§ 2512. — Authority to encourage reciprocal competitive procurement practices.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2512]
TITLE 19--CUSTOMS DUTIES
CHAPTER 13--TRADE AGREEMENTS ACT OF 1979
SUBCHAPTER I--GOVERNMENT PROCUREMENT
Sec. 2512. Authority to encourage reciprocal competitive
procurement practices
(a) Authority to bar procurement from non-designated countries
(1) In general
Subject to paragraph (2), the President, in order to encourage
additional countries to become parties to the Agreement and to
provide appropriate reciprocal competitive government procurement
opportunities to United States products and suppliers of such
products--
(A) shall, with respect to procurement covered by the
Agreement, prohibit the procurement, after the date on which any
waiver under section 2511(a) of this title first takes effect,
of products--
(i) which are products of a foreign country or
instrumentality which is not designated pursuant to section
2511(b) of this title, and
(ii) which would otherwise be eligible products; and
(B) may, with respect to procurement covered by the
Agreement, take such other actions within the President's
authority as the President deems necessary.
(2) Exception
Paragraph (1) shall not apply in the case of procurements for
which--
(A) there are no offers of products or services of the
United States or of eligible products; or
(B) the offers of products or services of the United States
or of eligible products are insufficient to fulfill the
requirements of the United States Government.
(b) Deferrals and waivers
Notwithstanding subsection (a) of this section, but in furtherance
of the objective of encouraging countries to become parties to the
Agreement and provide appropriate reciprocal competitive government
procurement opportunities to United States products and suppliers of
such products, the President may--
(1) waive the prohibition required by subsection (a)(1) of this
section on procurement of products of a foreign country or
instrumentality which has not yet become a party to the Agreement
but--
(A) has agreed to apply transparent and competitive
procedures to its government procurement equivalent to those in
the Agreement, and
(B) maintains and enforces effective prohibitions on bribery
and other corrupt practices in connection with its government
procurement;
(2) authorize agency heads to waive, subject to interagency
review and general policy guidance by the organization established
under section 1872(a) of this title, such prohibition on a case-by-
case basis when in the national interest; and
(3) authorize the Secretary of Defense to waive, subject to
interagency review and policy guidance by the organization
established under section 1872(a) of this title, such prohibition
for products of any country or instrumentality which enters into a
reciprocal procurement agreement with the Department of Defense.
Before exercising the waiver authority under paragraph (1), the
President shall consult with the appropriate private sector advisory
committees established under section 2155 of this title and with the
appropriate committees of the Congress.
(c) Report on impact of restrictions
(1) Impact on the economy
On or before July 1, 1981, the President shall report to the
Committee on Ways and Means and the Committee on Government
Operations of the House of Representatives and to the Committee on
Finance and the Committee on Governmental Affairs of the Senate on
the effects on the United States economy (including effects on
employment, production, competition, costs and prices, technological
development, export trade, balance of payments, inflation, and the
Federal budget) of the refusal of developed countries to allow the
Agreement to cover the entities of the governments of such countries
which are the principal purchasers of goods and equipment in
appropriate product sectors.
(2) Recommendations for attaining reciprocity
The report required by paragraph (1) shall include an evaluation
of alternative means to obtain equity and reciprocity in such
product sectors, including (A) prohibiting the procurement of
products of such countries by United States entities not covered by
the Agreement, and (B) modifying the application of title III of the
Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly referred to
as the Buy American Act. The report shall include an analysis of the
effect of such alternative means on the United States economy
(including effects on employment, production, competition, costs and
prices, technological development, export trade, balance of
payments, inflation, and the Federal budget), and on successful
negotiations on the expansion of the coverage of the Agreement
pursuant to section 2514(a) and (b) of this title, other trade
negotiating objectives, the relationship of the Federal Government
to State and local governments, and such other factors as the
President deems appropriate.
(3) Consultation
In the preparation of the report required by paragraph (1) and
the evaluation and analysis required by paragraph (2), the President
shall consult with representatives of the public, industry, and
labor, and make available pertinent, nonconfidential information
obtained in the course of such preparation to the advisory
committees established pursuant to section 2155 of this title.
(d) Proposed action
(1) Presidential report
On or before October 1, 1981, the President shall prepare and
transmit to the congressional committees referred to in subsection
(c)(1) of this section a report which describes the actions he deems
appropriate to establish reciprocity with major industrialized
countries in the area of Government procurement.
