19 U.S.C. § 2463
Except as provided in subsection (b), the President is authorized to designate articles as eligible articles from all beneficiary developing countries for purposes of this subchapter by Executive order or Presidential proclamation after receiving the advice of the International Trade Commission in accordance with subsection (e).
Except for articles described in subparagraphs (A), (B), and (E) of subsection (b)(1) and articles described in paragraphs (2) and (3) of subsection (b), the President may, in carrying out section 2462(d)(1) of this title and subsection (c)(1) of this section, designate articles as eligible articles only for countries designated as least-developed beneficiary developing countries under section 2462(a)(2) of this title if, after receiving the advice of the International Trade Commission in accordance with subsection (e) of this section, the President determines that such articles are not import-sensitive in the context of imports from least-developed beneficiary developing countries.
If, after receiving the advice of the International Trade Commission under subsection (e), an article has been formally considered for designation as an eligible article under this subchapter and denied such designation, such article may not be reconsidered for such designation for a period of 3 years after such denial.
The duty-free treatment provided under this subchapter shall apply to any eligible article which is the growth, product, or manufacture of a beneficiary developing country if-
is not less than 35 percent of the appraised value of such article at the time it is entered.
An article shall not be treated as the growth, product, or manufacture of a beneficiary developing country by virtue of having merely undergone-
The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out paragraph (2), including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under this subchapter, an article-
The President may not designate any article as an eligible article under subsection (a) if such article is within one of the following categories of import-sensitive articles:
An article shall not be an eligible article for purposes of this subchapter for any period during which such article is the subject of any action proclaimed pursuant to section 2253 of this title or section 1862 or 1981 of this title.
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 subchapter.
Notwithstanding paragraph (1)(A), the President may designate as an eligible article or articles under subsection (a) carpets or rugs which are hand-loomed, hand-woven, hand-hooked, hand-tufted, or hand-knotted, and classifiable under subheading 5701.10.16, 5701.10.40, 5701.90.10, 5701.90.20, 5702.10.90, 5702.42.20, 5702.49.10, 5702.51.20, 5702.91.30, 5702.92.00, 5702.99.10, 5703.10.00, 5703.20.10, or 5703.30.00 of the Harmonized Tariff Schedule of the United States.
Notwithstanding paragraph (3), the President may designate as an eligible article or articles under subsection (a)(1)(B) only for countries designated as least-developed beneficiary developing countries under section 2462(a)(2) of this title cotton articles classifiable under subheading 5201.00.18, 5201.00.28, 5201.00.38, 5202.99.30, or 5203.00.30 of the Harmonized Tariff Schedule of the United States.
Notwithstanding subparagraph (A) or (E) of paragraph (1), the President may designate the following as eligible articles under subsection (a):
The President may withdraw, suspend, or limit the application of the duty-free treatment accorded under this subchapter with respect to any article, except that no rate of duty may be established with respect to any article pursuant to this subsection other than the rate which would apply but for this subchapter. In taking any action under this subsection, the President shall consider the factors set forth in sections 2461 and 2462(c) of this title.
Except as provided in clause (ii) and subject to subsection (d), whenever the President determines that a beneficiary developing country has exported (directly or indirectly) to the United States during any calendar year beginning after December 31, 1995-
the President shall, not later than November 1 of the next calendar year, terminate the duty-free treatment for that article from that beneficiary developing country.
For purposes of applying clause (i), the applicable amount is-
For purposes of this paragraph, the term "country" does not include an association of countries which is treated as one country under section 2467(2) of this title, but does include a country which is a member of any such association.
A country which is no longer treated as a beneficiary developing country with respect to an eligible article by reason of subparagraph (A) may, subject to the considerations set forth in sections 2461 and 2462 of this title, be redesignated a beneficiary developing country with respect to such article if imports of such article from such country did not exceed the limitations in subparagraph (A) during the preceding calendar year.
Subparagraph (A) shall not apply to any least-developed beneficiary developing country or any beneficiary sub-Saharan African country.
