                        TITLE 19--CUSTOMS DUTIES
 
                   CHAPTER 20--ANDEAN TRADE PREFERENCE
 
Sec. 3202. Beneficiary country


(a) Definitions

    For purposes of this chapter--
        (1) The term ``beneficiary country'' means any country listed in 
    subsection (b)(1) of this section with respect to which there is in 
    effect a proclamation by the President designating such country as a 
    beneficiary country for purposes of this chapter.
        (2) The term ``entered'' means entered, or withdrawn from 
    warehouse for consumption, in the customs territory of the United 
    States.
        (3) The term ``HTS'' means Harmonized Tariff Schedule of the 
    United States.

(b) Countries eligible for designation; congressional notification

    (1) In designating countries as beneficiary countries under this 
chapter, the President shall consider only the following countries or 
successor political entities:
        Bolivia
        Ecuador
        Colombia
        Peru.

    (2) Before the President designates any country as a beneficiary 
country for purposes of this chapter, he shall notify the House of 
Representatives and the Senate of his intention to make such 
designation, together with the considerations entering into such 
decision.

(c) Limitations on designation

    The President shall not designate any country a beneficiary country 
under this chapter--
        (1) if such country is a Communist country;
        (2) if such country--
            (A) has nationalized, expropriated or otherwise seized 
        ownership or control of property 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,
            (B) has taken steps to repudiate or nullify--
                (i) any existing contract or agreement with, or
                (ii) any patent, trademark, or other intellectual 
            property of,

        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 
        so owned, or
            (C) has imposed or enforced taxes or other exactions, 
        restrictive maintenance or operational conditions, or other 
        measures with respect to property so owned, the effect of which 
        is to nationalize, expropriate, or otherwise seize ownership or 
        control of such property, unless the President determines that--
                (i) prompt, adequate, and effective compensation has 
            been or is being made to such citizen, corporation, 
            partnership, or association,
                (ii) good-faith negotiations to provide prompt, 
            adequate, and effective compensation under the applicable 
            provisions of international law are in progress, or such 
            country 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

        promptly furnishes a copy of such determination to the Senate 
        and House of Representatives;

        (3) if such country 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;
        (4) if such country affords preferential treatment to the 
    products of a developed country, other than the United States, and 
    if such preferential treatment has, or is likely to have, a 
    significant adverse effect on United States commerce, unless the 
    President--
            (A) has received assurances satisfactory to him that such 
        preferential treatment will be eliminated or that action will be 
        taken to assure that there will be no such significant adverse 
        effect, and
            (B) reports those assurances to the Congress;

        (5) if a government-owned entity in such country engages in the 
    broadcast of copyrighted material, including films or television 
    material, belonging to United States copyright owners without their 
    express consent or such country fails to work towards the provision 
    of adequate and effective protection of intellectual property 
    rights;
        (6) unless such country is a signatory to a treaty, convention, 
    protocol, or other agreement regarding the extradition of United 
    States citizens; and
        (7) if such country has not or is not taking steps to afford 
    internationally recognized worker rights (as defined in section 
    2467(4) of this title) to workers in the country (including any 
    designated zone in that country).

Paragraphs (1), (2), (3), (5), and (7) shall not prevent the designation 
of any country as a beneficiary country under this chapter if the 
President determines that such designation will be in the national 
economic or security interest of the United States and reports such 
determination to the Congress with his reasons therefor.

(d) Factors affecting designation

    In determining whether to designate any country a beneficiary 
country under this chapter, the President shall take into account--
        (1) an expression by such country of its desire to be so 
    designated;
        (2) the economic conditions in such country, the living 
    standards of its inhabitants, and any other economic factors which 
    he deems appropriate;
        (3) the extent to which such country has assured the United 
    States it will provide equitable and reasonable access to the 
    markets and basic commodity resources of such country;
        (4) the degree to which such country follows the accepted rules 
    of international trade provided for under the WTO Agreement and the 
    multilateral trade agreements (as such terms are defined in 
    paragraphs (9) and (4), respectively, of section 3501 of this 
    title);
        (5) the degree to which such country uses export subsidies or 
    imposes export performance requirements or local content 
    requirements which distort international trade;
        (6) the degree to which the trade policies of such country as 
    they relate to other beneficiary countries are contributing to the 
    revitalization of the region;
        (7) the degree to which such country is undertaking self-help 
    measures to protect its own economic development;
        (8) whether or not such country has taken or is taking steps to 
    afford to workers in that country (including any designated zone in 
    that country) internationally recognized worker rights;
        (9) the extent to which such country provides under its law 
    adequate and effective means for foreign nationals to secure, 
    exercise, and enforce exclusive rights in intellectual property, 
    including patent, trademark, and copyright rights;
        (10) the extent to which such country prohibits its nationals 
    from engaging in the broadcast of copyrighted material, including 
    films or television material, belonging to United States copyright 
    owners without their express consent;
        (11) whether such country has met the narcotics cooperation 
    certification criteria set forth in section 2291(h)(2)(A) \1\ of 
    title 22 for eligibility for United States assistance; and
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    \1\ See References in Text note below.
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        (12) the extent to which such country is prepared to cooperate 
    with the United States in the administration of the provisions of 
    this chapter.

