Sec. 123. COMPENSATION AUTHORITY
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## SEC. 123 COMPENSATION AUTHORITY ###
(a)Whenever— ####
(1)any action taken under chapter 1 of title II or chapter 1 of title III, or under chapter 2 of title IV of the Trade Act of 19742; or 2Section 104 of Public Law 106–286 (114 Stat. 890) amended this paragraph by inserting after “title III” the following: “, or under chapter 2 of title IV of the Trade Act of 1974”. The inserted text probably should have been “, or under chapter 2 of title IV of this Act”. ####
(2)any judicial or administrative tariff reclassification that becomes final after the date of the enactment of the Omnibus Trade and Competitiveness Act of 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)####
(1)No proclamation shall be made pursuant to subsection
(a)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 1102(a) of the Omnibus Trade and Competitiveness Act of 1988, the proclamation made pursuant to subsection
(a)may provide for the reduction of each rate of duty at each such stage proclaimed under such section 1102(a) 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 1102(a). ####
(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) shall be reduced and terminated according to substantially the same time schedule for reduction applicable to the relevant action under sections 203(e) and 204. ###
(c)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)Notwithstanding the provisions of subsection (a), the authority delegated under section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988 shall be used for the purpose of granting new concessions as compensation within the meaning of this section until such authority terminates. ###
(e)The provisions of this section shall apply by reason of action taken under chapter 1 of title III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States. **[**[19 U.S.C. 2133](/us/usc/t19/s2133)**]**
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U.S. Code
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- Pub. L. 106-286
- 114 Stat. 890
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