                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
              SUBCHAPTER I--NEGOTIATING AND OTHER AUTHORITY
 
                         Part 2--Other Authority
 
Sec. 2133. Compensation authority


(a) New concessions

    Whenever--
        (1) any action taken under part 1 of subchapter II of this 
    chapter or subchapter III of this chapter, or under part 2 of 
    subchapter IV of this chapter; or
        (2) any judicial or administrative tariff reclassification that 
    becomes final after August 23, 1988;

increases or imposes any duty or other import restriction, the 
President--
        (A) may enter into trade agreements with foreign countries or 
    instrumentalities for the purpose of granting new concessions as 
    compensation in order to maintain the general level of reciprocal 
    and mutually advantageous concessions; and
        (B) may proclaim such modification or continuance of any 
    existing duty, or such continuance of existing duty-free or excise 
    treatment, as he determines to be required or appropriate to carry 
    out any such agreement.

(b) Reductions in rates of duty

    (1) No proclamation shall be made pursuant to subsection (a) of this 
section decreasing any rate of duty to a rate which is less than 70 
percent of the existing rate of duty.
    (2) Where the rate of duty in effect at any time is an intermediate 
stage under section 2902(a) of this title, the proclamation made 
pursuant to subsection (a) of this section may provide for the reduction 
of each rate of duty at each such stage proclaimed under such section 
2902(a) of this title by not more than 30 percent of such rate of duty, 
and may provide for a final rate of duty which is not less than 70 
percent of the rate of duty proclaimed as the final stage under such 
section 2902(a) of this title.
    (3) If the President determines that such action will simplify the 
computation of the amount of duty imposed with respect to an article, he 
may exceed the limitations provided by paragraphs (1) and (2) of this 
subsection by not more than the lesser of--
        (A) the difference between such limitation and the next lower 
    whole number, or
        (B) one-half of 1 percent ad valorem.

    (4) Any concessions granted under subsection (a)(1) of this section 
shall be reduced and terminated according to substantially the same time 
schedule for reduction applicable to the relevant action under sections 
2253(e) and 2254 of this title.

(c) Consideration of past violations of trade concessions

    Before entering into any trade agreement under this section with any 
foreign country or instrumentality, the President shall consider whether 
such country or instrumentality has violated trade concessions of 
benefit to the United States and such violation has not been adequately 
offset by the action of the United States or by such country or 
instrumentality.

(d) Basic authority for trade agreements as authority for granting new 
        concessions as compensation

    Notwithstanding the provisions of subsection (a) of this section, 
the authority delegated under section 2902 of this title shall be used 
for the purpose of granting new concessions as compensation within the 
meaning of this section until such authority terminates.

(e) International obligations determination prerequisite to application 
        of authority

    The provisions of this section shall apply by reason of action taken 
under subchapter III of this chapter only if the President determines 
that action authorized under this section is necessary or appropriate to 
meet the international obligations of the United States.

(Pub. L. 93-618, title I, Sec. 123, Jan. 3, 1975, 88 Stat. 1989; Pub. L. 
100-418, title I, Secs. 1104, 1401(b)(1)(A), Aug. 23, 1988, 102 Stat. 
1132, 1239; Pub. L. 106-286, div. A, title I, Sec. 104, Oct. 10, 2000, 
114 Stat. 891.)


                               Amendments

    2000--Subsec. (a)(1). Pub. L. 106-286 inserted ``, or under part 2 
of subchapter IV of this chapter'' after ``subchapter III of this 
chapter''.
    1988--Subsec. (a). Pub. L. 100-418, Sec. 1104(1), amended subsec. 
(a) generally. Prior to amendment, subsec. (a) read as follows: 
``Whenever any action has been taken under section 2253 of this title to 
increase or impose any duty or other import restriction, the President--
        ``(1) may enter into trade agreements with foreign countries or 
    instrumentalities for the purpose of granting new concessions as 
    compensation in order to maintain the general level of reciprocal 
    and mutually advantageous concessions; and
        ``(2) may proclaim such modification or continuance of any 
    existing duty, or such continuance of existing duty-free or excise 
    treatment, as he determines to be required or appropriate to carry 
    out any such agreement.''
    Subsec. (b)(2). Pub. L. 100-418, Sec. 1104(2), substituted ``section 
2902(a)'' for ``section 2119'' and ``such section 2902(a)'' for 
``section 2111'' in two places.
    Subsec. (b)(4). Pub. L. 100-418, Sec. 1401(b)(1)(A), substituted 
``action under sections 2253(e) and 2254 of this title'' for ``import 
relief under section 2253(h) of this title''.
    Subsec. (d). Pub. L. 100-418, Sec. 1104(3), substituted ``section 
2902'' for ``section 2111''.
    Subsec. (e). Pub. L. 100-418, Sec. 1104(4), added subsec. (e).


                    Effective Date of 1988 Amendment

    Amendment by section 1401(b)(1)(A) of Pub. L. 100-418 effective Aug. 
23, 1988, and applicable with respect to investigations initiated under 
part 1 (Sec. 2251 et seq.) of subchapter III of this chapter on or after 
that date, see section 1401(c) of Pub. L. 100-418, set out as a note 
under section 2251 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2114d, 2151, 2152, 2153, 
2154, 2212, 2463, 3356 of this title.
