19 U.S.C. § 3203 : US Code - Section 3203: Eligible articles

Search 19 U.S.C. § 3203 : US Code - Section 3203: Eligible articles

(a) In general
(1) Unless otherwise excluded from eligibility (or otherwise
provided for) by this chapter, the duty-free treatment (or
preferential treatment) provided under this chapter shall apply to
any article which is the growth, product, or manufacture of a
beneficiary country if -
(A) that article is imported directly from a beneficiary
country into the customs territory of the United States; and
(B) the sum of -
(i) the cost or value of the materials produced in a
beneficiary country or 2 or more beneficiary countries under
this chapter, or a beneficiary country under the Caribbean
Basin Economic Recovery Act [19 U.S.C. 2701 et seq.] or 2 or
more such countries, plus
(ii) the direct costs of processing operations performed in a
beneficiary country or countries (under this chapter or the
Caribbean Basin Economic Recovery Act),
is not less than 35 percent of the appraised value of such
article at the time it is entered.
For purposes of determining the percentage referred to in
subparagraph (B), the term "beneficiary country" includes the
Commonwealth of Puerto Rico and the United States Virgin Islands.
If the cost or value of materials produced in the customs territory
of the United States (other than the Commonwealth of Puerto Rico)
is included with respect to an article to which this paragraph
applies, an amount not to exceed 15 percent of the appraised value
of the article at the time it is entered that is attributed to such
United States cost or value may be applied toward determining the
percentage referred to in subparagraph (B).
(2) The Secretary of the Treasury shall prescribe such
regulations as may be necessary to carry out paragraph (1)
including, but not limited to, regulations providing that, in order
to be eligible for duty-free treatment under this chapter, an
article must be wholly the growth, product, or manufacture of a
beneficiary country, or must be a new or different article of
commerce which has been grown, produced, or manufactured in the
beneficiary country; but no article or material of a beneficiary
country shall be eligible for such treatment by virtue of having
merely undergone -
(A) simple combining or packaging operations, or
(B) mere dilution with water or mere dilution with another
substance that does not materially alter the characteristics of
the article.
(3) As used in this subsection, the phrase "direct costs of
processing operations" includes, but is not limited to -
(A) all actual labor costs involved in the growth, production,
manufacture, or assembly of the specific merchandise, including
fringe benefits, on-the-job training and the cost of engineering,
supervisory, quality control, and similar personnel; and
(B) dies, molds, tooling, and depreciation on machinery and
equipment which are allocable to the specific merchandise.
Such phrase does not include costs which are not directly
attributable to the merchandise concerned or are not costs of
manufacturing the product, such as (i) profit, and (ii) general
expense of doing business which are either not allocable to the
specific merchandise or are not related to the growth, production,
manufacture, or assembly of the merchandise, such as administrative
salaries, casualty and liability insurance, advertising, interest,
and salesmen's salaries, commissions or expenses.
(4) If the President, pursuant to section 223 of the Caribbean
Basin Economic Recovery Expansion Act of 1990, considers that the
implementation of revised rules of origin for products of
beneficiary countries designated under the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2701 et seq.) would be appropriate, the
President may include similarly revised rules of origin for
products of beneficiary countries designated under this chapter in
any suggested legislation transmitted to the Congress that contains
such rules of origin for products of beneficiary countries under
the Caribbean Basin Economic Recovery Act.
(b) Exceptions and special rules
(1) Certain articles that are not import-sensitive
The President may proclaim duty-free treatment under this
chapter for any article described in subparagraph (A), (B), (C),
or (D) that is the growth, product, or manufacture of an ATPDEA
beneficiary country, that is imported directly into the customs
territory of the United States from an ATPDEA beneficiary
country, and that meets the requirements of this section, if the
President determines that such article is not import-sensitive in
the context of imports from ATPDEA beneficiary countries:
(A) Footwear not designated at the time of the effective date
of this chapter as eligible for purposes of the generalized
system of preferences under title V of the Trade Act of 1974
[19 U.S.C. 2461 et seq.].
