---
kind: "range"
citation: "19 U.S.C. §§ 2461–2467"
title: "19"
from: "2461"
to: "2467"
count: 9
release: "119-102"
url: "https://uscodex.org/usc/19/2461..2467"
---

# §2461. Authority to extend preferences


The President may provide [duty](/usc/19/2481.md?p=1)-free treatment for any eligible article from any [beneficiary developing country](/usc/19/2467.md?p=1) in accordance with the provisions of this subchapter. In taking any such action, the President shall have due regard for—

- (1) the effect such action will have on furthering the economic development of developing [countries](/usc/19/2467.md?p=2) through the expansion of their exports;
- (2) the extent to which other major developed [countries](/usc/19/2467.md?p=2) are undertaking a comparable effort to assist developing [countries](/usc/19/2467.md?p=2) by granting generalized preferences with respect to imports of products of such [countries](/usc/19/2467.md?p=2);
- (3) the anticipated impact of such action on United States producers of like or directly competitive products; and
- (4) the extent of the [beneficiary developing country](/usc/19/2467.md?p=1)’s competitiveness with respect to eligible articles.

# §2462. Designation of beneficiary developing countries

- (a) **Authority to designate countries—**
  - (1) **Beneficiary developing countries—** The President is authorized to designate [countries](/usc/19/2467.md?p=2) as [beneficiary developing countries](/usc/19/2467.md?p=1) for purposes of this subchapter.
  - (2) **Least-developed beneficiary developing countries—** The President is authorized to designate any [beneficiary developing country](/usc/19/2467.md?p=1) as a [least-developed beneficiary developing country](/usc/19/2467.md?p=5) for purposes of this subchapter, based on the considerations in [section 2461 of this title](/usc/19/2461.md) and [subsection (c)](#c) of this section.
- (b) **Countries ineligible for designation—**
  - (1) **Specific countries—** The following [countries](/usc/19/2467.md?p=2) may not be designated as [beneficiary developing countries](/usc/19/2467.md?p=1) for purposes of this subchapter:
    - (A) Australia.
    - (B) Canada.
    - (C) European Union [member](/usc/19/2571.md?p=8) states.
    - (D) Iceland.
    - (E) Japan.
    - (F) Monaco.
    - (G) New Zealand.
    - (H) Norway.
    - (I) Switzerland.
  - (2) **Other bases for ineligibility—** The President shall not designate any [country](/usc/19/2467.md?p=2) a [beneficiary developing country](/usc/19/2467.md?p=1) under this subchapter if any of the following applies:
    - (A) Such [country](/usc/19/2467.md?p=2) is a Communist [country](/usc/19/2467.md?p=2), unless—
      - (i) the products of such [country](/usc/19/2467.md?p=2) receive [nondiscriminatory treatment](/usc/19/2481.md?p=9),
      - (ii) such [country](/usc/19/2467.md?p=2) is a [WTO Member](/usc/19/2702.md?p=a-1-E) (as such term is defined in [section 3501(10) of this title](/usc/19/3501.md?p=10)) and a [member](/usc/19/2571.md?p=8) of the International Monetary Fund, and
      - (iii) such [country](/usc/19/2467.md?p=2) is not dominated or controlled by international communism.
    - (B) Such [country](/usc/19/2467.md?p=2) is a party to an arrangement of [countries](/usc/19/2467.md?p=2) and participates in any action pursuant to such arrangement, the effect of which is—
      - (i) to withhold supplies of vital commodity resources from international trade or to raise the price of such commodities to an unreasonable level, and
      - (ii) to cause serious disruption of the world economy.
    - (C) Such [country](/usc/19/2467.md?p=2) affords preferential treatment to the products of a developed [country](/usc/19/2467.md?p=2), other than the United States, which has, or is likely to have, a significant adverse effect on United States [commerce](/usc/19/2481.md?p=10).
    - (D)
      - (i) Such [country](/usc/19/2467.md?p=2)—
        - (I) has nationalized, expropriated, or otherwise seized ownership or control of property, including patents, trademarks, or copyrights, owned by a United States citizen or by a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens,
        - (II) has taken steps to repudiate or nullify an [existing](/usc/19/2481.md?p=7) contract or [agreement](/usc/19/2518.md?p=1) with a United States citizen or a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of property, including patents, trademarks, or copyrights, so owned, or
        - (III) has imposed or enforced taxes or other exactions, restrictive maintenance or operational conditions, or other measures with respect to property, including patents, trademarks, or copyrights, so owned, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of such property,

        unless [clause (ii)](#b-2-D-ii) applies.

      - (ii) This clause applies if the President determines that—
        - (I) prompt, adequate, and effective compensation has been or is being made to the citizen, corporation, partnership, or association referred to in [clause (i)](#b-2-D-i),
        - (II) good faith negotiations to provide prompt, adequate, and effective compensation under the applicable provisions of international law are in progress, or the [country](/usc/19/2467.md?p=2) described in [clause (i)](#b-2-D-i) 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 the President promptly furnishes a copy of such determination to the Senate and House of Representatives.

