Laws: Cases and Codes : U.S. Code : Title 19 : Section 3203


   
U.S. Code as of: 01/19/04
Section 3203. Eligible articles

    (a) In general
      (1) Unless otherwise excluded from eligibility (or otherwise
    provided for) by this chapter, the duty-free treatment (or
    preferential treatment) provided under this chapter shall apply to
    any article which is the growth, product, or manufacture of a
    beneficiary country if - 
        (A) that article is imported directly from a beneficiary
      country into the customs territory of the United States; and
        (B) the sum of - 
          (i) the cost or value of the materials produced in a
        beneficiary country or 2 or more beneficiary countries under
        this chapter, or a beneficiary country under the Caribbean
        Basin Economic Recovery Act [19 U.S.C. 2701 et seq.] or 2 or
        more such countries, plus
          (ii) the direct costs of processing operations performed in a
        beneficiary country or countries (under this chapter or the
        Caribbean Basin Economic Recovery Act),

      is not less than 35 percent of the appraised value of such
      article at the time it is entered.

    For purposes of determining the percentage referred to in
    subparagraph (B), the term "beneficiary country" includes the
    Commonwealth of Puerto Rico and the United States Virgin Islands.
    If the cost or value of materials produced in the customs territory
    of the United States (other than the Commonwealth of Puerto Rico)
    is included with respect to an article to which this paragraph
    applies, an amount not to exceed 15 percent of the appraised value
    of the article at the time it is entered that is attributed to such
    United States cost or value may be applied toward determining the
    percentage referred to in subparagraph (B).
      (2) The Secretary of the Treasury shall prescribe such
    regulations as may be necessary to carry out paragraph (1)
    including, but not limited to, regulations providing that, in order
    to be eligible for duty-free treatment under this chapter, an
    article must be wholly the growth, product, or manufacture of a
    beneficiary country, or must be a new or different article of
    commerce which has been grown, produced, or manufactured in the
    beneficiary country; but no article or material of a beneficiary
    country shall be eligible for such treatment by virtue of having
    merely undergone - 
        (A) simple combining or packaging operations, or
        (B) mere dilution with water or mere dilution with another
      substance that does not materially alter the characteristics of
      the article.

      (3) As used in this subsection, the phrase "direct costs of
    processing operations" includes, but is not limited to - 
        (A) all actual labor costs involved in the growth, production,
      manufacture, or assembly of the specific merchandise, including
      fringe benefits, on-the-job training and the cost of engineering,
      supervisory, quality control, and similar personnel; and
        (B) dies, molds, tooling, and depreciation on machinery and
      equipment which are allocable to the specific merchandise.

