                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
              SUBCHAPTER I--NEGOTIATING AND OTHER AUTHORITY
 
                         Part 2--Other Authority
 
Sec. 2135. Termination and withdrawal authority


(a) Grant of authority for termination or withdrawal at end of period 
        specified in agreement

    Every trade agreement entered into under this chapter shall be 
subject to termination, in whole or in part, or withdrawal, upon due 
notice, at the end of a period specified in the agreement. Such period 
shall be not more than 3 years from the date on which the agreement 
becomes effective. If the agreement is not terminated or withdrawn from 
at the end of the period so specified, it shall be subject to 
termination or withdrawal thereafter upon not more than 6 months' 
notice.

(b) Authority to terminate proclamations at any time

    The President may at any time terminate, in whole or in part, any 
proclamation made under this chapter.

(c) Increased duties or other import restrictions following withdrawal, 
        suspension, or modification of obligations with respect to trade 
        of foreign countries or instrumentalities

    Whenever the United States, acting in pursuance of any of its rights 
or obligations under any trade agreement entered into pursuant to this 
chapter, section 1821 of this title, or section 1351 of this title, 
withdraws, suspends, or modifies any obligation with respect to the 
trade of any foreign country or instrumentality thereof, the President 
is authorized to proclaim increased duties or other import restrictions, 
to the extent, at such times, and for such periods as he deems necessary 
or appropriate, in order to exercise the rights or fulfill the 
obligations of the United States. No proclamation shall be made under 
this subsection increasing any existing duty to a rate more than 50 
percent above the rate set forth in rate column numbered 2 of the Tariff 
Schedules of the United States, as in effect on January 1, 1975, or 20 
percent ad valorem above the rate existing on January 1, 1975, whichever 
is higher.

(d) Retaliatory authority

    Whenever any foreign country or instrumentality withdraws, suspends, 
or modifies the application of trade agreement obligations of benefit to 
the United States without granting adequate compensation therefor, the 
President, in pursuance of rights granted to the United States under any 
trade agreement and to the extent necessary to protect United States 
economic interests (including United States balance of payments), may--
        (1) withdraw, suspend, or modify the application of 
    substantially equivalent trade agreement obligations of benefit to 
    such foreign country or instrumentality, and
        (2) proclaim under subsection (c) of this section such increased 
    duties or other import restrictions as are appropriate to effect 
    adequate compensation from such foreign country or instrumentality.

(e) Continuation of duties or other import restrictions after 
        termination of or withdrawal from agreements

    Duties or other import restrictions required or appropriate to carry 
out any trade agreement entered into pursuant to this chapter, section 
1821 of this title, or section 1351 of this title shall not be affected 
by any termination, in whole or in part, of such agreement or by the 
withdrawal of the United States from such agreement and shall remain in 
effect after the date of such termination or withdrawal for 1 year, 
unless the President by proclamation provides that such rates shall be 
restored to the level at which they would be but for the agreement. 
Within 60 days after the date of any such termination or withdrawal, the 
President shall transmit to the Congress his recommendations as to the 
appropriate rates of duty for all articles which were affected by the 
termination or withdrawal or would have been so affected but for the 
preceding sentence.

(f) Public hearings

    Before taking any action pursuant to subsection (b), (c), or (d) of 
this section, the President shall provide for a public hearing during 
the course of which interested persons shall be given a reasonable 
opportunity to be present, to produce evidence, and to be heard, unless 
he determines that such prior hearings will be contrary to the national 
interest because of the need for expeditious action, in which case he 
shall provide for a public hearing promptly after such action.

(Pub. L. 93-618, title I, Sec. 125, Jan. 3, 1975, 88 Stat. 1991.)

                       References in Text

    This chapter, referred to in subsecs. (b), (c), (e), was in the 
original ``this Act'', meaning Pub. L. 93-618, Jan. 3, 1975, 88 Stat. 
1978, as amended, which is classified principally to this chapter. For 
complete classification of this Act to the Code, see References in Text 
note set out under section 2101 of this title and Tables.
    The Tariff Schedules of the United States, referred to in subsec. 
(c), to be treated as a reference to the Harmonized Tariff Schedule 
pursuant to section 3012 of this title. The Harmonized Tariff Schedule 
is not set out in the Code. See Publication of Harmonized Tariff 
Schedule note set out under section 1202 of this title.