(B) Petroleum, or any product derived from petroleum,
provided for in headings 2709 and 2710 of the HTS.
(C) Watches and watch parts (including cases, bracelets and
straps), of whatever type including, but not limited to,
mechanical, quartz digital or quartz analog, if such watches or
watch parts contain any material which is the product of any
country with respect to which HTS column 2 rates of duty apply.
(D) Handbags, luggage, flat goods, work gloves, and leather
wearing apparel that were not designated on August 5, 1983, as
eligible articles for purposes of the generalized system of
preferences under title V of the Trade Act of 1974.
(2) Exclusions
Subject to paragraph (3), duty-free treatment under this
chapter may not be extended to -
(A) textiles and apparel articles which were not eligible
articles for purposes of this chapter on January 1, 1994, as
this chapter was in effect on that date;
(B) rum and tafia classified in subheading 2208.40 of the
HTS;
(C) sugars, syrups, and sugar-containing products subject to
over-quota duty rates under applicable tariff-rate quotas; or
(D) tuna prepared or preserved in any manner in airtight
containers, except as provided in paragraph (4).
(3) Apparel articles and certain textile articles
(A) In general
Apparel articles that are imported directly into the customs
territory of the United States from an ATPDEA beneficiary
country shall enter the United States free of duty and free of
any quantitative restrictions, limitations, or consultation
levels, but only if such articles are described in subparagraph
(B).
(B) Covered articles
The apparel articles referred to in subparagraph (A) are the
following:
(i) Apparel articles assembled from products of the United
States or ATPDEA beneficiary countries or products not
available in commercial quantities
Apparel articles sewn or otherwise assembled in 1 or more
ATPDEA beneficiary countries, or the United States, or both,
exclusively from any one or any combination of the following:
(I) Fabrics or fabric components wholly formed, or
components knit-to-shape, in the United States, from yarns
wholly formed in the United States or 1 or more ATPDEA
beneficiary countries (including fabrics not formed from
yarns, if such fabrics are classifiable under heading 5602
or 5603 of the HTS and are formed in the United States).
Apparel articles shall qualify under this subclause only if
all dyeing, printing, and finishing of the fabrics from
which the articles are assembled, if the fabrics are knit
fabrics, is carried out in the United States. Apparel
articles shall qualify under this subclause only if all
dyeing, printing, and finishing of the fabrics from which
the articles are assembled, if the fabrics are woven
fabrics, is carried out in the United States.
(II) Fabrics or fabric components formed or components
knit-to-shape, in 1 or more ATPDEA beneficiary countries,
from yarns wholly formed in 1 or more ATPDEA beneficiary
countries, if such fabrics (including fabrics not formed
from yarns, if such fabrics are classifiable under heading
5602 or 5603 of the HTS and are formed in 1 or more ATPDEA
beneficiary countries) or components are in chief value of
llama, alpaca, or vicun&241;a.
(III) Fabrics or yarns, to the extent that apparel
articles of such fabrics or yarns would be eligible for
preferential treatment, without regard to the source of the
fabrics or yarns, under Annex 401 of the NAFTA.
(ii) Additional fabrics
At the request of any interested party, the President is
authorized to proclaim additional fabrics and yarns as
eligible for preferential treatment under clause (i)(III) if -

(I) the President determines that such fabrics or yarns
cannot be supplied by the domestic industry in commercial
quantities in a timely manner;
(II) the President has obtained advice regarding the
proposed action from the appropriate advisory committee
established under section 135 of the Trade Act of 1974 (19
U.S.C. 2155) and the United States International Trade
Commission;
(III) within 60 days after the request, the President has
submitted a report to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance
of the Senate that sets forth the action proposed to be
proclaimed and the reasons for such action, and the advice
obtained under subclause (II);
(IV) a period of 60 calendar days, beginning with the
first day on which the President has met the requirements
of subclause (III), has expired; and
(V) the President has consulted with such committees
regarding the proposed action during the period referred to
in subclause (III).