    - (E) Such [country](/usc/19/2467.md?p=2) 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 percent 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.
    - (F) Such [country](/usc/19/2467.md?p=2) aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism or the Secretary of State makes a determination with respect to such [country](/usc/19/2467.md?p=2) under section 4605(j)(1)(A)[^1] of [title 50](/usc/50.md) or such [country](/usc/19/2467.md?p=2) has not taken steps to support the efforts of the United States to combat terrorism.
    - (G) Such [country](/usc/19/2467.md?p=2) has not taken or is not taking steps to afford [internationally recognized worker rights](/usc/19/2467.md?p=4) to workers in the [country](/usc/19/2467.md?p=2) (including any designated zone in that [country](/usc/19/2467.md?p=2)).
    - (H) Such [country](/usc/19/2467.md?p=2) has not implemented its commitments to eliminate the [worst forms of child labor](/usc/19/2467.md?p=6).

    Subparagraphs [(D)](#b-2-D), [(E)](#b-2-E), [(F)](#b-2-F), [(G)](#b-2-G), and [(H)](#b-2-H) (to the extent described in [section 2467(6)(D) of this title](/usc/19/2467.md?p=6-D)) shall not prevent the designation of any [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) under this subchapter if the President determines that such designation will be in the national economic interest of the United States and reports such determination to the Congress with the reasons therefor.

- (c) **Factors affecting country designation—** In determining whether to designate any [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) under this subchapter, the President shall take into account—
  - (1) an expression by such [country](/usc/19/2467.md?p=2) of its desire to be so designated;
  - (2) the level of economic development of such [country](/usc/19/2467.md?p=2), including its per capita gross national product, the living standards of its inhabitants, and any other economic factors which the President deems appropriate;
  - (3) whether or not other major developed [countries](/usc/19/2467.md?p=2) are extending generalized [preferential tariff treatment](/usc/19/4502.md?p=7) to such [country](/usc/19/2467.md?p=2);
  - (4) the extent to which such [country](/usc/19/2467.md?p=2) has assured the United States that it will provide equitable and reasonable access to the markets and basic commodity resources of such [country](/usc/19/2467.md?p=2) and the extent to which such [country](/usc/19/2467.md?p=2) has assured the United States that it will refrain from engaging in unreasonable export practices;
  - (5) the extent to which such [country](/usc/19/2467.md?p=2) is providing adequate and effective protection of intellectual property rights;
  - (6) the extent to which such [country](/usc/19/2467.md?p=2) has taken action to—
    - (A) reduce trade distorting investment practices and policies (including export performance requirements); and
    - (B) reduce or eliminate barriers to trade in services; and
  - (7) whether or not such [country](/usc/19/2467.md?p=2) has taken or is taking steps to afford to workers in that [country](/usc/19/2467.md?p=2) (including any designated zone in that [country](/usc/19/2467.md?p=2)) [internationally recognized worker rights](/usc/19/2467.md?p=4).
- (d) **Withdrawal, suspension, or limitation of country designation—**
  - (1) **In general—** The President may withdraw, suspend, or limit the application of the [duty](/usc/19/2481.md?p=1)-free treatment accorded under this subchapter with respect to any [country](/usc/19/2467.md?p=2). In taking any action under this subsection, the President shall consider the factors set forth in [section 2461 of this title](/usc/19/2461.md) and [subsection (c)](#c) of this section.
  - (2) **Changed circumstances—** The President shall, after complying with the requirements of [subsection (f)(2)](#f-2), withdraw or suspend the designation of any [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) if, after such designation, the President determines that as the result of changed circumstances such [country](/usc/19/2467.md?p=2) would be barred from designation as a [beneficiary developing country](/usc/19/2467.md?p=1) under [subsection (b)(2)](#b-2). Such [country](/usc/19/2467.md?p=2) shall cease to be a [beneficiary developing country](/usc/19/2467.md?p=1) on the day on which the President issues an Executive order or Presidential proclamation revoking the designation of such [country](/usc/19/2467.md?p=2) under this subchapter.
  - (3) **Advice to Congress—** The President shall, as necessary, advise the Congress on the application of [section 2461 of this title](/usc/19/2461.md) and [subsection (c)](#c) of this section, and the actions the President has taken to withdraw, to suspend, or to limit the application of [duty](/usc/19/2481.md?p=1)-free treatment with respect to any [country](/usc/19/2467.md?p=2) which has failed to adequately take the actions described in [subsection (c)](#c).
- (e) **Mandatory graduation of beneficiary developing countries—** If the President determines that a [beneficiary developing country](/usc/19/2467.md?p=1) has become a “high income” [country](/usc/19/2467.md?p=2), as defined by the official statistics of the International Bank for Reconstruction and Development, then the President shall terminate the designation of such [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) for purposes of this subchapter, effective on January 1 of the second year following the year in which such determination is made.
- (f) **Congressional notification—**
  - (1) **Notification of designation—**
    - (A) **In general—** Before the President designates any [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) under this subchapter, the President shall notify the Congress of the President’s intention to make such designation, together with the considerations entering into such decision.
    - (B) **Designation as least-developed beneficiary developing country—** At least 60 days before the President designates any [country](/usc/19/2467.md?p=2) as a [least-developed beneficiary developing country](/usc/19/2467.md?p=5), the President shall notify the Congress of the President’s intention to make such designation.
  - (2) **Notification of termination—** If the President has designated any [country](/usc/19/2467.md?p=2) as a [beneficiary developing country](/usc/19/2467.md?p=1) under this subchapter, the President shall not terminate such designation unless, at least 60 days before such termination, the President has notified the Congress and has notified such [country](/usc/19/2467.md?p=2) of the President’s intention to terminate such designation, together with the considerations entering into such decision.

