U.S. Code > Title 19 Customs Duties > CHAPTER 12—TRADE ACT OF 1974 (§§ 2101—2497b) > SUBCHAPTER I—NEGOTIATING AND OTHER AUTHORITY (§§ 2111—2242) > Part 2—Other Authority (§§ 2131—2138) > § 2133. Compensation authority

§ 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.