(iii) Apparel articles assembled in 1 or more ATPDEA
beneficiary countries from regional fabrics or regional
components
(I) Subject to the limitation set forth in subclause (II),
apparel articles sewn or otherwise assembled in 1 or more
ATPDEA beneficiary countries from fabrics or from fabric
components formed or from components knit-to-shape, in 1 or
more ATPDEA beneficiary countries, from yarns wholly formed
in the United States or 1 or more ATPDEA beneficiary
countries (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the
HTS and are formed in 1 or more ATPDEA beneficiary
countries), whether or not the apparel articles are also made
from any of the fabrics, fabric components formed, or
components knit-to-shape described in clause (i) (unless the
apparel articles are made exclusively from any of the
fabrics, fabric components formed, or components knit-to-
shape described in clause (i)).
(II) The preferential treatment referred to in subclause
(I) shall be extended in the 1-year period beginning October
1, 2002, and in each of the 4 succeeding 1-year periods, to
imports of apparel articles in an amount not to exceed the
applicable percentage of the aggregate square meter
equivalents of all apparel articles imported into the United
States in the preceding 12-month period for which data are
available.
(III) For purposes of subclause (II), the term "applicable
percentage" means 2 percent for the 1-year period beginning
October 1, 2002, increased in each of the 4 succeeding 1-year
periods by equal increments, so that for the period beginning
October 1, 2006, the applicable percentage does not exceed 5
percent.
(iv) Handloomed, handmade, and folklore articles
A handloomed, handmade, or folklore article of an ATPDEA
beneficiary country identified under subparagraph (C) that is
certified as such by the competent authority of such
beneficiary country.
(v) Certain other apparel articles
(I) General rule
Any apparel article classifiable under subheading 6212.10
of the HTS, except for articles entered under clause (i),
(ii), (iii), or (iv), if the article is both cut and sewn
or otherwise assembled in the United States, or one or more
ATPDEA beneficiary countries, or both.
(II) Limitation
During the 1-year period beginning on October 1, 2003,
and during each of the 3 succeeding 1-year periods, apparel
articles described in subclause (I) of a producer or an
entity controlling production shall be eligible for
preferential treatment under this paragraph only if the
aggregate cost of fabrics (exclusive of all findings and
trimmings) formed in the United States that are used in the
production of all such articles of that producer or entity
that are entered and eligible under this clause during the
preceding 1-year period is at least 75 percent of the
aggregate declared customs value of the fabric (exclusive
of all findings and trimmings) contained in all such
articles of that producer or entity that are entered and
eligible under this clause during the preceding 1-year
period.
(III) Development of procedure to ensure compliance
The United States Customs Service shall develop and
implement methods and procedures to ensure ongoing
compliance with the requirement set forth in subclause
(II). If the Customs Service finds that a producer or an
entity controlling production has not satisfied such
requirement in a 1-year period, then apparel articles
described in subclause (I) of that producer or entity shall
be ineligible for preferential treatment under this
paragraph during any succeeding 1-year period until the
aggregate cost of fabrics (exclusive of all findings and
trimmings) formed in the United States that are used in the
production of such articles of that producer or entity
entered during the preceding 1-year period is at least 85
percent of the aggregate declared customs value of the
fabric (exclusive of all findings and trimmings) contained
in all such articles of that producer or entity that are
entered and eligible under this clause during the preceding
1-year period.
(vi) Special rules
(I) Exception for findings and trimmings
An article otherwise eligible for preferential treatment
under this paragraph shall not be ineligible for such
treatment because the article contains findings or
trimmings of foreign origin, if such findings and trimmings
do not exceed 25 percent of the cost of the components of
the assembled product. Examples of findings and trimmings
are sewing thread, hooks and eyes, snaps, buttons, "bow
buds", decorative lace, trim, elastic strips, zippers,
including zipper tapes and labels, and other similar
products.
