19 U.S.C. § 1351 : US Code - Section 1351: Foreign trade agreements

Search 19 U.S.C. § 1351 : US Code - Section 1351: Foreign trade agreements

(a) Authority of President; modification and decrease of duties;
altering import restrictions
(1) For the purpose of expanding foreign markets for the products
of the United States (as a means of assisting in establishing and
maintaining a better relationship among various branches of
American agriculture, industry, mining, and commerce) by regulating
the admission of foreign goods into the United States in accordance
with the characteristics and needs of various branches of American
production so that foreign markets will be made available to those
branches of American production which require and are capable of
developing such outlets by affording corresponding market
opportunities for foreign products in the United States, the
President, whenever he finds as a fact that any existing duties or
other import restrictions of the United States or any foreign
country are unduly burdening and restricting the foreign trade of
the United States and that the purpose above declared will be
promoted by the means hereinafter specified, is authorized from
time to time -
(A) To enter into foreign trade agreements with foreign
governments or instrumentalities thereof: Provided, That the
enactment of the Trade Agreements Extension Act of 1955 shall not
be construed to determine or indicate the approval or disapproval
by the Congress of the executive agreement known as the General
Agreement on Tariffs and Trade.
(B) To proclaim such modifications of existing duties and other
import restrictions, or such additional import restrictions, or
such continuance, and for such minimum periods, of existing
customs or excise treatment of any article covered by foreign
trade agreements, as are required or appropriate to carry out any
foreign trade agreement that the President has entered into
hereunder.
(2) No proclamation pursuant to paragraph (1)(B) of this
subsection shall be made -
(A) Increasing by more than 50 per centum any rate of duty
existing on July 1, 1934; except that a specific rate of duty
existing on July 1, 1934, may be converted to its ad valorem
equivalent based on the value of imports of the article concerned
during the calendar year 1934 (determined in the same manner as
provided in subparagraph (D)(ii)) and the proclamation may
provide an ad valorem rate of duty not in excess of 50 per centum
above such ad valorem equivalent.
(B) Transferring any article between the dutiable and free
lists.
(C) In order to carry out a foreign trade agreement entered
into by the President before June 12, 1955, or with respect to
which notice of intention to negotiate was published in the
Federal Register on November 16, 1954, decreasing by more than 50
per centum any rate of duty existing on January 1, 1945.
(D) In order to carry out a foreign trade agreement entered
into by the President on or after June 12, 1955, and before July
1, 1958, decreasing (except as provided in subparagraph (C) of
this paragraph) any rate of duty below the lowest of the
following rates:
(i) The rate 15 per centum below the rate existing on January
1, 1955.
(ii) In the case of any article subject to an ad valorem rate
of duty above 50 per centum (or a combination of ad valorem
rates aggregating more than 50 per centum), the rate 50 per
centum ad valorem (or a combination of ad valorem rates
aggregating 50 per centum). In the case of any article subject
to a specific rate of duty (or a combination of rates including
a specific rate) the ad valorem equivalent of which has been
determined by the President to have been above 50 per centum
during a period determined by the President to be a
representative period, the rate 50 per centum ad valorem or the
rate (or a combination of rates), however stated, the ad
valorem equivalent of which the President determines would have
been 50 per centum during such period. The standards of
valuation contained in section 1401a of this title (as in
effect, with respect to the article concerned, during the
representative period) shall be utilized by the President, to
the maximum extent he finds such utilization practicable, in
making the determinations under the preceding sentence.
(E) In order to carry out a foreign trade agreement entered
into by the President on or after July 1, 1958, decreasing any
rate of duty below the lowest of the rates provided for in
paragraph (4)(A) of this subsection.
(3)(A) Subject to the provisions of subparagraphs (B) and (C) of
this paragraph and of subparagraph (B) of paragraph (4) of this
subsection, the provisions of any proclamation made under paragraph
(1)(B) of this subsection, and the provisions of any proclamation
of suspension under paragraph (5) of this subsection, shall be in
effect from and after such time as is specified in the
proclamation.
(B) In the case of any decrease in duty to which paragraph (2)(D)
of this subsection applies -
(i) if the total amount of the decrease under the foreign trade
agreement does not exceed 15 per centum of the rate existing on
January 1, 1955, the amount of decrease becoming initially
effective at one time shall not exceed 5 per centum of the rate
existing on January 1, 1955;
(ii) except as provided in clause (i), not more than one-third
of the total amount of the decrease under the foreign trade
agreement shall become initially effective at one time; and
(iii) no part of the decrease after the first part shall become
initially effective until the immediately previous part shall
have been in effect for a period or periods aggregating not less
than one year.