# §2463. Designation of eligible articles

- (a) **Eligible articles—**
  - (1) **Designation—**
    - (A) **In general—** Except as provided in [subsection (b)](#b), the President is authorized to designate articles as eligible articles from all [beneficiary developing countries](/usc/19/2467.md?p=1) for purposes of this subchapter by Executive order or Presidential proclamation after receiving the advice of the International Trade Commission in accordance with [subsection (e)](#e).
    - (B) **Least-developed beneficiary developing countries—** Except for articles described in subparagraphs [(A)](#b-1-A), [(B)](#b-1-B), and [(E)](#b-1-E) of subsection (b)(1) and articles described in paragraphs [(2)](#b-2) and [(3)](#b-3) of subsection (b), the President may, in carrying out [section 2462(d)(1) of this title](/usc/19/2462.md?p=d-1) and [subsection (c)(1)](#c-1) of this section, designate articles as eligible articles only for [countries](/usc/19/2467.md?p=2) designated as [least-developed beneficiary developing countries](/usc/19/2467.md?p=5) under [section 2462(a)(2) of this title](/usc/19/2462.md?p=a-2) if, after receiving the advice of the International Trade Commission in accordance with [subsection (e)](#e) of this section, the President determines that such articles are not import-sensitive in the context of imports from [least-developed beneficiary developing countries](/usc/19/2467.md?p=5).
    - (C) **Three-year rule—** If, after receiving the advice of the International Trade Commission under [subsection (e)](#e), an article has been formally considered for designation as an eligible article under this subchapter and denied such designation, such article may not be reconsidered for such designation for a period of 3 years after such denial.
  - (2) **Rule of origin—**
    - (A) **General rule—** The [duty](/usc/19/2481.md?p=1)-free treatment provided under this subchapter shall apply to any eligible article which is the growth, product, or manufacture of a [beneficiary developing country](/usc/19/2467.md?p=1) if—
      - (i) that article is imported directly from a [beneficiary developing country](/usc/19/2467.md?p=1) into the customs territory of the United States; and
      - (ii) the sum of—
        - (I) the cost or value of the materials produced in the [beneficiary developing country](/usc/19/2467.md?p=1) or any two or more such [countries](/usc/19/2467.md?p=2) that are [members](/usc/19/2571.md?p=8) of the same association of [countries](/usc/19/2467.md?p=2) and are treated as one [country](/usc/19/2467.md?p=2) under [section 2467(2) of this title](/usc/19/2467.md?p=2), plus
        - (II) the direct costs of processing operations performed in such [beneficiary developing country](/usc/19/2467.md?p=1) or such [member](/usc/19/2571.md?p=8) [countries](/usc/19/2467.md?p=2),

      is not less than 35 percent of the appraised value of such article at the time it is [entered](/usc/19/2467.md?p=3).