(II) Certain interlining
(aa) An article otherwise eligible for preferential
treatment under this paragraph shall not be ineligible for
such treatment because the article contains certain
interlinings of foreign origin, if the value of such
interlinings (and any findings and trimmings) does not
exceed 25 percent of the cost of the components of the
assembled article.
(bb) Interlinings eligible for the treatment described in
division (aa) include only a chest type plate, "hymo"
piece, or "sleeve header", of woven or weft-inserted warp
knit construction and of coarse animal hair or man-made
filaments.
(cc) The treatment described in this subclause shall
terminate if the President makes a determination that
United States manufacturers are producing such interlinings
in the United States in commercial quantities.
(III) De minimis rule
An article that would otherwise be ineligible for
preferential treatment under this subparagraph because the
article contains yarns not wholly formed in the United
States or in one or more ATPDEA beneficiary countries shall
not be ineligible for such treatment if the total weight of
all such yarns is not more than 7 percent of the total
weight of the good.
(IV) Special origin rule
An article otherwise eligible for preferential treatment
under clause (i) or (iii) shall not be ineligible for such
treatment because the article contains nylon filament yarn
(other than elastomeric yarn) that is classifiable under
subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60,
5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00,
or 5402.61.00 of the HTS from a country that is a party to
an agreement with the United States establishing a free
trade area, which entered into force before January 1,
1995.
(vii) Textile luggage
Textile luggage -
(I) assembled in an ATPDEA beneficiary country from
fabric wholly formed and cut in the United States, from
yarns wholly formed in the United States, that is entered
under subheading 9802.00.80 of the HTS; or
(II) assembled from fabric cut in an ATPDEA beneficiary
country from fabric wholly formed in the United States from
yarns wholly formed in the United States.
(C) Handloomed, handmade, and folklore articles
For purposes of subparagraph (B)(iv), the President shall
consult with representatives of the ATPDEA beneficiary
countries concerned for the purpose of identifying particular
textile and apparel goods that are mutually agreed upon as
being handloomed, handmade, or folklore goods of a kind
described in section 2.3(a), (b), or (c) of the Annex or
Appendix 3.1.B.11 of the Annex.
(D) Penalties for transshipment
(i) Penalties for exporters
If the President determines, based on sufficient evidence,
that an exporter has engaged in transshipment with respect to
apparel articles from an ATPDEA beneficiary country, then the
President shall deny all benefits under this chapter to such
exporter, and any successor of such exporter, for a period of
2 years.
(ii) Penalties for countries
Whenever the President finds, based on sufficient evidence,
that transshipment has occurred, the President shall request
that the ATPDEA beneficiary country or countries through
whose territory the transshipment has occurred take all
necessary and appropriate actions to prevent such
transshipment. If the President determines that a country is
not taking such actions, the President shall reduce the
quantities of apparel articles that may be imported into the
United States from such country by the quantity of the
transshipped articles multiplied by 3, to the extent
consistent with the obligations of the United States under
the WTO.
(iii) Transshipment described
Transshipment within the meaning of this subparagraph has
occurred when preferential treatment under subparagraph (A)
has been claimed for an apparel article on the basis of
material false information concerning the country of origin,
manufacture, processing, or assembly of the article or any of
its components. For purposes of this clause, false
information is material if disclosure of the true information
would mean or would have meant that the article is or was
ineligible for preferential treatment under subparagraph (A).
(E) Bilateral emergency actions
(i) In general
The President may take bilateral emergency tariff actions
of a kind described in section 4 of the Annex with respect to
any apparel article imported from an ATPDEA beneficiary
country if the application of tariff treatment under
subparagraph (A) to such article results in conditions that
would be cause for the taking of such actions under such
section 4 with respect to a like article described in the
same 8-digit subheading of the HTS that is imported from
Mexico.
