19 U.S.C. § 3202 — Beneficiary country

(a) Definitions. For this chapter— (1) “Beneficiary country” means a country listed in subsection (b)(1) that the President has designated by proclamation as a beneficiary country for this chapter. (2) “Entered” means entered, or removed from a warehouse for consumption, in the customs territory of the United States. (3) “HTS” means the Harmonized Tariff Schedule of the United States. (b) Countries eligible for designation; congressional notification. (1) When designating beneficiary countries under this chapter, the President may consider only these countries or their successor political entities: Bolivia, Ecuador, Colombia, and Peru. (2) Before designating a country as a beneficiary country, the President must notify the House of Representatives and the Senate that he intends to make the designation. He must also provide the considerations that led to the decision. (c) Limitations on designation. The President may not designate a country as a beneficiary country— (1) if it is a “Communist country.” This section does not define that term; (2) if the country— (A) has nationalized, expropriated, or otherwise taken ownership or control of property owned by a United States citizen or by a corporation, partnership, or association that United States citizens beneficially own at least 50 percent of; (B) has taken steps to repudiate or nullify— (i) an existing contract or agreement with such a citizen, corporation, partnership, or association, or (ii) a patent, trademark, or other intellectual property of such a citizen, corporation, partnership, or association, when United States citizens beneficially own at least 50 percent of the entity, and the effect is to nationalize, expropriate, or otherwise take ownership or control of the property; or (C) has imposed or enforced taxes or other charges, restrictive maintenance or operating conditions, or other measures concerning such property, and the effect is to nationalize, expropriate, or otherwise take ownership or control of it, unless the President determines that— (i) the citizen, corporation, partnership, or association has received, or is receiving, prompt, adequate, and effective compensation; (ii) good-faith negotiations for prompt, adequate, and effective compensation under applicable international law are in progress, or the country is otherwise taking steps to meet its international-law obligations to the citizen, corporation, partnership, or association; or (iii) a dispute with the citizen, corporation, partnership, or association about compensation for the seizure has been submitted to arbitration under the Convention for the Settlement of Investment Disputes or another forum agreed to by both sides, and the country promptly gives the Senate and House of Representatives a copy of that determination; (3) if it does not act in good faith to recognize as binding or enforce arbitration awards in favor of United States citizens or of a corporation, partnership, or association that United States citizens beneficially own at least 50 percent of, when the awards were made by arbitrators appointed for each case or by permanent arbitration bodies to which the parties submitted their dispute; (4) if it gives products from a developed country other than the United States preferential treatment that has, or is likely to have, a significant harmful effect on United States commerce, unless the President— (A) has received assurances satisfactory to him that the preferential treatment will be eliminated or that action will be taken to prevent that significant harmful effect; and (B) reports those assurances to Congress; (5) if a government-owned entity there broadcasts copyrighted material, including films or television material, belonging to United States copyright owners without their express consent, or if the country does not work toward providing adequate and effective protection of intellectual property rights; (6) unless it is a signatory to a treaty, convention, protocol, or other agreement concerning the extradition of United States citizens; or (7) if it has not taken, or is not taking, steps to provide workers in the country, including in any designated zone there, with “internationally recognized worker rights.” This section says those rights are defined in section 2467(4) of this title, but does not define them itself. The limits in paragraphs (1), (2), (3), (5), and (7) do not prevent designation if the President determines that designating the country is in the United States national economic or security interest and reports that determination and his reasons to Congress. (d) Factors affecting designation. In deciding whether to designate a country as a beneficiary country, the President must consider— (1) whether the country has expressed a desire to receive the designation; (2) the country’s economic conditions, the living standards of its people, and any other economic factors he considers appropriate; (3) how much the country has assured the United States that it will provide fair and reasonable access to its markets and basic commodity resources; (4) how closely the country follows the accepted international-trade rules provided in the “WTO Agreement” and the “multilateral trade agreements.” This section does not define those terms; it points to section 3501 of this title for their definitions; (5) how much the country uses export subsidies or imposes export-performance or local-content requirements that distort international trade; (6) how much the country’s trade policies toward other beneficiary countries help revive the region; (7) how much the country is taking self-help measures to protect its own economic development; (8) whether the country has taken, or is taking, steps to provide workers there, including in any designated zone there, with internationally recognized worker rights; (9) how much the country’s law provides foreign nationals with adequate and effective ways to secure, exercise, and enforce exclusive intellectual-property rights, including patent, trademark, and copyright rights; (10) how much the country prevents its nationals from broadcasting copyrighted material, including films or television material, belonging to United States copyright owners without their express consent; (11) whether the country has met the “narcotics cooperation certification criteria” in section 2291(h)(2)(A) of title 22 for eligibility for United States assistance. This section does not define that term; and (12) how prepared the country is to cooperate with the United States in administering this chapter. (e) Withdrawal or suspension of designation. (1)(A) The President may— (i) withdraw or suspend a country’s designation as a beneficiary country; or (ii) withdraw, suspend, or limit this chapter’s duty-free treatment for an article from a country, if, after the designation, he determines that changed circumstances mean the country should be barred from designation as a beneficiary country. (B) After the requirements in paragraph (2) are met, the President may— (i) withdraw or suspend a country’s designation as an “ATPDEA beneficiary country.” This section does not define that term; or (ii) withdraw, suspend, or limit the preferential treatment under section 3203(b)(1), (3), or (4) of this title for an article from a country, if, after the designation, he determines that changed circumstances mean the country’s performance is unsatisfactory under the criteria in section 3203(b)(6)(B) of this title. (2)(A) At least 30 days before taking an action proposed under paragraph (1), the President must publish notice of the proposed action in the Federal Register. (B) During the 30-day period beginning when that notice is published, the United States Trade Representative must— (i) accept written public comments about the proposed action; (ii) hold a public hearing about it; and (iii) publish in the Federal Register— (I) notice of the hearing’s time and place before the hearing; and (II) the time and place where written comments will be accepted. (f) Reporting requirements. (1) In general. By June 30, 2010, and every year after that while this chapter is in effect, the United States Trade Representative must submit a report to Congress about how this chapter is operating. The report must include— (A) for subsections (c) and (d), the results of a general review of beneficiary countries based on the considerations in those subsections; and (B) the performance of each beneficiary country, or each “ATPEA beneficiary country,” as applicable, under the criteria in section 3203(b)(6)(B) of this title. This section does not define “ATPEA beneficiary country.” (2) Public comment. Before submitting that report, the United States Trade Representative must publish a Federal Register notice asking the public to comment on whether beneficiary countries are meeting the criteria listed in section 3203(b)(6)(B) of this title.