    - (B) **Exclusions—** An article shall not be treated as the growth, product, or manufacture of a [beneficiary developing country](/usc/19/2467.md?p=1) by virtue of having merely undergone—
      - (i) simple combining or packaging operations, or
      - (ii) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.
  - (3) **Regulations—** The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out [paragraph (2)](#a-2), including, but not limited to, regulations providing that, in order to be eligible for [duty](/usc/19/2481.md?p=1)-free treatment under this subchapter, an article—
    - (A) must be wholly the growth, product, or manufacture of a [beneficiary developing country](/usc/19/2467.md?p=1), or
    - (B) must be a new or different article of [commerce](/usc/19/2481.md?p=10) which has been grown, produced, or manufactured in the [beneficiary developing country](/usc/19/2467.md?p=1).
- (b) **Articles that may not be designated as eligible articles—**
  - (1) **Import-sensitive articles—** The President may not designate any article as an eligible article under [subsection (a)](#a) if such article is within one of the following categories of import-sensitive articles:
    - (A) Except as provided in paragraphs [(4)](#b-4) and [(5)](#b-5),[^1] textile and apparel articles which were not eligible articles for purposes of this subchapter on January 1, 1994, as this subchapter was in effect on such date.
    - (B) Watches, except those watches [entered](/usc/19/2467.md?p=3) after June 30, 1989, that the President specifically determines, after public notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions.
    - (C) Import-sensitive electronic articles.
    - (D) Import-sensitive steel articles.
    - (E) Except as provided in [paragraph (5)](#b-5),[^1] footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel which were not eligible articles for purposes of this subchapter on January 1, 1995, as this subchapter was in effect on such date.
    - (F) Import-sensitive semimanufactured and manufactured glass products.
    - (G) Any other articles which the President determines to be import-sensitive in the context of the Generalized System of Preferences.
  - (2) **Articles against which other actions taken—** An article shall not be an eligible article for purposes of this subchapter for any period during which such article is the subject of any action proclaimed pursuant to [section 2253 of this title](/usc/19/2253.md) or section [1862](/usc/19/1862.md) or [1981](/usc/19/1981.md) of this title.
  - (3) **Agricultural products—** No quantity of an agricultural product subject to a tariff-rate quota that exceeds the in-quota quantity shall be eligible for [duty](/usc/19/2481.md?p=1)-free treatment under this subchapter.
  - (4) **Certain hand-knotted or hand-woven carpets—** Notwithstanding [paragraph (1)(A)](#b-1-A), the President may designate as an eligible article or articles under [subsection (a)](#a) carpets or rugs which are hand-loomed, hand-woven, hand-hooked, hand-tufted, or hand-knotted, and classifiable under subheading 5701.10.16, 5701.10.40, 5701.90.10, 5701.90.20, 5702.10.90, 5702.42.20, 5702.49.10, 5702.51.20, 5702.91.30, 5702.92.00, 5702.99.10, 5703.10.00, 5703.20.10, or 5703.30.00 of the Harmonized Tariff Schedule of the United States.
  - (5) **[^2] Certain cotton articles—** Notwithstanding [paragraph (3)](#b-3), the President may designate as an eligible article or articles under [subsection (a)(1)(B)](#a-1-B) only for [countries](/usc/19/2467.md?p=2) designated as [least-developed beneficiary developing countries](/usc/19/2467.md?p=5) under [section 2462(a)(2) of this title](/usc/19/2462.md?p=a-2) cotton articles classifiable under subheading 5201.00.18, 5201.00.28, 5201.00.38, 5202.99.30, or 5203.00.30 of the Harmonized Tariff Schedule of the United States.
  - (5) **[^2] Certain luggage and travel articles—** Notwithstanding subparagraph [(A)](#b-1-A) or [(E)](#b-1-E) of paragraph (1), the President may designate the following as eligible articles under [subsection (a)](#a):
    - (A) Articles classifiable under subheading 4202.11.00, 4202.12.40, 4202.21.60, 4202.21.90, 4202.22.15, 4202.22.45, 4202.31.60, 4202.32.40, 4202.32.80, 4202.92.15, 4202.92.20, 4202.92.45, or 4202.99.90 of the Harmonized Tariff Schedule of the United States.
    - (B) Articles classifiable under statistical reporting number 4202.12.2020, 4202.12.2050, 4202.12.8030, 4202.12.8070, 4202.22.8050, 4202.32.9550, 4202.32.9560, 4202.91.0030, 4202.91.0090, 4202.92.3020, 4202.92.3031, 4202.92.3091, 4202.92.9026, or 4202.92.9060 of the Harmonized Tariff Schedule of the United States, as such statistical reporting numbers are in effect on June 29, 2015.
- (c) **Withdrawal, suspension, or limitation of duty-free treatment; competitive need limitation—**
  - (1) **In general—** The President may withdraw, suspend, or limit the application of the [duty](/usc/19/2481.md?p=1)-free treatment accorded under this subchapter with respect to any article, except that no rate of [duty](/usc/19/2481.md?p=1) may be established with respect to any article pursuant to this subsection other than the rate which would apply but for this subchapter. In taking any action under this subsection, the President shall consider the factors set forth in sections [2461](/usc/19/2461.md) and [2462(c)](/usc/19/2462.md?p=c) of this title.
  - (2) **Competitive need limitation—**
    - (A) **Basis for withdrawal of duty-free treatment—**
      - (i) **In general—** Except as provided in [clause (ii)](#c-2-A-ii) and subject to [subsection (d)](#d), whenever the President determines that a [beneficiary developing country](/usc/19/2467.md?p=1) has exported (directly or indirectly) to the United States during any calendar year beginning after December 31, 1995—
        - (I) a quantity of an eligible article having an appraised value in excess of the applicable amount for the calendar year, or
        - (II) a quantity of an eligible article equal to or exceeding 50 percent of the appraised value of the total imports of that article into the United States during any calendar year,

      the President shall, not later than November 1 of the next calendar year, terminate the [duty](/usc/19/2481.md?p=1)-free treatment for that article from that [beneficiary developing country](/usc/19/2467.md?p=1).