(e) Withdrawal or suspension of designation

    (1) The President may--
        (A) withdraw or suspend the designation of any country as a 
    beneficiary country, or
        (B) withdraw, suspend, or limit the application of duty-free 
    treatment under this chapter to any article of any country,

if, after such designation, the President determines that as a result of 
changed circumstances such a country should be barred from designation 
as a beneficiary country.
    (2)(A) The President shall publish in the Federal Register notice of 
the action the President proposes to take under paragraph (1) at least 
30 days before taking such action.
    (B) The United States Trade Representative shall, within the 30-day 
period beginning on the date on which the President publishes under 
subparagraph (A) notice of proposed action--
        (i) accept written comments from the public regarding such 
    proposed action,
        (ii) hold a public hearing on such proposed action, and
        (iii) publish in the Federal Register--
            (I) notice of the time and place of such hearing prior to 
        the hearing, and
            (II) the time and place at which such written comments will 
        be accepted.

(f) Report

    Not later than January 31, 2001, the President shall submit to the 
Congress a complete report regarding the operation of this chapter, 
including the results of a general review of beneficiary countries based 
on the considerations described in subsections (c) and (d) of this 
section. In reporting on the considerations described in subsection 
(d)(11) of this section, the President shall report any evidence that 
the crop eradication and crop substitution efforts of the beneficiary 
are directly related to the effects of this chapter.

(Pub. L. 102-182, title II, Sec. 203, Dec. 4, 1991, 105 Stat. 1236; Pub. 
L. 103-465, title VI, Sec. 621(a)(3), Dec. 8, 1994, 108 Stat. 4992; Pub. 
L. 104-188, title I, Sec. 1954(a)(2), Aug. 20, 1996, 110 Stat. 1927; 
Pub. L. 106-200, title II, Sec. 211(c)(2), May 18, 2000, 114 Stat. 287.)

                       References in Text

    The Harmonized Tariff Schedule of the United States, referred to in 
subsec. (a)(3), is not set out in the Code. See Publication of 
Harmonized Tariff Schedule note set out under section 1202 of this 
title.
    Subsec. (h) of section 2291 of title 22, referred to in subsec. 
(d)(11), was repealed by Pub. L. 102-583, Sec. 6(b)(2), Nov. 2, 1992, 
106 Stat. 4932. For successor provisions to former subsec. (h), see 
sections 2291j and 2291k of Title 22, Foreign Relations and Intercourse.
    This chapter, referred to in subsec. (d)(12), was in the original 
``this Act'' and was translated as reading ``this title'', meaning title 
II of Pub. L. 102-182 which enacted this chapter, to reflect the 
probable intent of Congress.


                               Amendments

    2000--Subsec. (f). Pub. L. 106-200 substituted ``Report'' for 
``Triennial report'' in heading and ``Not later than January 31, 2001'' 
for ``On or before the 3rd, 6th, and 9th anniversaries of December 4, 
1991'' in text.
    1996--Subsec. (c)(7). Pub. L. 104-188 substituted ``2467(4) of this 
title'' for ``2462(a)(4) of this title''.
    1994--Subsec. (d)(4). Pub. L. 103-465 substituted ``WTO Agreement 
and the multilateral trade agreements (as such terms are defined in 
paragraphs (9) and (4), respectively, of section 3501 of this title)'' 
for ``General Agreement on Tariffs and Trade, as well as applicable 
trade agreements approved under section 2503(a) of this title''.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-188 applicable to articles entered on or 
after Oct. 1, 1996, with provisions relating to retroactive application, 
see section 1953 of Pub. L. 104-188, set out as an Effective Date note 
under section 2461 of this title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-465 effective on the date on which the WTO 
Agreement enters into force with respect to the United States [Jan. 1, 
1995], see section 621(b) of Pub. L. 103-465, set out as a note under 
section 1677k of this title.

            Presidential Designation of Beneficiary Countries

    The following countries were designated as beneficiary countries for 
purposes of this chapter:
    Bolivia, Proc. No. 6456, July 2, 1992, 57 F.R. 30097.
    Colombia, Proc. No. 6455, July 2, 1992, 57 F.R. 30069.
    Peru, Proc. No. 6585, Aug. 11, 1993, 58 F.R. 43239.

                  Section Referred to in Other Sections

    This section is referred to in section 2411 of this title.
