§ 2462. — Designation of beneficiary developing countries.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2462]
TITLE 19--CUSTOMS DUTIES
CHAPTER 12--TRADE ACT OF 1974
SUBCHAPTER V--GENERALIZED SYSTEM OF PREFERENCES
Sec. 2462. Designation of beneficiary developing countries
(a) Authority to designate countries
(1) Beneficiary developing countries
The President is authorized to designate countries as
beneficiary developing countries for purposes of this subchapter.
(2) Least-developed beneficiary developing countries
The President is authorized to designate any beneficiary
developing country as a least-developed beneficiary developing
country for purposes of this subchapter, based on the considerations
in section 2461 of this title and subsection (c) of this section.
(b) Countries ineligible for designation
(1) Specific countries
The following countries may not be designated as beneficiary
developing countries for purposes of this subchapter:
(A) Australia.
(B) Canada.
(C) European Union member states.
(D) Iceland.
(E) Japan.
(F) Monaco.
(G) New Zealand.
(H) Norway.
(I) Switzerland.
(2) Other bases for ineligibility
The President shall not designate any country a beneficiary
developing country under this subchapter if any of the following
applies:
(A) Such country is a Communist country, unless--
(i) the products of such country receive
nondiscriminatory treatment,
(ii) such country is a WTO Member (as such term is
defined in section 3501(10) of this title) and a member of
the International Monetary Fund, and
(iii) such country is not dominated or controlled by
international communism.
(B) Such country is a party to an arrangement of countries
and participates in any action pursuant to such arrangement, the
effect of which is--
(i) to withhold supplies of vital commodity resources
from international trade or to raise the price of such
commodities to an unreasonable level, and
(ii) to cause serious disruption of the world economy.
(C) Such country affords preferential treatment to the
products of a developed country, other than the United States,
which has, or is likely to have, a significant adverse effect on
United States commerce.
(D)(i) Such country--
(I) has nationalized, expropriated, or otherwise seized
ownership or control of property, including patents,
trademarks, or copyrights, owned by a United States citizen
or by a corporation, partnership, or association which is 50
percent or more beneficially owned by United States
citizens,
(II) has taken steps to repudiate or nullify an existing
contract or agreement with a United States citizen or a
corporation, partnership, or association which is 50 percent
or more beneficially owned by United States citizens, the
effect of which is to nationalize, expropriate, or otherwise
seize ownership or control of property, including patents,
trademarks, or copyrights, so owned, or
(III) has imposed or enforced taxes or other exactions,
restrictive maintenance or operational conditions, or other
measures with respect to property, including patents,
trademarks, or copyrights, so owned, the effect of which is
to nationalize, expropriate, or otherwise seize ownership or
control of such property,
unless clause (ii) applies.
(ii) This clause applies if the President determines that--
(I) prompt, adequate, and effective compensation has
been or is being made to the citizen, corporation,
partnership, or association referred to in clause (i),
(II) good faith negotiations to provide prompt,
adequate, and effective compensation under the applicable
provisions of international law are in progress, or the
country described in clause (i) is otherwise taking steps to
discharge its obligations under international law with
respect to such citizen, corporation, partnership, or
association, or
(III) a dispute involving such citizen, corporation,
partnership, or association over compensation for such a
seizure has been submitted to arbitration under the
provisions of the Convention for the Settlement of
Investment Disputes, or in another mutually agreed upon
forum,
and the President promptly furnishes a copy of such
determination to the Senate and House of Representatives.
(E) Such country fails to act in good faith in recognizing
as binding or in enforcing arbitral awards in favor of United
States citizens or a corporation, partnership, or association
which is 50 percent or more beneficially owned by United States
citizens, which have been made by arbitrators appointed for each
case or by permanent arbitral bodies to which the parties
involved have submitted their dispute.
(F) Such country aids or abets, by granting sanctuary from
prosecution to, any individual or group which has committed an
act of international terrorism or the Secretary of State makes a
determination with respect to such country under section
2405(j)(1)(A) of title 50, Appendix or such country has not
taken steps to support the efforts of the United States to
combat terrorism.
(G) Such country has not taken or is not taking steps to
afford internationally recognized worker rights to workers in
the country (including any designated zone in that country).
(H) Such country has not implemented its commitments to
eliminate the worst forms of child labor.
Subparagraphs (D), (E), (F), (G), and (H) (to the extent described
in section 2467(6)(D) of this title) shall not prevent the
designation of any country as a beneficiary developing country under
this subchapter if the President determines that such designation
will be in the national economic interest of the United States and
reports such determination to the Congress with the reasons
therefor.
(c) Factors affecting country designation
In determining whether to designate any country as a beneficiary
developing country under this subchapter, the President shall take into
account--
(1) an expression by such country of its desire to be so
designated;
(2) the level of economic development of such country, including
its per capita gross national product, the living standards of its
inhabitants, and any other economic factors which the President
deems appropriate;
(3) whether or not other major developed countries are extending
generalized preferential tariff treatment to such country;
(4) the extent to which such country has assured the United
States that it will provide equitable and reasonable access to the
markets and basic commodity resources of such country and the extent
to which such country has assured the United States that it will
refrain from engaging in unreasonable export practices;
(5) the extent to which such country is providing adequate and
effective protection of intellectual property rights;
(6) the extent to which such country has taken action to--
(A) reduce trade distorting investment practices and
policies (including export performance requirements); and
(B) reduce or eliminate barriers to trade in services; and
(7) whether or not such country has taken or is taking steps to
afford to workers in that country (including any designated zone in
that country) internationally recognized worker rights.