(2) Procedure
(A) Presidential determination
If the President determines that any changes in existing law
or new statutory authority are required to authorize or to
implement any action proposed in the report submitted under
paragraph (1), he shall, on or after January 1, 1982, submit to
the Congress a bill to accomplish such changes or provide such
new statutory authority. Prior to submitting such a bill, the
President shall consult with the appropriate committees of the
Congress having jurisdiction over legislation involving subject
matters which would be affected by such action, and shall submit
to such committees a proposed draft of such bill.
(B) Congressional consideration
The appropriate committee of each House of the Congress
shall give a bill submitted pursuant to subparagraph (A) prompt
consideration and shall make its best efforts to take final
committee action on such bill in an expeditious manner.
(Pub. L. 96-39, title III, Sec. 302, July 26, 1979, 93 Stat. 236; Pub.
L. 103-182, title III, Sec. 381(b), Dec. 8, 1993, 107 Stat. 2129; Pub.
L. 103-465, title III, Sec. 343(a), (b), Dec. 8, 1994, 108 Stat. 4954,
4955.)
References in Text
Title III of the Act of March 3, 1933, referred to in subsec.
(c)(2), is act Mar. 3, 1933, ch. 212, title III, 47 Stat. 1520, as
amended, known as the Buy American Act, which is classified generally to
sections 10a, 10b, and 10c of Title 41, Public Contracts. For complete
classification of this Act to the Code, see Short Title note set out
under section 10a of Title 41 and Tables.
Amendments
1994--Subsec. (a). Pub. L. 103-465, Sec. 343(a), amended heading and
text of subsec. (a) generally. Prior to amendment, text read as follows:
``With respect to procurement covered by the Agreement, the President,
in order to encourage additional countries to become parties to the
Agreement and to provide appropriate reciprocal competitive government
procurement opportunities to United States products and suppliers of
such products--
``(1) shall prohibit the procurement, after the date on which
any waiver under section 2511(a) of this title first takes effect,
of products (A) which are products of a foreign country or
instrumentality which is not designated pursuant to section 2511(b)
of this title, and (B) which are products covered under the
Agreement for procurement by the United States; and
``(2) may take such other actions within his authority as he
deems necessary.''
Subsec. (b). Pub. L. 103-465, Sec. 343(b)(2), inserted concluding
provisions.
Subsec. (b)(1). Pub. L. 103-465, Sec. 343(b)(1), amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``delay, for a
period not to exceed two years, the prohibition of procurement, required
pursuant to subsection (a)(1) of this section, of products of a foreign
country or instrumentality which is not designated pursuant to section
2511(b) of this title, except that no such delay shall be granted with
respect to the procurement of products of any major industrial
country;''.
1993--Subsec. (a)(1). Pub. L. 103-182 substituted ``are products
covered under the Agreement for procurement by the United States'' for
``would otherwise be eligible products''.
Change of Name
Committee on Government Operations of House of Representatives
treated as referring to Committee on Government Reform and Oversight of
House of Representatives by section 1(a) of Pub. L. 104-14, set out as a
note under section 21 of Title 2, The Congress. Committee on Government
Reform and Oversight of House of Representatives changed to Committee on
Government Reform of House of Representatives by House Resolution No. 5,
One Hundred Sixth Congress, Jan. 6, 1999.
Effective Date of 1994 Amendment
Section 344 of title III of Pub. L. 103-465 provided that:
``(a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle [subtitle E (Secs. 341-344 of title III
of Pub. L. 103-465, amending this section and sections 2513 to 2515,
2517, and 2518 of this title, repealing section 2516 of this title, and
amending provisions set out as a note under section 903 of Title 7,
Agriculture] take effect on the date on which the Agreement on
Government Procurement referred to in section 101(d)(17) [19 U.S.C.
3511(d)(17)] enters into force with respect to the United States [Jan.
1, 1995].
``(b) Section 342(g).--The amendments made by section 342(g)
[amending provisions set out as a note under section 903 of Title 7]
take effect on the date on which the WTO Agreement enters into force
with respect to the United States [Jan. 1, 1995].''
Effective Date of 1993 Amendment
Amendment by Pub. L. 103-182 effective on the date the North
American Free Trade Agreement enters into force with respect to the
United States [Jan. 1, 1994], see section 381(e) of Pub. L. 103-182, set
out as a note under section 2511 of this title.
Delegation of Functions
Functions of President under this section delegated to United States
Trade Representative, with authority delegated to Secretary of Defense
to waive the prohibitions contained in subsec. (b)(3) of this section,
see section 1-201 of Ex. Ord. No. 12260, Dec. 31, 1980, 46 F.R. 1653,
set out as a note under section 2511 of this title.
Section Referred to in Other Sections
This section is referred to in sections 2514, 2515 of this title.
