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U.S. Code as of:
01/19/04
Section 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(B) The term "entered" means entered, or withdrawn from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 SalvadorCayman 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)
(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.
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