    Such phrase does not include costs which are not directly
    attributable to the merchandise concerned or are not costs of
    manufacturing the product, such as (i) profit, and (ii) general
    expense of doing business which are either not allocable to the
    specific merchandise or are not related to the growth, production,
    manufacture, or assembly of the merchandise, such as administrative
    salaries, casualty and liability insurance, advertising, interest,
    and salesmen's salaries, commissions or expenses.
      (4) If the President, pursuant to section 223 of the Caribbean
    Basin Economic Recovery Expansion Act of 1990, considers that the
    implementation of revised rules of origin for products of
    beneficiary countries designated under the Caribbean Basin Economic
    Recovery Act (19 U.S.C. 2701 et seq.) would be appropriate, the
    President may include similarly revised rules of origin for
    products of beneficiary countries designated under this chapter in
    any suggested legislation transmitted to the Congress that contains
    such rules of origin for products of beneficiary countries under
    the Caribbean Basin Economic Recovery Act.
    (b) Exceptions and special rules
      (1) Certain articles that are not import-sensitive
        The President may proclaim duty-free treatment under this
      chapter for any article described in subparagraph (A), (B), (C),
      or (D) that is the growth, product, or manufacture of an ATPDEA
      beneficiary country, that is imported directly into the customs
      territory of the United States from an ATPDEA beneficiary
      country, and that meets the requirements of this section, if the
      President determines that such article is not import-sensitive in
      the context of imports from ATPDEA beneficiary countries:
          (A) Footwear not designated at the time of the effective date
        of this chapter as eligible for purposes of the generalized
        system of preferences under title V of the Trade Act of 1974
        [19 U.S.C. 2461 et seq.].
          (B) Petroleum, or any product derived from petroleum,
        provided for in headings 2709 and 2710 of the HTS.
          (C) Watches and watch parts (including cases, bracelets and
        straps), of whatever type including, but not limited to,
        mechanical, quartz digital or quartz analog, if such watches or
        watch parts contain any material which is the product of any
        country with respect to which HTS column 2 rates of duty apply.
          (D) Handbags, luggage, flat goods, work gloves, and leather
        wearing apparel that were not designated on August 5, 1983, as
        eligible articles for purposes of the generalized system of
        preferences under title V of the Trade Act of 1974.
      (2) Exclusions
        Subject to paragraph (3), duty-free treatment under this
      chapter may not be extended to - 
          (A) textiles and apparel articles which were not eligible
        articles for purposes of this chapter on January 1, 1994, as
        this chapter was in effect on that date;
          (B) rum and tafia classified in subheading 2208.40 of the
        HTS;
          (C) sugars, syrups, and sugar-containing products subject to
        over-quota duty rates under applicable tariff-rate quotas; or
          (D) tuna prepared or preserved in any manner in airtight
        containers, except as provided in paragraph (4).
      (3) Apparel articles and certain textile articles
        (A) In general
          Apparel articles that are imported directly into the customs
        territory of the United States from an ATPDEA beneficiary
        country shall enter the United States free of duty and free of
        any quantitative restrictions, limitations, or consultation
        levels, but only if such articles are described in subparagraph
        (B).
        (B) Covered articles
          The apparel articles referred to in subparagraph (A) are the
        following:
          (i) Apparel articles assembled from products of the United
            States or ATPDEA beneficiary countries or products not
            available in commercial quantities
            Apparel articles sewn or otherwise assembled in 1 or more
          ATPDEA beneficiary countries, or the United States, or both,
          exclusively from any one or any combination of the following:
              (I) Fabrics or fabric components wholly formed, or
            components knit-to-shape, in the United States, from yarns
            wholly formed in the United States or 1 or more ATPDEA
            beneficiary countries (including fabrics not formed from
            yarns, if such fabrics are classifiable under heading 5602
            or 5603 of the HTS and are formed in the United States).
            Apparel articles shall qualify under this subclause only if
            all dyeing, printing, and finishing of the fabrics from
            which the articles are assembled, if the fabrics are knit
            fabrics, is carried out in the United States. Apparel
            articles shall qualify under this subclause only if all
            dyeing, printing, and finishing of the fabrics from which
            the articles are assembled, if the fabrics are woven
            fabrics, is carried out in the United States.
              (II) Fabrics or fabric components formed or components
            knit-to-shape, in 1 or more ATPDEA beneficiary countries,
            from yarns wholly formed in 1 or more ATPDEA beneficiary
            countries, if such fabrics (including fabrics not formed
            from yarns, if such fabrics are classifiable under heading
            5602 or 5603 of the HTS and are formed in 1 or more ATPDEA
            beneficiary countries) or components are in chief value of
            llama, alpaca, or vicun&241;a.
              (III) Fabrics or yarns, to the extent that apparel
            articles of such fabrics or yarns would be eligible for
            preferential treatment, without regard to the source of the
            fabrics or yarns, under Annex 401 of the NAFTA.
          (ii) Additional fabrics
            At the request of any interested party, the President is
          authorized to proclaim additional fabrics and yarns as
          eligible for preferential treatment under clause (i)(III) if
          - 
              (I) the President determines that such fabrics or yarns
            cannot be supplied by the domestic industry in commercial
            quantities in a timely manner;
              (II) the President has obtained advice regarding the
            proposed action from the appropriate advisory committee
            established under section 135 of the Trade Act of 1974 (19
            U.S.C. 2155) and the United States International Trade
            Commission;
              (III) within 60 days after the request, the President has
            submitted a report to the Committee on Ways and Means of
            the House of Representatives and the Committee on Finance
            of the Senate that sets forth the action proposed to be
            proclaimed and the reasons for such action, and the advice
            obtained under subclause (II);
              (IV) a period of 60 calendar days, beginning with the
            first day on which the President has met the requirements
            of subclause (III), has expired; and
              (V) the President has consulted with such committees
            regarding the proposed action during the period referred to
            in subclause (III).
