§ 2702. — Beneficiary country.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2702]
TITLE 19--CUSTOMS DUTIES
CHAPTER 15--CARIBBEAN BASIN ECONOMIC RECOVERY
Sec. 2702. Beneficiary country
(a) Definitions; termination of designation
(1) For purposes of this chapter--
(A) The term ``beneficiary country'' means any country listed in
subsection (b) of this section with respect to which there is in
effect a proclamation by the President designating such country as a
beneficiary country for purposes of this chapter. Before the
President designates any country as a beneficiary country for
purposes of this chapter, he shall notify the House of
Representatives and the Senate of his intention to make such
designation, together with the considerations entering into such
decision.
(B) The term ``entered'' means entered, or withdrawn from
warehouse for consumption, in the customs territory of the United
States.
(C) The term ``HTS'' means Harmonized Tariff Schedule of the
United States.
(D) The term ``NAFTA'' means the North American Free Trade
Agreement entered into between the United States, Mexico, and Canada
on December 17, 1992.
(E) The terms ``WTO'' and ``WTO member'' have the meanings given
those terms in section 3501 of this title.
(2) If the President has designated any country as a beneficiary
country for purposes of this chapter, he shall not terminate such
designation (either by issuing a proclamation for that purpose or by
issuing a proclamation which has the effect of terminating such
designation) unless, at least sixty days before such termination, he has
notified the House of Representatives and the Senate and has notified
such country of his intention to terminate such designation, together
with the considerations entering into such decision.
(b) Countries eligible for designation as beneficiary countries;
conditions
In designating countries as ``beneficiary countries'' under this
chapter the President shall consider only the following countries and
territories or successor political entities:
Anguilla Jamaica
Antigua
and
Barbuda Nicaragua
Bahamas,
The Panama
Barbados Saint Lucia
Belize Saint Vincent and
the
Costa
Rica Grenadines
Dominica Suriname
Dominican
Republic Trinidad and Tobago
El
Salvador Cayman Islands
Grenada Montserrat
Guatemala Netherlands Antilles
Guyana Saint Christopher-
Nevis
Haiti Turks and Caicos
Islands
Honduras Virgin Islands,
British
In addition, the President shall not designate any country a beneficiary
country under this chapter--
(1) if such country is a Communist country;
(2) if such country--
(A) has nationalized, expropriated or otherwise seized
ownership or control of property owned by a United States
citizen or by a corporation, partnership, or association which
is 50 per centum or more beneficially owned by United States
citizens,
(B) has taken steps to repudiate or nullify--
(i) any existing contract or agreement with, or
(ii) any patent, trademark, or other intellectual
property of,
a United States citizen or a corporation, partnership, or
association which is 50 per centum or more beneficially owned by
United States citizens, the effect of which is to nationalize,
expropriate, or otherwise seize ownership or control of property
so owned, or
(C) has imposed or enforced taxes or other exactions,
restrictive maintenance or operational conditions, or other
measures with respect to property so owned, the effect of which
is to nationalize, expropriate, or otherwise seize ownership or
control of such property, unless the President determines that--
(i) prompt, adequate, and effective compensation has
been or is being made to such citizen, corporation,
partnership, or association,
(ii) good-faith negotiations to provide prompt,
adequate, and effective compensation under the applicable
provisions of international law are in progress, or such
country 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
promptly furnishes a copy of such determination to the Senate and
House of Representatives;
(3) if 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
per centum 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;
(4) if 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, unless the President has received assurances
satisfactory to him that such preferential treatment will be
eliminated or that action will be taken to assure that there will be
no such significant adverse effect, and he reports those assurances
to the Congress;
(5) if a government-owned entity in such country engages in the
broadcast of copyrighted material, including films or television
material, belonging to United States copyright owners without their
express consent;
(6) unless such country is a signatory to a treaty, convention,
protocol, or other agreement regarding the extradition of United
States citizens; and
(7) if such country has not or is not taking steps to afford
internationally recognized worker rights (as defined in section
2467(4) of this title) to workers in the country (including any
designated zone in that country).
