 1104(3), substituted “section 2902” for “section 2111”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 100–418, § 1104(3), substituted “section 2902” for “section 2111”.

    Enacted provision · exact public law section
    (3) by striking out “section 101” in subsection (d) and inserting “section 1102 of the Omnibus Trade and Competitiveness Act of 1988”; and

    Effective date note
    Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to 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.

  6. Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 § 1104(4) · 102 Stat. 1107

    Added · 19 U.S.C. § 2133(e)

    Pub. L. 100–418, § 1104(4), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 100–418, § 1104(4), added subsec. (e).

    Enacted provision · exact public law section
    (4) by adding at the end thereof the following new subsection: “(e) The provisions of this section shall apply by reason of action taken under chapter 1 of title III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States.”.

    Effective date note
    Amendment by section 1401(b)(1)(A) of Pub. L. 100–418 effective Aug. 23, 1988, and applicable with respect to 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.

  7. Pub. L. 106–286 div. A title I § 104 · 114 Stat. 880

    Inserted · 19 U.S.C. § 2133(a)(1)

    Pub. L. 106–286 inserted “, or under part 2 of subchapter IV of this chapter” after “subchapter III of this chapter”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 106–286 inserted “, or under part 2 of subchapter IV of this chapter” after “subchapter III of this chapter”.

    Enacted provision · exact public law section
    SEC. 104. AMENDMENT TO SECTION 123 OF THE TRADE ACT OF 1974—COMPENSATION AUTHORITY. Section 123(a)(1) of the Trade Act of 1974 (19 U.S.C. 2133(a)(1)) is amended by inserting after “title III” the following: “, or under chapter 2 of title IV of the Trade Act of 1974”.

8 of 8 references resolved to an enrolled provision

Editorial Notes

Amendments1988–2000 · 2 rounds

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 continuance of any existing duty, or such continuance of existing 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), substituted “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 “section 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 , and applicable with respect to 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.

Credits

1975–2000 · 3 acts
  1. 1975Pub. L. 93–618, title I, § 123, , 88 Stat. 1989
  2. 1988Pub. L. 100–418, title I, §§ 1104, 1401(b)(1)(A), , 102 Stat. 1132, 1239
  3. 2000Pub. L. 106–286, div. A, title I, § 104, , 114 Stat. 891.
Show as published

(Pub. L. 93–618, title I, § 123, , 88 Stat. 1989; Pub. L. 100–418, title I, §§ 1104, 1401(b)(1)(A), , 102 Stat. 1132, 1239; Pub. L. 106–286, div. A, title I, § 104, , 114 Stat. 891.)

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