          (iii) Apparel articles assembled in 1 or more ATPDEA
            beneficiary countries from regional fabrics or regional
            components
            (I) Subject to the limitation set forth in subclause (II),
          apparel articles sewn or otherwise assembled in 1 or more
          ATPDEA beneficiary countries from fabrics or from fabric
          components formed or from components knit-to-shape, in 1 or
          more ATPDEA beneficiary countries, from yarns wholly formed
          in the United States or 1 or more ATPDEA beneficiary
          countries (including fabrics not formed from yarns, if such
          fabrics are classifiable under heading 5602 or 5603 of the
          HTS and are formed in 1 or more ATPDEA beneficiary
          countries), whether or not the apparel articles are also made
          from any of the fabrics, fabric components formed, or
          components knit-to-shape described in clause (i) (unless the
          apparel articles are made exclusively from any of the
          fabrics, fabric components formed, or components
          knit-to-shape described in clause (i)).
            (II) The preferential treatment referred to in subclause
          (I) shall be extended in the 1-year period beginning October
          1, 2002, and in each of the 4 succeeding 1-year periods, to
          imports of apparel articles in an amount not to exceed the
          applicable percentage of the aggregate square meter
          equivalents of all apparel articles imported into the United
          States in the preceding 12-month period for which data are
          available.
            (III) For purposes of subclause (II), the term "applicable
          percentage" means 2 percent for the 1-year period beginning
          October 1, 2002, increased in each of the 4 succeeding 1-year
          periods by equal increments, so that for the period beginning
          October 1, 2006, the applicable percentage does not exceed 5
          percent.
          (iv) Handloomed, handmade, and folklore articles
            A handloomed, handmade, or folklore article of an ATPDEA
          beneficiary country identified under subparagraph (C) that is
          certified as such by the competent authority of such
          beneficiary country.
          (v) Certain other apparel articles
            (I) General rule
              Any apparel article classifiable under subheading 6212.10
            of the HTS, except for articles entered under clause (i),
            (ii), (iii), or (iv), if the article is both cut and sewn
            or otherwise assembled in the United States, or one or more
            ATPDEA beneficiary countries, or both.
            (II) Limitation
              During the 1-year period beginning on October 1, 2003,
            and during each of the 3 succeeding 1-year periods, apparel
            articles described in subclause (I) of a producer or an
            entity controlling production shall be eligible for
            preferential treatment under this paragraph only if the
            aggregate cost of fabrics (exclusive of all findings and
            trimmings) formed in the United States that are used in the
            production of all such articles of that producer or entity
            that are entered and eligible under this clause during the
            preceding 1-year period is at least 75 percent of the
            aggregate declared customs value of the fabric (exclusive
            of all findings and trimmings) contained in all such
            articles of that producer or entity that are entered and
            eligible under this clause during the preceding 1-year
            period.
            (III) Development of procedure to ensure compliance
              The United States Customs Service shall develop and
            implement methods and procedures to ensure ongoing
            compliance with the requirement set forth in subclause
            (II). If the Customs Service finds that a producer or an
            entity controlling production has not satisfied such
            requirement in a 1-year period, then apparel articles
            described in subclause (I) of that producer or entity shall
            be ineligible for preferential treatment under this
            paragraph during any succeeding 1-year period until the
            aggregate cost of fabrics (exclusive of all findings and
            trimmings) formed in the United States that are used in the
            production of such articles of that producer or entity
            entered during the preceding 1-year period is at least 85
            percent of the aggregate declared customs value of the
            fabric (exclusive of all findings and trimmings) contained
            in all such articles of that producer or entity that are
            entered and eligible under this clause during the preceding
            1-year period.
          (vi) Special rules
            (I) Exception for findings and trimmings
              An article otherwise eligible for preferential treatment
            under this paragraph shall not be ineligible for such
            treatment because the article contains findings or
            trimmings of foreign origin, if such findings and trimmings
            do not exceed 25 percent of the cost of the components of
            the assembled product. Examples of findings and trimmings
            are sewing thread, hooks and eyes, snaps, buttons, "bow
            buds", decorative lace, trim, elastic strips, zippers,
            including zipper tapes and labels, and other similar
            products.
            (II) Certain interlining
              (aa) An article otherwise eligible for preferential
            treatment under this paragraph shall not be ineligible for
            such treatment because the article contains certain
            interlinings of foreign origin, if the value of such
            interlinings (and any findings and trimmings) does not
            exceed 25 percent of the cost of the components of the
            assembled article.
              (bb) Interlinings eligible for the treatment described in
            division (aa) include only a chest type plate, "hymo"
            piece, or "sleeve header", of woven or weft-inserted warp
            knit construction and of coarse animal hair or man-made
            filaments.
              (cc) The treatment described in this subclause shall
            terminate if the President makes a determination that
            United States manufacturers are producing such interlinings
            in the United States in commercial quantities.
            (III) De minimis rule
              An article that would otherwise be ineligible for
            preferential treatment under this subparagraph because the
            article contains yarns not wholly formed in the United
            States or in one or more ATPDEA beneficiary countries shall
            not be ineligible for such treatment if the total weight of
            all such yarns is not more than 7 percent of the total
            weight of the good.
            (IV) Special origin rule
              An article otherwise eligible for preferential treatment
            under clause (i) or (iii) shall not be ineligible for such
            treatment because the article contains nylon filament yarn
            (other than elastomeric yarn) that is classifiable under
            subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60,
            5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00,