Paragraphs (1), (2), (3), (5), and (7) shall not prevent the designation
of any country as a beneficiary country under this Act if the President
determines that such designation will be in the national economic or
security interest of the United States and reports such determination to
the Congress with his reasons therefor.
(c) Factors determining designation
In determining whether to designate any country a beneficiary
country under this chapter, the President shall take into account--
(1) an expression by such country of its desire to be so
designated;
(2) the economic conditions in such country, the living
standards of its inhabitants, and any other economic factors which
he deems appropriate;
(3) the extent to which such country has assured the United
States it will provide equitable and reasonable access to the
markets and basic commodity resources of such country;
(4) the degree to which such country follows the accepted rules
of international trade provided for under the WTO Agreement and the
multilateral trade agreements (as such terms are defined in
paragraphs (9) and (4), respectively, of section 3501 of this
title);
(5) the degree to which such country uses export subsidies or
imposes export performance requirements or local content
requirements which distort international trade;
(6) the degree to which the trade policies of such country as
they relate to other beneficiary countries are contributing to the
revitalization of the region;
(7) the degree to which such country is undertaking self-help
measures to promote its own economic development;
(8) 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.\1\
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\1\ So in original. The period probably should be a semicolon.
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(9) the extent to which such country provides under its law
adequate and effective means for foreign nationals to secure,
exercise, and enforce exclusive rights in intellectual property,
including patent, trademark, and copyright rights;
(10) the extent to which such country prohibits its nationals
from engaging in the broadcast of copyrighted material, including
films or television material, belonging to United States copyright
owners without their express consent; and
(11) the extent to which such country is prepared to cooperate
with the United States in the administration of the provisions of
this chapter.
(d) Omitted
(e) Withdrawal or suspension of duty-free treatment to specific articles
(1)(A) The President may, after the requirements of subsection
(a)(2) of this section and paragraph (2) have been met--
(i) withdraw or suspend the designation of any country as a
beneficiary country, or
(ii) withdraw, suspend, or limit the application of duty-free
treatment under this chapter to any article of any country,
if, after such designation, the President determines that as a result of
changed circumstances such country would be barred from designation as a
beneficiary country under subsection (b) of this section.
(B) The President may, after the requirements of subsection (a)(2)
of this section and paragraph (2) have been met--
(i) withdraw or suspend the designation of any country as a
CBTPA beneficiary country; or
(ii) withdraw, suspend, or limit the application of preferential
treatment under section 2703(b)(2) and (3) of this title to any
article of any country,
if, after such designation, the President determines that, as a result
of changed circumstances, the performance of such country is not
satisfactory under the criteria set forth in section 2703(b)(5)(B) of
this title.
(2)(A) The President shall publish in the Federal Register notice of
the action the President proposes to take under paragraph (1) at least
30 days prior to taking such action.
(B) The United States Trade Representative shall, within the 30-day
period beginning on the date on which the President publishes under
subparagraph (A) notice of proposed action--
(i) accept written comments from the public regarding such
proposed action,
(ii) hold a public hearing on such proposed action, and
(iii) publish in the Federal Register--
(I) notice of the time and place of such hearing prior to
the hearing, and
(II) the time and place at which such written comments will
be accepted.
(3) If preferential treatment under section 2703(b)(2) and (3) of
this title is withdrawn, suspended, or limited with respect to a CBTPA
beneficiary country, such country shall not be deemed to be a ``party''
for the purposes of applying section 2703(b)(5)(C) of this title to
imports of articles for which preferential treatment has been withdrawn,
suspended, or limited with respect to such country.
