§ 2481. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2481]
TITLE 19--CUSTOMS DUTIES
CHAPTER 12--TRADE ACT OF 1974
SUBCHAPTER VI--GENERAL PROVISIONS
Sec. 2481. Definitions
For purposes of this chapter--
(1) The term ``duty'' includes the rate and form of any import
duty, including but not limited to tariff-rate quotas.
(2) The term ``other import restriction'' includes a limitation,
prohibition, charge, or exaction other than duty, imposed on
importation or imposed for the regulation of importation. The term
does not include any orderly marketing agreement.
(3) The term ``ad valorem'' includes ad valorem equivalent.
Whenever any limitation on the amount by which or to which any rate
of duty may be decreased or increased pursuant to a trade agreement
is expressed in terms of an ad valorem percentage, the ad valorem
amount taken into account for purposes of such limitation shall be
determined by the President on the basis of the value of imports of
the articles concerned during the most recent representative period.
(4) The term ``ad valorem equivalent'' means the ad valorem
equivalent of a specific rate or, in the case of a combination of
rates including a specific rate, the sum of the ad valorem
equivalent of the specific rate and of the ad valorem rate. The ad
valorem equivalent shall be determined by the President on the basis
of the value of imports of the article concerned during the most
recent representative period. In determining the value of imports,
the President shall utilize, to the maximum extent practicable, the
standards of valuation contained in section 1401a or 1402 \1\ of
this title (as in effect before the effective date of the amendments
made by title II of the Trade Agreements Act of 1979) or in section
1401a of this title (as in effect on the effective date of such
title II amendments) whichever is applicable to the article
concerned during such representative period.
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(5) An imported article is ``directly competitive with'' a
domestic article at an earlier or later stage of processing, and a
domestic article is ``directly competitive with'' an imported
article at an earlier or later stage of processing, if the
importation of the article has an economic effect on producers of
the domestic article comparable to the effect of importation of
articles in the same stage of processing as the domestic article.
For purposes of this paragraph, the unprocessed article is at an
earlier stage of processing.
(6) The term ``modification'', as applied to any duty or other
import restriction, includes the elimination of any duty or other
import restriction.
(7) 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).
(8) A product of a country or area is an article which is the
growth, produce, or manufacture of such country or area.
(9) The term ``nondiscriminatory treatment'' means trade
treatment based on normal trade relations (known under international
law as most-favored-nation treatment).
(10) The term ``commerce'' includes services associated with
international trade.
(Pub. L. 93-618, title VI, Sec. 601, Jan. 3, 1975, 88 Stat. 2071; Pub.
L. 96-39, title II, Sec. 202(c)(1), title XI, Sec. 1106(h)(1), July 26,
1979, 93 Stat. 202, 313; Pub. L. 100-418, title I, Sec. 1214(j)(5), Aug.
23, 1988, 102 Stat. 1158; Pub. L. 105-206, title V, Sec. 5003(b)(2)(B),
July 22, 1998, 112 Stat. 789.)
References in Text
Section 1402 of this title, referred to in par. (4), was repealed by
Pub. L. 96-39, title II, Sec. 201(b), July 26, 1979, 93 Stat. 201.
The effective date of the amendments made by title II of the Trade
Agreements Act of 1979, referred to in par. (4), is July 1, 1980. See
section 204(a) of Pub. L. 96-39, set out as an Effective Date of 1979
Amendment note under section 1401a of this title.
The Harmonized Tariff Schedule of the United States, referred to in
par. (7), is not set out in the Code. See Publication of Harmonized
Tariff Schedule note set out under section 1202 of this title.
Amendments
1998--Par. (9). Pub. L. 105-206 substituted ``trade treatment based
on normal trade relations (known under international law as most-
favored-nation treatment)'' for ``most-favored-nation treatment''.
1988--Par. (7). Pub. L. 100-418 substituted ``chapters 1 through 97
of the Harmonized Tariff Schedule of the United States'' for ``schedules
1 through 7 of the Tariff Schedules of the United States''.
1979--Par. (2). Pub. L. 96-39, Sec. 1106(h)(1), substituted ``or
exaction'' for ``and exaction''.
Par. (4). Pub. L. 96-39, Sec. 202(c)(1), substituted ``section 1401a
or 1402 of this title (as in effect before the effective date of the
amendments made by title II of the Trade Agreements Act of 1979) or in
sections 1401a of this title (as in effect on the effective date of such
title II amendments) whichever is applicable'' for ``section 1401a or
1402 of this title applicable''.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-418 effective Jan. 1, 1989, and applicable
with respect to articles entered on or after such date, see section
1217(b)(1) of Pub. L. 100-418, set out as an Effective Date note under
section 3001 of this title.
Effective Date of 1979 Amendment
Amendment by section 202(c)(1) of Pub. L. 96-39 effective July 1,
1980, see section 204(a) of Pub. L. 96-39, set out as a note under
section 1401a of this title.
Amendment by section 1106(h)(1) of Pub. L. 96-39 effective July 26,
1979, see section 1114 of Pub. L. 96-39, set out as an Effective Date
note under section 2581 of this title.
Savings Provision
Pub. L. 105-206, title V, Sec. 5003(c), July 22, 1998, 112 Stat.
790, provided that: ``Nothing in this section [amending this section,
sections 1881, 2432, 3332 and 3555 of this title, and sections 5401 and
5713 of Title 22, Foreign Relations and Intercourse, enacting provisions
set out as notes under this section, and amending provisions set out as
a note under section 2112 of this title] shall affect the meaning of any
provision of law, Executive order, Presidential proclamation, rule,
regulation, delegation of authority, other document, or treaty or other
international agreement of the United States relating to the principle
of `most-favored-nation' (or `most favored nation') treatment. Any
Executive order, Presidential proclamation, rule, regulation, delegation
of authority, other document, or treaty or other international agreement
of the United States that has been issued, made, granted, or allowed to
become effective and that is in effect on the effective date of this Act
[July 22, 1998], or was to become effective on or after the effective
date of this Act, shall continue in effect according to its terms until
modified, terminated, superseded, set aside, or revoked in accordance
with law.''
Clarification of Designation of Normal Trade Relations
Pub. L. 105-206, title V, Sec. 5003(a), July 22, 1998, 112 Stat.
789, provided that:
``(1) Findings.--The Congress makes the following findings:
``(A) Since the 18th century, the principle of nondiscrimination
among countries with which the United States has trade relations,
commonly referred to as `most-favored-nation' treatment, has been a
cornerstone of United States trade policy.
``(B) Although the principle remains firmly in place as a
fundamental concept in United States trade relations, the term
`most-favored-nation' is a misnomer which has led to public
misunderstanding.
``(C) It is neither the purpose nor the effect of the most-
favored-nation principle to treat any country as `most favored'. To
the contrary, the principle reflects the intention to confer on a
country the same trade benefits that are conferred on any other
country, that is, the intention not to discriminate among trading
partners.
``(D) The term `normal trade relations' is a more accurate
description of the principle of nondiscrimination as it applies to
the tariffs applicable generally to imports from United States
trading partners, that is, the general rates of duty set forth in
column 1 of the Harmonized Tariff Schedule of the United States.
``(2) Policy.--It is the sense of the Congress that--
``(A) the language used in United States laws, treaties,
agreements, executive orders, directives, and regulations should
more clearly and accurately reflect the underlying principles of
United States trade policy; and
``(B) accordingly, the term `normal trade relations' should,
where appropriate, be substituted for the term `most-favored-
nation'.''