            or 5402.61.00 of the HTS from a country that is a party to
            an agreement with the United States establishing a free
            trade area, which entered into force before January 1,
            1995.
          (vii) Textile luggage
            Textile luggage - 
              (I) assembled in an ATPDEA beneficiary country from
            fabric wholly formed and cut in the United States, from
            yarns wholly formed in the United States, that is entered
            under subheading 9802.00.80 of the HTS; or
              (II) assembled from fabric cut in an ATPDEA beneficiary
            country from fabric wholly formed in the United States from
            yarns wholly formed in the United States.
        (C) Handloomed, handmade, and folklore articles
          For purposes of subparagraph (B)(iv), the President shall
        consult with representatives of the ATPDEA beneficiary
        countries concerned for the purpose of identifying particular
        textile and apparel goods that are mutually agreed upon as
        being handloomed, handmade, or folklore goods of a kind
        described in section 2.3(a), (b), or (c) of the Annex or
        Appendix 3.1.B.11 of the Annex.
        (D) Penalties for transshipment
          (i) Penalties for exporters
            If the President determines, based on sufficient evidence,
          that an exporter has engaged in transshipment with respect to
          apparel articles from an ATPDEA beneficiary country, then the
          President shall deny all benefits under this chapter to such
          exporter, and any successor of such exporter, for a period of
          2 years.
          (ii) Penalties for countries
            Whenever the President finds, based on sufficient evidence,
          that transshipment has occurred, the President shall request
          that the ATPDEA beneficiary country or countries through
          whose territory the transshipment has occurred take all
          necessary and appropriate actions to prevent such
          transshipment. If the President determines that a country is
          not taking such actions, the President shall reduce the
          quantities of apparel articles that may be imported into the
          United States from such country by the quantity of the
          transshipped articles multiplied by 3, to the extent
          consistent with the obligations of the United States under
          the WTO.
          (iii) Transshipment described
            Transshipment within the meaning of this subparagraph has
          occurred when preferential treatment under subparagraph (A)
          has been claimed for an apparel article on the basis of
          material false information concerning the country of origin,
          manufacture, processing, or assembly of the article or any of
          its components. For purposes of this clause, false
          information is material if disclosure of the true information
          would mean or would have meant that the article is or was
          ineligible for preferential treatment under subparagraph (A).
        (E) Bilateral emergency actions
          (i) In general
            The President may take bilateral emergency tariff actions
          of a kind described in section 4 of the Annex with respect to
          any apparel article imported from an ATPDEA beneficiary
          country if the application of tariff treatment under
          subparagraph (A) to such article results in conditions that
          would be cause for the taking of such actions under such
          section 4 with respect to a like article described in the
          same 8-digit subheading of the HTS that is imported from
          Mexico.
          (ii) Rules relating to bilateral emergency action
            For purposes of applying bilateral emergency action under
          this subparagraph - 
              (I) the requirements of paragraph (5) of section 4 of the
            Annex (relating to providing compensation) shall not apply;
              (II) the term "transition period" in section 4 of the
            Annex shall mean the period ending December 31, 2006; and
              (III) the requirements to consult specified in section 4
            of the Annex shall be treated as satisfied if the President
            requests consultations with the ATPDEA beneficiary country
            in question and the country does not agree to consult
            within the time period specified under section 4 of the
            Annex.
      (4) Tuna
        (A) General rule
          Tuna that is harvested by United States vessels or ATPDEA
        beneficiary country vessels, that is prepared or preserved in
        any manner, in an ATPDEA beneficiary country, in foil or other
        flexible airtight containers weighing with their contents not
        more than 6.8 kilograms each, and that is imported directly
        into the customs territory of the United States from an ATPDEA
        beneficiary country, shall enter the United States free of duty
        and free of any quantitative restrictions.
        (B) Definitions
          In this paragraph - 
          (i) United States vessel
            A "United States vessel" is a vessel having a certificate
          of documentation with a fishery endorsement under chapter 121
          of title 46.
          (ii) ATPDEA vessel
            An "ATPDEA vessel" is a vessel - 
              (I) which is registered or recorded in an ATPDEA
            beneficiary country;
              (II) which sails under the flag of an ATPDEA beneficiary
            country;
              (III) which is at least 75 percent owned by nationals of
            an ATPDEA beneficiary country or by a company having its
            principal place of business in an ATPDEA beneficiary
            country, of which the manager or managers, chairman of the
            board of directors or of the supervisory board, and the
            majority of the members of such boards are nationals of an
            ATPDEA beneficiary country and of which, in the case of a
            company, at least 50 percent of the capital is owned by an
            ATPDEA beneficiary country or by public bodies or nationals
            of an ATPDEA beneficiary country;
              (IV) of which the master and officers are nationals of an
            ATPDEA beneficiary country; and
              (V) of which at least 75 percent of the crew are
            nationals of an ATPDEA beneficiary country.
      (5) Customs procedures
        (A) In general
          (i) Regulations
            Any importer that claims preferential treatment under
          paragraph (1), (3), or (4) shall comply with customs
          procedures similar in all material respects to the
          requirements of Article 502(1) of the NAFTA as implemented
          pursuant to United States law, in accordance with regulations
          promulgated by the Secretary of the Treasury.
          (ii) Determination
            (I) In general
              In order to qualify for the preferential treatment under
            paragraph (1), (3), or (4) and for a Certificate of Origin
            to be valid with respect to any article for which such
            treatment is claimed, there shall be in effect a
            determination by the President that each country described
            in subclause (II) - 
                (aa) has implemented and follows, or
                (bb) is making substantial progress toward implementing
              and following,