      - (ii) **Annual adjustment of applicable amount—** For purposes of applying [clause (i)](#c-2-A-i), the applicable amount is—
        - (I) for 1996, $75,000,000, and
        - (II) for each calendar year thereafter, an amount equal to the applicable amount in effect for the preceding calendar year plus $5,000,000.
    - (B) **“Country” defined—** For purposes of this paragraph, the term “country” does not include an association of countries which is treated as one country under [section 2467(2) of this title](/usc/19/2467.md?p=2), but does include a country which is a [member](/usc/19/2571.md?p=8) of any such association.
    - (C) **Redesignations—** A [country](#c-2-B) which is no longer treated as a [beneficiary developing country](/usc/19/2467.md?p=1) with respect to an eligible article by reason of [subparagraph (A)](#c-2-A) may, subject to the considerations set forth in sections [2461](/usc/19/2461.md) and [2462](/usc/19/2462.md) of this title, be redesignated a [beneficiary developing country](/usc/19/2467.md?p=1) with respect to such article if imports of such article from such [country](#c-2-B) did not exceed the limitations in [subparagraph (A)](#c-2-A) during the preceding calendar year.
    - (D) **Least-developed beneficiary developing countries and beneficiary sub-Saharan African countries—** [Subparagraph (A)](#c-2-A) shall not apply to any [least-developed beneficiary developing country](/usc/19/2467.md?p=5) or any [beneficiary sub-Saharan African country](/usc/19/3721.md?p=f-2).
    - (E) **Articles not produced in the United States excluded—** [Subparagraph (A)(i)(II)](#c-2-A-i-II) shall not apply with respect to any eligible article if a like or directly competitive article was not produced in the United States in any of the preceding 3 calendar years.
    - (F) **De minimis waivers—**
      - (i) **In general—** The President may disregard [subparagraph (A)(i)(II)](#c-2-A-i-II) with respect to any eligible article from any [beneficiary developing country](/usc/19/2467.md?p=1) if the aggregate appraised value of the imports of such article into the United States during the preceding calendar year does not exceed the applicable amount for such preceding calendar year.
      - (ii) **Applicable amount—** For purposes of applying [clause (i)](#c-2-F-i), the applicable amount is—
        - (I) for calendar year 1996, $13,000,000, and
        - (II) for each calendar year thereafter, an amount equal to the applicable amount in effect for the preceding calendar year plus $500,000.
- (d) **Waiver of competitive need limitation—**
  - (1) **In general—** The President may waive the application of [subsection (c)(2)](#c-2) with respect to any eligible article of any [beneficiary developing country](/usc/19/2467.md?p=1) if, before November 1 of the calendar year beginning after the calendar year for which a determination described in [subsection (c)(2)(A)](#c-2-A) was made with respect to such eligible article, the President—
    - (A) receives the advice of the International Trade Commission under [section 1332 of this title](/usc/19/1332.md) on whether any industry in the United States is likely to be adversely affected by such waiver,
    - (B) determines, based on the considerations described in sections [2461](/usc/19/2461.md) and [2462(c)](/usc/19/2462.md?p=c) of this title and the advice described in [subparagraph (A)](#d-1-A), that such waiver is in the national economic interest of the United States, and
    - (C) publishes the determination described in [subparagraph (B)](#d-1-B) in the Federal Register.
  - (2) **Considerations by the President—** In making any determination under [paragraph (1)](#d-1), the President shall give great weight to—
    - (A) the extent to which the [beneficiary developing country](/usc/19/2467.md?p=1) has assured the United States that such [country](/usc/19/2467.md?p=2) will provide equitable and reasonable access to the markets and basic commodity resources of such [country](/usc/19/2467.md?p=2), and
    - (B) the extent to which such [country](/usc/19/2467.md?p=2) provides adequate and effective protection of intellectual property rights.
  - (3) **Other bases for waiver—** The President may waive the application of [subsection (c)(2)](#c-2) if, before November 1 of the calendar year beginning after the calendar year for which a determination described in [subsection (c)(2)](#c-2) was made with respect to a [beneficiary developing country](/usc/19/2467.md?p=1), the President determines that—
    - (A) there has been a historical preferential trade relationship between the United States and such [country](/usc/19/2467.md?p=2),
    - (B) there is a treaty or [trade agreement](/usc/19/2504.md?p=c-4-A) in force covering economic relations between such [country](/usc/19/2467.md?p=2) and the United States, and
    - (C) such [country](/usc/19/2467.md?p=2) does not discriminate against, or impose unjustifiable or unreasonable barriers to, United States [commerce](/usc/19/2481.md?p=10),

    and the President publishes that determination in the Federal Register.

  - (4) **Limitations on waivers—**
    - (A) **In general—** The President may not exercise the waiver authority under this subsection with respect to a quantity of an eligible article [entered](/usc/19/2467.md?p=3) during any calendar year beginning after 1995, the aggregate appraised value of which equals or exceeds 30 percent of the aggregate appraised value of all articles that [entered](/usc/19/2467.md?p=3) [duty](/usc/19/2481.md?p=1)-free under this subchapter during the preceding calendar year.
    - (B) **Other waiver limits—**
      - (i) The President may not exercise the waiver authority provided under this subsection with respect to a quantity of an eligible article [entered](/usc/19/2467.md?p=3) during any calendar year beginning after 1995, the aggregate appraised value of which exceeds 15 percent of the aggregate appraised value of all articles that have [entered](/usc/19/2467.md?p=3) [duty](/usc/19/2481.md?p=1)-free under this subchapter during the preceding calendar year from those [beneficiary developing countries](/usc/19/2467.md?p=1) which for the preceding calendar year—
        - (I) had a per capita gross national product (calculated on the basis of the best available information, including that of the International Bank for Reconstruction and Development) of $5,000 or more; or
        - (II) had exported (either directly or indirectly) to the United States a quantity of articles that was [duty](/usc/19/2481.md?p=1)-free under this subchapter that had an aggregate appraised value of more than 10 percent of the aggregate appraised value of all articles that [entered](/usc/19/2467.md?p=3) [duty](/usc/19/2481.md?p=1)-free under this subchapter during that year.
      - (ii) Not later than November 1 of each year, the President should revoke any waiver that has then been in effect with respect to an article for 5 years or more if the [beneficiary developing country](/usc/19/2467.md?p=1) has exported to the United States (directly or indirectly) during the preceding calendar year a quantity of the article—
        - (I) having an appraised value in excess of 1.5 times the applicable amount set forth in [subsection (c)(2)(A)(ii)](#c-2-A-ii) for that calendar year; or
        - (II) exceeding 75 percent of the appraised value of the total imports of that article into the United States during that calendar year.
    - (C) **Calculation of limitations—** There shall be counted against the limitations imposed under subparagraphs [(A)](#d-4-A) and [(B)](#d-4-B) for any calendar year only that value of any eligible article of any [country](/usc/19/2467.md?p=2) that—
      - (i) [entered](/usc/19/2467.md?p=3) [duty](/usc/19/2481.md?p=1)-free under this subchapter during such calendar year; and
      - (ii) is in excess of the value of that article that would have been so [entered](/usc/19/2467.md?p=3) during such calendar year if the limitations under [subsection (c)(2)(A)](#c-2-A) applied.
  - (5) **Effective period of waiver—** Any waiver granted under this subsection shall remain in effect until the President determines that such waiver is no longer warranted due to changed circumstances.
- (e) **International Trade Commission advice—** Before designating articles as eligible articles under [subsection (a)(1)](#a-1), the President shall publish and furnish the International Trade Commission with lists of articles which may be considered for designation as eligible articles for purposes of this subchapter. The provisions of sections [2151](/usc/19/2151.md), [2152](/usc/19/2152.md), [2153](/usc/19/2153.md), and [2154](/usc/19/2154.md) of this title shall be complied with as though action under [section 2461 of this title](/usc/19/2461.md) and this section were action under [section 2133 of this title](/usc/19/2133.md) to carry out a [trade agreement](/usc/19/2504.md?p=c-4-A) [entered](/usc/19/2467.md?p=3) into under [section 2133 of this title](/usc/19/2133.md).
- (f) **Special rule concerning Puerto Rico—** No action under this subchapter may affect any tariff [duty](/usc/19/2481.md?p=1) imposed by the Legislature of Puerto Rico pursuant to [section 1319 of this title](/usc/19/1319.md) on coffee imported into Puerto Rico.