(ii) Rules relating to bilateral emergency action
For purposes of applying bilateral emergency action under
this subparagraph -
(I) the requirements of paragraph (5) of section 4 of the
Annex (relating to providing compensation) shall not apply;
(II) the term "transition period" in section 4 of the
Annex shall mean the period ending December 31, 2006; and
(III) the requirements to consult specified in section 4
of the Annex shall be treated as satisfied if the President
requests consultations with the ATPDEA beneficiary country
in question and the country does not agree to consult
within the time period specified under section 4 of the
Annex.
(4) Tuna
(A) General rule
Tuna that is harvested by United States vessels or ATPDEA
beneficiary country vessels, that is prepared or preserved in
any manner, in an ATPDEA beneficiary country, in foil or other
flexible airtight containers weighing with their contents not
more than 6.8 kilograms each, and that is imported directly
into the customs territory of the United States from an ATPDEA
beneficiary country, shall enter the United States free of duty
and free of any quantitative restrictions.
(B) Definitions
In this paragraph -
(i) United States vessel
A "United States vessel" is -
(I) a vessel that has a certificate of documentation with
a fishery endorsement under chapter 121 of title 46; or
(II) in the case of a vessel without a fishery
endorsement, a vessel that is documented under the laws of
the United States and for which a license has been issued
pursuant to section 973g of title 16.
(ii) ATPDEA vessel
An "ATPDEA vessel" is a vessel -
(I) which is registered or recorded in an ATPDEA
beneficiary country;
(II) which sails under the flag of an ATPDEA beneficiary
country;
(III) which is at least 75 percent owned by nationals of
an ATPDEA beneficiary country or by a company having its
principal place of business in an ATPDEA beneficiary
country, of which the manager or managers, chairman of the
board of directors or of the supervisory board, and the
majority of the members of such boards are nationals of an
ATPDEA beneficiary country and of which, in the case of a
company, at least 50 percent of the capital is owned by an
ATPDEA beneficiary country or by public bodies or nationals
of an ATPDEA beneficiary country;
(IV) of which the master and officers are nationals of an
ATPDEA beneficiary country; and
(V) of which at least 75 percent of the crew are
nationals of an ATPDEA beneficiary country.
(5) Customs procedures
(A) In general
(i) Regulations
Any importer that claims preferential treatment under
paragraph (1), (3), or (4) shall comply with customs
procedures similar in all material respects to the
requirements of Article 502(1) of the NAFTA as implemented
pursuant to United States law, in accordance with regulations
promulgated by the Secretary of the Treasury.
(ii) Determination
(I) In general
In order to qualify for the preferential treatment under
paragraph (1), (3), or (4) and for a Certificate of Origin
to be valid with respect to any article for which such
treatment is claimed, there shall be in effect a
determination by the President that each country described
in subclause (II) -
(aa) has implemented and follows, or
(bb) is making substantial progress toward implementing
and following,
procedures and requirements similar in all material
respects to the relevant procedures and requirements under
chapter 5 of the NAFTA.
(II) Country described
A country is described in this subclause if it is an
ATPDEA beneficiary country -
(aa) from which the article is exported; or
(bb) in which materials used in the production of the
article originate or in which the article or such
materials undergo production that contributes to a claim
that the article is eligible for preferential treatment
under paragraph (1), (3), or (4).
(B) Certificate of Origin
The Certificate of Origin that otherwise would be required
pursuant to the provisions of subparagraph (A) shall not be
required in the case of an article imported under paragraph
(1), (3), or (4) if such Certificate of Origin would not be
required under Article 503 of the NAFTA (as implemented
pursuant to United States law), if the article were imported
from Mexico.