(f) Reporting requirements
(1) In general
Not later than December 31, 2001, and every 2 years thereafter
during the period this chapter is in effect, the United States Trade
Representative shall submit to Congress a report regarding the
operation of this chapter, including--
(A) with respect to subsections (b) and (c) of this section,
the results of a general review of beneficiary countries based
on the considerations described in such subsections; and
(B) the performance of each beneficiary country or CBTPA
beneficiary country, as the case may be, under the criteria set
forth in section 2703(b)(5)(B) of this title.
(2) Public comment
Before submitting the report described in paragraph (1), the
United States Trade Representative shall publish a notice in the
Federal Register requesting public comments on whether beneficiary
countries are meeting the criteria listed in section 2703(b)(5)(B)
of this title.
(Pub. L. 98-67, title II, Sec. 212, Aug. 5, 1983, 97 Stat. 384; Pub. L.
99-570, title IX, Sec. 9002(b), Oct. 27, 1986, 100 Stat. 3207-166; Pub.
L. 100-418, title I, Secs. 1214(q)(1), 1909(c), Aug. 23, 1988, 102 Stat.
1159, 1318; Pub. L. 101-382, title II, Secs. 213, 214, Aug. 20, 1990,
104 Stat. 656; Pub. L. 103-465, title VI, Sec. 621(a)(2), Dec. 8, 1994,
108 Stat. 4992; Pub. L. 104-188, title I, Sec. 1954(a)(3), Aug. 20,
1996, 110 Stat. 1927; Pub. L. 106-200, title II, Sec. 211(b), (c)(1),
(e)(2), May 18, 2000, 114 Stat. 286, 287.)
References in Text
This chapter, referred to in subsecs. (a) to (c) and (f), was in the
original ``this title'', meaning title II of Pub. L. 98-67, Aug. 5,
1983, 97 Stat. 384, which is classified principally to this chapter.
The Harmonized Tariff Schedule of the United States, referred to in
subsec. (a)(1)(C), is not set out in the Code. See Publication of
Harmonized Tariff Schedule note set out under section 1202 of this
title.
This Act, referred to in provisions following subsec. (b)(6),
probably should be ``this title'' meaning title II of Pub. L. 98-67,
Aug. 5, 1983, 97 Stat. 384, which is classified principally to this
chapter. For complete classification of title II to the Code, see Short
Title note set out under section 2701 of this title and Tables.
This chapter, referred to in subsec. (e)(1)(B), was in the original
``this subtitle'', meaning subtitle A (Secs. 211-218) of title II of
Pub. L. 98-67 which enacted this chapter, amended section 1202 of this
title, repealed section 2582 of this title, and enacted provisions set
out as notes under sections 1202, 1319, 2251, and 2703 of this title and
section 1311 of Title 33, Navigation and Navigable Waters. For complete
classification of subtitle A to the Code, see Tables.
Codification
Subsec. (d) of this section amended general headnote 3(a) of the
Tariff Schedules of the United States. The Tariff Schedules were
replaced by the Harmonized Tariff Schedule of the United States. See
References in Text note above.
Amendments
2000--Subsec. (a)(1)(D), (E). Pub. L. 106-200, Sec. 211(e)(2), added
subpars. (D) and (E).
Subsec. (e)(1). Pub. L. 106-200, Sec. 211(b)(1), designated
existing provisions as subpar. (A), redesignated former subpars. (A) and
(B) as cls. (i) and (ii), respectively, of subpar. (A), and added
subpar. (B).
Subsec. (e)(3). Pub. L. 106-200, Sec. 211(b)(2), added par. (3).
Subsec. (f). Pub. L. 106-200, Sec. 211(c)(1), inserted heading and
amended text generally. Prior to amendment, text read as follows: ``On
or before October 1, 1993, and the close of each 3-year period
thereafter, the President shall submit to the Congress a complete report
regarding the operation of this chapter, including the results of a
general review of beneficiary countries based on the considerations
described in subsections (b) and (c) of this section.''
1996--Subsec. (b)(7). Pub. L. 104-188 substituted ``2467(4)'' for
``2462(a)(4)''.