            procedures and requirements similar in all material
            respects to the relevant procedures and requirements under
            chapter 5 of the NAFTA.
            (II) Country described
              A country is described in this subclause if it is an
            ATPDEA beneficiary country - 
                (aa) from which the article is exported; or
                (bb) in which materials used in the production of the
              article originate or in which the article or such
              materials undergo production that contributes to a claim
              that the article is eligible for preferential treatment
              under paragraph (1), (3), or (4).
        (B) Certificate of Origin
          The Certificate of Origin that otherwise would be required
        pursuant to the provisions of subparagraph (A) shall not be
        required in the case of an article imported under paragraph
        (1), (3), or (4) if such Certificate of Origin would not be
        required under Article 503 of the NAFTA (as implemented
        pursuant to United States law), if the article were imported
        from Mexico.
        (C) Report on cooperation of ATPDEA countries concerning
          circumvention
          The United States Commissioner of Customs shall conduct a
        study analyzing the extent to which each ATPDEA beneficiary
        country - 
            (i) has cooperated fully with the United States, consistent
          with its domestic laws and procedures, in instances of
          circumvention or alleged circumvention of existing quotas on
          imports of textile and apparel goods, to establish necessary
          relevant facts in the places of import, export, and, where
          applicable, transshipment, including investigation of
          circumvention practices, exchanges of documents,
          correspondence, reports, and other relevant information, to
          the extent such information is available;
            (ii) has taken appropriate measures, consistent with its
          domestic laws and procedures, against exporters and importers
          involved in instances of false declaration concerning
          quantities, description, classification, or origin of textile
          and apparel goods; and
            (iii) has penalized the individuals and entities involved
          in any such circumvention, consistent with its domestic laws
          and procedures, and has worked closely to seek the
          cooperation of any third country to prevent such
          circumvention from taking place in that third country.