(C) Report on cooperation of ATPDEA countries concerning
circumvention
The United States Commissioner of Customs shall conduct a
study analyzing the extent to which each ATPDEA beneficiary
country -
(i) has cooperated fully with the United States, consistent
with its domestic laws and procedures, in instances of
circumvention or alleged circumvention of existing quotas on
imports of textile and apparel goods, to establish necessary
relevant facts in the places of import, export, and, where
applicable, transshipment, including investigation of
circumvention practices, exchanges of documents,
correspondence, reports, and other relevant information, to
the extent such information is available;
(ii) has taken appropriate measures, consistent with its
domestic laws and procedures, against exporters and importers
involved in instances of false declaration concerning
quantities, description, classification, or origin of textile
and apparel goods; and
(iii) has penalized the individuals and entities involved
in any such circumvention, consistent with its domestic laws
and procedures, and has worked closely to seek the
cooperation of any third country to prevent such
circumvention from taking place in that third country.
The Commissioner of Customs shall submit to the Congress, not
later than October 1, 2003, a report on the study conducted
under this subparagraph.
(6) Definitions
In this subsection -
(A) Annex
The term "the Annex" means Annex 300-B of the NAFTA.
(B) ATPDEA beneficiary country
The term "ATPDEA beneficiary country" means any "beneficiary
country", as defined in section 3202(a)(1) of this title, which
the President designates as an ATPDEA beneficiary country,
taking into account the criteria contained in subsections (c)
and (d) of section 3202 of this title and other appropriate
criteria, including the following:
(i) Whether the beneficiary country has demonstrated a
commitment to -
(I) undertake its obligations under the WTO, including
those agreements listed in section 3511(d) of this title,
on or ahead of schedule; and
(II) participate in negotiations toward the completion of
the FTAA or another free trade agreement.
(ii) The extent to which the country provides protection of
intellectual property rights consistent with or greater than
the protection afforded under the Agreement on Trade-Related
Aspects of Intellectual Property Rights described in section
3511(d)(15) of this title.
(iii) The extent to which the country provides
internationally recognized worker rights, including -
(I) the right of association;
(II) the right to organize and bargain collectively;
(III) a prohibition on the use of any form of forced or
compulsory labor;
(IV) a minimum age for the employment of children; and
(V) acceptable conditions of work with respect to minimum
wages, hours of work, and occupational safety and health.
(iv) Whether the country has implemented its commitments to
eliminate the worst forms of child labor, as defined in
section 507(6) of the Trade Act of 1974 [19 U.S.C. 2467(6)].
(v) The extent to which the country has met the
counternarcotics certification criteria set forth in section
2291j of title 22 for eligibility for United States
assistance.
(vi) The extent to which the country has taken steps to
become a party to and implements the Inter-American
Convention Against Corruption.
(vii) The extent to which the country -
(I) applies transparent, nondiscriminatory, and
competitive procedures in government procurement equivalent
to those contained in the Agreement on Government
Procurement described in section 3511(d)(17) of this title;
and
(II) contributes to efforts in international fora to
develop and implement international rules in transparency
in government procurement.
(viii) The extent to which the country has taken steps to
support the efforts of the United States to combat terrorism.
(C) NAFTA
The term "NAFTA" means the North American Free Trade
Agreement entered into between the United States, Mexico, and
Canada on December 17, 1992.
(D) WTO
The term "WTO" has the meaning given that term in section
3501 of this title.
(E) ATPDEA
The term "ATPDEA" means the Andean Trade Promotion and Drug
Eradication Act.
(F) FTAA
The term "FTAA" means the Free Trade Area for the Americas.
(c) Suspension of duty-free treatment
(1) The President may by proclamation suspend the duty-free
treatment provided by this chapter with respect to any eligible
article and may proclaim a duty rate for such article if such
action is proclaimed under chapter 1 of title II of the Trade Act
of 1974 [19 U.S.C. 2251 et seq.] or section 1862 of this title.
(2) In any report by the United States International Trade
Commission to the President under section 202(f) of the Trade Act
of 1974 [19 U.S.C. 2252(f)] regarding any article for which duty-
free treatment has been proclaimed by the President pursuant to
this chapter, the Commission shall state whether and to what extent
its findings and recommendations apply to such article when
imported from beneficiary countries.
(3) For purposes of section 203 of the Trade Act of 1974 [19
U.S.C. 2253], the suspension of the duty-free treatment provided by
this chapter shall be treated as an increase in duty.