 Authority To Increase Duties on Imports of Certain Tobacco and Tobacco 
                                Products

    Pub. L. 103-465, title IV, Sec. 421, Dec. 8, 1994, 108 Stat. 4964, 
provided that:
    ``(a) In General.--In the application of section 125(c) of the Trade 
Act of 1974 (19 U.S.C. 2135) with respect to any item provided for in 
subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 2401.30.60, 
2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of the HTS, `350' 
shall be substituted for `20' where it appears in such section.
    ``(b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act [Dec. 8, 1994].''


          Tariff Reductions Under Trade Agreements Act of 1979

    Pub. L. 96-39, title V, Sec. 502(b), July 26, 1979, 93 Stat. 251, 
provided that: ``For purposes of section 125 (19 U.S.C. 2135) of the 
Trade Act of 1974 the amendments made under sections 508, 511, 512, and 
513 [amending items 135.41, 135.42, 750.26, 750.27, 750.28, 870.45, 
905.10, and 905.11 of the Tariff Schedules of the United States. See 
Publication of Tariff Schedules note under section 1202 of this title] 
not including the rates of duty appearing in rate column numbered 2, if 
any, shall be considered to be trade agreement obligations entered into 
under the Trade Act of 1974 [this chapter], of benefit to foreign 
countries or instrumentalities.''
    Pub. L. 96-39, title VI, Sec. 601(b), July 26, 1979, 93 Stat. 268, 
provided that: ``For purposes of section 125 of the Trade Act of 1974 
[this section], the amendments made under subsection (a), if any 
[amending the Tariff Schedules of the United States with regard to civil 
aircraft (see Publication of Tariff Schedules note under section 1202), 
and, amending section 1466 of this title], shall be considered to be 
trade agreement obligations entered into under the Trade Act of 1974 
[this chapter] of benefit to foreign countries or instrumentalities.''
    Rates of duty proclaimed under section 855(a) of Pub. L. 96-39 
(covering spirits, spiritous beverages, and beverage preparations) to be 
deemed, for purposes of this section, a trade agreement obligation which 
is of benefit to a foreign country or instrumentality, and, in the case 
of any item affected by such a proclamation, the last sentence of 
subsec. (c) of this section to be applied as if it authorized (in 
addition to any increase authorized therein) an increase up to the rate 
of duty for such item set forth in rate column numbered 1 of subpart D 
of part 12 of schedule 1 of the Tariff Schedules of the United States 
(see Publication of Tariff Schedules note under section 1202 of this 
title) as amended by section 852 of Pub. L. 96-39, see section 855(b) of 
Pub. L. 96-39.


          Review of International Trade in Alcoholic Beverages

    Pub. L. 96-39, title VIII, Sec. 854, July 26, 1979, 93 Stat. 294, 
provided that:
    ``(a) Review.--The President shall review foreign tariff and 
nontariff barriers affecting United States exports of alcoholic 
beverages. Not later than January 1, 1982, the President shall report to 
the Congress the results of his review.
    ``(b) Withdrawal of Concessions.--If, as the result of his review 
under subsection (a), the President determines that a foreign country or 
instrumentality has not implemented concessions to the United States 
affecting alcoholic beverages which were negotiated in trade agreements 
entered into before January 3, 1980, under the authority of title I of 
the Trade Act of 1974 [this subchapter], the President shall withdraw, 
suspend, or modify the application of substantially equivalent trade 
agreement obligations of benefit to such foreign country or 
instrumentality under section 125 of the Trade Act of 1974 (19 U.S.C. 
2135).
    ``(c) Further Negotiations To Remove Barriers.--If, as the result of 
his review under subsection (a), the President determines that foreign 
tariff or nontariff barriers are unduly burdening or restricting the 
United States exports of alcoholic beverages, he shall enter into 
negotiations under the Trade Act of 1974 [this chapter] to eliminate or 
reduce such barriers.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2581, 2904, 3003, 3105 of 
this title.