# §2464. Review and report to Congress


The President shall submit an annual report to the Congress on the status of [internationally recognized worker rights](/usc/19/2467.md?p=4) within each [beneficiary developing country](/usc/19/2467.md?p=1), including the findings of the Secretary of Labor with respect to the beneficiary [country](/usc/19/2467.md?p=2)’s implementation of its international commitments to eliminate the [worst forms of child labor](/usc/19/2467.md?p=6).


# §2465. Date of termination


No [duty](/usc/19/2481.md?p=1)-free treatment provided under this subchapter shall remain in effect after December 31, 2020.


# §2466. Agricultural exports of beneficiary developing countries


The appropriate agencies of the United States shall assist [beneficiary developing countries](/usc/19/2467.md?p=1) to develop and implement measures designed to assure that the agricultural sectors of their economies are not directed to export markets to the detriment of the production of foodstuffs for their citizenry.


# §2466a. Designation of sub-Saharan African countries for certain benefits

- (a) **Authority to designate—**
  - (1) **In general—** Notwithstanding any other provision of law, the President is authorized to designate a [country](/usc/19/2467.md?p=2) listed in [section 107](/usc/19/107.md) of the African Growth and Opportunity Act [[19 U.S.C. 3706](/usc/19/3706.md)] as a [beneficiary sub-Saharan African country](#e-1) eligible for the benefits described in [subsection (b)](#b)—
    - (A) if the President determines that the [country](/usc/19/2467.md?p=2) meets the eligibility requirements set forth in section 104 of that Act [[19 U.S.C. 3703](/usc/19/3703.md)], as such requirements are in effect on May 18, 2000; and
    - (B) subject to the authority granted to the President under subsections (a), (d), and (e) of [section 2462 of this title](/usc/19/2462.md), if the [country](/usc/19/2467.md?p=2) otherwise meets the eligibility criteria set forth in [section 2462 of this title](/usc/19/2462.md).
  - (2) **Monitoring and review of certain countries—** The President shall monitor, review, and report to Congress annually on the progress of each [country](/usc/19/2467.md?p=2) listed in [section 107](/usc/19/107.md) of the African Growth and Opportunity Act in meeting the requirements described in [paragraph (1)](#a-1) in order to determine the current or potential eligibility of each [country](/usc/19/2467.md?p=2) to be designated as a [beneficiary sub-Saharan African country](#e-1) for purposes of this section. The President’s determinations, and explanations of such determinations, with specific analysis of the eligibility requirements described in [paragraph (1)(A)](#a-1-A), shall be included in the annual report required by [section 106](/usc/19/106.md) of the African Growth and Opportunity Act [[19 U.S.C. 3705](/usc/19/3705.md)].
  - (3) **Continuing compliance—**
    - (A) **In general—** If the President determines that a [beneficiary sub-Saharan African country](#e-1) is not making continual progress in meeting the requirements described in [paragraph (1)](#a-1), the President shall terminate the designation of that [country](/usc/19/2467.md?p=2) as a [beneficiary sub-Saharan African country](#e-1) for purposes of this section, effective on January 1 of the year following the year in which such determination is made.
    - (B) **Notification—** The President may not terminate the designation of a [country](/usc/19/2467.md?p=2) as a [beneficiary sub-Saharan African country](#e-1) under [subparagraph (A)](#a-3-A) unless, at least 60 days before the termination of such designation, the President notifies Congress and notifies the [country](/usc/19/2467.md?p=2) of the President’s intention to terminate such designation, together with the considerations entering into the decision to terminate such designation.
- (b) **Preferential tariff treatment for certain articles—**
  - (1) **In general—** The President may provide [duty](/usc/19/2481.md?p=1)-free treatment for any article described in [section 2463(b)(1)(B) through (G)](/usc/19/2463.md?p=b-1-B..b-1-G) of this title that is the growth, product, or manufacture of a [beneficiary sub-Saharan African country](#e-1) described in [subsection (a)](#a), if, after receiving the advice of the International Trade Commission in accordance with [section 2463(e) of this title](/usc/19/2463.md?p=e), the President determines that such article is not import-sensitive in the context of imports from [beneficiary sub-Saharan African countries](#e-1).
  - (2) **Rules of origin—** The [duty](/usc/19/2481.md?p=1)-free treatment provided under [paragraph (1)](#b-1) shall apply to any article described in that paragraph that meets the requirements of [section 2463(a)(2) of this title](/usc/19/2463.md?p=a-2), except that—
    - (A) if the cost or value of materials produced in the customs territory of the United States is included with respect to that article, an amount not to exceed 15 percent of the appraised value of the article at the time it is [entered](/usc/19/2467.md?p=3) that is attributed to such United States cost or value may be applied toward determining the percentage referred to in subparagraph (A) of [section 2463(a)(2) of this title](/usc/19/2463.md?p=a-2);
    - (B) the cost or value of the materials included with respect to that article that are produced in one or more [beneficiary sub-Saharan African countries](#e-1) or [former beneficiary sub-Saharan African countries](#e-2) shall be applied in determining such percentage; and
    - (C) the direct costs of processing operations performed in one or more such [beneficiary sub-Saharan African countries](#e-1) or [former beneficiary sub-Saharan African countries](#e-2) shall be applied in determining such percentage.
  - (3) **Rules of origin under this subchapter—** The exceptions set forth in subparagraphs [(A)](#b-2-A), [(B)](#b-2-B), and [(C)](#b-2-C) of paragraph (2) shall also apply to any article described in [section 2463(a)(1) of this title](/usc/19/2463.md?p=a-1) that is the growth, product, or manufacture of a [beneficiary sub-Saharan African country](#e-1) for purposes of any determination to provide [duty](/usc/19/2481.md?p=1)-free treatment with respect to such article.
- (c) **Withdrawal, suspension, or limitation of preferential tariff treatment—**
