                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
              SUBCHAPTER I--NEGOTIATING AND OTHER AUTHORITY
 
                         Part 2--Other Authority
 
Sec. 2132. Balance-of-payments authority


(a) Presidential proclamations of temporary import surcharges and 
        temporary limitations on imports through quotas in situations of 
        fundamental international payments problems

    Whenever fundamental international payments problems require special 
import measures to restrict imports--
        (1) to deal with large and serious United States balance-of-
    payments deficits.
        (2) to prevent an imminent and significant depreciation of the 
    dollar in foreign exchange markets, or
        (3) to cooperate with other countries in correcting an 
    international balance-of-payments disequilibrium,

the President shall proclaim, for a period not exceeding 150 days 
(unless such period is extended by Act of Congress)--
        (A) a temporary import surcharge, not to exceed 15 percent ad 
    valorem, in the form of duties (in addition to those already 
    imposed, if any) on articles imported into the United States;
        (B) temporary limitations through the use of quotas on the 
    importation of articles into the United States; or
        (C) both a temporary import surcharge described in subparagraph 
    (A) and temporary limitations described in subparagraph (B).

The authority delegated under subparagraph (B) (and so much of 
subparagraph (C) as relates to subparagraph (B)) may be exercised (i) 
only if international trade or monetary agreements to which the United 
States is a party permit the imposition of quotas as a balance-of-
payments measure, and (ii) only to the extent that the fundamental 
imbalance cannot be dealt with effectively by a surcharge proclaimed 
pursuant to subparagraph (A) or (C). Any temporary import surcharge 
proclaimed pursuant to subparagraph (A) or (C) shall be treated as a 
regular customs duty.

(b) Import restrictions not imposed when contrary to national interest 
        of United States

    If the President determines that the imposition of import 
restrictions under subsection (a) of this section will be contrary to 
the national interest of the United States, then he may refrain from 
proclaiming such restrictions and he shall--
        (1) immediately inform Congress of his determination, and
        (2) immediately convene the group of congressional official 
    advisers designated under section 2211(a) of this title and consult 
    with them as to the reasons for such determination.

(c) Presidential proclamations liberalizing imports

    Whenever the President determines that fundamental international 
payments problems require special import measures to increase imports--
        (1) to deal with large and persistent United States balance-of-
    trade surpluses, as determined on the basis of the cost-insurance-
    freight value of imports, as reported by the Bureau of the Census, 
    or
        (2) to prevent significant appreciation of the dollar in foreign 
    exchange markets,

the President is authorized to proclaim, for a period of 150 days 
(unless such period is extended by Act of Congress)--
        (A) a temporary reduction (of not more than 5 percent ad 
    valorem) in the rate of duty on any article; and
        (B) a temporary increase in the value or quantity of articles 
    which may be imported under any import restriction, or a temporary 
    suspension of any import restriction.

Import liberalizing actions proclaimed pursuant to this subsection shall 
be of broad and uniform application with respect to product coverage 
except that the President shall not proclaim measures under this 
subsection with respect to those articles where in his judgment such 
action will cause or contribute to material injury to firms or workers 
in any domestic industry, including agriculture, mining, fishing, or 
commerce, or to impairment of the national security, or will otherwise 
be contrary to the national interest.

(d) Nondiscriminatory treatment of import restricting actions

    (1) Import restricting actions proclaimed pursuant to subsection (a) 
of this section shall be applied consistently with the principle of 
nondiscriminatory treatment. In addition, any quota proclaimed pursuant 
to subparagraph (B) of subsection (a) of this section shall be applied 
on a basis which aims at a distribution of trade with the United States 
approaching as closely as possible that which various foreign countries 
might have expected to obtain in the absence of such restrictions.
    (2) Notwithstanding paragraph (1), if the President determines that 
the purposes of this section will best be served by action against one 
or more countries having large or persistent balance-of-payments 
surpluses, he may exempt all other countries from such action.
    (3) After such time when there enters into force for the United 
States new rules regarding the application of surcharges as part of a 
reform of internationally agreed balance-of-payments adjustment 
procedures, the exemption authority contained in paragraph (2) shall be 
applied consistently with such new international rules.
    (4) It is the sense of Congress that the President seek 
modifications in international agreements aimed at allowing the use of 
surcharges in place of quantitative restrictions (and providing rules to 
govern the use of such surcharges) as a balance-of-payments adjustment 
measure within the context of arrangements for an equitable sharing of 
balance-of-payments adjustment responsibility among deficit and surplus 
countries.

(e) Broad and uniform application of import restricting actions

    Import restricting actions proclaimed pursuant to subsection (a) of 
this section shall be of broad and uniform application with respect to 
product coverage except where the President determines, consistently 
with the purposes of this section, that certain articles should not be 
subject to import restricting actions because of the needs of the United 
States economy. Such exceptions shall be limited to the unavailability 
of domestic supply at reasonable prices, the necessary importation of 
raw materials, avoiding serious dislocations in the supply of imported 
goods, and other similar factors. In addition, uniform exceptions may be 
made where import restricting actions will be unnecessary or ineffective 
in carrying out the purposes of this section, such as with respect to 
articles already subject to import restrictions, goods in transit, or 
goods under binding contract. Neither the authorization of import 
restricting actions nor the determination of exceptions with respect to 
product coverage shall be made for the purpose of protecting individual 
domestic industries from import competition.

(f) Quantitative limitations

    Any quantitative limitation proclaimed pursuant to subparagraph (B) 
or (C) of subsection (a) of this section on the quantity or value, or 
both, of an article--
        (1) shall permit the importation of a quantity or value which is 
    not less than the quantity or value of such article imported into 
    the United States from the foreign countries to which such 
    limitation applies during the most recent period which the President 
    determines is representative of imports of such article, and
        (2) shall take into account any increase since the end of such 
    representative period in domestic consumption of such article and 
    like or similar articles of domestic manufacture or production.

(g) Suspension, modification, or termination of proclamations

    The President may at any time, consistent with the provisions of 
this section, suspend, modify, or terminate, in whole or in part, any 
proclamation under this section either during the initial 150-day period 
of effectiveness or as extended by subsequent Act of Congress.

(h) Termination of tariff concessions

    No provision of law authorizing the termination of tariff 
concessions shall be used to impose a surcharge on imports into the 
United States.

(Pub. L. 93-618, title I, Sec. 122, Jan. 3, 1975, 88 Stat. 1987.)

                  Section Referred to in Other Sections

    This section is referred to in section 2137 of this title.