        The Commissioner of Customs shall submit to the Congress, not
        later than October 1, 2003, a report on the study conducted
        under this subparagraph.
      (6) Definitions
        In this subsection - 
        (A) Annex
          The term "the Annex" means Annex 300-B of the NAFTA.
        (B) ATPDEA beneficiary country
          The term "ATPDEA beneficiary country" means any "beneficiary
        country", as defined in section 3202(a)(1) of this title, which
        the President designates as an ATPDEA beneficiary country,
        taking into account the criteria contained in subsections (c)
        and (d) of section 3202 of this title and other appropriate
        criteria, including the following:
            (i) Whether the beneficiary country has demonstrated a
          commitment to - 
              (I) undertake its obligations under the WTO, including
            those agreements listed in section 3511(d) of this title,
            on or ahead of schedule; and
              (II) participate in negotiations toward the completion of
            the FTAA or another free trade agreement.

            (ii) The extent to which the country provides protection of
          intellectual property rights consistent with or greater than
          the protection afforded under the Agreement on Trade-Related
          Aspects of Intellectual Property Rights described in section
          3511(d)(15) of this title.
            (iii) The extent to which the country provides
          internationally recognized worker rights, including - 
              (I) the right of association;
              (II) the right to organize and bargain collectively;
              (III) a prohibition on the use of any form of forced or
            compulsory labor;
              (IV) a minimum age for the employment of children; and
              (V) acceptable conditions of work with respect to minimum
            wages, hours of work, and occupational safety and health.