  - (1) **In general—** The President may withdraw, suspend, or limit the application of [duty](/usc/19/2481.md?p=1)-free treatment provided for any article described in [subsection (b)(1)](#b-1) of this section or section 112 of the African Growth and Opportunity Act [[19 U.S.C. 3721](/usc/19/3721.md)] with respect to a [beneficiary sub-Saharan African country](#e-1) if the President determines that withdrawing, suspending, or limiting such [duty](/usc/19/2481.md?p=1)-free treatment would be more effective in promoting compliance by the [country](/usc/19/2467.md?p=2) with the requirements described in [subsection (a)(1)](#a-1) than terminating the designation of the [country](/usc/19/2467.md?p=2) as a [beneficiary sub-Saharan African country](#e-1) for purposes of this section.
  - (2) **Notification—** The President may not withdraw, suspend, or limit the application of [duty](/usc/19/2481.md?p=1)-free treatment under [paragraph (1)](#c-1) unless, at least 60 days before such withdrawal, suspension, or limitation, the President notifies Congress and notifies the [country](/usc/19/2467.md?p=2) of the President’s intention to withdraw, suspend, or limit such [duty](/usc/19/2481.md?p=1)-free treatment, together with the considerations entering into the decision to terminate such designation.
- (d) **Review and public comments on eligibility requirements—**
  - (1) **In general—** In carrying out [subsection (a)(2)](#a-2), the President shall publish annually in the Federal Register a notice of review and request for public comments on whether [beneficiary sub-Saharan African countries](#e-1) are meeting the eligibility requirements set forth in section 104 of the African Growth and Opportunity Act [[19 U.S.C. 3703](/usc/19/3703.md)] and the eligibility criteria set forth in [section 2462 of this title](/usc/19/2462.md).
  - (2) **Public hearing—** The United States Trade Representative shall, not later than 30 days after the date on which the President publishes the notice of review and request for public comments under [paragraph (1)](#d-1)—
    - (A) hold a public hearing on such review and request for public comments; and
    - (B) publish in the Federal Register, before such hearing is held, notice of—
      - (i) the time and place of such hearing; and
      - (ii) the time and place at which such public comments will be accepted.
  - (3) **Petition process—**
    - (A) **In general—** Not later than 60 days after June 29, 2015, the President shall establish a process to allow any interested person, at any time, to file a petition with the Office of the United States Trade Representative with respect to the compliance of any [country](/usc/19/2467.md?p=2) listed in [section 107](/usc/19/107.md) of the African Growth and Opportunity Act [[19 U.S.C. 3706](/usc/19/3706.md)] with the eligibility requirements set forth in section 104 of such Act [[19 U.S.C. 3703](/usc/19/3703.md)] and the eligibility criteria set forth in [section 2462 of this title](/usc/19/2462.md).
    - (B) **Use of petitions—** The President shall take into account all petitions filed pursuant to [subparagraph (A)](#d-3-A) in making determinations of compliance under subsections [(a)(3)(A)](#a-3-A) and (c) and in preparing any reports required by this subchapter as such reports apply with respect to [beneficiary sub-Saharan African countries](#e-1).
  - (4) **Out-of-cycle reviews—**
    - (A) **In general—** The President may, at any time, initiate an out-of-cycle review of whether a [beneficiary sub-Saharan African country](#e-1) is making continual progress in meeting the requirements described in [paragraph (1)](#d-1). The President shall give due consideration to petitions received under [paragraph (3)](#d-3) in determining whether to initiate an out-of-cycle review under this subparagraph.
    - (B) **Congressional notification—** Before initiating an out-of-cycle review under [subparagraph (A)](#d-4-A), the President shall notify and consult with Congress.
    - (C) **Consequences of review—** If, pursuant to an out-of-cycle review conducted under [subparagraph (A)](#d-4-A), the President determines that a [beneficiary sub-Saharan African country](#e-1) does not meet the requirements set forth in section 104(a) of the African Growth and Opportunity Act ([19 U.S.C. 3703(a)](/usc/19/3703.md)), the President shall, subject to the requirements of subsections [(a)(3)(B)](#a-3-B) and (c)(2), terminate the designation of the [country](/usc/19/2467.md?p=2) as a [beneficiary sub-Saharan African country](#e-1) or withdraw, suspend, or limit the application of [duty](/usc/19/2481.md?p=1)-free treatment with respect to articles from the [country](/usc/19/2467.md?p=2).
    - (D) **Reports—** After each out-of-cycle review conducted under [subparagraph (A)](#d-4-A) with respect to a [country](/usc/19/2467.md?p=2), the President shall submit to the [Committee](/usc/19/2601.md?p=3) on Finance of the Senate and the [Committee](/usc/19/2601.md?p=3) on Ways and Means of the House of Representatives a report on the review and any determination of the President to terminate the designation of the [country](/usc/19/2467.md?p=2) as a [beneficiary sub-Saharan African country](#e-1) or withdraw, suspend, or limit the application of [duty](/usc/19/2481.md?p=1)-free treatment with respect to articles from the [country](/usc/19/2467.md?p=2) under [subparagraph (C)](#d-4-C).
    - (E) **Initiation of out-of-cycle reviews for certain countries—** Recognizing that concerns have been raised about the compliance with section 104(a) of the African Growth and Opportunity Act ([19 U.S.C. 3703(a)](/usc/19/3703.md)) of some [beneficiary sub-Saharan African countries](#e-1), the President shall initiate an out-of-cycle review under [subparagraph (A)](#d-4-A) with respect to South Africa, the most developed of the [beneficiary sub-Saharan African countries](#e-1), and other beneficiary [countries](/usc/19/2467.md?p=2) as appropriate, not later than 30 days after June 29, 2015.
- (e) **Beneficiary sub-Saharan African countries, etc.** For purposes of this subchapter—
  - (1) the terms “beneficiary sub-Saharan African country” and “beneficiary sub-Saharan African countries” mean a [country](/usc/19/2467.md?p=2) or [countries](/usc/19/2467.md?p=2) listed in [section 107](/usc/19/107.md) of the African Growth and Opportunity Act [[19 U.S.C. 3706](/usc/19/3706.md)] that the President has determined is eligible under [subsection (a)](#a) of this section.
  - (2) the term “former beneficiary sub-Saharan African country” means a [country](/usc/19/2467.md?p=2) that, after being designated as a [beneficiary sub-Saharan African country](#e-1) under the African Growth and Opportunity Act [[19 U.S.C. 3701](/usc/19/3701.md) et seq.], ceased to be designated as such a [country](/usc/19/2467.md?p=2) by reason of its entering into a free [trade agreement](/usc/19/2504.md?p=c-4-A) with the United States.