Subparagraph (A)(i)(II) shall not apply with respect to any eligible article if a like or directly competitive article was not produced in the United States in any of the preceding 3 calendar years.
The President may disregard subparagraph (A)(i)(II) with respect to any eligible article from any beneficiary developing country if the aggregate appraised value of the imports of such article into the United States during the preceding calendar year does not exceed the applicable amount for such preceding calendar year.
For purposes of applying clause (i), the applicable amount is-
The President may waive the application of subsection (c)(2) with respect to any eligible article of any beneficiary developing country if, before November 1 of the calendar year beginning after the calendar year for which a determination described in subsection (c)(2)(A) was made with respect to such eligible article, the President-
In making any determination under paragraph (1), the President shall give great weight to-
The President may waive the application of subsection (c)(2) if, before November 1 of the calendar year beginning after the calendar year for which a determination described in subsection (c)(2) was made with respect to a beneficiary developing country, the President determines that-
and the President publishes that determination in the Federal Register.
The President may not exercise the waiver authority under this subsection with respect to a quantity of an eligible article entered during any calendar year beginning after 1995, the aggregate appraised value of which equals or exceeds 30 percent of the aggregate appraised value of all articles that entered duty-free under this subchapter during the preceding calendar year.
There shall be counted against the limitations imposed under subparagraphs (A) and (B) for any calendar year only that value of any eligible article of any country that-
Any waiver granted under this subsection shall remain in effect until the President determines that such waiver is no longer warranted due to changed circumstances.
Before designating articles as eligible articles under subsection (a)(1), the President shall publish and furnish the International Trade Commission with lists of articles which may be considered for designation as eligible articles for purposes of this subchapter. The provisions of sections 2151, 2152, 2153, and 2154 of this title shall be complied with as though action under section 2461 of this title and this section were action under section 2133 of this title to carry out a trade agreement entered into under section 2133 of this title.
No action under this subchapter may affect any tariff duty imposed by the Legislature of Puerto Rico pursuant to section 1319 of this title on coffee imported into Puerto Rico.
1 See References in Text note below.
2 So in original. Two pars. (5) have been enacted.
19 U.S.C. § 2463
EDITORIAL NOTES
REFERENCES IN TEXTParagraph (5), referred to in subsec. (b)(1)(A), (E), probably means the subsec. (b)(5) relating to certain luggage and travel articles because section 204 of Pub. L. 114-27 added such par. (5) as well as those references. See 2015 Amendment notes below.The Harmonized Tariff Schedule of the United States, referred to in subsec. (b)(4), (5), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.
PRIOR PROVISIONSA prior section 2463, Pub. L. 93-618, title V, §503, Jan. 3, 1975, 88 Stat. 2069; Pub. L. 96-39, title XI, §1111(a)(3), July 26, 1979, 93 Stat. 315; Pub. L. 98-573, title V, §504, Oct. 30, 1984, 98 Stat. 3020; Pub. L. 99-47, §8(b)(2), June 11, 1985, 99 Stat. 85; Pub. L. 99-514, title XVIII, §1889(7), Oct. 22, 1986, 100 Stat. 2926; Pub. L. 100-418, title I, §1903, Aug. 23, 1988, 102 Stat. 1313; Pub. L. 101-382, title II, §226, Aug. 20, 1990, 104 Stat. 660; Pub. L. 103-465, title IV, §404(e)(3), Dec. 8, 1994, 108 Stat. 4961, related to eligible articles, prior to the general amendment of this subchapter by Pub. L. 104-188.