            (iv) Whether the country has implemented its commitments to
          eliminate the worst forms of child labor, as defined in
          section 507(6) of the Trade Act of 1974 [19 U.S.C. 2467(6)].
            (v) The extent to which the country has met the
          counternarcotics certification criteria set forth in section
          2291j of title 22 for eligibility for United States
          assistance.
            (vi) The extent to which the country has taken steps to
          become a party to and implements the Inter-American
          Convention Against Corruption.
            (vii) The extent to which the country - 
              (I) applies transparent, nondiscriminatory, and
            competitive procedures in government procurement equivalent
            to those contained in the Agreement on Government
            Procurement described in section 3511(d)(17) of this title;
            and
              (II) contributes to efforts in international fora to
            develop and implement international rules in transparency
            in government procurement.

            (viii) The extent to which the country has taken steps to
          support the efforts of the United States to combat terrorism.
        (C) NAFTA
          The term "NAFTA" means the North American Free Trade
        Agreement entered into between the United States, Mexico, and
        Canada on December 17, 1992.
        (D) WTO
          The term "WTO" has the meaning given that term in section
        3501 of this title.
        (E) ATPDEA
          The term "ATPDEA" means the Andean Trade Promotion and Drug
        Eradication Act.
        (F) FTAA
          The term "FTAA" means the Free Trade Area for the Americas.
    (c) Suspension of duty-free treatment
      (1) The President may by proclamation suspend the duty-free
    treatment provided by this chapter with respect to any eligible
    article and may proclaim a duty rate for such article if such
    action is proclaimed under chapter 1 of title II of the Trade Act
    of 1974 [19 U.S.C. 2251 et seq.] or section 1862 of this title.
      (2) In any report by the United States International Trade
    Commission to the President under section 202(f) of the Trade Act
    of 1974 [19 U.S.C. 2252(f)] regarding any article for which
    duty-free treatment has been proclaimed by the President pursuant
    to this chapter, the Commission shall state whether and to what
    extent its findings and recommendations apply to such article when
    imported from beneficiary countries.
      (3) For purposes of section 203 of the Trade Act of 1974 [19
    U.S.C. 2253], the suspension of the duty-free treatment provided by
    this chapter shall be treated as an increase in duty.
      (4) No proclamation providing solely for a suspension referred to
    in paragraph (3) of this subsection with respect to any article
    shall be taken under section 203 of the Trade Act of 1974 [19
    U.S.C. 2253] unless the United States International Trade
    Commission, in addition to making an affirmative determination with
    respect to such article under section 202(b) of the Trade Act of
    1974 [19 U.S.C. 2252(b)], determines in the course of its
    investigation under such section that the serious injury (or threat
    thereof) substantially caused by imports to the domestic industry
    producing a like or directly competitive article results from the
    duty-free treatment provided by this chapter.
      (5)(A) Any action taken under section 203 of the Trade Act of
    1974 [19 U.S.C. 2253] that is in effect when duty-free treatment is
    proclaimed under section 3201 of this title shall remain in effect
    until modified or terminated.
      (B) If any article is subject to any such action at the time
    duty-free treatment is proclaimed under section 3201 of this title,
    the President may reduce or terminate the application of such
    action to the importation of such article from beneficiary
    countries prior to the otherwise scheduled date on which such
    reduction or termination would occur pursuant to the criteria and
    procedures of section 204 of the Trade Act of 1974 [19 U.S.C.
    2254].
    (d) Emergency relief with respect to perishable products
      (1) If a petition is filed with the United States International
    Trade Commission pursuant to the provisions of section 201 of the
    Trade Act of 1974 [19 U.S.C. 2251] regarding a perishable product
    and alleging injury from imports from beneficiary countries, then
    the petition may also be filed with the Secretary of Agriculture
    with a request that emergency relief be granted pursuant to
    paragraph (3) of this subsection with respect to such article.
      (2) Within 14 days after the filing of a petition under paragraph
    (1) of this subsection - 
        (A) if the Secretary of Agriculture has reason to believe that
      a perishable product from a beneficiary country is being imported
      into the United States in such increased quantities as to be a
      substantial cause of serious injury, or the threat thereof, to
      the domestic industry producing a perishable product like or
      directly competitive with the imported product and that emergency
      action is warranted, he shall advise the President and recommend
      that the President take emergency action; or
        (B) the Secretary of Agriculture shall publish a notice of his
      determination not to recommend the imposition of emergency action
      and so advise the petitioner.

      (3) Within 7 days after the President receives a recommendation
    from the Secretary of Agriculture to take emergency action pursuant
    to paragraph (2) of this subsection, he shall issue a proclamation
    withdrawing the duty-free treatment provided by this chapter or
    publish a notice of his determination not to take emergency action.
      (4) The emergency action provided by paragraph (3) of this
    subsection shall cease to apply - 
        (A) upon the taking of action under section 203 of the Trade
      Act of 1974 [19 U.S.C. 2253],
        (B) on the day a determination by the President not to take
      action under section 203(b)(2) of such Act becomes final,
        (C) in the event of a report of the United States International
      Trade Commission containing a negative finding, on the day of the
      Commission's report is submitted to the President, or
        (D) whenever the President determines that because of changed
      circumstances such relief is no longer warranted.

      (5) For purposes of this subsection, the term "perishable
    product" means - 
        (A) live plants and fresh cut flowers provided for in chapter 6
      of the HTS;
        (B) fresh or chilled vegetables provided for in headings 0701
      through 0709 (except subheading 0709.52.00) and heading 0714 of
      the HTS;
        (C) fresh fruit provided for in subheadings 0804.20 through
      0810.90 (except citrons of subheadings 0805.90.00, tamarinds and
      kiwi fruit of subheading 0810.90.20, and cashew apples, mameyes
      colorados, sapodillas, soursops and sweetsops of subheading
      0810.90.40) of the HTS; or
        (D) concentrated citrus fruit juice provided for in subheadings
      2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of
      the HTS.
    (e) Fees under section 624 of title 7
      No proclamation issued pursuant to this chapter shall affect fees
    imposed pursuant to section 624 of title 7.
    (f) Tariff-rate quotas
      No quantity of an agricultural product subject to a tariff-rate
    quota that exceeds the in-quota quantity shall be eligible for
    duty-free treatment under this chapter.



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