(4) No proclamation providing solely for a suspension referred to
in paragraph (3) of this subsection with respect to any article
shall be taken under section 203 of the Trade Act of 1974 [19
U.S.C. 2253] unless the United States International Trade
Commission, in addition to making an affirmative determination with
respect to such article under section 202(b) of the Trade Act of
1974 [19 U.S.C. 2252(b)], determines in the course of its
investigation under such section that the serious injury (or threat
thereof) substantially caused by imports to the domestic industry
producing a like or directly competitive article results from the
duty-free treatment provided by this chapter.
(5)(A) Any action taken under section 203 of the Trade Act of
1974 [19 U.S.C. 2253] that is in effect when duty-free treatment is
proclaimed under section 3201 of this title shall remain in effect
until modified or terminated.
(B) If any article is subject to any such action at the time duty-
free treatment is proclaimed under section 3201 of this title, the
President may reduce or terminate the application of such action to
the importation of such article from beneficiary countries prior to
the otherwise scheduled date on which such reduction or termination
would occur pursuant to the criteria and procedures of section 204
of the Trade Act of 1974 [19 U.S.C. 2254].
(d) Emergency relief with respect to perishable products
(1) If a petition is filed with the United States International
Trade Commission pursuant to the provisions of section 201 of the
Trade Act of 1974 [19 U.S.C. 2251] regarding a perishable product
and alleging injury from imports from beneficiary countries, then
the petition may also be filed with the Secretary of Agriculture
with a request that emergency relief be granted pursuant to
paragraph (3) of this subsection with respect to such article.
(2) Within 14 days after the filing of a petition under paragraph
(1) of this subsection -
(A) if the Secretary of Agriculture has reason to believe that
a perishable product from a beneficiary country is being imported
into the United States in such increased quantities as to be a
substantial cause of serious injury, or the threat thereof, to
the domestic industry producing a perishable product like or
directly competitive with the imported product and that emergency
action is warranted, he shall advise the President and recommend
that the President take emergency action; or
(B) the Secretary of Agriculture shall publish a notice of his
determination not to recommend the imposition of emergency action
and so advise the petitioner.
(3) Within 7 days after the President receives a recommendation
from the Secretary of Agriculture to take emergency action pursuant
to paragraph (2) of this subsection, he shall issue a proclamation
withdrawing the duty-free treatment provided by this chapter or
publish a notice of his determination not to take emergency action.
(4) The emergency action provided by paragraph (3) of this
subsection shall cease to apply -
(A) upon the taking of action under section 203 of the Trade
Act of 1974 [19 U.S.C. 2253],
(B) on the day a determination by the President not to take
action under section 203(b)(2) of such Act becomes final,
(C) in the event of a report of the United States International
Trade Commission containing a negative finding, on the day of the
Commission's report is submitted to the President, or
(D) whenever the President determines that because of changed
circumstances such relief is no longer warranted.
(5) For purposes of this subsection, the term "perishable
product" means -
(A) live plants and fresh cut flowers provided for in chapter 6
of the HTS;
(B) fresh or chilled vegetables provided for in headings 0701
through 0709 (except subheading 0709.52.00) and heading 0714 of
the HTS;
(C) fresh fruit provided for in subheadings 0804.20 through
0810.90 (except citrons of subheadings 0805.90.00, tamarinds and
kiwi fruit of subheading 0810.90.20, and cashew apples, mameyes
colorados, sapodillas, soursops and sweetsops of subheading
0810.90.40) of the HTS; or
(D) concentrated citrus fruit juice provided for in subheadings
2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of
the HTS.
(e) Fees under section 624 of title 7
No proclamation issued pursuant to this chapter shall affect fees
imposed pursuant to section 624 of title 7.
(f) Tariff-rate quotas
No quantity of an agricultural product subject to a tariff-rate
quota that exceeds the in-quota quantity shall be eligible for duty-
free treatment under this chapter.