1994--Subsec. (c)(4). Pub. L. 103-465 substituted ``WTO Agreement
and the multilateral trade agreements (as such terms are defined in
paragraphs (9) and (4), respectively, of section 3501 of this title)''
for ``General Agreement on Tariffs and Trade, as well as applicable
trade agreements approved under section 2503(a) of this title''.
1990--Subsec. (b). Pub. L. 101-382, Sec. 213(1)-(4), added par. (7)
and in concluding provisions substituted ``(5), and (7)'' for ``and
(5)''.
Subsec. (c)(8). Pub. L. 101-382, Sec. 213(5), amended par. (8)
generally. Prior to amendment, par. (8) read as follows: ``the degree to
which workers in such country are afforded reasonable workplace
conditions and enjoy the right to organize and bargain collectively;''.
Subsec. (f). Pub. L. 101-382, Sec. 214, added subsec. (f).
1988--Subsec. (a)(1)(C). Pub. L. 100-418, Sec. 1214(q)(1),
substituted ``HTS'' and ``Harmonized Tariff Schedule of the United
States'' for ``TSUS'' and ``Tariff Schedules of the United States'',
respectively.
Subsec. (e). Pub. L. 100-418, Sec. 1909(c), amended subsec. (e)
generally. Prior to amendment, subsec. (e) read as follows: ``The
President shall, after complying with the requirements of subsection
(a)(2) of this section, withdraw or suspend the designation of any
country as a beneficiary country if, after such designation, he
determines that as the result of changed circumstances such country
would be barred from designation as a beneficiary country under
subsection (b) of this section.''
1986--Subsec. (b)(6), (7). Pub. L. 99-570 redesignated par. (7) as
(6) and struck out former par. (6) which provided that the President
shall not designate a country as a beneficiary country under this
chapter if the country does not take adequate steps to cooperate with
the United States to prevent narcotic drugs and other controlled
substances produced, processed, or transported in the country from
entering the United States unlawfully.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-188 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 an Effective Date note
under section 2461 of this title.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-465 effective on the date on which the WTO
Agreement enters into force with respect to the United States [Jan. 1,
1995], see section 621(b) of Pub. L. 103-465, set out as a note under
section 1677k of this title.
Effective Date of 1988 Amendment
Amendment by section 1214(q)(1) of 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.
Caribbean Basin Initiative
Section 1909(a), (b) of Pub. L. 100-418 provided that:
``(a) Findings.--The Congress finds that--
``(1) Caribbean and Central American countries historically have
had close economic, political, and cultural ties to the United
States;
``(2) promoting economic and political stability in the
Caribbean and Central America is in the national security interests
of the United States;
``(3) the economic and political stability of the nations of the
Caribbean and Central America can be strengthened significantly by
the attraction of foreign and domestic investment specifically
devoted to employment generation; and
``(4) the diversification of the economies and expansion of
exports, particularly those of a non-traditional nature, of the
nations of the Caribbean and Central America is linked directly to
fair access to the markets of the United States.
``(b) Intent of the Congress.--The Congress hereby expresses its
intention to ensure that--
``(1) the trade elements of the Caribbean Basin Initiative be
strengthened in a manner consistent with the promotion of economic
and political stability in the Caribbean and Central America;
``(2) to the extent that Congress imposes changes that are
intended to improve the competitive environment for United States
industry and workers, such changes do not unduly affect the
unilateral duty-free trade system available to the beneficiary
countries designated under the Caribbean Basin Economic Recovery Act
[19 U.S.C. 2701 et seq.]; and
``(3) generic changes in the trade laws of the United States do
not discriminate against imports from designated beneficiary
countries in relation to imports from other United States trading
partners.''
Section Referred to in Other Sections
This section is referred to in sections 1202, 2191, 2194, 2411,
2703, 2707 of this title; title 7 section 1737; title 26 sections 274,
936.