AMENDMENTS2018-Subsec. (c)(2)(A)(i). Pub. L. 115-141, §502(1)(A), substituted "November 1" for "July 1" in concluding provisions.Subsec. (c)(2)(E). Pub. L. 115-141, §502(1)(B), substituted "in any of the preceding 3 calendar years" for "on January 1, 1995".Subsec. (d)(1), (3), (4)(B)(ii). Pub. L. 115-141, §502(2), substituted "November 1" for "July 1".2015-Subsec. (b)(1)(A). Pub. L. 114-27, §204(1), substituted "paragraphs (4) and (5)" for "paragraph (4)".Subsec. (b)(1)(E). Pub. L. 114-27, §204(2), substituted "Except as provided in paragraph (5), footwear" for "Footwear".Subsec. (b)(5). Pub. L. 114-27, §204(3), which directed amendment of subsec. (b)(1) by adding par. (5), relating to certain luggage and travel articles, at the end, was executed by adding such par. (5) at the end of subsec. (b), to reflect the probable intent of Congress. Pub. L. 114-27, §202, added par. (5) relating to certain cotton articles.2006-Subsec. (d)(4)(B). Pub. L. 109-432 designated existing provisions as cl. (i), redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, and added cl. (ii).2004-Subsec. (b)(1)(A). Pub. L. 108-429, §1555(b), substituted "Except as provided in paragraph (4), textile" for "Textile".Subsec. (b)(4). Pub. L. 108-429, §1555(a), added par. (4).2000-Subsec. (c)(2)(D). Pub. L. 106-200 amended heading and text of subpar. (D) generally. Prior to amendment, text read as follows: "Subparagraph (A) shall not apply to any least-developed beneficiary developing country."1999-Subsec. (a)(2)(A)(ii). Pub. L. 106-36 added subcl. (II) and concluding provisions and struck out former subcl. (II) which read as follows: "the direct costs of processing operations performed in such beneficiary developing country or such member countries, is not less than 35 percent of the appraised value of such article at the time it is entered."
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108-429, title I, §1555(c), Dec. 3, 2004, 118 Stat. 2579, provided that: "The amendments made by subsections (a) and (b) [amending this section] shall apply to any article entered, or withdrawn from warehouse for consumption, on or after the date on which the President makes a designation with respect to the article under section 503(b)(4) of the Trade Act of 1974 [subsec. (b)(4) of this section], as added by subsection (a)."
EFFECTIVE DATESection applicable to articles entered on or after Oct. 1, 1996, with provisions relating to retroactive application, see section 1953 of Pub. L. 104-188 set out as a note under section 2461 of this title.
APPLICATION OF COMPETITIVE NEED LIMITATION AND WAIVER UNDER GENERALIZED SYSTEM OF PREFERENCES WITH RESPECT TO ARTICLES OF BENEFICIARY DEVELOPING COUNTRIES EXPORTED TO THE UNITED STATES DURING CALENDAR YEAR 2014 Pub. L. 114-27, title II, §203, June 29, 2015, 129 Stat. 372, provided that:"(a) IN GENERAL.-For purposes of applying and administering subsections (c)(2) and (d) of section 503 of the Trade Act of 1974 (19 U.S.C. 2463) with respect to an article described in subsection (b) of this section, subsections (c)(2) and (d) of section 503 of such Act shall be applied and administered by substituting 'October 1' for 'July 1' each place such date appears."(b) ARTICLE DESCRIBED.-An article described in this subsection is an article of a beneficiary developing country that is designated by the President as an eligible article under subsection (a) of section 503 of the Trade Act of 1974 (19 U.S.C. 2463) and with respect to which a determination described in subsection (c)(2)(A) of such section was made with respect to exports (directly or indirectly) to the United States of such eligible article during calendar year 2014 by the beneficiary developing country."
- commerce
- The term "commerce" includes services associated with international trade.1 See References in Text note below.
- duty
- The term "duty" includes the rate and form of any import duty, including but not limited to tariff-rate quotas.
- existing
- The term "existing" means (A) when used, without the specification of any date, with respect to any matter relating to entering into or carrying out a trade agreement or other action authorized by this chapter, existing on the day on which such trade agreement is entered into or such other action is taken; and (B) when used with respect to a rate of duty, the nonpreferential rate of duty (however established, and even though temporarily suspended by Act of Congress or otherwise) set forth in rate column numbered 1 of chapters 1 through 97 of the Harmonized Tariff Schedule of the United States on the date specified or (if no date is specified) on the day referred to in clause (A).