# §2466b. Termination of benefits for sub-Saharan African countries


In the case of a [beneficiary sub-Saharan African country](/usc/19/3721.md?p=f-2), as defined in [section 2466a(c)](/usc/19/2466a.md?p=c)[^1] of this title, [duty](/usc/19/2481.md?p=1)-free treatment provided under this subchapter shall remain in effect through December 31, 2026.


# §2467. Definitions


For purposes of this subchapter:

- (1) **Beneficiary developing country—** The term “beneficiary developing country” means any [country](#2) with respect to which there is in effect an Executive order or Presidential proclamation by the President designating such [country](#2) as a beneficiary developing country for purposes of this subchapter.
- (2) **Country—** The term “country” means any foreign country or territory, including any overseas dependent territory or possession of a foreign country, or the Trust Territory of the Pacific Islands. In the case of an association of countries which is a free trade area or customs union, or which is contributing to comprehensive regional economic integration among its [members](/usc/19/2571.md?p=8) through appropriate means, including, but not limited to, the reduction of [duties](/usc/19/2481.md?p=1), the President may by Executive order or Presidential proclamation provide that all [members](/usc/19/2571.md?p=8) of such association other than [members](/usc/19/2571.md?p=8) which are barred from designation under [section 2462(b) of this title](/usc/19/2462.md?p=b) shall be treated as one country for purposes of this subchapter.
- (3) **Entered—** The term “entered” means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States.
- (4) **Internationally recognized worker rights—** The term “internationally recognized worker rights” includes—
  - (A) the right of association;
  - (B) the right to organize and bargain collectively;
  - (C) a prohibition on the use of any form of forced or compulsory labor;
  - (D) a minimum age for the employment of children, and a prohibition on the [worst forms of child labor](#6), as defined in [paragraph (6)](#6); and
  - (E) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.
- (5) **Least-developed beneficiary developing country—** The term “least-developed beneficiary developing country” means a [beneficiary developing country](#1) that is designated as a least-developed beneficiary developing country under [section 2462(a)(2) of this title](/usc/19/2462.md?p=a-2).
- (6) **Worst forms of child labor—** The term “worst forms of child labor” means—
  - (A) all forms of slavery or practices similar to slavery, such as the sale or trafficking of children, debt bondage and serfdom, or forced or compulsory labor, including forced or compulsory recruitment of children for use in armed conflict;
  - (B) the use, procuring, or offering of a child for prostitution, for the production of pornography or for pornographic purposes;
  - (C) the use, procuring, or offering of a child for illicit activities in particular for the production and trafficking of drugs; and
  - (D) work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety, or morals of children.

  The work referred to in [subparagraph (D)](#6-D) shall be determined by the laws, regulations, or competent authority of the [beneficiary developing country](#1) involved.