(C) No part of any decrease in duty to which the alternative
specified in paragraph (2)(D)(i) of this subsection applies shall
become initially effective after the expiration of the three-year
period which begins on July 1, 1955. If any part of such decrease
has become effective, then for purposes of this subparagraph any
time thereafter during which such part of the decrease is not in
effect by reason of legislation of the United States or action
thereunder shall be excluded in determining when the three-year
period expires.
(D) If (in order to carry out a foreign trade agreement entered
into by the President on or after June 12, 1955) the President
determines that such action will simplify the computation of the
amount of duty imposed with respect to an article, he may exceed
any limitation specified in paragraph (2)(C) or (D) or paragraph
(4)(A) or (B) of this subsection or subparagraph (B) of this
paragraph by not more than whichever of the following is lesser:
(i) The difference between the limitation and the next lower
whole number, or
(ii) One-half of 1 per centum ad valorem.
In the case of a specific rate (or of a combination of rates which
includes a specific rate), the one-half of 1 per centum specified
in clause (ii) of the preceding sentence shall be determined in the
same manner as the ad valorem equivalent of rates not stated wholly
in ad valorem terms is determined for the purposes of paragraph
(2)(D)(ii) of this subsection.
(4)(A) No proclamation pursuant to paragraph (1)(B) of this
subsection shall be made, in order to carry out a foreign trade
agreement entered into by the President on or after July 1, 1958,
decreasing any rate of duty below the lowest of the following
rates:
(i) The rate which would result from decreasing the rate
existing on July 1, 1958, by 20 per centum of such rate.
(ii) Subject to paragraph (2)(B) of this subsection, the rate 2
per centum ad valorem below the rate existing on July 1, 1958.
(iii) The rate 50 per centum ad valorem or, in the case of any
article subject to a specific rate of duty or to a combination of
rates including a specific rate, any rate (or combination of
rates), however stated, the ad valorem equivalent of which has
been determined as 50 per centum ad valorem.
The provisions of clauses (ii) and (iii) of this subparagraph and
of subparagraph (B)(ii) of this paragraph shall, in the case of any
article, subject to a combination of ad valorem rates of duty,
apply to the aggregate of such rates; and, in the case of any
article, subject to a specific rate of duty or to a combination of
rates including a specific rate, such provisions shall apply on the
basis of the ad valorem equivalent of such rate or rates, during a
representative period (whether or not such period includes July 1,
1958), determined in the same manner as the ad valorem equivalent
of rates not stated wholly in ad valorem terms is determined for
the purpose of paragraph (2)(D)(ii) of this subsection.
(B)(i) In the case of any decrease in duty to which clause (i) of
subparagraph (A) of this paragraph applies, such decrease shall
become initially effective in not more than four annual stages, and
no amount of decrease becoming initially effective at one time
shall exceed 10 per centum of the rate of duty existing on July 1,
1958, or, in any case in which the rate has been increased since
that date, exceed such 10 per centum or one-third of the total
amount of the decrease under the foreign trade agreement, whichever
is the greater.
(ii) In the case of any decrease in duty to which clause (ii) of
subparagraph (A) of this paragraph applies, such decrease shall
become initially effective in not more than four annual stages, and
no amount of decrease becoming initially effective at one time
shall exceed 1 per centum ad valorem or, in any case in which the
rate has been increased since July 1, 1958, exceed such 1 per
centum or one-third of the total amount of the decrease under the
foreign trade agreement, whichever is the greater.
(iii) In the case of any decrease in duty to which clause (iii)
of subparagraph (A) of this paragraph applies, such decrease shall
become initially effective in not more than four annual stages, and
no amount of decrease becoming initially effective at one time
shall exceed one-third of the total amount of the decrease under
the foreign trade agreement.
(C) In the case of any decrease in duty to which subparagraph (A)
of this paragraph applies (i) no part of a decrease after the first
part shall become initially effective until the immediately
previous part shall have been in effect for a period or periods
aggregating not less than one year, nor after the first part shall
have been in effect for a period or periods aggregating more than
three years, and (ii) no part of a decrease shall become initially
effective after the expiration of the four-year period which begins
on July 1, 1962. If any part of a decrease has become effective,
then for the purposes of clauses (i) and (ii) of the preceding
sentence any time thereafter during which such part of the decrease
is not in effect by reason of legislation of the United States or
action thereunder shall be excluded in determining when the three-
year period or the four-year period, as the case may be, expires.
