§ 3203. — Eligible articles.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC3203]
TITLE 19--CUSTOMS DUTIES
CHAPTER 20--ANDEAN TRADE PREFERENCE
Sec. 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 vicuna.
(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 a vessel having a
certificate of documentation with a fishery endorsement
under chapter 121 of title 46.
(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.
(Pub. L. 102-182, title II, Sec. 204, Dec. 4, 1991, 105 Stat. 1239; Pub.
L. 103-465, title IV, Sec. 404(e)(2), Dec. 8, 1994, 108 Stat. 4961; Pub.
L. 107-210, div. C, title XXXI, Sec. 3103(a), (c)(2), Aug. 6, 2002, 116
Stat. 1024, 1033.)
References in Text
This chapter, referred to in subsecs. (a)(1)(B) and (f), was in the
original ``this Act'' and was translated as reading ``this title'',
meaning title II of Pub. L. 102-182 which enacted this chapter, to
reflect the probable intent of Congress.
The Caribbean Basin Economic Recovery Act, referred to in subsec.
(a)(1)(B), (4), is title II of Pub. L. 98-67, Aug. 5, 1983, 97 Stat.
384, as amended, which is classified principally to chapter 15
(Sec. 2701 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2701 of this
title and Tables.
Section 223 of the Caribbean Basin Economic Recovery Expansion Act
of 1990, referred to in subsec. (a)(4), is section 223 of Pub. L. 101-
382, title II, Aug. 20, 1990, 104 Stat. 659, which is not classified to
the Code.
The effective date of this chapter, referred to in subsec.
(b)(1)(A), means the date of enactment of Pub. L. 102-182, which was
approved Dec. 4, 1991.
The Trade Act of 1974, referred to in subsecs. (b)(1)(A), (D), and
(c)(1), is Pub. L. 93-618, Jan. 3, 1975, 88 Stat. 1978, as amended.
Chapter 1 of title II of the Act is classified generally to part 1
(Sec. 2251 et seq.) of subchapter II of chapter 12 of this title. Title
V of the Act is classified generally to subchapter V (Sec. 2461 et seq.)
of chapter 12 of this title. For complete classification of this Act to
the Code, see section 2101 of this title and Tables.
The Andean Trade Promotion and Drug Eradication Act, referred to in
subsec. (b)(6)(E), is title XXXI of Pub. L. 107-210, div. C, Aug. 6,
2002, 116 Stat. 1023. For complete classification of this Act to the
Code, see Short Title of 2002 Amendment note set out under section 3201
of this title and Tables.
Amendments
2002--Subsec. (a)(1). Pub. L. 107-210, Sec. 3103(c)(2)(A), in
introductory provisions, inserted ``(or otherwise provided for)'' after
``eligibility'' and ``(or preferential treatment)'' after ``duty-free
treatment''.
Subsec. (a)(2). Pub. L. 107-210, Sec. 3103(c)(2)(B), substituted
``paragraph (1)'' for ``subsection (a) of this section'' in introductory
provisions.
Subsec. (b). Pub. L. 107-210, Sec. 3103(a)(2), substituted
``Exceptions and special rules'' for ``Exceptions to duty-free
treatment'' in heading and amended text generally. Prior to amendment,
text read as follows: ``The duty-free treatment provided under this
chapter shall not apply to--
``(1) textile and apparel articles which are subject to textile
agreements;
``(2) footwear not designated at the time of the effective date
of this chapter as eligible for the purpose of the generalized
system of preferences under title V of the Trade Act of 1974;
``(3) tuna, prepared or preserved in any manner, in airtight
containers;
``(4) petroleum, or any product derived from petroleum, provided
for in headings 2709 and 2710 of the HTS;
``(5) 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;
``(6) articles to which reduced rates of duty apply under
subsection (c) of this section;
``(7) sugars, syrups, and molasses classified in subheadings
1701.11.03, 1701.12.02, 1701.99.02, 1702.90.32, 1806.10.42, and
2106.90.12 of the HTS; or
``(8) rum and tafia classified in subheading 2208.40.00 of the
HTS.''
Subsecs. (c) to (g). Pub. L. 107-210, Sec. 3103(a)(1), redesignated
subsecs. (d) to (g) as (c) to (f), respectively, and struck out former
subsec. (c) which related to duty reductions for certain handbags,
luggage, flat goods, work gloves, and leather wearing apparel of
beneficiary countries.
1994--Subsec. (g). Pub. L. 103-465 added subsec. (g).
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-465 effective on the date of entry into
force of the WTO Agreement with respect to the United States [Jan. 1,
1995], except as otherwise provided, see section 451 of Pub. L. 103-465,
set out as an Effective Date note under section 3601 of this title.
Transfer of Functions
For transfer of functions, personnel, assets, and liabilities of the
United States Customs Service of the Department of the Treasury,
including functions of the Secretary of the Treasury relating thereto,
to the Secretary of Homeland Security, and for treatment of related
references, see sections 203(1), 551(d), 552(d), and 557 of Title 6,
Domestic Security, and the Department of Homeland Security
Reorganization Plan of November 25, 2002, as modified, set out as a note
under section 542 of Title 6.
Delegation of Authority
For delegation of functions of President under div. C of Pub. L.
107-210, amending this section, see section 2 of Ex. Ord. No. 13277,
Nov. 19, 2002, 67 F.R. 70305, set out as a note under section 3801 of
this title.
Duty Free or Preferential Treatment of Certain Apparel Articles
Pub. L. 107-206, title III, Sec. 3001(b), Aug. 2, 2002, 116 Stat.
910, provided that: ``Any duty free or other preferential treatment
provided under the Andean Trade Preference Act [19 U.S.C. 3201 et seq.]
to apparel articles assembled from fabric formed in the United States
shall apply to such articles 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. Any duty-free or
other preferential treatment provided under the Andean Trade Preference
Act to apparel articles assembled from fabric formed in the United
States shall apply to such articles 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.''
[Section 3001(b) of Pub. L. 107-206, set out above, effective Sept.
1, 2002, see section 3001(c) of Pub. L. 107-206, set out as an Effective
Date of 2002 Amendments note under section 2703 of this title.]
Presidential Designation of ATPDEA Beneficiary Countries
Proc. No. 7616, Oct. 31, 2002, 67 F.R. 67283, designated Bolivia,
Colombia, Ecuador, and Peru as ATPDEA beneficiary countries pursuant to
section 3203(b)(6)(B) of this title and determined that these countries
have satisfied the requirements of section 3203(b)(5)(A)(ii)(I) of this
title relating to the implementation of procedures and requirements
similar to those in chapter 5 of the NAFTA.
Section Referred to in Other Sections
This section is referred to in section 3202 of this title; title 7
sections 7236, 7937.