(d) Withdrawal, suspension, or limitation of country designation
(1) In general
The President may withdraw, suspend, or limit the application of
the duty-free treatment accorded under this subchapter with respect
to any country. In taking any action under this subsection, the
President shall consider the factors set forth in section 2461 of
this title and subsection (c) of this section.
(2) Changed circumstances
The President shall, after complying with the requirements of
subsection (f)(2) of this section, withdraw or suspend the
designation of any country as a beneficiary developing country if,
after such designation, the President determines that as the result
of changed circumstances such country would be barred from
designation as a beneficiary developing country under subsection
(b)(2) of this section. Such country shall cease to be a beneficiary
developing country on the day on which the President issues an
Executive order or Presidential proclamation revoking the
designation of such country under this subchapter.
(3) Advice to Congress
The President shall, as necessary, advise the Congress on the
application of section 2461 of this title and subsection (c) of this
section, and the actions the President has taken to withdraw, to
suspend, or to limit the application of duty-free treatment with
respect to any country which has failed to adequately take the
actions described in subsection (c) of this section.
(e) Mandatory graduation of beneficiary developing countries
If the President determines that a beneficiary developing country
has become a ``high income'' country, as defined by the official
statistics of the International Bank for Reconstruction and Development,
then the President shall terminate the designation of such country as a
beneficiary developing country for purposes of this subchapter,
effective on January 1 of the second year following the year in which
such determination is made.
(f) Congressional notification
(1) Notification of designation
(A) In general
Before the President designates any country as a beneficiary
developing country under this subchapter, the President shall
notify the Congress of the President's intention to make such
designation, together with the considerations entering into such
decision.
(B) Designation as least-developed beneficiary developing
country
At least 60 days before the President designates any country
as a least-developed beneficiary developing country, the
President shall notify the Congress of the President's intention
to make such designation.
(2) Notification of termination
If the President has designated any country as a beneficiary
developing country under this subchapter, the President shall not
terminate such designation unless, at least 60 days before such
termination, the President has notified the Congress and has
notified such country of the President's intention to terminate such
designation, together with the considerations entering into such
decision.
(Pub. L. 93-618, title V, Sec. 502, as added Pub. L. 104-188, title I,
Sec. 1952(a), Aug. 20, 1996, 110 Stat. 1917; amended Pub. L. 104-295,
Sec. 35(a), Oct. 11, 1996, 110 Stat. 3538; Pub. L. 106-200, title IV,
Sec. 412(a), May 18, 2000, 114 Stat. 298; Pub. L. 107-210, div. D, title
XLI, Sec. 4102(a), Aug. 6, 2002, 116 Stat. 1040.)
Prior Provisions
A prior section 2462, Pub. L. 93-618, title V, Sec. 502(a)-(c), (e),
Jan. 3, 1975, 88 Stat. 2066-2069; Pub. L. 94-455, title XVIII,
Sec. 1802, Oct. 4, 1976, 90 Stat. 1763; Pub. L. 96-39, title XI,
Secs. 1106(g)(1), (2), 1111(a)(1), (2), July 26, 1979, 93 Stat. 312,
313, 315; Pub. L. 98-573, title V, Sec. 503, Oct. 30, 1984, 98 Stat.
3019; Pub. L. 99-47, Sec. 8(b)(2), June 11, 1985, 99 Stat. 85; Pub. L.
99-514, title XVIII, Sec. 1887(a)(5), Oct. 22, 1986, 100 Stat. 2923;
Pub. L. 99-570, title IX, Sec. 9002(a), Oct. 27, 1986, 100 Stat. 3207-
166; Pub. L. 101-179, title III, Sec. 301, Nov. 28, 1989, 103 Stat.
1311; Pub. L. 101-382, title I, Sec. 131, Aug. 20, 1990, 104 Stat. 643;
Pub. L. 103-66, title XIII, Sec. 13802(a), Aug. 10, 1993, 107 Stat. 667;
Pub. L. 103-149, Sec. 4(b)(9), Nov. 23, 1993, 107 Stat. 1506, related to
beneficiary developing countries, prior to the general amendment of this
subchapter by Pub. L. 104-188.
Amendments
2002--Subsec. (b)(2)(F). Pub. L. 107-210 inserted ``or such country
has not taken steps to support the efforts of the United States to
combat terrorism'' before period at end.
2000--Subsec. (b)(2). Pub. L. 106-200, Sec. 412(a)(2), in concluding
provisions substituted ``(G), and (H) (to the extent described in
section 2467(6)(D) of this title)'' for ``and (G)''.
Subsec. (b)(2)(H). Pub. L. 106-200, Sec. 412(a)(1), added subpar.
(H).
1996--Subsec. (b)(2)(F). Pub. L. 104-295, amended subpar. (F)
generally. Prior to amendment, subpar. (F) read as follows: ``Such
country aids or abets, by granting sanctuary from prosecution to, any
individual or group which has committed an act of international
terrorism.''
Effective Date of 1996 Amendment
Section 35(b) of Pub. L. 104-295 provided that: ``The amendment made
by subsection (a) [amending this section] shall take effect on October
1, 1996.''
Delegation of Functions
Proc. No. 6942, Oct. 17, 1996, 61 F.R. 54719, provided in par. (5)
that powers of the President granted in subsec. (f)(2) of this section
to notify a country of the President's intention to terminate that
country's status as a beneficiary developing country for purposes of the
Generalized System of Preferences were delegated to the United States
Trade Representative.
Section Referred to in Other Sections
This section is referred to in sections 2411, 2463, 2466a, 2467,
3331 of this title.