(5) Repealed. Pub. L. 87-794, title II, Sec. 257(b), Oct. 11,
1962, 76 Stat. 882.
(6) The President may at any time terminate, in whole or in part,
any proclamation made pursuant to this section.
(b) Cuba; preferential customs treatment; decrease of rates
Nothing in this section or the Trade Expansion Act of 1962 [19
U.S.C. 1801 et seq.] shall be construed to prevent the application,
with respect to rates of duty established under this section or the
Trade Expansion Act of 1962 pursuant to agreements with countries
other than Cuba, of the provisions of the treaty of commercial
reciprocity concluded between the United States and the Republic of
Cuba on December 11, 1902, or to preclude giving effect to an
agreement with Cuba concluded under this section or the Trade
Expansion Act of 1962, modifying the existing preferential customs
treatment of any article the growth, produce, or manufacture of
Cuba. Nothing in this chapter or the Trade Expansion Act of 1962
shall be construed to preclude the application to any product of
Cuba (including products preferentially free of duty) of a rate of
duty not higher than the rate applicable to the like products of
other foreign countries (except the Philippines), whether or not
the application of such rate involves any preferential customs
treatment. No rate of duty on products of Cuba shall be decreased -

(1) In order to carry out a foreign trade agreement entered
into by the President before June 12, 1955, by more than 50 per
centum of the rate of duty existing on January 1, 1945, with
respect to products of Cuba.
(2) In order to carry out a foreign trade agreement entered
into by the President on or after June 12, 1955, and before July
1, 1962, below the applicable alternative specified in subsection
(a)(2)(C) or (D) or (4)(A) of this section (subject to the
applicable provisions of subsection (a)(3)(B), (C), and (D) and
(4)(B) and (C) of this section), each such alternative to be read
for the purposes of this paragraph as relating to the rate of
duty applicable to products of Cuba. With respect to products of
Cuba, the limitation of subsection (a)(2)(D)(ii) or (4)(A)(iii)
of this section may be exceeded to such extent as may be required
to maintain an absolute margin of preference to which such
products are entitled.
(3) In order to carry out a foreign trade agreement entered
into after June 30, 1962, and before July 1, 1967, below the
lowest rate permissible by applying title II of the Trade
Expansion Act of 1962 [19 U.S.C. 1821 et seq.] to the rate of
duty (however established, and even though temporarily suspended
by Act of Congress or otherwise) existing on July 1, 1962, with
respect to such product.
(c) Definitions
(1) As used in this section, the term "duties and other import
restrictions" includes (A) rate and form of import duties and
classification of articles, and (B) limitations, prohibitions,
charges, and exactions other than duties, imposed on importation or
imposed for the regulation of imports.
(2) For purposes of this section -
(A) Except as provided in subsection (d) of this section, the
terms "existing on July 1, 1934", "existing on January 1, 1945",
"existing on January 1, 1955", and "existing on July 1, 1958"
refer to rates of duty (however established, and even though
temporarily suspended by Act of Congress or otherwise) existing
on the date specified, except rates in effect by reason of action
taken pursuant to section 1362 of this title.
(B) The term "existing" without the specification of any date,
when used with respect to any matter relating to the conclusion
of, or proclamation to carry out, a foreign trade agreement,
means existing on the day on which that trade agreement is
entered into.
(d) Rate basis for additional increases or decreases; restoration
of terminated treaties forbidden
(1) When any rate of duty has been increased or decreased for the
duration of war or an emergency, by agreement or otherwise, any
further increase or decrease shall be computed upon the basis of
the post-war or post-emergency rate carried in such agreement or
otherwise.
(2) Where under a foreign trade agreement the United States has
reserved the unqualified right to withdraw or modify, after the
termination of war or an emergency, a rate on a specific commodity,
the rate on such commodity to be considered as "existing on January
1, 1945" for the purpose of this section shall be the rate which
would have existed if the agreement had not been entered into.
(3) No proclamation shall be made pursuant to this section for
the purpose of carrying out any foreign trade agreement the
proclamation with respect to which has been terminated in whole by
the President prior to July 5, 1945.
(e) Repealed. Pub. L. 87-794, title II, Sec. 257(b), Oct. 11, 1962,
76 Stat. 882
(f) Information and advice from industry, agriculture, and labor
It is declared to be the sense of the Congress that the
President, during the course of negotiating any foreign trade
agreement under this section, should seek information and advice
with respect to such agreement from representatives of industry,
agriculture, and labor.